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High Court overturns government's Black empowerment code for legal sector

A South African court has overturned a Black economic empowerment code for the legal sector, ruling the government failed to properly exercise its powers when approving measures designed to tackle persistent racial disparities in the sector.

The Gauteng High Court did not rule on the code's constitutionality or racial transformation ambitions, finding instead on Wednesday that Trade Minister Parks Tau failed to independently assess and justify the measures approved.

The code set sector-specific targets for Black ownership, management and procurement, including a goal for large law firms to reach 50% Black ownership within five years, with Black women holding 25%.

The challenge was brought by four major commercial law firms, Deneys Reitz, formerly Norton Rose Fulbright South Africa, Bowmans, Webber Wentzel and Werksmans, alongside trade union Solidarity.

Solidarity Chief Executive Dirk Hermann called the ruling "a huge victory over the government's reckless racial policy".

Tau's spokesperson did not immediately respond to a request for comment on the ruling.

The ruling deals a setback to the government's efforts to accelerate racial transformation in one of South Africa's most influential professions, while stopping short of challenging the country's broader affirmative-action framework.

Supporters of the code have argued that such measures are needed because, despite greater diversity among junior lawyers, Black practitioners remain underrepresented in senior leadership, ownership and high-value work.

The ruling comes as South African policies designed to redress the legacy of white-minority rule face renewed political and legal scrutiny, including criticism from US President Donald Trump.

The court set aside Tau's approval of the code, which was promulgated in 2024, and referred the matter back to him for reconsideration.

It said the minister was required to independently assess whether the code and its departures from general Black empowerment rules were justified before deciding whether to approve it.

Mashatile urges National Dialogue committee to resolve governance issues ahead of elections

Deputy President Paul Mashatile has emphasised that the immediate priority of the National Dialogue steering committee must be to conclude all outstanding governance and participation issues, ahead of the upcoming local government elections.

Mashatile stressed that these foundational matters must be resolved to strengthen unity and solidify public confidence in the ongoing political and social process.

The Deputy President called on all sectors to immediately finalise implementation plans, mobilisation strategies and dialogue methodologies.

Mashatile met with the National Dialogue steering committee on Wednesday following months of intense grassroots mobilisation.

Mashatile welcomed a comprehensive progress report presented by the committee, noting that the groundwork laid over the past few months proves the vision of a citizen-led National Dialogue remains vibrant and continues to gain momentum across broader society.

The Deputy President highlighted several key sectoral milestones that have advanced the initiative, noting that the Youth sector has developed its own independent coordination framework, successfully resolved internal organisational matters, and officially commenced preparations for upcoming youth-led dialogue processes.

He said people with disabilities have successfully convened broad consultations and submitted critical, structured recommendations focused heavily on improving accessibility, participation, and social inclusion.

Civil society and faith-based groups have demonstrated a deep commitment to ensuring local communities are fully mobilised and structurally prepared to participate.

According to Mashatile, recently conducted pilot dialogues have yielded "invaluable insights".

He assured that the trial runs have shown that citizens across various demographics are willing to engage constructively with the complex challenges facing South Africa, frequently contributing highly practical, localised solutions.

Furthermore, the implementation of these pilots highlights the success of a "whole-of-society" operational approach.

Provincial governments and local stakeholders stepped forward to provide essential logistical support, seamlessly managing security coordination, transport arrangements, and necessary regulatory approvals, he added.

Mashatile issued a reminder that the National Dialogue ultimately belongs to the people of South Africa, rather than political frameworks.

"The conversations held thus far demonstrate that citizens are ready to engage honestly about the challenges facing our country and to contribute solutions," Mashatile pointed out.

"Our responsibility is to ensure that these voices are heard, that the process remains credible and inclusive, and that the outcomes translate into meaningful action that improves the lives of our people," he concluded.

Mistra warns fragmentation will make 2026 coalition talks complex

The Mapungubwe Institute for Strategic Reflection (Mistra) released the third edition of its Coalitions Barometer, on Wednesday, revealing a surprising decoupling between local political instability and municipal audit outcomes.

