Difference between revisions of "Tenderpreneur (South Africa)"

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|style="font-size:1.1em;"| ‘Tenderpreneur’ is a South African colloquialism for a businessperson who uses political contacts to secure government procurement contracts (called ‘tenders’) often as part of reciprocal exchange of favours or benefits. The term is a portmanteau of ‘tender’ (to provide business services) and ‘entrepreneur’. Today, ‘tenderpreneurs’ are associated with corruption, nepotism and clientelism. This is because the award of many tenders is driven by informal interests and/or political affiliation, rather than the requirements of formal procedure. The informality of ‘tenderpreneurship’ thus resides in these extra-legal social and political relationships.

|style="font-size:1.1em;"| ‘Tenderpreneur’ is a South African colloquialism for a businessperson who uses political contacts to secure government procurement contracts (called ‘tenders’) often as part of reciprocal exchange of favours or benefits. The term is a portmanteau of ‘tender’ (to provide business services) and ‘entrepreneur’. Today, ‘tenderpreneurs’ are associated with corruption, nepotism and clientelism. This is because the award of many tenders is driven by informal interests and/or political affiliation, rather than the requirements of formal procedure. The informality of ‘tenderpreneurship’ thus resides in these extra-legal social and political relationships.

The term ‘tenderpreneur’ first emerged during the rule of President Thabo Mbeki (1999-2008). Initially, the term had an ambivalent meaning, with both positive and negative undertones (Dlamini 2010<ref> Dlamini, Jacob. 2010. ''Native Nostalgia'' . Jacana.

The term ‘tenderpreneur’ first emerged during the rule of President Thabo Mbeki (1999-2008). Initially, the term had an ambivalent meaning, with both positive and negative undertones (Dlamini 2010<ref> Dlamini, Jacob. 2010. ''Native Nostalgia'' . Jacana.

These policies successfully enabled commercial opportunities for black businesses as partners and outright suppliers, who would otherwise struggle to compete within a private sector dominated by established white owned businesses. Key policies to advance this objective include the Preferential Procurement Policy Framework (PPPFA 2000<ref>PPPFA. 2000. Preferential Procurement Policy Framework Act, 2000. ''Government Gazette'' 416 (20854), 03 February 2000; 618, No. 40553, 20 January 2017 http://www.treasury.gov.za/divisions/ocpo/sc/PPPFA/Preferential%20Procurement%20Policy%20Framework%20Act,%202000%20(Act%20No.5%20of%202000).pdf</ref>) and the Black Economic Empowerment (BEE) Act and subsequent Broad-Based Black Economic Empowerment Act (BBBEE 2004<ref>PRECCA. 2004. ''The Prevention and Combatting of Corrupt Activities Act 12 of'' 2004 http://www.justice.gov.za/legislation/acts/2004-012.pdf</ref>).

These policies successfully enabled commercial opportunities for black businesses as partners and outright suppliers, who would otherwise struggle to compete within a private sector dominated by established white owned businesses. Key policies to advance this objective include the Preferential Procurement Policy Framework (PPPFA 2000<ref>PPPFA. 2000. Preferential Procurement Policy Framework Act, 2000. ''Government Gazette'' 416 (20854), 03 February 2000; 618, No. 40553, 20 January 2017 http://www.treasury.gov.za/divisions/ocpo/sc/PPPFA/Preferential%20Procurement%20Policy%20Framework%20Act,%202000%20(Act%20No.5%20of%202000).pdf</ref>) and the Black Economic Empowerment (BEE) Act and subsequent Broad-Based Black Economic Empowerment Act (BBBEE 2004<ref>PRECCA. 2004. ''The Prevention and Combatting of Corrupt Activities Act 12 of'' 2004 http://www.justice.gov.za/legislation/acts/2004-012.pdf</ref>).

On the other hand, tenderpreneurship has a negative connotation associated with corrupt practices. The association was particularly noticeable in respect to state procurement processes whereby tenders to supply goods and services were increasingly awarded to individuals with personal linkages to the ruling political party, the African National Congress (ANC) (Dlamini 2010<ref> Dlamini, Jacob. 2010. ''Native Nostalgia.'' Jacana.</ref>). One of the highest profile early examples was the South African Arms Deal, initiated in 1999, in which bribes were paid to high-ranking politicians, fixers, the ANC, and allied community development projects (Southall 2008<ref> Southall, Roger. 2008. ‘The ANC for sale? Money, morality & business in South Africa’. ''Review of African Political Economy'', 35(116), 281-299.</ref>). Key to this transition is the ANC’s ideology of liberation nationalism that defines the party as the champion of the black oppressed, who constitute the primary part of the South African nation; and its intersection with the access to resources enabled by party dominance at election time (Piper 2015<ref> Piper, Laurence. 2015. ‘From Party-State to Party-Society in South Africa: SANCO and the Informal Politics of Community Representation in ‘Imizamo Yethu’, Hout Bay, Cape Town’, in C. Bénit-Gbaffou (ed). ‘Popular Politics in South African Cities: Unpacking Community Participation’. Pretoria: ''HSRC Press'', pp. 21-41. 978-0-7969-2464-3.</ref>).

On the other hand, tenderpreneurship has a negative connotation associated with corrupt practices. The association was particularly noticeable in respect to state procurement processes whereby tenders to supply goods and services were increasingly awarded to individuals with personal linkages to the ruling political party, the African National Congress (ANC) (Dlamini 2010<ref> Dlamini, Jacob. 2010. ''Native Nostalgia.'' Jacana.</ref>). One of the highest profile early examples was the South African Arms Deal, initiated in 1999, in which bribes were paid to high-ranking politicians, fixers, the ANC, and allied community development projects (Southall 2008<ref> Southall, Roger. 2008. ‘The ANC for sale? Money, morality & business in South Africa’. ''Review of African Political Economy'', 35(116), 281-299.</ref>). Key to this transition is the ANC’s ideology of liberation nationalism that defines the party as the champion of the black oppressed, who constitute the primary part of the South African nation; and its intersection with the access to resources enabled by party dominance at election time (Piper 2015<ref> Piper, Laurence. 2015. ‘From Party-State to Party-Society in South Africa: SANCO and the Informal Politics of Community Representation in ‘Imizamo Yethu’, Hout Bay, Cape Town’, in C. Bénit-Gbaffou (ed). ‘Popular Politics in South African Cities: Unpacking Community Participation’. Pretoria: ''HSRC Press'', pp. 21-41. 978-0-7969-2464-3.</ref>).