As municipal departments grow more dependent on external suppliers,  it is  important that they develop a clear strategy for how these externally provided resources are selected, acquired and managed.

Even where services are currently provided in-house, a range of goods, works and services are procured externally in order to support service provision.
The intention is to map out the way forward to reform and continuously improve the procurement function across the municipality, whilst reflecting the core values and corporate objectives of each.

The procurement process is bound and guided by various pieces of legislation such as:


SupplyChainManagementPolicy2018.pdfSupply Chain Management Policy 2018

The Municipal Finance Management Act (MFMA) (No. 56 of 2003)

The Municipal Supply Chain Management Regulations (May 2005)

The National Small Business Amendment Act (No. 26 of 2003)

The Preferential Procurement Policy Framework (PPPFA) (No. 5 of 2000)

The Preferential Procurement Policy Framework Regulations (10 August 2001)


and regulations such as the Municipal Supply Chain Management Regulations, and the Preferential Procurement Policy Regulations.

The eThekwini Municipality has drawn from legislation and regulations to develop its procurement policies which include the following:

targeted procurement policy

This policy gives effect to the Preferential Procurement Policy Framework Act and its regulations. It describes the preference points system used in the evaluation of tenders and quotations.

SCM Policy

This policy is a requirement of the Municipal Finance Management Act and Municipal Supply Chain Management Regulations. The policy outlines the Supply Chain Management process within the eThekwini Municipality and sets the various thresholds for the procurement of goods, services and works. It is should be read with the Targeted Procurement Policy mentioned above.

Standard of Procedures

These are the procedures that ensure that the Supply Chain Management and Targeted Procurement Policies are effectively implemented in all Units and Departments of the Municipality.

Code of Conduct

These describe the manner in which the various role-players in the procurement cycle must conduct themselves.

Additional information such as guides and circulars are available on the National Treasury website  

The Supply Chain Management:  A Guide for Accounting Officers of Municipalities and Municipal Entities (October 2005)-Additional information is especially useful for local authorities and has been taken from the National Treasury website.