GAZETTE 54032 ISSUED FOR 60 DAY PUBLIC COMMENTARY
- Newsletter Editor
- 6 days ago
- 2 min read
The Drafts are not merely technical changes, they reflect a policy direction with practical implications for business transformation, compliance strategy, and economic participation. 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 & 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.
Redesign of 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 EMEs and 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. 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.”
Technical Services are available to assist Members with understanding the Draft Gazettes and the impact thereof.