John Warlock
In 2025, the South African government launched the Inclusive Procurement Scheme, a flagship initiative to accelerate economic empowerment by fast-tracking Public Procurement Act regulations and allocating 40% of public procurement contracts to women-, youth-, and disabled-owned businesses.
Designed to redress historic exclusion, the scheme promotes entrepreneurship, supplier diversity, and equitable participation in public contracting.
Strategic Objectives & Policy Pillars
Key aims of the initiative include
- Fast-tracking regulations under the Public Procurement Act 28 of 2024, ensuring preferential access to government contracts for qualifying enterprises.
- Enforcing a mandatory 40% procurement quota for businesses owned by women, youth, and persons with disabilities.
- Rolling out capacity-building through programs such as WEEP, WECONA, and skills training targeting over 6,000 women-led enterprises by 2024.
- Creating a socio‑economic empowerment index to monitor participation and inclusion across sectors.
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Who Qualifies for the Scheme?
Eligibility covers
- Businesses majority-owned by women, youth (18–35), or persons with disabilities.
- Enterprises formally registered in South Africa, ideally with BBBEE certification.
- Firms capable of supplying goods or services to public entities under specified thresholds.
- Participation is voluntary but benefits from preferential scoring and access.
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What Support Is Offered?
| Support Component | Benefits for Eligible Businesses |
|---|---|
| Preferential scoring in tenders | Bonus points awarded under procurement criteria |
| Reserved set-aside contracts | Simplified procurement channels for qualifying enterprises |
| Capacity-building training | Grant-funded workshops on tender preparation and business skills |
| Access to transformation fund backing | Support via entities like IDC, PIC, NEF targeted at women-owned firms |
Additional backing includes a R20 billion Transformation Fund launched in 2025 to support inclusive business growth.
How It Works — Process Guide
1. Register & Certify
Businesses should
- Ensure majority ownership by qualifying persons.
- Obtain BBBEE certification if applicable.
- Register on the Central Supplier Database (CSD).
2. Monitor Tenders
Watch for set-aside or specific-goal tenders issued by national and provincial government departments.
3. Submit Bid Documentation
Prepare tender responses according to official requirements, highlighting ownership credentials, BBBEE level, and socio-economic impact.
4. Access Support Services
Attend government or DWYPD-sponsored training for tender writing and business readiness.
Implementation Timeline & Targets for 2025
| Milestone | Target/Milestone in 2025 |
|---|---|
| Procurement quota activated | 40% of public procurement contracts reserved |
| Regulatory fast-tracking | Final regulations due in mid‑2025, effective immediately |
| Training & capacity building | Minimum of 6,000 women-led businesses trained |
| Transformation Fund launch | R20 billion annually over five years |
Benefits & Impact in 2025
- High reward for inclusive procurement: Women-, youth-, and disabled-owned SMEs now have guaranteed access to public contracts.
- Increased competitiveness: Training initiatives aid businesses to meet tender requirements and scale sustainably.
- Macroeconomic inclusion: Improves diversity and equitable wealth distribution in public supply chains.
- Aligns with broader transformation goals under Broad-Based Black Economic Empowerment (BBBEE) and UN-aligned gender inclusion frameworks.
Risks & Policy Challenges
- Implementation bottlenecks: Some provinces may face delays rolling out regulations; DWYPD is monitoring tight enforcement.
- “Fronting” risks: Strict verification needed to prevent misuse of ownership status for procurement advantage.
- Capacity constraints: Smaller enterprises may still struggle without adequate bid readiness and resource support.
The Inclusive Procurement Scheme 2025 offers a landmark opportunity for women-, youth-, and disabled-owned businesses to access public contracts and grow sustainably.
With 40% mandatory procurement targets, regulatory fast-tracking, and robust training support, this initiative aims to transform South Africa’s public sector supply chain and drive economic inclusivity.
Eligible entrepreneurs should register on official platforms, look out for set-aside tenders, and engage with training bodies to capitalize on the scheme.
Frequently Asked Questions (FAQs)
1. What is the 40% procurement quota?
Government entities must reserve 40% of contract spend for businesses majority-owned by women, youth, or persons with disabilities under the 2025 Act regulations.
2. Do I need a BBBEE certificate to qualify?
While major procurement policies are anchored in Broad-Based Black Economic Empowerment, eligibility emphasizes actual ownership. However, a BBBEE scorecard enhances credibility and scoring.
3. Where can businesses get training to compete for tenders?
Government-backed initiatives such as WEEP and WECONA, along with DWYPD programmes, offer specialized training to help businesses prepare proposals and meet procurement standards.