Charters and Sector codes

5th May 2015 communication from the Dti confirms the following:

  1. If your financial year end is before 30 April 2015 and you have not yet completed your verification, you may continue to obtain a verification using the 2007 Codes requirements.  However, if your financial year end is after 01 May 2015, you will be required to use the 2013 Codes requirements, unless the Sector Codes are applicable to you.
  2. If you are measured under a Sector Code, you may continue being rated according to that Code as the transition period has been extended to 31 October 2015.  New Sector Codes will only be effective from 01 November 2015, which means the current sector codes apply until then.
  3. The draft Tourism Sector Code was released for comment on the 30th July 2015.
  4. The draft Marketing, Advertising and Communication (MAC) Sector Code was released for comment on the 4th of September 2015.

Sector Charters introduction

Since the first phase of the Codes of Good Practice on Broad-Based BEE was released in draft form for public comment in December 2004, there has been widespread confusion in the market as to the status of sector transformation charters (also known as industry or sector charters) in relation to the Codes and vice versa.

Purpose of the Codes

Section 9 of the Broad-Based Black Economic Empowerment Act No. 53 of 2003 (BEE Act) legally provides for the issuing of Codes of Good Practice on broad-based black economic empowerment. Besides the dti's Strategy for Broad-Based Black Economic Empowerment and the BEE Act, drivers of transformation charter processes to date, have lacked a standard BEE framework from which to develop charters. Furthermore, some charters were developed even before the BEE Act and the Strategy document were released. Consequently, there exists substantial incomparability amongst charters, with respect to content as well as criteria for measurement. This results in entities in certain sectors with stricter measurement criteria being unfavourably disadvantaged when competing for business with entities in sectors with more lenient measurement criteria.

Status of Charters in Relation to the Codes

Transformation Charters may either be gazetted in terms of section 9 of the BEE Act, or in terms of section 12. Code 000 contained in the Codes of Good Practice includes a Statement on transformation charters as well as guidelines on the gazetting of charters.

A transformation charter gazetted in terms of section 9 of the Act means that the charter has been gazetted as a Code of Good Practice and that it therefore has the same status as the Codes. This effectively means that the charter becomes legally binding on organs of state and public entities.

A transformation charter gazetted in terms of section 12 of the Act expresses an industry's commitment to transformation but is not legally binding on organs of state and public entities.

In cases where transformation charters have not been gazetted as Codes, government will make use of the Codes of Good Practice as a means of BEE measurement

Charters contained in Acts

There are currently two charters which were enacted as part of amendments to Acts in 2001 and 2003. These are the Mining Charter and Scorecard and the Petroleum and Liquid Fuels Charter. The Mining Charter and Scorecard are contained in the Mineral and Petroleum Resources Development Act 28 of 2002, whilst the Petroleum and Liquid Fuels Industry Charter is contained in the Petroleum Products Amendment Act of 2003.

Where acts are amended, government will be bound by them in their interactions with these industries.

Sector Codes gazetted under Section 9(1):

If the majority of the measured entity's turnover is derived as a result of gazetted sector related activities, then the relevant sector code will apply to such measured entity.

Sector Codes

Effective date

Gazette number

Integrated Transport Sector Codes

21 August 2009

Download Government Gazette 32511 here

Forest Sector Code

12 June 2009

Download Government Gazette 32320 here:
Part 1 (Pages 1-24) [PDF]

Part 2 (Pages 25-36) [PDF]

Construction Sector Code

5 June 2009

Download Government Gazette 32305 here [PDF]

Tourism Sector Code

22 May 2009

Download Government Gazette 32259 here [PDF]

Chartered Accountancy Sector Code

10 May 2011

Download Government Gazette 34267
Part 1 [PDF]
Part 2 [PDF]
Part 3 [PDF] Part 4 [PDF]

 Property Sector Code    

 1 June 2012

Download Government Gazette 35400 here

 ICT Sector Code    

 6 June 2012

Download Government Gazette 35423 here

 Financial Sector Charter  26 November 2013 Download Government Gazette 35914 here
 AgriBEE Sector Code  28 December 2012 Download Government Gazette 36035 here