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Call for Comment: Draft Statement 400 of 2026 - Development of Broad-Based Black Economic Empowerment Codes of Good Practice

February 10, 2026

The Department of Trade, Industry and Competition (the dtic) has published Draft Statement 400 of 2026 : General Principles for Measuring Enterprise and Supplier Development.pdf for public comment. 

Given the far-reaching implications of the proposed amendments for measured entities, BUSA intends to make a consolidated submission reflecting organised business views. Your written inputs are therefore critical to ensure that practical challenges, unintended consequences, and sector-specific impacts are adequately captured. 

The key proposed amendments include, among others:

  1. Introduction of Clause 2.4 – Transformation Fund , requiring an annual contribution of 3% of Net Profit After Tax , with a weighting of 20 points , as an alternative to existing ESD contributions. Measured entities may still score points for implementing traditional Enterprise Development and/or Supplier Development initiatives.

  2. Introduction of a 15% procurement target each for 100% black-owned EMEs and 100% black-owned QSEs .

  3. Introduction of a 25% procurement target for 100% black-owned enterprises .

  4. Introduction of a 25% procurement target for enterprises that are 51% to 99% black-owned .

  5. Introduction of a 12% procurement target for 100% black women-owned enterprises .

  6. Increase in the procurement compliance threshold to 10% for bonus points linked to companies that are 100% owned by Designated Groups .

  7. Increase in bonus points for measured entities that support ESD beneficiaries and/or 100% black-owned QSEs or EMEs through first-time supplier contracts of at least three years .

  8. Additional bonus points for enabling average annual turnover and job-creation growth of at least 10% over a three-year contract period for all onboarded first-time suppliers.

  9. Clarification that measured entities must submit a needs analysis, performance metrics (outputs and outcomes), and an annual Monitoring and Evaluation report , all of which must be verified prior to the recognition of points.

  10. Revision of the ESD Recognition Matrix . 

Members are requested to submit written inputs highlighting operational, compliance, cost, and implementation concerns, as well as any proposed alternatives or refinements. 

Please submit your inputs no later than 25 February 2026 to siwakhile@amcham.co.za