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

Industry Charters

Information and Communication Technology (ICT) Charter

ICT Sector Code for Black Economic Empowerment

Code Series 100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 103: The Recognition of Equity Equivalents (Annexe 102 (A))

3. Recognition of Equity Equivalent Programmes
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3.1The Minister of Trade and Industry may, approve certain Equity Equivalent Programmes after the entity applying for recognition of equity equivalents has consulted with the Minister of Communications with respect to their equity equivalent proposal and the Minister of Communications has forwarded a recommendation to the Minister of Trade & Industry.
3.2Any Equity Equivalent Programme forming part of a Sector Code constitutes an approved programme.
3.3Equity Equivalent Programmes are preferably Sector Specific, but the Minister of Communications may consider requests for approval of programmes that are not Sector Specific.
3.4Equity Equivalent Programmes may involve:
3.4.1Programmes with specific reference to the ICT sector that support initiatives such as:
3.4.1.1Establishing partnerships with black owned, black empowered, black engendered entities or SMMEs' on matters relating to research and development, including intellectual property in the ICT Sector;
3.4.1.2Partnering with black owned, black empowered, black engendered entities or SMMEs' in the expansion of manufacturing or assembling plants in South Africa;
3.4.1.3Establishing partnerships with black owned, black empowered, black engendered entities or SMMEs' in the location of substantial new investments in South Africa; and
3.4.1.4Establishing partnerships with black owned, black empowered, black engendered entities or SMME's in the placing of substantial new investments in global markets.
3.4.2Programmes with specific reference to the ICT sector that support:
3.4.2.1The Accelerated and Shared Growth Initiative for South Africa;
3.4.2.2The Joint Initiative for Priority Skills;
3.4.2.3The National Skills Development Strategy;
3.4.3Programmes that promote enterprise creation in respect of cooperatives that are:
3.4.3.1More than 50% owned by black people; or
3.4.3.2More than 30% owned by black women; or
3.4.3.3More than 50% owned by members of black designated groups;
3.4.4Any other programmes that promote Socio-Economic advancement or contribute to the overall socio development of the Republic of South Africa.
3.5Equity Equivalent Programmes must include:
3.5.1A full description of programme objectives and projected outcomes;
3.5.2Qualification criteria for participation in the programme;
3.5.3Timelines for implementation and delivery with milestones against which progress is measurable; and
3.5.4Details about the sponsors of the programme.
3.6Equity Equivalent Programmes are limited:
3.6.1an ICT enterprise or entity, which could suffer inherent commercial harm to its business due to, amongst others, legal, technological or policy barriers, which are incompatible with the sale of equity;
3.6.2a SOE, and/ or
3.6.3a SMME, and/ or
3.6.4Community entities not for profit
3.7Equity Equivalent Programmes may have any of the following as their beneficiaries:
3.7.1Enterprises in which:
3.7.1.1Black people hold more than 50% of the exercisable voting rights and more than 50% of the economic interest;
3.7.1.2Black women hold more than 30% of the exercisable voting rights and more than 30% of the economic interest; and
3.7.1.3Black Designated Groups hold more than 50% of the exercisable voting rights and more than 50% of the economic interest; or
3.7.2Communities, natural persons or groups of natural persons where at least 75% of the beneficiaries are black people and the same percentage of economic value is derived by black people.