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202046—A 36035—1 AIDS HELPLINE: 0800-0123-22 Prevention is the cure Government Gazette Staatskoerant REPUBLIC OF SOUTH AFRICA REPUBLIEK VAN SUID-AFRIKA Vol. 570 Pretoria, 28 December Desember 2012 No. 36035 N.B. The Government Printing Works will not be held responsible for the quality of “Hard Copies” or “Electronic Files” submitted for publication purposes

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Page 1: Government Gazette Staatskoerant · 202046—A 36035—1 AIDS HELPLINE: 0800-0123-22 Prevention is the cure Government Gazette Staatskoerant REPUBLIC OF SOUTH AFRICA REPUBLIEK VAN

202046—A 36035—1

AIDS HELPLINE: 0800-0123-22 Prevention is the cure

Government GazetteStaatskoerant

REPUBLIC OF SOUTH AFRICA

REPUBLIEK VAN SUID-AFRIKA

Vol. 570 Pretoria, 28 DecemberDesember 2012 No. 36035

N.B. The Government Printing Works willnot be held responsible for the quality of“Hard Copies” or “Electronic Files”submitted for publication purposes

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2 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

IMPORTANT NOTICE

The 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. 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 order.

Furthermore the Government Printing Works will also not be held responsible for cancellations andamendments which have not been done on original documents received from clients.

CONTENTS • INHOUD

GENERAL NOTICE

Agriculture, Forestry and Fisheries, Department of

General Notice

1065 Broad Based Black Economic Empowerment Act (53/2003): Codes of Good Practice on Broad-based Black Economic Empowerment ............................................................................................................................................... 3 36035

GazetteNo.

PageNo.No.

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Issued in terms of Section 9(1) of the B-BBEE Act 53, 2003

(DEPARTMENTOFTRADEANDINDUSTRY)

CODES OF GOOD PRACTICE ON BROAD-BASED BLACK ECONOMIC EMPOWERMENT

Whereas I, Dr Rob Davies, Minister of Trade and Industry:

(a) Having issued the Draft Agricultural Sector Code (Draft AgriBEE) for public comment in

terms of Section 9(5) of the Broad Based Black Economic Empowerment Act (Act No. 53 of

2003) on 03 March 2012 in terms of which;

(b) the public and interested parties were invited to comment on the Draft Sector Code for

60 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 in

terms of Section 9(1) of the B-BBEE Act 53 of 2003.

This notice is effective from the date of publishing and means that the Agricultural Sector Code

is binding on all stakeholders operating in the Agricultural Sector.

Dr Rob Da les, MPMinister of Trade and Industry

11 December 2012

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 3

GENERAL NOTICE

NOTICE 1065 OF 2012

(DEPARTMENT OF TRADE AND INDUSTRY)

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Broad-Based Black Economic Empowerment

Sector Code for Agriculture

AgriBEE

November 2012

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TABLE OF CONTENTS

TABLE OF CONTENTS 21. INTRODUCTION 32. SCOPE OF APPLICATION 43. OBJECTIVES 64. DETERMINATION OF AgriBEE STATUS 85. ELEMENTS OF EMPOWERMENT 9

5.1. OWNERSHIP 95.1.1 GENERAL OWNERSHIP 95.1.2. AGRICULTURAL LAND OWNERSHIP .11

5.2. MANAGEMENT CONTROL 135.3. EMPLOYMENT EQUITY 145.4. SKILLS DEVELOPMENT 145.5. PREFERENTIAL PROCUREMENT 175.6. ENTERPRISE DEVELOPMENT 185.7. SOCIO ECONOMIC DEVELOPMENT 21

6. GOVERNANCE 247. DEFINITIONS 258. AGRIBEE SCORECARD 399. AGRIBEE QSE SCORECARD 4910. RESOLUTIONS BY THE AgriBEE CHARTER COUNCIL - 12

11. SIGNATORIES TO THE GAZETTE OF THE AgriBEE SECTOR CODE.57

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1. INTRODUCTION

This 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 2007.

While 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') of a united and prosperousagriculture Sector designed to meet the challenges of constrained globalcompetitiveness and low profitability, skewed participation, low investorconfidence, inadequate support and delivery systems, 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 Sector.

This 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 prevail.

The diversity and uniqueness of sub-sectors within the agricultural Sector isacknowledged. 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 Code.

Targets contained in the AgriBEE Scorecard and the AgriBEE QSE Scorecardare based on those contained in the Broad-Based Black 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 Practice.

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2. SCOPE OF APPLICATION2.1. The scope of the AgriBEE Sector Code shall include any Enterprise

which 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 products.

2.2. Where an Enterprise trades in more than one sector i.e. falls undermore than one Sector Code or Section 12 Transformation Charter,the Measured Enterprise must be guided by the principlesembodied in the Codes of Good Practice.

2.3. This Sector Code applies to multinational businesses or SouthAfrican multinationals whose business falls within the scope of theCode as defined in this section. Where a specific regime formultinationals exists in the Codes of Good Practice, this regime willapply.

2.4. Enterprises as defined in paragraph 2.1 are encouraged to measuretheir contributions to the seven elements of broad-based BEE ascontained in the AgriBEE Scorecard.

2.5. Notwithstanding paragraph 2.4, 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 adjustment.

2.6. Notwithstanding paragraph 2.4 and 2.5, Enterprises with an annualturnover of less than R5 million, will be classified as ExemptedMicro Enterprises (`EME's'). EME's will enjoy a deemed BEErecognition level of either Level 3 or Level 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's are encouraged to contribute to transformation inagriculture, 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 levels.

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2.7. The AgriBEE Charter Council will review and adjust the turnoverthresholds for QSE's and EME's periodically in line with relevantinflation indicators.

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3. OBJECTIVES

3.1. The objectives of the Broad-Based Black Economic EmpowermentAct No. 53 of 2003 are to facilitate Broad-Based Black EconomicEmpowerment by:

Promoting economic transformation in order to enablemeaningful participation of Black People in the economy;achieving a substantial change in the racial composition ofownership and management structures and in the skilledoccupations 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 inorder to achieve sustainable development and generalprosperity;empowering rural and local communities by enabling access toeconomic activities, land, infrastructure, ownership and skills;andpromoting access to finance for black economic empowerment.

3.2. The objectives of AgriBEE Sector Code are to facilitate Broad-based Black Economic Empowerment in the agricultural Sector byimplementing initiatives to include Black South Africans at all levelsof agricultural activity and Enterprises by:

Promoting equitable access and participation of Black People inthe entire agricultural value chain;De-racialising land and Enterprise ownership, control, skilledoccupations and management of existing and new agriculturalEnterprises;Unlocking the full entrepreneurial skills and potential of BlackPeople in the Sector;Facilitating structural changes in agricultural support systemsand development initiatives to assist Black South Africans inowning, establishing, participating in and running agriculturalEnterprises;Socially uplifting and restoring the dignity of Black SouthAfricans within the Sector;Increasing the extent to which communities, workers, co-operatives and other collective Enterprises own and manage

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existing and new agricultural Enterprises, increasing their accessto economic activities, infrastructure and skills training;Increasing the extent to which Black Designated Groups ownand manage existing and new agricultural Enterprises,increasing their access to economic activities, infrastructure andskills training;Empowering rural and local communities to have access toagricultural economic activities, land, agricultural infrastructure,ownership and skills;The improvement of living and working conditions and promotionof decent living and working conditions for farm workers; andImproving protection and standards of land rights and tenuresecurity for labour tenants, farm workers and other vulnerablefarm dwellers and addressing the inherently paternalistic natureof relationships associated with insecure tenure by promotingmore permanent forms of tenure with the emphasis being on thetransfer of ownership of land.

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4. DETERMINATION OF AgriBEE STATUS

4.1. The BEE status of an Enterprise which falls within the scope ofapplication of the AgriBEE Sector Code will be determined by theEnterprise's score on the AgriBEE Scorecard. The Scorecardconsists of the following seven key elements:

OwnershipManagement controlEmployment equitySkills developmentPreferential procurementEnterprise developmentSocio Economic Development

4.2. An Enterprise's BEE status will determine the proportional BEEprocurement recognition level that the Enterprise will enjoy as asupplier to other entities applying the AgriBEE Sector Code.

BEE Status Qualification BEE procurementrecognition level

Level One Contributor 100 points on the AgriBEE/AgriQSE Scorecard

135%

Level Two Contributor 85 but <100 points on theAgriBEE/ AgriQSE Scorecard

125%

Level Three Contributor z75 but <85 on the AgriBEE/AgriQSE Scorecard

110%

Level Four Contributor 65 but <75 on the AgriBEE/AgriQSE Scorecard

100%

Level Five Contributor 55 but <65 on the AgriBEE/AgriQSE Scorecard

80%

Level Six Contributor ,45 but <55 on the AgriBEE/AgriQSE Scorecard

60%

Level Seven Contributor z40 but <45 on the AgriBEE/AgriQSE Scorecard

50%

Level Eight Contributor Z30 but <40 on the AgriBEE/AgriQSE Scorecard

10%

Non CompliantContributor

<30 on the AgriBEE/ AgriQSEScorecard

0%

4.3. The gazetting of an AgriBEE Sector Code for the AgriculturalSector, in terms of Section 9 of the Act is evidence of thecommitment by all stakeholders to promote Broad-Based BlackEconomic Empowerment in the Agricultural Sector.

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5. ELEMENTS OF EMPOWERMENT

5.1. OWNERSHIP

The objective of this element is to increase the participation of BlackPeople in the Agri-Industry by increasing the level of entitlement of BlackPeople to participate in the Economic Interest and Exercisable VotingRights of Enterprises in the Sector. This element is divided into twosections namely 'General Ownership' and 'Agricultural Land Ownership' toaccount for the unique challenges facing the Sector in this respect.

5.1.1 GENERAL OWNERSHIP

In line with the Strategic Plan, the mission of this element is to enhanceequitable access and participation in the agricultural Sector; to de-racialise land and Enterprise ownership; and to unlock the fullentrepreneurial potential in the Sector.

Historically, the interpretation of ownership in agriculture has beenunderstood to be dependent upon ownership of land. This AgriBEEframework makes a distinction between land and Enterprise ownership.

AgriBEE is fundamental to the long-term growth and competitivenessof the Agricultural Sector. AgriBEE activities and processes shouldultimately lead to the creation of viable and sustainable Enterprises inthe Agricultural Sector.

Stakeholders in the Sector will work towards the development andimplementation of a diversity of Enterprise ownership models insupport of AgriBEE.

All Sector Stakeholders should endeavour to source sufficient financingin order to ensure the establishment of viable and sustainableEnterprises.

Agri-Industry undertakes to: -

5.1.1.1. Further Black participation through ownership in the Agri-Industry by increasing the level of entitlement of BlackPeople to participate in the Economic Interest andExercisable Voting Rights in existing and newEnterprises. This includes the sale of equity in aMeasured Enterprise, sale of assets through QualifyingTransactions and/or through share equity schemes andother forms of joint ventures with farm labourers and otherBlack entrepreneurs;

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5.1.1.2. Further Black ownership in the Agricultural Sectorthrough the sale of assets. This is achieved by sellingequity in Associated Enterprises in a QualifyingTransaction. Qualifying Transactions must be scored interms of Statement 102 of the Codes of Good Practice,which states that equivalency points may be earned underthe ownership element through this mechanism. In orderfor an Enterprise to enjoy continued recognition forownership on the Scorecard through a QualifyingTransaction, the Transaction must ultimately result in:

the creation of sustainable businesses or businessopportunities for Black People; and

the transfer of specialised skills or productive capacityto Black People; and

it must not result in unnecessary job-losses;

it must involve a separate Associated Enterprisewhich has:

no unreasonable limitations with respect to itsclients or customers;

clients, customers or suppliers other than theEnterprise with which the Qualifying Transactionwas undertaken; and

no operational outsourcing arrangements with theinitiating Enterprise that were not concluded atarms-length on a fair and reasonable basis.

Government undertakes to:-

5.1.1.3. Implement all legislative and other measures at itsdisposal to facilitate black ownership.

5.1.1.4. Facilitate access to state BEE funds that are madeavailable by government departments, State-OwnedEnterprises, and financial institutions.

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5.1.2. AGRICULTURAL LAND OWNERSHIP

5.1.2.1. It is important to deal efficiently with land reform to ensurerural stability and market certainty. The process ofeconomic empowerment in South African agriculturestarts with improved access to land for Black People andthe vesting of secure tenure rights with Black People inareas where these do not exist.

