B-BBEE Charters

B-BBEE Sector Charters

In February 2007, the dtic gazetted the Black Economic Empowerment (BEE) Codes of Good Practice, in terms of which a number of Transformation Sector Charters (also referred to as Sector Charters) were introduced, vetted and analysed for compliance, as per the stipulations of either Section 9 or 12 of the B-BBEE Act, No. 53 of 2003.

The responsibility of the dtic is to ensure that Sector Charters submitted for gazetting are sufficiently aligned to the B-BBEE Act and Codes of Good Practice and more importantly, that they advance the objectives of sustainable B-BBEE.

A B-BBEE Sector Charter, gazetted in terms of Section 12 of the B-BBEE Act, means that it:

• Has been developed and agreed upon by major stakeholders in the industry;
• Is published for information purposes only and used as a statement of intent by industry players; and
• Is fully binding between and among businesses operating in the industry.

NB: A Sector Charter gazetted in terms of Section 12 has no bearing on state organs and departments.

A B-BBEE Sector Charter, gazetted in terms of Section 9(5) of the B-BBEE Act, means that it:

• Is a Draft Sector Code, which has complied with the provisions of Section 12 of the B-BBEE Act, in that major stakeholders have agreed to the stipulations of the Charter; and
• Is a Draft Sector Code, which has been published nationally for public comment and input, for a period of sixty (60) days.

A B-BBEE Draft Sector Code, gazetted in terms of Section 9(1) of the B-BBEE Act, means that it:

• Becomes a Sector Code of Good Practice (Sector Code) and shares the same status as the B-BBEE Codes of Good Practice, published by the Minister of Trade, Industry and Competition, in February 2007; and
• Is fully binding between and among businesses operating in the industry.

Statement of Clarification – Effective Date of Sector Codes

The purpose of this statement is to clarify the date when a Measured Entity that falls within the scope of a particular Section 9(1) Sector Code must be measured or verified on the basis of the Sector Code and no longer on the basis of the B-BBEE Codes of Good Practice (“the dtic Codes”). View Statement

Definitions of Concepts

B-BBEE Act	Any reference to ‘the Act’ means the B-BBEE Act
Transformation Sectors	Section 12 of the Act refers to the gazetting of Transformation Charters. These are also referred to as Sector Charters, developed by major stakeholders in the relevant industries, and seek to achieve broad-based transformation.
Sector Charters	These are the same as Transformation Charters, and are developed by major stakeholders in the relevant industries. They are referred to as Sector Charters for as long as they are gazetted under Section 12 of the Act.
Draft Sector Codes	These refer to Sector Charters that have been submitted to the dtic for gazetting in terms of Section 9(5) of the Act.
Sector Codes of Good Practice (Sector Codes)	These refer to the Draft Sector Charters that have been gazetted in terms of Section 9(1) of the Act.
Generic Codes	These refer to the Codes of Good Practice that were gazetted in February 2007, in terms of the Act.

Sector Codes gazetted under Section 9(1):

 

Sector Codes	Effective date	Highlight	Gazette number
Agri-BEE Charter	08 December 2017	The objectives of this Amended AgriBEE Sector Code are to facilitate Broad-based Black Economic Empowerment in the agricultural Sector by: implementing initiatives to include Black South Africans at all levels of agricultural activity and Enterprises by: promoting equitable access and participation of Black People in the entire agricultural value chain;	Download Government Gazette No. 41306
Financial Sector Charter	01 December 2017	The Minister of Trade and Industry gazetted the Financial Services Sector Code, which provides transformation guidelines for the financial sector, one of the key sectors of the South African economy. The Minister also approved the application of the ‘once empowered, always empowered’ principle with a condition that Government, together with the Financial Services Sector Charter Council, monitor the dilution of black shareholding in the sector. A review will be conducted every two years to determine the level of transformation in the sector and, in particular, the impact of the ‘once empowered, always empowered’ principle. 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.	Download Government Gazette No. 41287 here
Information and Communication Technology (ICT) Charter	07    November 2016	Throughout the Amended B-BBEE ICT Sector Code, various criteria appear which advance the interests of certain categories of Black People. These include: (Black Women who should form between 40% and 50% of the beneficiaries of all Elements of the Scorecard: and & Black People with disabilities, Black Youth, Black People living in rural areas and Black Unemployed People who should form between &2% and 3% of the beneficiaries of all Elements of the Scorecard.	Download Government Gazette No. 40407 here
Property Sector  Charter	07 June 2017	The unique aspects of the property charter is that the charter introduces peculiar targets such as measurements for Economic Development which will be used by businesses and entities in the sector to invest in properties in underdeveloped areas and thus reduce service inequalities and the limited tradability of properties in these areas. In recognition of the nature of the industry where majority of ownership by listed companies is through mandated investments that are far beyond 40%, a special consent is given for only property listed companies and Property Unit trusts to cap the mandated investment at 70% which is higher than the 40% in the Generic Codes.	Download Government Gazette 40910 here
Chartered Accountancy Sector Code	10 May 2011	With this charter, 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.	Download Government Gazette 34267 Part 1  Part 2 Part 3  Part 4
Integrated Transport Sector Codes	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 (GDP) 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.	Download Government Gazette 32511 here
Forest 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, sawmilling, 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.	Gazzete no 40803
Marketing, Advertising and Communication (MAC) Sector Code	01 April  2016	The MAC Sector Code has a 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.	Download Government Gazette No. 39887 here
Tourism Sector Code	20 November 2015	To create more opportunities for emerging black owned enterprises across the supply and value chains of established businesses, the sector has set the target for supplier development at 3% NPAT which is higher than the 2% of the Generic Codes. An implementation of supplier development in the sector will lead to job creation and overall growth in the sector.	Download Government Gazette 39430 here
Defence Sector Code	12 April 2019	The Defence Sector Code aims to implement measures that will ensure the effective participation of Black people in South African Defence Industry(SADI) and in the broader economy. The sector code is further aimed:  to encourage the participation of and growth of SMME’s in SADI;	Gazzette 42391

Enquiries regarding the above can be directed to:

Lindiwe Mavundla
Tel.: +27 12 394 1497
Fax: +27 12 394 2497
E-mail: LMavundla@thedtic.gov.za