Thousands of small businesses risk being excluded from government tenders if they fail to update their records on the Central Supplier Database (CSD).
The Western Cape infrastructure department has given all suppliers until 31 August 2025 to upload valid proof of physical address and ensure their company ownership details are correct and up to date on the CSD.
This follows a notice issued by the National Treasury, which came into effect on 1 August 2024.
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The Central Supplier Database, which was introduced by the National Treasury in 2016, is a centralised online platform that maintains a database of all suppliers eligible to provide goods and services to South African government entities.
From municipalities to national departments, all organs of state now rely on the CSD for verified supplier information before awarding contracts.
“This self-registration application represents an expression of interest from the supplier to conduct business with the South African government,” states the National Treasury on its official website.
“Once submitted, your details will be assessed for inclusion on the CSD.”
However, registering once is not enough.
Suppliers must regularly update their contact details, tax clearance status, bank information and proof of business address to remain in good standing.
Failing to do so can lead to deactivation, effectively locking the business out of the government procurement system.
“We’ve seen hundreds of township and rural suppliers lose out on opportunities just because they didn’t update their CSD profiles,” said Nomfundo Mbele, a supply chain advisor with the Small Enterprise Development Agency (SEDA).
“The system assumes you are no longer operational if your documents expire.”
Under the new rules, suppliers must upload a valid PDF proof of address not older than three months for each listed location.
Accepted documents include utility bills, bank statements, TV licences, insurance policies, retail accounts or official letters showing the business address.
These documents ensure the supplier’s existence, compliance and physical location are verified, helping prevent fraud and duplication.
However, many businesses have either not submitted or have incorrectly submitted ownership details to the Companies and Intellectual Property Commission (CIPC).
Since the CSD and CIPC systems now cross-check ownership data automatically, inconsistencies may lead to removal from the database.
Companies must ensure their ownership details match on both platforms by the August deadline to avoid suspension.
For many small and rural suppliers, however, compliance is easier said than done, with a lack of digital tools and poor communication from the government.
“We never knew that we could apply for contracts, we just saw big business getting tenders all the time,” said Shonisani Matiba, owner of Shoni M Cleaning in Thohoyandou, Limpopo.
“I have always wanted to apply for local municipal cleaning contracts, but when we go to ask, they just say it’s online,” she said.
According to a National Treasury update in July 2024, 11% of suppliers registered on their CSD were marked inactive due to incomplete or outdated documents, with micro and small enterprises hardest hit.
Business development experts say this speaks to a larger digital bureaucracy reality for small businesses.
“The CSD system is noble, but the practical implementation needs greater outreach,” said Busisiwe Mokoena, an SMME advisor in Limpopo.
“Government needs to invest in training and communication to make sure these small players are not left behind.”
Meanwhile, the advice for SMEs remains clear, update or be deactivated.
