The Amended B-BBEE ICT Sector Code was recently launched by Minister of Telecommunications and Postal Services, Siyabonga Cwele. The code promises to address past inequality through championing the participation of the previously disadvantaged within the ICT sector.
Cwele also took the opportunity to launch the Broad-Based Black Economic Empowerment ICT Sector Council, which was established in 2015. No matter which sector a B-BBEE Code is being applied to, policy-makers face the challenge of creating a framework that authentically drives participation.
For this reason, the amended code has weighted score in favour of enterprise and supplier development. Cwele is confident that this shift will encourage companies to put concentrated effort into this previously neglected element of transformation.
A key intention of the amended code is to provide “enhanced recognition for certain categories of Black People.”
For this reason, the following criteria have been included:
- Black women should form between 40% and 50% of the beneficiaries of all elements of the scorecard.
- Black people with disabilities, black youth, black people living in rural areas, and black unemployed people should form between 2% and 3% of the beneficiaries of all elements of the scorecard.
The ICT sector has come under focus following the ICT Council’s Sector Monitoring Report, which analysed 200 BEE verification reports. The report is seen as an effective gauge for the status of B-BBEE implementation in the ICT sector, and unfortunately revealed that there is still much progress to be made in industry transformation.
For assistance on complying with the new B-BBEE ICT Sector Code, contact us.