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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

5.7 Socio-Economic Development (SED)


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 and to establish a socio-economic environment conducive to these 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.


Due to the need to improve the living and working conditions of the farm workers in the agricultural sector, any SED initiative should be over and above legislated minimum wage accruable to the beneficiary. Proof must be submitted to Verification Agencies that in any case that the benefit that is claimed for, is separate and over and above SED initiative to the pay package, and in this regard the total points that can be scored for any SED initiative which is over and above the legislated wage accruable to the beneficiaries is 50% for both the Large Enterprises and Qualifying Small Enterprises; Le. 50% of 10 points for large enterprises and 50% of 20 points in the case of QSE's.


It should also be noted that there needs to be a contract in place between the enterprise/employer and the employees whose salary packages have been restructured for the purpose of scoring points under this category.


Farming Enterprises undertake to:-


5.7.1. 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 are conditional: Provision of good quality housing, including access to clean water, sanitation and electricity; Provision of recreational facilities as well as running costs in this regard; Provision or implementation of, health care programmes and related services (with due consideration for HIV/AIDS programmes); 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; Implementation of retirement, funeral and related schemes provided they are separate from the pay package of beneficiaries; Investment in, and/or provision of support to, farm and/or rural schools; Engagement in collective contributions to social development; 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; Maintenance of bursary schemes to enable Black People to gain access to tertiary education institutions.


5.7.2. Contribute to corporate social investment 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.


Agribusiness Enterprises undertake to:-


5.7.3.        Contribute to social development and industry specific initiatives. The following is a non-exhaustive list of examples: support for community education facilities; education programmes aimed at promoting the agricultural industry; and bursaries and scholarships to encourage learners to study agricultural sciences; contributions to community training programmes aimed at skills development for the unemployed and ABET; participation in development programmes for the youth and other designated groups; 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; promotion of job creation programmes in the agricultural and agricultural related Sectors, external to the business; support for development programmes to develop new talent for arts and culture; support community clinics and community health programmes (with due consideration for HIV/AIDS programmes); and participate in and support sports development programmes.