Draft General Finance Laws Amendment Bill: Jibar Transition and Procurement Changes

Posted 02 December 2025 Written by Acts Online
Category National Treasury

Brought to you by SA Legal Academy: National Treasury has published the draft General Finance Laws (Official Benchmarks & Procurement) Amendment Bill for public comment, introducing amendments to the regulatory framework governing financial benchmarks and public procurement reporting timelines.

In terms of a notice published in Government Gazette 53873 (Notice 6958) on 19 December 2025, the deadline for public comment on the draft Bill has been extended to 23 January 2026. The draft legislation primarily targets the Financial Sector Regulation Act, No. 9 of 2017 and the Public Procurement Act, No. 28 of 2024.

Financial Sector Regulation and Benchmark Transition

The proposed amendments to the Financial Sector Regulation Act, No. 9 of 2017 seek to enable the South African Reserve Bank (SARB) to manage the transition from the Johannesburg Interbank Average Rate (Jibar) to the South African Rand Overnight Index Average (ZARONIA). According to a SARB media statement issued on 3 December 2025, Jibar will be permanently discontinued immediately after its final publication on 31 December 2026.

The draft Bill aims to provide the SARB with the necessary powers to oversee the cessation of Jibar and the adoption of ZARONIA as the official benchmark for financial contracts. This transition will impact several key markets, including:

  • The loan market;
  • The derivatives market;
  • Bonds and securitised products; and
  • Short-term financial instruments.

Public Procurement Act Amendments

The draft Bill also proposes amendments to the Public Procurement Act, No. 28 of 2024. These changes are intended to extend the statutory periods within which the Minister of Finance is required to review the implementation of the Act and subsequently report findings to Parliament. This adjustment provides the National Treasury with additional time to assess the practical application of the procurement framework before formal review cycles commence.

Click here to download the Gazette Notice extending the comment period.

Click here to download the SARB Media Statement on Jibar cessation.

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

  • For yourself: Professional advisors must update their technical knowledge regarding the 31 December 2026 Jibar cessation deadline to ensure all legal and financial advice reflects the shift to ZARONIA.
  • For your business: Firms must conduct an immediate audit of all internal and external financial contracts linked to Jibar and implement robust fallback provisions or transition to ZARONIA-based pricing to avoid valuation risks.
  • For your clients: Clients with exposure to Jibar-linked loans, derivatives, or bonds should be formally notified of the requirement to ensure operational readiness for ZARONIA and the potential impact of the draft Bill on their contract terms.

Originally published at https://legalacademy.co.za/news/read/financial-sector-regulation-public-procurement-draft-amendment-bill-out-for-comment

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