Sibanyoni testimony raises questions about South Africa’s 30% procurement rule

Joe "Ferrari" Sibanyoni, a taxi boss from Mpumalanga, testified at the Madlanga Commission, revealing how South Africa's 30% local-content rule is being exploited. The 2017 regulation under the PPPFA mandated that at least 30% of public contracts be subcontracted to targeted groups, which led to the rise of criminal syndicates known as the construction mafia demanding a cut under threat of violence. The regulation was revised in 2022 to remove the mandatory subcontracting clause. Sibanyoni faces scrutiny over his demand for 30% local subcontracting work related to his mining activities.