DA Calls for Comment on the Proposed Social Impact Bill

Issued by Dean Macpherson MP – DA Shadow Minister of Trade, Industry and Competition
21 Apr 2022 in News

The DA has published a ‘Notice of Intention to Introduce and Invitation for Comment’ on our Preferential Procurement Policy Framework Amendment Act also known as the ‘Social Impact Bill’ in the Government Gazette.

This Bill aims to remove the BBBEE consideration from the Preferential Procurement Policy Framework Act (PPPFA), and instead give priority to a tenderer’s competency, and under certain circumstances give preference to companies who have make a positive social impact through their contributions to a variety of Sustainable Development Goals (SDG’s).

South African’s have grown tired of the rich and politically connected abusing the PPPFA to enrich themselves. This has made a mockery of what the Act sought to initially do – address the root causes of inequality of opportunity across South African society.

This SDG model will have several benefits over the current BBBEE model:

  • It will leverage the significant government procurement expenditure of almost a trillion rand, approximately 22% of our GDP, to incentivise a private company’s contributions towards achieving SDGs;
  • The most important factor for government procurement will remain price and functionality as capability to execute and lowest cost will benefit those reliant on government services the most, and in turn lead to the greatest upliftment of society as a whole;
  • Root causes of inequality will be directly addressed without relying on ineffective trickle down redress;
  • The SDG model will target the vulnerable and disadvantaged directly, the majority of whom have been classified as black under Apartheid, and make it more difficult for those who do not require benefits to accrue them. This will also stem rampant corruption and patronage;
  • The SDG model will provide for 17 different goals, which companies focus on based on what they will have the most sectoral impact on;
  • The SDG model is globally recognized, and is increasingly international best practice, whereas existing legislation is highly localised and not internationally accepted;
  • The SDG model may encourage investment in companies with strong SDG awareness and commitments.

The DA encourages the public to submit their comments and views on our proposed Social Impact Bill as legislation@da.org.za. These will then be evaluated, and subsequently our Bill will be submitted to Parliament.

The Social Impact Bill has the potential to transform South African for the better, by directly addressing the root causes of inequality of opportunity in our society.  By focusing on these causes, the PPPFA will be better positioned to create a better future for all South Africans.