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AgriBEE: Status Quo and Way Forward

AgriBEE: Status Quo and Way Forward. Theo de Jager Deputy President: Agri SA 17 September 2010. Approaches. Formal Processes State led & funded Post Settlement in restitution LARP AgriBEE Charter & Council Recapitalisation Program. Informal Processes Private initiatives

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AgriBEE: Status Quo and Way Forward

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  1. AgriBEE: Status Quo and Way Forward Theo de Jager Deputy President: Agri SA 17 September 2010

  2. 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

  3. 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

  4. Land reform policy in SA

  5. Land reform policy in SA (cont)

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

  7. FLOW CHART PROCESS FOR GAZETTING SECTOR CHARTERS Charter Process Consultation Codes Process Does not meet Charter Qualification Requirement Sector Participants Meet Para 16 (Statement 10) Qualification Criteria Apply Generic Scorecard Negotiation, Drafting, Publication Meet Requirements Application for Gazette as Sector Codes Public Proclamation of Charter Process Other Stakeholders (including relevant Government Department) Minister Sector Codes (Sector Specific Scorecards) Minister Dti Consultation Process Steering Committee Independent Third-Party Review Meet BEE (Act (s12) Requirement Meet Statement 10 Criteria Gazette as Transformation Charter Charter Mandate Draft Charter Negotiation and Drafting Process Technical Committee Establish Charter Council 31 March 2006 6 Dec 2008

  8. 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

  9. 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

  10. 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

  11. 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

  12. Solutions • Redesign • Scientific, research based program • Needs driven • Real reasons for high costs • Data bases for land reform and BEE • Appoint capable drivers • Localise reform – inclusive local forums • Create SPV for development financing

  13. Thank you

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