Government Gazette Staatskoerant

1 202046 A36035 1 AIDS HELPLINE: 0800-0123-22 Prevention is the cureGovernment GazetteStaatskoerantREPUBLIC OF SOUTH AFRICAREPUBLIEK VAN SUID-AFRIKAVol. 570 Pretoria, 28 DecemberDesember 2012No. The Government Printing Works willnot be held responsible for the quality of Hard Copies or Electronic Files submitted for publication purposes2No. 36035 Government Gazette , 28 DECEMBER 2012 IMPORTANT NOTICEThe Government Printing Works will not be held responsible for faxed documents not received dueto errors on the fax machine or faxes received which are unclear or incomplete. Please be advisedthat an OK slip, received from a fax machine, will not be accepted as proof that documents werereceived by the GPW for printing.

2 If documents are faxed to the GPW it will be the sender s respon-sibility to phone and confirm that the documents were received in good the Government Printing Works will also not be held responsible for cancellations andamendments which have not been done on original documents received from INHOUDGENERAL NOTICEA griculture, Forestry and Fisheries, Department ofGeneral Notice1065 Broad Based Black Economic Empowerment Act (53/2003): Codes of Good Practice on Broad-based Black Economic Empowerment .. in terms of Section 9(1) of the B-BBEE Act 53, 2003(DEPARTMENTOFTRADEANDINDUSTRY)CODES OF GOOD PRACTICE ON BROAD-BASED BLACK ECONOMIC EMPOWERMENTW hereas I, Dr Rob Davies, Minister of Trade and Industry:(a)Having issued the Draft Agricultural Sector Code (Draft AgriBEE) for public comment interms of Section 9(5) of the Broad Based Black Economic Empowerment Act (Act No.)

3 53 of2003) on 03 March 2012 in terms of which;(b)the public and interested parties were invited to comment on the Draft Sector Code for60 days from the date on which the Draft Sector Code was published,(c)Now publish the Agricultural Charter as a Sector Code on Black Economic Empowerment interms of Section 9(1) of the B-BBEE Act 53 of notice is effective from the date of publishing and means that the Agricultural Sector Codeis binding on all stakeholders operating in the Agricultural Rob Da les, MPMinister of Trade and Industry11 December 2012 Staatskoerant , 28 DESEMBER 2012No. 360353 GENERALNOTICENOTICE 1065 OF 2012(DEPARTMENT OF TRADE AND INDUSTRY)1 Broad-Based Black Economic EmpowermentSector Code for AgricultureAgriBEEN ovember 20124No.

4 36035 Government Gazette , 28 DECEMBER 20122 TABLE OF CONTENTSTABLE OF OF OF AgriBEE OF GENERAL LAND ECONOMIC QSE SCORECARD4910. RESOLUTIONS BY THE AgriBEE CHARTER COUNCIL - 1211. SIGNATORIES TO THE Gazette OF THE AgriBEE SECTOR , 28 DESEMBER 2012No. 36035531. INTRODUCTIONThis Sector Code is the outcome of the deliberations of the AgriBEE CharterCouncil, following the gazetting of the AgriBEE Transformation Charter inMarch 2008 and the subsequent establishment of the AgriBEE CharterCouncil in December 2008. It takes into account opinions expressed at theIndaba and all previous drafts, and the gazetted Codes of Good Practice forBroad-Based Black Economic Empowerment (the Codes'), as published bythe Department of Trade and Industry (the dti'), February the Broad-Based Black Economic Empowerment Act, No 53 of 2003(the Act'), has guided the development of the AgriBEE Sector Code, itsconception is linked to the joint vision as contained in the Strategic Plan forSouth African Agriculture (the Sector Plan')

5 Of a united and prosperousagriculture Sector designed to meet the challenges of constrained globalcompetitiveness and low profitability, skewed participation,low investorconfidence,inadequate support anddeliverysystems, and poor andunsustainable management of natural resources. This AgriBEE Sector Codederives directly from the Sector's core objective to ensure increased accessand equitable participation in the document has been developed as a Sector Code for the AgriculturalSector in terms of Section 9 of the Act and provides for empowerment in theSector and it includes the AgriBEE Scorecards for large enterprises, andQualifying Small Enterprises (QSE). Where there is doubt, uncertainty orambiguity with respect to the interpretation of this Code, the content of theCodes of Good Practice, as published by the dti, will diversity and uniqueness of sub-sectors within the agricultural Sector isacknowledged.