5.1.2.2. The target set by government for Land Reform is 30% ofcommercial agricultural land by 2014. This is also theRDP target set in 1994. It is understood that government'sdelivery on land transfer targets is fundamental to theachievement of other objectives in this draft Sector Code.Farming enterprises are encouraged to participate directlyin this initiative by complying with the 'Land Ownership'element of the Scorecard. Farming enterprises cab scoreeither on the Ownership Indicator, Land OwnershipIndicator, or both, with the total score limited to theweighting of 20% (or 20% in the case of QSEs). Wherefarming enterprises choose to score on both indicators,land should not be double-counted under both elements.Furthermore, the AgriBEE Scorecard incentivisescontributions to achieving in excess of the nationalobjective of minimum 30% land transferred to BlackPeople. To this end, farming Enterprises which transfermore than 30% of total land can progressively score up toa maximum of 5 bonus points, in proportion to thepercentage of total land transferred. (Land transferred asa consequence of expropriation by government will not beeligible for bonus points).

5.1.2.3. Productive and sustainable agricultural use of land mustbe ensured in accordance with the relevant agriculturalpolicies and Acts. Studies should be done to provide asubstantive scientific basis for the development of land(also refer to the Sustainable Resource ManagementAct).

5.1.2.4. Given the need to transfer land in support of nationalobjectives, the nature of farming and the need to supportBlack People in establishing viable commercial farmingenterprises on the land that they receive, MeasuredEnterprises are encouraged to sell land in accordancewith the principles and criteria attached to QualifyingTransactions outlined in paragraphs 5.1.1.1.

5.1.2.5. Measured Enterprises will be recognised for the sale ofland to Black People in accordance with Statement 102 ofthe Codes of Good Practice.

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Farming Enterprises undertake to: -

5.1.2.6. Sell agricultural land to Black People and farm workers inmarket based transactions on a voluntary basis inQualifying Transactions (using the ownership element ofthe Scorecard as a vehicle to achieve this).

5.1.2.7. Lease agricultural land to Black persons in QualifyingTransactions (using the enterprise development elementof the Scorecard as a vehicle to achieve this).

5.1.2.8. Make available agricultural land to farm workers (usingthe corporate social investment element of the Scorecardas a vehicle to achieve this).

Government undertakes to: -

5.1.2.9. Contribute to increasing access and acquisition ofagricultural land by Black People, through its existingprogrammes;

5.1.2.10. Proactively acquire suitable agricultural land that comesonto the market for land redistribution;

5.1.2.11. Use above mentioned land (5.1.2.10) and agriculturalland that reverts to the state through foreclosure ofindebted farmers, for redistribution, including through longlease arrangements (e.g. 99 year lease);

5.1.2.12. Promote sustainable management and use of naturalresources;

5.1.2.13. Finalise the land restitution process;

5.1.2.14. Encourage the development of a land lease and landrental market;

5.1.2.15. Promote the consolidation and tenure on traditionalcommunity land in terms of relevant acts that supportcommunal land; and

5.1.2.16. Secure the ownership, access and tenure rights of BlackDesignated Groups through the registration of old orderrights or new order rights into freehold ownership.

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5.1.3 Note:

Given the current engagement on the Land Reform Green Paper, theissue of land ownership is an issue to be further discussed andfinalised immediately when a clear legislative framework has beenestablished. Different scenarios could emanate when the Green Paperprocess is finalised. However, within the current framework on landreform the AgriBEE Charter propose the following:

i) Resolution: Where government buys land on the open market,the seller would not be able to claim any points.

ii) Resolution: In the event a voluntary seller donates land withoutrequiring any compensation, points will be scored under landownership only.

iii) Resolution: In the event a BEE beneficiary buys land using ownequity or through debt, the general principles included underSale of Assets in the Codes of Good Practice would apply.

iv) Resolution: The principles of Statement 102 of the genericCodes of Good Practice on Recognition of Sale of Assets willapply to a scenario where a seller sells a portion of his/her landand not entire farmland, as well as for any aspect on this matternot covered in the AgriBEE Sector Code.

5.2. MANAGEMENT CONTROL

The objective of this element is to increase the participation and levelsof control of Black People and Black Women at board and executivemanagement levels in the Agri-Industry. This will be achieved byincreasing the absolute and relative number of Black People in thesepositions and by implementing mechanisms under the skillsdevelopment element to ensure that secondary, tertiary and in-housetraining and development programmes are designed to meet thetargets set under the Management Control element.

Agri-Industry undertakes to: -

5.2.1. Promote participation by Black People in board positions;

5.2.2. Promote participation by Black People in executive managementpositions;

5.2.3. Promote participation by Black Women in board and executivemanagement positions; and

5.2.4. Promote participation by Black People as Independent Non-executive Board Members.

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5.3. EMPLOYMENT EQUITY

Employment equity and skills development targets should be achievedwithin the ambit of the Employment Equity and Skills DevelopmentActs.

The objective of the employment equity element is to increase therepresentation of Black People, Black Women and Black DesignatedGroups at Senior Management level, at Professionally Qualified,Experienced Specialist and Mid-Management level and at SkilledTechnical and Academically Qualified, Junior Management,Supervisory, Foremen and Superintendent level, in the Agri-Industry.This will be achieved by increasing the absolute and relative number ofBlack People in these positions and by implementing mechanismsunder the skills development element to ensure that secondary, tertiaryand in-house training and development programmes are designed tomeet the targets set under the employment equity element.

Agri-Industry undertakes to:-

5.3.1. Proactively employ members of Black Designated Groups atSenior Management, Professionally Qualified, ExperiencedSpecialist, Mid-Management, Skilled Technical andAcademically Qualified, Junior Management, Supervisors,Foremen, and Superintendent Levels as prescribed in theScorecards.

5.4. SKILLS DEVELOPMENT

Commercial viability in agriculture demands sustained productivity,high levels of entrepreneurship, long term commitment, resources andskills. The transformation demands of the Sector and rapid changes inthe global environment require that more resources should bemobilised for expanding the existing human capital pool throughinvesting in people, employment equity, skills development andinstitutional transformation.

Black Designated Groups are targeted under the skills developmentelement. In addition, a focus on the development of core skills asidentified by the enterprise, scarce and critical skills as identified byrelevant Sector Education and Training Authority (`SETA), must beensured. In this respect, skills development spend on proposedlearning interventions which address these skills shortages mustaccount for 85% of the value of the actual contribution. Enterprisesshould engage with the relevant Sector Education and TrainingAuthority (`SETA) for information on such learning interventions.

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Agri-Industry undertakes to:-

5.4.1. Identify gaps in workers' training needs so as to co-operate withand complement teaching and educational institutions and toallow their workers to receive skills and in-service training;

5.4.2. Dedicate resources to provide for experiential training,internships, in-service training and training infrastructure forprospective agribusiness entrepreneurs, farm managers andfarm labourers;

5.4.3. Ensure maximum use of resources provided by the Skills Levy ofthe relevant SETAs ;

5.4.4. Institute a sector-wide young professional employment andmentoring programme, which targets Black unemployed andunderemployed graduates in all disciplines. Mentorshipprogrammes shall be accredited by the relevant SETA or otheragreed authority; and

5.4.5. Implement quantifiable and measurable in-house mentoringprogrammes as part of the skills development of blackemployees.

The relevant SETAs undertake to:-

5.4.6. Establish SETA-funded training programmes for farm andEnterprise workers in appropriate technical and managementskills;

5.4.7. Fast-track the registration of learners on NQF-aligned learningprogrammes;

5.4.8. Fast-track the implementation of appropriate learnership,internship, apprenticeship, in-service and mentorshipprogrammes required by the Sector;

5.4.9. Fast-track the accreditation of appropriate sectoral serviceproviders;

5.4.10. Encourage, support and monitor such programmes in theprivate sector;

5.4.11. Ensure the transformation of agricultural training institutions toaccelerate preferential recruitment and admission of blacktrainees;

5.4.12. Encourage quantifiable and measurable in-house mentoringprogrammes as part of the skills development of blackemployees;

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5.4.13. Encourage the implementation of sector-wide youngprofessional employment and mentoring programmes, whichtarget Black unemployed and underemployed graduates in alldisciplines. Mentorship programmes shall be accredited by therelevant SETA or other agreed authority; and

5.4.14. Provide support to QSE's and EME's in the implementation ofrelevant skills development initiatives, including Enterpriseswhich are exempted from the payment of the skillsdevelopment levy.

Government undertakes to:-

5.4.15. Provide primary education and training. This includes adultliteracy and numeracy training. The State, in conjunction withthe governing bodies of educational institutions and similarstructures, must ensure that quality training is offered by allprimary, secondary and tertiary institutions;

5.4.16. Encourage agricultural and agro-processing training at schoolsand agricultural colleges. A focused, formal agricultural andagro-processing training system which adequately equipsfuture agriculturalists and agro-processors should bedeveloped;

5.4.17. Promote agriculture and agro-processing as a competitivecareer option;

5.4.18. Undertake a review of the effective demand for humanresources in the agricultural Sector;

5.4.19. Lead and co-ordinate a targeted programme in collaborationwith education authorities, farmers' organisations, labour andthe agricultural private sector to review existing education andtraining curricula in order to enhance technical, entrepreneurial,and management skills for Black entrants into the Sector;

5.4.20. Ensure the inclusion of a substantial number of Black personsfrom the Sector as the nucleus of strategic partners inGovernment overseas trade missions, technical assistance,study visits and training opportunities;

5.4.21. Promote functional literacy and numeracy through ABETprogrammes;

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5.4.22. Encourage quantifiable and measurable in-house mentoringprogrammes as part of the skills development of blackemployees; and

5.4.23. Encourage the implementation of a sector-wide youngprofessional employment and mentoring programmes, whichtarget Black unemployed and underemployed graduates in alldisciplines. Mentorship programmes shall be accredited by therelevant SETA or other agreed authority.

5.5. PREFERENTIAL PROCUREMENT

The success of the Sector's commitment to AgriBEE will largely bedetermined by the extent of the implementation of preferentialprocurement initiatives which will influence contractual relationshipswithin the value chain. The objective of the preferential procurementelement is to reward Enterprises which contribute towards broad-basedBEE and to promote and encourage sustainable procurement fromQSE's and EME's.

The provisions in the generic Codes of Good Practice in terms of TotalMeasured Procurement Spend and Exclusions from Total MeasuredProcurement Spend, in order to measure B-BBEE Procurement Spend,will be valid and direct the practice in this regard.

In the event of a natural disaster that has a significant impact on thestructure of food supply, the AgriBEE Charter Council shall beempowered to make recommendations to revise any of theprovisions, including import exclusions or mechanisms, in terms of thiselement in consultation with the Ministers of Agriculture and Trade andIndustry.

Agri-Industry undertakes to:-

5.5.1. Proactively identify and implement targeted procurementstrategies and policies to realise AgriBEE objectives and to meetpreferential procurement targets;

5.5.2. Report annually on all preferential procurement spent;

5.5.3. Calculate preferential procurement spend on a proportionalrecognition basis, from suppliers with a BEE status of 30% ormore on any broad-based BEE scorecard which has undergonea consultative process. The proportional recognition mechanismis contained in the table below:

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BEE Status Qualification BEE procurementrecognition level

Level One Contributor 2100 points on a broad-basedBEE Scorecard

135%

Level Two Contributor z85 but <100 points on abroad-based BEE Scorecard

125%

Level Three Contributor z75 but <85 on a broad-basedBEE Scorecard

110%

Level Four Contributor .65 but <75 on a broad-basedBEE Scorecard

100%

Level Five Contributor .55 but <65 on a broad-basedBEE Scorecard

80%

Level Six Contributor >_45 but <55 on a broad-basedBEE Scorecard

60%

Level Seven Contributor 40 but <45 on a broad-basedBEE Scorecard

50%

Level Eight Contributor 30 but <40 on a broad-basedBEE Scorecard

10%

Non CompliantContributor

<30 on a broad-based BEEScorecard

0%

5.5.4. Progressively provide preferred supplier status to QSE's andEME's, including the supply of services and goods, inaccordance with the requirements of the AgriBEE Scorecard.

Government undertakes to: -

5.5.5. Align their procurement practices with AgriBEE when procuringgoods and services from the Agricultural Sector, once SectorCodes for the Agricultural Sector have been gazetted;

5.5.6. Provide Black People and QSE's preferred supplier status in theprocurement of goods and services;

5.5.7. Identify, prioritise and target Black Entrepreneurs andEnterprises that contribute to Broad-based BEE, when awardingtenders and contracts to entities in the private sector; and

5.5.8. Utilise all legislative and other measures available to it, includingpreferential procurement, to influence the attainment of broad-based BEE objectives.

