In this video we explain how local government acquires goods and services by way of contracts with private sector suppliers, called public procurement.
Municipalities require a host of goods and services to perform their public functions and most of these are not manufactured or provided by the municipality itself.
Think of everything from office paper, the protective clothes worn by municipal workers and maintenance of roads, to the provision of services such as skills development, information technology and legal services.
Municipalities routinely enter into contracts with private suppliers in the market to obtain these goods and services. This is called public procurement.
Unlike private persons that can just walk into a shop and buy whatever goods they need; the municipality is subject to strict rules when it comes to public procurement.