Proposed Public Procurement Amendment Bill and B-BBEE Policy Status

Posted 31 October 2025 Written by Acts Online
Category Legal & Regulatory

Brought to you by SA Legal Academy: A notice in the Government Gazette has announced the imminent tabling of a Public Procurement Amendment Bill, which seeks to fundamentally alter the application of the Broad-Based Black Economic Empowerment Act, No. 53 of 2003, in state contracting.

In terms of the Broad-Based Black Economic Empowerment Act, No. 53 of 2003, and the constitutional framework for economic transformation, the South African government has issued a statement reaffirming the current legislative status of B-BBEE. This follows a Government Gazette notice regarding a private member’s Bill, the Public Procurement Amendment Bill, which proposes to:

  • Abolish race-based procurement criteria currently mandated under the B-BBEE framework; and
  • Implement a “needs-based” procurement model designed to target the most vulnerable members of society regardless of race.

The acting government spokesperson, Sandile Nene, and deputy William Baloyi, clarified that the B-BBEE Act, No. 53 of 2003, remains the primary mechanism for addressing the historical exclusion of the majority of South Africans from the mainstream economy. The government maintains that B-BBEE is a “constitutional imperative” and that the legislative framework is necessary to ensure sustainable economic growth and social stability.

The Department of Trade, Industry and Competition (DTIC) continues to monitor compliance with the B-BBEE legislative framework. While the Public Procurement Amendment Bill has been proposed for tabling in Parliament, it must still be considered by the relevant National Assembly committee to determine its desirability before any formal legislative processing begins.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; however, legal and compliance professionals should monitor the Parliamentary Monitoring Group (PMG) for the formal introduction of the Bill to advise on potential shifts in procurement law.
  • For your business: Your firm must continue to maintain its B-BBEE verification and compliance status under the B-BBEE Act, No. 53 of 2003, as the proposed Bill has no legal effect until it is passed by Parliament and signed into law.
  • For your clients: Clients engaged in public sector tenders must continue to adhere to the current preferential procurement regulations and B-BBEE scorecard requirements, as the existing regulatory framework remains fully enforceable.

Originally published at https://legalacademy.co.za/news/read/in-the-spotlight-broad-based-black-economic-empowerment

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