Broad-Based Black Economic Empowerment
is the acceptance of a transparent, predictable practical and implementable
process of change which will introduce certainty and stability and not an
illusionary absence of change”
Mbeki, 22 September 1994
MESSAGE FROM MINISTER DIDIZA
State of the Nation Address in May this year, President Mbeki announced that the
Department of Agriculture would release a draft AGRIBEE framework document for
discussion by July. I am pleased
today, to present the framework that is another one of the critical building
blocks needed for the attainment of our ideal of a non-racial, non-sexist South
Africa. This AGRIBEE
framework is in line with existing government policy and legislation for redress
of centuries of past racial discrimination and the consequences thereof.
It is another step on the path we undertook when we defined the ideals of
a non-racial, non-sexist society in our Constitution and understood the
obligations that imposed on all of us.
AgriBEE Framework establishes the guiding principles for broad based black
economic empowerment in agriculture in a manner that seeks to build on the
experience of transformation efforts over the past decade.
It was preceded by the consideration of an empowerment study commissioned
by the Department, a range of focussed consultative processes led by a broad
reference group and the experience of developing and implementing the Broadening
Access to Agriculture Thrust and more recently the Agricultural Sector Strategy.
Based Black Economic Empowerment, in Agriculture as in all other sectors, needs
to be understood and used as a means to an end. Given the history of injustices in our country, developed and
enforced over a number of decades, this is a means to redress such imbalances.
for the Agricultural sector is the attainment of the vision agreed to through
the Presidential Working
Group on Agriculture in November 2001 of – A United and Prosperous Sector.
Our vision, which was adopted by all key stakeholders, has as its main
strategic goal “To generate equitable access and participation in a globally
competitive, profitable and sustainable agricultural sector contributing to a
better life for all” and is underpinned by three key strategic objectives.
on the adoption of the Sector Plan we realised that focussed strategies needed
to be implemented in order to transcend the racial divide which existed in the
agricultural sector up until 1994, whilst at the same time creating an enabling
environment which would stimulate growth, much needed competitiveness and
innovation of the primary and secondary agricultural sectors. We
had to take into account the challenges of globalisation, the absence of visible
participation of women in the sector and the appalling conditions and job
threats facing the agricultural farm and industry workers.
We took what we call the “Commodity Approach” which encompassed a
thorough interrogation of the backward and forward linkages within the total
value chain within and between various commodities.
has led us to recognising that more needs to be done to link the agricultural
production and processing activities with the input sectors, the manufacturing
industry, the consumer interests and environmental concerns.
We also realised that whilst progress was being made – albeit slowly
– in the development of commodity strategies, we could not leave the action of
transformation and deracialisation to chance.
In many cases the intended beneficiaries of the deracialisation process
such as farm and industry labour, were not actively involved in the definition
of the desired short, medium and long-term outcomes.
AGRIBEE framework therefore, is intended to assist all the existing and
potential future stakeholders and partners in the Agricultural Sector to engage
in a meaningful dialogue and course of action that can, in the shortest time
possible erase the negative effects of our history of a dual sector and achieve
outputs that can contribute to the higher societal ideal of a better life for
all. It defines the building blocks for the elimination of skewed participation
and inequity in the agricultural sector as a result and consequence of past
racially biased policies and programme for the main components of successful
agriculture. The AGRIBEE framework is complementary to the other key strategic
initiatives of government to bring about growth, equity and employment and to
ensure the sustainable management and use of the natural resources.
tried to ensure that the framework is written simply and unambiguously in order
to assist the many established white farmers and business owners who regularly
approach us for guidance on how they can make their contribution to Black
Economic Empowerment. It
is also intended to assist those of our black citizens who may have lost hope of
ever participating in the agricultural sector as a consequence of alienation
with a comprehensive framework for approaching anew the opportunities that
exist. It is our hope that this
framework will discourage window dressing and rather inspire, clarify and assist
in the acceleration of implementation of existing initiatives and of course
guide the new ones that we expect to see unfold.
next few months we expect this document to promote engagement between the
Department of Agriculture and the various groups black and white, rich and poor
who are involved or who wish to become involved in agriculture on the
commitments that have been included, in order to ensure that our transformation
agenda is unambiguous, comprehensive and reflective of the complexity of the
agricultural sector. For its part
the Department of Agriculture will establish appropriate capacity to engage,
inform and ultimately oversee the implementation of the AGRIBEE.
