A South African court has overturned a Black economic empowerment code for the legal profession, ruling that the government failed to properly justify its approval of measures designed to address racial imbalances in the sector.
The Gauteng High Court, in a ruling on Wednesday, did not determine whether the code was constitutional or challenge its objectives of promoting racial transformation. Instead, it found that Trade Minister Parks Tau had failed to conduct an independent assessment or provide adequate justification for approving the measures, Reuters reported on Thursday.
The code, promulgated in 2024, introduced sector-specific targets for Black ownership, management and procurement in the legal profession. It required large law firms to achieve 50 per cent Black ownership within five years, including 25 per cent ownership by Black women.
Four prominent commercial law firms — Deneys Reitz, formerly Norton Rose Fulbright South Africa, Bowmans, Webber Wentzel and Werksmans — challenged the code alongside trade union Solidarity.
Reacting to the judgment, Solidarity Chief Executive Dirk Hermann described the outcome as “a huge victory over the government’s reckless racial policy”.
A spokesperson for Tau did not immediately respond to a request for comment.
The court set aside the minister’s approval of the code and referred the matter back to him for reconsideration. It said Tau was required to independently determine whether the code, including its departures from the general Black economic empowerment rules, was justified before deciding whether to approve it.
The judgment represents a setback for the government’s efforts to accelerate racial transformation in one of South Africa’s most influential professions. However, it does not invalidate the country’s broader affirmative-action framework.
Supporters of the code have argued that targeted measures remain necessary to address racial disparities in the legal sector. Although junior-level legal practice has become more diverse, Black lawyers remain underrepresented in senior leadership positions, ownership and access to high-value legal work.
The ruling comes amid growing political and legal scrutiny of policies intended to address the legacy of white-minority rule in South Africa, including criticism from US President Donald Trump.
