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Preferencial Procurement Regulations 2022

Following the Constitutional Court decision in Minister of Finance v Sakeliga NPC 2022 JDR 0405 (CC), where the court confirmed the extension of the validity of the Preferential Procurement Regulations, 2017 until January 2023, the Minister of Finance has issued new Preferential Procurement Regulations, that will come into effect on 16 January 2023, in replacement of the 2017 Preferential Procurement Regulations.

Under the new Preferential Procurement Regulations, organs of state now exclusively have the obligation to design and prescribe specific goals that fulfil the requirements of section 2(1)(d) of the Preferential Procurement Policy Framework Act, 5 of 2002 (PPPFA), such as contracting with persons or categories of person that were historically disadvantaged.

As the current regulatory regime that prescribed preferential procurement to exempted micro enterprises and qualifying small enterprises owned by historically disadvantaged people draws to an end, the private sector remains keen to find out the approach that will be adopted by organs of state in complying with the requirements of section 2(1)(d) of the PPPFA.

The new Preferential Procurement Regulations can be accessed on the link below: Here