5.6. ENTERPRISE DEVELOPMENT

Enterprise development refers to the establishment, support andintegration of Black Entrepreneurs in mainstream business processes.Support services such as access to finance, infrastructure, informationand knowledge systems, are core pillars of sustainable empowermentinitiatives.

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Agri-Industry undertakes to:-

5.6.1. Strengthen and accelerate the development of the operationaland financial capacity of Black entrepreneurs;

5.6.2. Provide mentoring, access to inputs, credit, infrastructure,markets, technology and extension services where applicable.Mentoring, as part of the enterprise development element, refersto the provision of technical and/ or general business assistanceand support to Black emerging farmers, land reformbeneficiaries and Black entrepreneurs.

5.6.3. Support land reform beneficiaries and Black Persons to createsustainable businesses through the transfer of specialised skillsin mentorship programmes. Such support (as well as the typesof support described in paragraph 5.6.2 above) will be eligible forpoints under the enterprise development element provided it isquantified to a Rand value in terms of the opportunity cost oftime spent on mentoring and/or other enterprise developmentendeavours. Support to land reform beneficiaries will enjoyenhanced recognition at a multiple of 1.3 of the Rand value ofthe actual contribution. Enterprises should engage with therelevant SETA for information on such learning interventions;

5.6.4. Commit cumulative enterprise development contributions whichassist and accelerate the development of black entrepreneurs,as a percentage of cumulative net profit after tax measured fromthe Inception Date to the date of measurement as a criterion formeasurement;

5.6.5. Lease agricultural land to Black Entrepreneurs which meets thecriteria for qualifying transactions in terms of paragraph 5.1.1.2.

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5.6.6. Enhanced Recognition will be enjoyed for certain types ofenterprise development initiatives, at a multiple of the Randvalue of the actual contribution. These initiatives and theircorresponding multipliers are listed below:

Enterprise Development Initiative MultipleInitiatives which directly contribute towards thecreation of employment opportunities in ruralcommunities and, in particular, in any geographicareas identified in government's integratedsustainable rural development and urban renewalprogrammes (See conditions below)

1.5

Initiatives which assist and accelerate thedevelopment of Black Owned EME's 1.25

Initiatives which assist and accelerate thedevelopment of beneficiary entities which produceor sell goods and/ or services not previouslyproduced or manufactured in South Africa

1.5

Contributions in respect of warehousing funds(provided these funds do not own an equityinterest in the Measured Enterprise)

1.25

Support to Land Reform beneficiaries in terms ofmentoring or extension services, capital provision,input supply and market access opportunities,access to technology and infrastructure

1.5

For the purpose of verification, new Enterprise DevelopmentInitiatives or projects are defined as green field projects thatinclude, but are not limited to, those that support the IndustrialPolicy Action Plan. Points will be scored for permanentemployees based on the following sliding scale: Year 1: 100%points; Year 2: 70% points and Year 3: 30% points. Additionally,should there be a percentage decrease in employment, therewould be a pro rata percentage decrease in percentage pointsscored.

Government undertakes to:-

5.6.7. Ensure the creation of an enabling environment to supportagriculture;

5.6.8. Continue with, and further develop, the implementation of theComprehensive Agricultural Support Programme ('CASP') andother government programmes;

5.6.9. Implement MAFISA (Micro-Agricultural Financial Institutions ofSouth Africa) and other government financing facilities to furtherenterprise development;

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5.6.10. Establish Public-Private Partnerships to improve servicedelivery; and

5.6.11. Activate Land Bank funding opportunities and financialproducts for black farmers.

5.7 SOCIO-ECONOMIC DEVELOPMENT (SED)

Socio-economic development refers to contributions that are related tothe agricultural industry and contributions actually initiated andimplemented in favour of Black People with the specific objective offacilitating access to the economy. These initiatives should bemotivated by the objective of providing Black People with social andeconomic opportunities and to establish a socio-economic environmentconducive to these opportunities. Priority should therefore be given toimplementing income generating socio economic initiatives that createsustainable livelihood for beneficiaries. In this regard a Measured Entitymust consult and provide proof that it consulted with the beneficiariesto establish their needs.

Due to the need to improve the living and working conditions of thefarm workers in the agricultural sector, any SED initiative should beover and above legislated minimum wage accruable to the beneficiary.Proof must be submitted to Verification Agencies that in any case thatthe benefit that is claimed for, is separate and over and above SEDinitiative to the pay package, and in this regard the total points that canbe scored for any SED initiative which is over and above the legislatedwage accruable to the beneficiaries is 50% for both the LargeEnterprises and Qualifying Small Enterprises; i.e. 50% of 10 points forlarge enterprises and 50% of 20 points in the case of QSE's.

It should also be noted that there needs to be a contract in placebetween the enterprise/employer and the employees whose salarypackages have been restructured for the purpose of scoring pointsunder this category.

Farming Enterprises undertake to:-

5.7.1. Contribute to socio-economic development initiatives in respectof rural community members, workers and their families andseasonal workers, in particular. The following is a non-exhaustive list of examples, but all such contributions areconditional:

5.7.1.1. Provision of good quality housing, including accessto clean water, sanitation and electricity;

5.7.1.2. Provision of recreational facilities as well asrunning costs in this regard;

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5/.1.3. Provision or implementation of, health careprogrammes and related services (with dueconsideration for HIV/AIDS programmes);

5.7.1.4. Meeting the transport requirements of workers andtheir dependents, such as transport to clinics andhospitals, transportation of workers' products to themarket, etc. in line with transport legislation andregulations;

5.7.1.5. Implementation of retirement, funeral and relatedschemes provided they are separate from the paypackage of beneficiaries;

5.7.1.6. Investment in, and/or provision of support to, farmand/or rural schools;

5.7.1.7. Engagement in collective contributions to socialdevelopment;

5.7.1.8. Provision of ABET to seasonal workers, ruralcommunity members and family of staff members(whether casual or permanent) to increase literacylevels amongst rural South Africans;

5.7.1.9. Maintenance of bursary schemes to enable BlackPeople to gain access to tertiary educationinstitutions.

5.7.2. Contribute to corporate social investment initiativesand/or land available to farm workers. In such cases, theMeasured Enterprise will be awarded points inproportion to the target achieved for their contributions.

Agribusiness Enterprises undertake to:-

5.7.3. Contribute to social development and industry specificinitiatives. The following is a non-exhaustive list ofexamples:

5.7.3.1 support for community education facilities; educationprogrammes aimed at promoting the agriculturalindustry; and bursaries and scholarships toencourage learners to study agricultural sciences;

5.7.3.2. contributions to community training programmesaimed at skills development for the unemployedand ABET;

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5.7.3.3. participation in development programmes for theyouth and other designated groups;

5.7.3.4. support for programmes in conservation projects;community clean-up programmes and preservationof the natural environment that have direct andtangible benefits to the beneficiaries of B-BBEE;

5.7.3.5. promotion of job creation programmes in theagricultural and agricultural related Sectors,external to the business;

5.7.3.6. support for development programmes to developnew talent for arts and culture;

5.7.3.7. support community clinics and community healthprogrammes (with due consideration for HIV/AIDSprogrammes); and

5.7.3.8. participate in and support sports developmentprogrammes.

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6. GOVERNANCE

6.1 An AgriBEE Charter Council has been established and will report to theBlack Economic Empowerment Advisory Council, appointed in terms ofthe Act and the Minister of Trade and Industry, on progress made by theSector in terms of the AgriBEE Charter.

6.2 The fundamental principles of the AgriBEE Charter Council are asfollows:

The AgriBEE Charter Council will be established as anindependent body with a mandate to oversee theimplementation of the AgriBEE Charter;The AgriBEE Charter Council will address issues of principlerelating to the implementation of the Charter;The AgriBEE Charter Council will conduct reviews and takedecisions;The AgriBEE Charter Council will consider whether the targetsand implementation strategies are still appropriate, and if nothow they should be varied should there be a material change inthe circumstances or the environment in which the Charter hasto be implemented;There will be equitable composition of Stakeholders in themembers of the AgriBEE Charter Council.Decisions of the Charter Council will be taken on a consensualbasis. If, on any issue, the Charter Council is unable to achieveconsensus, there will be a dispute-breaking mechanism in theCharter Council either by some agreed mechanism within theCharter Council, or by reference to arbitration or mediation.

6.3 The Charter Council should be tasked with ensuring that the verificationof BEE contributions in the Agricultural Sector:

consists of a valid and reliable process that is practical andlegally defensible;is an accessible, flexible and cost effective system for theindustry which may include electronic systems such as e-filing ofBEE contribution data and self assessment tools;is subject to audit by agencies appointed in terms of the Codesof Good Practice;includes the issuing of qualified and unqualified BEE verificationcertificates, which respond to the unique needs of the Sector;andis universal and generally accepted and nationally recognisedstandards.

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7. DEFINITIONSFor the purposes of clarification and to avoid ambiguity, the followingterms apply to this Charter:

7.1. ABET means Adult Basic Education and Training as determined bythe National Qualification Authority.

7.2. Accreditation Body means the South African NationalAccreditation System or any other Entity appointed by the Ministerfor Trade and Industry from time to time.

a. accrediting Verification Agencies; andb. developing, maintaining and enforcing the Verification

Standards.

7.3. Acquisition debt means the debts of:

a. black participants incurred in financing their purchase of theirequity instruments in the Measured Entity; and

b. juristic persons or trusts found in the chain of ownershipbetween the eventual black Participants and the MeasuredEntity but excluding debts incurred by the Measured Entity forthe same purpose as those in (a).

7.4. AgriBEE is a Sectoral Transformation Charter as defined in Section12 of the Broad-Based Black Economic Empowerment Act 53 of2003.

7.5. AgriBEE Scorecard means the Broad-Based BEE scorecardpublished in the Government Gazette in terms of Section 9 of theAct. The Indicative Scorecard attached to this Charter documentshould be regarded as an indication of what is likely to be includedin possible, future Sector Codes for agriculture.

7.6. AgriBEE QSE Scorecard means the Broad-Based BEE scorecardfor Qualifying Small Enterprises published in the GovernmentGazette in terms of Section 9 of the Act. The Indicative AgriBEEQSE Scorecard attached to this Charter document should beregarded as an indication of what is likely to be included in possible,future Sector Codes for agriculture. It could be used in the interimby the sector for measuring BEE contribution until the S9 SectorCodes are finalised.

7.7. Agriculture refers to all the economic activities associated with theproduction and processing of agricultural products as defined insection 2.1.

7.8. Agricultural Products are as defined by the Marketing ofAgricultural Products Act No. 47 of 1996.

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7.9. Agri-Industry refers to the combination of Farming Enterprisesand Agribusiness Enterprises.

7.10. Approved Socio-economic Development Contributions meansmonetary or non-monetary contributions carried out for the benefitof any projects approved for this purpose by any organ of state orsectors including without limitation:

a. profits focusing on environmental conservation, awareness,education and waste management; and

b. projects targeting infrastructural development, enterprisecreation or reconstruction in underdeveloped areas, ruralcommunities or geographic areas identified in the government'sintegrated sustainable rural development or urban renewalprogrammes.

7.11. Associated Enterprise means an Entity with which a Seller hasconcluded a Qualifying Transaction

7.12. B-BBEE means Broad-Based Black Economic Empowerment.

7.13. BEE controlled company means a juristic person, having shareholding or similar members interest in which black participantsenjoy a right to Exercisable Voting Rights that is more than 50% ofthe total such rights measured using the Flow Through Principle.

7.14. BEE owned company means juristic person, having share holdingor similar members interest, that is BEE controlled, in which blackparticipants enjoy a right to Economic interest that is more than50% of the total such rights measured using the Flow ThroughPrinciple.

7.15. BEE Procurement Recognition Level means the percentage BEEProcurement Recognition Levels as determined:

a. for Enterprises that are neither Qualifying Small Enterprises norExempted Micro-Enterprises, using statement 000;

b. for Qualifying Small Enterprises, using statement 800; andc. for Exempted Micro-Enterprises, a deemed BEE procurement

Recognition of 100% and BEE Status of Level 4 Contributorunder statement 800.

7.16. BEE Status means the BEE status of a beneficiary of EnterpriseDevelopment Contributions as determined under:

a. Statement 800 for Qualifying Small Enterprises and ExemptedMicro Enterprises; and

b. Statement 000 for all other Enterprises.

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7.17. Benefit Factor means a factor specified in the Benefit Factor Matrixapplicable to fixing the monetary value of Enterprise Developmentand Socio Economic Development Contributions claimable understatement 600, 700, 806 and 807.

7.18. Benefit Factor Matrix means the Benefit Factor Matrix for EnterpriseDevelopment and socio Economic Development Contributionsannexed to statement 600, 700, 806 and 807.

