Staying Ahead of Procurement Regulation in South Africa

Procurement rules in South Africa are changing faster than many organisations can keep up.

Between the Public Procurement Act, preferential procurement regulations, Treasury instructions and sector rules, the risk of irregular expenditure and audit findings is real.

This article offers guidance on:

✅ Monitoring and interpreting new regulations
✅ Updating policies, templates and delegations
✅ Using data analytics, probity and forensic reviews to stay clean
✅ Building capacity in procurement teams and bid committees

If you would like support to benchmark your current practices or prepare for the Public Procurement Act era, we are ready to help.

Staying Ahead of Regulatory Changes in Procurement in South Africa

A Duja Consulting Perspective

Introduction: Procurement is No Longer “Business as Usual”

Procurement in South Africa has always been shaped by law, but over the past few years the pace and complexity of regulatory change has accelerated. Constitutional principles, anti-corruption reforms, preferential procurement rules, cost-containment measures, transparency requirements and now the Public Procurement Act are reshaping how public money is spent and how the private sector engages with the state.

At the heart of the framework sits section 217 of the Constitution, which requires that when an organ of state contracts for goods or services it must do so in accordance with a system that is fair, equitable, transparent, competitive and cost-effective. Around this core, layers of legislation, regulations and instruction notes have developed over time – Public Finance Management Act (PFMA), Municipal Finance Management Act (MFMA), Preferential Procurement Policy Framework Act (PPPFA) and its regulations, National Treasury instructions, circulars and guidelines.

Most recently, South Africa has taken a major structural step with the Public Procurement Act, 2024 (Act 28 of 2024), assented to in July 2024 and intended to create a unified framework for public procurement and preferential procurement across all organs of state. The Act is to be brought into operation by presidential proclamation, potentially in phases for different institutions, and the existing PFMA, MFMA and PPPFA-based framework remains in force until the relevant provisions and regulations of the new Act commence.

For procurement leaders in both public entities and private companies that sell to government, this landscape can feel daunting. Yet organisations that treat regulatory change as a strategic capability – rather than an occasional compliance headache – can unlock real value:

• Lower risk of irregular expenditure and audit findings
• Fewer bid challenges and delays
• Stronger fraud and corruption prevention
• Better access to opportunities as rules on set-asides, local content and transformation evolve
• Enhanced reputation with regulators, funders and citizens

This article sets out practical advice on how to monitor and respond to evolving procurement regulations in South Africa, with a particular focus on public-sector procurement and suppliers into that space. It is written from Duja Consulting’s vantage point as a firm working at the intersection of procurement, probity, forensic auditing and regulatory compliance.

1. Understanding the Moving Pieces in South African Procurement Regulation

Before you can stay ahead of change, you need a clear view of the current and emerging building blocks.

At a high level, South African public procurement today is governed by:

1. The Constitution (section 217) – setting out the overarching principles of fairness, equity, transparency, competitiveness and cost-effectiveness.
2. PFMA and MFMA – establishing financial management duties, including supply chain management, for national/provincial departments and entities (PFMA) and municipalities and municipal entities (MFMA).
3. PPPFA and Preferential Procurement Regulations 2022 – providing the framework for preferential procurement and how points systems and specific goals must be applied. The 2022 Regulations took effect on 16 January 2023.
4. National Treasury Instruction Notes, Guidelines and Circulars – for example, cost-containment measures and recent instructions enhancing procurement information transparency and publication of procurement data.
5. Sector-specific legislation and regulations – such as construction-industry rules, public-private partnership frameworks, and rules governing particular state-owned entities.
6. B-BBEE Act and Codes of Good Practice – which influence how preference and transformation objectives are embedded in procurement policies.
7. The Public Procurement Act, 2024 – which, once commenced and fully implemented with supporting regulations, will become the central framework for public procurement and will repeal the PPPFA.

The key point is that change is layered.

You are not dealing with a single “big bang” reform, but with:

• Ongoing amendments to Treasury instruction notes and practice guides
• New regulations (for example, the 2022 Preferential Procurement Regulations)
• The phased introduction of the Public Procurement Act and its regulations
• Evolving local content designations, set-aside rules and transformation requirements
• Increasing transparency and reporting expectations (for instance, the requirement to publish more detailed procurement information)

Without a structured approach, it is very easy for procurement teams to lose track of which rule applies where – and to find out too late through an audit finding or a court challenge.

2. Build a “Regulatory Radar” for Procurement

The first practical capability every procurement function needs is a regulatory radar – a systematic way of spotting changes early, understanding their impact, and routing them to the right people.

2.1 Appoint a Procurement Regulatory Owner

Even if you have a central legal or compliance function, assign a named individual as the procurement regulatory owner.

