• 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.

• 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.

Part 2 (Pages 25-36) [PDF]

• 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.

• 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.

• 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.

• After an agreement, endorsed by the Minister of Trade and Industry and Minister of Finance, stakeholders in the Financial Services Sector agreed that the Financial Services Charter be gazetted in two phases. On the 17 December 2010 the Phase I of the Financial Services Sector charter was gazetted in terms of Section 9 (5) for public comments.
• One of the key unique features of the Phase I Draft Financial Sector Code is an introduction of an extra element which makes it eight (8) in total and not seven (7) as in the Generic Codes. The extra element is called Access to Financial Services, which aims to facilitate access to finance for black people and black people owned enterprises.
• Qualifying Small Enterprises in the financial sector must select any five elements of the eight (8) elements and not four (4), which is what is stipulated in the Generic Codes.
• Phase II will provide further details on all aspects of the charter including issues of Access to Financial Services, Empowerment Financing, Enterprise Development and some aspects of measurement of Black ownership.

• Phase II of the FSC introduces additional two elements; Empowerment Financing and Access to Financial Services. These elements are intended to broaden the transformation process by making financial services accessible to the previously unbanked and undeserved,' he said
• The set target for ownership is 25% with Direct Portion being 15% and the Indirect Portion 10%. Local entities have an option of accomplishing an outright 15% direct ownership or through a combination of 10% direct and a maximum of 5% of the portion by way of Equity Equivalents. The 5% should be used for enterprise development and other developmental initiatives. Foreign Banks may accomplish the entire 25% ownership target by way of Equity Equivalents.
• The other key highlight of the Charter is that Qualifying Small Enterprises in the Financial Service sector must select any five (5) elements of the eight (8) elements and not four (4), which is what is stipulated in the Generic Codes.

Download Government Gazette No. 35092 (Part 2) here [PDF]

• Inputs and comments are invited on the Draft Information and Communication Technology Charter effectively from 10 June 2011 to 10 August 2011.
• 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.

• 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.

Rectification notes, Government Gazette 33739