The impact of inclusive procurement practices on small and medium-sized enterprises operating within the South African mining sector

Abstract

This study explores the impact of inclusive procurement practices on small and medium enterprises (SMEs) within South Africa’s mining sector. Inclusive procurement, defined as the deliberate integration of diverse and marginalised suppliers into supply chains, has emerged as a strategic mechanism for advancing socio-economic development, equity, and sustainability. In the mining industry, procurement policies are central to shaping opportunities for local enterprises and host communities, making this an important area of inquiry. A survey was conducted with SMEs participating in mining supply chains to evaluate their experiences, challenges, and perceived benefits of inclusive procurement initiatives. Quantitative methods, including descriptive statistics and correlation analysis, were applied to examine the relationship between procurement practices and business outcomes such as growth, competitiveness, and community development. Results indicate that inclusive procurement contributes positively to SME empowerment by expanding market access, strengthening capacity, and encouraging innovation. However, significant barriers remain, including limited supplier readiness, compliance burdens, and inconsistent enforcement of policies. The study concludes that inclusive procurement is both a developmental imperative and a strategic enabler for SMEs in the mining sector. It recommends strengthening policy implementation, enhancing supplier development programs, and fostering collaborative partnerships between mining companies, government, and communities. By addressing existing challenges, inclusive procurement can unlock greater opportunities for SMEs, drive sustainable growth, and promote resilience. Collectively, the research highlights the transformative potential of inclusive procurement in advancing equity and socio-economic progress within South Africa’s mining economy