Broad Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersAgri-BEE CharterAgriBEE Scorecard |
The AgriBEE Sector Code (Scorecard) enjoys equal status with that of any other code, including the Generic Codes of Good Practice.
Measurement Principles:
• | A Measured Enterprise's score for a particular indicator is calculated by dividing the enterprise's actual contribution (as described by the relevant indicator) by the corresponding target |
• | The result is multiplied by the corresponding indicator weighting points to obtain a score for that indicator |
• | Where the enterprise attains a score in excess of the indicator weighting points, the enterprise shall only be entitled to the corresponding weighting points |
• | The score for an element is the sum of indicator scores under that element |
• | A Measured Enterprise's overall BEE score out of 100 will determine its BEE status and BEE procurement recognition level |
Targets contained in the AgriBEE Scorecard are based on those contained in the Broad-Based Black Economic Empowerment Codes of Good Practice as published by the Department of Trade and Industry, February 2007, as well as on stakeholder inputs, comments and recommendations. Where no substantive reasons for deviation from targets contained in the Codes of Good Practice were put forward by stakeholders, targets have largely remained aligned with those contained in the Codes of Good Practice.
Attention is drawn to Clause 5.1.2.2 in terms of ownership for enterprises.
Element |
Weighting |
Indicator Category |
Indicator |
Indicator Weighting Points |
Target |
Ownership |
20% |
Voting rights |
Exercisable Voting Rights in the Enterprise in the hands of black people |
3 |
25% + 1 vote |
Exercisable Voting Rights in the enterprise in the hands of black women |
2 |
10% |
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Economic interest |
Economic Interest in the enterprise to which black people are entitled |
4 |
25% |
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Economic Interest in the Enterprise to which black women are entitled |
2 |
10% |
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Economic interest in the Enterprise to which black designated groups,deemed participants in distribution schemes or employee schemes; participants in co- operatives, are entitled |
1 |
2.5% |
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Realisation points |
Ownership fulfilment |
1 |
No Restrictions |
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Net Equity Interest Achieved accordingly:(See CoGP) 10% of the Target (Year 1) 20% of the Target (Year 2) 40% of the Target (Year 3-4) 60% of the Target (Year 5-6) 80% of the Target (Year 7-8) 100% of the Target (Year 9-10) |
7 |
25% |
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Bonus points |
Involvement in the ownership of the Enterprise of black new entrants; black disabled people, black youth and black Deemed Participants of Broad-Based Ownership Schemes; or black Participants in Co-operatives |
3 |
Bonus per each level of 5% |
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Land Ownership |
20% |
Commercial agricultural land transferred or sold to black people (The full detail of this matter can only be finalized once the legislative framework emanating from the current Land Reform Green Paper has been established. Until such time, the provisions of this Sector Code, read in conjunction with Statement 102, Recognition of Sale of Assets of the Codes of Good Practice, will be valid for measurement purposes). |
20 |
30% |
|
Bonus points |
Contribution to achieving in excess of 30% land transfer.
Note: Given the need to transfer land in support of national objectives, the nature of farming and the need to support Black People in establishing viable commercial farming Enterprises on the land that they receive, Measured Enterprises are encouraged to sell land in accordance with the principles and criteria attached to Qualifying Transactions as outlined below. However, these criteria and principles will only apply for a period of 5 years following the sale of land, where after the Measured Enterprise will enjoy continued recognition for ownership contributions. This refers exclusively to title deed land transfer.
Further Black participation through ownership in the Agri-Industry by increasing the level of entitlement of Black People to participate in the Economic Interest and Exercisable Voting Rights in existing and new Enterprises. This includes the sale of equity in a Measured Enterprise, sale of assets through Qualifying Transactions and/or through share equity schemes and other forms of joint ventures with farm labourers and other Black entrepreneurs
Commercial agricultural land transferred or sold to black people (The full detail of this matter can only be finalized once the legislative framework emanating from the current Land Reform Green Paper has been established). In the interim those paragraph 5.1.3 of this Code shall apply. The provisions of this Sector Code, read in conjunction with Statement 102, Recognition of Sale of Assets of the Codes of Good Practice, will be valid for measurement purposes. |
5 |
30% (Bonus point per each percentage of land transferred above 30% of total land) |
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Management Control |
10% |
Board Participation |
Percentage of exercisable Voting Rights held by Members of the Board who are black people to the total of all Voting Rights exercised by all members of the Board |
3 |
50% |
Executive Members of the board who are black people |
1 |
50% |
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Executive Members of the board who are black women |
1 |
25% |
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Top Management Participation |
Percentage that Senior Top Management who are black people constitute of the total number of Senior Top Management |
2 |
40% |
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Percentage that Senior Top Management who are black women constitute of the total number of Senior Top Management |
1 |
20% |
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Percentage that Other Top Management who are black people constitute of the total number of Other Top Management |
1 |
40% |
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Percentage that Other Top Management who are black women constitute of the total number of Other Top Management |
1 |
20% |
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Bonus Points |
Percentage that black people who are Independent Non-executive Board Members constitute of the total number of Independent Non-executive Board Members |
