Broad-based Black Economic Empowerment Act
This section is titled “Status of codes of good practice.”
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- Jurisdiction
- South Africa
- Instrument
- Act or statute
- Citation
- Act 53 of 2003
- Version
- Undated source snapshot
- Language
- en
- Updated
- Official source
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Statute overview
About this statute
This section is titled “Status of codes of good practice.” This provision is headed “Transformation charters”. This text only shows section headings, including regulations, short title and commencement, support services and funding of Council, and definitions. This section defines key terms used in the Act, including “black people,” “broad-based black economic empowerment,” “Council,” “Minister,” “organ of state,” “prescribe,” “public entity,” “strategy,” and “this Act.” This section states the Act’s objectives: to promote broad-based black economic empowerment, economic transformation, wider black participation in the economy, ownership and management by black people, community and worker enterprise ownership, skills training, investment, rural and local empowerment, and access to finance.
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Provisions of Broad-based Black Economic Empowerment Act
Showing 13 of 13
- 10 Verify source ↗
Status of codes of good practice
AI-assisted research summary: This section is titled “Status of codes of good practice.”
10. Status of codes of good practice 11. - 12 Verify source ↗
Transformation charters
AI-assisted research summary: This provision is headed “Transformation charters”.
12. Transformation charters 13. - 14 Verify source ↗
Regulations
AI-assisted research summary: This text only shows section headings, including regulations, short title and commencement, support services and funding of Council, and definitions.
14. Regulations 15. Short title and commencement Support services and funding of Council Definitions - 1 Verify source ↗
In this Act. unless the context indicates otherwise-
AI-assisted research summary: This section defines key terms used in the Act, including “black people,” “broad-based black economic empowerment,” “Council,” “Minister,” “organ of state,” “prescribe,” “public entity,” “strategy,” and “this Act.”
1. In this Act. unless the context indicates otherwise- “black people” is a generic term which means Africans, Coloureds and Indians; “broad-based black economic empowerment” means the economic empower- 10 ment of all black people including women, workers, youth, people with disabilities in rural areas through diverse but integrated socio-economic and people living strategies that include. but are not limited to- 5 15 assets; increasing the number of black people that manage, own and control enterprises facilitating ownership and management of enterprises and productiw assets by communities, workers, cooperatives and other co1lectii.e enterprises; human resource and skills development; achieving equitable representation levels in the workforce: preferential procurement; and investment in enterprises that are owned or managed by black people: in all occupational categories and 20 productive and “Council” means the Black Economic Empowerment Advisory Council estab- lished tly section 4: “members” means members of the Council; ”hlinister” means the Minister of Trade and Industry: “organ of state” means- ( ( 1 ) a national or provincial department as defined (Act No. 1 of 1999); Management Act, 1999 in the Public Finance ( b J a municipality as contemplated in the Constitution: ( c , ) Parliament: It/) a provincial legislature: and ( c ) a constitutional institution listed in Schedule I to the Public Finance 1999 Management Act. (Act No. 1 of 1999): “prescribe” means prescribe by regulation; “public entity” means a public entity listed Finance Management Act. 1999 “strategy” rneans a strategy for broad-based black economic empowerment issued in terms of section 1 1 : and “this Act” includes any code of good practice or regulation made under this Act. in Schedule 2 or 3 to the Public (Act No. 1 of 1999); 0b.jectives of Act - 2 Verify source ↗
The objectives
AI-assisted research summary: This section states the Act’s objectives: to promote broad-based black economic empowerment, economic transformation, wider black participation in the economy, ownership and management by black people, community and worker enterprise ownership, skills training, investment, rural and local empowerment, and access to finance.
