The Chartered Institute of Procurement & Supply has released its annual guide on the latest trends in procurement and supply, and the results reveal the importance of trained professionals.
The CIPS Procurement Salary Guide 2022 for Sub-Saharan Africa paints a clear picture of just how valuable procurement and supply professionals have become to organisations in an increasingly volatile and uncertain world.
As the war in Ukraine rages on, inflation has spiked to over 8% in Botswana, energy and fuel costs rise, and new supply chain disruptions overshadow post-pandemic marketplace recovery, so the strategic function of procurement in mitigating the impact of these challenges has become greatly valued, the report indicates.
At the end of 2021, Botswana’s economy had recovered to pre-pandemic levels. From being one of the poorest countries in Africa, it is now an upper-middle income nation.
A big part of this turnaround has been the ability of Botswana’s procurement and supply chain professionals to mitigate global risks.
The way Botswana has managed its diamond reserves has made it stand out from other mineral-rich African nations. By securing business continuity and befitting customers, it remains a relevant player in the global industry.
At the African Mining Indaba in South Africa earlier this year, Botswanan President Mokgweetsi Masisi implored investors to “seriously consider” coming to the country to carry out mining projects.
When a geological mapping project is completed, coverage for exploration will be 90% nationwide. At this point, Botswana’s procurement and supply professionals will be even more valued than they are now.
Dr Sara Bux, Managing Director of the Chartered Institute of Procurement & Supply (CIPS) for Southern Africa, shared that 81% of those surveyed for the 2022 Procurement Salary Guide in the Sub-Saharan regions believe the perception of procurement has improved in the past year, with 79% saying they feel valued within their organisation while being engaged from the time a project starts (77%).
The Salary Guide published by CIPS in partnership with global recruitment and human resources multinational Hays, the report provides valuable insights into trends in the procurement profession based on survey findings of over 7,000 industry role players from around the world.
Notably, in Sub-Saharan Africa the appreciation of procurement and supply chain management professionals’ role is increasingly reflected in their salaries, one of the factors monitoring how much the profession is valued in the country. This year, 49% of respondents received a pay rise in the past 12 months – an increase on last year’s 40% - while 69% received a bonus in the past 12 months.
The average annual salary for all procurement and supply professionals in the region is now $43 703, up from $34,677 in 2021. At the top end of the scale, advanced professionals are earning $82,964 a year.
Despite a challenging economic environment, such buoyancy and resilience in salaries is encouraging and reflects the increasing status and value of the procurement function.
Bux also points out that 82% of respondents feel that directors and heads of departments understand the value procurement brings to their organisation, both at a strategic and talent level.
The positive sentiment in the sector means there has never been a more opportune time for procurement professionals to grow and flourish.
“The light the pandemic has shone on the strategic importance of procurement has also highlighted the skills needed to thrive in the role and drive further value,” Bux says.
“Excellent negotiation skills underpin successful procurement and are rated as key by employees. It is also the skill most in demand from hiring managers. Ensuring your organisation provides training in negotiation skills will not only be important for retaining talent but is also key to tackling the challenges that lie ahead for the profession.”
Procurement professionals are acutely aware of these challenges.
Fifty percent of those surveyed believe managing risk in the supply chain will be crucial, while the same percentage considers budgeting restraints to be a potential hurdle. Managing costs while maintaining quality (45%), recovery from the pandemic (44%), and monitoring suppliers’ sustainability practices (34%) also feature among 2022’s challenges.
In terms of the profession itself, Bux is concerned about the gender pay gap. “Improved salaries are heartening, but the gender pay gap remains – and has indeed widened this year to 7% (from 1% in 2021). There is still much work to be done to eliminate it.”
Other important takeouts from the 2022 CIPS Procurement Salary Guide include:
- 74% of employers request MCIPS (Member of the Chartered Institute of Procurement and Supply) as a preference when recruiting: Sixty percent of employers would give further consideration to candidates with FCIPS (CIPS Fellows).
- 34% of employers have struggled to find the right talent: There is at least an indication of a steadily improving trend, as the proportion has dipped from 36% in 2021 and 38% the year before that.
- 31% believe their work-life balance has improved as a result of Covid-19: This is based largely on 33% in the private sector and 28% in the public sector saying they are happy to work remotely, whether fully or part-time.
- 47% want support for study/career development as a benefit: While 47% of respondents would like support for study/career development, only 23% receive it.
“The end of the year is upon us and we are all looking forward to a well-deserved break. Make 2023 a year of growth by brushing up on essential skills for procurement professionals. View our 2023 Skills Training Calendar and start booking now,” advises Bux.
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