Despite a chaotic political landscape with routine Motions of No Confidence (MONCs) and shifting alliances since the 2021 local government elections (LGE), technical municipal structures have shown unexpected resilience, the institute said.

However, it warned that ahead of the upcoming LGEs, coalition politics is poised to become even more complex.

The central finding of its Coalitions Barometer report challenges the conventional narrative that political chaos directly degrades municipal administration.

Mistra noted that it was unable to find reliable evidence that coalition instability has a harmful effect on audit outcomes.

Data from the barometer indicated that municipalities experiencing high numbers of coalition collapses between 2021 and 2025 did not yield significantly worse audit results at the end of the period than those that remained stable.

"This could mean that local governments have done a better-than-expected job of insulating their technical capacity from instability at the political level. It could also mean that new variables or a different research design will be needed to understand how coalition instability affects the quality of governance – this is only a first look," the institute said.

The report highlighted a stark divergence between local political and national dynamics following the watershed 2024 national elections.

Mistra noted that while South African politics was radically reshaped by the formation of the Government of National Unity (GNU), the ANC and the DA remained somewhat untouched by this spirit of cooperation.

Mistra pointed out that the ANC and the DA have continued to actively topple each other via MONCs, even if the frequency of these manoeuvres has slowed down recently.

Mistra said the EFF's strategic reorientation toward the ANC stood as the most consequential local realignment since 2021.

"Yet, throughout this period, the EFF maintained its position in the opposition benches against the ANC within the National Assembly," the institute said.

Mistra explained that while media coverage often portrays hung councils as inherently dysfunctional, the Coalitions Barometer dataset painted a more complex picture of governance survival.

Out of 70 administrations initially formed in hung councils, 23 administrations remained in office in their original format by the data cutoff point, while 22 administrations suffered complete collapses.

Mistra explained that the remainder adapted by rebuilding coalitions around the same anchor party.

A true collapse, defined as the largest governing party losing office entirely, occurred in only 46 out of the 80 municipalities tracked, proving less common than public perception suggests, it said.

Mistra's findings highlighted how South Africa's major political parties navigate their constrained choices to advance distinct strategic interests, noting that the ANC demonstrated flexibility by occasionally agreeing to serve under a smaller partner's mayor, even when it is the largest member of the coalition.

It also highlighted that the DA is unwilling to cede executive mayoral leadership to smaller partners within its coalition structures, while the IFP successfully leverages its geographically concentrated support base to join and directly lead local governments.

Mistra said the EFF uses its geographically dispersed support base to project power and exert external influence over coalitions it does not directly lead.

Meanwhile, looking ahead to the upcoming LGEs Mistra emphasised that the ultimate driver of coalition politics is the electorate, not politicians.

It said voters have spent several election cycles dividing their support among an expanding fragment of parties...

South Africa to establish new Commission to oversee State firms

South Africa intends establishing a commission chaired by President Cyril Ramaphosa to coordinate the work of its State-owned firms after shelving plans to place them under the auspices of a holding company.

The new panel will review a national strategy that outlines what role the firms should play and ensure the government exercises ownership in a coherent and professional manner, Gwen Ramokgopa, a minister in the Presidency, said in a response to questions.

It will also standardise and strengthen governance practices, improve monitoring, and facilitate and coordinate the rationalisation and restructuring of the entities to eliminate duplication and improve efficiency, she added.

South Africa has scores of State entities, including power utility Eskom, logistics company Transnet, and South African National Roads Agency. A number of them have been dogged by mismanagement and financial problems, leaving them reliant on government funding to survive, which has spurred calls for improved oversight.

Some of those biggest firms fell under the Department of Public Enterprises, but it was disbanded in March 2025 and control was transferred to the relevant line ministries. A draft law was presented to parliament in 2024 that proposed the establishment of a management company that would oversee all State firms, but the legislation wasn't processed and it was withdrawn last month.

