New Code Directs CPBN, Public Entities to Source From Local Namibian Suppliers in Regions, First ….. as a way to enhance economic inclusivity across all regions

By:Fransina Nghidengwa, Justicia Shipena
The recently launched Code of Good Practices on Preferences in the Namibian Public Procurement System aims to stimulate economic activities throughout the country,through reservation ofcertain procurement of goods, works and services t from local (Namibian) suppliers who have met the nationality requirements in section 71(3) of the Act and the local content requirement as determined in the Code.
The finance minister Ipumbu Shiimi launched the implementation of the Code in Windhoek yesterday.
“As you all aware the public procurement is increasingly recognised as astrategic function that plays a key role in using public funds for sustainable development outcomes and fostering economic growth, job creation, and social welfare, the Government as one of the largest single buyer of goods and services in our country, often with expenditure estimated at 20 – 30%of the GDP, thus it is our duty to promote, facilitate and strengthen measures,such as the ‘Code of Good Practice’ to implement the empowerment and industrialization policies of the Government,” minister Ipumbu explained.
He said preferences are special interventions aimed at empowering certain targeted categories of Namibian suppliers with a view to enhancing their participation in the mainstream economy and also to achieve specific objectives such as economic inclusivity and creation of employment.
“There is evidence that socio-economic benefits from preferences far exceed the cost arising from restricted competition,” he expanded.
The minister highlighted that the Code of Good Practice allows for preferential treatment for the procurement of raw meat of cloven-hoofed animals north of the veterinary cordon fence.
“This code directs public entities to procure meat and meat products from the northern cordon fence. So if you are a public entity, like a hospital in the north of the cordon fence, you are directed to buy meat from them before you buy it from the rest of the country.”
He added this preferential treatment particularly gives effect to Resolution No. 10 of the Land Conference of 2018, which resolved that there should be special arrangements for the northern communal farmers’ produce through the public procurement system.
According to Shiimi, the code aims to grant exclusive preferences to local suppliers in the amended Public Procurement Act through the reservation of certain procurement of goods, works and services.
The Code is said to further grant price preferences during evaluation to categories of local suppliers such as youth, women, and MSMEs manufacturers who will receive an additional price preference during evaluation.
Although preferences are an exception to the competitive supply principle in that public entities do not exclusively buy from the cheapest bidder, they have to be applied equitably without compromising the transparency and value-for-money principles, the finance minister said.
“Preferences are special interventions aimed at empowering certain targeted categories of Namibian suppliers to enhance their participation in the mainstream economy.”
He said the preferences will be applied by the Central Procurement Board and public entities to the procurement of certain goods, works, and services.
“For procurements that are subject to national preference, a margin of up to 10% price preference will be given to suppliers meeting the nationality requirements and the qualification criteria specified under the code, for different procurements,” he explained.
He noted that a margin of up to 10% price preference will be given to the targeted categories of local suppliers specified in the code in respect of the nature of procurements.
He emphasized that by granting the two forms of preferences, Namibian suppliers will be given a competitive advantage that will help build their capacity and greatly enhance their ability to compete against multinational corporations.
He concluded that government must make deliberate efforts such as the granting of preferential treatment in the public procurement system to create opportunities for the youth and other targeted categories of Namibian suppliers through the issuance of the Code of Good Practice on Preferences.