Tender Set-Asides and Preferences for Women & Youth-Owned Businesses 2025
Government procurement policy in South Africa increasingly recognises women-owned and youth-owned businesses as priority beneficiaries of preferential procurement. Set-aside provisions, targeted programmes, and enhanced BBBEE preference points for black women ownership create specific opportunities for qualifying businesses. Understanding how to correctly claim and verify these preferences is essential for maximising your competitive advantage in government tenders.
Preference Points for Women-Owned and Youth-Owned Businesses
Under the PPPFA (and the Public Procurement Act being phased in), the preference point system already rewards businesses with strong black ownership — and black women ownership specifically attracts additional points under the BBBEE scorecard. In the generic codes, black women ownership contributes to the ownership element, which can score up to 25 points out of 105 total. A business with significant black women ownership that is verified by a SANAS-accredited agency can demonstrate these points in the BBBEE certificate, which then translates directly into preference points.
Some government entities also apply set-aside provisions for specific tender categories. Set-asides are designations that restrict competition for a particular tender to specified categories of businesses — for example, businesses that are at least 51% women-owned, or businesses that are youth-owned (owner under 35). These are more common in categories such as catering, cleaning, and stationery supply at the municipal level, but are increasingly appearing in professional services and construction under the new Public Procurement Act framework.
- Black women ownership attracts additional BBBEE scorecard points
- Set-asides for women-owned businesses in qualifying tender categories
- Youth-owned businesses (owner under 35) can claim specific designations
- Ensure your BBBEE certificate correctly reflects women and youth ownership
SEDA and NYDA Support Programmes for Government Suppliers
The Small Enterprise Development Agency (SEDA) and the National Youth Development Agency (NYDA) both run programmes specifically designed to help women-owned and youth-owned SMMEs access government procurement. SEDA's business development support services include bid writing assistance, financial management training, and certification support. The NYDA operates a business fund and advisory service specifically for youth entrepreneurs seeking to enter government supply chains.
Both SEDA and NYDA have offices in all provinces and can provide direct support services to qualifying businesses. Registering with these agencies as a beneficiary also creates opportunities to be referred to government procurement opportunities through their networks. SEDA is also the accredited certification body for Qualifying Small Enterprises (QSEs) and Exempt Micro Enterprises (EMEs) that want a BBBEE affidavit rather than a full verification — which is free of charge and significantly faster than a full SANAS verification.
- SEDA offers bid writing support and business development services
- NYDA provides a business fund and procurement mentorship for youth
- SEDA issues free BBBEE affidavits for EMEs and QSEs
- Both agencies have provincial offices for in-person support
Frequently Asked Questions
How do I prove my business is women-owned for tender purposes?
Your BBBEE certificate (issued by a SANAS-accredited agency) should reflect the ownership structure of your business. Ensure that the certificate clearly states the percentage of black women ownership and control. The certificate, together with certified copies of shareholders or members' ID documents, is the standard proof. For EMEs and QSEs, an affidavit from a commissioner of oaths confirming ownership is sufficient.
What is the maximum age for a business to qualify as youth-owned?
National Youth Development Agency and most government definitions define youth as individuals between 18 and 35 years of age. For a business to qualify as youth-owned, the majority owner (51% or more) must be under 35. Check the specific tender conditions as some departments use their own definitions.