"Circumstances have changed considerably" since the law was first drafted, Ramokgopa said by phone.

"Once the bill had gone through stakeholder engagements and all the political parties had been consulted, we realised that the bill could not simply be rewritten, we needed to take it back to cabinet."

The new panel, which will be a hybrid of the type of structures established by China and Norway to oversee their State entities, can be established relatively quickly. In the interim, the Department of Planning, Monitoring and Evaluation is working on reform proposals for the State companies, including drawing up appointment and remuneration guidelines, and a framework for their rationalisation.

"Our constitution allows for the president to directly chair a commission using regulations, rather than the long process of creating a law," Ramokgopa said. ''If necessary, we can still create a management company down the road should we need to."

South Africa drops to 87 in global economic freedom ranking

South Africa has ranked eighty-seventh out of 165 countries and territories in the 'Economic Freedom of the World: 2026 Annual Report' (EFW), published by the Free Market Foundation (FMF) in conjunction with Canada's Fraser Institute.

The latest ranking reflects a further decline for South Africa, which previously hovered at eighty-third place, signalling an ongoing erosion of economic liberty.

With an overall absolute score of 6.63 out of ten, the data confirms that South Africa's economic freedom has been on a slow, downward trend since its peak in the year 2000, leaving the country less free today than it was at the turn of the century, FMF states.

"South Africa's drop to eighty-seventh place is a clear warning sign," says FMF senior associate and Cumberland University finance and economics professor Richard Grant.

"Historical data show unambiguously that countries with greater economic freedom are also more prosperous, with higher average incomes and lower poverty rates. Without widespread liberalisation, secure property rights and a reduction in government overreach, South Africa will continue to suffer from anaemic growth," he warns.

Economic freedom – the degree to which individuals are permitted to make their own decisions regarding commerce, employment and personal exchange – is fundamentally tied to national prosperity and personal freedom.

The EFW index measures these levels across five key areas: size of government; legal system and property rights; sound money; freedom to trade internationally; and regulation.

Out of all five categories, only sound money has avoided dropping below its level of 25 years ago. However, ongoing inflation pressures and currency depreciation continue to exacerbate broader economic challenges.

The report highlights several major structural weaknesses holding South Africa back, including excessive general government spending, which exceeds one-third of GDP and consistently exceeds tax revenues, as well as heavy regulation, particularly of the labour market.

"Governments cannot create lasting prosperity, but they can create the conditions within which people's lives and property are respected. Where people are free to pursue their own opportunities and make their own economic choices, they build prosperous, harmonious and resilient communities," says Grant.

The FMF continues to advocate for policy reforms under its Liberty First initiative, identifying key structural changes necessary to reverse South Africa's economic decline, restore investor confidence and foster growth.

Parties, union demand fuel price relief ahead of Budget

The unprecedented hikes in fuel prices have triggered widespread outrage, prompting political parties, civil society organisations, and trade unions to launch a unified call for immediate government intervention.

According to official data released by the Department of Mineral and Petroleum Resources, 93 octane petrol will surge by R3.12 a litre at midnight on Wednesday, while 95 octane will spike by R3.33 a litre.

Wholesale diesel prices are set to climb by between R2.84 and R3.24 a litre, illuminating paraffin will jump by R3.58 a litre, and LPGas will rise by 42c a kilogramme.

Organisations across the political and social spectrum have warned that these are not ordinary price adjustments, predicting a severe inflationary ripple effect that will hit agriculture, transport networks, small businesses, and already strained household budgets.

Accusing Finance Minister Enoch Godongwana of ignoring a September request for an official review, the civil rights organisation AfriForum has instructed its own research department to conduct a comprehensive audit of the country's fuel price composition.

The investigation will target the calculation, transparency, and efficiency of the General Fuel Levy, Carbon Fuel Levy, and the Road Accident Fund (RAF) Levy, the usage of collected funds and their economic impact on consumers and businesses and long-term structural policy reforms.

