Have your 2026 Preferential Procurement strategies been thrown into disarray by the recent proposed amendments to the B-BBEE codes announced by Minister Parks Tau from the Department of Trade, Industry and Competition?
The Minister has recently circulated for comment proposed amendments which at first glance are primarily focused on the introduction of the “Transformation Fund” as part of the Enterprise and Supplier Development (ESD).
We spend a lot of time engaging with B-BBEE consultants and having reviewed some of the proposed changes, we believe that the impact on Preferential Procurement is arguably going to be a bigger headache for organisations in 2026.
As a reminder, some of the key proposed changes include:
- The introduction of 15% procurement target for 100% black owned EMEs and QSEs each
- The introduction of 25% procurement target for 100% black owned enterprises
- The introduction of 25% procurement target for enterprises that are between 51% to 99% black owned
- The introduction of 12% procurement target for 100% black women-owned enterprises.
- The increase of the procurement compliance target to 10% on bonus points for companies that are at least 100% owned by Designated Groups.
For context, the key change here is that small businesses which had 51% black ownership were considered qualifying from a Preferential Procurement. Government is now pushing larger organisations to find suppliers who are 100% black / black-women owned.
This challenge is highlighted in various LinkedIn posts from B-BBEE consultants who have assessed the proposed changes to the codes.
(Read the full blog here)
** We do acknowledge that these are proposed amendments and are not yet Gazetted – but they do provide some indicative thoughts around how government is thinking about the B-BBEE scorecards in 2026
“Where do I find 100% black / black-women owned professional services firms to add into my procurement systems?”
Too often organisations have a very narrow view of how they can utilise professional service providers to help them navigate their growth trajectory.
Professional services offer a unique opportunity for organisations to truly diversify their supply-chains while introducing critical skills into their systems and processes.
These could include:
- Financial modelling
- Capital raising including Working Capital and accessing grants and incentives out of the Department of Trade, Industry and Competition – DTIC – including (Black Industrialist Scheme, Agro-Processing Support Scheme and Critical Infrastructure Grants)
- Financial Readiness Assessments
- Business Brokerage
- Training on the above services for Enterprise and Supplier Development (ESD) beneficiaries
- Our “Sponsor a Black Industrialist” initiative
- Asset management
If these are the kind of services you need in 2026, then start building out a roadmap for their integration into your business activities. We would love to chat to you about these kind of opportunities.
Strategic benefits of introducing women-owned professional service providers into your value-chain
Apart from meeting B-BBEE compliance targets on the Preferential Procurement elements of your scorecard, high-quality strategic advisors can be a game-changer for growth businesses in South Africa.
For instance, we have two exciting case studies where one of our partner teams were able to support a Measured Entity significantly reduce their investment in an ESD beneficiary (between 60% and 80%) of their ESD spend while unlocking hundreds of millions of Rands in funding. This funding was used for Working Capital and Expansion Finance and incorporated elements of debt funding, DTIC grants and incentives and ESD contributions.
Whether you are looking for expansion finance for your business – or you are looking to support a business in your value-chain, having an experienced team on your side will be a powerful catalyst and free your key people up to focus on running your business.
Need to diversify your Preferential Procurement channels with quality service providers?
These amendments to the B-BBEE codes need not be a challenge for forward-thinking organisations in 2026 – rather they should be seen as an opportunity to tackle strategic issues your business may be grappling with.
If this is a challenge that you are expected to face, we can assist you with a team that has assessed over 2500 SMEs and raised nearly R3bn in capital for growth-focused entrepreneurs.
If you would like to discuss in further detail, please do not hesitate to reach out to us.
