Mashau, Pfano.Icheku, Zine Erica.2023-02-072023-02-0720192019https://researchspace.ukzn.ac.za/handle/10413/21325Masters Degree. University of KwaZulu-Natal, Durban.The implementation of radical economic transformation as initiated by the government of South Africa has been hinged on the fulcrum of supply chain management (SCM) processes particularly procurement processes in state-owned enterprises (SOEs) of which Transnet Port Terminals (TPT) is one. Primarily procurement is concerned with acquisition of goods and services for the running of businesses. As a secondary function, it can be used as a vehicle to transfer skills necessary for economic empowerment from providers of goods and services to local entities. This study drew upon the concept of targeted procurement and two complimentary theories of governance, and enforced cooperation. Targeted Procurement has been used in South Africa mainly to target those segments and groups of the society that were disadvantaged under the apartheid system. It has also been used to support local economic development, to promote growth within the small business sector and to target the unemployed through poverty alleviation programmes. Targeted Procurement also promotes business linkages between large and small scale enterprises. Sanctions are supposed to be applied on contractors who, in the execution of their contracts, failed to deliver their contracted social deliverables. In this way, the government can make use of private sector expertise and knowledge of the markets to develop targeted groups in the most effective way possible. Targeted Procurement is executed within a defined governance framework. Thus, the theory of governance provides a clearer understanding of the context within which it is implemented and the challenges associated with it. Difficulties and challenges become more intense in the pursuit of collective actions when regimes propose more radical and socially inclusive change. These dilemmas can be resolved by bringing some form of authoritative control. This can be done by the enforcement of compliance and cooperation. This is even more critical in situations in which actors may not cooperate where there is lack of effective central control to enforce cooperation on them or where there is no common overriding motive to benefit the welfare of the community. This study is a practitioner research which is an aspect of action research (AR). The primary purpose of the researcher is to improve existing practices and produce information to implement and enhance what is already in place. Qualitative methods were used to examine how procurement can be used as instrument of radical local economic development and transformation using TPT as a case study. A purposive sampling technique was employed by the researcher to select key informants who were involved in TPT procurement, as well as key informants from contractor entities that provide services to TPT and businesses owned by PDIs. Semi-structured personal interviews, focus group discussions, and document review as tools for data collection. Documents such as minutes of meetings, policy documents, contractual documents and agreements enriched the analysis of the processes and content of TPT ESD programmes. Desk research, needs and market analysis by cross-functional teams (CFT), and analysis of monitoring and evaluation of the performances of beneficiaries of ESD initiatives were used. This study found that there are reasonably high levels of knowledge and understanding of radical economic transformation as a concept. There were failings in the contribution of TPT to ET particularly in the areas of local content and localization. However, to a certain extent, TPT has been successful in promoting ET by vigorously developing emerging black owned enterprises to become bigger suppliers to Transnet thus improving the transformation process. There were also challenges that confront TPT in using its procurement process to contribute to the implementation of ET policies. Policy and procedural hiccups were common challenges. For example, PPPFA is not fully applied, tendering templates are complicated for small commodities, and there is apparent lack of will power of the management and employees to pursue transformation, among others. It was also noted that at this stage, TPT cannot really pursue Radical Economic Transformation as it primarily exists as a political concept that has not been translated into policy document or linked to legislation. However, TPT can play a role in pursuit of RET within the current policy and legislative frameworks by deliberate efforts and investments in SMEs, as well as by monitoring ESD subcontracting more vigorously and enforce consequences for non-compliance. Suggestions were made as to how TPT procurement can become more amenable to RET. ESD which is a critical aspect of empowerment can become a veritable instrument for RET. However, ESD in its current form and execution has been bedevilled by the challenges that faced previous ET policies. Nevertheless, ESD can contribute to RET if correctly implemented. Government’s transformation agenda depends on effective implementation of proposed policies in order to achieve desired transformation and serious and effective sanctions against violations and circumventions of RET principles.enRadical economic transformation--Transnet (Firm : South Africa)Transnet Port Terminals (TPT)--Procurement process.Transnet Port Terminals (TPT)--Supply chain management.Targeted procurement--State owned enterprises--South Africa.Transnet Port Terminals (TPT)--Operations--Performances.Thesis