Minister Of Trade, Industry And Competition Issues Proposed Amendments To The Broad-based Black Economic Empowerment Codes

The Minister of Trade, Industry and Competition (“The Minister”) issued draft proposed amendments to the Broad-based Black Economic Empowerment Codes (“B-BBEE Codes”) on Friday 30 January 2026.

The notice issued by the Minister invite interested persons and the public to submit inputs and comments on the proposed amendments to the B-BBEE Codes within 60 days from the date of publication.

The proposed amendments relate to:

• Statement 000 of Code Series 000 (which deals with general principles of B-BBEE and generic scorecard);
• Statement 004 of Code Series 000 (which deals with the measurement of specialised enterprises, such as universities, non-profit companies/organisations, public benefit organisations);
• Statement 103 of Code Series 100 (which deals with recognition of equity equivalents for multinationals);
• Statement 400 of Code Series 400 (which deals with principles for measurement of enterprise and supplier development element); and
• 600 Code Series (which deals with measurement of qualifying small enterprises).

The proposed changes are largely to introduce reference to the Transformation Fund in the B-BBEE Score card for purposes of points allocation in relation to the contribution to the fund. The Transformation Fund is a fund to be established by Government in partnership with the private sector, which seeks to support the ever-growing funding requirements for businesses owned and managed by black entrepreneurs to propel inclusive growth across various sectors of South Africa's economy. The Transformation Fund will be a ZAR100 billion aggregated fund, and is anticipated to be capitalised at ZAR20 billion per annum over a five-year period.

The material amendments to Statement 400 of Code Series 400, are in the main as follows:

• The introduction of references to 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;
• 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;
• 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;
• 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;
• 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;
• Revision of the ESD Recognition Matrix.

The proposed changes to are largely to give effect to the proposed amendments set out in Statement 400 of Code Series 400. By way of example, the B-BBEE points for Enterprise, Development, Supplier Development and Transformation Fund contribution in respect of QSE's (under Code Series 600) have been increased from 30 points to 55 points.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.