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B-BBEE Sector Charters

In February 2007, the dti 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 dti 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 and Industry, 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 dti 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 dti 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 28 December 2012
  • The Charter 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. There is also recognition for long-term leases under enterprise development and socio-economic development elements.
  • Enhanced recognition is given to initiatives that result in Greenfield ventures, job creation and beneficiation of primary products, and support industrialisation.
Download Government Gazette No. 36035 here [PDF]
Financial Sector Charter 26 November 2012
  • 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. 35914 here [PDF]
Information and Communication Technology (ICT) Charter 6 June 2012
  • 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.
  • Another key highlight is the spend of 1.5% of Net Profit After Tax on Socio Economic Development Initiatives to improve the lives of communities through programmes such as ICT's in education, and health. The ultimate goal is to bridge the digital divide in the country.
Download Government Gazette 35423 here [PDF]
Property Sector Charter 1 June 2012
  • 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 35400

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 [PDF]
Part 2 [PDF]
Part 3 [PDF] Part 4 [PDF]
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 12 June 2009
  • 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.
Download Government Gazette 32320 here:
Part 1 (Pages 1-24) [PDF]

Part 2 (Pages 25-36) [PDF]

Construction Sector Code 5 June 2009
  • 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.
Download Government Gazette 32305 here [PDF]
Tourism Sector Code 22 May 2009
  • The highlight of the Tourism Sector Code is that it has a reduced threshold of R2,5 million, as compared to a threshold of R5 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.
Download Government Gazette 32259 here [PDF]

Sector Charters gazetted under Section 12

Sector Charter Effective date Gazette number
Marketing, Advertising and Communication (MAC) Sector Charter 29 August 2008 Download Government Gazette 31371 here [PDF]

Enquiries regarding the above can be directed to:

Jacob Maphutha
Tel.: +27 12 394 3430
Fax: +27 12 394 4430
E-mail: jmaphutha@thedti.gov.za

or

Julia Nzimande
Tel.: +27 12 394 1143
Fax: +27 12 394 2143
E-mail: jnzimande@thedti.gov.za