01 B-BBEE landscape
Checked 8 Oct 2026
Broad-Based Black Economic Empowerment is not a licence to trade. It is a scorecard that decides whose spend counts for your buyer.
COMMON KNOWLEDGE
- VERIFIEDMeasured under the B-BBEE Act 53 of 2003 and the Codes of Good Practice on five elements: ownership, management control, skills development, enterprise and supplier development, socio-economic development.
- VERIFIEDSuppliers are rated Level 1 to 8 or non-compliant. A buyer recognises spend at 135% for Level 1, 100% for Level 4, 10% for Level 8 and 0% if non-compliant.
- VERIFIEDExempted Micro Enterprises (turnover up to R10m) and Qualifying Small Enterprises (R10m to R50m) qualify under simpler rules, often by sworn affidavit.
- VERIFIEDCertificates are valid for 12 months and are issued by SANAS-accredited verification agencies.
UNCOMMON, BUT COSTLY
- VERIFIEDForeign multinationals can earn ownership points without selling equity, through a dtic-approved Equity Equivalent Investment Programme (Statement 103).
- INDICATEDDraft Code amendments gazetted 29 Jan 2026 would let equity-equivalent and ESD contributions flow into a Transformation Fund. Comments closed 30 Mar 2026; not final at the last check.
- VERIFIEDFronting, misrepresenting B-BBEE status, is a criminal offence; companies face fines of up to 10% of annual turnover.
What it means for an entrantExporting through a distributor needs no certificate of your own, but your distributor's level is effectively your price of entry to mines, state-owned companies and large corporates. Ask for the certificate; check the level and the expiry date.
Sources: B-BBEE Act 53 of 2003 (as amended 2013); Codes of Good Practice; Government Gazette 29 Jan 2026; Werksmans and Cliffe Dekker Hofmeyr commentary 2026.
02 Legal landscape & company set-up
Checked 8 Oct 2026
You can sell without a local entity. Once you conduct business here, company law, tax and B-BBEE start to apply.
COMMON KNOWLEDGE
- VERIFIEDRoutes in: an independent distributor or importer, an agent, a registered external company (branch), or a (Pty) Ltd subsidiary. Full foreign ownership is permitted in most sectors.
- VERIFIEDA foreign company must register as an external company with CIPC within 20 business days of starting to conduct business in South Africa (Companies Act, s23).
- VERIFIEDContracts may choose foreign law; the International Arbitration Act 15 of 2017 adopts the UNCITRAL Model Law.
UNCOMMON, BUT COSTLY
- INDICATEDThere is no EU-style commercial agency law. Exclusivity, notice and goodwill on termination exist only if your contract says so. Confirm with South African counsel.
- VERIFIEDThe Consumer Protection Act can cover B2B sales where the buying company's turnover or assets are below R2 million.
- VERIFIEDOrdinary commercial debts prescribe after three years under the Prescription Act 68 of 1969.
What it means for an entrantDecide the route before you talk to distributors. An exclusive agreement signed early, with no performance targets or exit, is the most common and most expensive mistake.
Sources: Companies Act 71 of 2008; International Arbitration Act 15 of 2017; Consumer Protection Act 68 of 2008 threshold notice; Prescription Act 68 of 1969.
03 Tax
Checked 8 Oct 2026
Rates were unchanged in the February 2026 Budget. The surprises are in how imports and agents are taxed.
COMMON KNOWLEDGE
- VERIFIEDVAT 15%; the compulsory VAT registration threshold rose from R1m to R2.3m on 1 April 2026.
- VERIFIEDCorporate income tax 27%; effective capital gains rate for companies 21.6%.
- VERIFIEDWithholding taxes: dividends 20%, interest 15%, royalties 15%, reduced under double tax agreements.
UNCOMMON, BUT COSTLY
- VERIFIEDImport VAT is charged on the customs value plus duty plus a 10% uplift, so the VAT cash cost on landed goods is higher than 15% of invoice.
- INDICATEDA dependent agent who habitually concludes contracts for you can create a permanent establishment and a South African tax liability.
What it means for an entrantPrice on a landed basis that includes the uplifted import VAT cash cost, and choose agents or distributors with permanent-establishment risk in mind.
Sources: National Treasury Budget Review 2026; Grant Thornton and KPMG Budget 2026 analysis; Customs and Excise Act; VAT Act 89 of 1991.
