An enterprise is rated on a scorecard depending on the industry in which it operates. A measured entity that falls within a particular sector code must be measured or verified based on the sector code and no longer on the basis of the BEE Codes of Good Practice.
Below are the different sector codes as of August 2022, and more may be added to the list as time progresses:
- AgriBEE Sector Codes
- The codes aim to facilitate black economic empowerment in the agricultural sector by implementing initiatives to include Black South Africans at all levels of agricultural activity;
- The codes provide a specialised scorecard which exempts certain entities from complying with the Ownership element.
- Financial Sector Codes
- The codes have introduced an element, bringing the elements to eight in total and not seven as in the General Codes. The extra element is “Access to Financial Services”, which aims to facilitate access to finance for black people and black-owned enterprises.
- Information and Communication Technology Sector Codes (ICT)
- The codes provide that EAP Targets apply to Disabled Training; Skills Training that must be done on Skills in the ICT sector (core & critical skills); Enterprise Development must be spent on a 51% Black Owned ICT Entity; SED must be on ICT Sector Specific Initiatives.
- Property Sector Codes
- The codes introduce 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.
- Chartered Accountancy Sector Codes
- The codes help increase the number of black people, particularly black women entering the profession to reflect the country’s demographic population.
- Integrated Transport Sector Codes
- The codes comprise eight sub-sectors;
- The objective of the codes is to create economic growth through ownership, human resource development, procurement and empowerment in all the elements of the BEE Charter across all modes of transport;
- Large entities, according to the General Codes, are entities with a turnover above R50 million; however, with these codes, large entities are companies with a turnover above R35 million.
- Forest Sector Codes
- The codes seek to deal with transformation challenges in Forest sub-sectors of primary commercial growth, fibre production, contracting, sawmilling, pole and charcoal.
- Marketing, Advertising and Communication (MAC) Sector Code
- The codes have a black ownership target of 45%, which is higher than the 25% target of the general codes.
- Tourism Sector Codes
- The sector has set the target for supplier development at 3% NPAT, which is higher than the 2% of the general codes. Implementing supplier development in the sector will lead to job creation and overall growth.
- Defence Sector Code
- The codes aim to implement measures that will ensure the effective participation of black people in the South African Defence Industry (SADI).
- Construction Sector Codes
- The codes have divided the sector into BEP (Built Environment Professional) and Contractors, with different rules/regulations.
Contact your nearest SEESA Office for assistance with determining if your company falls under a certain BEE sector. Alternatively, leave your details on our website, and we will contact you.
About The Author:
Kopano Moloto started his career at SEESA in 2016. He is currently a Labour and BEE Legal Advisor at the SEESA Polokwane branch.
Resources:
- B-BBEE Charters – www.thedtic.gov.za
- SEESA BEE Training Manual