Public procurement represents an estimated 15–22% of GDP in many developing economies (World Bank), making it one of government’s most powerful tools for driving economic, social and environmental outcomes. Yet Green Public Procurement (GPP) remains underutilised across much of South Africa’s public sector.
For Paul Vos, Regional Managing Director of CIPS Southern Africa, this represents a significant missed opportunity.
“Public procurement has the power to shape markets and drive change,” says Vos. “The opportunity is not simply to buy greener products, but to use public spending to advance sustainability, industrial development, enterprise growth and economic inclusion.”
Around the world, governments are increasingly using procurement to stimulate demand for cleaner technologies, more efficient resource use and more sustainable business practices.
South Africa is uniquely positioned to benefit from this approach, already using procurement to drive socio-economic development. The opportunity now is to embed sustainability into existing transformation, localisation and supplier development objectives rather than treating it as a separate priority.
Yet progress has been slower than many anticipated.
One of the biggest barriers is that sustainability is still viewed as an additional requirement rather than a core procurement objective. With teams already balancing cost, compliance, localisation, supplier development and B-BBEE objectives, sustainability can feel like yet another demand.
“Too often, sustainability is treated as a separate objective,” says Vos. “The real opportunity is to integrate it with transformation, development and procurement priorities to create greater overall value.”
There are, however, encouraging local examples. Western Cape municipalities and government departments have shown that sustainable procurement can reduce resource consumption, lower costs and improve service delivery.
The lesson is not that sustainability requires an entirely new procurement model, but that it is most effective when embedded within normal procurement planning and decision-making processes.
Cost perceptions remain another significant obstacle.
Greener solutions are often seen as more expensive, particularly when procurement decisions are driven by upfront cost. “Procurement should assess whole-life value, not just purchase price,” says Vos. “Lower operating costs, greater efficiency and broader economic benefits often outweigh higher upfront costs.”
Globally, organisations are increasingly shifting towards lifecycle-based procurement models that prioritise long-term value, performance and sustainability outcomes.
However, implementation remains constrained by a shortage of skills and practical guidance.
Procurement professionals are increasingly expected to balance governance, sustainability, transformation, supplier development and supply chain resilience, making professionalisation more important than ever.
While support for sustainable procurement is growing, many organisations still lack practical implementation guidance. Achieving meaningful outcomes will require stronger skills, clear frameworks and practical tools.
One of the most important challenges will be ensuring that sustainability requirements do not unintentionally exclude smaller suppliers.
“Many emerging businesses may not yet have the resources, reporting capabilities or certifications required to meet more advanced sustainability criteria,” says Vos. “The solution is not to lower standards, but to help suppliers build capability through training, mentorship and enterprise development support.”
This is particularly important given the role that small and medium enterprises play in South Africa’s economy. If sustainability requirements are introduced without sufficient support mechanisms, there is a risk that emerging suppliers could be excluded from opportunities in the growing green economy.
This is where South Africa has a distinct advantage.
Many elements of the B-BBEE framework already support sustainability objectives. Enterprise and Supplier Development programmes can help grow black-owned businesses in sectors such as renewable energy, recycling, sustainable agriculture, water management and green construction.
At the same time, Skills Development initiatives can help build expertise in sustainable procurement, Environmental, Social and Governance (ESG) practices, carbon management and circular economy principles. This not only supports environmental goals but also helps prepare businesses and workers for opportunities emerging within the green economy.
Rather than viewing sustainability and transformation as separate agendas, Vos believes they should be pursued together.
“If South Africa can align Green Public Procurement with transformation and supplier development, procurement could become one of the country’s most powerful drivers of inclusive economic growth,” he says.
The benefits extend far beyond environmental outcomes, from stronger local industries and greener jobs to greater innovation, more resilient supply chains and better long-term value for taxpayers. Green Public Procurement should be seen as a development opportunity, using public spending to advance sustainability, industrialisation, enterprise growth and economic inclusion simultaneously.
“South Africa does not need to choose between sustainability and transformation,” concludes Vos. “The opportunity is to use procurement to advance both and build a more competitive, inclusive and resilient economy.”