04 Customs, tariffs & trade agreements
Checked 8 Oct 2026
Your duty rate depends on where the goods are made, not where you are based.
COMMON KNOWLEDGE
- VERIFIEDSouth Africa is part of SACU (with Botswana, Eswatini, Lesotho and Namibia): one external tariff, no duties inside the union.
- VERIFIEDPreferences in force include the SADC FTA, EU–SADC EPA, EFTA–SACU FTA, UK–SACUM EPA, SACU–Mercosur PTA, and AfCFTA trading since 31 Jan 2024.
- VERIFIEDThere is no free-trade agreement with China, the United States, India, Turkey or Japan: general duty rates apply.
- VERIFIEDImporters register with SARS Customs; some goods also need an ITAC import permit.
UNCOMMON, BUT COSTLY
- VERIFIEDEU preference needs proof of origin (EUR.1 or an origin declaration). Without it, the general rate applies even to EU-made goods.
- INDICATEDMany MRO categories carry 0% general duty, but some steel products and fasteners face anti-dumping or safeguard duties. Check ITAC trade remedies for your HS code.
What it means for an entrantA competitor shipping from an FTA partner may land the same product cheaper. A briefing compares duty by origin for your exact HS codes.
Sources: SARS tariff book and AfCFTA notices; tralac; ITAC.
05 Standards & product compliance
Checked 8 Oct 2026
CE and ISO help you sell. They do not clear South African regulation on their own.
COMMON KNOWLEDGE
- VERIFIEDSABS publishes South African National Standards (SANS), mostly voluntary.
- VERIFIEDThe NRCS enforces compulsory specifications; regulated products need an NRCS Letter of Authority before they may be sold.
- VERIFIEDSARS links specific HS codes to the Letter of Authority requirement on its Prohibited and Restricted list, which changes several times a year.
UNCOMMON, BUT COSTLY
- INDICATEDLetter of Authority approval has historically taken months, not weeks; build it into the launch plan.
- INDICATEDElectrical equipment for explosive atmospheres, common in mining, needs certification by a SANAS-accredited Inspection Authority; an IECEx certificate is a basis, not a substitute.
- INDICATEDMine buyers often ask for test certificates and batch traceability as standard, because counterfeit bearings and parts circulate.
What it means for an entrantCheck your HS codes against the SARS list before the first shipment. A missing Letter of Authority means goods held at the port.
Sources: NRCS Act 5 of 2008; SARS Prohibited and Restricted Imports and Exports list; dtic statements.
06 Public & mining procurement
Checked 8 Oct 2026
Large buyers score suppliers, not just quotes.
COMMON KNOWLEDGE
- VERIFIEDState tenders follow the PPPFA and the 2022 Preferential Procurement Regulations: 80/20 points below R50m, 90/10 above, with goals set by each organ of state.
- VERIFIEDEvery supplier to an organ of state must be registered on National Treasury's Central Supplier Database (CSD).
- VERIFIEDThe Public Procurement Act 28 of 2024 is signed but not yet in force; draft regulations were published on 16 Apr 2026.
UNCOMMON, BUT COSTLY
- INDICATEDThe 2018 Mining Charter targets 70% of mining-goods spend on South African-manufactured goods. A 2021 High Court ruling found it is policy, not binding law, yet mines still report against it.
- INDICATEDMine vendor onboarding typically asks for a B-BBEE certificate, a SARS tax compliance PIN and a Compensation Fund letter of good standing.
What it means for an entrantSelling to mines and state-owned companies usually means selling through a well-rated local partner that holds stock and paperwork.
Sources: PPPFA 5 of 2000; Preferential Procurement Regulations 2022; National Treasury, 16 Apr 2026; Mining Charter 2018; Gauteng High Court, 21 Sep 2021.
07 Labour & employment equity
Checked 8 Oct 2026
Only relevant once you employ people here, but then it is strict.
COMMON KNOWLEDGE
- VERIFIEDCore laws: Labour Relations Act, Basic Conditions of Employment Act, Employment Equity Act. Disputes go to the CCMA.
- VERIFIEDEmployers with 50 or more employees are designated and must meet sector numerical targets published on 15 Apr 2025.
UNCOMMON, BUT COSTLY
- VERIFIEDEmployment-equity non-compliance can exclude a company from state contracts.
