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ESPPRA ADVOCATES FOR SPP TO DRIVE ECONOMIC GROWTH

By Sithembile Hlatshwayo | 2025-01-08

THE landscape of public procurement is changing across the globe, and Eswatini is making strides to remain at the forefront of this transformation.

The Eswatini Public Procurement Regulatory Agency (ESPPRA) is exploring an ambitious initiative to integrate Sustainable Public Procurement (SPP) into national policies, emphasising its critical importance for the country's development and economic sustainability.

Understanding Sustainable Public Procurement
Sustainable Public Procurement refers to a procurement process that considers not just the financial cost of goods and services, but also their environmental and social impacts.

The focus is on ensuring that public spending contributes positively to sustainable development goals, which include fostering economic growth while protecting the environment and promoting social equity.

According to the Ministry of Finance Communications Officer, Setsabile Dlamini, the essence of SPP is to rethink how procurement is conducted in the public sector. It is about making choices that will not only benefit us today but also safeguard resources and ensure a better quality of life for future generations.

Dlamini highlighted the following as the summarised current baseline and potential going forward for SPP in Eswatini.

A Catalyst for
Economic Growth
One of the core advantages of embracing SPP is its potential to serve as a catalyst for economic growth. Eswatini, like many developing nations, faces challenges in creating sustainable economic opportunities. By adopting SPP principles, the government can stimulate the local economy and foster job creation.

Supporting Local Businesses
ESPPRA's initiative aims to encourage procuring entities to prioritise local suppliers in procurement processes, facilitating a supportive environment for Eswatini's businesses.

Reforms to support this is provided for in the recently rolled out Standard Tendering Documents (STDs). By enhancing local content, the government can revitalise the local economy, reduce dependency on imports, and encourage the development of small and medium-sized enterprises (SMEs).

Currently, Eswatini-based companies account for approximately 94 per cent of service providers, which were awarded government tenders in 2023 – 2024. The agency hopes to ensure that this is not accidental but a concerted effort that is sustained into the future.

"Supporting local suppliers means that we are investing in our own communities. This creates jobs, stimulates entrepreneurship and fosters an environment, where our grassroots economy can flourish," said Dlamini. This localised approach not only enhances the economic landscape but also strengthens the social fabric and community resilience.

Dlamini went on to highlight that SMMEs are usually intermediaries in the supply chain.
They are not necessarily producers of goods. Reducing dependency on imports will need the involvement of large-scale enterprises/manufacturers (or even multinational companies/corporations).

The agency has conducted an assessment to find out what proportion of public procurement funds are spent within the country.

The next process will be to determine which goods/services procured through public procurement are currently produced in the country. The trend has been that local companies get tenders and buy goods from other countries which means the monetary resources are not circulating within the Eswatini economy.

Innovation and Competitiveness
Another crucial aspect of SPP is that it encourages innovation among local businesses.

When local firms have the opportunity to engage in public procurement, they are motivated to improve their products, practices and services to meet government standards.

This competitiveness can lead to higher quality services and products in the market.
ESPPRA highlights that innovative solutions should not be restricted to technological advances but must also consider sustainable alternatives that are better for the environment. For instance, promoting the procurement of eco-friendly materials can drive local innovation towards more sustainable practices.

Environmental Stewardship
With climate change posing an increasing threat to sustainable development worldwide, integrating environmental considerations into the procurement process is essential.

ESPPRA believes that sustainable public procurement can significantly mitigate environmental degradation while promoting green practices. This is an area of growth for the Agency where it will need to work with other stakeholders as a partner to ensure there is capacity building as well as enforcement in the area of environmental stewardship.

Reducing Carbon Footprint
By focusing on environmentally friendly procurement, the government can significantly reduce its carbon footprint. This can include preferences for renewable resources, energy-efficient products, and waste-reducing materials.

This poses another area of growth for the agency, which will require working with other stakeholders.

"The decisions we make today regarding what we buy and how we buy it will have lasting impacts on our environment. If we integrate sustainability into our procurement processes, we can set an example for both the public and private sectors," she emphasised.

Promoting Circular Economy
Furthermore, ESPPRA has articulated the need for promoting a circular economy through public procurement.