7.19. Black Designated Groupsa. means unemployed black people not attending and not required

by law to attend an educational institution and not awaitingadmission to an educational institution;

b. Black people who are youth as defined in the National YouthCommission Act of 1996;

c. Black people who are persons with disabilities as defined in theCode of Good Practise on employment of people with disabilitiesissued under the Employment Equity Act;

d. Black people living in rural and under-developed areas.e. Black women.

7.20. Black new entrants means black participants who hold rights ofownership in a Measured Entity and who, before holding the EquityInstrument in the Measured Entity, have not held equity instrumentsin any other Entity which has a total value of more thanR20 000,000, measured using a standard valuation method.

7.21. Black People has the meaning defined in the Act qualified asincluding only natural persons who are citizens of the Republic ofSouth Africa by birth or descent; or are citizens of the Republic ofSouth Africa by naturalisation:

a. occurring before the commencement date of the constitution ofthe Republic of South Africa Act of 1993; or

b. occurring after the commencement date of the Constitution ofthe Republic of South Africa Act of 1993, but who, within theApartheid policy would have qualified for naturalisation beforethen.

7.22. Black Professional Service Provider means Black Individualswho provide services of a professional nature.

7.23. Board means those persons appointed by the Participants of aMeasured Entity to undertake the management control of theMeasured Entity. The Board is distinguishable from the Senior andOther Top Management by virtue of the fact that Senior and OtherTop Management are primarily active in the operational day-to-daymanagement while the Board is primarily active in the controlfunction of the Measured Entity. This does not imply that membersof the Board cannot also be Senior and Other Top Management.The term Board does not include persons appointed to that body asalternates.

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7.24. Broad-based Black Economic Empowerment (as defined in theAct) means the economic empowerment of all Black Peopleincluding women, workers, youth, people with disabilities andpeople living in rural areas through diverse but integrated socio-economic strategies that include, but are not limited to-

increasing the number of Black People that manage, own andcontrol Enterprises and productive assets;facilitating ownership and management of Enterprises andproductive assets by communities, workers, cooperatives andother collective Enterprises;human resource and skills development;achieving equitable representation in all occupational categoriesand levels in the workforce;preferential procurement; andinvestment in Enterprises that are owned or managed by BlackPeople;

7.25. Broad-Based Ownership Scheme means a ownership schemewhich meets the rules set out in Annexe 1008.

7.26. Certified Learning Programme means any Learning Programmefor which the Measured Entity has:

a. any form of independent written certification as referred to in the"Learning Achievements" column of the Learning ProgrammesMatrix; or if it does not have such certification;

b. an enrolment certificate issued by the independent personresponsible for the issue of the certification referred to instatement 400 and 804 confirming the employee has:(i) enrolled for, is attending and is making satisfactory

progress in the Learning Programme; or(ii) enrolled for but not attended the Learning; or(iii) attended the Training Programme but has failed an

evaluation of their learning progress.

7.27. The Act means the Broad-Based Black Economic EmpowermentAct 53 of 2003.

7.28. Charter means the AgriBEE Transformation Charter, including theIndicative AgriBEE Scorecard and the Indicative AgriQSEScorecard

7.29. Companies Act means the Companies Act, no. 71 of 2008.

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7.30. Company limited by guarantee means a company as referred toin section 19(1) (b) of the Companies Act.

7.31. Competent person means a person who has acquired throughtraining, qualification and experience the knowledge and skillsnecessary for undertaking any task assigned to them under thecodes.

7.32. Core Skills means skills that are:

a. value-adding to the activities of the Measured Entity in line withits core business;

b. in areas the Measured Entity cannot outsource; orc. within the production/operational part of the Measured Entity's

value-chain, as opposed to the supply side, services ordownstream operations.

7.33. Critical Skills means those skills identified as being critical by anySETA.

7.34. Disabled Employees has the meaning defined in the Code ofGood Practise on Key Aspects of Disability in the Workplace issuedunder section 54 of the Employment Equity Act.

7.35. EAP means Economically Active Population as determined andpublished by Stats SA. The operative EAP for the purpose of anycalculation under the Codes will be the most recently publishedEAP.

7.36. Economic interest means a claim against an Entity representing areturn on ownership on the Entity similar in nature to a dividendright, measured using the Flow Through and, where applicable, theModified Through Principles.

7.37. EEC Act means the Employment Equity Act of 1998, as amended.

7.38. EE Regulations means the regulations under the EmploymentEquity Act.

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7.39. Elements means the measurable quantitative or qualitativeelements of BEE compliance in the Generic Scorecard and thePrimary Codes.

7.40. Employee bears the meaning as defined in the Labour RelationsAct 66 of 1995 as amended.

7.41. Employee Ownership Scheme means a worker or employeescheme.

7.42. Enterprise means a natural or juristic person conducting abusiness, trade or profession in the Republic of South Africa.Unless the context otherwise indicates, Enterprises include, withoutlimitation, a Measured Enterprise and an Associated Enterprise.Different types of Enterprises within the Sector are defined asfollows:

Agribusiness Enterprises means those individuals, groups,cooperatives or companies engaged in other agricultural activitiesas defined in the scopeFarming Enterprises means those individuals, groups, co-operatives or companies engaged in primary agriculturalproduction activities as defined in the scope.

7.43. Entrepreneur means a person who starts and / or operates abusiness which includes identifying opportunities in the market,taking risks with a view of being rewarded with profits.

7.44. Entity means a natural or a juristic person conducting a business,trade or profession in the Republic of South Africa.

7.45. Enterprise Development Contributions means monetary or non-monetary contributions carried out for the following beneficiaries,with the objective of contributing to the development, sustainabilityand financial and operational independence of those beneficiaries:

a. Category A Enterprise Development Contributions involvesEnterprise Development Contributions to Exempted Micro-Enterprises or Qualifying Small Enterprises which are 50% blackowned or black women owned;

b. Category B Enterprise Development Contributions involvesEnterprise Development Contributions to any other Entity that is50% black owned or black women owned; or 25% black ownedor black women owned with a BEE status of between Level Oneand Level Six.

7.46. Equity Equivalent Contribution means an equity equivalentcontribution made by a Multinational under an Equity EquivalentProgramme.

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7.47. Equity Equivalent Programme means a public programme orscheme of any government department, provincial or localgovernment in the Republic of South Africa or any other programmeapproved by the Minister as an Equity Equivalent Programme.

7.48. Equity Instrument means the instrument by which a Participantholds rights of ownership in an Enterprise.

7.49. Equivalency Percentage means a percentage ownershipperformance for all the indicators in the Associated Enterprise'sOwnership Scorecard arising from a Qualifying Transactionincluded in the Ownership Scorecard of the beneficiary entity.

7.50. Executive Members of the Board mean those members of theBoard who are executive directors as defined in the King Report;

7.51. Exempted Micro Enterprise means an Entity with an annualturnover of less than R5 (five) million (refer also to Section 2.5).

7.52. Exercisable Voting Right means a voting right of a Participant thatis not subject to any limit;

7.53. Global Practice means a globally and uniformly applied practice ofa Multinational, restricting alienation of equity in or the sale ofbusinesses in its regional operations. The practice must haveexisted before the promulgation of the Act.

7.54. Grant Contribution means the monetary value of QualifyingContributions made by the Measured Entity to a beneficiary in theform of grants, donations, discounts and other similar quantifiablebenefits which are not recoverable by the Measured Entity.

7.55. Government means the national, provincial and local spheres ofgovernment and State-Owned Enterprises which are distinctive,interdependent and interrelated.

7.56. Higher Education Institution means a higher education institutionas defined under the Higher Education Act of 1997.

7.57. Inception Date means a date specified by a Measured Entity asbeing the date from which its Contributions are measurable beforethe commencement date of statement 600, 700, 806 and 807 of theB-BBEE Codes of Good Practice.

7.58. Independent Non-Executive Board Members means thosemembers of the Board that are independent directors as defined inthe King Report.

7.59. Indicator Percentage means the percentage compliance of theAssociated Entity for all the indicators of the Associated EnterpriseOwnership Scorecard. The calculation of Indicator Percentagefollows the rules in statement 100 using the actual percentagecompliance for each indicator and not the resulting scores.

7.60. King Report means the King Report on Corporate Governance forSouth Africa 2002 by the King Committee on CorporateGovernance of the Institute of Directors in Southern Africa.

7.61. Learning Programmes means any learning programme set out inthe Learning Programme Matrix.

7.62. Learning Programme Matrix means the Learning ProgrammeMatrix annexed as Annexe "400A" 804(A) in statement 400 and804.

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7.63. Leviable Amount bears the meaning as defined in the SkillsDevelopment Levies Act of 1999 as determined using the FourthSchedule to the Income Tax Act.

7.64. Management Fees means the total Economic Interest received bya Broad-Based Ownership Scheme in any year less the amountsdistributed or applied to beneficiaries and the amounts reserved forfuture distribution or application.

7.65. Mandated Investments means any investments made by orthrough any third party regulated by legislation on behalf of theactual owner of the funds, pursuant to a mandate given by theowner to a third party, which mandate is governed by thatlegislation. Some examples of domestic mandated investments andthe portions of those investments subject to the exclusion principleare contained in Annexe 100A attached to statement 100.

7.66. Measured Enterprise means an Entity as well as an organ of stateor public entity subject to measurement under the Codes.

7.67. Multinational Business means a Measured Entity with a businessin the Republic of South Africa and elsewhere which maintain itsinternational headquarters outside the Republic.

7.68. National Skills Development means the national skillsdevelopment strategy referred to in section 5(1)(a)(ii) of the SkillsDevelopment Act.

7.69. Net Profit After Tax means the operating profit of a measuredentity after tax. It incorporates both the equity / loss figures andabnormal items, but excludes extra ordinary items as determined by(GAAP) Generally Accepted Accounting Practices.

7.70. Net Profit Before Tax means the operating profit of a measuredentity before tax. It incorporates both the equity / loss figures andabnormal items, but excludes extra ordinary items as determined by(GAAP) Generally Accepted Accounting Practices.

7.71. Net Value means the percentage resulting from the formula inAnnexe 100(C) of statement 100.

7.72. Net-value Date means the later occurring of the date ofcommencement of statement 100 and the date upon which theearliest of all still operative transactions undertaken by theMeasured Entity Measured Entities in order to achieve black rightsof ownership, became effective and unconditional.

7.73. Non-profit Organisation means a non-profit organisationregistered under the Non-Profit Organisation Act of 1997.

7.74. Outsourced Labour Expenditure means any expenditure incurredin:

a. procuring the services of or from a labour broker; and

b. procuring the services of any person who receives anyremuneration or to whom any remuneration accrues because ofany services rendered by such person to or on behalf of a labourbroker.

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7.75. Ownership Fulfilment has the same meaning as referred to in theownership scorecard in statement 100.

7.76. Participant means a natural person holding rights of ownership in aMeasured Entity.

7.77. Priority Skills means Core, Critical and Scare Skills as well as anyskills specifically identified:

a. in a Sector Skills Plan issued by the Department of Labour ofthe republic of South Africa; and

b. by the Joint Initiative for Priority Skills Acquisition (JIPSA)established as part of the Accelerated and Shared GrowthInitiative - South Africa (ASGISA).

7.78. Private Equity Fund means a third party fund through whichinvestments are made on behalf of the actual owner of the fundspursuant to a mandate given by that person to the private equityfund.

7.79. Professionally Qualified, Experienced Specialists and Mid-management" in terms of the Employment Equity element, is asper the EEA9 Form issued as a regulation under the EmploymentEquity Act.

7.80. Public Benefit Organisation means an entity as defined in section30 of the Income Tax Act of 1962.

7.81. Qualifying Small Enterprise (QSE) means a Qualifying SmallEntity that qualifies for measurement under the qualifying smallEntity scorecard with a turnover of between R5 million and R35million. "Qualifying Enterprise Development Contributions" is acollective term describing Category A and B EnterpriseDevelopment Contributions and in particular EnterpriseDevelopment Contributions targeting black owned EME's andQSE's, and black youth in rural and underdeveloped areas instatement 600.

7.82. Qualifying Enterprise Development Contribution is a collectiveterm describing category A and B enterprise developmentcontribution and in particular enterprise development contributionstargeting black owned EME's and QSE's, and black youth in ruraland underdeveloped areas in statement 600 of the B-BBEE Codesof Good Practice.

7.83. Qualifying Transaction means a sale of a business, valuablebusiness assets, and shares or land that results in the creation ofsustainable business opportunities and transfer of specialised skillsor productive capacity for black people.