- INDICATEDThe first measurable reporting cycle against the sector targets runs from 2026.
What it means for an entrantStart with a distributor or Associates rather than staff; hire locally once volume justifies it.
Sources: Employment Equity Act and 2025 Regulations; Bowmans and ENS commentary.
08 Exchange control & getting paid
Checked 8 Oct 2026
Exchange control is managed by banks, not by you, but it shapes how money moves.
COMMON KNOWLEDGE
- VERIFIEDThe SARB Financial Surveillance Department sets the rules; authorised dealer banks apply them to every cross-border payment.
- VERIFIEDSouth Africa left the FATF grey list in October 2025.
- VERIFIEDThe rand floats freely: USD/ZAR 16.68 on 8 Oct 2026, about 4% weaker than a month earlier.
UNCOMMON, BUT COSTLY
- INDICATEDLoans from a foreign parent to a South African subsidiary, and some royalty or licence payments, need prior exchange-control approval.
- HYPOTHESISWith prime at 10.75%, distributors are likely to ask for longer terms or consignment stock. Price the credit cost in.
What it means for an entrantAgree the invoice currency and who carries rand risk up front, and consider credit insurance from your national export credit agency.
Sources: SARB Currency and Exchanges Manual; FATF plenary, October 2025; market rates, 8 Oct 2026.
09 Data protection & competition law
Checked 8 Oct 2026
Two laws that catch foreign companies by surprise.
COMMON KNOWLEDGE
- VERIFIEDPOPIA has been fully in force since 1 July 2021; organisations must register an Information Officer with the Information Regulator.
- VERIFIEDMergers above set thresholds must be notified to the Competition Commission.
UNCOMMON, BUT COSTLY
- VERIFIEDPOPIA protects companies as well as individuals, so B2B email marketing must also meet its consent and opt-out rules.
- INDICATEDMerger review includes public-interest tests, among them a wider spread of ownership by historically disadvantaged people.
What it means for an entrantRun outreach on a documented legitimate-interest or consent basis, with a clear opt-out from day one.
Sources: Protection of Personal Information Act 4 of 2013; Competition Act 89 of 1998 (2019 amendments).
10 Logistics, ports & energy
Checked 8 Oct 2026
Power is more reliable than it has been in years. Ports and diesel are the swing factors now.
COMMON KNOWLEDGE
- VERIFIED504 consecutive days without national load-shedding as of 2 Oct 2026.
- VERIFIEDEskom tariffs +8.76% from 1 Apr 2026 and +8.83% from 1 Apr 2027; municipal tariffs +9.01% from 1 Jul 2026.
- INDICATEDDurban is the main container gateway; a 25-year private partnership was chosen for Durban Container Terminal Pier 2.
UNCOMMON, BUT COSTLY
- INDICATEDLocalised "load reduction" still cuts power in parts of Gauteng and KwaZulu-Natal, even without national load-shedding.
- INDICATEDThe World Bank Container Port Performance Index has ranked Cape Town last of about 400 ports; plan buffer stock for Cape-bound cargo.
What it means for an entrantBuyers expect delivery in 24–48 hours. That means local stock, which means a partner with a warehouse and working capital.
Sources: Eskom, 2 Oct 2026; NERSA determination 2026; Transnet; EWN, 20 Jul 2026.
Entry checklist
Before the first shipment
- Classify each product to 8-digit HS and check SARS for an NRCS Letter of Authority or ITAC permit requirement.
- Confirm your origin preference (EUR.1 or origin declaration for EU goods) and the duty you will actually pay.
- Choose the route: distributor, agent, external company or (Pty) Ltd, and what it does to tax and B-BBEE.
- Ask every candidate distributor for a current B-BBEE certificate or affidavit; check the level and expiry.
- Write exclusivity, targets, termination and stock buy-back into the contract; name governing law and arbitration.
- Agree the currency of invoice and who carries rand risk.
- For state or state-owned buyers, register on the Central Supplier Database before the tender.
- Run outreach and marketing on a POPIA-compliant basis: it covers companies, not only people.
Apply it to your product: request a briefing
Public-source information compiled by Roadfly Corp and checked on the date shown. It is a starting point, not legal, tax or customs advice: confirm with a South African attorney, tax adviser or clearing agent before you act. Spotted something out of date? Write to sales@roadflycorp.com.
