The National Empowerment Fund (NEF) has announced a funding commitment of R51 million to accelerate transformation in South Africa’s legal and professional services sectors.
Speaking at the Legal Sector Codes Summit in Sandton, NEF Chief Executive Officer Mziwabantu Dayimani said the move reflects the agency’s intent to ensure that transformation goes beyond policy into measurable action.
“Transformation of the legal profession cannot be achieved through regulation alone. It requires resources, partnerships and intentionality,” he said. “This R1 million allocation is a catalytic gesture, a call to action for others to join in expanding this Fund so that transformation in the legal sector moves from principle to practice.”
The NEF’s funding package consists of two initiatives: a R1 million contribution to the Legal Sector Transformation Fund (LSTF) and a R50 million Professional Services Fund (PSF). The LSTF will be used for skills and enterprise development for black legal practitioners, focusing on training in specialised fields of law and creating opportunities for black women in particular.
Dayimani said the Fund would work with partners to mobilise additional resources from organisations with a skills development mandate.
“We are treating this as an initial allocation. The need is far greater, and transformation must be financed with the same urgency as it is legislated,” he added.
The new Professional Services Fund will provide working capital and growth finance to black-owned law firms and other professional service providers. Funding will range from R250 000 to R5 million per firm, and will include financial instruments such as term loans, bridging finance and revolving credit facilities. Firms will also receive back-office support for financial statements, mentorship, and turnaround services at no cost.
“Law firms and other professional firms often struggle with cash flow and access to working capital. This prevents them from increasing their job creation potential and their capacity to absorb young entrants into the profession,” Dayimani explained. “The Professional Services Fund offers more than finance. It provides business mentorship, turnaround support and access to markets, giving black firms not just capital, but a fair shot at long-term success.”
Christine Qunta, Chairperson of the Legal Sector Charter Council, described the gazetting of the Legal Sector Codes in September 2024 as a turning point for transformation. She said the new framework introduces measurable targets over five years, including 50 percent black ownership, 25 percent black women ownership, 60 percent briefing of black advocates, and an 80 percent procurement target for legal services from black firms in the public sector.
“This Code is not punitive; it is corrective,” Qunta said. “It acknowledges that while the legal sector contributes significantly to GDP, its benefits have not been equitably shared. The Code gives us a roadmap to balance excellence with equity.”
Deputy Minister of Trade, Industry and Competition Zuko Godlimpi commended the NEF and the Legal Sector Charter Council for turning policy commitments into actionable programmes.
“The transformation of the legal profession is not a symbolic matter, it is a constitutional and economic imperative,” he said. “We call on the private sector, state-owned entities and professional bodies to match the NEF’s commitment. Transformation cannot rest on the shoulders of one institution. It requires a shared national effort.”
The NEF said the two funds would help build a more inclusive economy by providing access to both capital and opportunity. For many black-owned law firms and consultancies, especially smaller practices that serve township and rural businesses, this could open doors to larger contracts and long-term growth.
“The Legal Sector Transformation Fund and the Professional Services Fund are part of a broader effort to democratise opportunity,” Dayimani said. “When black professionals thrive, South Africa’s economy thrives.”
lazola@vutivibusiness.co.za