7.84. Realisation Points means the Ownership Fulfilment points addedto the Net Value points in the ownership scorecard.

7.85. Related Enterprise means an Entity controlled by a MeasuredEntity whether directly or indirectly controlled by the natural personswho have direct or indirect control over that Measured Entity or theimmediate family of those natural persons.

36 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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7.86. Rights of Ownership is a collective term for the right to EconomicInterest and the rights to Exercisable Voting Rights.

7.87. Scarce Skills are those skills identified as being scarce by anySETA.

7.88. The Scorecard refers to the Indicative AgriBEE Scorecard or theIndicative AgriQSE Scorecard - whichever is applicable in thecontext in which the term is employed.

7.89. Section 21 Company means an association not for gainincorporated under section 21 of the Companies Act.

7.90. Sector means the Agricultural Sector as defined in the Scope inparagraph 2.1.

7.91. Sector Code means a Code in statement 003 in the B-BBEECodes of Good Practice which is applicable to a particular sector.

7.92. Sector Plan means the Strategic Plan for South African Agriculturedeveloped jointly by the Government of the Republic of SouthAfrica, Agri SA (including Agribusiness Chamber) and NAFU,signed on 27 November 2001.

7.93. Seller means the Entity or the person concluding a QualifyingTransaction with the Associated Enterprise.

7.94. Senior Management in terms of the Employment Equity element,is as per the EEA9 Form issued as a regulation under theEmployment Equity Act

7.95. Senior Top Management means Employees of a Measured Entitywho are:(a) members of the occupation category of "Top Management" as

defined using the EE Regulations as qualified in a Sector Code;(b) appointment by or on the authority of the Board to undertake the

day-to-day management of that Measured Entity and who:(i) have individual responsibility for the overall management and

for the financial management of that Measured Entity; and(ii) actively involved in developing and implementing the

Measured Entity's overall strategy.

7.96. Skilled Technical and Academically Qualified Workers, JuniorManagement, Supervisors, Foremen, Superintendents in termsof the Employment Equity element, is as per the EEA9 Form issuedas a regulation under the Employment Equity Act

7.97. Skills Development Expenditure comprises the money that aMeasured Entity spends on skills development. It excludes the skillsdevelopment levy payable by the Measured Entity under the SkillsDevelopment Levies Act.

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7.98. Socio-Economic Development Contributions is a collective termfor Socio-Economic development programmes and contributions,approved Socio-Economic development programmes and sectorspecific programmes.

7.99. Socio-Economic Development Programmes(a) Socio-Economic development Programmes commonly take the

following forms:(i) develop programmes for women, youth, people with

disabilities, people living in rural areas;(ii) support of healthcare and HIV/AIDS programmes;(iii) support for education programmes, resources and

materials at primary, secondary and tertiary educationlevel, as well as bursaries and scholarships;

(iv) community training, skills development for unemployedpeople and adult basic education and training; or

(v) support of arts, cultural or sporting developmentprogrammes.

7.100. A stakeholder is used as a broad term to describe participants inthe entire agricultural value chain as well as current and potentialbeneficiaries of AgriBEE including government.

7.101. State-Owned Enterprise: State-Owned Enterprise means PublicEntity defined as-

a government business Enterprise; ora board, commission, company, corporation, fund or otherentity (other than a national government business Enterprise)which is

o established in terms of national legislation;o fully or substantially funded either from the National

Revenue Fund, or by way of a tax, levy or othermoney imposed in terms of national legislation; and

o accountable to Parliament;

7.102. Standard Valuation Method means a standard valuation methodfor an asset, an Economic Interest, or any other instrument or rightrelevant to measurement under statement 100, undertaken usingnormal valuation methods that represent standard market practise.

7.103. Start-up Enterprise means a recently formed or incorporatedEntity that has been in operation for less than 1 year. A start-upenterprise does not include any newly constituted enterprise whichmerely a continuation of a pre-existing enterprise.

7.104. Subsidiary has the meaning defined in section 1(3) of theCompanies Act.

7.105. Superior Contributor to BEE is a Level One to Level FourContributor to BEE.

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7.106. Supplier means any supplier or service provider to a MeasuredEntity if any portion of the supply or service provision falls within thedefinition of Total Measured Procurement Spend.

7.107. Target means the Targets for the various elements in the IndicativeAgriBEE and AgriQSE Scorecards.

7.108. the Act means the Broad-Based Black Economic EmpowermentAct 53 of 2003.

7.109. the Codes means the Codes of Good Practice including all thestatements as issued under the section 9 of the Act.

7.110. the Generic Scorecard means the balanced BEE scorecard ascontained in statement 100.

7.111. the PFMA means the Public Finance Management Act 1 of 1999 asamended.

7.112. the QSE Scorecard means the QSE scorecard referred to instatement 800.

7.113. the Skills Development Act means the Skills Development Act of1998.

7.114. the Skills Development Levies Act means the Skills DevelopmentLevies Act of 1999.

7.115. The Strategy Document means the document entitled "SouthAfrica's Economic Transformation -A Strategy for Broad-BasedBlack Economic Empowerment" published by the Department ofTrade and Industry in March 2003 as amended or substituted undersection 11 of the Act.

7.116. Third Party Rights means third party legal or commercial rightsthat restrict, withhold or defer any benefit associated with ownershipof any Equity Instrument. Third party rights include only thoserights:

a. created against a black Participant to ensure, for a lender,repayment of a loan advanced to that Participant for financingtheir purchase of their equity instrument in the Measured Entity;

b. held against a juristic person or trust that is in the chain ofownership between the Measured Entity and that the eventualblack Participant serving the same purpose mentioned in (a)above.

7.117. Top Manager means employees of a Measured Entity who holdrights of ownership, serve on the Board, undertake the day to daymanagement, have overall responsibility for the overall financialmanagement and are actively involved in developing andimplementing the overall strategy of the Measured Entity.

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7.118. Total Labour Cost means the total amount of remuneration paid byan Entity to its employee's determined using section 3(4) of theSkills Development Levies Act of 1999 and the Forth Schedule ofthe Income Tax Act of 1962.

7.119. Total Revenue means the total income of an Entity from itsoperations as determined under South African Generally AcceptedAccounting Practice.

7.120. Transformation Charter means the Sectoral transformationcharters referred to in section 12 of the Act;

7.121. Uncertified Learning Programme means any LearningProgramme of the Measured Entity that is not a Certified LearningProgramme.

7.122. Unincorporated Joint Venture means a joint venture between twoor more Measured Entities effected by agreement withoutincorporation.

7.123. Value-Adding Enterprise means an Entity registered as a vendorunder the Value-Added Tax of 1991, whose Net Profit Before Taxsummed with its Total Labour Cost exceeds 25% of the value of itsTotal Revenue.

7.124. Voting Right means a voting right attaching to an Equity instrumentowned by or held for a Participant measured using the Flow-Through Principle or the Control Principle.

7.125. Weighing means the weightings applied to the various Elements inthe Generic Scorecard.

7.126. Workplace Skills Plan means the plan of a Measured Entityapproved by the relevant SETA.

7.127.50% black owned means an Entity in which:

a. black people hold more than 50% of the exercisable votingrights as determined under Code series 100;

b. black people hold more than 50% of the economic interest asdetermined under Code series 100; and

c. has earned all the points for Net Value under statement 100.

7.128.50% black women owned means an Entity in which:

a. black women hold more than 50% of the exercisable votingrights as determined under code series 100;

b. black women hold more than 50% of the economic interest asdetermined under Code series 100; and

c. has earned all the points for Net Value under statement 100.

40 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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7.129. 30% black women owned means an Entity in which:

a. black women hold more than 30% of the exercisable votingrights as determined under code series 100;

b. black women hold more than 30% of the economic interest asdetermined under Code series 100; and

c. has earned all the points for Net Value under Statement 100.

The definitions in the B-BBEE Act (53 of 2003) and the Codes of GoodPractice, as published by the Department of Trade and Industry, willprevail in cases where clarity regarding definitions is required.

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 41

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39A

griB

EE

SC

OR

EC

AR

D

The

Agr

iBE

E S

ecto

r C

ode

(Sco

reca

rd)

enjo

ys e

qual

sta

tus

with

that

of a

ny o

ther

cod

e, in

clud

ing

the

Gen

eric

Cod

es o

f Goo

dP

ract

ice.

Mea

sure

men

t Prin

cipl

es:

A M

easu

red

Ent

erpr

ise'

s sc

ore

for

a pa

rtic

ular

indi

cato

r is

cal

cula

ted

by d

ivid

ing

the

ente

rpris

e's

actu

al c

ontr

ibut

ion

(as

desc

ribed

by

the

rele

vant

indi

cato

r) b

y th

e co

rres

pond

ing

targ

etT

he r

esul

t is

mul

tiplie

d by

the

corr

espo

ndin

g in

dica

tor

wei

ghtin

g po

ints

to o

btai

n a

scor

e fo

r th

at in

dica

tor

Whe

re th

e en

terp

rise

atta

ins

a sc

ore

in e

xces

s of

the

indi

cato

r w

eigh

ting

poin

ts, t

he e

nter

pris

e sh

all o

nly

be e

ntitl

ed to

the

corr

espo

ndin

g w

eigh

ting

poin

tsT

he s

core

for

an e

lem

ent i

s th

e su

m o

f ind

icat

or s

core

s un

der

that

ele

men

tA

Mea

sure

d E

nter

pris

e's

over

all B

EE

sco

re o

ut o

f 100

will

det

erm

ine

its B

EE

sta

tus

and

BE

E p

rocu

rem

ent r

ecog

nitio

nle

vel

Tar

gets

con

tain

ed in

the

Agr

iBE

E S

core

card

are

bas

ed o

n th

ose

cont

aine

d in

the

Bro

ad-B

ased

Bla

ck E

cono

mic

Em

pow

erm

ent

Cod

es o

f Goo

d P

ract

ice

as p

ublis

hed

by th

e D

epar

tmen

t of T

rade

and

Indu

stry

, Feb

ruar

y 20

07, a

s w

ell a

s on

sta

keho

lder

inpu

ts,

com

men

ts a

nd r

ecom

men

datio

ns. W

here

no

subs

tant

ive

reas

ons

for

devi

atio

n fr

om ta

rget

s co

ntai

ned

in th

e C

odes

of G

ood

Pra

ctic

e w

ere

put f

orw

ard

by s

take

hold

ers,

targ

ets

have

larg

ely

rem

aine

d al

igne

d w

ith th

ose

cont

aine

d in

the

Cod

es o

f Goo

dP

ract

ice.

Atte

ntio

n is

dra

wn

to C

laus

e 5.

1.2.

2 in

term

s of

ow

ners

hip

for

ente

rpris

es.

42 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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40

ELE

ME

NT

Wei

ghtin

gIn

dica

tor

Cat

egor

y

Indi

cato

rIn

dica

tor

Wei

ghtin

g

Poi

nts

TA

RG

ET

.0.

.c E.) 0 c 3 0

20%

Vot

ing

right

s

Exe

rcis

able

Vot

ing

Rig

hts

in th

e E

nter

pris

e in

the

hand

s of

bla

ck p

eopl

e3

25%

+ 1

vote

Exe

rcis

able

Vot

ing

Rig

hts

in th

e en

terp

rise

in th

e ha

nds

of b

lack

wom

en2

10%

Eco

nom

ic

inte

rest

Eco

nom

ic In

tere

st in

the

ente

rpris

e to

whi

ch b

lack

peo

ple

are

entit

led

425

%

Eco

nom

ic In

tere

st in

the

Ent

erpr

ise

to w

hich

bla

ck w

omen

are

ent

itled

210

%

Eco

nom

ic in

tere

st in

the

Ent

erpr

ise

to w

hich

bla

ck d

esig

nate

d gr

oups

,dee

med

part

icip

ants

in d

istr

ibut

ion

sche

mes

or

empl

oyee

sch

emes

; par

ticip

ants

in c

o-

oper

ativ

es, a

re e

ntitl

ed

12.

5%

Rea

lisat

ion

poin

ts

Ow

ners

hip

fulfi

lmen

t1

No

Res

tric

tions

Net

Equ

ity In

tere

st A

chie

ved

acco

rdin

gly:

(See

CoG

P)

10%

of t

he T

arge

t (Y

ear

1)

20%

of t

he T

arge

t (Y

ear

2)

40%

of t

he T

arge

t (Y

ear

3-4)

60%

of t

he T

arge

t (Y

ear

5-6)

80%

of t

he T

arge

t (Y

ear

7-8)

100%

of t

he T

arge

t (Y

ear

9-10

)

725

%

Bon

us p

oint

sIn

volv

emen

t in

the

owne

rshi

p of

the

Ent

erpr

ise

of b

lack

new

ent

rant

s; b

lack

disa

bled

peo

ple,

bla

ck y

outh

and

bla

ck D

eem

ed P

artic

ipan

ts o

f Bro

ad-B

ased

Ow

ners

hip

Sch

emes

; or

blac

k P

artic

ipan

ts in

Co-

oper

ativ

es

3B

onus

per

each

leve

l of

5%

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 43

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41

.c.

