Agency records 49% of available procurement spend with SMMEs and designated groups against a 45% annual target, and moves to build supplier capability beyond compliance
Pretoria, 02 September 2026 — The State Information Technology Agency (SITA) is strengthening its contribution to inclusive economic growth through its procurement and Enterprise Supplier Development (ESD) programmes, with more than R183 million in SMME spend recorded in the first four months of the 2026/27 financial year. This places the Agency ahead of its annual transformation target and reflects a deliberate intent in how it uses its procurement footprint.
For the period 1 April to 31 July 2026, SITA recorded 49% of its available procurement spend with SMMEs and designated groups, against an annual target of 45%. Designated groups include Black-owned businesses, women-owned businesses, youth-owned businesses and enterprises owned by persons with disabilities.
Total supplier spend for the period was R1.622 billion, of which R601.365 million was available spend, the portion of procurement against which the Agency’s transformation targets are measured. SMME spend within this amounted to R183.250 million, made up of R173.834 million in direct spend and R9.416 million channeled indirectly through SITA’s supply chain.
“Procurement is the most immediate lever a state agency has to change who participates in the economy. Every contract SITA awards is a decision about who gets to help build South Africa’s digital infrastructure, and we are deliberate about widening that circle,” said the Head of Corporate Affairs at SITA, Tlali Tlali. “Being ahead of target four months into the year matters. The more important question is whether the businesses we bring in are still standing in three years’ time.”
The spend with Black-owned businesses reached R286.575 million during the period, including R86.669 million with Black women-owned enterprises. This performance reflects a broader commitment to expanding participation by Black-owned businesses.
SITA’s Enterprise Supplier Development (ESD) programme is being expanded to address a persistent gap: SMMEs that secure work but lack the systems, capacity or working capital to deliver at scale and grow beyond a single contract. The Agency is developing a structured SMME training and supplier engagement model to support enterprises already in, or entering, its supply chain, in line with its B-BBEE enterprise and supplier development objectives.
The Agency is also building a skills pipeline into the ICT sector. Current initiatives include training for unemployed youth, MICT SETA internships, a learnership delivered in partnership with eDeaf for Deaf young people, an Esri South Africa bursary and participation in the Youth Employment Service (YES) programme. Together these have supported 40 young people at an investment of approximately R498 000 to date, with further intakes planned during the financial year.
“We want to move beyond a model where supplier development is treated as a compliance requirement,” said Tlali. “Our objective is a stronger, more diverse and more sustainable ICT supplier ecosystem. That means creating opportunities, but it also means helping businesses build the capability to take up those opportunities and hold their place in the value chain.”
SITA is taking this engagement into the provinces. Following the Mpumalanga SMME Supplier Engagement Day, the Agency has received expressions of interest from other provinces, and a North-West province SMME supplier engagement is being prepared as part of an ICT Summit scheduled for October 2026. The sessions are designed to give suppliers direct insight into SITA’s procurement processes and requirements.
SITA will maintain its focus on supplier development, skills development and broader participation by designated groups across its procurement ecosystem for the remainder of the 2026/27 financial year.
“The 49% is a milestone, not a destination,” Tlali concluded. “Our focus now is on depth, making sure that procurement opportunities become sustainable enterprises, real skills and lasting jobs, and that the growth of South Africa’s digital economy is shared by the people and businesses who help build it.”
About SITA
The State Information Technology Agency (SITA) is a state-owned company established in terms of the State Information Technology Agency Act, 1998 (Act No. 88 of 1998), as amended. SITA provides information and communications technology services to government departments and public bodies at national and provincial level, with the objective of improving service delivery to the public through the effective use of technology.
