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

Industry Charters

Agri-BEE Charter

5. Elements of Empowerment

5.1 Ownership

5.1.2 Agricultural Land Ownership It is important to deal efficiently with land reform to ensure rural stability and market certainty. The process of economic empowerment in South African agriculture starts with improved access to land for Black People and the vesting of secure tenure rights with Black People in areas where these do not exist. The target set by government for Land Reform is 30% of commercial agricultural land by 2014. This is also the RDP target set in 1994. It is understood that government's delivery on land transfer targets is fundamental to the achievement of other objectives in this draft Sector Code. Farming enterprises are encouraged to participate directly in this initiative by complying with the 'Land Ownership' element of the Scorecard. Farming enterprises can score either on the Ownership Indicator, Land Ownership Indicator, or both, with the total score limited to the weighting of 20% (or 20% in the case of QSEs). Where farming enterprises choose to score on both indicators, land should not be double-counted under both elements. Furthermore, the AgriBEE Scorecard incentivises contributions to achieving in excess of the national objective of minimum 30% land transferred to Black People. To this end, farming Enterprises which transfer more than 30% of total land can progressively score up to a maximum of 5 bonus points, in proportion to the percentage of total land transferred. (Land transferred as a consequence of expropriation by government will not be eligible for bonus points).


5.1 .2.3. Productive and sustainable agricultural use of land must be ensured in accordance with the relevant agricultural policies and Acts. Studies should be done to provide a substantive scientific basis for the development of land (also refer to the Sustainable Resource Management Act).


5.1 .2.4. Given the need to transfer land in support of national objectives, the nature of farming and the need to support Black People in establishing viable commercial farming enterprises on the land that they receive, Measured Enterprises are encouraged to sell land in accordance with the principles and criteria attached to Qualifying Transactions outlined in paragraphs 5.1 .1.1.


5.1 .2.5. Measured Enterprises will be recognised for the sale of land to Black People in accordance with Statement 102 of the Codes of Good Practice.


Farming Enterprises undertake to: -


5.1 .2.6. Sell agricultural land to Black People and farm workers in market based transactions on a voluntary basis in Qualifying Transactions (using the ownership element of the Scorecard as a vehicle to achieve this). Lease agricultural land to Black persons in Qualifying Transactions (using the enterprise development element of the Scorecard as a vehicle to achieve this).


5.1 .2.8. Make available agricultural land to farm workers (using the corporate social investment element of the Scorecard as a vehicle to achieve this).


Government undertakes to: - Contribute to increasing access and acquisition of agricultural land by Black People, through its existing programmes; Proactively acquire suitable agricultural land that comes onto the market for land redistribution; Use above mentioned land ( and agricultural land that reverts to the state through foreclosure of indebted farmers, for redistribution, including through long lease arrangements (e.g. 99 year lease); Promote sustainable management and use of natural resources; Finalise the land restitution process;


5.1 .2.14. Encourage the development of a land lease and land rental market; Promote the consolidation and tenure on traditional community land in terms of relevant acts that support communal land; and Secure the ownership, access and tenure rights of Black Designated Groups through the registration of old order rights or new order rights into freehold ownership.