According to a report by the National Treasury, in the 2021/22 financial year, the Western Cape Government paid 99% of all invoices for goods and services in 30 days, with no invoices older than 30 days still owed to suppliers by the end of the 2021/2022 financial year.
The Western Cape Government is therefore ranked as the best performing province on both metrics and is the only province to not owe any money to suppliers at the end of the financial year in review.
These facts are the result of a firm commitment to support suppliers, many of which are Small, Medium, and Micro Enterprises (SMMEs), by ensuring that services are paid for in a timeous manner because we understand that businesses require a predictable cashflow to run, stay open and to expand.
In comparison, Gauteng had 35% of invoices still outstanding by 30 days, valued at nearly R10 billion. All other provinces had invoices older than 30 days outstanding by the end of the financial year, with the worst performing province being the Eastern Cape, with R3 billion outstanding.
To ensure that invoices are paid as soon as possible, the Provincial Treasury has systems in place to track the payment of invoices, to track late payments, as well as strict monthly reporting processes to report on invoice payments.
In addition to paying service providers on time, the Provincial Treasury launched a new dashboard on its website, to give access to all departmental procurement plans for 2022/23, roughly 4 000 tenders in the current financial year.
This functionality will enhance competition and the likelihood of SMME participation because suppliers are now able to access all opportunities across departments for a particular commodity or service over the entire year.
This then allows businesses to plan for future tender opportunities and will make it easier for businesses – and especially small businesses – to find opportunities and prepare to participate in the procurement process.
A key priority for the Western Cape government is to make it easier to do business, especially for SMMEs, who are the job engines of our economy. We remain committed to playing our part in cutting red tape, by paying invoices on time, and by innovating to enhance participation in the procurement process.