AgriBEE: Status Quo and

Way Forward

Theo de JagerDeputy President: Agri SA

17 September 2010

Approaches

• Formal Processes• State led & funded

– Post Settlement in restitution

– LARP

– AgriBEE Charter & Council

– Recapitalisation Program

• Informal Processes• Private initiatives

– Agri-Business• FNB, Halls & Sons, GWK,

etc.

– Commodity Org’s• NWPO, MPO, SAPPO,

Maize Trust

– Farmers Associations• KWANALU, Agri-

Limpopo

Formal Process

• Post Settlement– 90% failure– Community farming– Will cost more to restore than original price– No FA involvement

• LARP– Limpopo, W-Cape, E-Cape, Gauteng, KZN

• Recapitalisation– No FA involvement

Land reform policy in SA

Land reform policy in SA (cont)

Land reform policy in SA:Key policy initiatives, 2004-2009

Sector Participants

OtherStakeholders

(including relevantGovernment Department)

SteeringCommittee

Minister

Establish CharterCouncil

Meet Para 16(Statement 10)

QualificationCriteria

PublicProclamation

of CharterProcess

ConsultationProcess

Meet BEE(Act (s12)

Requirement

Gazette asTransformation

Charter

Apply GenericScorecard

MinisterDti

Applicationfor Gazette asSector Codes

IndependentThird-Party

Review

MeetStatement 10

CriteriaCharterMandate

Negotiationand

DraftingProcess

Sector Codes(SectorSpecific

Scorecards)

Draft Charter Technical

Committee

Does not meet Charter QualificationRequirement

Meet Requirements

FLOW CHART PROCESS FOR GAZETTING SECTOR CHARTERS

Codes Process

Negotiation, Drafting,

Publication

CharterProcessConsultation

31 March 2006

6 Dec 2008

Reasons for slow pace

• Delays in publishing and appointing

• Revisiting of agreements

• Radical demands from government departments

• Conflict on recordkeeping, modus operandi, etc.

• No AgriBEE on Gazetted farms

• Incentives for compliance?

• Consider to stick to generic codes

Private Initiatives

• Farmer Development Conference• Feb. 2010, Somerset West• Commodity driven• 73 Projects• R200 million over 5 years• Equity Schemes (WC, NC, EC)• Agri-Businesses with local farmers• Training institutions

Current Contribution

• Farmer Development Contribution: R200

million over 5 years

• Tenure: 2,8 mil cared for by 40 000 farmers

• 40% less on land values

• Schools, crèches, graveyards, sports fields,

accommodation, food, health care, training,

transport, skills development

Main Challenges

• Govt and Organised Agriculture working in silo’s; no cooperation, no trust

• Tendency not to restructure agriculture but to polarise it

• Corruption, nepotism, maladministration

• High expectations versus non-delivery

• Low profitability and high risk

Solutions• Redesign

• Scientific, research based programNeeds drivenReal reasons for high costsData bases for land reform and BEE

• Appoint capable drivers

• Localise reform – inclusive local forums

• Create SPV for development financing

Thank you