Development of the B-BBEE Sector Code for the Events, Technical, and Production Services Industry

Sources: Gazette 50464 dated 11 April 2024
Updated draft B-BBEE code dated 27 November 2023

The Events, Technical, and Production Services Transformation Forum (ETPTF) published an updated draft B-BBEE code for public comment by 30 April 2024.

The ETPTF is supported by the Department of Sport, Arts and Culture (DSAC) as a line function. The consultations were initiated in 2021 and 2022, through a series of Webinars, followed by 3 Cluster Provincial physical consultations in 2022/23 and 9 Province-to-Province consultations in 2023/24. A draft B-BBEE Sector Code has been developed with significant recommendations including a special focus on the 5 elements of the scorecard listed below:

1. Ownership
2. Management Control
3. Skills Development and Broad-based Black Economic Empowerment
4. Enterprise Development and Broad-based Black Economic Empowerment
5. Socio-Economic Development and Broad-based Black Economic Empowerment.

The draft B-BBEE Sector Code is available on the website of the Department of Sport, Arts, and Culture (www.dsac.gov.za) on the homepage under “announcements”.

All interested and affected companies, organisations, and individuals are invited to participate in the process by reading through the draft and submitting written Recommendations and Comments on the overall draft Sector Code including attention to the Weightings and Targets of each scorecard proposed by the ETPF. The closing date for submissions has been extended for stakeholders to submit on or before 30 April 2024. After the 30th of April, the ETPTF will consider the recommendations and comments received and update the draft for the commencement of the Gazetting stage. Stakeholders will be updated with details of the Gazetting process. Submissions are to be sent to the following email address: “eventstechproduction.sectorcode@dsac.gov.za”.

This revised draft was updated on 27 November 2023 by Forum and is a lengthy 133 pages to read.

The objectives of the Code are:

1. To transform the Event, Technical, and Production Services industry in the manner envisaged.
2. To encourage adherence to the Event, Technical, and Production Services Industry Sector Code.
3. To have an increase in the number of black people who own and control assets in the Industry.
4. To define the scope, principles, and framework in which the Industry will be transformed.
5. Facilitate partnerships in the industry amongst other stakeholder groups (government, labour, civil society, and business) that will institutionalise the transformation of the industry.
6. Introduce and create access for new players in the entire value chain of the industry and improve the competitiveness and efficiency of the value chain of the sector.
7. Intensify campaigns aimed at encouraging the increase in the number of local, national, and international events in the country. Sensitise those entities to utilise existing South African technical and production
   resources that are compliant with the sector code and contribute to such specialised skills and knowledge sets (especially the youth, women, people with disabilities, and those marginalised communities) that will
   grow the industry.
8. To ensure compliance with the existing and future codes and legislation concerning transformation.
9. Build a strong sustainable wholly inclusive industry, capable of contributing to the National Agenda, to GDP, to the employment and deployment of skills.

The industry is made up of sporting, entertainment, recreational, religious, cultural, meetings, conferences, exhibitions, incentives, film, television and audio-visual production, organizational or any other similar activities hosted at a stadium, a venue, a studio, or audio-visual production facility, or within a prescribed area (including the virtual on-line space).

KEY PRINCIPLES

1. The fundamental principle for measuring B-BBEE compliance is that substance takes precedence over legal form.
2. In interpreting the provisions of the Codes any reasonable interpretation consistent with the objectives of the B-BBEE Act as amended and the B-BBEE Strategy must take precedence.
3. The basis for measuring B-BBEE initiatives under the Codes is the B-BBEE compliance of the Measured Entity at the Date of Measurement.
4. Any misrepresentation or attempt to misrepresent a Measured Entity’s true B-BBEE Status will be dealt with in accordance with the provisions as set out in the B-BBEE Act as amended and may lead to the disqualification of the entire scorecard of the entities concerned.
5. Initiatives that split, separate, or divide a Measured Entity as a means of ensuring eligibility as an Exempted Micro-Enterprise, a Qualifying Small Enterprise, or a Start-Up Enterprise may constitute an offense and will be dealt with in accordance with the provisions as set out in the B-BBEE Act as amended.
6. Any representation made by an Entity about its B-BBEE compliance must be supported by suitable evidence or documentation. A Measured Entity that does not provide evidence or documentation supporting any initiative
   must not receive any recognition for that initiative.
7. Wherever a Standard Valuation Method applies to measuring an indicator, the same standard should apply, as far as reasonably possible, consistently in all other applicable calculations in this statement.

APPLICATION OF THE CODES

1. The Sector Code will apply to any entity operating in this industry, which derives its revenue/ turnover from the events and audio-visual sector. Application of the Codes (The Sector Codes will apply to any entity operating in this industry, which derives more than 50% of its revenue/turnover from the events and audio visual sector).
2. The industry will include but is not limited to: 2.1. sporting events, events pertaining to or dealing with the science or art of sports with regard to the requirement of technical and production services.
   2.2. entertainment events, events pertaining to or dealing with the science or art of sporting with regard to the requirement of technical and production services.
   2.3. recreational events, events pertaining to or dealing with the science or art of sporting with regard to the requirement of technical and production services.
   2.4. religious events, events pertaining to or dealing with the science or art of sporting with regard to the requirement of technical and production services.
   2.5. political gatherings, events pertaining to or dealing with the science or the art of politics with regard to the requirement of technical and production services.
   2.6. cultural events, events pertaining to or dealing with the science or the art of politics with regard to the requirement of technical and production services.
   2.7. fairs and events pertaining to or dealing with the science or the art of politics with regard to the requirement of technical and production services.
   2.8. markets, events pertaining to or dealing with the science or the art of politics with regard to the requirement of technical and production services.
   2.9. conferences,
   2.10. exhibitions,
   2.11. film,
   2.12. television and
   2.13. audio-visual productions,
   2.14. business and organizational events (such as a convention, congress, colloquium, forum, symposium, seminar and workshop) or
   2.15. any other similar activities hosted at a stadium, a venue, a studio or audio-visual production facility, or within a prescribed area (including the virtual online space).
   2.16. Any enterprise with an annual Total Revenue of R50 Million or more qualifies as a Large Enterprise and must comply with all of the elements of B-BBEE for the purposes of measurement.