By Tristan Hussey – Associate
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On 29 January 2026, the Minister of Trade, Industry and Competition, published draft amendments to the Broad-Based Black Economic Empowerment (“B-BBEE”) Codes of Good Practice, for public comment. The policy intention is clear: the South African Government wants faster and more visible transformation, particularly for small black-owned businesses.
One of the most significant proposed amendments relates to a National Transformation Fund. Currently, companies earn B-BBEE points by helping black-owned small businesses directly, such as providing financial support, training or business opportunities. The proposed amendments allow companies to instead contribute to a central fund, which would then support qualifying businesses. While this may appear simpler, it remains unclear how contributions will be measured and verified, especially where a business depends on a specific B-BBEE level for tenders, contracts or financing.
A further proposed amendment relates to procurement. Currently, companies earn B-BBEE points should they buy from suppliers that are 51% black-owned. The proposed amendments materially increase the weighting and targets for procurement to 100% black-owned and 100% black female-owned suppliers, while still retaining recognition for procurement from suppliers in the 51%–99% black-owned range. As a result, B-BBEE will increasingly influence procurement preference in order to maintain their B-BBEE levels, even where current suppliers are reliable and long-standing.
The proposed changes currently only apply to the Generic Codes. Sector-specific codes, including those for financial services, construction, ICT, chartered accountancy, agriculture, property, tourism, and transport, are not affected unless those sector codes are specifically amended.
The key takeaway is that B-BBEE is shifting from a compliance-driven requirement to a core operational business issue. A company’s rating will increasingly be shaped by where it directs financial support and with whom it conducts business, rather than by policies or internal structures alone.
B-BBEE compliance is no longer a once-a-year exercise. As the regulatory landscape evolves, tailored legal advice will be essential to ensure that your business remains compliant, stay competitive, and adapt confidently to the changes ahead.