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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

Road Freight Sub-Sector Code

2. Vision



2.1 Our overarching vision is to develop a world-class industry, based on seamless integration of all modes and multiple networks, that will grow in size, stimulate economic growth and development, facilitate trade, comply with international safety standards, and deliver efficient and quality services to customers. Our industry will also achieve a significant increase in black participation in ownership, management and employment in companies throughout the industry value chain. We will pursue a growth strategy that prioritises the retention and creation of quality jobs.


2.2 To make this vision a reality will require a deliberate strategy to increase access to skills, capital and opportunities and, therefore, raise the economic value added (or productivity) of every employee and enterprise in the industry. This will require all stakeholders to recruit new black people into the industry and increase their skills (and those of existing employees) to best-practice international levels, while creating a supportive culture for their talents to thrive. It will also require stakeholders to facilitate the creation of new black entrepreneurs (and the development of existing ones) who can participate in economic opportunities throughout the industry value chain.


2.3 The signatories to this document believe that every company in South Africa must embrace B-BBEE voluntarily, recognising that it is an economic imperative to secure a prosperous future for all our country's citizens and, therefore, a larger market in which to trade. We commit ourselves to embark on a major communications and marketing campaign that will take this "Broad-Based BEE Sub-Sector Code for the Road Freight Industry" to every organisation within our industry to ensure maximum participation by all stakeholders.


2.4 Accordingly, all private sector stakeholders who commit themselves to this Sub-Sector Code agree to have their B-BBEE achievements (in terms of the indicators in the Balanced B-BBEE Scorecard for the Road Freight Industry) rated by an independent B-BBEE verification agency or company that is accredited by the Department of Trade and Industry (DTI). This is in line with the Accelerated and Shared Growth initiative for South Africa (ASGISA) which aims to improve the level of procurement from black enterprises by supporting the use of the B‑BBEE Codes of Good Practice. The independent B-BBEE verification of entities involved in the road freight industry will go a long way towards eliminating misrepresentation or fraudulent practices in the industry.


2.5 Government undertakings (to achieve the vision)


2.5.1 Develop and implement a programme to substantially increase investments in road infrastructure to eliminate current backlogs over the next decade with funds from the fiscus, parastatals, road users and the financial industry.


2.5.2 Set up a dedicated road infrastructure fund to finance the road component of these investments and ensure that the National Roads Agency (NRA) and provincial government departments maximise employment opportunities through the use of labour-intensive methods in the maintenance and expansion of road infrastructure. This is reflective of the labour-absorbing projects promoted in ASGISA.


2.5.3 Commit to facilitate growth by ensuring that the industry is attractive to investors and free of unnecessary regulation and ensure that over­ regulation does not impede B-BBEE initiatives in the industry.


2.5.4 Collaborate with all stakeholders to develop a strategy to grow the industry and create quality jobs by promoting the outsourcing of non­ core transport and logistics operations of businesses. Businesses should give preferences to their own employees in the event of such activities/transactions.


2.5.5 Engage relevant governmental departments such as the DTI and South African Revenue Services (SARS) and review the current tax laws (Fiscal policy), which make it difficult for small Black operators to enter the industry.


2.5.6 Effectively implement and monitor the Road Transport Quality System (RTQS) and ensure compliance.


2.5.7 Enforce and monitor compliance with existing legislation that may impact on BEE such as the Employment Equity (EE), Skills Development and Competition Acts.


2.5.8 Ensure that all parastatals and public sector agencies submit an annual B-BBEE report (within their annual reports) that covers achievements in meeting B-BBEE targets. The report should also include information on jobs created/lost.


2.5.9 Publish an annual report on B-BBEE and job creation within the road freight industry that consolidates reports, B-BBEE verification and other information from all stakeholders.


2.5.10 Publish an annual report on the jobs created through the labour-intensive road construction programme.


2.6 Labour Undertakings (to achieve this vision)


2.6.1 Investigate opportunities to establish collective investment vehicles that will make investments in the sector.


2.6.2 Educate members to ensure compliance with existing legislation e.g. the Employment Equity, Skills  Development, Labour Relations and Basic Conditions of Employment Acts, and to understand the relevant channels to deal with instances of non-compliance.


2.6.3 Educate members with regard to the agreements contained in the Growth and Development Summit (GOS) in order for them to participate in the promotion of local content and/or procurement and support the Proudly South African campaign.


2.7 Industry Undertakings (to achieve this vision)


2.7.1 To form collaborative relationships with organisations such as Proudly South African, Department of Trade and Industry  (DTI) and other stakeholders as well as to promote the economic benefits of utilising and growing Black Economic Empowerment  (BEE) compliant by the Road Freight Industry companies. The signatories of this Sub-Sector Code are of the view that the sector should endeavour to facilitate the realisation of these  commitments  by monitoring contributions to B­ BBEE. The evaluation of these  contributions should be conducted through Commitment Evaluation Matrix provided in Appendix C.