Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

Domestic Aviation Sub-Sector Code for B-BBEE

2. Vision

2.2 Government Undertakings (to achieve this vision)
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2.2.1Government is an important participant in the industry as it owns a major share of aviation assets and employs large numbers of workers. As such, government policies will be one of the most important factors that contribute towards growth in the industry. Accordingly, government will commit to:

 

2.2.1.1Pursuing policies that will contribute to economic growth, especially foreign trade and tourism, which impact on the growth of the industry.

 

2.2.1.2Develop structures that will ensure inter-governmental co-ordination between government departments to align their programmes with the Transport and Aviation Sector B-BBEE Sub-Sector Code processes. Examples of cross-cutting issues that require interventions across government departments and agencies include:

 

2.2.1.2.1The current shortage of black matriculants with maths and science at higher grade;

 

2.2.1.2.2The current shortage of engineers and artisans across all disciplines;

 

2.2.1.2.3The industrial strategy to develop the country's aerospace components manufacturing industry;

 

2.2.1.2.4Increasing awareness over the transport sector about available government investment incentives; and

 

2.2.1.2.5Monitoring of stakeholder achievements against the indicators in the Scorecard, together with other stakeholders in the proposed Transport Sector B-BBEE Charter Council.

 

2.2.1.3Encouraging and monitoring compliance with existing legislation that may impact on B-BBEE such as the Employment Equity, Skills Development and Competition Acts.

 

2.2.1.4Working together with other stakeholders, to achieve the Transport White Paper's objective of providing affordable transport services. These policies will be informed by an in‑depth review of the legislation that impacts on the cost base and/or competitiveness of the aviation industry.

 

2.2.1.5Reviewing the current policy of limiting foreign ownership in SA Domiciled  Airlines  (in  line with  current  policy)  in order  to facilitate increased investment and job creation in the industry.

 

2.2.1.6Designing an overall framework that will provide that State Owned Enterprises (SOEs) bind foreign suppliers of technology‑intensive products and services to a set of B-BBEE obligations, including ownership, skills development and enterprise development.  This will  require an extension  of  the  offset principle currently used in defence and commercial contracts.

 

2.2.1.7Ensuring that the restructuring of aviation assets to effect new institutional arrangements proceeds in a manner that results in an increase in  black participation at all levels - including shareholding, employment and the procurement of services and goods.

 

2.2.1.8Ensure that all SOEs submit an annual B-BBEE report (over and above their annual reports) that covers achievements in meeting B-BBEE targets. The report should also include information on jobs created/lost.

 

2.2.1.9Consolidating reports and information from all stakeholders and publish an annual report on B-BBEE achievements and job creation across the aviation industry. Stakeholders will be encouraged to use this report to review progress at an annual Transport Industry B-BBEE Forum.