Of the R1.26 trillion of national income, the South African public sector tendering system accounts for 80% (R800 billion). It is therefore imperative for financial services providers (FSPs) to thoroughly understand the public tendering system as a fiscal tool of allocating resources. After all, finance and business services account for 19% of the country’s GDP.
The recent amendments to the Preferential Procurement Policy Framework Act (PPPFA) of 2017 have significant implications for historically disadvantaged institutions like Small and Medium Enterprises (SMEs) including FSPs. In pursuit of financial and economic inclusion, big institutions are required to subcontract smaller businesses.
The demand for FSP services within the public sector are typified by their incorporation under the various categories on the e-tender portal as follows:
- Activities auxiliary to financial service and insurance activities
- Financial and insurance activities
- Financial service activities, except insurance and pension funding
- Insurance, reinsurance and pension funding, except compulsory social security
The scope of financial services ranges from provision of long term financial advisory services; private equity services; liquidity management solutions; actuarial and financial modelling; structured product solutions (funding); insurance broking services; risk advisory services; tariffs and pricing methodologies; to revenue plans etc.
This programme seeks to empower FSPs with the skills to leverage public tendering opportunities to create diversified income streams for sustainability. It is designed for both the big financial institutions which are required to subcontract and the smaller FSPs who constitute the target market of subcontracting. By providing hands-on skills on navigating tender opportunities in the South African financial sector, the programme is designed for all financial institutions.
 As reported in the Q2-2019