New BEE Targets in 2012 for the Generic Dti Codes and for the Tourism Code

1.1 Dti Generic Codes

Please Note: The targets will increase significantly from February 2012 for the Dti Generic and QSE Codes, so it important to start making provision now for the following elements: Employment Equity and Preferential Procurement.

Targets in this 2nd phase will be:


1.2 Tourism Sector Code

If your organisation falls within the Tourism Sector, then very significantly increased new targets will apply as of May 2012. For example, targets will increase as follows: Ownership – from 15% to 20%, Employment Equity – all levels of Management from between 12 and 17% above the current target levels, Preferential Procurement between 5 and 20%. Going forward, other Sector Codes will also be faced with more challenging targets.

2. Interpretive Guide: Ensuring Proper Preparation for a BEE Verification and Rating

There continues to be issues on interpretation of the Dti Codes, compounded by the introduction of the various Sector Codes.

To start with the Ownership element, did you know:

  • The Codes allow for continued recognition of Black ownership, subject to certain criteria being met, even if the Black shareholder has already exited the business, e.g., through sale or loss of shares, death, etc.
  • The bonus points for ‘black new entrants’, employee share schemes, and co-operatives only apply if the overall target of 25% black economic interest has first been met.
  • Black family trusts do not automatically qualify as acceptable forms of Black ownership, but must first meet several qualifying requirements. In particular, that the trust deed must define the beneficiaries and the proportion of their entitlement to receive distributions; also, the Trustees must not have any discretion over the beneficiary’s entitlement to distributions.

Please contact Melany Bydawell for further information: [email protected].