(1)(a) A procuring institution must set-aside a bid for a category of persons provided for in subsection (3) in accordance with the prescribed thresholds and conditions.
(b) The prescribed conditions referred to in paragraph (a) must include a minimum of potentially qualifying suppliers.
(2)(a) The Minister must, subject to this subsection, prescribe targets for set-aside referred to in subsection (1).
(b) The Minister must, within 30 days after the commencement of this section, consult the relevant Ministers for which categories of persons targets for set-aside must be prescribed.
(c) When prescribing targets, the Minister must take into account the applicable codes of good practice on black economic empowerment issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003).
(d) The Minister must, at least every two years after prescribing any target for set-aside, consult as envisaged in paragraph (b), and take into account the codes of goods practice referred to in paragraph (c), on proposed amendments to any target so prescribed and prescribing new targets.
(e) If no target for set-aside for a category of persons is prescribed in terms of paragraph (a), a procuring institution is not precluded from setting aside a bid for that category.
(3) Persons referred to in subsection (1) are limited to—
(a) black people;
(b) black women;
(c) women;
(d) black people with disabilities;
(e) people with disabilities;
(f) military veterans;
(g) persons referred to any of the paragraphs (a) to (f) within a geographical area;
(h) small enterprises owned by—
(i) black people;
(ii) black women;
(iii) women;
(iv) black people with disabilities;
(v) people with disabilities;
(vi) military veterans;
(vii) black people who are youth; or
(viii) youth;
(ix) persons referred to in any of the subparagraphs (i) to (viii) within a particular geographical area;
(i) small enterprises within a particular geographical area;
(j) small enterprises;
(k) co-operatives which consist of members who are black people; or
(l) co-operatives;
(m) co-operatives referred to in paragraph (k) or (l) within a particular geographic area.
(4)(a) Persons referred to in subsection (3)(a) to (h) must be owned by the relevant category in accordance with the prescribed percentages.
(b) Persons referred to in subsection (3)(a) to (j) must be owned by citizens of the Republic in accordance with the prescribed percentages.
(c) Persons referred to in subsection (3)(k), (l) and (m) must have members of the relevant category and citizens of the Republic in accordance with the prescribed percentages.
(5) A bid set-aside in terms of subsection (1) must be evaluated in terms of the prescribed criteria.
(6) This section applies with the necessary changes and as prescribed to a bid for an income-generating contract.