Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Amended AgriBEE Sector Code (20177. Elements of Empowerment7.6 Socio-Economic Development (SED) |
7.6.1 Amended Socio-Economic Development for Large Enterprises scorecard
Management for Large Enterprises |
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Weighting |
Criteria |
Weighting Points |
Compliance Target |
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15 |
7.6.1.1 |
Annual value of all Socio-Economic Development Contributions by the Measured Entity as a percentage of the target |
15 |
1.5% of NPAT |
7.6.2 Amended Socio-Economic Development Specialised Large Enterprises scorecard
Socio-Economic Development for Large Enterprises |
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Criteria |
Weighting Points |
Compliance Target |
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7.6.2.1
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Annual value of all Socio-Economic Development Contributions by the Measured Entity as a percentage of the target. |
5 |
1% of Net Profit After Tax (NPAT) or 0,1% Annual Revenue/Allocated budget/Gross receipts/Discretional spend |
7.6.3 Amended Socio-Economic Development scorecard for QSEs
Socio-Economic Development for QSEs |
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Weighting |
Criteria |
Weighting Points |
Compliance Target |
|
15 |
7.6.3.1 |
Annual value of all Socio-Economic Development Contributions by the Measured Entity as a percentage of the target |
15 |
1.5% of NPAT |
7.6.4 Amended Socio-Economic Development Specialised scorecard for QSEs
The following table represents the indicators and methods for calculating a score under this statement:
Socio-Economic Development for Large Enterprises
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Criteria |
Weighting Points |
Compliance Target |
|
7.6.4.1 |
Annual value of all Socio-Economic Development Contributions and Qualifying Socio- Economic Development Contributions made by the Measured Entity as a percentage of the target |
15 |
1% of Net Profit After Tax (NPAT) or 0,1% Annual Revenue/Allocated budget/Gross receipts/Discretional spend |
| 7.6.5 | Socio-economic development refers to contributions that are related to the agricultural industry and contributions actually initiated and implemented in favour of Black People with the specific objective of facilitating access to the economy. These initiatives should be motivated by the objective of providing Black People with social and economic opportunities. Priority should therefore be given to implementing income generating socio-economic initiatives that create sustainable livelihood for beneficiaries. In this regard a Measured Entity must consult and provide proof that it consulted with the beneficiaries to establish their needs. |
| 7.6.6 | Where the SED is directed at farm workers it should not be linked to the wage package. |
| 7.6.7 | Due to its geographic location, the agricultural sector is specifically rewarded for its contribution in the rural areas as it is best located to make a significant contribution to real transformation. |
| 7.6.8 | All other key principles of Statement 500 of the Amended Generic Codes not addressed in this statement are applicable. |
7.6.9 Farming Enterprises undertake to:
Contribute to socio-economic development initiatives in respect of rural community members, workers and their families and seasonal workers, in particular. The following is a non-exhaustive list of examples, but all such contributions
| (a) | Provision of good quality housing, including access to clean water, sanitation and electricity; |
| (b) | Provision of recreational facilities as well as running costs in this regard; |
| (c) | Provision or implementation of, health care programmes and related services (with due consideration for HIV/AIDS programmes); |
| (d) | Meeting the transport requirements of workers and their dependents, such as transport to clinics and hospitals, transportation of workers' products to the market, etc. in line with transport legislation and regulations; |
| (e) | from the wage package of beneficiaries; |
| (f) | Investment in, and/or the provision of support to farm and/or rural schools; |
| (g) | Engagement in collective contributions to social development; |
| (h) | Provision of ABET to seasonal workers, rural community members and family of staff members (whether casual or permanent) to increase literacy levels amongst rural South Africans; |
| (i) | Maintenance of bursary schemes to enable Black People to gain access to tertiary education institutions; and |
| (j) | Contribute to corporate socio-economic initiatives and/or land available to farm workers. In such cases, the Measured Enterprise will be awarded points in proportion to the target achieved for their contributions. The target which flows from the 2012 AgriBEE Sector Code is 10% of the total agricultural land owned by the measured entity for the period under measurement. The measured entity could earn the full points under SED element, in case where 10% of agricultural land was made available for farm workers. A formal lease agreement must be in place between lessor (farmer) and the lessee (farm workers) without any restriction of trade to the lessee. |
7.6.10 Agribusiness Enterprises undertake to:
| (a) | Contribute to social development and industry specific initiatives. The following is a non-exhaustive list of examples: |
| I. | support for community education facilities; education programmes aimed at promoting the agricultural industry; and bursaries and scholarships to encourage learners to study agricultural sciences; |
| II. | contributions to community training programmes aimed at skills development for the unemployed and ABET; |
| III. | participation in development programmes for the youth and other designated groups; |
| IV. | support for programmes in conservation projects; community clean-up programmes and preservation of the natural environment that have direct and tangible benefits to the beneficiaries of B-BBEE; |
| V. | promotion of job creation programmes in the agricultural and agricultural related Sectors, external to the business; |
| VI. | support for development programmes to develop new talent for arts and culture; |
| VII. | support community clinics and community health programmes (with due consideration for HIV/AIDS programmes); and |
| VIII. | participate in and support sports development programmes. |
7.6.11 Government undertakings:
| (a) | Support initiatives of socio-economic development. For example, food security programmes/projects. |