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

Amended AgriBEE Sector Code (2017)

2. Scope of Application

 

2.1. The scope of the Amended AgriBEE Sector Code shall include any Enterprise which derives more than 50% of its turnover from:
(a) the primary production of agricultural products;
(b) the provision of inputs and services to Enterprises engaged in the production of agricultural products;
(c) the beneficiation of agricultural products whether of a primary or semibeneficiated form; and
(d) the storage, distribution, and/or trading and allied activities related to nonbeneficiated agricultural products.

 

2.2. Where an Enterprise trades in more than one sector i.e. falls under more than one Sector Code, the Measured Enterprise must be guided by the principles embodied in the Amended Codes of Good Practice (refer to statement 003 of Amended Codes of Good Practice).
2.3. Despite paragraph 2.1 and 2.2 above, the AgriBEE Charter Council may in consultation with the measured entity, Minister of Agriculture, Forestry and Fisheries and Minister of Trade and Industry determine that the measured entity should fall under the scope of the AgriBEE Sector Code.

 

2.4. This Amended Sector Code applies to multinationals whose business falls within the scope of the Code as defined in this section. Where a specific regime for multinationals exists in the Amended Codes of Good Practice, this regime will apply.

 

2.5. Enterprises as defined in paragraph 2.1 above should measure their contributions to the elements of broad-based BEE as contained in the Amended AgriBEE Scorecard.

 

2.6. Notwithstanding paragraph 2.5, Enterprises with an annual total revenue of between R10 million and R50 million qualify for BEE compliance measurement in terms of the Amended AgriBEE QSE Scorecard (Black QSEs don’t have to be measured). 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.

 

2.7. Notwithstanding paragraph 2.5 and 2.6 above Enterprises with an annual total revenue of less than R10 million, will be classified as Exempted Micro Enterprises (‘EMEs’). EMEs will enjoy a deemed BEE recognition Level 4 (as defined in the Amended Codes of Good Practice), and sufficient evidence of qualification as an Exempted Micro-enterprise is a sworn affidavit or Companies and Intellectual Property Commission (CIPC) issued certificate. However, EMEs 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 this Amended AgriBEE Sector Code directive for EMEs to move from Lower Levels, to Higher Levels. Black EMEs and QSEs automatically qualify for level 1 (those that 100% Black owned) and 2 (those that are at least 51% Black owned).

 

2.8. The AgriBEE Sector Charter Council must review and adjust the revenue thresholds for QSEs and EMEs every two (2) years in line with relevant economic indicators and in expectation of the dti’s revision of the Sector Code.