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

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

Bus Commuter and Coach Services Sub-Sector Code for B-BBEE

3. The Bus Commuter and Coach Services Sub-Sector B-BBEE Scorecard

3.2 Indicators of empowerment

3.2.1 Ownership

3.2.1.2 Stakeholder Undertakings
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3.2.1.2.1Government aims to:

 

3.2.1.2.1.1Clarify public transport policy with specific reference to the funding model; targeting of subsidies, growth of the industry, future of the negotiated/tendering system and so forth.

 

3.2.1.2.1.2In the design of tenders/negotiated contracts make provision for small operators, women enterprises and other designated groups.

 

3.2.1.2.1.3Engage public and private sector funding agencies to develop innovative funding mechanisms for B-BBEE companies seeking to invest in  the sector.

 

3.2.1.2.1.4Ensure that policies are in place to facilitate the entry of new players into the entire industry, including subsidized buses, cross border transport and domestic long distance. This will require co-ordination of initiatives between the DOT, the C-BRTA and the provincial operating license boards to  review  legal  impediments  that  may  prevent  small  operators from entering the industry.

 

3.2.1.2.2        Industry ownership measures include the following:

 

3.2.1.2.2.1        ECONOMIC INTEREST

 

3.2.1.2.2.1.1Measured entities within the bus commuter industry, will achieve maximum points when the percentage of the total issued shares held by black persons exceeds 35% - the applicable direct shareholding is 25% for the coach services industry

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3.2.1.2.2.1.2Measured entities will achieve maximum points when the portion of the total shareholding (i.e. the number of black women shareholders expressed as a percentage of the total shareholding) is or exceeds 10% of the total shareholding held by black women shareholders - The applicable percentage for the coach industry is equal to or greater than 10%; and

 

3.2.1.2.2.1.3Black natural people - A measured entity, will achieve maximum points when the portion of the total shareholding held by black natural persons exceeds 2.5%.

 

 

3.2.1.2.2.2VOTING RIGHTS

 

3.2.1.2.2.2.1A measured entity will achieve maximum points if more than 35% vote of the total voting rights is held by black shareholders. The applicable percentage for the coach industry is greater than 25% + 1 vote;

 

3.2.1.2.2.2.2A measured entity in the bus commuter industry will achieve maximum points if 10% or more of the total voting rights are held by black women shareholders. The applicable percentage for the coach industry is greater than 10%;

 

3.2.1.2.2.2.3For Qualifying Small Enterprises (QSEs) as defined in this charter, the following criteria and targets shall apply:
•Economic interest in the hands of Black people, for which the target will be 35% for the commuter industry and 25% for the coach industry;
•Voting rights in the hands of Black people, for which the target will be 35% for the commuter industry and 25% + 1 vote for the coach industry; and

 

3.2.1.2.2.2.4In order to assist in ownership transformation, the industry is committed to developing creative funding mechanisms, e.g. vendor finance and earn-in models, to facilitate funding for companies.