6 In this respect, where sub-sector charters are developed,these must not be in conflict with this Code and, in turn, are encouraged to beconsistent and in alignment with the AgriBEE Sector contained in the AgriBEE Scorecard and the AgriBEE QSE Scorecardare based on those containedintheBroad-BasedBlack EconomicEmpowerment Codes of Good Practice, as published by the Department ofTrade and Industry, February 2007, as well as on stakeholder inputs,comments and recommendations. Where no substantive reasons for deviationfrom targets contained in the Codes of Good Practice were put forward bystakeholders, targets have largely remained aligned with those contained inthe Codes of Good 36035 Government Gazette , 28 DECEMBER 201242.

7 SCOPE OF scope of the AgriBEE Sector Code shall include any Enterprisewhich derives the majority of its turnover from:The primary production of agricultural products;The provision of inputs and services to Enterprises engaged inthe production of agricultural products;The beneficiation of agricultural products whether of a primary orsemi-beneficiated form; andThe storage, distribution, and/or trading and allied activitiesrelated to non-beneficiated agricultural an Enterprise trades in more than one sector falls undermore than one Sector Code or Section 12 Transformation Charter,the MeasuredEnterprise must be guided by theprinciplesembodied in the Codes of Good Sector Code applies to multinational businesses or SouthAfrican multinationals whose business falls within the scope of theCode as definedin this section.

8 Where a specific regime formultinationals exists in the Codes of Good Practice, this regime as defined in paragraph are encouraged to measuretheir contributions to the seven elements of broad-based BEE ascontained in the AgriBEE paragraph , Enterprises with an annual turnoverof between R5 million and R35 million qualify for BEE compliancemeasurement in terms of the AgriBEE QSE Scorecard. However, itshould be noted that the Minister may, by notice in the Gazette ,adjust the thresholds following appropriate benchmarking studies,sub-sector inputs, other relevant information and consultation withthe major stakeholders in the sector. Any such changes apply tocompliance reports prepared for enterprises after a 12-monthperiod following the gazetting of the paragraph and , Enterprises with an annualturnover of less than R5 million, will be classified as ExemptedMicro Enterprises (`EME's').

9 EME's will enjoy a deemed BEErecognition level of either Level 3 orLevel 4 (as defined in theCodes of Good Practice), and sufficient evidence of qualification asan Exempted Micro-enterprise is an auditor's letter or similar letterissued by an accounting officer or verification agency. However,EME'sareencouragedtocontributeto transformationinagriculture, particularly in the areas of skills development andsocio-economic development and are therefore incentivised toincrease their BEE status by adopting the generic Codes of GoodPractice directive for EME's to move from Levels 3 and 4,respectively, to higher , 28 DESEMBER 2012No. AgriBEE Charter Council will review and adjust the turnoverthresholds for QSE's and EME's periodically in line with relevantinflation 36035 Government Gazette , 28 DECEMBER 201263.

10 Objectives of the Broad-Based Black Economic EmpowermentAct No. 53 of 2003 are to facilitate Broad-Based Black EconomicEmpowerment by:Promotingeconomictransformationinorde rtoenablemeaningful participation of Black People in the economy;achieving a substantial change in the racial composition ofownership and management structures andintheskilledoccupations of existing and new Enterprises;increasing the extent to which communities, workers,co-operatives and other collective Enterprises own and manageexisting and new Enterprises and increasing their access toeconomic activities, infrastructure and skills training;increasing the extent to which Black women own and manageexisting and new Enterprises, and increasing their access toeconomic activities, infrastructure and skills training;promoting investment programmes that lead to broad-based andmeaningful participation in the economy by Black People inordertoachievesustainabledevelopmentan dgeneralprosperity;empowering rural and local communities by enabling access toeconomic activities, land, infrastructure, ownership and skills.