Have your say on B-BBEE defence sector code

© Edhar Yuralaits – 123RF.com

“This is a defence industry specific element designed to stimulate local manufacturing and increase global competitiveness. The other key highlight is that for private sector entities in the defence industry must sub-contract no less than 30% of any contract exceeding R30 million to companies owned by the black designated groups. This will enable such companies to be sustainable,” said Minister Davies on Friday.

The process to develop a sector code for the defence sector flows from the launch of the National Defence Industry Council where it was agreed that a team has to be established to develop a sector code.

The team among others comprises of the Ministry of Defence and Military Veterans (DOD), Armscor and the South African Aerospace Maritime and Defence Industries Association (AMD).

The team was established to drive the process of consultation, negotiation and drafting of the sector code.

Minister Davies said the scope of application of the draft sector code is on all entities in the South African defence industry, in its entirety, including national or provincial departments, state owned and private enterprises.

This includes those providing products and services to the state – whether they are procured from local or foreign-owned enterprises, defence manufacturing enterprises, research and development enterprises and other entities, as well as any role-player and stakeholder that might opt in.

Minister Davies said another of the highlights of the sector code is that companies are required to procure at least 60% of products from local companies and provide support for companies that introduce new technology in the industry.

The public has 60 days from the date of gazette to make inputs and comments on the Draft Defence Sector Code. The draft sector code can be accessed on: www.thedti.gov.za/gazzettes/41024.pdf

It is a requirement in terms of the B-BBEE Act that before a sector code is gazetted for implementation it must first be published for 60 days public engagement.