Broad-Based Black Economic Empowerment Codes of Good Practice
Our legislative mandate emanates from the Act, which includes the regulations and the codes. The Minister of Trade and Industry, Dr Rob Davies (MP) may from time to time issue notices to clarify or guide the implementation of the Act, and this is done through the Government Gazette.
Generic Code of Good Practice
The Minister, has announced the release of the revised Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice. Minister Davies says the refined Codes symbolise a new beginning in the re-orientation of the transformation policy to focus more on productive B-BBEE and the growth of black entrepreneurs through Enterprise and Supplier Development elements.
- Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice
- Phase 2 B-BBEE Codes of Good Practice Gazette No.38766, 6 May 2015
- Revised notice of Clarification on application of the B-BBEE Codes of Good Practice
- Revised formulas for code Series 200 and 300, fifth criterion for empowering supplier
Sector Codes Gazetted under Section 9 (1)
|Sector Code||Effective Date||Abstract of the Code||Download|
|Amended Agri-BEE Sector Code||08 December 2017||The Sector code aims to support the acceleration of land reform in South Africa by setting a target for equity and land ownership. Landowners are incentivised with bonus points for transferring to black people in excess of the 30% land reform target.|
|Amended Financial Sector Code||01 December 2017||A key, unique feature of the Financial Sector Code is the introduction of an extra element, bringing the elements to eight in total and not seven as in the Generic Codes. The extra element, known as Access to Financial Services, aims to facilitate access to finance for black people and black-owned enterprises.|
|Amended ICT Sector Code||07 November 2016||The ICT sector has set a black ownership target of 30% to be achieved by entities in the sector. The main feature of the charter is a set target of 5% Net Profit After Tax to be spend on enterprise development initiatives that are aimed at growing and developing black owned ICT enterprises.|
|Amended Property Sector||09 June 2017||The Sector Code is an industry-agreed empowerment initiative in the Forest Sector and seeks to deal with transformation challenges in Forest Sub-Sectors of commercial primary growth, fibre production, contracting, saw milling, pole and charcoal. The Forest Sector Code gives bonus points as an incentive for enterprises to achieve the requisite 30% BEE ownership. It further seeks to encourage and support entities to undertake BEE-compliant procurement and job creation initiatives in the sector|
|Chartered Accountancy Sector Code||10 May 2011||The Chartered Accountancy Profession aims to increase the number of black people, particularly black women entering the profession, to reflect the country's demographic population. Black Chartered Accountants have been identified as possessing critical skills that are in short supply and yet in great demand in South Africa. The Sector aims to achieve 32,5% black ownership target by 2016||
Repealed effective 17 February 2016
|Integrated Transport||21 August 2009||
The Minister of Trade and Industry, Dr Rob Davies (MP) announced the gazetting of the Integrated Transport Sector Codes, in terms of the B-BBEE Act. The Integrated Transport Sector Codes comprise eight (8) sub-sectors, which seek to boost one of South Africa's largest infrastructure and Gross Domestic Product contributors. In alignment with government's national transport action plan, the Codes aim to fast-track the implementation of efficient transportation, freight and logistics sectors within the economy.
One of the main highlights is the achievement of a 35% black-ownership target, within a period of five (5) years, as prescribed by the Bus Commuter Service Sub-Sector Code. Unlike other Sector Codes gazetted earlier this year, the Integrated Transport Sector Codes will be continuously reviewed, at five (5) year intervals, from the date of publication thereof
|Amended Forestry Sector Code||21 April 2017||The Sector Code is an industry-agreed empowerment initiative in the Forest Sector and seeks to deal with transformation challenges in Forest Sub-Sectors of commercial primary growth, fibre production, contracting, saw milling, pole and charcoal.The Forest Sector Code gives bonus points as an incentive for enterprises to achieve the requisite 30% BEE ownership. It further seeks to encourage and support entities to undertake BEE-compliant procurement and job creation initiatives in the sector.|
|Amended Construction Sector Code||01 December 2017||It presents the industry with the ideal opportunity for the advancement of transformation and BEE in the procurement of construction programmes and services. The Code also seeks to regulate a target of 30% black ownership in the industry over the next 10 years|
|Amended Tourism Sector Code||20 November 2015||The highlight of the Tourism Sector Code is that it has a reduced threshold of R5 million, as compared to a threshold of R10 million, set out in the Generic Codes. This decrease seeks to ensure that a significant number of enterprises doing business in the tourism industry are not excluded from compliance with the Sector Code.|
|Amended MAC Sector Code||01 April 2016||Black Ownership target of 45% (30% is reserved for black women ownership) which should be achieved as of 31 March 2018. The 45% black ownership target is higher than the 25% target of the Generic Code. The 45% ownership was negotiated and agreed for by sector stakeholders and it will contribute towards increasing the number of black people that manage, own and control enterprises in the MAC sector.
The increase of the absorption points to 10 under the Skills Development Element which is higher than the five in the Generic Codes. Entities in the sector will be rewarded more for training and for providing employment opportunities for young black graduates. This was done to increase a pool of human resources in the sector especially amongst young black people and also contribute towards addressing unemployment in the country.
Enquiries regarding the above information can be directed to:
Ms Lindiwe Madonsela
Tel No: +27 12 649 0915
To read about the B-BBEE Regulations, click here.