Draft defence industry empowerment code gazetted

Trade and Industry Minister Dr Rob Davies has approved and gazetted for public comment the draft Broad-Based Black Economic Empowerment (BBBEE) code for the defence industry, the Department of Trade and Industry (DTI) announced on Friday. In line with the BBBEE Act, there will now be a 60-day period for public comment and input before the defence industry code is gazetted for implementation. In his statement about the code, Davies cited two elements as being of particular importance. One is that defence companies will have to obtain 60% of “products” from local companies, while the other is that they must support those enterprises which introduce new technologies into the sector. “This is a defence industry specific element designed to stimulate local manufacturing and increase global competitiveness,” he affirmed. “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.”