OPINION | The Role of Municipal Procurement in Advancing or Stalling Climate Resilience

As climate change impacts intensify globally, South Africa’s municipalities face unique challenges in building climate resilience. From water scarcity and extreme temperatures to increasingly frequent floods and fires, municipalities must respond to immediate climate threats and plan for long-term adaptation. However, one critical factor often determines the effectiveness of these efforts: municipal procurement. How municipalities source goods and services can either advance or hinder their abilities to build climate-resilient communities.

The importance of procurement in climate resilience is underscored by recent research conducted by KD Strategies in partnership with INSPIRE and Democracy Works Foundation. The study, focusing on South Africa’s Witzenberg and Karoo Hoogland municipalities, highlights how procurement practices can be a powerful tool for achieving climate goals or, conversely, a severe stumbling block that limits progress. The research draws on consultations with municipal officials, private sector stakeholders, and community organizations to identify the opportunities and challenges within municipal procurement systems in fostering climate resilience. I argue that procurement reform is urgently needed to empower municipalities to lead in climate adaptation and mitigation. Municipalities can pave the way for a more resilient and sustainable future by prioritizing sustainable, climate-smart procurement.

The Power and Potential of Municipal Procurement

Section 217 of the Constitution mandates that all contracting by organs of state, including municipalities, but be fair, equitable, transparent, competitive, and cost-effective.  Municipal procurement—the process by which local governments purchase goods and services—is one of the most powerful levers available to municipalities for advancing climate resilience at the community level. Municipalities are responsible for acquiring the materials, technologies, and expertise needed to provide essential services, such as water management, energy, sanitation, transportation, and infrastructure. In so doing, they significantly influence their jurisdictions’ products, services, and practices.

Municipalities can promote climate resilience through procurement by prioritizing suppliers offering environmentally sustainable solutions. For instance, by choosing to invest in energy-efficient technologies, sustainable building materials, and water-saving infrastructure, municipalities can reduce their carbon footprints, conserve natural resources, and mitigate the impacts of extreme weather. Procurement decisions also have a ripple effect on local economies. Municipalities can incentivize businesses to adopt greener practices by choosing suppliers prioritizing sustainable practices, contributing to broader community resilience.

In Witzenberg and Karoo Hoogland, procurement decisions have far-reaching implications. These regions are highly vulnerable to climate risks threatening local ecosystems and economic livelihoods, particularly agriculture. For example, investing in sustainable water management systems could help mitigate drought impacts, protect local agriculture, and ensure water security for residents. Similarly, prioritizing climate-smart infrastructure—such as flood-resistant roads and buildings—can reduce damage from extreme weather events, safeguarding public assets and community well-being.

The Challenges and Limitations of Current Procurement Systems

Despite its potential, municipal procurement often falls short of advancing climate resilience. One major reason is the rigid structure of procurement policies, which prioritize cost minimization over sustainability. In South Africa, procurement regulations are generally designed to achieve economic efficiency and transparency, ensuring that taxpayer funds are spent prudently and fairly. While these principles are essential, they can inadvertently limit municipalities’ abilities to invest in climate-resilient solutions. Sustainable materials and technologies may be more expensive upfront, creating a barrier for municipalities that operate on tight budgets and are mandated to select the lowest-cost suppliers.

Moreover, procurement processes can be complex, bureaucratic, and time-consuming. Municipalities must navigate a web of regulations, approvals, and reporting requirements, which can discourage innovation and limit flexibility. For example, when a municipality wants to invest in a new, sustainable technology for water conservation, it may encounter delays in obtaining the necessary approvals or meeting stringent procurement criteria. In Witzenberg and Karoo Hoogland, officials report that procurement processes are often so cumbersome that they become a barrier to implementing even straightforward climate resilience measures.

Another issue is the lack of climate-related criteria in standard procurement policies. Environmental sustainability is often not a required criterion in municipal procurement. As a result, suppliers who prioritize sustainable practices are not rewarded for their efforts, and climate-smart solutions are not incentivized. This gap means municipalities miss opportunities to make procurement decisions aligned with climate resilience goals. For instance, if road construction contracts do not include provisions for climate resilience, such as using permeable paving materials to reduce flood risk, municipalities are essentially reinforcing infrastructure ill-suited to withstand climate impacts.

Rethinking Procurement for Climate Resilience

Empowering municipalities to be proactive agents of climate resilience means that procurement policies need to evolve. A reformed approach to municipal procurement would recognize sustainability as a fundamental criterion, alongside cost and transparency. Such an approach would involve prioritizing suppliers who provide environmentally friendly, climate-adaptive goods and services, even if these come at a slightly higher initial cost. While the financial investment may be more significant upfront, the long-term benefits—in terms of reduced environmental impact, improved resilience, and cost savings on maintenance and repairs—far outweigh the initial expenses.

As highlighted by the research, one potential solution is the development of “green procurement” frameworks at the municipal level. Green procurement refers to purchasing products and services with minimal environmental impact throughout their life cycles. Municipalities can explicitly favour suppliers who use sustainable materials, prioritize energy efficiency, reduce waste, and adopt other climate-smart practices by adopting a green procurement framework. For instance, when sourcing materials for infrastructure projects, a green procurement policy could require that materials be sustainably sourced, durable, and resilient to extreme weather.

Another reform that could improve procurement for climate resilience is integrating “lifecycle costing” into procurement assessments. Traditional procurement practices evaluate bids based on upfront costs, overlooking long-term operational and maintenance expenses. Lifecycle costing, by contrast, considers the total cost of ownership over the asset’s lifespan, including maintenance, repair, and replacement costs. By accounting for these factors, municipalities can make more informed choices that balance initial costs with long-term benefits. For example, investing in higher-quality, durable materials for road construction may cost more initially but could save money over time by reducing the need for frequent repairs due to flood damage.

Encouraging Innovation and Flexibility in Procurement

In addition to incorporating sustainability criteria, procurement processes should be reformed to allow for greater innovation and flexibility. Currently, procurement regulations in South Africa tend to be highly prescriptive, with limited room for municipalities to test new solutions or adopt emerging technologies. To build climate resilience, however, municipalities must be able to experiment with novel approaches and adapt quickly to changing circumstances.

For example, municipalities could adopt performance-based procurement rather than specifying exact products or technologies in procurement tenders. This approach focuses on the desired outcomes of a project—such as water conservation or energy efficiency—without prescribing specific methods to achieve those outcomes. Municipalities can encourage creativity and adapt to evolving climate needs by allowing suppliers to propose innovative solutions. In Witzenberg, for instance, a performance-based approach to water management procurement could invite suppliers to propose a range of conservation technologies, from smart irrigation systems to rainwater harvesting, providing flexibility to find the best fit for local conditions.

Fostering Public-Private Partnerships for Climate-Resilient Procurement

Achieving climate resilience through procurement is a complex challenge that requires collaboration across sectors. Municipalities should actively engage the private sector to implement sustainable procurement policies. Public-private partnerships (PPPs) can offer valuable resources and expertise, allowing municipalities to leverage private companies’ technical knowledge, innovation capacity, and investment capital.

In particular, PPPs can help address the funding gap that often hinders climate-resilient procurement. By working with private sector partners, municipalities can access financing options that enable them to invest in sustainable technologies without shouldering the entire financial burden. For example, a municipality in Karoo Hoogland might partner with a private company to finance and install solar-powered streetlights, reducing energy costs and promoting renewable energy use. Through PPPs, municipalities can also benefit from shared expertise and insights, helping them to adopt best practices and stay informed about the latest advancements in climate-smart technologies.

Overcoming Barriers to Climate-Smart Procurement

While the potential of procurement as a tool for climate resilience is significant, there are still barriers that must be addressed. One such barrier is the lack of technical capacity at the municipal level. Many municipalities lack the knowledge and expertise to evaluate the environmental impact of different products and services, making it challenging to implement green procurement practices. To address this, the national government and development agencies should provide training and support to build procurement officers’ sustainability and climate resilience capacity.

Another barrier is the resistance to change within municipal structures. Changing procurement policies and practices can be a complex and lengthy process, especially when it involves multiple levels of approval and oversight. For procurement reform to succeed, municipal leadership must be committed to climate resilience, which requires technical changes to procurement policies and a cultural shift within municipal governance, where sustainability is seen as integral to development rather than an optional add-on.

The Path Forward: Harnessing Procurement for Climate Resilience

The research conducted in South Africa’s Witzenberg and Karoo Hoogland municipalities emphasizes that municipal procurement reform is essential in building climate-resilient communities in South Africa. By embedding sustainability into procurement practices, municipalities can use their purchasing power to drive local resilience, reduce environmental impact, and foster a more sustainable economy. Reforming procurement is challenging, but the benefits of climate resilience and long-term cost savings are well worth the effort.

Municipalities stand at the forefront of South Africa’s response to climate change, with procurement as one of their most potent tools for action. Municipalities can lead the way in climate adaptation and mitigation by adopting green procurement frameworks, incorporating lifecycle costing, promoting innovation, and forging partnerships with the private sector. As climate impacts continue to intensify, procurement must become a mechanism for economic efficiency and a cornerstone of South Africa’s climate resilience strategy. Through thoughtful, sustainable procurement practices, municipalities can build a resilient, equitable, and prepared future to face the environmental challenges of the 21st century.