South African court strikes down Black ownership code for law firms
The Gauteng High Court found the trade minister approved the rules without properly assessing them. It did not rule on whether the code itself is lawful, and sent it back to him.
Johannesburg — A South African court has struck down the Black economic empowerment code for the legal profession, ruling that the minister who approved it did not follow a proper process, Africanews reports, citing Reuters.
The Gauteng High Court found that the trade minister, Parks Tau, failed to carry out an independent evaluation of the code or to give reasons for approving it. The matter has been sent back to him to reconsider.
What the court did not decide
The judgment rests on procedure. The court did not rule on whether the code is constitutional, or on the goal of transforming the profession.
The code was published in 2024. It required large law firms to reach 50% Black ownership within five years, with Black women holding 25%. It also set targets for Black management and for procurement.
Who brought the case
The challenge was brought by four of the country's largest law firms: Deneys Reitz, formerly Norton Rose Fulbright South Africa, together with Bowmans, Webber Wentzel and Werksmans.
Dirk Hermann, chief executive of the trade union Solidarity, called the outcome "a huge victory over the government's reckless racial policy". Tau did not respond to requests for comment.
The wider argument
Black economic empowerment rules were introduced after the end of apartheid to widen ownership and management of an economy from which the Black majority had been excluded. The policy has come under growing legal and political pressure, including criticism from the US president, Donald Trump.
The minister may now reassess the code and issue it again, with or without changes.
This report is based on reporting by Africanews with Reuters.