In November this year, I would like to review the comments and inputs we
have received and make necessary adjustments to this document in order to take
the document to Cabinet for adoption in line with Section 12 of the Broad Based
Black Economic Empowerment Act of 2003.
like to take this opportunity to thank the departmental team, the reference
group and all those individuals who have worked tirelessly to ensure we reach
this stage of the process of implementing black economic empowerment in the
pursue Broad-based Black Economic Empowerment in support of a United and
Prosperous Agricultural Sector
We the undersigned, develop this framework as our sector’s deliberate attempt to redress the historical injustices and empower the historically disadvantaged South Africans in the Agricultural Sector. We affirm AgriBEE as a moral, political, social and fundamental economic imperative for our country’s collective future.
SCOPE OF APPLICATION
applies to the entire value chain in the South African agricultural sector (from
farm field to consumer plate), including all economic activities relating to
provision of agricultural inputs, services, farming, processing, distribution,
logistics and allied activities that add value to agricultural products.
purposes of this framework document, the following terms apply:
refers to all the economic activities
associated with the production and processing of agriculture from the provision
of farm inputs, farming and value addition.
is a sectoral broad-based black economic empowerment framework intended at a
deliberate and systematic support of Black South Africans to actively
participate fully in the agricultural sector as owners, managers, professionals,
skilled employees and consumers.
the Broad-based Black Economic Empowerment
people is a generic term that means Africans, Coloureds and Indians.
black economic empowerment (equitable
access and participation) in agriculture means economic empowerment of all
Black people including women, workers, youth, people with disabilities and
people living in rural areas through diverse but integrated social or economic
strategies, that include, but are not limited to:
Increasing the number of Black people that manage, own, and control
enterprises and productive assets;
ownership and management of enterprises and productive assets by black
communities, workers, cooperatives and other collective enterprises;
Human resource and skills development of Black people;
Achieving equitable representation in all agricultural professions,
occupational categories and levels in the workforce;
Preferential procurement; and
in enterprises that are owned or managed by Black people.
enterprises are categories of enterprises
with representative levels of participation at, ownership, management or control
by Black South Africans, described in the Act.
A “black enterprise” is one that is 50,1% owned by Black person(s)
and where there is substantial management control.
A “black empowered enterprise” is one that is at least 25,1% owned by
Black person(s) and where there is substantial management control.
A “black woman-owned enterprise” is one with at least 25,1%
representation of black women within the black equity and management portion.
A “community or broad-based enterprise” has an empowerment
shareholder who represents a broad base of members such as a local community or
where the benefits support a target group, for example black women, people
living with disabilities, the youth and workers. Shares are held via direct
equity, non-profit organisations and or trusts.
A “cooperative or collective enterprise” is an autonomous association
of persons who voluntarily join together to meet their economic, social and
cultural needs and aspirations through the formation of a jointly owned and
democratically controlled enterprise.
Ownership refers to economic interests, the authority and power to manage
assets, determine policies and direction of the company operations.
Management refers to executive directors, senior management, middle
management and junior management.
Agriculture Support Programme.
is a generic term used to describe
an agricultural business and includes farms business and other related services
that support agriculture.
Industry means those individuals, groups,
cooperatives or companies which were in existence prior to 1994 and had a
predominantly white management, ownership and control structure.
potential and unique agricultural land
[Historically Disadvantaged Individuals] refer
to any person, category of persons or community, disadvantaged by unfair
discrimination before the Constitution of the Republic of South Africa, 1993
(Act 200 of 1993).
means a process
of graduating operators from lower levels of economic activity in agriculture
into sustainable economic viability and integrating and recognising these
operators in the mainstream economy.
