Pretoria - Members of the public and interested parties have until January 20 next year to comment on the draft AgriBEE Sector Code, the trade and industry department (DTI) said on Sunday.
Trade and Industry Minister Rob Davies gazetted the draft code in terms of section 9(5) of the Broad-Based Black Economic Empowerment Amendment Act, the DTI said in a statement.
“This draft amended sector code is the outcome of the deliberations of the AgriBEE Charter Council, following the gazetting of the AgriBEE Sector Code on December 28, 2012 and the establishment of the AgriBEE Sector Charter Council in December 2008.”
Davies said the code was an important sector code because it would guide transformation in agriculture.
“Agriculture is the bedrock of our economy with linkages to all other sectors of our economy,” he said.
The scope of application of the draft code included the primary production of agricultural products; provision of inputs and services to enterprises engaged in the production of agricultural products, beneficiation of agricultural products whether of a primary or semi-beneficiated form; and storage, distribution, and/or trading, and allied activities related to non-beneficiated agricultural products.
Davies said the draft code promoted supplier and enterprise development.
“One of the key highlights of the draft AgriBEE Sector Code is an increase of the target for supplier development to three percent of net profit after tax (NPAT), which is higher than two percent of NPAT of the codes, as well as an increase to 1.5 percent of NPAT for enterprise development, which is higher than the one percent NPAT of the generic codes.
The aim is to create a pipeline of black suppliers and black industrialists within the value chain of the South African agricultural industry,” he said.
In addition to strengthening the drive towards creating black suppliers and black industrialists, enhanced recognition was given to initiatives that resulted in greenfield ventures, job creation and beneficiation of primary products, support for land reform projects, and support for localisation of goods and services not currently being produced in South Africa.
AFRICAN NEWS AGENCY