"The government is responding like a deer in the headlights of the energy crisis: paralysed with indecision. Someone must expose the root cause of the cost-of-living crisis and push for desperately needed reforms," stated AfriForum head of public relations Ernst van Zyl.

The DA identified the RAF levy as the primary driver of artificially inflated fuel costs.

However, DA spokesperson on Transport Dr Chris Hunsinger, noted that the RAF recently informed Parliament it faces a staggering R450-billion backlog in outstanding claims.

With a yearly revenue of just R47-billion, Hunsinger believes it would take over a decade just to clear the existing backlog, without factoring in new claims or operational costs.

The DA is demanding urgent legislative reform to replace the "bankrupt" entity and permanently remove its corresponding levy from the fuel price equation.

ActionSA has called on the National Treasury to use strong tax collection revenues to buffer citizens against the incoming shock.

ActionSA MP Alan Beesley pointed out that the South African Revenue Service collected R2.010-trillion in net revenue for the 2025/26 financial year –beating initial estimates by R24.7-billion.

ActionSA argued that this structural growth creates immediate fiscal space for a temporary reduction in the fuel levy.

The party announced plans to robustly challenge the upcoming Medium-Term Budget Policy Statement later this month, to ensure the Government of National Unity addresses waste and provides citizen relief.

Trade union UASA echoed the call for emergency relief measures, highlighting that low- and middle-income workers bear the brunt of rising transport costs.

UASA spokesperson Abigail Moyo acknowledged that while international oil volatility and global geopolitical tensions drive market rates, the domestic tax framework remains entirely within State control.

The union urged the State to act decisively before the socio-economic damage becomes permanently entrenched in the local economy.

Voters urged to 'rescue' Joburg from 'corrupt crime-council ecosystem'

Voters must use the upcoming local government elections to rescue Johannesburg from a "devastating crime-council ecosystem" that thrives on the city's decay, Centre for Development and Enterprise (CDE) executive director Ann Bernstein urged on Tuesday.

Launching the CDE's latest report, 'Time for Action – Corruption in Joburg', Bernstein warned that the dangers of "more of the same" over the next five years are immense.

The report is the fifth instalment in the CDE's 'Johannesburg Matters: Fixing South Africa' series.

According to the CDE, Johannesburg's decline is not only a result of weak administration or municipal incompetence.

Instead, it notes an entrenched network of political, business, and criminal interests has intersected local government, actively profiting from dysfunction.

"Infrastructure theft creates contracts for repairs. Water failures create demand for tankers. Dysfunction creates opportunities for emergency procurement. Those who benefit from failure therefore have an interest in perpetuating it," Bernstein said.

The report draws on simultaneous research commissioned from the Global Initiative Against Organised Crime.

This research exposes overlapping networks manipulating municipal procurement, senior appointments, and critical services such as electricity, water, and property.

Corrupt insiders allegedly collude with syndicates involved in infrastructure theft, sabotage, and building hijacking, using violence and intimidation to silence whistleblowers and investigators.

The CDE noted that this system has flourished owing to persistent political instability and weakened accountability structures.

ADVISED SOLUTIONS To dismantle it, the think tank proposed a comprehensive, systems-driven action plan focused on making corruption difficult, visible, and dangerous, noting the publication of information across the full lifecycle of major contracts—from bid scoring and beneficial ownership to invoices and proof of delivery—while using data to flag suspicious procurement patterns.

The CDE wants the introduction of open, merit-based processes for senior positions and municipal boards, featuring published criteria and professional assessments.

It said opportunities to profit from chaos must be reduced by installing infrastructure that is theft-proof, tightening controls on emergency contracts, and enforcing stricter supplier rules, while also mandating financial disclosures for high-risk positions and concentrating lifestyle audits where corruption risks are highest.

The CDE called for protecting the Group Forensic and Investigation Service from political interference, triggering automatic external referrals for sensitive probes, and tracking completed findings so they cannot be buried.

