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.
The Gazette includes proposed amendments to the following:
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.
A central proposal is the establishment of a Transformation Fund, which introduces an alternative compliance mechanism to traditional Enterprise and Supplier Development (ESD) contributions.
This marks a shift from fragmented ESD initiatives towards a more centralised and impact-driven funding model.
The draft scorecards introduce more targeted and outcome-based procurement requirements, including:
This reflects a deliberate move towards deepening economic participation and supplier transformation.
Under Draft Statement 103, the Transformation Fund is introduced as a recognised programme within the Equity Equivalent Investment Programme framework for multinational entities.
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.”
These proposed amendments signal a decisive shift toward measurable impact, accountability, and outcome-based transformation.
Organisations will need to:
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.
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.