SUJEET MORAR: How the government can save billions with group purchasing
GPOs could save R15bn in state expenditure, with added benefits such as the growth of supply chains
In January President Cyril Ramaphosa said on local radio: “We do not have the money ... that’s the simple truth that has to be put out there.” SA’s “fiscal crunch” is due to high debt-servicing costs, costly bailouts for state-owned entities and rising public sector wages, which have taken their toll on an economy plagued by stagnant growth and falling tax revenues. The government required additional stimulus in response to the Covid-19 pandemic, resulting in more debt to service.
To overcome the Covid-19 pandemic and spur rapid economic growth and development the SA government set out the Economic Reconstruction & Recovery Plan (ERRP), the priorities of which are developing local infrastructure, creating and supporting jobs, ensuring energy security and deepening local industrialisation within SA...
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