The effect of privatisation of State- Owned Entities on public procurement practices in South Africa

Abstract

This research project employed a desktop study methodology to investigate the effect of privatisation of State-Owned Enterprises (SOEs) on public procurement (PP) practices. As the global economic landscape continues to evolve, privatisation of SOEs has gained attention as a strategy for governments seeking to enhance efficiency and stimulate economic growth. However, the potential difficulties of privatisation on PP practices are multifaceted, which warrants a thorough examination which this study employed. Through a review of existing literature, reports, policies, and case studies, this research explained the relationship between SOEs, privatisation and PP. The study analysed key indicators such as changes in competition levels, transparency, cost-effectiveness, and innovation in procurement processes following the privatisation of SOEs. Additionally, the research explores the role of regulatory frameworks and institutional activities that shape the outcomes of PP objectives post-privatisation. By synthesising data gathered from diverse sources through document analysis, the study offers an understanding of the impact of SOE privatisation on PP practices. The findings are intended to inform policymakers, public administrators, and academics about the potential challenges and opportunities associated with privatisation in the context of procurement. Furthermore, this research seeks to identify best practices and lessons learned, providing valuable insights for SOEs, and entities contemplating or undergoing privatisation. SOEs need to focus on improving PP processes and promoting responsible and effective governance by strengthening accountability mechanisms. Although there are some challenges, the impact of privatisation on procurement practices is evident and the alignment with market dynamics brings about increased competition and innovation. To increase best practice, there needs to be efforts of collaboration. The findings in this study are not uniform across all entities, emphasising the importance of further studies