The CDE suggested that investigative resources must be concentrated on repeat suppliers and politically connected intermediaries. The CDE explained that the city must use disciplinary action, civil asset recovery, and contractual remedies alongside criminal prosecution to recover losses.

The think tank urged the establishment of secure reporting channels, protection for whistleblowers from retaliation, the creation of rapid-response safety mechanisms, and the consideration of financial rewards for information leading to successful recoveries.

Bernstein emphasised that the city's salvation lies in robust institutional design rather than vague ethical reforms.

"There is no shortage of ethical codes, procurement rules, financial regulations or declarations of principle... The problem is the gap between rules and outcomes," Bernstein said. "Johannesburg needs institutions capable of functioning even when powerful people have an interest in defeating them."

Read the report here.

NGO critiques local govt failures ahead of elections, launches voter tool

As South Africa approaches its local government elections, non-governmental organisation My Vote Counts (MVC) has launched a scathing critique of municipal service delivery, warning that decades of documented failures have allowed "local government rot" to fester despite a robust legislative framework.

In response to these persistent challenges, the civil society group has released its Municipal People's Analysis of Manifestos (M-PAM), a citizen-centred tool designed to empower voters to evaluate political promises against actual community needs and constitutional mandates.

The organisation emphasised that South Africa does not lack the legal infrastructure for good governance, as it possesses a solid legislative foundation designed to foster community-led governance, noting Section 152 of the Constitution which mandates that local government facilitate community participation in municipal affairs.

The 1998 White Paper on Local Government envisions citizens participating simultaneously as voters, consumers, and collaborative partners, while the Municipal Systems Act of 2000 legally obligates municipalities to receive petitions, provide notice of meetings, and report back to communities.

Despite these laws, MVC noted that maladministration, corruption, and inadequate participatory channels continue to lock citizens out of the decisions shaping their daily lives.

A key point of failure highlighted by MVC is the breakdown of ward committees. Intended as a vital communications link between residents and local government, these structures have largely become invisible, the organisation said.

"In practice, ward councillors and committees tend to be inaccessible and only visible during elections," the organisation stated, demanding that committee members be known to their constituents, host accessible meetings, and actively represent marginalised groups, including those in informal settlements and people living with disabilities.

While major political parties such as the ANC, DA, and EFF have outlined manifesto priorities such as water, electricity, housing, safety, and fighting corruption, MVC argued that actual delivery remains a deep concern.

M-PAM aims to disrupt this cycle by shifting the focus away from party rhetoric.

"Too often, election debates begin with what political parties are promising, rather than with what people are experiencing in their communities," explained MVC campaigns intern Thinam Mali.

"M-PAM starts from the other direction. It asks citizens to look at the services they receive, the challenges they face... and then use that knowledge to interrogate the promises being made to them."

MVC emphasised that marking a ballot paper is only the first step, adding that "true accountability" requires ongoing civic participation, including tracking local budgets and participating in consultations on municipal Integrated Development Plans.

Project lead Keamogetswe Seipato explained that local government elections dictate the precise conditions in which people live every day.

"Citizens therefore need more than promises. They need the information and tools to question those promises, assess performance and hold elected representatives accountable," Seipato said.

Click here to read the full report.

DA launches relentless final campaign push following surge in latest polls

The DA has announced it will work relentlessly over the next month to secure outright majorities in the City of Tshwane, City of Johannesburg, and the City of Cape Town municipalities, in its aim to "rescue" these key metros from what it terms the "chaos of unstable coalitions".

This aggressive campaign strategy comes in response to the latest News24/SABI poll, which the DA said confirms a significant, tangible shift in South African politics.

DA leader Geordin Hill-Lewis noted that the poll indicates that his party is now within five percentage points of the ANC nationally.

Furthermore, the data reveals that the DA is the most favourably viewed party among polled voters and holds the leading position across almost all surveyed metros, except for eThekwini.

Hill-Lewis stated that the poll awards the DA the best net favourability score among all the political parties tested.

