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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

Domestic Aviation Sub-Sector Code for B-BBEE

3.6 Preferential Procurement

3.6.2 Private Sector commits to:

 

 

3.6.2.1 Commissioning, together with other stakeholders, a study  to establish current levels of procurement from B-BBEE companies and identify areas where they can achieve "quick wins" to accelerate B-BBEE.

 

3.6.2.2 Increasing procurement 1  from B-BBEE complaint entities to at least 50% of total measurable procurement for both domestic and foreign owned airlines and general aviation businesses.

 

3.6.2.3 Increasing procurement from QSEs and Exempted Micro Enterprises (EMEs) to 10%, over the next 5 years for both domestic aviation and foreign owned airlines.

 

3.6.2.4 Increasing procurement from 50% Black Owned and 30% Black Women Owned enterprises such that 15% of procurement is sourced from these enterprises, with foreign owned airlines and suppliers sourcing 8% and 6% from black owned and black women owned enterprises, respectively.

 

3.6.2.5 Procurement decisions for foreign owned airlines  are  limited and are often subject to global practices and concluded at Head Office level in the country of origin. Procurement spend is therefore limited to decisions regarding procurement spend that can be made locally by the manager based in South Africa.

 

3.6.2.6 QSEs within this sub-sector commit to procuring a minimum of 40% of total procurement from B-BBEE compliant suppliers.

 

1 Annexure A provides a list of inclusions and exclusions when determining total measurable procurement.