AgriBEE: Status Quo and Way Forward
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Transcript of AgriBEE: Status Quo and Way Forward
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AgriBEE: Status Quo and
Way Forward
Theo de JagerDeputy President: Agri SA
17 September 2010
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Approaches
• Formal Processes• State led & funded
– Post Settlement in restitution
– LARP
– AgriBEE Charter & Council
– Recapitalisation Program
• Informal Processes• Private initiatives
– Agri-Business• FNB, Halls & Sons, GWK,
etc.
– Commodity Org’s• NWPO, MPO, SAPPO,
Maize Trust
– Farmers Associations• KWANALU, Agri-
Limpopo
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Formal Process
• Post Settlement– 90% failure– Community farming– Will cost more to restore than original price– No FA involvement
• LARP– Limpopo, W-Cape, E-Cape, Gauteng, KZN
• Recapitalisation– No FA involvement
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Land reform policy in SA
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Land reform policy in SA (cont)
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Land reform policy in SA:Key policy initiatives, 2004-2009
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Sector Participants
OtherStakeholders
(including relevantGovernment Department)
SteeringCommittee
Minister
Establish CharterCouncil
Meet Para 16(Statement 10)
QualificationCriteria
PublicProclamation
of CharterProcess
ConsultationProcess
Meet BEE(Act (s12)
Requirement
Gazette asTransformation
Charter
Apply GenericScorecard
MinisterDti
Applicationfor Gazette asSector Codes
IndependentThird-Party
Review
MeetStatement 10
CriteriaCharterMandate
Negotiationand
DraftingProcess
Sector Codes(SectorSpecific
Scorecards)
Draft Charter Technical
Committee
Does not meet Charter QualificationRequirement
Meet Requirements
FLOW CHART PROCESS FOR GAZETTING SECTOR CHARTERS
Codes Process
Negotiation, Drafting,
Publication
CharterProcessConsultation
31 March 2006
6 Dec 2008
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Reasons for slow pace
• Delays in publishing and appointing
• Revisiting of agreements
• Radical demands from government departments
• Conflict on recordkeeping, modus operandi, etc.
• No AgriBEE on Gazetted farms
• Incentives for compliance?
• Consider to stick to generic codes
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Private Initiatives
• Farmer Development Conference• Feb. 2010, Somerset West• Commodity driven• 73 Projects• R200 million over 5 years• Equity Schemes (WC, NC, EC)• Agri-Businesses with local farmers• Training institutions
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Current Contribution
• Farmer Development Contribution: R200
million over 5 years
• Tenure: 2,8 mil cared for by 40 000 farmers
• 40% less on land values
• Schools, crèches, graveyards, sports fields,
accommodation, food, health care, training,
transport, skills development
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Main Challenges
• Govt and Organised Agriculture working in silo’s; no cooperation, no trust
• Tendency not to restructure agriculture but to polarise it
• Corruption, nepotism, maladministration
• High expectations versus non-delivery
• Low profitability and high risk
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Solutions• Redesign
• Scientific, research based programNeeds drivenReal reasons for high costsData bases for land reform and BEE
• Appoint capable drivers
• Localise reform – inclusive local forums
• Create SPV for development financing
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Thank you