Small Business

SMME Tenders South Africa 2026: Government Opportunities for Small Businesses

ProTenders Editorial Team
2 February 2026
8 min read min read

SMME Tenders South Africa 2026: Government Opportunities for Small Businesses

The South African government has committed to directing 30% of procurement spending to SMMEs, cooperatives, and township enterprises. This represents over R200 billion in annual opportunities for small businesses.

What Qualifies as an SMME?

CategoryEmployeesAnnual Turnover
Micro1-5Up to R200,000
Very Small6-10R200,000 - R500,000
Small11-50R500,000 - R32 million
Medium51-200R32 million - R64 million

Government Programs Supporting SMME Procurement

1. The 30% Set-Aside Directive

National Treasury requires 30% of appropriate contracts for EMEs, QSEs, women-owned, youth-owned, and township enterprises.

2. Contract Splitting

Large contracts are increasingly split into smaller lots to enable SMME participation.

3. The 30% Subcontracting Requirement

Contracts above R30 million must subcontract 30% to EMEs/QSEs.

Types of Set-Aside Tenders

Look for tenders requiring:

  • Only EME/QSE suppliers may bid
  • Reserved for women-owned businesses
  • Youth-owned enterprises only
  • Township-based suppliers preferred

Building Your SMME Tender Profile

Essential Registrations

  1. CIPC Registration
  2. CSD Registration
  3. SARS Tax Compliance
  4. B-BBEE Certificate or EME Affidavit

Financing Options

  • SEFA loans (R50,000 to R5 million)
  • NEF funding for black-owned businesses
  • IDC for manufacturing sectors
  • Purchase order financing

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