Transport Sector Codes – What’s happening?

Transcend reported on updates on the Transport sector Codes on 31 August 2023. 

What’s happened since then? 

• The Council in conjunction with the Department of Transport facilitated B-BBEE Alignment sessions which took place in September 2023 in Midrand.  
• A number of key resolutions were proposed by the Council during these consultative sessions and the draft scorecards were presented.  
• The Council believes that these ‘key resolutions’ will bring about the much-needed change required in an untransformed sector and will compel all companies in the Transport Industry to supplement budgets for Skills Development and Enterprise and Supplier Development.  
• Priority will need to be given to human capital resourcing and alignment to the Management Control pillar.  
• Companies will need to have a serious rethink regarding existing ownership structures as these targets are set to increase.  
• Working group sessions were hosted during the month of October 2023 whereby stakeholders who wished to form part of the consultative alignment process were invited to participate and provide recommendations in the various subsector meetings. 
• All recommendations needed to be supported by empirical evidence and submitted in writing to the BEE Charter Council for further deliberations.

What can we expect? 

Timelines:  

• It was previously communicated during alignment sessions with industry stakeholders that the Draft Codes would initially be issued for public commentary by January 2024 and later by the end of March. Unfortunately these timelines have not been met.

Council Initiatives:  

• The Council is currently reviewing all written recommendations that have been received and is in the process of drafting and aligning the Draft Integrated Transport Sector Codes for public comment.  

Changes in Codes: 

• The Draft B-BBEE Scorecards that have been presented at the working group sessions are significantly different from the 2016 Draft Scorecard 
• This will have a major impact and shift on your B-BBEE level obtained against the 2009 Old Codes. The key resolutions that have been proposed by the Council are quite disruptive and present radical changes that are aimed at shaking up the transport sector.  

How to navigate your BEE scorecard in a changing landscape: 

1. Planning is key 
2. The New Codes are unlikely to have a transition period and will become immediately effective 
3. Companies will need to manage their B-BBEE strategies carefully, depending on their year-end and the effective date of new legislation 
4. This means planning the B-BBEE scorecard on existing Codes, but making provision to adopt potential new amendments 
5. Remain up to date with changes; speak to our consultants to stay abreast of developments; develop a B-BBEE strategy that meets the Transport Sector transformational objectives, regardless 
6. Build flexibility and risk management into your B-BBEE strategy 
7. Understand the potential impact the new Codes could have on your B-BBEE budget and B-BBEE contributor status 

Status update of the Transport Sector Codes

The Transport Sector has been anxiously awaiting the release of the draft sector codes. Anticipated deadlines communicated by the Transport Sector Council have not been met which has created uncertainty on how companies in the sector are required to manage and develop their B-BBEE Strategies and assign resources.

The council have concluded two rounds of alignment sessions with stakeholders and have welcomed their written feedback. There are some significant resolutions which have been communicated during these sessions which will undoubtedly affect many companies operating in the sector and these companies need to be prepared for a major shift in their B-BBEE level.

The council have not met their previously communicated deadline release of the draft codes for public commentary. It is not certain when the Draft Transport Sector Codes will be submitted to the Department of Trade, Industry and Competition but this space needs to be closely monitored as discussions unfold.

Contact us today and let us help you transcend your B-BBEE journey.