Department of Trade and Industry (DTI)

Durban Branch
1 Margaret Mncadi Avenue, South Beach
Durban, KwaZulu-Natal
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Minister Davies Gazettes the Draft Statement 005 of 2017 for Public Commentary

Minister Davies Gazettes the Draft Statement 005 of 2017 for Public Commentary

1 August 2017 by DTI

The Minister of Trade and Industry Dr Rob Davies invites members of the public to make inputs and comments on the Draft Statement 005 of 2017 within 60 days from the date of publication (21 July 2017). Minister Davies gazetted the Draft Statement 005 of 2017 in terms of section 9 (5) of the Broad-Based Black Economic Empowerment Amendment Act 53 of 2003 as amended by Act 46 of 2013.

The Minister says the Draft Statement 005 seeks to regulate the B-BBEE Verification Industry and to ensure that consistent application across all spheres of B-BBEE Legislation takes place.

“Empowerment Standards have been introduced for B-BBEE Rating Agencies to ensure that Transformation take place within the B-BBEE Verification Industry”, says Minister Davies.

Minister Davies indicates that the terms Approved Regulatory Body and Approved Registered Auditor” are been incorporated.

“The Statement incorporates the removal of the term “Approved Regulatory Body” which was defined as the Independent Regulatory Board of Auditors (IRBA) established by section 3 of the Auditing Profession Act (Act No. 26 of 2005) as well as the removal of the term “Approved Registered Auditor” which was defined as a Registered Auditor approved by the “Approved Regulatory Body” to provide B-BBEE verification services to measured entities, in terms of the approval granted by the Minister of Trade and Industry”, states Minister Davies.

According to Minister Davies, the Statement introduces significant concepts of Standards of Ethical Conduct as well as key concepts of Standards of Education Requirements and Accreditation of Rating Agencies.

Advocacy sessions upon Draft Statement 005 of 2017 will be conducted during the 60 Day Public Commentary period.

Click the link to access the Draft Statement 005 of 2017


Sidwell Medupe-Departmental Spokesperson

Tel: (012) 394 1650

Mobile: 079 492 1774


Issued by: The Department of Trade and Industry

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Overview of the Department of Trade and Industry (the dti)

Vision of the dti

"A dynamic industrial, globally competitive South African economy, characterised by inclusive growth and development, decent employment and equity, built on the full potential of all citizens".

Mission of the dti

the dti ´s mission is to:

  • Promote structural transformation, towards a dynamic industrial and globally competitive economy;
  • Provide a predictable, competitive, equitable and socially responsible environment, conducive to investment, trade and enterprise development;
  • Broaden participation in the economy to strengthen economic development; and
  • Continually improve the skills and capabilities of the dti to effectively deliver on its mandate and respond to the needs of South Africa's economic citizens.

Strategic Objectives of the dti

the dti´s strategic objectives are to:

  • Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation;
  • Build mutually beneficial regional and global relations to advance South Africa´s trade, industrial policy and economic development objectives;
  • Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth;
  • Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner; and
  • Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery.

These five strategic objectives will be achieved through the collective efforts of the dti´s internal divisions and its Council of Trade and Industry Institutions (COTII), which are linked through a value chain to generate public value for the country´s economic citizens and deliver high-quality products and services to the dti´s varied clients and stakeholders. These products and services include policies, legislation and regulations, financial support and investment incentives, information and advisory support, as well as value-added partnerships.

the dti also aims to achieve its objectives through the pursuit of a more targeted investment strategy; improved competitiveness of the economy; broadened economic participation of previously disadvantaged individuals (PDIs) into the mainstream economy; and policy coherence.

Core Themes of the dti

After careful examination of its institutional arrangements and capacity to fulfil its mandate, the dti has clustered its work on the basis of core themes, which collectively seek to promote a more effective and co-ordinated approach to implementation of the dti´s strategic objectives, for an enhanced and long-term impact on the South African economy and its citizenry.

These themes are:

Industrial Development -

focuses on the development and implementation of the upscaled Industrial Policy Action Plan (IPAP 2), which seeks to promote long-term industrialisation and industrial diversification. It further aims to expand production in value-added sectors, places emphasis on more labour-absorbing production and services sectors and the increased participation of historically disadvantaged individuals in the economy, as well as interventions in three diversified clusters, namely:

  • Cluster 1: Metals fabrication, capital and transport equipment, green and energy-saving industries, and agro-processing sectors;
  • Cluster 2: Automotives and components, medium and heavy vehicles, plastics, pharmaceuticals and chemicals, clothing, textiles, footwear and leather, bio-fuels, forestry, paper, pulp and furniture, cultural industries and tourism, and Business Process Outsourcing and Offshoring (BPO&O) services; and
  • Cluster 3: Nuclear, advanced materials and aerospace sectors, to enable the country´s long-term advanced capabilities.

Trade, Export and Investment -

focuses on increasing levels of international trade, foreign direct investment and economic co-operation on regional, continental and international levels. This thematic area also aims to encourage global competitiveness of exports and beneficiation of products, expand market access and develop programmes to encourage trade and investment activities.

It further seeks to provide strategic direction in terms of South Africa´s trade position in multilateral fora, such as the Southern African Customs Union (SACU), Southern African Development Community (SADC) and World Trade Organisation (WTO).

Broadening Participation ?

focuses on developing interventions and strategies that broaden the participation of previously marginalised groups in the mainstream economy.

This thematic area also aims to align the Broad-Based Black Economic Empowerment (B-BBEE) policy with the country´s industrial policy and legislative frameworks, upscale and accelerate delivery of programmes to bolster economic empowerment among previously disadvantaged individuals, the women and the youth.

