Industry Charters > Agri-BEE Charter

The gazetting of AgriBEE Sector Code in terms of Section 9 of the Act evidences the commitment by all stakeholders to promote and implement BEE in the agricultural sector. The AgriBEE Sector Code (Scorecard) enjoys equal status with that of any other code, including the Generic Codes of Good Practice.

Targets contained in the AgriBEE QSE 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.

A Qualifying Small Enterprise ('QSE') is an Enterprise which qualifies for BEE compliance measurement in terms of the Agricultural Qualifying Small Enterprise Scorecard by nature of having total revenue of more than R5 million (subject to adjustment) but less than R35 million.

An Exempted Micro Enterprise ('EME') is an Enterprise which qualifies for BEE compliance exemption by nature of the fact that the Enterprise has an annual turnover of less than R5 million and meets the principles of non-circumvention as defined in the Codes of Good Practice Code 000 Statement 000. EME's will enjoy a deemed BEE recognition level of either Level 3 or 4 (as defined in the Codes of Good Practice), and sufficient evidence of qualification as an Exempted Micro-enterprise is an auditor's certificate or similar certificate 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, as outlined in this Code.

Element	AgriBEE QSE Scorecard Weighting	Generic QSE Scorecard Weighting
Ownership	20 points	25 points
Management control	20 points	25 points
Employment equity	20 points	25 points
Skills Development	20 points	25 points
Preferential procurement	20 points	25 points
Enterprise development	20 points	25 points
Residual	20 points	25 points

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A Qualifying Small Enterprise must elect to be measured using, at least, five of the seven elements of the AgriBEE Scorecard according to its own choice.ln the agricultural sector, majority of the farmers fall in the category of QSE and as such, there is a need for them to select five (5) elements instead of four (4) elements prescribed in the Generic Codes of Good Practice for the purpose of fasttracking transformation in the sector.

•	Each indicator will have a weighting of 20 percent, resulting in a total of 140 available BEE points.

•	When electing to be measured using more than five of the seven elements, the BEE Status must be determined using the maximum number of BEE points available to it.

For the purpose of fast-tracking transformation (equity ownership) and incentivizing QSEs in the agricultural sector, an enterprise that gets 20 points for this element, qualifies for a multiplier of 1.25 on top of the 20 points, provided that enterprise has achieved the 25% target in full. This is also a sector endeavor to encourage broad-based empowerment, and ownership has always been a core transformation consideration of the sector.

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

Element	Weighting	Category	Indicator	Indicator Weighting Points	Target
Ownership	20%	Voting rights	Exercisable Voting Rights in the Enterprise in the hands of black people	5	25% + 1 vote
		Economic Interest	Economic interest in the Enterprise to which black people are entitled	7	25%
		Realisation points	Ownership fulfillment	1	Yes
		Realisation points	Net equity interest	7	25%
		Bonus points	Involvement in the ownership of the Enterprise of: - Black Disabled People - Black Youth - Black Women and/or - Broad-based Ownership Schemes	3	10%
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. In the interim 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.	20	30%
Land Ownership		Bonus points	Contibution to achieving in excess of 30% land transfer. Bonus point per each percentage of land transferred above 30% of total land	5	30%
Management	20%	Owner- Manager Participation	Black representation at Owner/ manager level	20	50.1%
Management	20%	Bonus Points	Black women representation at Owner/ manager level	2	25%
Employment Equity	20%		Black representation at Controller/ supervisor level as a total of all management	6	60%
			Black women representation at Controller/ supervisor level as a total of management	6	30%
			Black employees as percentage of total employees	4	70%
			Black women as percentage of total employees	4	35%
			Bonus point for meeting or exceeding the EAP targets in each category above	2
Skills Development	20%		Employee enrollment/ involvement in Recognised Training Programmes	5	30%
			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).	15	2%
			Percentage of employees participating in ABET level 3 training as a percentage of total employees	2	2%
Preferential Procurement	20%		B-BBEE procurement spend from Suppliers based on B-BBEE Procurement recognition levels as a percentage of Total Measured Procurement Spend	20	50%
Enterprise Development	20%		Average annual value of all Enterprise Development contributions and Sector Specific Programmes made by the Measured Entity as a percentage of target.	20	3% of NPAT
Socio-economic Development (SED) and Corporate Social Investment	20%	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.	20	1% of NPAT
		SED Spend and/or Land available to farm workers 1		20	10% (land for farm labourers in pro rata).
		Bonus points	Lease of 20% land or capital assets on a long term basis to black persons which meets the criteria of a qualifying transaction as outlined in paragraph 5.1.1.2.	3	Lease longer than 10 years

1 A leased contract signed between the workers and the Measured Entity must serve as a proof.

Enterprises that have fully contributed to the Ownership Element of the scorecard have an option of only contributing to the SED portion of this element which will then have a corresponding 10 weighting points.

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

Industry Charters

Agri-BEE Charter

AgriBEE QSE Scorecard