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DA Tables Bill to Replace B-BBEE With Needs-Based Procurement

ANC resistance leaves the proposal facing long odds.

Overview

  • The Economic Inclusion for All Bill seeks to amend the 2024 Public Procurement Amendment Act by repealing race-based preferences and using poverty and measurable outcomes as the basis for awarding state contracts.
  • The proposed scorecard weights value for money at 80% and economic inclusion at 20%, with disqualification of bidders proven to have committed fraud, corruption, or misrepresentation, and alignment to UN Sustainable Development Goals.
  • The DA says it has filed a Constitutional Court challenge to procurement rules and that the court has received its application, with responses due by 27 November.
  • Transitional provisions include winding down the BEE Commission over 12 months and systematically removing BEE references across legislation.
  • ANC leaders, Cosatu, and the IFP reject scrapping B-BBEE, with President Cyril Ramaphosa stressing the policy’s constitutional footing, while analysts note the Bill is unlikely to pass in the current parliamentary configuration.