B-BBEE Proposed Amendments 2026: What Businesses Need to Know

It has been several months since the proposed B-BBEE amendments were published by the Department of Trade, Industry and Competition (the dtic) via Government Gazette No. 54032 on Thursday, 29 January 2026, and businesses across South Africa continue to await the finalisation of these amendments.

As a reminder, a series of Draft Gazettes were published in terms of Section 9(5) of the Broad-Based Black Economic Empowerment (B-BBEE) Act for a 60-day public commentary period, which has now lapsed.

These proposed amendments represent one of the most significant overhauls of the B-BBEE regulatory framework in recent years. The revisions aim to strengthen accountability, refine scorecard measurement, and drive more meaningful and measurable transformation outcomes across the South African economy. The proposed amendments apply to the General B-BBEE Codes of Good Practice.

Scope of the Draft Amendments

The Gazette includes proposed amendments to the following:

• 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

These drafts are not merely technical updates. They signal a clear policy shift with far-reaching implications for business strategy, compliance frameworks, and economic participation.

Key Policy Developments

1. Introduction of a Transformation Fund

A central proposal is the establishment of a Transformation Fund, which introduces an alternative compliance mechanism to traditional Enterprise and Supplier Development (ESD) contributions.

• Measured entities may contribute 3% of Net Profit After Tax (NPAT) to the Fund.
• In return, entities can earn up to 20 B-BBEE scorecard points.
• The Fund aims to consolidate resources to drive scalable impact for Black-owned and Black-managed enterprises.

This marks a shift from fragmented ESD initiatives towards a more centralised and impact-driven funding model.

2. Redesign of Procurement and Supplier Targets

The draft scorecards introduce more targeted and outcome-based procurement requirements, including:

• Increased emphasis on procurement from 100% Black-owned enterprises.
• Specific weighting for 100% Black women-owned enterprises.
• Greater focus on driving inclusive supplier ecosystems.

This reflects a deliberate move towards deepening economic participation and supplier transformation.

3. Equity Equivalent Investment Programme (EEIP) Enhancements

Under Draft Statement 103, the Transformation Fund is introduced as a recognised programme within the Equity Equivalent Investment Programme framework for multinational entities.

4. Formal 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 scalable impact rather than fragmented individual ESD initiatives.”

Implications for Businesses

These proposed amendments signal a decisive shift toward measurable impact, accountability, and outcome-based transformation.

Organisations will need to:

• Reassess their current B-BBEE strategies and compliance models.
• Evaluate the potential shift towards the Transformation Fund versus traditional ESD approaches.
• Strengthen supplier development pipelines and procurement alignment.
• Enhance governance, monitoring, and reporting mechanisms.

The 2026 Draft Amendments represent a pivotal moment in South Africa's transformation journey. As the regulatory landscape evolves, organisations that proactively adapt will be best positioned to achieve both compliance and sustainable transformation outcomes.

Continue the Conversation

The final amendments have the potential to reshape the way organisations approach B-BBEE compliance and transformation strategy for years to come. Preparing early and understanding the implications of these proposed changes can position your business for long-term success.

If you would like to continue the conversation and understand what these amendments could mean for your organisation, our consultants are available to guide you through the implications and help you prepare for the road ahead.

Contact Transcend Corporate Advisors today to discuss your B-BBEE strategy and navigate the evolving regulatory landscape with confidence.