It further seeks to transform the largely informal economy via Small, Medium and Micro?sized Enterprise (SMME) development and the channelling of support measures to the Co-operatives sector.

Regulation ?

focuses on the development and implementation of a coherent, predictable and transparent legislative and regulatory framework, which facilitates easy access to redress and creates a fair and competitive business environment in South Africa.

Administration and Co?ordination -

focuses on the effective co-ordination and implementation of the Department and its group of specialised agencies´ programmes, as well as integration of the dti´s work into government´s broader Plan of Action, through the cluster system.


Economic Empowerment

the dti provides strategic direction in the development of policies and strategies that promote enterprise growth, empowerment and equity in the economy.

Various initiatives have been undertaken to implement Broad-Based Black Economic Empowerment (B-BBEE), including the establishment of B-BBEE Codes of Good Practice; the development of Sector Charters in Forestry, Tourism, Construction and Transport; accreditation of B-BBEE Verification Agencies; and establishment of the B-BBEE Advisory Council. The focus has also been on developing co-operatives, which operate in the mainly informal and marginalised sector of the economy, as well as empowering women-owned businesses via the provision of financial and business development support services. These programmes involve continuous intergovernmental co-ordination and co-operation with government institutions.

Parliamentary Presentations

The aim of the Department of Trade and Industry (the dti) is to lead and facilitate access to sustainable economic activity and employment for all South Africans. In order to achieve this aim, the dti requires a thorough understanding of the economy, an ability to identify economic opportunities and potential, and monitor and evaluate the status quo in the country on an ongoing basis. The Department makes optimal use of its accessibility to the people of the country via the South African Parliament. Issues of economic transformation and development, and the establishment of an environment conducive to increasing investment potential, enterprise and trade opportunities for economic citizens, are ongoing topics of discussion in Parliamentary Portfolio and Select Committees.

Regular deliberations and consultation with the South African public contribute to the dti achieving government's vision of an adaptive and restructured economy, characterised by accelerated and shared economic growth (via AsgiSA), employment creation and greater equity by 2014.

Industrial Development

The Industrial Policy Action Plan (IPAP) is firmly entrenched in Government's overall policy and plans to address the key challenges of economic and industrial growth and race based poverty, inequality and unemployment. It is a key component of the President's Nine Point Plan and is aligned to the policy perspective of Radical Economic Transformation. It is guided by the vision of the National Development Plan. IPAP 2017 is aligned to the Medium Term Expenditure Framework (MTEF) as well as the Medium Term Strategic Framework. (MTSF)

The IPAP is a product of the Economic Sectors, Employment and Infrastructure Development (ESEID) cluster. The responsibility for its implementation lies with Government as a whole and a wide range of entities, including SOCs.

Trade, Exports & Investment

the dti plays a critical role in the promotion of economic development and meaningful participation in the global economic and trade environment. It achieves this by working to build an equitable multilateral trading system that facilitates development, strengthens trade and investment links with key economies. A significant feature of the dti's international engagement also involves work to support African regional economic integration and development co-operation.

the dti recognises the importance of promoting trade and inward investment, and building trade and investment relations. It focuses on encouraging exports, in order to leverage global growth for the development of the South African economy, through the establishment of collaborative agreements with existing trading partners and dynamic fast-growing emerging markets.

the dti, in partnership with the Provincial Investment Promotion Agencies (PIPAs), undertakes investment and export promotion activities in targeted markets that are aligned to South Africa's international relations and co-operation agreements.

Financial Assistance (Incentives)

the dti provides financial support to qualifying companies in various sectors of the economy. Financial support is offered for various economic activities, including manufacturing, business competitiveness, export development and market access, as well as foreign direct investment.

Legislation and Business Regulation

the dti develops and reviews regulatory systems in the areas of competition, consumer protection, company and intellectual property, as well as public interest regulation. It also oversees the work of national and provincial regulatory agencies mandated to assist the dti in providing competitive and socially responsible business and consumer regulations, for easy access to redress and efficient markets.

the dti Agencies

In addition to its internal capacity, the Department of Trade and Industry (the dti) relies on a group of specialised, regulatory and financial development agencies and institutions in supporting its economic growth, employment and equity ideals, and in delivering products and services to the economic citizens of the country.

These agencies or Council of Trade and Industry Institutions (COTII), include the following:

  • Companies and Intellectual Property Commission (CIPC);
  • Companies Tribunal (CT);
  • National Empowerment Fund (NEF);
  • Export Credit Insurance Corporation of South Africa SOC Limited (ECIC);
  • South African Bureau of Standards (SABS);
  • National Credit Regulator (NCR);
  • National Lotteries Commission (NLC);
  • National Gambling Board (NGB);
  • South African National Accreditation System (SANAS);
  • National Consumer Tribunal (NCT);
  • National Consumer Commission (NCC);
  • National Metrology Institute of South Africa (NMISA);
  • National Regulator for Compulsory Specifications (NRCS)


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Dr Rob Davies
Bulelani Gratitude Magwanishe
Deputy Minister
Lionel October
Director General
Xolelwa Mlumbi-Peter
Deputy Director General: International Trade and Economic Development Division (ITED)
McDonald Netshitenzhe
Acting Deputy Director General: Consumer and Corporate Regulation Division (CCRD)
Sarah Choane
Deputy Director General: Group Systems and Support Services Division
Malebo Mabitje-Thompson
Deputy Director General: Incentive Development and Administration Division
Garth Strachan
Deputy Director General: Industrial Development: Policy Development Division (IDPDD)
Sipho Zikode
Deputy Director General: SEZ and Economic Transformation Division
Riaan le Roux
Acting Deputy Director General: Trade and Investment South Africa (TISA)