The tension between the Minister of Finance and the Democratic Alliance (DA) (often acting as a supporter of Afribusiness/Sakeliga) has shaped the landscape of how the South African government spends its money. This decade-long saga centers on one core debate: Should government contracts prioritize Broad-Based Black Economic Empowerment (BEE) scores or “value for money”?
Here is the breakdown of how we got to the current legislative crossroads.
Phase 1: The Minister’s Strategy (2011–2017)
The conflict began in earnest in December 2011, when the Minister of Finance implemented regulations that shifted government focus heavily toward BEE scores. By June 2016, the Minister pushed further with the 2017 Draft Regulations, introducing “pre-qualification” criteria. This meant a company had to meet specific BEE level requirements before its price bid would even be considered.
Afribusiness immediately protested, leading to a heated dispute over the short 30-day public comment period. Despite these protests, the Minister officially adopted the 2017 Regulations in January.
Phase 2: The Legal Rollercoaster (2017–2022)
Afribusiness took the fight to the courts in May 2017, arguing the regulations were “irrational” and “illegal”. The legal battle saw dramatic shifts in momentum:
- The Minister Wins (Nov 2018): The High Court dismissed the Afribusiness application.
- The Reversal (Nov 2020): The Supreme Court of Appeal (SCA) overturned the ruling, declaring the 2017 Regulations invalid and agreeing that the Minister had exceeded his powers.
- The Final Blow (Feb 2022): The Constitutional Court dismissed the Minister’s appeal, confirming the regulations were invalid and leaving government procurement in a state of “limbo”.
Phase 3: The “Stop-Gap” and the New Act (2022–2024)
To stabilise the system, the Minister issued the 2022 Regulations in November. In a strategic pivot to avoid more lawsuits, he removed his own power to set BEE levels and handed that authority to individual municipalities and departments.
However, the goal remained a unified system. In June 2023, the Minister introduced the Public Procurement Bill to create a single law for all government buying. The DA fiercely opposed this during 2024 public hearings, labelling it a “BEE Procurement Bill” that would invite state capture.
Phase 4: The Current Climate (2024–2026)
In July 2024, President Ramaphosa officially signed the Public Procurement Act of 2024 into law. The DA has already vowed to challenge the Act, claiming it ignores the principle of “value for money”.
Where we are now: As of 2025–2026, the Minister is in the process of drafting the new regulations for the 2024 Act. Given the history of this dispute, the upcoming public comment periods are expected to be some of the most highly contested in South African history.
Read the full article about the Act here: Inflated Costs, Deflated Growth: The hidden price tag of the 2026 Regulations
Have an Opinion? Here’s How to Effectively Shape South Africa’s New Procurement Rules: Click here to read our step by step guide to comment on the Act
