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

Codes of Good Practice on Black Economic Empowerment

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

Statement 103 : Recognition of Equity equivalents for multinationals

3. Recognition of Equity Equivalent Programmes


3.1) The Minister may approve certain Equity Equivalent Programmes after the Multinational has consulted with the sectoral line ministry, Premiers or other stakeholders in any government department, provincial government or local government with respect to their equity equivalent proposal.


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 may consider requests for approval of programmes that are not Sector Specific.


3.4) Equity Equivalent Programmes may involve:


3.4.1) programmes that support: the Accelerated and Shared Growth Initiative for South Africa; the Joint Initiative for Priority Skills; the National Skills Development Strategy,


3.4.2) programmes that promote enterprise creation in respect of cooperatives that are: more than 50% owned by black people; or more than 30% owned by black women; or more than 50% owned by members of black designated groups;


3.4.3) 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 to Multinationals subject to a Global Practice.


3.7) Equity Equivalent Programmes may have any of the following as their beneficiaries:


3.7.1) enterprises in which: black people hold more than 50% of the exercisable voting rights and more than 50% of the economic interest; black women hold more than 30% of the exercisable voting rights and more than 30% of the economic interest; and 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.