The Centre for Development and Enterprise (CDE) and major opposition parties have warned that the National Treasury’s draft General Public Procurement Regulations, 2026, will raise public sector costs and deepen corruption, as the public comment period was officially extended to 15 July 2026.

Concerns Over Pre-Qualification And Set-Aside Requirements

The draft regulations, introduced to operationalise the Public Procurement Act, 2024, include mandatory racial pre-qualification criteria, set-aside provisions, and compulsory subcontracting aimed at promoting procurement from designated groups. The Democratic Alliance (DA) and independent research institutes say these requirements will reduce fair competition and increase costs for government contracts. The CDE argues the regulations risk narrowing the pool of eligible suppliers and complicating procurement processes, making oversight more difficult.

Ann Bernstein, CDE Director, stated, “Simplicity is one of the most powerful instruments available for reducing corruption.” The DA’s spokesperson on finance, Dr. Mark Burke MP, said during a media briefing, “Government’s purse is strained. Corruption masquerading as BEE is rampant. What we need are laws and regulations that address our problems, not ones that exacerbate poverty and inequality.”

Public Feedback And Broader Political Debate

Following calls from business, civil society and political stakeholders for more time to provide input, the public comment period on the regulations was extended by 30 days, with submissions now due by 15 July 2026, according to the National Treasury. The regulations have faced opposition from both business organisations and opposition parties, who contend that rigid, centrally controlled procurement systems with racial pre-qualification criteria can encourage corruption and reduce transparency.

Dr. Shevonne Henry, chair of the Black Management Forum Policy and Research Committee, said, “One of the major criticisms we get when we talk about public procurement and B-BBEE is that there is so much corruption.” The debate comes against the backdrop of South Africa’s ongoing efforts to reform the procurement system to support economic transformation, while balancing efficiency and the need to protect public funds.

The Treasury is expected to review all public comments before finalising the regulations, which will subsequently have significant implications for public finance management and anti-corruption efforts across all spheres of government.

A final version of the regulations will be published after the July deadline, following scrutiny of feedback from stakeholders.