PRETORIA — B-BBEE Commissioner Tshediso Matona has announced a strategic push to advance economic transformation through comprehensive public procurement reform. Speaking on the urgent need for policy coherence, Matona highlighted that the B-BBEE Commission is partnering with the Black Management Forum and the Procurement Performance Institute to submit critical joint comments to the National Treasury regarding the proposed regulatory framework.
Public procurement has been identified as a critical lever in the broader architecture of Black Economic Empowerment (BEE). According to Matona, public procurement acts as the primary driving incentive for corporate South Africa to comply with transformation legislation in order to access state contracts. The scale of this opportunity is massive: public procurement of goods and services in South Africa is estimated to be between R1.5 trillion and R2 trillion per annum. To contextualize this figure, Matona noted that this procurement bar exceeds the combined gross domestic product of neighboring countries like Botswana and Lesotho, alongside international economies such as Switzerland, making it a distinct economy in its own right.
The South African Constitution mandates that the procurement system must be fair, equitable, transparent, and competitive. Crucially, it also dictates that the system must be used to advance categories of people disadvantaged by unfair discrimination during apartheid. Matona emphasized that using procurement for economic inclusion is a constitutional imperative.
However, the B-BBEE Commission has expressed concern that the necessary balance between well-governed, cost-effective, and transparent procurement, and its use as a tool for economic inclusion, is not being properly struck in the current draft procurement regulations. With the deadline for stakeholder submissions to the National Treasury imminent, the Commission is consolidating its feedback with like-minded organizations to prevent unintended consequences.
Addressing the pervasive issue of corruption in state business, Matona was unequivocal. He stated that corruption fundamentally undermines the objectives of the “procurement tool”. Proper governance and integrity are prerequisites for promoting true inclusion. The Commission explicitly supports ongoing interventions, such as those highlighted by the Madlanga panel, which seek to expose corruption in public procurement and protect state resources from abuse. Compromising public resources not only drains the fiscus but also derails the noble constitutional agenda of fostering an inclusive, growing economy.
Looking ahead, the ideal outcome for the B-BBEE Commission is a new legislative framework for public procurement that remains faithful to the objectives of the B-BBEE Act. Matona warned that the current draft does not sufficiently incorporate these objectives, which risks creating policy uncertainty and fragmented implementation.
The Commission is strongly advocating for policy coherence, stressing that B-BBEE legislation and public procurement rules are not competing frameworks, but rather complementary ones. Matona concluded that the clear criteria for what qualifies in the procurement system must be adequately reflected as the National Treasury finalizes the regulations, ensuring the balance between fiscal responsibility and transformative economic inclusion is successfully achieved.
