PREFERENTIAL PROCUREMENT REGULATIONS, 2022
The purpose of this statement is to provide clarity in light of some of the news reports that have, incorrectly, attributed the new regulations to a change in procurement as it relates to State Owned Entities, and as a wholesale scrapping of Black Economic Empowerment and local content development.
This is not the case.
Procurement is a complex and highly contested arena in South Africa. Much of it is steeped in legalese and technical language. It is no accident that the Zondo Commission published a dedicated report on public procurement and made significant findings.
The Minister of Finance, as well as the National Treasury and the Government, remain wholly committed to transformation and empowerment as envisioned in the Constitution. In fact, organs of state must comply with the BBBEE Act when developing their procurement policies.
On 4 November 2022, when the Minister of Finance gazetted new Preferential Procurement Regulations (2022 Regulations) under the Preferential Procurement Policy Framework Act, 2000 (PPPFA), this was aimed at aligning the regulations to the February 2022 Constitutional Court judgement.