01 Dec 2015

Comparison of various BEE Industry Sector Codes

by Erika Holmes, Partner, Durban,

Since the coming into effect of the amended generic Codes of Good Practice on 1 May 2015, several industries which had formulated their own sector codes for their industries have aligned those sector code with the amended generic codes.  However, others have not.  For those industries that had aligned their sector codes with the amended generic Codes prior to 15 November 2015, their industry Sector Code will be the sole basis of their BEE verification.  For others, the amended generic Codes take precedence.

We have compiled a comparison table setting out which Codes apply in which industries and highlighting some of the differences between them.

CODE

THRESHOLDS

ELEMENTS & MAX. POINTS (LARGE ENTERPRISES)

STATUS

COMMENTS

GENERIC CODES OF GOOD PRACTICE  

 

(published 11 October 2013)

 

Large: Annual turnover of R 50 million +

QSE: Annual t/over btw. R10 mill & R 50 million

EME:  Annual t/over of R10 million and less

 

Deemed levels:

All EME's:   Level 4

EME / QSE 51% black owned: Level 2

EME / QSE 100% black-owned: Level 1

 

Ownership:           25 points

(target = 25.1% black; 10% black female)

Management:       19 points

Skills:                    25 points

Ent & Supp. Dev:  44 points

Socio-Eco:            5 points

Total:                118 points

Effective from 1 May 2015

(although old Codes could still apply for audits on financials pre-1 May 2015)

Priority Elements:

  • Ownership Net Value
  • Skills Development
  • Ent & Supplier Development

Large must meet 40% of all to avoid discounting

QSE's must meet 40% of o/ship + 1 other to avoid discounting

 

QSE's have separate scorecard measuring all 5 elements

 

Sub-race group calculations required for Management & Skills

 

"Empowering supplier" requirement for all the procurement sub-elements (EME's are deemed empowering suppliers).

TOURISM SECTOR

 

(published 20 November 2015)

Large: Annual turnover of R 45 million +

QSE: Annual t/over btw. R5 mill & R 45 million

EME:  Annual t/over of R5 million and less

 

 

Deemed levels:

All EME's:   Level 4

EME / QSE 51% black owned: Level 2

EME / QSE 100% black-owned: Level 1

 

Ownership:             27 points

(target = 30% black; 15% black female)

Management:         21 points

Skills:                     25 points

Ent & Supp. Dev:   42 points

Socio-Eco:               5 points

 

Bonus (TOMSA levy collector status):         3 pts

Total:                  123 points

Effective from 20 November 2015.

 

Takes precedence over generic Codes

Applies to:

  • Accommodation providers
  • Restaurants
  • Conference venues
  • Casinos
  • Tour operators and agents
  • Car rental companies
  • Professional caterers

 

Same priority elements as generic Codes

 

Sub-race group calculations required for Management & Skills

 

Currently only 470 TOMSA levy collectors in RSA, collecting levies for SA Tourism / Destination SA

MARKETING, ADVERTISING & COMMUNICATIONS SECTOR

(MAC)

 

(published 4 September 2015)

Marketing, Advertising and Communication:

Large: Annual turnover of R 50 million +

QSE: Annual t/over btw. R10 mill & R 50 million

EME:  Annual t/over of R10 million and less

 

Public Relations:

Large: Annual turnover of R 10 million +

QSE: Annual t/over btw. R1 million & R 10 million

EME:  Annual t/over of R1 million and less 

 

Ownership:             25 points

(Target for votes= 40% black; 20% black female;

Target for dividends: 30% black; 10% black female)

Targets increase in 2018

Management:          27 points

Skills:                      30 points

Ent & Supp. Dev:    42 points

Socio-Eco:               5 points

Bonus: contributions to promote responsible behavioural changes:  5 pts

Total:                  134 points

Aligned draft published & awaiting comments & finalization

Applies to:

  • Advertising
  • Public Relations
  • Communications
  • Includes social marketing & digital media businesses 

 

Specific exclusions from procurement

 

QSE's have separate scorecard measuring all 6 elements

 

PROPERTY SECTOR

(Published 30 October 2015)

 

Property-owning entities:

Large: R 400 million assets +

QSE: Between R 400 million – R 80 million assets

EME:  Less than R 80 mill assets

 

Service-providers:

Large:  R 50 million t/over +

QSE:  Btw. R 50 million and R 10 million t/over

EME: Less than R 10 mill turnover

 

Estate Agencies:

