Government aims to implement progressive legislation and policies that seek to address weaknesses in South Africa’s economic framework.
The finance minister, Enoch Godongwana, emphasised this in a speech at the gala dinner of the Black Management Forum.
Examples include localisation and the Preferential Procurement Policy Framework (PPPF) Act designed to provide the incentive for government and businesses to procure from BEE certified suppliers.
Regarding the recent ruling by the Constitutional Court in February this year that certain aspects of the PPPF Act are unlawful, the minister described this as a “set-back”.
He referred to the Draft Preferential Procurement Regulations published for comment in March 2022.
They were drafted in terms of the act.
The act gives effect to section 217(3) of the Constitution by providing a framework for the implementation of the procurement policy contemplated in section 217(2) of the Constitution.
The draft Regulations aim to prescribe the threshold amounts in which the 80/20 and 90/10 preference point systems must be used, together with the formula to be applied.
According to the minister, the Draft PPPF Bill is now with NEDLAC and treasury plans to table the draft bill in parliament in June 2022.
The minister declared that government is “committed to using all levers at our disposal, including legislation, to advance economic transformation”.
The minister also reiterated that government’s medium‐term fiscal policy is “focused on reducing the budget deficit and stabilizing the debt‐to‐GDP ratio”.
“Government is determined to stay the course of fiscal sustainability in order to restore the health of our fiscus and to support growth”, he said.
In another statement, treasury announced that the Bounce Bank Support Scheme for businesses highlighted in the 2022 Budget Speech has come into effect.
The aim of the Bounce Back Support Scheme is to “provide additional funding to qualifying businesses in order to grow the South African economy and to facilitate job creation”.
The Bounce Back Support Scheme consists of a loan guarantee mechanism of R15 billion and a smaller equity linked scheme to be facilitated by treasury and development finance institutions.