Navigating Change: The Upcoming Transformation in Transport Sector Codes


Published by: Melanie Rajah

The Transport Industry, a pivotal player in economic dynamics, is gearing up for a significant shift with the imminent update of its sector codes. Operating under its established set of codes since 2009, the transport sector is aligning with the Department of Trade and Industry's (DTI) Codes of Good Practice. The anticipated release of the new codes by the end of this year will bring about transformative adjustments, set to take effect on March 1, 2024.

Key Changes Unveiled:

1.Ownership Control Evolution:
  • EMEs and QSEs face a recalibration in ownership control evaluation, adopting the flow-through model.
  • Enhanced recognition and points for Black New Entrants, accompanied by nuanced adjustments in definition and qualification.
2. Unified Focus on Management Control and Employment Equity:
  • A consolidation of Management Control and Employment Equity into a singular entity.
  • Emphasis on Black Female inclusion within this consolidated framework, with non-submission of EE Reports resulting in points denial for Management Control.
3. Revamped Skills Development Landscape:
  • Entities mandated to absorb Learners exclusively into permanent positions.
  • Targets for absorbed employees set at 5% of Total employees claimed through EE.
  • Encouragement for allocating funds towards supporting higher education initiatives.
4. Integration of Enterprise and Supplier Development:
  • The amalgamation of Supplier Development, Enterprise Development, and Procurement into a cohesive element.
  • Introduction of provisions for collaboration with QSEs or EMEs that are 51% Black-owned and 30% Black Female owned.
Preparing for Change: What Transport Companies Must Do:

As the countdown begins, transport companies are advised to proactively prepare for the impending changes. Key steps include:

1. BEE Status Evaluation:
  • Initiate a comprehensive review of the current BEE status.
  • Identify areas necessitating adjustments to align with the new codes
2. Strategic Planning:
  • Develop a strategic roadmap for implementation, considering the revised criteria.
  • Align business practices with the evolving landscape of Black Economic Empowerment.
3. Documentation Compliance:
  • Ensure timely and accurate submission of EE Reports to secure points for Management Control.
  • Adhere to the newly outlined specifications for Learner absorption.
4. Financial Allocation:
  • Allocate a portion of funds towards initiatives supporting higher education, fostering skills development.
As the transport sector undergoes this transformative journey, proactive adaptation to the revised codes will not only ensure compliance but also contribute to the sector's sustained growth and inclusivity.

The time to navigate change is now, steering towards a future where economic empowerment aligns seamlessly with the wheels of transportation

Kairos B-BBEE Verification Agency (Pty) Ltd 
https://www.facebook.com/kairosbee



Contact us: 033 8151365

Location: Durban, South Africa

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