News Column

DPE Continues Focus on Localisation

July 17, 2014

The Department of Public Enterprises (DPE) will continue to focus on increasing localisation in the country's build programme, Minister Lynne Brown said on Wednesday.

Delivering the DPE Budget Vote Speech before the National Assembly, the minister said the department, which is the sole shareholder in eight state owned companies (SEOs), will continue to focus on growing local content in the build programme through its Competitive Supplier Development Programme (CSDP).

The build programme is South Africa's plan of building additional power stations and major power lines on a massive scale to meet rising electricity demand.

The DPE's CSDP, which was launched in 2007, ensures that key SEOs systematically plan and execute their procurement programmes to stimulate investment in plant, skills and technology, as well as the development of new capabilities in new suppliers to promote growth and industrialisation of the economy.

The proposed budget for the 2014/15 fiscal year is R259.8 million, with the two outer medium term expenditure framework (MTEF) years being R279.3 million and R285.6 million respectively.

Minister Brown said 547 contracts, worth R5.6 billion, were awarded as part of Eskom's capital expansion programme. Of this, R3.1 billion was committed to local content.

In the 2013/14 financial year, Transnet achieved 92% of local content procurement as a percentage of total spend against an annual target of 70%. Additionally, Transnet's B-BBEE spend amounted to 94% of total measurable procurement spend against a 70% target.

In the same reporting period, the companies collectively committed to enrol 2 764 new artisan trainees, in line with the National Skills Accord.

Between 2014/15 and 2018/19, the SEOs that fall within the DPE portfolio will collectively enrol more than 30 000 new learners in various scarce and critical skills occupations.

The DPE is also set to conclude consultations on the remuneration standards for board of directors and executive directors to ensure that their remuneration packages are linked to the achievement of targets contained in the shareholder compacts.

Minister Brown will also finalise the Shareholder Management Bill, which will embed the shareholder management practices that have been developed by the DPE over time.

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Source: AllAfrica

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