Why International Giants Are Exiting the South African Market

Firms dissolve partnership to seek broader global collaboration

Webber Wentzel and UK-based Linklaters mutually agreed to end their formal alliance, effective 1 November 2026. The partnership began in 2013 and has now been dissolved to give Webber Wentzel the flexibility to work with a wider range of international legal practices rather than remaining tied to an exclusive global partner.

Webber Wentzel has since removed the Linklaters wording and associated pink branding from its corporate identity. Both firms stated they will continue to collaborate on cross-border matters when it serves their clients, even without the formal arrangement in place.

Johannesburg offices close amid global law firm restructurings

A&O Shearman closed its Johannesburg office following the mega-merger between London’s Allen & Overy and New York’s Shearman & Sterling. That global restructuring included reducing the firm’s partnership by approximately 10% to address overcapacity. Bowmans subsequently absorbed A&O Shearman’s entire local legal team, which included eight partners, four counsel, and two directors.

Hogan Lovells also closed its Johannesburg office during the same period. Meanwhile, Norton Rose Fulbright South Africa departed from its global network in March 2026 and relaunched independently under the name Deneys. The roots of the firm trace back to a 2011 merger involving Norton Rose, Canada’s Ogilvy Renault, and South Africa’s Deneys Reitz.

Economic shifts and regulatory hurdles drive corporate changes

Peter Tshisevhe, director at TGR Attorneys, said these corporate shifts reflect changing economic realities and perceptions of South Africa as a business destination. International law firms traditionally follow their major corporate clients, meaning their presence depends directly on large commercial projects and foreign investment. Regulatory obstacles, particularly within the mining sector, influence whether foreign companies commit capital.

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Photo: EWN

Tshisevhe also pointed to black economic empowerment (BEE) requirements as a factor for some international businesses. While international law firms receive exemptions and alternative arrangements to earn points, that structure does not always align with the preferences of every foreign enterprise. International firms face profitability hurdles because their fee structures are tied to more expensive foreign currencies.

Local lawyers train in foreign law to meet demand

When foreign businesses delay or withhold investment, the local law firms servicing them lose potential work. Tshisevhe said South African lawyers will continue to handle much of the domestic work, but international banking and finance transactions frequently require expertise in foreign jurisdictions. Major international financial institutions often decline syndicated transactions if they are governed strictly by South African law.

In order to satisfy this requirement, a growing number of South African legal professionals are qualifying as solicitors so they can issue formal opinions on deals governed by foreign legislation. At the same time, the country relies on international arbitration to resolve major commercial disputes. South Africa’s corporate sector and state enterprises have a long-standing pattern of dedicating substantial financial resources to resolve conflicts abroad, including through arbitration hearings held in London and France.

Frequently Asked Questions About South Africa Legal Sector Changes

When does the Webber Wentzel and Linklaters alliance officially end?

The alliance ended on 1 November 2026, after which both firms would operate independently while continuing to collaborate on specific cross-border matters.

What happened to a&O Shearman’s local legal team in Johannesburg?

South African law firm Bowmans absorbed the entire A&O Shearman local legal team, which included eight partners, four counsel, and two directors, after the Johannesburg office closed.

What name did Norton Rose Fulbright South Africa adopt after leaving its global network?

The firm returned to the name Deneys following its separation from the international parent network in March 2026.

Why do international law firms struggle with profitability in South Africa?

According to Peter Tshisevhe of TGR Attorneys, international firms face profitability challenges because their fee structures are linked to more expensive foreign currencies, making it difficult to maintain local offices without a steady volume of large-scale transactions.