He said in the City of Tshwane the DA leads the ANC by eight points, in the City of Johannesburg Helen Zille is currently leading the mayoral race and, in the City of Cape Town, voters expressed a markedly more positive outlook regarding the direction of their city compared with their views on the direction of South Africa as a whole.

The DA's message targets the recent history of hung councils. Hill-Lewis pointed out that South Africans have witnessed local councils collapse into instability and endless political bargaining.

He argued that these coalition governments spend more time fighting over political positions than fixing roads, collecting refuse, or keeping communities safe.

"We cannot afford another five years of that. That is why every DA supporter must turn out on election day. A clear DA majority means a stable government that can get straight to work delivering for residents," he said.

The party claims that a "genuine political shift" is occurring across South Africa, with more voters looking beyond the "old politics of decline" and moving toward a party with a proven track record of service delivery.

Despite the positive polling, Hill-Lewis maintained that the party remains cautious.

"We will take nothing for granted. For the remaining weeks of this campaign, we will fight for every ward, every community, and every vote — to win the strongest possible mandate to make South Africa work, for everyone," he concluded.

Court orders oral evidence over Dlamini-Zuma's ANC vote-buying claims

In a major legal development shaking the ANC, the High Court has directed that the defamation dispute between party veteran Dr Nkosazana Dlamini-Zuma and ANC secretary-general Fikile Mbalula must be resolved through oral evidence.

Following the decision, Mbalula clarified that the judgment does not validate the allegations made against him.

The legal fallout erupted after Dlamini-Zuma alleged, during an appearance on the African Renaissance Podcast hosted by former EFF MP Dr Mbuyiseni Ndlozi, that illicit financial influence heavily dictated internal ANC election outcomes.

Specifically, she accused Mbalula and Minister of International Relations and Cooperation Ronald Lamola of vote-buying at the ANC's fifty-fourth National Conference in 2017. Furthermore, she alleged that Mbalula "dished out money" at a clinic facility during the fifty-fifth National Conference in 2022 to secure his position and protect President Cyril Ramaphosa's leadership.

In response to the broadcast, Mbalula initiated defamation proceedings to clear his name, while simultaneously referring Dlamini-Zuma to the ANC Integrity Commission. Mbalula petitioned the court for an order compelling Dlamini-Zuma to issue an immediate retraction and apology.

Acting Judge HM Viljoen declined to grant the immediate order for retraction sought by Mbalula. Instead, the court determined that the core factual disputes, and the gravity of the allegations, are better evaluated through witness testimonies and oral evidence under oath.

Dlamini-Zuma, who has filed a formal notice of intention to oppose the suit, welcomed the ruling.

"The Court has made no such order [for retraction. It has directed instead that the central factual question be determined on oral evidence from us and witnesses. I remain committed to cooperating with the Court's processes," Dlamini-Zuma stated.

Standing firmly by her initial remarks, Dlamini-Zuma emphasised that the litigation serves as a necessary inflection point for the ruling party.

She argued that if the ANC is to genuinely achieve organisational renewal, it must confront the role of money in its elective processes.

Out of respect for the judiciary, she indicated she would no longer debate the merits of the case in the public domain.

Meanwhile, Mbalula also welcomed the court's decision to test the veracity of the statements under oath, noting that the judge did not dismiss the matter outright as Dlamini-Zuma had requested.

However, Mbalula was quick to clarify that the judgment does not validate the allegations made against him.

"The factual dispute remains to be determined after the evidence of the relevant witnesses has been tested under oath. I welcome that process. I have consistently maintained that the allegations are false and I have nothing to hide," Mbalula said.

He rejected any public commentary suggesting that the court's refusal to issue an immediate retraction served as a vindication of Dlamini-Zuma's claims.

"It has not," Mbalula clarified. "The Court has made no finding that I distributed money to delegates, bought votes or otherwise corrupted the electoral process at the ANC's fifty-fifth National Conference. I will allow the evidence to be tested in court, where it belongs, rather than conduct the remainder of this matter through public statements and political commentary."