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

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

Road Freight Sub-Sector Code

3. Indicators of Empowerment

3.7 Enterprise Development
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3.7.1Our vision is to create, nurture and grow viable BEE enterprises within the industry while increasing opportunities available to existing companies.

 

3.7.2Government Commits to:

 

3.7.2.1Investigate opportunities to enter into creative joint ventures with BEE companies.

 

3.7.3The Private Industry Commits to:

 

3.7.3.1Pro-actively seek opportunities to enter into joint ventures (and other forms of alliances) and make direct investments in BEE companies.

 

3.7.3.2Investigate opportunities to outsource non-core activities such as workshops, certain maintenance functions, security services and subcontract certain transport activities to BEE companies.

 

3.7.3.3Enterprise Development Contributions: Ensure a minimum of 3% of Net Profit After Tax (NPAT) is directed towards enterprise development initiatives.

 

3.7.3.4QSEs within this sector aspire to make contributions to enterprise development which will amount to 2% of NPAT evaluated annually over the next 5 years.

 

3.7.3.5Enterprise Development Contributions: Endeavour to pay suppliers within 15 days of the date of invoice. The amount of the invoices will be recognisable as enterprise development contributions.

 

3.7.3.4Measurement Principles and Application of the Sub-Sector Code

 

3.7.4.1Measurement principles associated with the enterprise development element are contained in Statement 600 of Code 600 of the Generic Codes of Good Practice.

 

3.7.4.2Qualifying contributions for the enterprise development element are contained in Annexure 600 (A) - Benefit Factor Matrix of the Statement 600 of Code 600 of the generic Codes of Good Practice.

 

3.7.4.3The formulae required in the determination of the enterprise development score are contained in Annexure 600 (A) of Statement 600 of Code 600 of the Generic Codes of Good Practice.

 

3.7.4.4Measurement principles required in evaluating the enterprise development contributions made by QSEs within this sector are contained in Statement 806 of code 800 of the Generic Codes of Good Practice.