National Treasury’s new procurement rules for conferencing have raised concerns in South Africa’s business events sector about the potential impact on competition for government business.
The instruction note, which took effect on September 14, permits government entities to procure conference venues and related services directly from other organs of state, bypassing the standard competitive bidding process typically required under public procurement rules.
South African Association for the Conference Industry (SAACI) CEO Glenton de Kock has acknowledged government’s need to safeguard public funds. The association “recognises government’s responsibility to ensure prudent use of public funds and notes the governance measures built into the instruction,” he said.
“At this stage, our focus is on understanding how the instruction will be applied in practice and what impact, if any, it may have on the broader business events sector.”
SAACI will “engage constructively with the relevant stakeholders” to clarify the criteria involved and protect recognition of the private conference and events industry’s role in jobs, tourism and economic growth, he added.
FEDHASA raised stronger concerns about the potential implications for competition. CEO Gustav Pieterse warned that stepping back from competitive processes carries risk, regardless of the efficiency rationale behind it. “While the intention may be to improve procurement efficiency, any move away from competitive processes must be carefully considered as transparency, accountability and public confidence are fundamental to economic growth and investment.”
South Africa’s core challenge isn’t a shortage of policy but weak execution of policies that already exist, said Pieterse. He warned that swapping one policy for another won’t fix that underlying problem. “The correct recovery approach will demonstrate what is possible when capable leadership, sound governance and effective delivery come together.”
Pieterse also flagged a contradiction in government’s own messaging: hospitality and tourism are routinely held up as key engines of jobs and growth yet this instruction, in his view, “appears to undermine those very objectives”. He pointed to the scale of private investment in the sector – “billions of rand” in accommodation, conferencing and event infrastructure supporting jobs across tourism, transport, food and beverage and events – arguing that fair competition remains essential to protecting that value.