Large: R 35 mill turnover +

QSE:  Between 2.5 mill – 35 mill turnover

EME:  Less than R2,5 mill turnover

Ownership:             27 points

(target = 25.1% black; 10% black female)

Management:         11 points

Employ Equity:      15 / 19 pts

(depends on type of business)

Skills:                     22 points

Ent & Supp. Dev:   43 points

Socio-Eco:              2 points

Total:                   120 / 124 points

Aligned draft published & awaiting comments & finalization

Applies to:

  • Property development & ownership
  • Property management
  • Professional property services
  • Estate Agents & valuers
  • Conveyancers
  • Excludes mortgage providers

FOREST SECTOR

 

(published 6 November 2015)

 

Large: Annual turnover of R 50 million +

QSE: Annual t/over btw. R10 mill & R 50 million

EME:  Annual t/over of R10 million and less

 

Deemed levels:

All EME's:   Level 4

EME / QSE 51% black owned: Level 2

EME / QSE 100% black-owned: Level 1

 

Ownership:             30 points

(target = 25.1% black; 10% black female)

Management:         19 points

Skills:                      25 points

Ent & Supp. Dev:   47 points

(Targets for procurement to be adjusted annually by government)

Bonus – Compliance with Industry Codes of Contracting:

                               2 points

Socio-Eco:              8 points

Total:                 131 points

Aligned draft published & awaiting comments & finalization

Applies to all businesses engaged in commercial forestry and first level processing of wood products:

  • Growers;
  • Services – harvesting, fire-fighting, etc
  • Fibre – pulp, paper, board, woodchip; etc.
  • Sawmillers
  • Poles
  • Charcoal
  • Excludes: honey, mushroom, herb producers, forestry tourism

 

Same priority elements as generic Codes

 

Sub-race group calculations required for Management & Skills

AgriBEE

 

(published 20 November 2015)

 

Large: Annual turnover of R 50 million +

QSE: Annual t/over btw. R10 mill & R 50 million

EME:  Annual t/over of R10 million and less

 

Deemed levels:

All EME's:   Level 4

EME / QSE 51% black owned: Level 2

EME / QSE 100% black-owned: Level 1

 

Ownership:             25 points

(target = 25.1% black; 10% black female)

Management:         19 points

Skills:                      25 points

Ent & Supp. Dev:    44 points

Socio-Eco:              15 points

Total:                 128 points

Aligned draft published & awaiting comments & finalization

Applies to any entity that derives majority of its turnover from:

  • Primary production of agricultural products;
  • Provision of services to such enterprises;
  • Beneficiation of agricultural products;
  • Storage, distribution, trading of non-beneficiated agricultural products 

 

Same priority elements as generic Codes

 

PETROLEUM PRODUCTS

 

(published as Schedule to Petroleum Products Amendment Act 2003 on 26 April 2004)

 

 

Included as part of Petroleum Products Act

With effect from 31 October 2015, Petroleum Industry, DME is excluding from applying B-BBEE Act.  DME does not need to assess applicants for licences on the basis of B-BBEE and can apply any other criteria as a basis for issuing licences.

 

 

MINING SECTOR

 

(published in 2004 as a Schedule to the Mineral & Petroleum Resources Development Act, 28 of 2002)

 

 

Included as part of Mineral & Petroleum Resources Development Act

With effect from 31 October 2015, Mining Industry, DME is excluding from applying B-BBEE Act.  DME does not need to assess applicants for licences on the basis of B-BBEE and can apply any other criteria as a basis for issuing licences.

 

 

Mining Industry still expected to "continue maintaining compliance with … the Mining Charter".

 

TRANSPORT SECTORS:

  • Aviation
  • Bus & Coach
  • Forwarding & Clearing
  • Maritime
  • Rail
  • Road Freight
  • Public Sector
  • Taxi

 

 

 

With exception of Public Sector & Taxi sub-sectors, these codes have been aligned with the amended generic Codes and submitted to DTI.  We await approval by DTI.  Not yet published

 

FINANCIAL SECTOR

 

 

Aligned draft not published before 15 November 2015 & awaiting repeal by DTI

 

ICT

 

 

Aligned draft not published before 15 November 2015 & awaiting repeal by DTI

 

ACCOUNTANCY

 

 

Aligned draft not published before 15 November 2015 & awaiting repeal

 

CONSTRUCTION

 

 

Aligned draft not published before 15 November 2015 & awaiting repeal.