The Department of Trade and Industry has recently gazetted draft changes to the B-BBEE Codes of Good Practice, open for public comment until 30 March 2026.
One of the most notable proposals in the draft amendments is the introduction of a centrally administered Transformation Fund. The draft allows companies to contribute 3% of Net Profit After Tax to the fund as an alternative mechanism to Enterprise and Supplier Development (ESD) spend, with a weighting of 20 points under Draft Statement 400. This represents a significant shift in how transformation funding could be structured within the B-BBEE framework.
At the same time, the draft amendments introduce substantial changes to procurement targets, with significantly higher requirements for spend on black-owned suppliers across a number of categories, including 100% black-owned companies, black women-owned businesses, and designated group-owned enterprises. For many organisations, particularly those operating in specialised or concentrated supply chains, these targets may present practical compliance challenges and will require careful consideration of procurement strategies.
Taken together, the proposed Transformation Fund and the revised procurement requirements signal a clear policy direction towards accelerating economic inclusion through more structured and measurable mechanisms. However, as these amendments are currently in draft form, there remains an important opportunity for businesses to engage constructively during the public comment process to ensure that the final framework remains both impactful and practically workable.
Contact our B-BBEE consulting team for more information on how these changes may affect your B-BBEE scorecard if they are gazetted into legislation.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE).