Procurement must be cost-effective-Shiimi
Empowering local suppliers crucial
The ministry of finance launched the code of good practice on preferences in the Namibian public procurement system.
Preference in awarding tenders will be given to local companies that are most responsive and cost effective.
In addition, in a situation where local companies are competing with international companies for a tender, preference will be given to local suppliers to empowerment them. However, there is a limit in price. “The difference in price should not be more than 10%. You will be wasting taxpayers’ money.”
Finance minister Iipumbu Shiimi made these remarks in an exclusive interview with Market Watch at the launch of code of good practices on preferences in the Namibian public procurement system yesterday.
The public procurement is increasingly recognized as a strategic function that plays a key role in using public funds for sustainable development outcomes and fostering economic growth, job creation, and social welfare.
The government Is one of the largest single buyer of goods and services, often with expenditure estimated at 20 to 30% of the gross domestic product (GDP), he said.
Aim
The code of good practice aims to grant exclusive preferences to local suppliers.
It further aims to grant prices preferences during evaluation to categories of local suppliers such as youth, women, micro small and medium entreprises (MSME), manufacturers, which will receive an additional price preference during evaluation.
“I call upon all Namibians to embrace this policy as an effort to boost the empowerment and developmental policies of the Government. The code should therefore be viewed as an opportunity to empower local businesses who aspire growth and sustainability required for industrial and social advancement of Namibia.”
“I warn that, the code of good practice should not be seen as a window for trials with opportunistic enterprises, therefore public entities should assume high responsibility at all times and ensure that awards are made to legitimate businesses with credentials to guarantee that the public sector and Namibia in general enjoys value for money that it so highly deserves,” Shiimi [email protected]
In addition, in a situation where local companies are competing with international companies for a tender, preference will be given to local suppliers to empowerment them. However, there is a limit in price. “The difference in price should not be more than 10%. You will be wasting taxpayers’ money.”
Finance minister Iipumbu Shiimi made these remarks in an exclusive interview with Market Watch at the launch of code of good practices on preferences in the Namibian public procurement system yesterday.
The public procurement is increasingly recognized as a strategic function that plays a key role in using public funds for sustainable development outcomes and fostering economic growth, job creation, and social welfare.
The government Is one of the largest single buyer of goods and services, often with expenditure estimated at 20 to 30% of the gross domestic product (GDP), he said.
Aim
The code of good practice aims to grant exclusive preferences to local suppliers.
It further aims to grant prices preferences during evaluation to categories of local suppliers such as youth, women, micro small and medium entreprises (MSME), manufacturers, which will receive an additional price preference during evaluation.
“I call upon all Namibians to embrace this policy as an effort to boost the empowerment and developmental policies of the Government. The code should therefore be viewed as an opportunity to empower local businesses who aspire growth and sustainability required for industrial and social advancement of Namibia.”
“I warn that, the code of good practice should not be seen as a window for trials with opportunistic enterprises, therefore public entities should assume high responsibility at all times and ensure that awards are made to legitimate businesses with credentials to guarantee that the public sector and Namibia in general enjoys value for money that it so highly deserves,” Shiimi [email protected]
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