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South Africa: Public Comment Sought on Draft Construction Sector Code
Source: www.sanews.gov.za
Source Date: Monday, December 12, 2016
Focus: Electronic and Mobile Government, ICT for MDGs, Knowledge Management in Government, Internet Governance
Country: South Africa
Created: Dec 12, 2016

Among the unique features of the draft sector code is that the target for black ownership is set at 35% (32.5% for the first four years of implementation, and thereafter 35%). This is higher than the ownership target for the Generic Codes and it is the second highest black ownership target after the black ownership target of 40% of the Media and Advertising Sector Code (MAC).

The public has a 60-day opportunity to comment on the draft sector code until 28 December 2016.  

The draft was gazetted in terms of Section 9 (5) of the Broad Based Black Economic Empowerment (B-BBEE) Act 53 of 2003, as amended by B-BBEE Act 46 of 2013.

In February, Minister Davies repealed the old Construction Sector Code because it was not submitted on time to meet the deadline. Since then, the Construction Sector Charter Council, with the support of both the Ministries of Public Works and of Trade and Industry, worked on developing a new sector code.

The sector code also stipulates that at least 50% of black shareholding needs to be held by professionals, so as to discourage passive shareholding, which is in consistent with the new era of empowerment that encourages active participation of black beneficiaries.

The Amended Construction Sector Code recognises that the nature of the construction sector is dominated by joint ventures and outsourcing. However, in order to ensure that outsourcing does not dilute the actual benefits accruing to black people, it stipulate that no more than 25% of the value of a contract can be outsourced to an entity or entities with a lower B-BBEE status level.

The public can access the gazette on http://www.thedti.gov.za/gazzettes/40375.pdf to comment on the sector code. 

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