Their responsibilities should include:

• Maintaining a register of applicable procurement-related laws, regulations and instruction notes
• Monitoring changes and alerts from key sources
• Coordinating impact assessments and policy updates
• Being the liaison with legal, internal audit, National Treasury and other regulators

In many organisations, this role can sit with the head of supply chain, chief procurement officer or a senior SCM manager, supported by legal and compliance.

2.2 Map Your Authoritative Information Sources

Do not rely on social media snippets or informal WhatsApp groups as your primary source of regulatory news.

For public-sector procurement, your radar should at minimum track:

• National Treasury – Office of the Chief Procurement Officer (OCPO) website, including legislation, instruction notes, PPPFA regulations, FAQs and designated sectors.
• Government Gazette publications for new Acts, regulations, proclamations and notices.
• National and Provincial Treasury circulars & practice notes (e.g. cost containment, transparency instructions).
• Municipal Finance forums, SALGA and provincial treasuries for MFMA-related guidance.
• Reputable law firms and professional bodies (e.g. publications unpacking the Public Procurement Act, Constitutional Court decisions on procurement, and MAPS assessments of the system).

For private-sector suppliers, also monitor:

• Sector regulators (health, energy, construction, transport)
• B-BBEE Commission and Department of Trade, Industry and Competition
• Industry associations that frequently issue notes on procurement-related matters

Set up email subscriptions or RSS feeds wherever possible, and capture these sources in a simple “regulatory map” that forms part of your procurement manual.

2.3 Formalise a Horizon-Scanning Routine

Make regulatory monitoring a deliberate, scheduled activity, not a side-effect of someone stumbling over a link.

For example:

• A monthly 30–60 minute scan by the regulatory owner, using a checklist of sites to review
• A brief one-page bulletin summarising any changes and their potential impact
• A standing agenda item at procurement governance forums to discuss developments

This is especially important while the Public Procurement Act framework is still being phased in and accompanying regulations are being developed.

3. Translate Change into Policy, Process and Practice

Not every new regulation requires a major overhaul, but every significant change must be deliberately translated into your organisation’s internal world – policies, procedures, templates, systems and behaviours.

3.1 Maintain a Living Procurement Policy and Procedure Suite

Treat your SCM policies and procedures as living documents, rather than static PDFs updated every few years.

At minimum, maintain:

• A high-level Supply Chain Management Policy aligned to PFMA/MFMA, section 217 and the applicable regulations
• Detailed Standard Operating Procedures (SOPs) for each procurement method (quotations, competitive bids, sole-source, emergency procurement, deviations, transversal contracts, etc.)
• Clear delegations of authority and role descriptions for demand management, bid committees, evaluation panels and contract management

When regulations change (for example, preferential procurement point systems, local content thresholds, reporting requirements or set-aside rules), the regulatory owner coordinates updates to these documents and ensures that:

• The change is documented in a change-log with date, reference and rationale
• Old versions are archived but clearly marked as superseded
• Staff are informed and trained on what has changed

3.2 Embed Regulatory Requirements into Templates

The easiest way to ensure consistent compliance is to bake requirements into your templates, rather than relying on memory:

• Bid and RFQ templates that incorporate updated preference point systems, specific goal criteria, local-content declarations and standard conditions of bid
• Evaluation score sheets that reflect the latest weighting between price, functionality, quality and preference points
• Contract templates that incorporate clauses required by new Acts or instruction notes (for example, reporting obligations, anti-corruption commitments, right of audit, data transparency provisions under the Public Procurement Act)
• Deviation and emergency procurement forms aligned to the latest Treasury guidance

By centralising and version-controlling templates, you reduce the risk that individual units use outdated documents that no longer reflect current law.

3.3 Align Delegations and Governance Structures

Changes to procurement legislation often affect who may approve what, and under which conditions.

For example, the Public Procurement Act envisages new structures such as a Public Procurement Office and standardised committee systems for procuring institutions.

In practice, this means:

• Reviewing your supply chain delegations when new thresholds or approval requirements are introduced
• Ensuring bid committees, evaluation panels and adjudication structures reflect any new legal requirements
• Updating committee terms of reference to align with the new framework
• Clarifying escalation routes for irregularities, suspected fraud or conflicts of interest

Do not underestimate this step. Many audit findings arise not because the organisation misunderstood the law, but because delegations and structures were not updated to reflect it.

4. Prepare Specifically for the Public Procurement Act Era

The Public Procurement Act is arguably the most significant procurement reform since PFMA and MFMA. Even while the Act is being phased in, forward-looking institutions and suppliers should be preparing.

