SOUTH AFRICA Trends and Developments Contributed by: Professor Michael Katz, Matthew Morrison, Madison Liebmann and Sinovuyo Damane, ENS
South Africa’s corporate governance landscape is undergoing a period of significant transformation. The release of the King V Report on Corporate Govern - ance for South Africa 2025 by the Institute of Direc - tors in South Africa (IoDSA) and the King Committee, effective for financial years beginning on or after 1 January 2026, the recent amendments to the Compa - nies Act 71 of 2008 (some which have come into effect while others have not) and the recent simplification of the JSE Listings Requirements, represent the most substantial reform of the country’s corporate govern - ance framework in nearly a decade. Other notable events such as the promulgation of the Climate Change Act 22 of 2024, the formation of the Government of National Unity (GNU) following the 2024 national elections, and the accelerating pace of technological innovation are reshaping how South African boards approach their governance responsi - bilities. These developments occur against a back - drop of heightened geopolitical complexity, including the wars in Ukraine and the Middle East, with South Africa having navigated its role as G20 host in 2025, being a BRICS member, and acting as an advocate for the “Global South”, while contending with the lin - gering effects of state capture and persistent socio- economic challenges. This article examines the key corporate governance trends and developments affecting South Africa in 2026, focusing on five interconnected themes: (i) tech - nology, data and artificial intelligence; (ii) the evolution of ESG; (iii) the defence and rebuilding of institutions and institutional trust; (iv) global political risk; and (v) the path ahead for governance in a time of change. The governance of technology, data and artificial intel - ligence has emerged as one of the most significant areas of reform in South African corporate govern - ance. King V dedicates Principle 10 to the governance of data, information and technology, representing the most substantial update to this governance domain. The King V Code now treats data, information and technology as distinct yet interconnected fields, reor - ganising recommended practices to focus on spe - cific governance objectives for each. Notably, King Technology, Data and Artificial Intelligence King V and the governance of technology
V specifically addresses the increased use of AI sys - tems, requiring organisations to apply key values of ethics, human centricity, accountability, transparency (including openness regarding data sources), explain - ability, security, privacy, fairness and trustworthiness to implement appropriate controls in relation to their use of AI. National AI regulatory landscape South Africa has not enacted any dedicated national legislation governing artificial intelligence, nor does any standalone statutory framework or codified AI- specific legislation exist that regulates the develop - ment, deployment or use of artificial intelligence sys - tems within the Republic. Data protection, cybersecurity and board responsibilities In the interim, the Protection of Personal Informa - tion Act 4 of 2013 remains South Africa’s primary, enacted legislation governing AI-related data process - ing, covering profiling, automated decision-making, transparency duties, data accuracy obligations and cross-border data transfers. The Cybercrimes Act 19 of 2020 imposes reporting obligations on financial institutions and electronic communications service providers regarding cyber offences. The South African Reserve Bank’s Directive 1 of 2024 on Cybersecurity and Cyber-Resilience within the National Payment System imposes detailed obligations on payment institutions to identify and manage cyber risks, not - ing the evolution of payment systems introduced by digitisation, fintech and AI and the resultant increase in cyber risks. For boards, the practical implications are clear: directors must ensure that governance frameworks address the distinct risks and opportuni - ties presented by data, information and technology. The King V Disclosure Framework requires specific disclosures on actions taken to monitor the effective - ness of technology and information management. Notably, King V has broadened its ambit to include a focus on data (alongside technology and information), in line with the global increased focus on data, its gov - ernance and protection. As AI adoption accelerates across sectors including financial services, mining, telecommunications, healthcare, education, defence, agriculture and most others, boards must establish accountability for AI-related decisions, actions and
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