To remove the uncertainty surrounding the implementation of black economic empowerment (BEE) in the South African market place, the Department of Trade and Industry (DTI) yesterday launched its Broad-based Black Economic Empowerment Codes of Good Practice.

Minister of Trade and Industry Mandisi Mpahlwa said at the launch in Johannesburg that government is fully convinced that the release of the codes will address the steadily growing uncertainty in the South African market place surrounding BEE.

“There has been a lack of understanding around the implementation of BEE and the release of the code will put to rest some of the concerns and risks and bring about the sustainability of the market,” Mpahlwa said.

He said that the codes have been formulated in terms of the BEE Act will bring some alignment in terms of the targets for sector-specific charters.

However, Philisiwe Buthelezi, chief director of BEE at the DTI, emphasised that the introduction of the codes does not mean the end of the development of sector-specific charters.

“We just want to align the targets so we can manage the BEE process properly,” she said.

There will be provision for a deviation in the sector-specific charters from the targets as set out in the codes of good practice of no more than 5%.

This will also only be allowed if the minister feels that it is economically viable.

All stakeholders have 60 days in which to comment on the provisions of the codes, before the final codes are adopted and gazetted in March next year.

“I want to encourage South Africans to take up the debate, give their contributions and critique this document,” Mpahlwa said.

The codes are being released in two separate phases to allow government time to properly analyse all the various aspects.

The first phase, which was released yesterday, is concerned with equity ownership and management levels.

The second phase, which Buthelezi said has already been dealt with in the various charters, involves employment equity, skills development, preferential procurement and enterprise development.

The new scorecard recommends that companies should, among other things, aim to achieve BEE equity levels of 25,1%; black management of 40%; procurement from BEE-compliant entities of 50% and; employment equity of 50%.

“The inclusion of clear targets in the scorecard is the result of requests by the private sector that government should play a more active role in coordinating the various charter initiatives and ensure the harmonisation of the targets in the various charters,” Mpahlwa said.

He commented that there are a number of real empowerment deals going on behind the scenes, but that they do not enjoy the same media spotlight as those deals that involve high-profile people.

This is why, he said, it seems like only a few individuals are benefitting from government's broad-based BEE programme.

He also said that big corporates are only wanting to do business with certain individuals and that this is also causing empowerment to be limited.

“I hope that the codes will really provide the possibility to broaden the scope of BEE,” he said.

Mpahlwa added that the DTI is still in the process of establishing guidelines on how BEE should be implemented in small, medium and micro- enterprises, which will be announced in due course.