UPDATE:
The B-BBEE Legal Sector Code is now in effect!
Gazetted on 20 September 2024, the B-BBEE Legal Sector Code takes effect immediately. You can access a copy of the Codes here.
Our B-BBEE specialist consultant is available to assist clients with interpreting and applying the new Codes.
To address some immediate concerns:
• Existing B-BBEE affidavits or certificates that are still valid can continue to be used.
• New B-BBEE affidavits cannot be signed if your turnover exceeds R5 million, as this is now the threshold under the updated Codes.
The Legal Sector Code, issued under the B-BBEE Act, has now been approved. Here’s the media release from the Department of Trade & Industry for more details.
The Minister of Trade, Industry and Competition (the dtic), Mr Parks Tau has approved the Legal Sector Code in terms of section 9(1) of the B-BBEE Act. This administration has committed itself to accelerate transformation guided by the preamble of the Constitution of the Republic of South Africa which emphasises the need to correct the injustices of the past. This is captured in the statement of intent of the Government of National Unity (GNU).
The process of drafting the Legal Sector Code commenced in the previous administration led by the Minister of Justice and Constitutional Development together with the Legal Practice Council. This process has paved the way for the Sector to achieve its Broad-based Black Economic Empowerment (B-BBEE) objectives as listed below:
- Ownership target of 50% and black women ownership of 25% over 5 years.
- A Management control (executive and board participation), target of 50% representation of black practitioners and a target of 25% for black women practitioners, particularly as equity partners and associates.
- A Skills development target of 3,5% expenditure on training programmes for black candidates. The aim is also to ensure training in specialised skills for black legal practitioners, candidate legal practitioners and black junior advocates within the following designated categories: black women, black youth, black people with disabilities and black people from rural areas.
- A procurement target of 60% by the private sector, and there is a target of 80 % to be achieved through the specialised procurement scorecard applicable to the public sector. This will ensure fair and equitable access to specialised areas of law and complex matters when the state procures legal services from black Legal Sector Measured Entities (LSMEs) and ensure the sustainability of LSMEs.
In conclusion, the implementation of the Legal Sector Code is in line with the objectives of B-BBEE and will enhance inclusive growth in line with the transformation objectives of the Government of National Unity (GNU). There is strong evidence to support the transformation of the legal sector which this Sector Code will help accelerate. We look forward to the speedy implementation of the Legal Sector Code.
Issued by the Department of Trade & Industry