Is it working?

The law is in place (as gazetted) but not yet implemented. Therefore, the act's provisions are not active. However, it has been challenged by the Western Cape government and the City of Cape Town that in its current form it usurps the autonomy of provinces and municipalities by preventing them from adopting their own preferential procurement policies. As of May 2025, the Western Cape government and the City of Cape Town launched an application in the Constitutional Court seeking an order declaring that the act is unconstitutional and invalid. The public procurement framework must still be established and become operational. Questions remain as to whether this is sufficient to address tender-related corruption.

Actions

The legislation is not yet in effect, facing a court challenge. The public procurement framework must still be established and become operational. In November, finance minister Enoch Godongwana indicated the act's long-awaited regulations are nearing completion.

Are there plans?

Completed, the bill has been enacted. President Cyril Ramaphosa announced in the 2026 SONA that "regulations for the Public Procurement Act will be finalised by mid-2026" to overhaul the procurement system.

Is it on the agenda?

Aligned with Zondo Commission’s recommendation/proposal. It forms part of the Procurement Policy Framework and National Treasury's Strategic Plan (2025-2030).

Goals

The legislation aims to consolidate the country's fragmented public procurement systems by establishing a central Public Procurement Office (PPO) within National Treasury through which all procurement by state entities must be funnelled. An important aspect is it cuts out the "middleman" which often facilitated corruption. Furthermore, the act mandates that a provincial treasury must, within its province, monitor and oversee the implementation of the procurement function by procuring institutions.

Documents

• Document One

Departments / Govt Institutions

National Treasury