Broad Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersAgri-BEE Charter5. Elements of Empowerment5.6. Enterprise Development |
Enterprise development refers to the establishment, support and integration of Black Entrepreneurs in mainstream business processes. Support services such as access to finance, infrastructure, information and knowledge systems, are core pillars of sustainable empowerment initiatives.
Agri-Industry undertakes to:-
| 5.6.1. | Strengthen and accelerate the development of the operational and financial capacity of Black entrepreneurs; |
| 5.6.2. | Provide mentoring, access to inputs, credit, infrastructure, markets, technology and extension services where applicable. Mentoring, as part of the enterprise development element, refers to the provision of technical and/ or general business assistance and support to Black emerging farmers, land reform beneficiaries and Black entrepreneurs. |
| 5.6.3. | Support land reform beneficiaries and Black Persons to create sustainable businesses through the transfer of specialised skills in mentorship programmes. Such support (as well as the types of support described in paragraph 5.6.2 above) will be eligible for points under the enterprise development element provided it is quantified to a Rand value in terms of the opportunity cost of time spent on mentoring and/or other enterprise development endeavours. Support to land reform beneficiaries will enjoy enhanced recognition at a multiple of 1.3 of the Rand value of the actual contribution. Enterprises should engage with the relevant SETA for information on such learning interventions; |
| 5.6.4. | Commit cumulative enterprise development contributions which assist and accelerate the development of black entrepreneurs, as a percentage of cumulative net profit after tax measured from the Inception Date to the date of measurement as a criterion for measurement; |
| 5.6.5. | Lease agricultural land to Black Entrepreneurs which meets the criteria for qualifying transactions in terms of paragraph 5.1 .1.2. |
| 5.6.6. | Enhanced Recognition will be enjoyed for certain types of enterprise development initiatives, at a multiple of the Rand value of the actual contribution. These initiatives and their corresponding multipliers are listed below: |
Enterprise Development Initiative |
Multiple |
Initiatives which directly contribute towards the creation of employment opportunities in rural communities and, in particular, in any geographic areas identified in government's integrated sustainable rural development and urban renewal programmes (See conditions below) |
1.5 |
Initiatives which assist and accelerate the development of Black Owned EME's |
1.25 |
Initiatives which assist and accelerate the development of beneficiary entities which produce or sell goods and/ or services not previously produced or manufactured in South Africa |
1.5 |
Contributions in respect of warehousing funds (provided these funds do not own an equity interest in the Measured Enterprise) |
1.25 |
Support to Land Reform beneficiaries in terms of mentoring or extension services, capital provision, input supply and market access opportunities, access to technoloqv and infrastructure |
1.5 |
For the purpose of verification, new Enterprise Development Initiatives or projects are defined as green field projects that include, but are not limited to, those that support the Industrial Policy Action Plan. Points will be scored for permanent employees based on the following sliding scale: Year 1: 100% points; Year 2: 70% points and Year 3: 30% points. Additionally, should there be a percentage decrease in employment, there would be a pro rata percentage decrease in percentage points scored.
Government undertakes to:-
| 5.6.7. | Ensure the creation of an enabling environment to support agriculture; |
| 5.6.8. | Continue with, and further develop, the implementation of the Comprehensive Agricultural Support Programme ('CASP') and other government programmes; |
| 5.6.9. | Implement MAFISA (Micro-Agricultural Financial Institutions of South Africa) and other government financing facilities to further enterprise development; |
| 5.6.10. | Establish Public-Private Partnerships to improve service delivery; and |
| 5.6.11. | Activate Land Bank funding opportunities and financial products for black farmers. |