Trade and Industry Minister Dr Rob Davies has invited members of the public to provide input and comment on the recently gazetted draft amended Construction Sector Code, which sets a sector target of 35% black ownership.

This target is higher than the ownership target for the generic codes and the second-highest black ownership target, after the 40% black ownership target stipulated by the Media and Advertising Sector Code.

Davies in February repealed the old Construction Sector Code, as it was not submitted before the deadline. Since then, the Construction Sector Charter Council, with support from the Department of Public Works and the Department of Trade and Industry (DTI), has worked on developing a new sector code.

Davies said the draft amended Construction Sector Code was a step towards establishing a new sector code for the construction sector.

“The Construction Sector Code remains one of the key sector codes that affect domestic infrastructural development and, as such, is one of the catalysts for the implementation of broad-based black economic-empowerment (BBBEE) in the country,” Davies noted.

He indicated that the draft amended Construction Sector Code further stipulated that at least 50% of black shareholding needed to be held by professionals to discourage passive shareholding, which was incongruent with the new era of empowerment, which encouraged active participation of black beneficiaries.

The DTI added that the amended Construction Sector Code recognised that the nature of the construction sector wa that it was dominated by joint ventures and outsourcing. However, to ensure that outsourcing does not dilute actual benefits accruing to black people, it stipulates that no more than 25% of the value of a contract can be outsourced to an entity, or entities, with a lower BBBEE status level.

The closing date for the 60-day commentary period is December 28.