Key themes in the Act and related commentary include:

• Creation of a single legal framework for public procurement across all organs of state
• Establishment of a Public Procurement Office within National Treasury with regulatory, oversight and support functions
• Enhanced transparency, including broader publication of procurement information and data
• A framework for preferential procurement and set-asides, replacing the PPPFA
• Stronger remedies and sanctions for non-compliance and abuse of the system
• Clearer provisions around complaints and dispute mechanisms

Practical preparation steps include:

1. Gap analysis against the Act
   • Map the requirements of the Act against your current policies, processes and structures.
   • Identify areas where you will need to adjust – for example committee structures, publication of information, supplier engagement, dispute mechanisms.
2. Data and transparency readiness
   • The Act’s emphasis on transparency and centralised oversight implies that procurement data quality, completeness and timeliness will be critical.
   • Assess how easily you can produce complete procurement reports: awards, deviations, cancellations, suppliers, values and performance.
3. Supplier and market education
   • Many suppliers, especially small and medium-sized enterprises, will need help understanding the new framework.
   • Consider joint sessions with industry bodies or chambers of commerce to explain what the Act means in practice.
4. Scenario planning
   • Model the impact of different commencement dates and set-aside thresholds on your procurement plans, timelines and supplier base.
   • This helps you avoid disruption when the regulations and proclamations come into force.

5. Use Technology and Data to Stay Compliant

Regulatory change becomes much more manageable when you leverage systems and data, rather than spreadsheets and email chains.

5.1 Central Contract and Tender Registers

Maintain a central, digital register of:

• All competitive bids and quotations issued
• All awards (with supplier, value, method of procurement, preference points and goals)
• Deviations, emergencies and expansions or variations
• Contracts and their performance status

This register should be:

• Searchable and filterable by category, threshold, method, region and supplier
• Aligned to reporting requirements, so that generating statutory or Treasury reports is largely a matter of running a query

When regulations change (for example on transparency, local content or set-asides), having a robust data set makes it much easier to demonstrate compliance and adjust processes.

5.2 Workflow and Rules Engines

Modern procurement solutions allow you to embed business rules and workflows that mirror regulatory requirements:

• Automatic routing of bids above a certain threshold to specific committees
• Mandatory inclusion of updated preference criteria before a bid can be published
• Controls that prevent awards when required documentation (tax compliance, CSD registration, B-BBEE certificates, declarations of interest) is missing
• Flags and alerts when processes deviate from policy or when cumulative contract variations approach a threshold

This is particularly useful in a context where Treasury’s instruction notes and practice guides evolve relatively frequently. Instead of retraining everyone each time, you can codify core rules in the system and then use training to address judgement calls and grey areas.

5.3 Analytics for Irregularity Detection

Changes in regulation are often motivated by the need to reduce corruption and irregular expenditure.

By applying data analytics to your procurement data, you can:

• Identify patterns that may suggest non-compliance or fraud – for example repeated awards just below threshold, overuse of certain methods, or clustering of awards with a single supplier
• Monitor how well new rules are being applied across departments, regions or business units
• Provide internal audit and oversight bodies with targeted samples rather than random ones

Duja’s forensic and probity audit experience shows that combining regulatory knowledge with data analytics significantly improves an organisation’s ability to detect, prevent and respond to irregularities early.

6. Strengthen Supplier-Facing Compliance

Regulatory change is not only an internal compliance issue; it directly affects your suppliers and potential bidders.

6.1 Keep Supplier Onboarding Requirements Current

As preferential procurement regulations, B-BBEE rules or the Public Procurement Act’s framework for specific goals and set-asides evolve, so too must your supplier onboarding and registration requirements.

• Update supplier registration forms to capture information required to apply new preference criteria
• Clearly communicate documentation requirements (e.g. B-BBEE certificates, CSD registration, local-content declarations)
• Provide templates and guidance documents to minimise administrative errors

If you are a private company selling to the state, ensure your own internal documentation, compliance and reporting are aligned to the rules that apply to your public-sector clients.

6.2 Educate and Support the Market

Complex, fast-changing rules can unintentionally exclude legitimate suppliers who simply do not understand what is required.

To mitigate this:

• Host bidder information sessions when issuing large or strategic tenders
• Include plain-language explanations of preference criteria, scoring and disqualification triggers in your bid documents
• Provide helpdesks or contact points for clarification, while respecting fairness and transparency

An informed supplier base improves competition, reduces bid errors, and reduces the risk of disputes and challenges.

7. Embed Assurance: Internal Audit, Forensic and Probity Reviews

Staying ahead of regulatory change is not just about updating policies and training staff. You also need robust assurance mechanisms to test whether the changes are actually working.

