Acts Online
GT Shield

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

Amended AgriBEE Sector Code (2017)

7. Elements of Empowerment

7.2 Ownership

 

7.2 OWNERSHIP

 

The objective of this element is to increase the participation of Black People in the Agri-Industry by increasing the level of entitlement of Black People to participate in the Economic Interest and Exercisable Voting Rights of Enterprises in the Sector. When dealing with disposal/transfer/selling of Agricultural land as an asset the principles of Statement 102 of the Amended Codes of Good Practice will apply plus section 7.2.1.8 (b) of this statement. However, the target for land ownership is 30% which is the target that was agreed from the previous AgriBEE Sector Code.

 

7.2.1        General Ownership

 

7.2.1.2 The mission of this element is to enhance equitable access and participation in the agricultural Sector; to de-racialise land and Enterprise ownership; and to unlock the full entrepreneurial potential in the Sector.
7.2.1.3 AgriBEE is fundamental to the long-term growth and competitiveness of the Agricultural Sector. AgriBEE activities and processes should ultimately lead to the creation of viable and sustainable Enterprises in the Agricultural Sector.
7.2.1.4 Stakeholders in the Sector will work towards the development and implementation of a diversity of Enterprise ownership models in support of AgriBEE.
7.2.1.5 All Sector Stakeholders should endeavour to source sufficient financing in order to ensure the establishment of viable and sustainable Enterprises.
7.2.1.6 All other key principles of Statement 100 of the Amended Generic Codes not addressed in this statement are applicable.
7.2.1.7 Enterprises (farms) with gazetted land claims are exempted from the Ownership element, provided that there is sufficient evidence from the Land Claim Commission supporting the gazetted land claim. Where a percentage of the land is under land claim the exemption from ownership should be proportional. Such enterprises (farms) with land claim must use the specialised scorecard until such a time that the land claim has been finalised.
7.2.1.8 Despite 7.2.1.7 above, entities whose ownership of land is separate from enterprise equity ownership, i.e. owned and managed under two different legal entities, must comply with the ownership element.

 

Agri-Industry undertakes to:—

(a) 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 workers and other Black entrepreneurs;
(b) Qualifying Transactions must be scored in terms of Statement 102 of the Amended Codes of Good Practice, under the Ownership Element which states that equivalency points may be earned under the ownership element through this mechanism. All other principles of Statement 102 apply including the following:
I. the creation of sustainable businesses or business opportunities for Black People;
II. the transfer of specialised skills or productive capacity to Black People;
III. it must not result in unnecessary job-losses; and
IV. it must involve a separate Associated Enterprise which has:
➢ no unreasonable limitations with respect to its clients or customers;
➢ clients, customers or suppliers other than the Enterprise with which the Qualifying Transaction was undertaken; and
➢ no operational outsourcing arrangements with the initiating Enterprise that were not concluded at arms-length on a fair and reasonable basis.

 

Government undertakes to:—

(a) Implement all legislative and other measures at its disposal to facilitate black ownership.
(b) Facilitate access to state B-BBEE funds that are made available by government departments, State-Owned Enterprises, and financial institutions.

 

7.2.3        Amended Ownership Scorecard for Large Enterprises

 

Ownership for Large Enterprises

Weighting

Indicator

Measurement Category & Criteria

Weighting

Points

Compliance

Target

25

7.2.3.1

Voting Rights

7.2.3.1.1

Exercisable Voting Rights in the Entity in the hands of Black people

4

25% +

Vote

7.2.3.1.2

Exercisable Voting Rights in the Entity in the hands of Black women

2

10%

7.2.3.2

Economic Interest

7.2.3.2.1

Economic Interest in the Entity to which Black people are entitled

4

25%

7.2.3.2.2

Economic Interest in the Entity to which Black women are entitled

2

10%

7.2.3.2.3

Economic Interest of any of the following Black natural people in the Measured Entity

7.2.3.2.3.1

7.2.3.2.3.2

7.2.3.2.3.3

7.2.3.2.3.4

7.2.3.2.3.5

Black designated groups;

Black participants in Employee Share Ownership Programmes;

Black people in Broad based Ownership Scheme;

Black participants in Co-operatives;

Farm workers

3

4%

7.2.3.2.4

New Entrants

2

2%

7.2.3.3

Realisation Points

Net Value

8

Refer to Annexure E of the Amended Codes of Good Practice

 

 

7.2.4        Amended Ownership Scorecard for Large Enterprises

 

Ownership for QSEs

Category and Ownership Indicator

Weighting

Points

Compliance

Target

 

7.2.4.1  Voting rights:

7.2.4.1.1

Exercisable Voting Rights in the Enterprise in the hands of black people

5

25% + 1 vote

7.2.4.1.2

Exercisable Voting Rights in the Enterprise in the hands of black women

2

10%

7.2.4.2  Economic Interest:

7.2.4.2.1

Economic Interest of black people in Enterprise

5

25%

7.2.4.2.2

Economic Interest of black women in Enterprise

2

10%

7.2.4.2.3

Economic Interest of New Entrants or Black Designated Groups

3

2%

 

7.2.4.3  Realisation points:

 

Net Value

8

Refer to Annex 100(E) of

Amended Codes