The Broad-Based Black Economic Empowerment (B-BBEE) Commission, in partnership with the Black Management Forum (BMF) and the Procurement Performance Institute (PPI), today presented a comprehensive joint stakeholder perspective to members of the media on the Draft Public Procurement Regulations currently under consideration by National Treasury.
The briefing follows an extensive stakeholder engagement process involving organisations from business, academia, traditional leadership, civil society and organised business, all committed to advancing South Africa’s constitutional vision of an inclusive and transformed economy.
At the heart of the submission is the proposition that public procurement should not merely be viewed as an administrative function for acquiring goods and services, but as one of the state’s most strategic instruments for driving economic transformation, industrialisation, job creation, localisation and Broad-Based Black Economic Empowerment.
Public procurement accounts for hundreds of billions of rand in public expenditure each year. How these resources are allocated has significant implications for enterprise development, economic participation and inclusive growth. The stakeholder organisations therefore welcome government’s efforts to modernise the procurement system through the Public Procurement Act and the accompanying Draft Public Procurement Regulations.
Section 217 of the Constitution requires procurement systems to be fair, equitable, transparent, competitive and cost-effective, while also permitting procurement policies that advance persons disadvantaged by unfair discrimination. This constitutional framework establishes procurement as a developmental instrument capable of advancing substantive equality and inclusive economic participation.
It is from this constitutional perspective that the B-BBEE Commission, the Black Management Forum and the Procurement Performance Institute have joined forces to contribute constructively to the public procurement reform process by advancing a shared vision of a procurement framework that promotes inclusive economic participation, Broad-Based Black Economic Empowerment, industrialisation and sustainable economic growth.
The parties argue that procurement reform must contribute meaningfully to addressing structural inequality, expanding productive economic participation and supporting South Africa’s long-term developmental objectives. Procurement should reinforce national efforts aimed at industrialisation, localisation, enterprise and supplier development, and the expansion of black-owned businesses throughout public and private sector value chains.
The joint submission is organised around eight thematic areas that examine the constitutional, developmental, historical and economic dimensions of the proposed regulations.
Theme One provides an overall assessment of the draft regulations and identifies structural concerns relating to developmental procurement, localisation, industrialisation, enterprise and supplier development, black industrialists and opportunities for SMMEs, cooperatives, township and rural enterprises.
Theme Two considers the broader constitutional question regarding the application of the transformative objectives contained in Section 217 of the Constitution and encourages further dialogue on restructuring economic participation across strategic sectors.
Theme Three reflects on South Africa’s procurement reform journey, including the developmental vision contained in the 1996 Green Paper on Public Sector Procurement Reform, and considers whether the current reforms sufficiently preserve those original aspirations.
Themes Four to Eight critically examine the proposed preferential procurement framework, infrastructure procurement, strategic procurement categories such as travel, accommodation, legal services and leases, institutional arrangements relating to procurement governance, and the proposed procurement methods and procedures. Collectively, these themes seek to stimulate constructive engagement on whether the proposed regulations provide adequate policy instruments to accelerate Broad-Based Black Economic Empowerment, strengthen local production, support supplier development and promote inclusive economic growth.
The parties further submit that procurement policies should expand opportunities for women-owned enterprises, youth-owned businesses, persons with disabilities, cooperatives, township enterprises and rural businesses. They also emphasise that localisation and enterprise and supplier development should remain central pillars of South Africa’s procurement framework, enabling procurement to strengthen domestic production, local supply chains, industrial competitiveness and sustainable economic development.
At the same time, the submission recognises that procurement reform must balance developmental objectives with sound governance, transparency, accountability and value for money. These principles should reinforce, rather than compete with, South Africa’s constitutional commitment to economic transformation.
Speaking during the media briefing, Commissioner Tshediso Matona of the B-BBEE Commission said:
“South Africa is currently undertaking one of the most significant reforms of its public procurement system since the advent of democracy. The Public Procurement Act and the Draft General Public Procurement Regulations present an opportunity to strengthen governance, improve efficiency and modernise procurement administration across the public sector. These reforms deserve recognition. They reflect government’s commitment to building a procurement system that is transparent, accountable and capable of delivering value for money for the South African public. However, procurement reform should not only be viewed through the lens of governance and administration. It should equally be viewed through the lens of constitutional transformation”
Dr Shevonne Henry, Chairperson of the Policy and Research Committee, Black Management Forum, said:
“Public procurement remains one of the state’s most powerful instruments for advancing economic transformation. The reality is that South Africa’s private sector remains highly concentrated, while the public sector continues to be the primary employer of black professionals and an important pathway for black-owned enterprises to enter, grow and scale within the economy. This is precisely why preferential procurement policies remain indispensable. Against a backdrop of persistently high levels of poverty, unemployment and inequality, which continue to disproportionately affect black South Africans, procurement reform must strengthen, not dilute the constitutional mandate for transformation. Section 217 of the Constitution is not an optional policy consideration; it is a constitutional imperative that requires public procurement to advance both good governance and meaningful economic inclusion. If we are serious about building an inclusive economy, we must ensure that our procurement framework gives practical effect to that mandate.”
Speaking on behalf of the Procurement Performance Institute, Chief Executive Officer Nduduzo Ngema said:
“We need to explore a more decentralised and responsive procurement support system that strengthens capacity at provincial and municipal levels. Such an approach could improve accessibility for local businesses, deepen participation in township and rural economies, and create a procurement ecosystem that is more inclusive and responsive to local development needs. At the same time, decentralisation must be accompanied by robust governance, transparency and oversight mechanisms to safeguard the integrity of the procurement system. By balancing accessibility with accountability, South Africa can build a procurement framework that expands opportunities for black-owned enterprises while maintaining the highest standards of public sector governance”
The stakeholder organisations emphasised that the submission has been made in the spirit of constructive engagement and partnership. They welcomed National Treasury’s public consultation process and reaffirmed their commitment to continued dialogue on procurement reform.
The organisations also thanked the many institutions, experts and stakeholders who contributed to the submission, noting that collaborative policymaking is essential to addressing South Africa’s economic challenges.
The B-BBEE Commission, the Black Management Forum and the Procurement Performance Institute remain confident that, through continued engagement, South Africa can develop a procurement framework that strengthens governance while simultaneously advancing Broad-Based Black Economic Empowerment, industrialisation, localisation, enterprise development and sustainable economic growth.
Together, these reforms can help realise the constitutional vision of a more inclusive, equitable and prosperous South Africa, where public procurement serves not only as a mechanism for acquiring goods and services but also as a strategic instrument for nation-building, economic justice and shared prosperity.
ENDS
Issued by the dtic on behalf of the B-BBEE Commission
Media Enquiries
B-BBEE Commission
Mofihli Teleki | Senior Manager: Stakeholder Relations & Communication
Tel: 082 092 0079
Email: MTeleki@beecommission.gov.za
Black Management Forum (BMF)
Dr Shevonne Henry | Chair: Policy and Research Committee
Tel: 073 875 4213
Email: founder@marginspushboundaries.com
Procurement Performance Institute (PPI)
Nduduzo Ngema | Chief Executive Officer
Tel: 075 321 7097
Email: ppisouthafrica@gmail.com
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