Getting a contract to supply a large entity such as a municipality can sometimes be the opportunity that catapults a small business that is scraping by towards consistent sales. If your business intends to conduct business with a local municipality, there are a few things you need to know first, such as how to register and what to expect.
What Is A Municipal Supplier Database
In South Africa, municipalities follow a strict process for finding suppliers. This ensures that everybody has an equal opportunity to compete for the same work and that successful suppliers are chosen fairly.
This is a wonderful way for SMEs to generate business and increase their reach, but there are two elements that you need to understand. First is the central supplier database, and the second is the municipal supplier database.
Central Supplier Database
The central supplier database (CSD) is mandatory to register for, regardless of where you are geographically located. All businesses must first ensure that they are included in this database before approaching municipalities for work. The CSD is South Africa’s centralised platform where all arms of government find suppliers – including municipalities and their various departments.
Municipal Supplier Database
The framework that established the CSD has largely replaced municipal supplier databases. This means that very few municipalities rely on a separate database, and all require small businesses to be a part of the CSD, regardless of whether or not they have an additional step to apply locally.
When you want to apply for a tender or provide any kind of service or product to your municipality, confirm whether or not there is a separate database to apply to. As an example, the municipality of City of Matlosana (Klerksdorp) requires you to present proof of registration on the CSD when registering on their database.
Remember, registering with the CSD does not guarantee automatic work. You still need to submit applications for tenders or any additional documentation asked for when calling for specific suppliers.
Who Can Register as a Supplier?
Any business can apply to be a supplier, and there is no limit on what industry you need to belong to. Just by scrolling through the list of open tenders on the municipal website, you can see that the sky really is the limit. For services such as cleaning, environmental management and marketing, to products such as office equipment, maintenance equipment or furniture.
Tenders relate to the various arms of the municipality and their involvement. It can include any project they are involved with or responsible for, like an orphanage or road works.
Register on the Central Supplier Database
The self-registration process is quite lengthy, but the steps are clear and easy to follow. Head over to the Central Supplier Database Website and follow the following steps:
Step 1: Create a CSD User Account
Click on the button that reads Register’’ and proceed to fill in the information requested for a user account, such as your personal information and the security questions. You will receive an activation email with a link. Activate the account by clicking on the link in the e-mail and requesting an OTP.
Step 2: Log in and Complete Information
Next, you will log into your activated account. You will be prompted to fill in information such as your personal information, contact details and your business information. This includes your tax information, ownership structure and details, and bank account information.
Step 3: Submit Your Supplier Information
Additional information that you will need to submit relates to being a supplier, such as your commodity information, relevant industry accreditation, and B-BBEE certificate. You will also need to confirm if you belong to specific associations.
Step 4: Obtain your CSD Supplier Number
Once you submit your information, you will be notified if your registration is successful. A successful registration results in a supplier number and a 36-digit Unique Registration Reference Number.
From here, you can then access any report on your account, and various government entities can search for suppliers and find you.
What Documentation Do You Need?
All of the business information you need to submit to be a supplier is information that you should already have if you are a compliant business. However, to ensure you have the right information at hand, here is a list of documents that you will need:
- Company registration details,
- Owner, director or member information,
- Contact details and business address,
- Tax information,
- Banking information, where required.
- B-BBEE information, where required.
- Relevant industry certificates or accreditations.
If you are applying to a specific municipal supplier database, additional documentation may include
- Company profile,
- CSD confirmation and report,
- Bank confirmation letter,
- Tax certificates,
- Proof of municipal account.
Register on a Municipality’s Supplier Database
Setting your sights on a specific municipality is both a strong strategy and a necessity when a business is required to be within a certain geographical area to be considered for specific procurement projects.
Research the municipalities that you can logically supply; this would include the district your business is located in, as well as some neighbouring municipalities. If you are located in Limpopo, for instance, you won’t target a municipality in KwaZulu-Natal.
Look for Supply Chain Management, Procurement, Tenders or Supplier Registration. It is a good idea to have a specific tender in mind when you are applying for the supplier database so you have clarity about what to do next once your application is successful. Should there not be an open request for quotation (RFQ) that matches the services or products you can provide, then it is still a good idea to proactively apply.
Visit the municipality website and find the information about registering on the supplier database. This will indicate whether or not the municipality has its own supplier database.
What Happens After Applying to the Municipal Supplier Database?
After successfully registering on the central supplier database and the municipal supplier databases, if applicable, you still need to look at the tenders yourself and submit your applications.
Monitoring municipal procurement opportunities doesn’t happen on its own. It is a manual process you have to identify and submit for.
You can find out more about how to ensure you are compliant with tender requirements in our article Tender Compliance Checklist Every SME Needs.
You will also need to regularly update your information and ensure that you are still listed accurately as a supplier across the various databases.