The agriculture community within the entire value chain of agriculture
Strategic Plan for South African Agriculture
developed jointly by the Government of the Republic of South Africa, Agri SA
(including Agribusiness Chamber) and NAFU, signed on 27 November 2001.
is used a broad term to describe participants in the entire agricultural value
chain as well as current and potential beneficiaries of AgriBEE.
objectives of AgriBEE are to eliminate racial discrimination in the agricultural
sector through implementing initiatives that mainstream Black South Africans in
all levels of agricultural activity and enterprises along the entire
agricultural value chain by:
(a) Promoting equitable access and participation of Historically
Disadvantaged Individuals in the entire agriculture value chain;
(b) Deracialising land and enterprise ownership, control, skilled occupations
and management of existing and new agricultural enterprises;
(c) Unlocking the full entrepreneurial skills and potential in the sector of
(d) Facilitating structural changes in agricultural support systems and
development initiatives to assist Black South Africans in owning, establishing,
participating in and running agricultural enterprises;
(e) Socially uplifting and restoring dignity of Black South Africans within
(f) Increasing the extent to which communities, workers, co-operatives and
other collective enterprises own and manage existing and new agricultural
enterprises, increasing their access to economic activities, infrastructure and
(g) Increasing the extent to which black women, people living with
disabilities and youth own and manage existing and new agricultural enterprises,
increasing their access to economic activities, infrastructure and skills
(h) Empowering rural and local communities to have access to agricultural
economic activities, land, agricultural infrastructure, ownership and skills.
stakeholders commit to the underlying principles of the AGRIBEE Framework and
undertake to work to create an enabling environment for the empowerment of HDIs
by delivering on the following: -
HIGH POTENTIAL AND UNIQUE AGRICULTURAL LAND
potential and unique agricultural land is a critical but limited and scarce
resource in South Africa. Stakeholders shall work together to ensure that HDIs
have ownership, leasehold and or use of high-potential and unique agricultural
Established Industry undertakes to:-
South African landowners and users undertake to:-
4.2 HUMAN RESOURCES DEVELOPMENT
changes in the global environment require that Stakeholders work together to
ensure greater attention is given to expanding the existing human capital pool
through investing in people, employment equity, skills development and
institutional transformation. Commercial viability in agriculture demands
sustained productivity and high levels of entrepreneurship, long term
commitment, resources and skills. Agriculture in South Africa has a low
absorption rate of skilled and trained labour that is inconsistent with its
needs. This is evidenced by the huge proportion of agricultural graduates not
being able to find employment. High levels of illiteracy in the country are also
experienced within farming communities.
Sector undertakes to:-
Established Industry undertakes to:-
with Employment Equity Act and the Skills Development Act all enterprises in the
sector undertake to:
targets are geared toward achieving a representative management outlook in all
enterprises by year 2014 which in turn will reinforce and consolidate the
ENTERPRISE OWNERSHIP AND EQUITY
to broad based black economic empowerment in agriculture is the ownership of
assets and enterprises within the sector. Historically,
the interpretation of ownership in agriculture has been understood to be
dependant upon ownership of land. This
AGRIBEE framework makes a distinction between land and enterprise ownership. Stakeholders in the sector will work towards the
development and implementation of a diversity of enterprise ownership models in
support of AGRIBEE.
Established Industry under takes to: -
PROCUREMENT AND CONTRACTS
success of the commitments in this AGRIBEE framework is also influenced by the
procurement and contractual behaviour of the retail, tourism, distribution and
consumer sectors. In keeping with the spirit of this framework document all
enterprises in the sector undertake to:
services such as access to finance, infrastructure, information and knowledge
systems, are core pillars of sustainable empowerment initiatives.
The Stakeholders recognise the fact that transformation challenges to
overcome the history of dualism still exist in the agricultural sector.
Established Industry undertakes to:-
people in the sector undertake to:-
EVALUATION AND REPORTING
of broad based BEE and codes of good practise is determined in the Broad Based
Black Economic Empowerment Act of 2003.
list to be finalised at the end of the consultative process]