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Broad Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Agri-BEE Charter

2. Scope of Application

 

2.1. 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 in the production of agricultural products;
• The beneficiation of agricultural products whether of a primary or semi-beneficiated form; and
• The storage, distribution, and/or trading and allied activities related to non-beneficiated agricultural products.

 

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

 

2.3. This Sector Code applies to multinational businesses or South African multinationals whose business falls within the scope of the Code as defined in this section. Where a specific regime for multinationals exists in the Codes of Good Practice, this regime will apply.

 

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

 

2.5. Notwithstanding paragraph 2.4, Enterprises with an annual turnover of between R5 million and R35 million qualify for BEE compliance measurement in terms of the AgriBEE QSE Scorecard. However, it should 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 with the major stakeholders in the sector. Any such changes apply to compliance reports prepared for enterprises after a 12-month period following the gazetting of the adjustment.

 

2.6. Notwithstanding paragraph 2.4 and 2.5, Enterprises with an annual turnover of less than R5 million, will be classified as Exempted Micro Enterprises ('EME's'). EME's will enjoy a deemed BEE recognition level of either Level 3 or Level 4 (as defined in the Codes of Good Practice), and sufficient evidence of qualification as an Exempted Micro-enterprise is an auditor's letter or similar letter issued by an accounting officer or verification agency. However, EME's are encouraged to contribute to transformation in agriculture, particularly in the areas of skills development and socio-economic development and are therefore incentivised to increase their BEE status by adopting the generic Codes of Good Practice directive for EME's to move from Levels 3 and 4, respectively, to higher levels.

 

2.7. The AgriBEE Charter Council will review and adjust the turnover thresholds for QSE's and EME's periodically in line with relevant inflation indicators.