7.1 Risk-Based Internal Audit Coverage

Work with internal audit (or external auditors, where appropriate) to ensure that procurement features prominently in the risk-based audit plan, with a lens on:

• Compliance with the latest regulations and instruction notes
• Effectiveness of controls around delegations, bid committees, conflict-of-interest management and contract management
• Implementation of transparency and reporting requirements
• Adherence to cost-containment and value-for-money expectations

Internal audit findings should feed back into the regulatory radar and policy-update process, creating a continuous improvement loop.

7.2 Forensic and Probity Audits as Preventative Tools

Forensic audits are often associated with reactive investigations when something has gone wrong.

However, Duja Consulting advocates using probity reviews and forensic-style testing proactively, especially on large or high-risk procurements, to:

• Assess whether processes comply with current laws and regulations
• Test the robustness of evaluation and adjudication decisions
• Identify early warning signs of collusion, fraud or undue influence
• Provide comfort to senior executives, boards and oversight bodies

Regular, targeted reviews help ensure that regulatory changes do not remain on paper, but translate into cleaner, more defensible procurement processes.

8. Invest in People: Training, Capability and Culture

Regulatory frameworks are only as effective as the people implementing them. A significant part of staying ahead of change is building capability and the right culture in your procurement and finance teams.

8.1 Role-Specific Training

Generic “legal update” workshops are rarely enough. Instead, design training that is:

• Role-specific – for example, separate sessions for demand planners, specification writers, bid committee members, contract managers and finance approvers
• Scenario-based – using realistic case studies and examples to explore what the new rules mean in practice
• Linked to accountability – reinforcing that non-compliance has real consequences for individuals and institutions, as highlighted in constitutional jurisprudence and guidance on the standard of care for procurement officials.

Training should cover not only what has changed, but also why it matters – for governance, service delivery, public trust and personal accountability.

8.2 Procurement as a Profession, Not an Administrative Function

The evolving regulatory landscape is pushing procurement towards becoming a recognised professional discipline, with:

• Role-specific – for example, separate sessions for demand planners, specification writers, bid committee members, contract managers and finance approvers
• Scenario-based – using realistic case studies and examples to explore what the new rules mean in practice
• Linked to accountability – reinforcing that non-compliance has real consequences for individuals and institutions, as highlighted in constitutional jurisprudence and guidance on the standard of care for procurement officials.

Organisations that embrace this shift – by supporting professional registration, encouraging attendance at specialised procurement conferences and partnering with expert advisors – are better placed to interpret and apply regulatory change intelligently.

9. A Practical 90-Day Action Plan

To turn these ideas into action, consider the following 90-day plan as a starting point:

• Role-specific – for example, separate sessions for demand planners, specification writers, bid committee members, contract managers and finance approvers
• Scenario-based – using realistic case studies and examples to explore what the new rules mean in practice
• Linked to accountability – reinforcing that non-compliance has real consequences for individuals and institutions, as highlighted in constitutional jurisprudence and guidance on the standard of care for procurement officials.

By focusing on these steps, you will have moved from reactive compliance to proactive, structured readiness within three months.

Conclusion: From Compliance Burden to Strategic Advantage

Regulatory change in procurement is not going to slow down. The Public Procurement Act 2024, the ongoing refinement of preferential procurement, and the growing emphasis on transparency, data quality and anti-corruption measures signal a future in which procurement is ever more tightly scrutinised – by regulators, auditors, funders, the media and the public.

Organisations that see this purely as a compliance burden will always feel behind: scrambling to update policies after the fact, dealing with repeat audit findings, firefighting disputes and investigations, and missing opportunities for strategic sourcing and value creation.

By contrast, organisations that invest in a structured, forward-looking approach can turn regulatory vigilance into a strategic advantage:

• Procurement teams that are confident in the rules and able to explain them transparently
• Supplier bases that understand what is required and can participate fairly
• Governance structures that withstand scrutiny from courts, regulators and oversight bodies
• Data and systems that make compliance demonstrable rather than aspirational
• Leadership that can assure boards and stakeholders that public or corporate funds are being spent lawfully, efficiently and fairly

Duja Consulting’s work across forensic audits, probity reviews, procurement diagnostics and capacity building has shown that the organisations who win in this environment are not those with the thickest manuals, but those with clear structures, reliable data, well-trained people and a culture that treats regulatory compliance as non-negotiable.

If your organisation is looking to assess its readiness for the evolving procurement framework, interpret the implications of the Public Procurement Act, or strengthen its controls and assurance, Duja Consulting can help – from rapid diagnostics and policy refreshes through to probity reviews on high-risk tenders and targeted training for executives, procurement teams and bid committees.

Now is the moment to move from “coping with change” to staying ahead of it.

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