The deadline for the imposition of US tariffs on various SA goods is now just hours away. While the additional cost of products related thereto will ultimately be borne by the people of the US, the potential cost to various industries in SA arising from an inevitable reduction of SA exports will be serious, at least in the short term before alternative markets are established .
However, we already have serious and material self-imposed “tariffs” in SA that cost the SA economy millions of rand annually. The self-imposed “tariffs” I refer to are the costs arising from having to pay middlemen in virtually every supply contract with government departments and state-owned enterprises.
My small business is registered with the Central Supplier Database and every day I receive requests for quotes (RFQs) for products and services totally unrelated to our business. The blatant encouragement for middlemen in these RFQs is epitomised in the note that accompanied an RFQ received this week.
It stated: “This is an open request which does not require you as a service provider to be in the scope/expertise of the product requested. Rather you can find a supplier for the particular product and provide us with a quotation of your company pricing”.
The middlemen clearly provide absolutely no economic value to the product or service. This is just an invitation to increase costs without any benefit to the economy whatsoever, while every one of us bears the brunt.
Derek Pryce
Via email
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