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AgriBEE INDABA 6 Dec 2005

AgriBEE INDABA 6 Dec 2005. Proposal for an A gri BEE C harter. Index. 5 Stages of AgriBEE process Where are we in recommended process Section 12 and 9 Charters/Codes Structure of draft AgriBEE Charter Tasks for Breakaway Sessions. 5 Stage Process.

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AgriBEE INDABA 6 Dec 2005

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  1. AgriBEE INDABA6 Dec 2005 Proposal for an AgriBEE Charter

  2. Index • 5 Stages of AgriBEE process • Where are we in recommended process • Section 12 and 9 Charters/Codes • Structure of draft AgriBEE Charter • Tasks for Breakaway Sessions

  3. 5 Stage Process • Aug 2002 - driven by the Reference Group • July 2004 - AgriBEE Framework launched by Minister • Oct 2005 - Draft AgriBEE Charter recommended to Minister • Indaba 6,7 Dec • Follow up

  4. AgriBEE Framework process • Wide publicity, including provincial launches • An AgriBEE Steering Committee (SC) appointed to consult stakeholders, lead key strategic approaches and report • Public comments received until Dec 2004 • The SC undertook consultations, as mandated • The dti released BBBEE Codes of Good Practice (CGP) in June 2005 • The SC engaged with CGP directives and utilised them in the development of its recommendations • SC presented draft AgriBEE Charter and large-scale scorecard to Minister 28 Oct 2005

  5. AgriBEE Framework process • Commentary process transparent with 55 written inputs received • Consultation process inclusive, broad, including organised agriculture, labour, youth, women and provinces • AgriBEE Framework is accepted in principle • Charter should be aligned with the CGP • Certain Codes of Good Practice remain presently outstanding, e.g. for SMMEs • Scorecard should run from 2007 to 2017 • Need to publish draft AgriBEE Charter for comment • Need for an Indaba in Dec • Propose first phase: Section 12 Charter, then Section 9 Sector Code

  6. Draft AgriBEE Charter • Draft, including large scale scorecard published on 2 Nov • Negotiations identified with stakeholders • Agri SA • NAFU SA • TAU SA • ABC, SA Processors Assoc, SACOB • Banking Council • Labour • Wine and sugar sectors (legislation) • Women, youth & disabled groups • Indaba planned for 6,7 Dec

  7. AgriBEE Charter negotiations • Scope of the Charter requires refinement • One main sector charter, limited sub-sector Charters • Single balanced scorecard, but weightings taking into account farming/ non-farming • The scorecard requires further interrogation • How to deal with issues affecting implementation, e.g. land restitution • SMMEs need to be addressed

  8. AgriBEE Charter negotiations (cont.) • Need to align other policies, e.g. funding and support with AgriBEE Charter • All stakeholders need to fully digest the CGP • Need for certain clarifications by the dti • need for follow up communication • Impact studies could be done by AgriBEE Council • Cost of implementation to be kept down • Time constraints in preparations and negotiations

  9. Process A C B You are now here

  10. Sector Charter (Section 12) • Expression of commitment to transformation • No Legal Status • Developed by major stakeholders in sector • Advances objectives of Act

  11. Sector Code (Section 9) • To be signed by Minister of Agriculture and industry associations • Independent third party analysis • Justified, defines scope • advances BEE Act • All scorecard elements • consistent with CGP • addresses funding to meet ownership & enterprise development targets • Addresses sector challenges & vision • Adresses Charter Council • It is legally binding

  12. Weighting 20% Targets for voting rights & economic interest for categories of black people 10-25% Bonus points for land transfer contributions --------------------------------- Empowerment starts with improved land access and tenure security Distinction between land and enterprise ownership Voluntary sales of land 30% commercial land target agreed Lead to viable and sustainable enterprises Will develop diversity of enterprise models Ownership

  13. Weighting 10% Exercisable voting rights at board and executive level 40-50%, women 20-25% --------------------------------- Undertaking to promote black participation, incl. Women, at executive and board levels Management Control (see also Employment Equity)

  14. Weighting 10% EE 50%, women 50% -------------------------------- Proactive employment of black, incl. Women, managers Bonus points for employment of disabled and youth Employment Equity

  15. Weighting 20% Investment as % of payroll 3%, bias toward literacy & numeracy Learnerships and interns 3% Qualifying mentorship programmes -------------------------------- Require more resources for expanding human capital pool for sustained productivity , entrepreneurship and skills Skills Development

  16. Weighting 20% 50% --------------------------------- Proactive AgriBEE procurement Annual spend reporting Progressively provide preferential supplier status Preferential Procurement

  17. Weighting 10% Cumulative contribution to enterprise development as % of average nett profit 10%, or 20% of land or assets leased long term leases (>5 years) --------------------------------- Recognise access to support services core to sustainable empowerment Develop operational and financial capacity Financial contribution to enterprise development Lease agricultural land Enterprise Development

  18. Weighting 10% Cumulative contribution to social development as % of nett profit 10%, or land made available to farm workers 10% --------------------------------- Contribute to social development and industry specific initiatives, e.g. housing, recreational and health facilities, transport etc Make agricultural land available to farm workers Rural development and poverty reduction

  19. Each institution fully discloses and reports annually All elements of scorecard M&E centres to be established Link AgriBEE baselines and measurements to census periods Independent AgriBEE Council to be established Targets to be reviewed and corrected every 3 years Comprehensive evaluation after 5 years Monitoring and evaluation

  20. Tasks for Breakaway Sessions • Focus on improvements to the draft Charter • Address specifically: • In principle agreement of the draft Charter • Identify any gaps for attention • How should the Charter cover the value chain • SMMEs • Scorecard weightings/targets where possible • Any further work that needs to be done • A way forward, e.g. planning for implementation, organizational and institutional arrangements, funding • Road shows and further clarification required • April launch of AgriBEE Charter

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