This involves procuring goods that are designed for longevity, recyclability, and minimal waste. By fostering a culture of reusing and recycling, the public sector can reduce landfill usage and pollution, contributing to the sustainability of Eswatini’s natural resources.

Social Equity and Community Development
Sustainable public procurement also plays a vital role in promoting social equity and community development.

By considering social factors in procurement decisions, the government and the procuring entities can work towards a more inclusive and fair society.

Currently, one of the things the Agency does is ensuring that the Labour Compliance Certificate is among the statutory documents required and submitted by suppliers when they submit their tender documents.

Suppliers who are not compliant with the social equity safeguards are disqualified from participating in public procurement.

This is one of the areas where the agency still needs to work extra hard and will be working with the ministry of finance on the public procurement legislation review.

The agency will also be working with stakeholders such as the Citizenship Economic Empowerment Council to ensure this is achieved.

Fair Labour Practices
ESPPRA is working to ensure that suppliers in public procurement engage in fair labour practices.
This involves scrutinising supplier policies on wages, worker rights, and working conditions.

By prioritising suppliers that adhere to ethical labour standards, the public procurement process can help uplift marginalised communities.

"We have a responsibility to ensure that public funds are used to support responsible businesses that treat their workers fairly and with dignity. This not only leads to better living conditions for workers but also builds healthier communities," stated Dlamini.

Empowering Women and Minorities
Moreover, SPP has the potential to empower women and minority groups within the economy.

The agency advocates for gender-sensitive procurement policies that prioritise the participation of women-owned and minority-owned businesses in public contracts. Currently there is no data of procuring entities that are practising this initiative.

"This initiative holds a dual purpose; we not only seek to promote economic development, but also to create opportunities for those demographics that have historically been marginalised," Dlamini added.

Challenges Ahead
Despite the many benefits of Sustainable Public Procurement, implementing these strategies in Eswatini will not be without challenges.

The ESPPRA recognises several barriers, including lack of a national sustainable public procurement policy, lack of legislation supporting the implementation of SPP, limited awareness among government officials and procurement officers, lack of capacity building and existing bureaucratic processes that may hinder the adoption of SPP practices.

Capacity Building
To address these challenges, ESPPRA is actively pursuing training and capacity-building initiatives aimed at educating government officials, procurement practitioners, suppliers and the general public on SPP principles. By enhancing the knowledge base and skillset related to sustainable practices, the agency aims to create a more robust infrastructure for SPP implementation.

Stakeholder Engagement
Additionally, fostering collaboration among all stakeholders, including government departments, private sector actors and civil society organizations, is crucial.

ESPPRA is committed to creating a platform for dialogue, knowledge sharing, and partnership building in the quest for sustainable public procurement.

Current platforms are the social media pages where ESPPRA tries to educate and respond to queries raised pertaining to topical issues. In addition, the agency conducts face-to-face capacity building initiatives for procuring entities. Mediums such as the newspapers and radio are also used by the agency to reach out to its stakeholders.

A Path Forward
As Eswatini continues to navigate economic development challenges, the role of sustainable public procurement cannot be overstated. With every public procurement decision, the country has the opportunity to create lasting impacts that align with its vision for inclusive and sustainable growth.

Through the tireless efforts of ESPPRA, there is a renewed sense of optimism about the future of public procurement in Eswatini.

By embedding sustainability into procurement policies, the country can drive economic growth, build local resilience, protect the environment, and foster social equity.

"As the ministry of finance, through institutions such as the ESPPRA which is an Agency under the Ministry we envision a future where every government and public sector procurement decision contributes to a thriving economy, a healthy environment, and a just society.

It is a bold vision, but one that we are fully committed to realizing," concluded Dlamini.
Eswatini stands at a crossroads, and with Sustainable Public Procurement as a guiding principle, the nation can pave the way for a development model that is not only prosperous but also sustainable and equitable for generations to come.

It can be noted from the above article that not much has been done by the country on SPP, however the good thing is that one of the things that this article has achieved is to highlight the baseline where the country stands currently on SPP reforms.

We will be happy to have this discussion in a year’s time as an evaluation of progress made.
For more information on ESPPRA and its initiatives, visit www.esppra.co.sz

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