South Africa Court Rejects Lawyers’ Empowerment Code

Law: South Africa

A high court in Pretoria has set aside the minister’s decision to gazette a black-empowerment code for South Africa’s legal sector, according to News24 on Wednesday 7 October 2026. The ruling is a win for four large law firms that argued the code was flawed, and it leaves open what rules apply to the profession next.

What We Know

News24 reports that the Gauteng High Court in Pretoria reviewed and set aside Minister Parks Tau’s decision to gazette the B-BBEE Legal Sector Code. The court found that he did not exercise proper statutory discretion when he gazetted the framework.

The code was published in September 2024. Four firms, Bowmans, Webber Wentzel, Werksmans and Deneys, asked the court to review it, and the trade union Solidarity brought a separate application that was heard at the same time.

The case was heard in May 2026 by a full bench of three judges, Nicolene Janse van Nieuwenhuizen, Selemang Mokose and Annali Basson, according to Business Day. Advocate Tembeka Ngcukaitobi, for some of the firms, argued that there was no evidence the minister had considered the policy before signing it.

What the Code Required

B-BBEE is South Africa’s policy of scoring companies on how far they include black South Africans in ownership, management, skills and supply chains. The legal profession had used the general codes until the sector code replaced them, according to IOL.

IOL reports that the sector code set a target of 50% black ownership within five years, up from 25% plus one share, with half of that held by black women. It also lowered the size at which firms count as large, to annual revenue above R25 million for attorneys (about US$1.5 million) and R15 million for advocates (about US$0.9 million).

Under the general codes the large-firm line was R50 million (about US$3.0 million). The sector code took effect on publication with no transition period.

Firms had to meet at least 40% of the sub-minimum targets in key areas such as ownership, skills and supplier development, or face a one-level downgrade in their B-BBEE status. Certificates already issued under the general codes stayed valid until they expired, according to IOL.

The Arguments in Court

The firms argued that the B-BBEE Act requires the minister to issue a national strategy before a sector code is made, and that no valid strategy existed. They also argued that the code exempted more than 95% of legal practices.

The minister’s side said the strategy was published on the department’s website before the code was gazetted. Counsel also argued that even a missed step would not justify setting the code aside.

Supporters of the code included the Justice Minister, the Legal Practice Council and groups of black lawyers, according to IOL and Sowetan. They argued that the legal sector had never had its own transformation policy.

What Is Not Known

We have not seen the full judgment, so we cannot say how the court dealt with the firms’ other arguments or with Solidarity’s application. It is also not reported whether the order takes effect at once or whether the government will appeal.

It is unclear whether the general codes apply again in the meantime, or whether the minister can issue the code again after fixing the process. The firms had asked that the general codes continue while a lawful sector code is prepared, according to earlier coverage of the hearing.

What It Means for US Readers and Investors

US companies that use South African law firms, or that plan local ownership deals, depend on B-BBEE ratings for public contracts and licences. A ruling like this adds legal uncertainty about which rules apply to their advisers, though the wider B-BBEE system is untouched.

The case also shows that South African courts review how ministers make empowerment rules, not only what the rules say. US investors should watch whether the department appeals or re-issues the code through a corrected process.

More: South Africa news in English, every day from The Rio Times.

Frequently Asked Questions

What did the Pretoria court decide?

The Gauteng High Court in Pretoria reviewed and set aside the minister’s decision to gazette the B-BBEE Legal Sector Code. It found he did not exercise proper statutory discretion, according to News24.

What is the Legal Sector Code?

It is a sector-specific B-BBEE framework for law firms and advocates, gazetted in September 2024. It set ownership, management and briefing targets for black practitioners.

Who challenged the code?

Bowmans, Webber Wentzel, Werksmans and Deneys challenged it, and the trade union Solidarity brought its own application. The case was heard in May 2026.

Does this end B-BBEE rules in South Africa?

No, because the ruling concerns the legal sector code only. The wider B-BBEE system for other sectors is not affected.

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