The Western Cape Provincial Government (WCPG) has launched an online system that enables provincial buyers to give preference to historically disadvantaged South Africans.
The online Western Cape Supplier Database was built in partnership with South African e-procurement company TradeWorld. Over 4 000 suppliers subscribe to the database.
"I anticipate that the implementation of the database will put all provincial departments in a better position to reach the 40% target of procurement spend on the historically disadvantaged individuals," says Ebrahim Rasool, MEC for finance and economic development.
According to TradeWorld, the WCPG was until recently only able to distinguish between buyers in the high-value, formal tender processes - an area in which emerging businesses have struggled to compete with their larger counterparts.
TradeWorld says the new database supports broad-based empowerment principles by providing opportunities to small black enterprises.
"Buying organisations now have access to a wide base of verified suppliers, including historically disadvantaged individuals and small medium and micro enterprises, and are able to open up their business opportunities to them," says TradeWorld CEO Francois Naud`e.
According to TradeWorld, registration to the database is free, but suppliers are still dependent on the buyer to send their information to them. To guarantee prospective buyers, a monthly fee must be paid to TradeWorld. Monthly subscription costs to the database range from R250 to R600. "The subscriber is paying for the service of being brought to the market," says TradeWorld regional manager Catherine Hills.
She adds that TradeWorld has no say in who gets preference - the company provides the service of bringing together suppliers and buyers as well as providing the tools to allocate preference.
Rasool says the initiative is expected to expand: "We envisage for the next phase to bring on board all district and local municipalities in the province."
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