2. The objectives etnpo\\’ermrnt bv- of this Act are to facilitate broad-based black economic 25 30 35 10 promoting economic transformation in order to enable meaningful participa- 45 tion of black people in the economy; achie\ing a substantial change in the racial composition of ownership and management structures and in the skilled occupations of existing and new enterprises: increasing the extent to which communities, workers. cooperatives and other 50 collective enterprises own and increasing their access training: manage existing and new enterprises and infrastructure and skills to economic activities, 6 ~~ No. 25899 Act No. 53,2003 GOVERNMENT GAZETTE. 9 JANUARY 2004 BROAD-BASED BLACK ECONOMIC EMPOWERMENT ACT, 2003 (d) increasing the extent to which black women own and manage existing and to economic activities, infrastruc- new enterprises, and increasing their access ture and skills training; ( e ) promoting investment programmes that lead to broad-based and meaningful participation in the economy by black people in order to achieve sustainable development and general prosperity; (f) empowering rural and local communities by enabling access to economic activities. land, infrastructure, ownership and skills; and ( g ) promoting access to finance for black economic empowerment. Interpretation of Act - 3 Verify source ↗
Any person applying this Act must interpret its provisions so as-
AI-assisted research summary: Anyone applying this Act must interpret it to give effect to its objectives and comply with the Constitution.
3. Any person applying this Act must interpret its provisions so as- ( u ) to give effect to its objectives; and ( b ) to comply with the Constitution. Establishment of Black Economic Empowerment Advisory Council 5 10 - 4 Verify source ↗
The Black Economic Empowerment Advisory Council is hereby established.
AI-assisted research summary: The Black Economic Empowerment Advisory Council is established.
4. The Black Economic Empowerment Advisory Council is hereby established. 15 Functions of Council - 5 Verify source ↗
The Council must-
AI-assisted research summary: The Council must advise government, review empowerment progress, and help with related policy documents and partnerships. The Minister must establish the Council’s constitution, and the Minister and Council may amend or make rules in limited ways.
5. The Council must- ( a ) advise government on black economic empowerment; ( 6 ) review progress in achieving black economic empowerment; (c) advise on draft codes of good practice which the Minister intends publishing 20 for comment in terms of section 9(5); ( d ) advise on the development, amendment referred to in section 11; or replacement of the strategy ( e ) if requested to do so, advise on draft transformation charters; and facilitate partnerships between organs of state and the private sector cf) advance the objectives of this Act. that will 25 Composition of Council and appointment of members 6. ( 1 ) The Council consists of- ( a ) the President, who is the chairperson of the Council; ( h ) the Minister, with the Minister’s Director-General as an alternate; ( c ) three other Cabinet Ministers, appointed by the President, with their 30 respective Directors-General as alternates; (d) no fewer than 10 and no more than 15 other members appointed by the President. (2) When appointing members in terms of subsection (l)(d), the President shall have 35 regard to the need for the Council- ( a ) to have appropriate expertise; ( b ) to represent different relevant constituencies including trade unions. business, community-based organisations and academics. (3) In appointing members in terms of subsection (I)(d), the President shall follow an 40 appropriate consultative process. (4) The President shall appoint a Cabinet Minister who is also a member of the Council to act as chairperson of the Council in the President’s absence. Constitution and rules of Council 7. ( I ) The Minister must establish a constitution for the Council. (2) The Minister may amend the constitution of the Council from time to time, after 45 consultation with the Council. (3) The Council may, by resolution, and after consultation with the Minister. make rules to further regulate the proceedings of the Council. 8 No. 25899 Act No. 53.2003 GOVERNMENT GAZETTE, 9 JANUARY 2004 BROAD-BASED BLACK ECONOMIC EMPOWERMENT ACT, 2003 Remuneration and reimbursement of expenses - 8 Verify source ↗
Council members will not be remunerated for their services, but will be reimbursed
AI-assisted research summary: Council members are not paid for their services, but they can be reimbursed for expenses, with the Minister deciding and the Minister of Finance concurring.