.c d a 03 to

20%

Com

mer

cial

agr

icul

tura

l lan

d tr

ansf

erre

d or

sol

d to

bla

ck p

eopl

e (T

he fu

ll de

tail

of th

is m

atte

r ca

n on

ly b

e fin

aliz

ed o

nce

the

legi

slat

ive

fram

ewor

k em

anat

ing

from

the

curr

ent L

and

Ref

orm

Gre

en P

aper

has

bee

n es

tabl

ishe

d. U

ntil

such

time,

the

prov

isio

ns o

f thi

s S

ecto

r C

ode,

rea

d in

con

junc

tion

with

Sta

tem

ent

102,

Rec

ogni

tion

of S

ale

of A

sset

s of

the

Cod

es o

f Goo

d P

ract

ice,

will

be

valid

for

mea

sure

men

t pur

pose

s).

2030

%

44 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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42B

onus

poi

nts

Con

trib

utio

n to

ach

ievi

ng in

exc

ess

of 3

0% la

nd tr

ansf

er.

530

%

Not

e: G

iven

the

need

to tr

ansf

er la

nd in

sup

port

of n

atio

nal o

bjec

tives

, the

( B

onus

natu

re o

f far

min

g an

d th

e ne

ed to

sup

port

Bla

ck P

eopl

e in

est

ablis

hing

via

ble

poin

t per

com

mer

cial

farm

ing

Ent

erpr

ises

on

the

land

that

they

rec

eive

, Mea

sure

dea

ch

Ent

erpr

ises

are

enc

oura

ged

to s

ell l

and

in a

ccor

danc

e w

ith th

e pr

inci

ples

and

perc

enta

ge

crite

ria a

ttach

ed to

Qua

lifyi

ng T

rans

actio

ns a

s ou

tline

d be

low

. How

ever

, the

seof

land

crite

ria a

nd p

rinci

ples

will

onl

y ap

ply

for

a pe

riod

of 5

yea

rs fo

llow

ing

the

sale

of

tran

sfer

red

land

, whe

re a

fter

the

Mea

sure

d E

nter

pris

e w

ill e

njoy

con

tinue

d re

cogn

ition

for

abov

e 30

%

owne

rshi

p co

ntrib

utio

ns. T

his

refe

rs e

xclu

sive

ly to

title

dee

d la

nd tr

ansf

er.

of to

tal l

and)

Fur

ther

Bla

ck p

artic

ipat

ion

thro

ugh

owne

rshi

p in

the

Agr

i-Ind

ustr

y by

incr

easi

ng

the

leve

l of e

ntitl

emen

t of B

lack

Peo

ple

to p

artic

ipat

e in

the

Eco

nom

ic In

tere

st

and

Exe

rcis

able

Vot

ing

Rig

hts

in e

xist

ing

and

new

Ent

erpr

ises

. Thi

s in

clud

es

the

sale

of e

quity

in a

Mea

sure

d E

nter

pris

e, s

ale

of a

sset

s th

roug

h Q

ualif

ying

Tra

nsac

tions

and

/or

thro

ugh

shar

e eq

uity

sch

emes

and

oth

er fo

rms

of jo

int

vent

ures

with

farm

labo

urer

s an

d ot

her

Bla

ck e

ntre

pren

eurs

Com

mer

cial

agr

icul

tura

l lan

d tr

ansf

erre

d or

sol

d to

bla

ck p

eopl

e (T

he fu

ll de

tail

of th

is m

atte

r ca

n on

ly b

e fin

aliz

ed o

nce

the

legi

slat

ive

fram

ewor

k em

anat

ing

from

the

curr

ent L

and

Ref

orm

Gre

en P

aper

has

bee

n es

tabl

ishe

d).

In th

e

inte

rim th

ose

para

grap

h 5.

1.3

of th

is C

ode

shal

l app

ly. T

he p

rovi

sion

s of

this

Sec

tor

Cod

e, r

ead

in c

onju

nctio

n w

ith S

tate

men

t 102

, Rec

ogni

tion

of S

ale

of

Ass

ets

of th

e C

odes

of G

ood

Pra

ctic

e, w

ill b

e va

lid fo

r m

easu

rem

ent p

urpo

ses.

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43

T2

+6. o C.) t EE a) a) c as

10%

Boa

rd

Par

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atio

n

Per

cent

age

of e

xerc

isab

le V

otin

g R

ight

s he

ld b

y M

embe

rs o

f the

Boa

rd w

ho a

re

blac

k pe

ople

to th

e to

tal o

f all

Vot

ing

Rig

hts

exer

cise

d by

all

mem

bers

of t

he

Boa

rd

350

%

Exe

cutiv

e M

embe

rs o

f the

boa

rd w

ho a

re b

lack

peo

ple

150

%

Exe

cutiv

e M

embe

rs o

f the

boa

rd w

ho a

re b

lack

wom

en1

25%

Top

Man

agem

ent

Par

ticip

atio

n

Per

cent

age

that

Sen

ior

Top

Man

agem

ent w

ho a

re b

lack

peo

ple

cons

titut

e of

the

tota

l num

ber

of S

enio

r T

op M

anag

emen

t

240

%

Per

cent

age

that

Sen

ior

Top

Man

agem

ent w

ho a

re b

lack

wom

en c

onst

itute

of

the

tota

l num

ber

of S

enio

r T

op M

anag

emen

t

120

%

Per

cent

age

that

Oth

er T

op M

anag

emen

t who

are

bla

ck p

eopl

e co

nstit

ute

of th

e

tota

l num

ber

of O

ther

Top

Man

agem

ent

140

%

Per

cent

age

that

Oth

er T

op M

anag

emen

t who

are

bla

ck w

omen

con

stitu

te o

f the

tota

l num

ber

of O

ther

Top

Man

agem

ent

120

%

Bon

us P

oint

sP

erce

ntag

e th

at b

lack

peo

ple

who

are

Inde

pend

ent N

on-e

xecu

tive

Boa

rd

Mem

bers

con

stitu

e of

the

tota

l num

ber

of In

depe

nden

t Non

-exe

cutiv

e B

oard

Mem

bers

140

%

46 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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44

P = is Lli E0 >, o EE la

10%

Bla

ck p

eopl

e w

ith d

isab

ilitie

s em

ploy

ed in

by

the

Mea

sure

d E

nter

pris

e as

a

perc

enta

ge o

f all

full-

time

empl

oyee

s

23%

Bla

ck p

eopl

e em

ploy

ed b

y th

e M

easu

red

Ent

erpr

ise

at S

enio

r M

anag

emen

t

leve

l as

a pe

rcen

tage

of e

mpl

oyee

s at

Sen

ior

Man

agem

ent l

evel

260

%

Bla

ck w

omen

em

ploy

ed b

y th

e M

easu

red

Ent

erpr

ise

at S

enio

r M

anag

emen

t

leve

l as

a pe

rcen

tage

of e

mpl

oyee

s at

Sen

ior

Man

agem

ent l

evel

230

%

Bla

ck p

eopl

e em

ploy

ed b

y th

e M

easu

red

Ent

erpr

ise

at P

rofe

ssio

nally

Qua

lifie

d,

Exp

erie

nced

Spe

cial

ist a

nd M

id-m

anag

emen

t lev

elas

a p

erce

ntag

eof

empl

oyee

sat

Pro

fess

iona

llyQ

ualif

ied,

Exp

erie

nced

Spe

cial

ist a

ndM

id-

man

agem

ent l

evel

275

%

Bla

ck w

omen

em

ploy

ed b

y th

e M

easu

red

Ent

erpr

ise

at P

rofe

ssio

nally

Qua

lifie

d,

Exp

erie

nced

Spe

cial

ist a

nd M

id-m

anag

emen

t lev

elas

a p

erce

ntag

eof

empl

oyee

sat

Pro

fess

iona

llyQ

ualif

ied,

Exp

erie

nced

Spe

cial

ist a

ndM

id-

man

agem

ent l

evel

140

%

Bla

ck p

eopl

e em

ploy

ed b

y th

e M

eaus

ured

Ent

erpr

ise

at S

kille

d T

echn

ical

and

Aca

dem

ical

ly Q

ualif

ied

Wor

kers

, Jun

ior

Man

agem

ent,

Sup

ervi

sors

, For

emen

and

Sup

erin

tend

ents

as

a pe

rcen

tage

of e

mpl

oyee

s at

Ski

lled

Tec

hnic

al a

nd

Aca

dem

ical

ly Q

ualif

ied

Wor

kers

, Jun

ior

Man

agem

ent,

Sup

ervi

sors

, For

emen

and

Sup

erin

tend

ents

leve

l

180

%

Bon

us p

oint

for

mee

ting

or e

xcee

ding

the

EA

P ta

rget

in e

ach

cate

gory

abo

ve3

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 47

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45

0 E cs. o '3 0 o> N 32 u)

20%

Ski

lls D

evel

opm

ent S

pend

Ski

lls d

evel

opm

ent s

pend

on

blac

k em

ploy

ees

as a

per

cent

age

of

Levi

able

Am

ount

. (85

% o

f spe

nd fo

cuse

d on

cor

e sk

ills

as id

entif

ied

by

the

ente

rpris

e an

d cr

itica

lsk

ills

as id

entif

ied

and

accr

edite

d by

the

rele

vant

SE

TA

. If t

he M

easu

red

Ent

ity d

oes

not m

eet t

he 8

5% th

en th

e

poin

ts s

corin

g w

ill b

e pr

o ra

ted

).

72.

%

Ski

lls d

evel

opm

ent s

pend

on

blac

k w

omen

as

a pe

rcen

tage

of L

evia

ble

Am

ount

(85

% o

f spe

nd fo

cuse

d on

cor

e sk

ills

as id

entif

ied

by th

e

ente

rpris

e an

d cr

itica

l ski

lls a

s id

entif

ied

by th

e re

leva

nt S

ET

A.

If th

e

Mea

sure

d E

ntity

doe

s no

t mee

t the

85%

then

the

poin

ts s

corin

g w

ill b

e

pro

rate

d).

21%

Spe

nd o

n bl

ack

empl

oyee

s w

ith d

isab

ilitie

s as

a p

erce

ntag

e of

Lev

iabl

e

Am

ount

10.

2%

Rec

ogni

sed

Tra

inin

g

Pro

gram

mes

/Lea

rner

ship

s

Num

ber

of b

lack

em

ploy

ees

part

icip

atin

gin

trai

ning

pro

gram

mes

/

Lear

ners

hips

that

lead

to r

ecog

nise

d qu

alifi

catio

ns a

s pe

rcen

tage

of

tota

l em

ploy

ees.

35%

Num

ber

of b

lack

wom

en p

artic

ipat

ing

in tr

aini

ng p

rogr

amm

es th

at le

ad

to r

ecog

nise

d qu

alifi

catio

ns a

s pe

rcen

tage

of t

otal

em

ploy

ees

22.

5%

Num

ber

of p

eopl

e w

ho a

re m

embe

rs o

f Bla

ck D

esig

nate

d G

roup

s

part

icip

atin

gin

trai

ning

prog

ram

mes

/ Lea

rner

ship

sth

atle

adto

reco

gnis

ed q

ualif

icat

ions

as

perc

enta

ge o

f tot

al e

mpl

oyee

s.

31%

Num

ber

of B

lack

em

ploy

ees

part

icip

atin

gin

AB

ET

Tra

inin

g as

a

perc

enta

ge o

f tot

al e

mpl

oyee

s.

21%

Bon

us p

oint

sP

erce

ntag

e of

em

ploy

ees

part

icip

atin

g in

AB

ET

leve

l 3 tr

aini

ngas

a

perc

enta

ge o

f tot

al e

mpl

oyee

s.

22%

48 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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46

w E 6" u 2) a. i 5 0 ii E) a.

