Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersForest Sector Charter13. Enterprise Development13.2 Additional Instruments13.2.1 Access to funds and financial services for emerging black entrepreneurs |
New afforestation and forest enterprise development requires capital investment and access to financial services. To this end:
Industry undertakes to:
| (a) | Support the development and implementation of a diversity of enterprise ownership and financing models. |
| (b) | Through its representative associations, negotiate framework agreements with banks and other private sector funding agencies that meet the particular funding requirements of the sector. Government will use its influence to assist the industry in this regard. |
| (c) | Through its representative associations, promote the development of accessible and cost-effective fire insurance schemes for emerging growers. |
Government, through DWAF, undertakes to:
| (d) | Initiate a process, with timeframes, for negotiating with the Department of Land Affairs (DLA), Department of Agriculture (DoA), Land Bank, Industrial Development Corporation (IDC) and other public funding and donor institutions the establishment of framework agreements to access funding facilities available within these institutions. |
| (e) | Implement, after consultation with Treasury, the establishment of a Forest Enterprise Development Fund that provides for: |
| a. | A Forestry Grant aimed at increasing the tempo of forest enterprise development, particularly given the long timeframes involved in growing trees; and |
| b. | Seed funding for the development of fire insurance schemes for emerging growers, where the ownership of such schemes vest with the participants. |
DWAF will also facilitate framework agreements with existing enterprise development agencies for the implementation of such a fund.
These measures will be operational within one year of the signing of the Charter.