Proposal on Enhancing Youth Participation in Public Procurement

Introduction

Youth-owned enterprises continue to face significant barriers to entry in public procurement despite high levels of unemployment and the strategic importance of youth entrepreneurship to
South Africa's economic development. The current procurement framework often disadvantages youth-owned businesses due to stringent experience requirements and limited recognition of youth ownership within preferential procurement scoring systems.

Proposed Regulatory Amendments

1. Preferential Scoring for Youth-Owned Enterprises. The Public Procurement Regulations should introduce a dedicated preference point allocation
for youth-owned enterprises, similar to existing measures that promote participation by women-owned businesses and other designated groups. For the purposes of procurement, a youth-owned enterprise should be defined as a business
that is at least 51% owned and controlled by individuals between the ages of 18 and 40 years.
2. Exemption from Previous Work Experience Requirements. Youth-owned enterprises should be exempted from mandatory previous contract experience
requirements for selected categories of tenders, particularly those below a prescribed threshold. Instead, contracting authorities should assess:
● The qualifications and competencies of directors and key personnel.
● Professional certifications and technical capabilities.
● Financial viability and operational readiness.

This approach recognises that many youth entrepreneurs possess the necessary skills and qualifications but are excluded from opportunities due to a lack of historical contract
performance.
3. Youth Employment Requirements
All businesses awarded public procurement contracts above a prescribed value should be required to ensure that at least 40% of employees engaged on the contract are youth between
the ages of 18 and 40 years.
This requirement would:
● Promote youth employment.
● Develop workplace skills and experience.
● Ensure that public expenditure contributes directly to reducing youth unemployment.
4. Economic Impact
These measures would:
● Increase youth participation in the economy.
● Expand the number of youth-owned enterprises competing for public contracts.
● Reduce barriers to market entry.
● Stimulate job creation among young people.
● Support inclusive economic growth and transformation.

Conclusion
Public procurement is one of the most powerful tools available to government to drive economic transformation. By introducing preference points for youth-owned enterprises, reducing experience-related barriers, and requiring meaningful youth employment outcomes, the procurement system can become a catalyst for youth empowerment, entrepreneurship, and
sustainable economic development


By Ofentse Mabaso