Delivering his State of the Province Address recently, North West Premier Supra Mahumapelo revealed that his administration plans to table the Village, Township, Small Dorpies (VTSD) Preferential Procurement Bill that will essentially force companies to spend the bulk of their budgets sourcing services from VTSD suppliers.
The ambitious plan is in response to President Jacob Zuma’s vision for radical economic transformation.
“More than 20 years since our democracy, black people and Africans in particular still carry the heaviest burden of exclusion from sharing in the wealth generated by our economy despite the fact that many of our people provide the labour that enriches a few minority who control and exclusively enjoy the benefits of the wealth that has been passed-on from generations of colonial racist exploitation,” he said.
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“It is therefore urgent that the state use its legislative and regulatory authority as empowered by the Constitution and relevant legislation, to ensure that the majority of the people in this country who are black and Africans in particular, are not relegated to only be beneficiaries of the social grants.”
The Bill is expected to come into effect at the beginning of the 2017/2018 financial year on 1 April.
Currently the North West government spends around 60% of its budget on VTSD entrepreneurs, made up of 629 villages, 99 townships and 33 small dorpies.
Mahumapelo said the government spent over R1 billion procuring services from VTSD last year and the intention is to increase that amount this year.