adminThe financial impact of ineffective procurement in Africa, calculated as value leakage, is estimated at a ‘‘staggering’’ $31,5 billion for the continent and $24.9bn for sub-Saharan Africa, a recent report by professional services firm KPMG has revealed. KPMG associate director and regional country leader for supply chain and procurement practices Dinesh Kumar said in a Polity report that inefficient procurement practices posed a significant threat, as companies appeared still to be focused on traditional cost-optimisation initiatives, rather than value-add. Kumar suggested that procurement organisations in Africa were struggling with basic issues on the delivery front, such as the low use of technology, inadequate skills and non-compliance.
‘‘These issues are more evident in the public sector, though they still exist to different degrees in the private sector,’’ he noted. — KPMG Report.
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