1. AgriBEE: Status Quo and Way Forward
Theo de Jager
Deputy President: Agri SA
17 September 2010

2. Approaches Formal Processes State led & funded Informal Processes
Post Settlement in restitution
LARP
AgriBEE Charter & Council
Recapitalisation Program
Informal Processes
Private initiatives
Agri-Business
FNB, Halls & Sons, GWK, etc.
Commodity Org’s
NWPO, MPO, SAPPO, Maize Trust
Farmers Associations
KWANALU, Agri-Limpopo

3. Formal Process Post Settlement LARP Recapitalisation 90% failure
Community farming
Will cost more to restore than original price
No FA involvement
LARP
Limpopo, W-Cape, E-Cape, Gauteng, KZN
Recapitalisation

4. Land reform policy in SA
RDP, 1994
Reconstruction and Development Program
30% transfer of white-owned agricultural land to blacks by 2014
White Paper on Agriculture
1995
Broadening access to agriculture via land reform, with enhancement from adequate policy instruments, and supported by means of the provision of appropriate services
BATAT, 1995
Broadening Access to Agriculture Thrust
Basically a new financial assistance policy

5. Land reform policy in SA (cont)
Agricultural Policy:
Discussion Document, 1998
Supporting the emergence of a more diverse structure of production with a large increase in the number of successful smallholder farming enterprises
Strategic Plan for the South African Agriculture, Three core strategies:
Enhancing equitable access and participation in the agricultural sector
Improving global competitiveness and profitability
Ensuring sustainable resource management
GEAR, 1996
Growth Employment and Redistribution Strategy
Ambitious growth targets

6. Land reform policy in SA: Key policy initiatives, 2004-2009
Settlement and Land Acquisition Grant (SLAG = R cash grant)
Land Redistribution of Agricultural Development (LRAD = minimum grant of R20 000, R5000 own contribution)
Comprehensive Agricultural Support Program (CASP – support with on and off farm infrastructure – serious capacity constraints)
Micro Agricultural Financial Institution of South Africa (MAFISA – Maximum loans of R – Forensic investigation)
Land and Agrarian Reform Program (LARP, 2008) (A new Framework for delivery and collaboration on land reform and agricultural support. It created a delivery paradigm for agricultural and other support services – “One-Stop Shop” service centres

7. Charter Process Codes Process Consultation 31 March 2006 6 Dec 2008
Sector
Participants
Other
Stakeholders
(including relevant
Government
Department)
Steering
Committee
Minister
Establish Charter
Council
Meet Para 16
(Statement 10)
Qualification
Criteria
Public
Proclamation
of Charter
Process
Consultation
Meet BEE
(Act (s12)
Requirement
Gazette as
Transformation
Charter
Apply Generic
Scorecard
Dti
Application
for Gazette as
Sector Codes
Independent
Third-Party
Review
Meet
Statement 10
Mandate
Negotiation
and
Drafting
(Sector
Specific
Scorecards)
Draft
Technical
Does not meet Charter Qualification
Meet Requirements
FLOW CHART PROCESS FOR GAZETTING SECTOR CHARTERS
Codes
Process
Negotiation,
Drafting,
Publication
31 March 2006
6 Dec 2008

8. Reasons for slow pace Delays in publishing and appointing
Revisiting of agreements
Radical demands from government departments
Conflict on recordkeeping, modus operandi, etc.
No AgriBEE on Gazetted farms
Incentives for compliance?
Consider to stick to generic codes

9. Private Initiatives Farmer Development Conference
Feb. 2010, Somerset West
Commodity driven
73 Projects
R200 million over 5 years
Equity Schemes (WC, NC, EC)
Agri-Businesses with local farmers
Training institutions

10. Current Contribution
Farmer Development Contribution: R200 million over 5 years
Tenure: 2,8 mil cared for by farmers
40% less on land values
Schools, crèches, graveyards, sports fields, accommodation, food, health care, training, transport, skills development

11. Main Challenges
Govt and Organised Agriculture working in silo’s; no cooperation, no trust
Tendency not to restructure agriculture but to polarise it
Corruption, nepotism, maladministration
High expectations versus non-delivery
Low profitability and high risk

12. Solutions Redesign Scientific, research based program Needs driven
Real reasons for high costs
Data bases for land reform and BEE
Appoint capable drivers
Localise reform – inclusive local forums
Create SPV for development financing

13. Thank you