1 |
40% |
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Employment Equity |
10% |
Black people with disabilities employed in by the Measured Enterprise as a percentage of all full-time employees |
2 |
3% |
|
Black people employed by the Measured Enterprise at Senior Management level as a percentage of employees at Senior Management level |
2 |
60% |
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Black women employed by the Measured Enterprise at Senior Management level as a percentage of employees at Senior Management level |
2 |
30% |
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Black people employed by the Measured Enterprise at Professionally Qualified, Experienced Specialist and Mid-management level as a percentage of employees at Professionally Qualified, Experienced Specialist and Mid-management level |
2 |
75% |
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Black women employed by the Measured Enterprise at Professionally Qualified, Experienced Specialist and Mid-management level as a percentage of employees at Professionally Qualified, Experienced Specialist and Mid-management level |
1 |
40% |
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Black people employed by the Measured Enterprise at Skilled Technical and Academically Qualified Workers, Junior Management, Supervisors, Foremen and Superintendents as a percentage of employees at Skilled Technical and Academically Qualified Workers, Junior Management, Supervisors, Foremen and Superintendents level |
1 |
80% |
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Bonus point for meeting or exceeding the EAP target in each category above |
3 |
|
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Skills Development |
20% |
Skills Development Spend |
Skills development spend on black employees as a percentage of Leviable Amount. (85% of spend focused on core skills as identified by the enterprise and critical skills as identified and accredited by the relevant SETA. If the Measured Entity does not meet the 85% then the points scoring will be pro rated). |
7 |
2.% |
Skills development spend on black women as a percentage of Leviable Amount (85% of spend focused on core skills as identified by the enterprise and critical skills as identified by the relevant SETA. If the Measured Entity does not meet the 85% then the points scoring will be pro rated). |
2 |
1% |
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Spend on black employees with disabilities as a percentage of Leviable Amount |
1 |
0.2% |
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Recognised Training Programmes/ Learnerships |
Number of black employees participating in training programmes/Learnerships that lead to recognised qualifications as percentage of total employees. |
3 |
5% |
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Number of black women participating in training programmes that lead to recognised qualifications as percentage of total employees. |
2 |
2.5% |
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Number of people who are members of Black Designated Groups participating in training programmes/Learnerships that lead to recognised qualifications as percentage of total employees. |
3 |
1% |
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Number of Black employees participating in ABET Training as a percentage of total employees. |
2 |
1% |
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Bonus points |
Percentage of employees participating in ABET level 3 training as a percentage of total employees. |
2 |
2% |
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Preferential Procurement |
20% |
Preferential Procurement Spend |
B-BBEE procurement spend from all suppliers based on B-BBEE Procurement Recognition levels as a percentage of Total Measured Procurement Spend |
12 |
70% |
B-BBEE procurement spend from Qualifying Small Enterprises suppliers based on B-BBEE Procurement recognition levels as a percentage of Total Measured Procurement Spend |
2 |
15% |
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B-BBEE procurement spend from Exempted Micro Enterprises suppliers based on B-BBEE Procurement recognition levels as a percentage of Total Measured Procurement Spend |
1 |
5% |
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B-BBEE procurement spend from Exempted Micro Enterprises suppliers that are 50% Black owned as a percentage of Total Measured Procurement recognition Spend |
3 |
12% |
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B-BBEE procurement spend from Exempted Micro Enterprises suppliers that are 30% Black women owned as a percentage of Total Measured Procurement recognition Spend |
2 |
8% |
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Enterprise Development |
10% |
Enterprise Development Spend |
Average annual value of all Enterprise Development contributions and Sector Specific Programmes made by the Measured Entity as a percentage of target |
10 |
3% of NPAT |
Bonus Points |
Enterprise development contributions that directly increase employment levels in preceding year |
2 |
One point for every 5% proven increase in permanent employment for black people on previous year's permanent employment |
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Socio-Economic Development |
10% |
SED Spend and/or Land available to farm workers 1 |
Average annual value of all SED contributions and Sector Specific Programmes made by the Measured Entity as a percentage of target and/or Land made available to farm workers measured from the commencement date of this Sector Code or the Inception Date over 10 years of the Code period. The Inception date chosen by the Measured Entity must not be earlier than 5 years before the commencement date of this statement, but binds the Measured Entity for the duration of this statement. |
10 |
1,0% of NPAT |
10% Land of the total land owned by the Measured Entity |
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Bonus Point |
SED contributions benefiting black people in rural communities or geographic areas identified in government's integrated sustainable development programme and urban renewal programme |
1 |
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Lease of 20% of land or capital assets owned by the Measured Entity on a long term basis to black persons which meets the criteria of a qualifying transaction as outlined in paragraph 5.1.1.2 |
2 |
Lease longer than 10 years |
1 A leased contract signed between the workers and the Measured Entity must serve as a proof.