South Africa Enacts Key Laws on Climate, Procurement, and Small Business

On Tuesday, July 23rd, President Cyril Ramaphosa enacted three critical pieces of legislation, shaping South Africa’s future in climate action, public procurement, and small enterprise support. These laws include the Public Procurement Act, the Climate Change Act, and the National Small Enterprise Amendment Act.

The Public Procurement Act aims to overhaul South Africa’s procurement processes to prevent corruption and improve transparency. The act establishes a unified framework for public procurement, applicable to all government departments and public entities. This legislation emerged from the findings of the State Capture Commission, which revealed extensive corruption facilitated by flawed procurement systems. Presidential spokesperson Vincent Magwenya emphasized that the Act addresses systemic issues and aims to “combat corruption, ensure efficient, effective, and economic use of public resources.”

The Climate Change Act is South Africa’s first comprehensive law dedicated to tackling climate change. It mandates emission reduction targets across major sectors, including agriculture, transport, and industry. The law requires each municipality to develop adaptation plans and establish a carbon budget system for large emitters. This act aligns South Africa’s policies with its commitments under the Paris Agreement, aiming to transition the nation to a low-carbon, climate-resilient economy. President Ramaphosa noted that this law “enables the alignment of policies that influence South Africa’s climate change response,” ensuring a coherent approach to mitigating climate impacts.

The National Small Enterprise Amendment Act consolidates support for small and medium-sized enterprises (SMEs) through the creation of the Small Enterprise Development Finance Agency. This new entity merges various existing agencies, providing a streamlined support system for SMEs. The act also introduces the Small Enterprise Ombud Service, which will handle complaints and ensure fair treatment of small businesses. This legislation aims to enhance the business environment for SMEs, encouraging broader economic participation and growth.

These new laws represent a significant step forward in South Africa’s governance, addressing long-standing issues in public procurement, setting a framework for climate action, and providing robust support for small businesses. The enactment of these laws reflects the government’s commitment to transparency, sustainability, and economic inclusivity.