In terms of the BBBEE Codes, Sector Codes have equal status to that of any other code, are legally binding on entities in that sector and must address all the elements in the Generic Scorecard. They may deviate on targets and weightings if justified on sound economic principles, sectoral characteristics and empirical research.

 An enterprise in an industry sector governed by a Sector Code will not be entitled to apply its Sector Code to its supplier or enterprise development recipients that are not part of that sector.

 Four Sector Charters have been gazetted as Sector Codes, in terms of Section 9(1) of the BBBEE Act, effective from the following dates:

Tourism Sector Code: 22 May 2009;
Construction Sector Code: 5 June 2009;
Forestry Sector Code: 12 June 2009; and
Transport Sector Code: 21 August 2009.

 In this article, the focus will be on the Transport Road Freight Sub-Sector Code. This Code applies to:

Supply chain management companies;
Logistics companies;
Trucking companies;
Transport management companies;
Transport brokers;
Associated labour brokers;
BEE operators;
Management companies for owner drivers;
South African registered cross-border operators;
Parcel delivery services;
Motor ferry companies; and
Cash in transit companies.

Direct empowerment

Human resource development
– Employment equity

– Skills development

Indirect empowerment

 – Enterprise development

 – Socio-economic development.

What is different are the specific criteria or indicators and related targets and weight points. For example, there is no adjusted recognition for gender calculation. However, the specific scorecard element criteria have been adjusted and points allocated to gender under management control, employment equity and skills development.

 In addition, the socio-economic development element expenditure on programmes that address the following causes will be enhanced by a factor
of 1.25:

HIV/Aids;
Bursaries;
Poverty alleviation; and
F&C industry awareness. 

 Balshaw is the BBBEE specialist and partner-in-charge of Grant Thornton’s Family Business division. He is co-author of “Broad-Based Black Economic Empowerment: Final Codes & Scorecard” and author of various other books.

 E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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