A new global report from the Chartered Institute of Procurement & Supply (CIPS), the global professional body for procurement and supply with a presence in over 180 countries, has revealed a fundamental shift in how organisations manage procurement, with significant implications for South Africa.
Supported by global procurement and supply chain solutions provider GEP, the Global State of Procurement & Supply 2026 report draws on insights from 555 senior professionals (40% across Africa) responsible for an estimated $32 billion (R524 billion) in organisational spend.
Its findings point to a clear transition: procurement is no longer primarily a cost-control function, but a strategic driver of risk management, resilience and long-term value creation.
At the same time, the report highlights a growing disconnect between insight and execution. While procurement leaders are gaining influence, with 33% now reporting directly to CEOs or managing directors, up from just 15%, that influence is not yet translating consistently into action.
For South Africa, that gap is even more pronounced.
“South Africa reflects many of the global patterns highlighted in the report, but often in a more concentrated and immediate way,” says Paul Vos, Regional Managing Director of CIPS Southern Africa. “Globally, procurement is operating in an environment of heightened risk and volatility; in South Africa, those conditions are part of the day-to-day operating reality.”
Globally, the report identifies new technology (47%), risk management (47%) and negotiation (42%) as the most critical skills procurement professionals need to develop.
In Africa, the picture is even clearer: risk management is the top priority for 54% of respondents.
This reflects a fundamental shift, from cost control to capability.
“The most critical gaps mirror, but intensify, the global findings,” Vos says. “Risk management stands out as the single biggest gap. Beyond that, we see shortages in strategic influence, data-driven decision-making and change leadership.”
The report shows procurement professionals are operating in a state of “permanent hypervigilance,” responding to ongoing disruption and volatility.
In South Africa, this is not a temporary condition; it is structural.
“Risk in South Africa is multi-layered and highly practical,” Vos explains. “On any given day, it can include energy disruptions, infrastructure constraints, supplier fragility, logistics bottlenecks, currency volatility and regulatory pressure. These risks rarely appear in isolation.”
Despite improved visibility of supply chain risks, the report highlights a persistent global challenge: organisations struggle to convert insight into action.
According to Vos, this “execution gap” is one of South Africa’s most significant weaknesses.
“In many organisations, decisions still move through fragmented systems, siloed structures and misaligned incentives,” he says. “Procurement may clearly see the risk, but without authority, alignment or executive sponsorship, that insight stalls.”
The report shows procurement is increasingly embedded in leadership structures, with only 25% of functions now reporting into finance, down sharply from previous years.
However, this shift remains uneven in South Africa.
“There is progress, particularly among larger corporates and multinationals,” says Vos. “But many organisations still view procurement as a compliance or cost-cutting function, rather than a strategic partner. The difference comes down to capability and credibility.”
CIPS data also points to a growing divide between organisations that invest in procurement capability and those that fall behind.
Globally, 56% of organisations plan to invest in digital technology, 53% in staff development and 48% in AI in the next 12 months.
In South Africa, this divide is increasingly evident.
“Larger organisations are further along in professionalising procurement and investing in capability,” says Vos. “SMEs and parts of the public sector often operate under tighter constraints, with limited access to specialised skills and digital infrastructure.”
The report reinforces procurement’s growing role as a value driver. More than half (52%) of organisations say procurement’s influence is increasing, while 62% view it as delivering a strong return on investment.
For South Africa, the implications extend beyond individual organisations.
“If South Africa gets procurement right, the impact would be significant,” Vos concludes. “It directly supports business continuity, infrastructure delivery, investor confidence and inclusive economic participation. Procurement is not just an organisational capability, it is a national economic lever.”