Home NewsGovernment to Prioritise Women-Owned Enterprises in R1.5 Trillion Public Procurement

Government to Prioritise Women-Owned Enterprises in R1.5 Trillion Public Procurement

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Government to Prioritise Women-Owned Enterprises in R1.5 Trillion Public Procurement

Government to prioritise

As South Africa assumes the G20 Presidency, the government has committed to prioritising gender equality and economic empowerment, with a particular focus on women-owned businesses. At the closing event of the 16 Days of Activism for No Violence Against Women and Children campaign, held at Ntsimbini Sports Ground in Port St John’s, Eastern Cape, on Tuesday, Minister in the Presidency for Women, Children and Persons with Disabilities, Sindisiwe Chikunga, announced transformative socio-economic interventions aimed at uplifting women.

Chikunga emphasised that economic empowerment cannot be achieved without meaningful access to resources, particularly land and productive assets. She outlined plans to ensure that women gain increased participation in public procurement, stating, “The Minister of Finance recently announced that public procurement makes up around 19% of government spending, totalling R1.5 trillion over the next three years. I have tasked the Women’s Economic Assembly to assemble a team of experts that will dissect Public Procurement and Gender-Responsive Supply Chains to ensure that a minimum of 40% of that R1.5 trillion goes to women-owned businesses.”

Land Access and Agricultural Empowerment

Recognising the foundational role of land in economic activities, the government has prioritised transferring productive land to women. Minister Chikunga announced that over 20 sites in Limpopo, KwaZulu-Natal, and the Eastern Cape have been identified for leasing to women at highly subsidised rates. These sites span six district municipalities and are intended to provide opportunities for women to establish and grow sustainable enterprises.

“We are actively identifying more sites across all nine provinces,” Chikunga said, adding that the government has partnered with the Council for Scientific and Industrial Research (CSIR) to create a value-chain-driven Agricultural Cooperatives Model. This model will leverage the CSIR’s intellectual property and advanced technologies, including precision agriculture, to equip women farmers for market success.

These efforts aim to transition vulnerable women from subsistence living to income-generating activities, fostering economic independence and long-term stability.

Women in Public Procurement

Chikunga highlighted that women-owned businesses require more than just contracts—they need the resources and support structures to deliver on those contracts and build sustainable enterprises. The Women’s Economic Assembly will play a pivotal role in ensuring that government procurement processes are inclusive and gender-responsive.

“This is about breaking systemic barriers and ensuring women are active participants in our economy. Women must receive their fair share of the R1.5 trillion in public procurement over the next three years,” Chikunga said.

To support this, the department is also rethinking financial support structures and incentives to ensure women-owned businesses can meet the demands of large contracts.

Tackling Gender Disparities in STEM

Chikunga also addressed the critical underrepresentation of women in science, technology, engineering, and mathematics (STEM) careers. Currently, women constitute less than a third of the workforce in these fields.

“Confronting the historical and ongoing exclusion of women from STEM will be a priority for the department,” she said.

The department plans to develop tangible programmes and campaigns to challenge societal and cultural beliefs that perpetuate gender stereotypes in science. “Science and humanity suffer when women are excluded from STEM,” Chikunga added.

In addition, the department intends to leverage Artificial Intelligence (AI) and emerging digital technologies to improve opportunities for persons living with disabilities, further demonstrating a commitment to inclusivity and innovation.

Collaborating with G20 Partners

Under South Africa’s G20 Presidency, the government plans to collaborate with international partners to execute catalytic legacy projects that empower women across various sectors. These projects will focus on high-tech industries, agricultural value chains, the oceans economy, logistics, pharmaceutical industries, and creative industries.

Chikunga expressed excitement about the opportunities to work with the G20 Working Group on Women Empowerment to rally global support against gender-based violence and promote gender equity.

Community Reactions

The initiatives announced by Chikunga were met with optimism from women in attendance. Port St John’s resident Thandeka Mlambo welcomed the focus on land access and agricultural support. “Having land and resources to farm commercially will change the lives of many women in our community,” she said.

Similarly, businesswoman Lerato Phiri expressed hope about the public procurement targets. “For years, women have struggled to get a foothold in government contracts. If this plan is implemented effectively, it will open doors for so many of us,” she said.

Challenges and Way Forward

While the interventions have been widely praised, implementing these ambitious plans will require overcoming significant challenges, including systemic barriers to women’s participation in the economy and cultural attitudes that perpetuate gender inequality.

The government has pledged to monitor progress closely and engage with stakeholders to address potential obstacles. “This is not just about announcements; it is about measurable action and tangible outcomes,” Chikunga said.

Building an Inclusive Economy

The prioritisation of women-owned enterprises in public procurement is part of a broader strategy to build an inclusive economy that benefits all South Africans. By addressing historical injustices and providing targeted support to women, the government aims to unlock the full potential of the country’s human capital.

Chikunga concluded, “Economic empowerment is not just a goal—it is a necessity. Women must be at the centre of our economic strategies if we are to build a fair and prosperous society.”


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