Welcome to this month’s edition of our Transformation Insights Newsletter, where we keep you updated on the latest developments in transformation, compliance, and business growth in South Africa.

In this issue, we cover:

1. Legal Sector Charter Updates
2. Rethinking Transformation
3. Employment Equity Submission Reminder
4. Our Upcoming Webinar with Proudly South Africa

Let’s dive in.

1. Legal Sector Charter Updates: What You Need to Know

The Legal Sector Code (LSC) was gazetted on 20 September 2024, followed by the establishment of the Legal Sector Charter Council (LSCC) in March 2025. The LSCC is now responsible for monitoring compliance, clarifying requirements, and supporting the implementation of the LSC within the legal sector.

These updates are important because they impact ownership, management control, skills development, and procurement in legal practices. Since the LSC is tailored specifically to the legal profession, some requirements differ from the standard B-BBEE Codes of Good Practice.

Here’s a quick overview:

• Who benefits: The LSC focuses on empowering black legal practitioners, particularly in ownership and management roles.
• Who it applies to: Law firms and advocates registered with the Legal Practice Council (LPC) may choose to be measured under the LSC. However, those earning less than R5 million (firms) or R3 million (advocates) per year are exempt as Exempted Legal Entities (ELEs).
• When it starts: The LSC came into effect in September 2024, but most verifications will only start in 2026 based on the previous year’s spend. Annual reports must be submitted after each financial year.
• New entrants: Law firms or advocates in practice for less than three years automatically qualify as Level 4 contributors unless they are black owned, in which case they can achieve Level 2 or Level 1 based on ownership percentage.
• Legal Sector Transformation Fund (LSTF): A dedicated fund has been created to support transformation in the sector. Contributions to the fund can earn scorecard points once verified.
• Support and engagement: The LSCC will host engagements to help legal practitioners navigate these updates. For queries, contact info@lscc.org.za.

If your business operates in or works with the legal sector, now is the time to get familiar with these changes to ensure compliance and maximize transformation benefits.

2. Rethinking Transformation: Insights from the Transformation Fund Seminar

We recently attended the Transformation Fund Workshop, where industry leaders including Mpho Motsei (Black Management Forum), Sibusiso Dhladhla (SERVICES SETA), and Mr. Mziwabantu Dayimani (National Empowerment Fund) shared their insights on the proposed Transformation Fund.

The fund aims to bring together existing Enterprise and Supplier Development (ESD) contributions to better support black owned businesses, SMMEs, and cooperatives—with a special focus on empowering women, youth, and people with disabilities, especially in underserved communities.

The target is to raise R100 billion through a partnership between government and the private sector, opening doors to funding, market access, and long-term growth without adding new compliance requirements for businesses.

Key Takeaway:

The Transformation Fund could be a game-changer for economic inclusion by giving black entrepreneurs the tools they need to succeed. For businesses, it is an opportunity to contribute meaningfully to transformation while aligning with growth and sustainability goals.

3. Employment Equity Compliance Reminder: EEA12 & EEA13

A quick reminder that the Employment Equity reporting season is still open.

If you are a designated employer, you are required to submit both your EEA12 (Income Differential Statement) and EEA13 (Employment Equity Report) to the Department of Employment and Labour before the deadline.

Missing this deadline can result in penalties or non-compliance notices. If you need help, our team is ready to assist you with your submission.

4. Upcoming Webinar: B-BBEE and Skills Development with Proudly South African

We’re excited to team up with Proudly South African and Boundless Consulting for a webinar on the true value of B-BBEE and Skills Development—and how they can help your business grow beyond just compliance.

On the Panel:

🔹 Ndivhuwo Rambau, EconoBEE

🔹 Sipho Claasen, Boundless Consulting

🎤 Facilitated by Matimu Mashimbye, EconoBEE

What you’ll gain:

✔ A clear understanding of the purpose behind B-BBEE

✔ Practical insights on making Skills Development work for your business

✔ Real-world advice on aligning transformation with business growth

📅 Date: 29 July 2025

🕘 Time: To be confirmed

📍 Online

Registration details coming soon

We’ll share more details via email and social media in the coming days, so stay tuned. We would love to have you join us for this impactful conversation.

Thank you for reading this month’s Transformation Insights Newsletter. If you have any questions or need assistance with transformation, employment equity, or compliance, we are always here to help.

Together, let’s keep driving transformation forward.