Trade and Industry gazettes Forest Sector Codes

MAY 1, 2017
Trade and Industry gazettes Forest Sector Codes

Trade and Industry Minister Rob Davies has gazetted the Amended Broad-Based Economic Empowerment (B-BBEE) Forest Sector Codes.

Minister Davies also directed the sector codes should be reviewed within two years of gazette.

“Two years from the date of gazette the sector code shall be reviewed to set new targets that will accelerate radical transformation.  The Forestry Sector is one of the sectors that can stimulate and accelerate rural development because most of its operations are primarily situated in rural and under developed areas,” said Minister Davies in a statement.

According to the Minister, the gazette will enable the sector to have transformation guidelines that are aligned to the Amended Codes of Good Practice for the sector that also has a huge impact on other manufacturing industries of the economy such as the furniture industry.

The Minister stated that the scope of application for the Amended Sector Code include all enterprises involved with commercial forestry and first level processing of wood products.

Ownership patterns

In addition, the empowerment of the designated groups which are broad based schemes, communities and Employment Share Ownership Plans (ESOPs) are prioritised under the ownership element in the Amended Forest Sector Code.

“The prioritisation is done to ensure that not only are ownership patterns being changed but also that poverty and income inequalities are addressed. The prioritisation is reflected in the fact that the ownership targets for the designated groups have been set at 7.5 % which is higher than the 3% of the Generic Codes,” said Minister Davies.

The other key highlight of the Draft Forest Sector Code is an increase in allocation of points for enterprise development which is higher compared to those of the Generic Codes.

This is in recognition of the important role the industry has to play in the development and support of black owned Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs). 

No transitional period is provided for the sector code as it is implemented from the date of publication.

The Amended Forest Sector Code can be accessed on: http://www.thedti.gov.za/gazzettes/40803.pdf  .

-SAnews.gov.za