Proposed B-BBEE Changes: What Businesses Need to Know Before March 2026

The Department of Trade, Industry and Competition (dtic) has recently released a draft statement proposing significant changes to the B-BBEE framework and verification processes. These proposed amendments are open for public comment until the end of March 2026, after which a final version is expected to be published.

While the changes are still in draft form, they signal a major shift in how B-BBEE will be measured and implemented going forward. After reviewing the draft in detail, here are the most important insights every business should be aware of.

1. Introduction of a Transformation Fund

One of the most impactful changes is the introduction of a Transformation Fund. This new fund allows companies to score up to 20 points by contributing 3% of Net Profit After Tax (NPAT). Importantly, businesses that choose to use the Transformation Fund instead of traditional Enterprise and Supplier Development (ESD) can earn an additional five bonus points. This effectively creates a new strategic option: rather than managing multiple ESD initiatives, companies may opt for a single financial contribution with potentially higher scoring benefits.

2. Major Shift in Preferential Procurement

Preferential Procurement sees some of the most dramatic changes.

The draft places a strong emphasis on 100% black-owned suppliers, with the majority of points now weighted toward procurement from these entities. Suppliers that are not fully black-owned will earn significantly fewer points, making it much harder for companies to score well unless their supply chain is substantially transformed.

This will require many businesses to rethink their procurement strategies and supplier relationships entirely.

3. Changes to Supplier and Enterprise Development

Supplier and Enterprise Development (SED) will also undergo structural changes.

1. Key areas affected include:

2. New documentation and evidence requirements

3. Adjustments to bonus point structures

4. More stringent compliance criteria

While ESD is not being removed, the administrative burden and compliance standards are expected to increase.

4. Other Code Changes

At this stage, no major changes are proposed for other scorecard elements. However, the Transformation Fund is now being incorporated into: Code Series 000 (Statements 004 and 103) Code Series 600 (QSEs)with a specific emphasis on Code Series 400.

This means the Transformation Fund will become a core part of how multiple entity types are assessed.

Final Thoughts

If these draft amendments are implemented as proposed, they will represent the biggest shift in B-BBEE in over a decade. Businesses that prepare early, by understanding the direction of change, will be in a far stronger position to adapt quickly and strategically once the final rules are in place.