Procurement hurdles: unveiling challenges in the subsidized commuter bus sector of Gauteng, South Africa

Thobeka KT Ngcamphalala and Intaher Marcus Ambe
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Thobeka KT Ngcamphalala: Department of Applied Management, School of Public and Operations, University of South Africa, Tshwane, South Africa
Intaher Marcus Ambe: Department of Business Administration, Jackson State University, United States America

International Journal of Research in Business and Social Science (2147-4478), 2024, vol. 13, issue 1, 416-426

Abstract: In South Africa, like many developing countries, procurement is seen and used as a strategic tool to promote socioeconomic development, including the promotion of competition, among other objectives. The South African commuter bus industry is structured to procure – through competitive tendering – SMMEs within the industry’s mainstream. These contracts are subsidized by the government – their origins date back to the 1940s – to ease the financial burden on black African communities. However, since its establishment, some challenges are hindering the effective procurement of these services, thus affecting the provision of these services. This paper highlights the challenges faced by Gauteng Province in the procurement of subsidised commuter services. The paper employs a mixed-methods research approach, and the research instrument was a face-to-face semi-structured interview questionnaire. Based on the findings of the study, Gauteng commuter bus industry operations are challenged with poor policy implementation, a lack of funds to support the industry’s operational needs, and a deficiency in administrative skills, among other challenges. The paper recommends that the Gauteng government revisit the guiding policies for the establishment of the industry and employ the best procurement practice(s) for this industry, considering the complex nature of South Africa (being influenced by the apartheid era and the government is faced with maintaining a balance between the blacks and the whites among citizens. Key Words:Procurement; challenges; South Africa; commuter bus industry

Date: 2024
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