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Small businesses to benefit from big tenders at RNM

SOUTHCOAST HERALD / 15 APRIL 2019 - 16.01 / ZIMASA MGWILI

According to municipal manager Max Mbili, this policy is aligned with the preferential procurement policy framework regulation of 2017, meant to give growth opportunities to emerging businesses.

Ray Nkonyeni Municipality (RNM) has introduced a policy that compels companies awarded tenders worth more than R2.5 million to sub-contract to emerging businesses registered on the municipality’s emerging contractors database.

Ray Nkonyeni Municipality mayor Cynthia Mqwebu and municiapl manager Max Mbili

at a press briefing held recently.

According to municipal manager Max Mbili, this policy is aligned with the preferential procurement policy framework regulation of 2017, meant to give growth opportunities to emerging businesses.

Preferential procurement was intended by the government to drive socio-economic transformation‚ including the empowerment of designated groups and small enterprises, through subcontracting.

The regulations stipulate that where feasible‚ organs of state must apply subcontracting conditions to contracts with a high monetary value.

The conditions are that a certain percentage of the value of the contract be subcontracted to designated groups‚ which include majority black-owned small and emerging enterprises‚ which can be run by women‚ youth‚ or the disabled; rural enterprises; military veterans or cooperatives.

Coupled with the above, a call has been made to emerging businesses to register their details on the municipality’s sub-contracting database in order to benefit from the implementation of this policy.

RNM mayor Cynthia Mqwebu said that the implementation of this process will be monitored through a joint task team made up of internal and external stakeholders – including local business forums – to ensure a fair selection.

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LINK : https://southcoastherald.co.za/351180/new-tender-clause-to-benefit-small-businesses-or-small-businesses-to-benefit-from-big-tenders-2/

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