South Africa: Transport Ministry Advances Sector Transformation with Integrated Charter and New Development Funds
On 16 May 2025, South Africa’s Minister of Transport, Barbara Creecy, addressed key stakeholders in Midrand, outlining the Department’s ongoing commitment to inclusive growth and structural transformation across the country’s logistics and transport sector.
Recognising transport as a critical enabler of sustainable economic development, Minister Creecy emphasised the sector’s historical exclusion of black South Africans, women, and youth. According to the B-BBEE Commission’s 2022 report, only 38.8% of transport and logistics businesses were black-owned—a notable decrease from 48.6% in 2019.
In response, the Department appointed the Integrated Transport Sector B-BBEE Charter Council in May 2023 to lead the transformation process. The Council has since finalised a comprehensive draft of the revised Transport Sector Codes, soon to be published for 60 days of public comment. Central to the revised codes is the introduction of a sector-specific Enterprise and Supplier Development (ESD) Fund, which will channel a substantial portion of ESD spend towards inclusive growth through the Transformation Fund.
The Department and its state-owned entities have reaffirmed transformation as a foundational objective. For example, the South African National Roads Agency (SANRAL) has embedded Contract Participation Goals (CPGs) into all major infrastructure projects, mandating a minimum of 30% subcontracting to black-owned SMMEs, women, youth, military veterans, and persons with disabilities. In the 2024/25 financial year, SANRAL reported that 99.7% of Routine Road Maintenance spend and 77% of non-RRM spend went to black-owned SMMEs, involving over 2,200 SMMEs nationwide.
To further support emerging contractors, SANRAL is set to launch the Contractors Development Programme (CDP) later this year. This initiative will address the challenges faced by “missing middle” contractors by building their technical, financial, and managerial capacity for broader sector participation.
The Minister also highlighted rail sector transformation as a strategic government objective. Key reforms such as the issuance of a Request for Information (RFI) and the Transnet Network Statement explicitly integrate transformation requirements. The RFI solicits proposals that promote employee ownership, local procurement, and black economic participation. Respondents must also identify opportunities for emerging black-owned enterprises, women-owned businesses, and people with disabilities. The Network Statement reinforces these goals through capacity allocation mechanisms designed to support modal shift from road to rail, economic growth, infrastructure investment, and sector transformation.
In terms of regulatory alignment, rail corridor access applications must comply with Section 10(1) of the B-BBEE Act of 2003 and reflect the equity principles of the Rail Sub-Sector Code. This includes a robust consultation process and a monitoring framework to ensure implementation.
On the passenger rail front, PRASA’s station modernisation and upgrade programme has supported numerous SMMEs and is expected to generate 350,000 to 400,000 jobs over the MTEF period, based on investment-to-job creation ratios.
Airports Company South Africa (ACSA) is also driving transformation through targeted development programmes for black-owned businesses. ACSA’s 2024/25 procurement spend reached R4.042 billion, of which 75.67% (R4.435 billion) supported B-BBEE-compliant suppliers. R334 million was spent on emerging micro-enterprises, and R1.2 billion on black women-owned businesses. ACSA’s transformation strategy ensures all service providers submit detailed plans reflecting black South African participation.
Acknowledging the significant role played by the minibus taxi industry—South Africa’s dominant commuter transport mode—the Department is piloting formalisation initiatives such as cashless payment systems, permit environment reform, and strategies to de-risk capital loans for vehicle acquisition.
Minister Creecy concluded by reiterating the Department’s firm stance on the importance of transformation and expressed optimism that the forthcoming publication of the Transport Sector Codes would herald a new era for the country’s logistics sector.
