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

Industry Charters

Information and Communication Technology (ICT) Charter

ICT Sector Code for Black Economic Empowerment

Code Series 100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 103: The Recognition of Equity Equivalents (Annexe 102 (A))

3. Recognition of Equity Equivalent Programmes

 

3.1 The Minister of Trade and Industry may, approve certain Equity Equivalent Programmes after the entity applying for recognition of equity equivalents has consulted with the Minister of Communications with respect to their equity equivalent proposal and the Minister of Communications has forwarded a recommendation to the Minister of Trade & Industry.
3.2 Any Equity Equivalent Programme forming part of a Sector Code constitutes an approved programme.
3.3 Equity Equivalent Programmes are preferably Sector Specific, but the Minister of Communications may consider requests for approval of programmes that are not Sector Specific.
3.4 Equity Equivalent Programmes may involve:
3.4.1 Programmes with specific reference to the ICT sector that support initiatives such as:
3.4.1.1 Establishing partnerships with black owned, black empowered, black engendered entities or SMMEs' on matters relating to research and development, including intellectual property in the ICT Sector;
3.4.1.2 Partnering with black owned, black empowered, black engendered entities or SMMEs' in the expansion of manufacturing or assembling plants in South Africa;
3.4.1.3 Establishing partnerships with black owned, black empowered, black engendered entities or SMMEs' in the location of substantial new investments in South Africa; and
3.4.1.4 Establishing partnerships with black owned, black empowered, black engendered entities or SMME's in the placing of substantial new investments in global markets.
3.4.2 Programmes with specific reference to the ICT sector that support:
3.4.2.1 The Accelerated and Shared Growth Initiative for South Africa;
3.4.2.2 The Joint Initiative for Priority Skills;
3.4.2.3 The National Skills Development Strategy;
3.4.3 Programmes that promote enterprise creation in respect of cooperatives that are:
3.4.3.1 More than 50% owned by black people; or
3.4.3.2 More than 30% owned by black women; or
3.4.3.3 More than 50% owned by members of black designated groups;
3.4.4 Any other programmes that promote Socio-Economic advancement or contribute to the overall socio development of the Republic of South Africa.
3.5 Equity Equivalent Programmes must include:
3.5.1 A full description of programme objectives and projected outcomes;
3.5.2 Qualification criteria for participation in the programme;
3.5.3 Timelines for implementation and delivery with milestones against which progress is measurable; and
3.5.4 Details about the sponsors of the programme.
3.6 Equity Equivalent Programmes are limited:
3.6.1 an ICT enterprise or entity, which could suffer inherent commercial harm to its business due to, amongst others, legal, technological or policy barriers, which are incompatible with the sale of equity;
3.6.2 a SOE, and/ or
3.6.3 a SMME, and/ or
3.6.4 Community entities not for profit
3.7 Equity Equivalent Programmes may have any of the following as their beneficiaries:
3.7.1 Enterprises in which:
3.7.1.1 Black people hold more than 50% of the exercisable voting rights and more than 50% of the economic interest;
3.7.1.2 Black women hold more than 30% of the exercisable voting rights and more than 30% of the economic interest; and
3.7.1.3 Black Designated Groups hold more than 50% of the exercisable voting rights and more than 50% of the economic interest; or
3.7.2 Communities, natural persons or groups of natural persons where at least 75% of the beneficiaries are black people and the same percentage of economic value is derived by black people.