8. Council members will not be remunerated for their services, but will be reimbursed for expenses incurred by them in carrying out their duties, as determined by the Minister. with the concurrence of the Minister of Finance. practice Codes of good 9. ( 1) In order to promote the purposes of the Act, the Minister may by notice in the that may Gtrzetrr issue codes of good practice on black economic empowerment include-- ( ( I ) the further interpretation and definition economic empowerment and the interpretation and definition of different categories of black empowerment entities; of broad-based black ( b ) qualification criteria for preferential purposes for procurement and other ( c ) ((1) economic activities: indicators to measure broad-based black economic empowerment: the weighting indicators referred to in paragraph (c); to be attached to broad-based black economic empowerment ( r ) guidelines for stakeholders in the relevant sectors of the economy to draw up transformation charters for their sector: and 5 1 0 15 (f) any other matter necessary to achieve the objectives of this Act. ( 2 ) A strategy issued by the Minister in terms of section 11 must be taken into account 2 0 in preparing any code of good practice. ( 3 ) A code of good practice issued in terms of subsection ( 1) may specify- targets consistent with the objectives of this Act: and the period within which those targets must be achieved. O J ) (4) In order to promote the achievement of equality of women, as provided for in 25 section 912) of the Constitution. a code of good practice issued in terms of subsection ( 1 ) and any targets specified in a code of good practice in terms of subsection ( 3 ) . may distinguish between black men and black women. ( 5 ) The Minister must. before issuing, replacing or amending a code of good practice i n terms of subsection (1)- ( u j publish the draft code of good practice or amendment in the Guzettr for public comment: and ihj grant interested persons a period of at least 60 days to comment on the draft code of good practice or amendment. as the case may be. Status of codes of good practice - 10 Verify source ↗
E\,ery oryan of state and public entity must take into account and. as far as is
AI-assisted research summary: Organs of state and public entities must, as far as reasonably possible, apply relevant codes of good practice when making certain licensing, procurement, sale, and partnership decisions. The Minister must issue a broad-based black economic empowerment strategy and may later change or replace it.
10. E\,ery oryan of state and public entity must take into account and. as far as is reasonably possible. apply any relevant code of good practice issued in terms of this Act In- ((// determining qualification criteria for the issuing of licences. concessions or other authorisations in terms of any law; ( h J developing and implementing a preferential procurement policy: ( c ) determining qualification criteria for the sale of state-owned enterprises; and developing criteria for entering into partnerships with the private sector. I d ) Strategy for broad-based black economic empowerment 11. ( I ) The .Minister- 30 7 - 1 3 40 45 ( ( I ) must issue a strategy ( h i may change or replace a strategy issued for broad-based black economic empowerment: in terms of this section. ( 2 ) A strategy in terms of this section must- ((/) provide for an integrated co-ordinated and uniform approach to broad-based black economic empowerment by all organs of state, public entities. private sector. non-governmental organisations, local communities and other stakeholders: the 50 10 No. 25899 Act No. 53,2003 9 GAZETTE, GOVERNMENT JANUARY 2004 BROAD-BASED BLACK ECONOMIC EMPOWERMENT ACT, 2003 ( b ) develop a plan for financing broad-based black economic empowerment; ( c ) provide a system for organs of state, public entities and other enterprises to economic empowerment plans and to report on prepare broad-based black compliance with those plans; and this (d) be consistent with Act. Transformation charters - 12 Verify source ↗
The Minister must publish in the Gazette for general information and promote a
AI-assisted research summary: The Minister must publish and promote a sector transformation charter if satisfied it was developed by major stakeholders and advances the Act’s objectives. The Department of Trade and Industry must provide the Council with support services and funding, and those funds must be used for the Council’s establishment, operating costs, and a communication plan.
12. The Minister must publish in the Gazette for general information and promote a transformation charter for a particular sector of the economy, if the Minister is satisfied that the charter- ( a ) has been developed by major stakeholders in that sector: and ( b ) advances the objectives of this Act. Support services and funding of Council 5 10 13. (1) The Department of Trade and Industry must provide the Council with the necessary support services and funding out of money appropriated by Parliament for that purpose. 15 (2) The funds referred to in subsection ( l ) , must be utilised for- ( a ) the establishment and operating costs of the Council: and ( h ) the development and implementation of a communication plan on broad- based black economic empowerment. Regulations 20 - 14 Verify source ↗
The Minister may make regulations with regard to any matter that it is necessary
AI-assisted research summary: The Minister may make regulations needed to ensure proper implementation of the Act.
14. The Minister may make regulations with regard to any matter that it is necessary to prescribe in order to ensure the proper implementation of this Act. Short title and commencement - 15 Verify source ↗
This Act is called the Broad-Based Black Economic Empowerment Act. 2003. and
AI-assisted research summary: This provision says the Act is called the Broad-Based Black Economic Empowerment Act, 2003, and it starts operating on a date the President sets by proclamation.
15. This Act is called the Broad-Based Black Economic Empowerment Act. 2003. and comes into operation on a date to be determined by the President by proclamation in the 25 GLl:ette.
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