The proposed Public Procurement Bill (PPB) was the center of contentious debate in the National Assembly in South Africa. Finance Minister Enoch Godongwana supported the bill, which could potentially increase the official BEE (Black Economic Empowerment) premium cap to 66%, sparking criticism from the DA Finance Shadow Minister Dion George.

George indicated that the International Monetary Fund cautioned South Africa on the potential cost impacts of preferential procurement. Government procurement exceeded R1.1 trillion in the last 12 months, making the bill’s potential costs highly significant. Potential ramifications of the bill, particularly for poor black individuals in a struggling job market, were discussed but remained unaddressed.

Godongwana challenged the attitudes towards BEE and the advancement of black people. Practical questions regarding the cost of BEE and its impact on employment rates, however, were not answered in the debate.

Letters to Treasury Director General Ismael Monomiat requesting calculations on the cost of BEE in state procurement went unanswered. Likewise, attempts to gain information about the fiscal cost of BEE from Treasury’s written feedback were unfruitful. The word ‘unemployment’ was also left unmentioned throughout Treasury’s feedback and Godongwana’s speeches.

The Public Procurement Bill, particularly its potential economic and unemployment impacts, remains a disputed piece of potential legislation.