20%

Pre

fere

ntia

l

Pro

cure

men

t

Spe

nd

B-B

BE

E p

rocu

rem

ent s

pend

from

all

supp

liers

bas

ed o

n B

-BB

EE

Pro

cure

men

t

Rec

ogni

tion

leve

ls a

s a

perc

enta

ge o

f Tot

al M

easu

red

Pro

cure

men

t Spe

nd

1270

%

B-B

BE

E p

rocu

rem

ent s

pend

from

Qua

lifyi

ng S

mal

l Ent

erpr

ises

sup

plie

rs b

ased

on B

-BB

EE

Pro

cure

men

t rec

ogni

tion

leve

ls a

s a

perc

enta

ge o

f Tot

al M

easu

red

Pro

cure

men

t Spe

nd

215

%

B-B

BE

E p

rocu

rem

ent s

pend

from

Exe

mpt

ed M

icro

Ent

erpr

ises

sup

plie

rs b

ased

on B

-BB

EE

Pro

cure

men

t rec

ogni

tion

leve

ls a

s a

perc

enta

ge o

f Tot

al M

easu

red

Pro

cure

men

t Spe

nd

15%

B-B

BE

E p

rocu

rem

ent s

pend

from

Exe

mpt

ed M

icro

Ent

erpr

ises

sup

plie

rs th

at

are

50%

Bla

ck o

wne

d as

a p

erce

ntag

e of

Tot

al M

easu

red

Pro

cure

men

t

reco

gniti

on S

pend

312

%

B-B

BE

E p

rocu

rem

ent s

pend

from

Exe

mpt

ed M

icro

Ent

erpr

ises

sup

plie

rs th

at

are

30%

Bla

ck w

omen

ow

ned

as a

per

cent

age

of T

otal

Mea

sure

d P

rocu

rem

ent

reco

gniti

on S

pend

28%

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 49

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47

'.' as E 0. o Tv > ID o S fl.

al +6 w

10%

Ent

erpr

ise

Dev

elop

men

t

Spe

nd

Ave

rage

ann

ual v

alue

of a

ll E

nter

pris

e D

evel

opm

ent c

ontr

ibut

ions

and

Sec

tor

Spe

cific

Pro

gram

mes

mad

e by

the

Mea

sure

d E

ntity

as

a pe

rcen

tage

of t

arge

t

103%

of N

PA

T

Bon

us P

oint

s

Ent

erpr

ise

deve

lopm

ent c

ontr

ibut

ions

that

dire

ctly

incr

ease

em

ploy

men

t lev

els

in p

rece

ding

yea

r

.

2O

ne p

oint

for

ever

y 5%

prov

en

incr

ease

in

perm

anen

t

empl

oym

ent

for

blac

k

peop

le o

n

prev

ious

year

's

perm

anen

t

empl

oym

ent

50 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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Z E (7) 0 ci o - E c oo o I) o o0 co

10%

SE

D S

pend

and/

or L

and

avai

labl

e to

farm

wor

kers

'

Ave

rage

ann

ual v

alue

of a

ll S

ED

con

trib

utio

ns a

nd S

ecto

r S

peci

fic P

rogr

amm

es

mad

e by

the

Mea

sure

d E

ntity

as

a pe

rcen

tage

of t

arge

t and

/or

Land

mad

e

avai

labl

e to

farm

wor

kers

mea

sure

d fr

om th

e co

mm

ence

men

t dat

e of

this

Sec

tor

Cod

e or

the

Ince

ptio

n D

ate

over

10

year

s of

the

Cod

e pe

riod.

The

Ince

ptio

n da

te c

hose

n by

the

Mea

sure

d E

ntity

mus

t not

be

earli

er th

an 5

yea

rs

befo

re th

e co

mm

ence

men

t dat

e of

this

sta

tem

ent,

but b

inds

the

Mea

sure

d

Ent

ity fo

r th

e du

ratio

n of

this

sta

tem

ent.

101,

0% o

f

NP

AT

10%

Lan

d

of th

e to

tal

land

ow

ned

by th

e

Mea

sure

d

Ent

ity

Bon

us P

oint

SE

D c

ontr

ibut

ions

ben

efiti

ng b

lack

peo

ple

in r

ural

com

mun

ities

or

geog

raph

ic

area

s id

entif

ied

in g

over

nmen

t's in

terg

rate

d su

stai

nabl

e de

velo

pmen

t

prog

ram

me

and

urba

n re

new

al p

rogr

amm

e

1

Leas

e of

20%

of l

and

or c

apita

l ass

ets

owne

d by

the

Mea

sure

d E

ntity

on

a lo

ng

term

bas

is to

bla

ck p

erso

ns w

hich

mee

ts th

e cr

iteria

of a

qua

lifyi

ng tr

ansa

ctio

n

as o

utlin

ed in

par

agra

ph 5

.1.1

.2

2

Leas

e

long

er th

an

10 y

ears

IA le

ased

con

trac

t sig

ned

betw

een

the

wor

kers

and

the

Mea

sure

d E

ntity

mus

t ser

ve a

s a

proo

f.

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 51

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49

Agr

iBE

E Q

SE

SC

OR

EC

AR

D

The

gaz

ettin

g of

Agr

iBE

E S

ecto

r C

ode

in te

rms

of S

ectio

n 9

of th

e A

ct e

vide

nces

the

com

mitm

ent b

y al

l sta

keho

lder

s to

pro

mot

ean

d im

plem

ent B

EE

in th

e ag

ricul

tura

l sec

tor.

The

Agr

iBE

E S

ecto

r C

ode

(Sco

reca

rd)

enjo

ys e

qual

sta

tus

with

that

of a

ny o

ther

code

, inc

ludi

ng th

e G

ener

ic C

odes

of G

ood

Pra

ctic

e.

Tar

gets

con

tain

ed in

the

Agr

iBE

E Q

SE

Sco

reca

rd a

re b

ased

on

thos

e co

ntai

ned

in th

e B

road

-Bas

ed B

lack

Eco

nom

icE

mpo

wer

men

t Cod

es o

f Goo

d P

ract

ice

as p

ublis

hed

by th

e D

epar

tmen

t of T

rade

and

Indu

stry

, Feb

ruar

y 20

07, a

s w

ell a

s on

stak

ehol

der

inpu

ts, c

omm

ents

and

rec

omm

enda

tions

. Whe

re n

o su

bsta

ntiv

e re

ason

s fo

r de

viat

ion

from

targ

ets

cont

aine

d in

the

Cod

es o

f Goo

d P

ract

ice

wer

e pu

t for

war

d by

sta

keho

lder

s, ta

rget

s ha

ve la

rgel

y re

mai

ned

alig

ned

with

thos

e co

ntai

ned

in th

eC

odes

of G

ood

Pra

ctic

e.

A Q

ualif

ying

Sm

all E

nter

pris

e (`

QS

E')

is a

n E

nter

pris

e w

hich

qua

lifie

s fo

r B

EE

com

plia

nce

mea

sure

men

t in

term

s of

the

Agr

icul

tura

l Qua

lifyi

ng S

mal

l Ent

erpr

ise

Sco

reca

rd b

y na

ture

of h

avin

g to

tal r

even

ue o

f mor

e th

an R

5 m

illio

n (s

ubje

ct to

adj

ustm

ent)

but l

ess

than

R35

mill

ion.

An

Exe

mpt

ed M

icro

Ent

erpr

ise

(`E

ME

') is

an

Ent

erpr

ise

whi

ch q

ualif

ies

for

BE

E c

ompl

ianc

e ex

empt

ion

by n

atur

e of

the

fact

that

the

Ent

erpr

ise

has

an a

nnua

l tur

nove

r of

less

than

R5

mill

ion

and

mee

ts th

e pr

inci

ples

of n

on-c

ircum

vent

ion

as d

efin

ed in

the

Cod

es o

fG

ood

Pra

ctic

e C

ode

000

Sta

tem

ent 0

00. E

ME

's w

ill e

njoy

a d

eem

ed B

EE

rec

ogni

tion

leve

l of e

ither

Lev

el 3

or

4 (a

s de

fined

in th

eC

odes

of G

ood

Pra

ctic

e), a

nd s

uffic

ient

evi

denc

e of

qua

lific

atio

n as

an

Exe

mpt

ed M

icro

-ent

erpr

ise

is a

n au

dito

r's c

ertif

icat

e or

sim

ilar

cert

ifica

te is

sued

by

an a

ccou

ntin

g of

ficer

or

verif

icat

ion

agen

cy. H

owev

er, E

ME

's a

re e

ncou

rage

d to

con

trib

ute

totr

ansf

orm

atio

n in

agr

icul

ture

, par

ticul

arly

in th

e ar

eas

of s

kills

dev

elop

men

t and

soc

io-e

cono

mic

dev

elop

men

t and

are

ther

efor

ein

cent

ivis

edto

incr

ease

thei

rB

EE

stat

us,

asou

tline

din

this

Cod

e.

52 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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50

Ele

men

tA

griB

EE

QS

ES

core

card

Wei

ghtin

g

Gen

eric

QS

E S

core

card

'W

eigh

ting

Ow

ners

hip

20 p

oint

s25

poi

nts

Man

agem

ent c

ontr

ol20

poi

nts

25 p

oint

s

Em

ploy

men

t equ

ity20

poi

nts

25 p

oint

s

Ski

lls D

evel

opm

ent

20 p

oint

s25

poi

nts

Pre

fere

ntia

l pro

cure

men

t20

poi

nts

25 p

oint

s

Ent

erpr

ise

deve

lopm

ent

20 p

oint

s25

poi

nts

Res

idua

l20

poi

nts

25 p

oint

s

A Q

ualif

ying

Sm

all E

nter

pris

e m

ust e

lect

to b

e m

easu

red

usin

g, a

t lea

st, f

ive

of th

e se

ven

elem

ents

of t

he A

griB

EE

Sco

reca

rd a

ccor

ding

to it

s ow

n ch

oice

.ln th

e ag

ricul

tura

l sec

tor,

maj

ority

of t

he fa

rmer

s fa

ll in

the

cate

gory

of Q

SE

and

as

such

, the

re is

a n

eed

for

them

to s

elec

t fiv

e (5

) el

emen

ts in

stea

d of

four

(4)

ele

men

ts p

resc

ribed

in th

e G

ener

ic C

odes

of

Goo

d P

ract

ice

for

the

purp

ose

of fa

sttr

acki

ng tr

ansf

orm

atio

n in

the

sect

or.

Eac

h in

dica

tor

will

hav

e a

wei

ghtin

g of

20

perc

ent,

resu

lting

in a

tota

l of 1

40 a

vaila

ble

BE

E p

oint

s.W

hen

elec

ting

to b

e m

easu

red

usin

g m

ore

than

five

of t

he s

even

ele

men

ts, t

he B

EE

Sta

tus

mus

t be

dete

rmin

ed u

sing

the

max

imum

num

ber

of B

EE

poi

nts

avai

labl

e to

it.

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 53

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51

For

the

purp

ose

of fa

st-t

rack

ing

tran

sfor

mat

ion

(equ

ity o

wne

rshi

p) a

nd in

cent

iviz

ing

QS

Es

in th

e ag

ricul

tura

l sec

tor,

an

ente

rpris

eth

at g

ets

20 p

oint

s fo

r th

is e

lem

ent,

qual

ifies

for

a m

ultip

lier

of 1

.25

on to

p of

the

20 p

oint

s, p

rovi

ded

that

ent

erpr

ise

has

achi

eved

the

25%

targ

et in

full.

Thi

s is

als

o a

sect

or e

ndea

vor

to e

ncou

rage

bro

ad-b

ased

em

pow

erm

ent,

and

owne

rshi

p ha

s al

way

s be

en a

core

tran

sfor

mat

ion

cons

ider

atio

n of

the

sect

or.

