New BEE code for defence sector aims to speed up transformation and boost growth
The code requires companies to procure at least 60% of their defence materials and technologies from local producers
Trade and industry minister Rob Davies has gazetted the broad-based BEE sector code for the defence sector in a bid to accelerate the pace of transformation in the industry. The code requires companies to procure at least 60% of their defence materials and technologies from local producers. Another highlight is that the black ownership target has been increased to 30%, which is higher than the 25% benchmark of the generic codes. The minister emphasised the importance of localisation to improve industry and grow the economy. “We therefore applaud the defence sector for creating a link between localisation and empowerment in this sector code. “All entities operating in the SA defence industry in its entirety, including national or provincial departments, state-owned and private enterprises, will from the date of gazette of the sector code be measured according to its provisions,” Davies said in a statement on Monday. “This includes those entities providing products and services to the...
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