# South African Government Revises Procurement Set-Aside Rules

The South African Government has proposed new public procurement regulations that introduce a set-aside system targeting multiple designated groups, including black-owned businesses, but do not reserve all government contracts below R20 million exclusively for 100% black-owned companies. Instead, the regulations establish a minimum procurement budget target of 30% for black-owned businesses where applicable, alongside provisions for other designated groups and small enterprises. These changes affect ownership thresholds, competition dynamics, and administrative oversight within public procurement processes.

- Procurement professionals should note that contracts under R20 million are not automatically reserved for black-owned businesses, impacting bidding strategies and eligibility.
- The 30% minimum procurement target for black-owned businesses creates opportunities but requires compliance with ownership and designation criteria.
- Agencies and contractors must understand the broader framework that includes multiple designated groups to align procurement planning and reporting.
- This regulatory update signals increased emphasis on inclusive procurement, necessitating enhanced administrative oversight and documentation to meet set-aside requirements.

**Jurisdictions:** sled
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 19, 2026

### Government Entities
- South African Government

### Sources
- [DARYL SWANEPOEL | No, not all government contracts below R20m will be reserved for black-owned businesses](https://www.businessday.co.za/opinion/2026-09-19-daryl-swanepoel-no-not-all-government-contracts-below-r20m-will-be-reserved-for-black-owned-businesses) - Business Day