The draft of the Broad Based Black Economic Empowerment (BBBEE) defence sector code has been approved and gazetted for public comment by the minister of trade and industry, Dr Rob Davies.
“This is a defence industry specific element designed to stimulate local manufacturing and increase global competitiveness,” he said, commenting on the draft yesterday (Monday).
According to Davies, the draft sector code concerns all entities within SA’s defence industry, including those providing products and services to the state, defence manufacturing and research and development enterprises.
The draft highlights that companies would be required to procure at least 60% of its products from local companies and provide support for companies introducing new technologies into the sector.
It also notes that the private sector would need to subcontract no less than 30% of any contract which exceeded R30 million to designated black-owned companies.
Members of the public now have 60 days from the date of the gazette to add any input or make comments on the draft.
