The BBC confirmed on Friday that it would join the pending proceedings in the Gauteng High Court as amicus curiae, or friend of the court, in support of Guma Solutions’ bid to interdict Transnet Rail Infrastructure Manager (TRIM) and Transnet from continuing with a confined 24-month tender for the direct supply of railway rails.
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The Black Business Council (BBC) has thrown its weight behind Guma Solutions in an urgent court application aimed at stopping Transnet from proceeding with what it describes as an unconstitutional rail procurement process that excludes South African companies in favour of foreign manufacturers.
Guma Solutions is an investment conglomerate based in multiple African regions founded by South African billionaire businessman, Robert Gumede.
The BBC confirmed on Friday that it would join the pending proceedings in the Gauteng High Court as amicus curiae, or friend of the court, in support of Guma Solutions’ bid to interdict Transnet Rail Infrastructure Manager (TRIM) and Transnet from continuing with a confined 24-month tender for the direct supply of railway rails.
According to BBC, the controversial tender limits participation exclusively to six foreign manufacturers based in China, Austria, Japan, Spain, France and the United Kingdom, with no South African supplier invited to bid.
The BBC said the procurement model violated the Constitution, localisation policies and broad-based black economic empowerment requirements by shutting out local firms capable of supplying the rails.
“Public money must serve public value. When a State entity reserves a national infrastructure contract for six foreign corporations and shuts out every South African supplier, it is not making a technical procurement decision but instead it is making a political choice,” said Elias Monage, president of the BBC.
“That choice demands accountability. The BBC stands firmly behind Guma Solutions and behind every South African business that has been denied a lawful opportunity to participate.”
The case seeks to prevent Transnet from implementing the tender pending a judicial review of its legality.
Guma Solutions argued that it has a proven track record of supplying compliant rails to Transnet and has consistently outperformed international competitors on price. The company argues that several other South African firms capable of fulfilling the contract were similarly excluded without justification.
The BBC said its intervention stemmed from its constitutional mandate to advance the interests of black business and ensure state procurement complied with transformation laws.
The organisation argued that Section 217 of the Constitution requires public procurement to be fair, equitable, transparent, competitive and cost-effective, while also advancing historically disadvantaged groups.
“A procurement that directs a major national infrastructure tender exclusively to foreign corporations, while excluding every South African supplier, fails that standard,” the BBC said.
“It also forecloses B-BBEE participation, black enterprise opportunity, employment and local economic activity in a procurement funded by South African taxpayers.”
The council further accused Transnet of undermining South Africa’s industrialisation and localisation agenda at a time when unemployment and manufacturing decline remain major economic concerns.
Kganki Matabane, CEO of the BBC, said the government could not credibly advocate for reindustrialisation while State entities bypassed local industry.
“South Africa cannot speak credibly about re-industrialisation and transformation while its state-owned entities issue billion-rand tenders that exclude local businesses entirely,” Matabane said.
He said the BBC had called on the Ministers of Transport, Finance and Trade, Industry and Competition, as well as National Treasury, to intervene and ensure the current tender was set aside and replaced with a constitutionally compliant process open to local suppliers.
The dispute comes amid broader debates around rail reform and localisation in South Africa’s freight sector.
The BBC said it would continue to press for procurement practices that prioritise local industry, transformation and constitutional compliance, warning that allowing foreign-only tenders to proceed unchecked would undermine South Africa’s democratic and economic objectives.
Meanwhile, TRIM this week concluded Rail Access Agreements with 11 Train Operating Companies (TOCs), opening the national rail network to wider private sector participation.
The agreements increase the number of active operators on the rail network from one to 12 across five strategic freight corridors, in a move expected to boost competition and improve rail efficiency.
The newly onboarded operators include ARC South Africa, The Railway Corporation, TLD Marine, MENAR, Sharp Logistics, Barberry, Grindrod, Minrail, IRACEMA, Motheo Logistics and Interlinks. The companies operate across sectors including coal, manganese, fuel, containers and general freight.
The African Rail Industry Association (ARIA) on Friday welcomed Transnet’s recent signing of rail access agreements with 11 train operating companies but warned that rail reform would fail to stimulate industrial growth unless localisation requirements were made mandatory.
ARIA said South Africa’s manufacturing base was under severe pressure, pointing to the latest unemployment data showing joblessness had climbed to 32.7% in the first quarter of 2026, while youth unemployment stood at 60.9%.
The association also cited declining steel production and manufacturing job losses as evidence that rail reform must directly support local industry.
Mesela Nhlapo, CEO of ARIA, said localisation should not be treated as an aspiration but as a binding condition for operators accessing South Africa’s rail network.
“South Africa is not negotiating gradual localisation. We are ready now,” Nhlapo said.
“The eight million South Africans who are formally unemployed cannot wait for a phased schedule of compliance.”
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