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THE NEW TRANSPORT SECTOR CODES: WHAT YOU NEED TO KNOW

The transport sector has been operating under its own set of codes since 2009, but those codes are finally being updated to align with the Department of Trade and Industry's (DTI) Codes of Good Practice. The new codes are expected to be published by the end of the year and will come into effect on March 1, 2024.


What's Changing?

The new codes will make a number of changes to the way that transport companies are evaluated for their Black Economic Empowerment (BEE) status. Some of the key changes include:

  • Ownership Control: EMEs and QSEs will need to calculate their ownership control using the flow-through model. Entities will also be able to gain more points for Black New Entrant, but with slight changes in definition and qualification.

  • Management Control and Employment Equity: These two elements will be combined into one, with a focus on Black Female inclusion. Entities that do not supply their EE Reports will not be able to receive points from Management Control.

  • Skills Development: Entities will only be able to absorb Learners into permanent positions, and targets of absorbed employees will now be set at 5% of Total employees claimed through EE. Entities are also encouraged to allocate a portion of their funds specifically towards supporting higher education initiatives.

  • Enterprise and Supplier Development: Supplier development, Enterprise development and Procurement have now been combined into one element. There are new provisions for entities working with suppliers that are QSEs or EMEs that are 51% Black-owned and 30% Black Female owned.


What Do You Need to Do?

Transport companies should start preparing for the implementation of the new codes now. This includes reviewing their current BEE status and identifying any areas where they will need to make changes. Companies should also work with our consultant to develop a plan for compliance with the new codes.


We're Here to Help

Our team of BEE experts can help you understand the new codes and develop a plan for compliance. We can also assist you with the implementation of your BEE plan. Contact us today to learn more about our services.


Department of Trade and Industry (DTI). (2023, October 4). Integrated Transport Sector B-BBEE Alignment Process. https://www.bbbeecommission.co.za/integrated-transport-sector-code/

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