In a significant move to protect local industry, the Black Business Council (BBC) has officially joined legal proceedings against Transnet, challenging a controversial multi-billion rand tender that allegedly excludes all South African manufacturers.
The BBC is joining the case as amicus curiae(friend of the court) in support of an urgent application brought by Guma Solutions (Pty) Ltd in the Gauteng Division High Court.
The core dispute: Exclusion of local suppliers
The controversy stems from a 6-month restricted tender issued by Transnet for the direct supply of railway rails. According to a statement released by BBC CEO Kganki Matabane on 15 May 2026, participation in the tender has been strictly confined to six foreign manufacturers based in China, Austria, Japan, Spain, France, and the United Kingdom.
The BBC highlights a startling omission: not a single South African supplier – regardless of race – has been invited to participate in the bidding process.
Allegations of constitutional violations
The council argues that this procurement strategy is a direct violation of Section 217 of the South African Constitution, which mandates that public procurement must be fair, equitable, transparent, competitive, and cost-effective.
Furthermore, they assert the move ignores legislative frameworks designed to promote localisation, which prioritises South African-made goods; industrialisation, which grows the domestic manufacturing base; and transformation, which adheres to B-BBEE and the Preferential Procurement Policy Framework Act (PPPFA).
“This is an affront of every South African business capable of fulfilling the requirements of this tender,” stated Matabane.
Legal action and ministerial intervention
The BBC has appointed a heavy-hitting legal team, including Kwena Mahlakoana Attorneys and Adv. Muzi Sikhakhane SC, to represent its interests in court under Case No. 2026/096843. As a friend of the court, the BBC intends to provide a broader perspective on how this tender impacts national transformation and the public interest.
Beyond the courtroom, the BBC has escalated the matter to the highest levels of government. The organization has written to the Ministers of Transport, Finance, and Trade, Industry and Competition, demanding an urgent oversight into Transnet's procurement model and its compliance with the Public Finance Management Act (PFMA).
The road ahead
The underlying proceedings initiated by Guma Solutions seek to interdict Transnet from proceedings with the tender until a full judicial review can determine its lawfulness. With the BBC now adding its weight to the case, the pressure on the state-owned enterprise to justify its preference for foreign manufacturers is mounting.
As the over-arching confederation for black professionals and business associations, the BBC's intervention signals a major pushback against procurement policies that appear to sideline the “Buy Local” mandate in favour of international entities.