Mea

sure

men

t Prin

cipl

es:

A M

easu

red

Ent

erpr

ise'

s sc

ore

for

a pa

rtic

ular

indi

cato

r is

cal

cula

ted

by d

ivid

ing

the

ente

rpris

e's

actu

al c

ontr

ibut

ion

(as

desc

ribed

by

the

rele

vant

indi

cato

r) b

y th

e co

rres

pond

ing

targ

etT

he r

esul

t is

mul

tiplie

d by

the

corr

espo

ndin

g in

dica

tor

wei

ghtin

g po

ints

to o

btai

n a

scor

e fo

r th

at in

dica

tor

Whe

re th

e en

terp

rise

atta

ins

a sc

ore

in e

xces

s of

the

indi

cato

r w

eigh

ting

poin

ts, t

he e

nter

pris

e sh

all o

nly

be e

ntitl

ed to

the

corr

espo

ndin

g w

eigh

ting

poin

tsT

he s

core

for

an e

lem

ent i

s th

e su

m o

f ind

icat

or s

core

s un

der

that

ele

men

tA

mea

sure

d en

terp

rise'

s ov

eral

l BE

E s

core

out

of 1

00 w

ill d

eter

min

e its

BE

E s

tatu

s an

d B

EE

pro

cure

men

t rec

ogni

tion

leve

l

54 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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52

ELE

ME

NT

WE

IGH

TIN

GC

AT

EG

OR

YIN

DIC

AT

OR

IND

ICA

TO

R

WE

IGH

TIN

G

PO

INT

S

TA

RG

ET

a. x co cc w 020

%

Vot

ing

right

sE

xerc

isab

le V

otin

g R

ight

s in

the

Ent

erpr

ise

in th

e ha

nds

of b

lack

peo

ple

525

%+

1 v

ote

Eco

nom

ic

inte

rest

Eco

nom

ic in

tere

st in

the

Ent

erpr

ise

to w

hich

bla

ck p

eopl

e ar

e en

title

d

725

%

Rea

lisat

ion

poin

ts

Ow

ners

hip

fulfi

llmen

t1

Yes

Net

equ

ity in

tere

st

10%

of t

he T

arge

t (Y

ear

1)

20%

of t

he T

arge

t (Y

ear

2)

40%

of t

he T

arge

t (Y

ear

3,4)

60%

of t

he T

arge

t (Y

ear

5,6)

80%

of t

he T

arge

t (Y

ear

7,8)

100%

of t

he T

arge

t (Y

ear

9,10

)

725

%

Bon

us p

oint

sIn

volv

emen

t in

the

owne

rshi

p of

the

Ent

erpr

ise

of:

-B

lack

Dis

able

d P

eopl

e

-B

lack

You

th

- B

lack

Wom

en a

nd/o

r

- B

road

-bas

ed O

wne

rshi

p S

chem

es

310

%

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 55

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53

a E N cc La Z 0 0

20%

Com

mer

cial

agr

icul

tura

l lan

d tr

ansf

erre

d or

sol

d to

bla

ck p

eopl

e (T

he

full

deta

il of

this

mat

ter

can

only

be

final

ized

onc

e th

e le

gisl

ativ

e

fram

ewor

k em

anat

ing

from

the

curr

ent L

and

Ref

orm

Gre

en P

aper

has

been

est

ablis

hed.

In th

e in

terim

par

agra

ph 5

.1.3

of t

his

Cod

e sh

all

appl

y. T

he p

rovi

sion

s of

this

Sec

tor

Cod

e, r

ead

in c

onju

nctio

n w

ith

Sta

tem

ent 1

02, R

ecog

nitio

n of

Sal

e of

Ass

ets

of th

e C

odes

of G

ood

Pra

ctic

e, w

ill b

e va

lid fo

r m

easu

rem

ent p

urpo

ses.

2030

%

Bon

us p

oint

sC

ontib

utio

n to

ach

ievi

ng in

exc

ess

of 3

0% la

nd tr

ansf

er. B

onus

poi

nt

per

each

per

cent

age

of la

nd tr

ansf

erre

d ab

ove

30%

of t

otal

land

530

%

56 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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54

w!-

etz

zw

gI 2

20%

Ow

ner-

Man

ager

Par

ticip

atio

n

Bla

ck r

epre

sent

atio

n at

Ow

ner/

man

ager

leve

l

2050

.1%

Bon

us P

oint

sB

lack

wom

en r

epre

sent

atio

n at

Ow

ner/

man

ager

leve

l2

25%

5 0 1- z tu 2 0 2 w

20%

Bla

ck r

epre

sent

atio

n at

Con

trol

ler/

sup

ervi

sor

leve

l as

a to

tal o

f all

man

agem

ent

660

%

Bla

ck w

omen

rep

rese

ntat

ion

at C

ontr

olle

r/ s

uper

viso

r le

vel a

s a

tota

l of

man

agem

ent

630

%

Bla

ck e

mpl

oyee

s as

per

cent

age

of to

tal e

mpl

oyee

s4

70%

Bla

ck w

omen

as

perc

enta

ge o

f tot

al e

mpl

oyee

s4

35%

Bon

us p

oint

for

mee

ting

or e

xcee

ding

the

EA

P ta

rget

s in

eac

h ca

tego

ry

abov

e

2

I- z 2Lu a. 0 -.I >UJ ur 0 co -J _i cn

20%

Em

ploy

ee e

nrol

lmen

t/ in

volv

emen

t in

Rec

ogni

sed

Tra

inin

g P

rogr

amm

es5

30%

Ski

lls d

evel

opm

ent s

pend

on

blac

k em

ploy

ees

as a

per

cent

age

of

Levi

able

Am

ount

. (85

% o

f spe

nd fo

cuse

d on

cor

e sk

ills

as id

entif

ied

by

the

ente

rpris

e an

d cr

itica

lsk

ills

as id

entif

ied

and

accr

edite

d by

the

rele

vant

SE

TA

. If t

he M

easu

red

Ent

ity d

oes

not m

eet t

he 8

5% th

en th

e

poin

ts s

corin

g w

ill b

e pr

o ra

ted)

.

152%

Per

cent

age

of e

mpl

oyee

s pa

rtic

ipat

ing

in A

BE

T le

vel 3

trai

ning

as

a

perc

enta

ge o

f tot

al e

mpl

oyee

s

22%

J 4C Z

17-

I- 1.1.

1

z2

lala

cccc

La0D

IL la 0

CC

CC

CL

a.

20%

B-B

BE

E p

rocu

rem

ent s

pend

from

Sup

plie

rsba

sed

onB

-BB

EE

Pro

cure

men

t rec

ogni

tion

leve

ls a

s a

perc

enta

ge o

f Tot

al M

easu

red

Pro

cure

men

t Spe

nd

2050

%

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 57

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55

i-ill

zC

OM

I

a2 0-

cc0

cu-I >

ILI

ILI 0

20%

Ave

rage

ann

ual v

alue

of a

ll E

nter

pris

e D

evel

opm

ent c

ontr

ibut

ions

and

Sec

tor

Spe

cific

Pro

gram

mes

mad

e by

the

Mea

sure

d E

ntity

as

a

perc

enta

ge o

f tar

get.

203%

of N

PA

T

< 0 0 QI- < cc 0 a. cc 0 0 0 Z 1

li0

wLu

2 lc%

46L1

.1 > 3c li cu 0 c.

) _ E o c o c.) I' p cl o cn

20%

SE

D S

pend

and/

or L

and

avai

labl

e to

farm

wor

kers

'

Ave

rage

ann

ual v

alue

of a

ll S

ED

con

trib

utio

ns a

nd S

ecto

r S

peci

fic

Pro

gram

mes

mad

e by

the

Mea

sure

d E

ntity

as

a pe

rcen

tage

of t

arge

t

and/

or L

and

mad

e av

aila

ble

to fa

rm w

orke

rs m

easu

red

from

the

com

men

cem

ent d

ate

of th

is S

ecto

r C

ode

or th

e In

cept

ion

Dat

e ov

er 1

0

year

s of

the

Cod

e pe

riod.

The

Ince

ptio

n da

te c

hose

n by

the

Mea

sure

d

Ent

ity m

ust n

ot b

e ea

rlier

than

5 y

ears

bef

ore

the

com

men

cem

ent d

ate

of th

is s

tate

men

t, bu

t bin

ds th

e M

easu

red

Ent

ity fo

r th

e du

ratio

n of

this

stat

emen

t.

20

1% o

f NP

AT

10%

(la

nd fo

r fa

rm

labo

urer

s in

pro

rata

).

Bon

us p

oint

s

Leas

e of

20%

land

or

capi

tal a

sset

s on

a lo

ng te

rm b

asis

to b

lack

pers

ons

whi

ch m

eets

the

crite

ria o

f a q

ualif

ying

tran

sact

ion

as o

utlin

ed

in p

arag

raph

5.1

.1.2

.

3Le

ase

long

er th

an

10 y

ears

Ent

erpr

ises

that

hav

e fu

lly c

ontr

ibut

ed to

the

Ow

ners

hip

Ele

men

t of

the

scor

ecar

d ha

ve a

n op

tion

of o

nly

cont

ribu

ting

to th

e SE

D p

ortio

n of

this

elem

ent w

hich

will

then

hav

e a

corr

espo

ndin

g 10

wei

ghtin

g po

ints

.

58 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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1A leased contract signed between the workers and the Measured Entity must serve asa proof.

agriculture,forestry & fisheriesDepartment:Agriculture, Forestry and FisheriesREPUBLIC OF SOUTH AFRICA

Resolution by the AgriBEE Charter Council -12 September 2012.

The following are the four (4) issues that will be deliberated and concluded

post the gazette of the AgriBEE Sector Code 9 (1) and once there is a clear

scientific and legislative directive on all the four issues, the AgriBEE Sector

Code will be amended accordingly through the Minister of Agriculture,

Forestry and Fisheries.

The issues are:

1. The inclusion of the contents of the Local Procurement Accord into the

AgriBEE Preferential Procurement Scorecard. The Department of Trade

and Industry will give guidance with regard to the revised Preferential

Procurement Scorecard;

2. The proposal that all farms that are subject to land claim in terms of Land

Restitution should be given an automatic level 4 BEE status or 3 (as

described in the Codes of Good Practice);

3. The review of the thresholds will be concluded once the AgriBEE

Economic Study has been concluded by the National Agricultural

Marketing Council; and

4. Any other amendment pertaining to the B-BBEE Act 53 of 2003 and the

Generic Codes of Good Practice by the Department of Trade and Industry

will be effected accordingly in the AgriBEE Sector Code.

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 59

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MINISTERAGRICULTURE. FORESTRY AND FISHERIES

REPUBLIC OF SOUTH AFRICA

Private Bag X250, Pretoria 0001. Tel: 012 319 7319, Fax: 012 321 8558Private Bag X9087, Cape Town 8000. Tel: 021 467 4502. Fax: 021 465 6550

SIGNATORIES TO THE GAZETTE OF THE AgriBEE SECTOR CODE IN TERMSOF SECTION 9 (1) OF THE BROAD-BASED BLACK ECONOMICEMPOWERMENT ACT NO. 53 OF 2003.

We the undersigned:

0 Representative organizations of major stakeholders in the Agricultural Sectorhereby confirm that we have participated in the process of developing theAgriBEE Sector Code and hereby commit ourselves to the gazette andimplementation of the AgriBEE Sector Code in terms of Section 9 (1) of the B-BBEE Act No. 53 of 2003.

--------------- ------ -Department of Agriculture, Forestry & Fisheries

FAWU

------ ------- ------WARD

Landless People Movement

Agbiz

1A leased contract signed between the workers and the Measured Entity must serve as a proof.

60 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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SO* 046010, 6.61. 04,0.1/.77P:4W aasSaSana OMa INIMAINNI ISM SW NM 41151{ 4110. 11111111111111111

SAAPA YARD

.100. IMOR ROSI.11,2011. MOP .11. an ANN SAW Me Mee as an ass stIMI Mt IRMA.* .07111. 444,1.1111,11ft AIM *Mr MOVISIO a1121.121; 411/130 OM. MM.& ftIM t1.1. 411.6 VIIN,110111.01ftet titi*Alf** 010.5 SAIM- Oet.

Department of Rural Development and Land Reform

0111 1 1 0 4 1 . 1 " i t v . + * _ _ 4 _ _ . _ . _ _ _ _4.4 Ad* 4,64,7,1+ .144. mt. rea..ageN taw p.p.. as. ay. aawSfla a a trtO:aini 4eloe 71.11, MOOPOIN 1*0 41,01rti

The Department of Trade and Industry TAU SA

n_ -.1449 ,1144 *Mo.. -.1,1,"'10. 4.1.W 11.11,0014 .144, +OH 5144.11....45119 uigis rawarMseAY. WRY NM AMR WI. WM

The Presidency: Office on the status of disabled persons

A leased contract signed between the workers and the Measured Entity must serve as a proof.

STAATSKOERANT, 28 DESEMBER 2012 No. 36035 61

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62 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

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STAATSKOERANT, 28 DESEMBER 2012 No. 36035 63

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64 No. 36035 GOVERNMENT GAZETTE, 28 DECEMBER 2012

36035—1

Printed by and obtainable from the Government Printer, Bosman Street, Private Bag X85, Pretoria, 0001Publications: Tel: (012) 334-4508, 334-4509, 334-4510

Advertisements: Tel: (012) 334-4673, 334-4674, 334-4504Subscriptions: Tel: (012) 334-4735, 334-4736, 334-4737

Cape Town Branch: Tel: (021) 465-7531

Gedruk deur en verkrygbaar by die Staatsdrukker, Bosmanstraat, Privaatsak X85, Pretoria, 0001Publikasies: Tel: (012) 334-4508, 334-4509, 334-4510

Advertensies: Tel: (012) 334-4673, 334-4674, 334-4504Subskripsies: Tel: (012) 334-4735, 334-4736, 334-4737

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