Green Procurement in South Africa and the Southern African Region.

1. Growing Alignment between ESG and Socio-Economic Goals

In South Africa, sustainability in procurement is often not viewed at through an environmental lens. Instead, procurement is being positioned as a driver of inclusive economic development. Many businesses are starting to align ESG (environmental, social, governance) goals with frameworks such as Broad-Based Black Economic Empowerment (B-BBEE). 2

This means that procurement decisions often account not only for carbon emissions or resource use, but also for the social impact: enabling black-owned SMEs to participate, fostering equitable supply chains, and supporting local businesses. This dual focus — planet and people, gives procurement an expanded role in shaping the transition to sustainability. – 3

2. Institutionalising Green Public Procurement (GPP)

The recently updated public procurement legal and policy framework in South Africa provides greater scope to integrate environmental and social considerations into procurement decisions — creating potential for significant impact if fully leveraged. – 4

As public-sector procurement embraces sustainable public procurement (SPP), private-sector players will likely align more proactively to avoid being left behind — especially suppliers who want to remain competitive and eligible for government contracts. – 5

3. Integrating ESG Metrics into Supplier Selection and Lifecycle Management

More and more companies in South Africa are embedding ESG criteria into their procurement scorecards, supplier audits, and even broader supply-chain governance. Procurement is being repositioned as a strategic function that can drive progress toward the United Nations’s Sustainable Development Goals (SDGs). – 6

Suppliers are no longer evaluated only on price or delivery; their environmental footprint, labour practices, resource efficiency, and community impact are becoming relevant decision-making factors. This also means procurement teams need new skills — to assess ESG disclosures, audit supplier practices, and manage supplier development initiatives. – 7

4. Adoption of Circular Economy and Eco-Conscious Manufacturing Within Supply Chains

Across industries, there’s growing momentum toward more sustainable manufacturing practices, waste reduction, re-use of materials, and circular economy thinking. South African manufacturers supplying to conscious buyers are increasingly offering recycled content or designing for easier recycling. – 8

For procurement practitioners, this opens a strategic opportunity: sourcing from suppliers whose business models already incorporate sustainability can reduce raw-material dependency, lower environmental impact, and improve brand reputation — while potentially yielding long-term cost advantages.

5. Recognition That Sustainable Procurement Is Risk Management & Value Creation

Rather than viewing green procurement as a “nice-to-have,” many South African firms now regard it as essential for long-term resilience: managing carbon risk, energy price volatility, supply-chain disruption, reputational risk, and evolving regulatory requirements. – 9

The more progressive organisations are seeing sustainable procurement as a source of competitive advantage — differentiating their supply chain as more transparent, ethical, and future-proof. For many CPOs (chief procurement officers), sustainable procurement is becoming a strategic balancing act between ESG commitments, cost efficiency, and social equity. – 10

What Does This Means for Procurement Strategy & Planning in 2026 (for South/Southern Africa)

These trends translate into several strategic imperatives for 2026:

• Adopt a dual-value procurement framework: Evaluate suppliers not only on cost and quality, but on ESG, sustainability, and social-impact metrics (e.g. B-BBEE compliance, local economic development, waste/carbon footprint).
• Build supplier-development capabilities: Many smaller or emerging suppliers (especially SMEs) may lack the systems or resources to meet ESG requirements — but engaging them and helping build their capacity can unlock value while meeting social-inclusion goals.
• Embed ESG metrics in contracts and supplier-lifecycle processes: Supplier selection, audits, renewals and performance evaluation should incorporate environmental and social criteria.
• Prioritise green and circular-economy suppliers: Encourage sourcing from suppliers with sustainable manufacturing, recycled content, waste minimisation and resource-efficiency practices.
• Leverage public procurement policy shifts: For organisations dealing with government or public entities, align procurement processes with emerging green public procurement (GPP) standards — anticipate tenders that weigh ESG heavily.
• Invest in procurement governance & skills: Ensure procurement teams have the knowledge, tools and governance frameworks to assess ESG risks, audit suppliers, measure impacts, and manage supplier development.
• Plan for long-term resilience and compliance: As regulation (e.g. under national climate legislation) tightens and international buyers demand ESG compliance, sustainable procurement isn’t just a nice-to-have — it’s strategic risk management.

Final Thoughts

For organisations in South Africa and Southern Africa, 2026 presents a compelling opportunity for procurement to transcend its traditional role of cost- and supply-focus to become a driver of sustainable development, social equity, and long-term resilience.

But realising that opportunity requires a shift — from transactional procurement to strategic sourcing with ESG and social-impact baked in. For procurement leaders and consultants alike, the task is clear: build frameworks, skills and partnerships that enable green, inclusive, and future-proof supply chains.

Sources

1. https://www.it-online.co.za/2025/11/05/the-rise-of-sustainable-procurement/

2. https://www.bee.co.za/post/businesses-urged-to-align-esg-and-b-bbee-for-sustainable-procurement-success?

3. Sustainable Public Procurement as a Policy Tool in South Africa

APLU Conference 11 September 2023
https://wiser.wits.ac.za/sites/default/files/SPP%20as%20a%20Policy%20Tool%20Short%20Paper%2022082023.pdf? 4. https://www.iisd.org/system/files/2025-02/green-public-procurement-south-africa.pdf?

5. Sustainable Public Procurement as a Policy Tool in South Africa

APLU Conference 11 September 2023
https://wiser.wits.ac.za/sites/default/files/SPP%20as%20a%20Policy%20Tool%20Short%20Paper%2022082023.pdf

6. https://supplynetwork-africa.co.za/beyond-cost-savings-how-procurement-can-drive-social-change-in-south-africa/?

7. https://www.sapics.org/news/addendum-esg-south-african-procurement-balancing-act-cpos?

8. https://apexpolymers.co.za/the-year-2025-reshaping-sustainable-manufacturing-in-south-africa/? 9. https://it-online.co.za/2025/11/05/the-rise-of-sustainable-procurement/? 10. https://www.sapics.org/news/addendum-esg-south-african-procurement-balancing-act-cpos