Draft Gazette 54032 introduces sweeping changes to B-BBEE codes

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This introduces a suite of draft amendments to the B-BBEE Codes of Good Practice for 60 days of public comment. These proposals signal a forward-looking re-engineering of South Africa’s empowerment landscape and placing greater emphasis on measurable economic participation, strategic funding mechanisms, and equitable enterprise growth.

The changes underscore the DTIC’s commitment to outcome-focused measurement, where B-BBEE transformation spend is not only about volume but also about demonstrating enduring economic uplift.

The proposals represent one of the most substantial revisions to the B-BBEE regulatory framework in years, aimed at strengthening accountability, refining the empowerment scorecard, and incentivising transformation outcomes across the B-BBEE landscape.

The gazette includes a number of draft gazettes which include amendments to:
Draft Statement 000 of 2026
Draft Statement 004 of 2026
Draft Schedule 1 of 2026
Draft Statement 103 of 2026
Draft Statement 400 of 2026
Draft Code Series 600 of 2026

The Drafts are not merely technical changes; they reflect a policy direction with practical implications for business transformation, compliance strategy, and economic participation.

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Some of the major areas that have been introduced are as follows:

Introduction of a transformation fund

• A major proposal is the establishment of a transformation fund as an alternative compliance route to traditional enterprise and supplier development (ESD) spend.
• Businesses could contribute a fixed percentage, 3% of net profit after tax, into this fund to earn a significant portion of B-BBEE scorecard points (20 points), centralising and scaling funding for Black-owned and Black-managed enterprises.
• Whilst many have questioned the corporate governance aspects of the transformation fund, others have welcomed it and are eager to understand how beneficiaries can be supported in a sustainable manner.

Redesign of preferential procurement and supplier targets

• The draft scorecards emphasise more nuanced supplier spend targets, including distinct weighting for procurement from 100% Black-owned enterprises and 100% Black-women owned enterprises, signalling a shift toward more outcome-oriented procurement transformation.

Equity equivalent investment programme for multinationals

• Draft Statement 103 introduces the transformation fund as one of the programmes that can be implement under the equity equivalent investment programme.

Definition of the transformation fund

• Draft Schedule 1 of 2026 defines the “transformation fund” as “an aggregated mechanism to accelerate economic transformation and support Black enterprises, particularly exempted micro enterprise (EMEs) and qualifying small enterprise (QSEs). It aims to pool resources from measured entities to create a scalable impact rather than fragmented individual ESD initiatives”.

Furthermore, majority of the Amendments have been incorporated under draft statement 400 of the General B-BBEE Codes of Good Practice and has been introduced under the other statements.

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The key amendments are as follows:

1. The introduction of 2.4, the transformation fund, the annual value of contribution of 3% of the net profit after tax to the transformation fund, and the introduction of weighting points of 20. This is introduced as an alternative to the existing contribution to enterprise development and supplier development. Measured entities will continue to score points for implementing their existing enterprise development or supplier development.
2. The introduction of 15% procurement target for 100% Black-owned EMEs and QSEs each.
3. The introduction of 25% procurement target for 100% Black-owned enterprises.
4. The introduction of 25% procurement target for enterprises that are between 51% to 99% Black-owned.
5. The introduction of 12% procurement target for 100% Black women-owned enterprises.
6. The increase of the procurement compliance target to 10% on bonus points for companies that are at least 100% owned by designated groups.
7. The increase in bonus points for measured entities that enable the recipient of ESD contributions and/or a 100% Black-owned QSE or EME, and a first-time supplier that has a minimum 3-year contract with the measured entity.
8. The increase in bonus points for a measured entity that enables an average turnover and job creation growth of at least 10% per annum for a period of a three-year contract of all on-boarded first-time suppliers.
9. Clarified that measured entities, for the purpose of enterprise development and supplier development, are required to submit a needs analysis, performance metrics (with outputs and outcomes), and an annual monitoring and evaluation report that must be verified before recognition of points to be scored.
10. Revision of the ESD recognition matrix.

The BEE Chamber encourages all companies to analyse the amendments in depth to understand the implications for their B-BBEE transformation and business strategy that will lead to sustainable impact.