Minister Davies gazettes amended B-BBEE Forest Sectors codes in terms of section 9(5) of the Broad Based Black Economic Empowerment Amendment Act
The Minister of Trade and Industry, Dr Rob Davies has approved the Amended Forest Sector Code and also directed that it should be reviewed within two years of gazette. The gazette, according to Minister Davies 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 our economy such as furniture industry.
“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 Davies.
Minister Davies 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. Growers sub-sector (plantations, nurseries and indigenous forests)
- Contracting sub-sector (forestry contractors in silviculture, harvesting, fire-fighting services and other forestry contracting services that are not covered by their own Sector Charters)
- Fibre sub-sector (pulp, paper, paperboard, timber board product, woodchip and wattle bark manufactures)
- Sawmilling sub-sector (industrial, structural and mining timber sawmills and match producers)
- Pole sub-sector (pole treatment plants)
- Charcoal sub-sector (charcoal producers)
Minister Davies added that the empowerment of the designated groups which are Broad Based Schemes, Communities and Employment Share Ownership Plans (ESOPs) are priorities 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,” highlighted Minister Davies.
Minister Davies indicated that 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 and therefore it is implemented from the date of publication.
Click on the link to access the Amended Forest Sector Code: http://www.thedti.gov.za/gazzettes/40803.pdf
Enquiries:
Sidwell Medupe-Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
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