Sector Code Alignment Process

In May, the Department of Trade and Industry (DTI) introduced amendments to the Code of Good Practice in Gazette 42496. These changes are a result of the repeal of the 2013 versions of the codes. While changes will be enforced during the first half of 2020, Sector Codes are expected to align themselves with some of these amendments as early as 1 December 2019.

The DTI provided insight into the subject:
Any proof of B-BBEE Status Level, whether it be a Verification Certificate, Sworn Affidavit or an Exempted Micro Enterprise (EME) Certificate issued by the Companies Intellectual Property Commission (CIPC) on or after 01 December 2019, MUST be measured against the 2019 amended provisions of Code Series 000, Code Series 300, Code Series 400 and Schedule 1 (Gazette 42496). This is as the repeal of the 2013 versions becomes effective on this date. The relevant amendments are applicable to the Amended Generic Codes of Good Practice and all Measured Entities rated as an EME, QSE or Generic Enterprise are bound by it.

A Measured Entity in a sector in respect of which a B-BBEE Sector Code of Good Practice has been issued in terms of Section 9 (1) of the B-BBEE Act as amended, may only be measured for compliance in accordance with that Code. Such entities will therefore not be affected by these amendments. However, where matters are silent within B-BBEE Sector Codes of Good Practice, the amended provisions of Code Series 000, Code Series 300, Code Series 400 and Schedule 1 will apply. B-BBEE Sector Councils are encouraged to initiate an alignment process for their various B-BBEE Sector Codes of Good Practice by 31 May 2020.

While these changes affect most Sector Codes, the Tourism Sector, CA Sector and Transport Sector are not included. The Tourism Sector Council has already published their aligned amendments, the CA Sector Code is still in the draft phase and the Transport Sector Codes still follow the Old Codes, but changes may be implemented soon to this Sector.