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Opportunities under the new
BEE Forestry Sector BEE Code

May 2017

“I have a small black-owned business providing timber and
poles to contractors and supply shops. I understand that
the new Forestry Sector BEE Code is aimed at creating more
opportunities for businesses working in this sector. Is this so?”

The amended Forestry Sector BEE Code (“Amended Forestry Code”)
has been gazetted and is in force without a transition period. This
means that all enterprises in this sector will immediately upon their
next BEE rating be required to meet the requirements of the Amended
Forestry Code. Certificates issued under the old Forestry Sector Code
will still be valid until their expiry 12 months after their issue date.

The Amended Forestry Code applies to all enterprises involved in
commercial forestry and first level processing of wood products, and
covers sub-sectors such as growers, forestry contractors, sawmilling,
timber board and paper producers, pole treatment plants, charcoal
producers, and non-timber enterprises such as honey, medical plant
producers and forestry tourism enterprises.

The Amended Forestry Code prioritises the empowerment of
designated groups, such as broad-based schemes, employment share
ownership plans and communities, under the ownership element. This
is evidenced by the higher ownership targets for designated groups
(7.5%) from the 3% under the Generic BEE Codes of Good Practice.
The Amended Forestry Code is targeted towards rural development as
generally most enterprises in this sector tend to be situated in rural and
under-developed areas.

The Amended Forestry Code also provides for an increase in the
allocation of points for enterprise development emphasizing the focus
on the development and support of black-owned Exempted Micro
Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) in this
sector. Interposed throughout the Amended Forestry Code are further
elements aimed at promoting these objectives, such as the provision
for recognition of unincorporated joint ventures, linkages between
enterprise and supplier development and a focus on the growth of
black women-owned enterprises.

If you review the objectives of the Amended Forestry Code it would
appear that a small black-owned business such as yours that works in
this sector, is ideally positioned to capitalize from the increased focus

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