The Department of Trade, Industry and Competition (the dtic) has published Draft Government Gazette No. 54032, opening public commentary on proposed amendments to the B-BBEE Codes of Good Practice.
These draft changes, released on 29 January 2026, signal a significant shift in how Enterprise and Supplier Development (ESD) and procurement will be measured going forward — particularly following the announcement of the R100 billion Transformation Fund.
While the Codes are still in draft form, the direction of travel is becoming increasingly clear.
What’s Changing?
At the centre of the proposed amendments is the formal introduction of the Transformation Fund as an alternative compliance option under the ESD element.
Key proposals include:
- Transformation Fund introduced as an alternative to traditional ED & SD
Businesses may contribute 3% of NPAT to the Transformation Fund to earn 20 points, instead of implementing Enterprise and Supplier Development initiatives directly. - ESD remains a priority element
The 40% sub-minimum still applies, meaning underperformance will continue to impact overall BEE levels. - Procurement targets shift toward deeper transformation
Greater weighting is placed on procurement from:- 100% Black-owned EMEs and QSEs
- 100% Black women-owned suppliers
- Reduced recognition for partially Black-owned suppliers
Procurement from entities with 51%–99% Black ownership attracts fewer points compared to current Codes. - Stricter requirements for traditional ED & SD
Contributions must now be supported by:- A formal needs analysis
- Defined performance indicators
- Measurable outcomes and monitoring reports
- QSE scorecards are also impacted
With new procurement indicators and fewer “optional” compliance routes.
What This Means for Businesses
Although these amendments are still subject to public comment, they reinforce a clear policy message:
Transformation must be deeper, more intentional, and outcomes driven.
Businesses will need to:
- Reassess their supplier mix
- Review their ESD strategy vs Transformation Fund option
- Ensure procurement decisions align with future scoring realities, not past structures
Have Your Say
The dtic has opened a 60-day public commentary period. This is a critical opportunity for businesses to:
- Understand the practical impact of the proposals
- Engage meaningfully with the draft Codes
- Adjust strategy ahead of final implementation
📩 Submissions can be sent to:
CodeSeries600-2026@thedtic.gov.za
At BEE Analyst, we are already analysing how these proposed changes could affect scorecards, procurement strategies, and long-term compliance planning. If you’d like to understand what this means for your business specifically, we’re here to help.
📩 Need help aligning your business with the new requirements?
Contact: Jaco Jacobs
Office: 012 997 0037
E-mail: consult@beeanalyst.co.za
👉 Read the full Statement here.
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