It might be belated, but it’s a bold step nonetheless.
The Gauteng Provincial Government has committed to allocating 30% of its procurement spending to township-based businesses.
In a statement, the provincial government said its departments would have to prioritise purchases of goods and services below the R500, 000 threshold towards the township economy.
Under terms of the preferential procurement initiative, government departments are obliged to identify commodities and projects where township suppliers can participate through subcontracting and joint ventures.
The initiative is part of the Gauteng Township Economy Revitalisation Strategy‚ for which the province has set an annual target of 12% for the financial year (2015-16) in respect of purchases from township enterprises
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