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The Minister of Trade and Industry, Dr Rob Davies has noted the first baseline report for the construction sector that was released by Construction Sector Charter Council (CSCC). The report focuses on progress made on the implementation of a Sector Code and is a requirement in terms of the Broad Based Black Economic Empowerment (B-BBEE) policy. The Minister commend the sector and recognises that this is the first baseline report for the construction sector and the sector can build on this to improve areas where there are still gaps.

“The report shows that there is little participation of black people as owners in large companies. In 2011 over 393 construction Measured Entities has shown less than 10% black ownership. Most of the large entities are hovering around 10 percent ownership level which is lower than the 25 percent ownership target. This means that black people in the sector are not participating as owners in the large construction entities”, said Minister Davies.

Davies highlighted that the other key concern about the report is the fact that there is a decreasing trend in the use of Preferential Procurement and Skills Development especially amongst the Qualifying Small Enterprises (QSEs).
“If you look at the scoring between 2009-2013, there has been a decline on companies scoring on these elements especially amongst the QSEs. This is worrying especially for skills as the survival of the sector depends on the capacity building. If you do not have the people who are skilled means the sector is basically in trouble and will not be able to grow. Both elements are priority in terms of the Amended Codes”, he emphasised.  

According to Minister Davies, the baseline report shall inform the process of alignment of the Construction Sector Code to the Amended Codes of Good Practice which is scheduled to be finalised before the end of April 2015. Areas where the sector is not performing should be given more emphasis to build an integrated and prosperous construction sector.

Entities and associations in the construction sector are encouraged to support CSCC by ensuring that on an annual basis they submit their B-BBEE compliance reports. In addition for accurate and complete reporting the submissions to CSCC should include information over and above that which appears on a B-BBEE certificate. This will assist in measuring progress with regard to transformation not only in terms of B-BBEE levels but rather a comprehensive overview across all pillars, both quantitatively and qualitatively.