The (sustainable) power of the public purse
Public procurement is big business. Globally, governments spend around USD13 trillion on the procurement of goods and services each year. In South Africa, this government expense amounts to almost R1 trillion annually — around 12% of the country’s annual gross domestic product (GDP). According to Prof Geo Quinot of Stellenbosch University’s Department of Public Law, public procurement is the world’s single largest commercial activity: “The state is always the biggest market player.”