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Do we know if Mzansi’s AgriBEE charter is working?

South Africa's AgriBEE Sector Code was gazetted in December 2012. Almost a full decade later many people are unconvinced that the charter is fulfilling its mandate

by Zolani Sinxo
26th Mar 2022
in Editors Choice, News
Reading Time: 4 mins read
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A growing number of black farmers are having success in the agricultural sector but many voices say transformation has a long way to go. Photo: Supplied/Food For Mzansi

A growing number of black farmers are having success in the agricultural sector but many voices say transformation has a long way to go. Photo: Supplied/Food For Mzansi

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South Africa’s AgriBEE charter has come under much public scrutiny since its launch almost a decade ago. Some say the country has made good progress in integrating new farmers into mainstream agriculture, while others say the charter is just a document that never left the shelf. A third, surprising view as that we don’t really know exactly.

Following the creation of the AgriBEE Charter Council in December 2008, the AgriBEE Sector Code was gazetted in December 2012. This charter was meant to drive the inclusion of black South Africans in all levels of the sector, but many experts believe it is not achieving its mandate.

Agricultural economist Thabile Nkunjana from the National Agricultural Marketing Council. Photo: Supplied: Food For Mzansi
Agricultural economist Thabile Nkunjana from the National Agricultural Marketing Council. Photo: Supplied/Food For Mzansi

Thabile Nkunjana, an agricultural economist at the National Agricultural Marketing Council, says the sector code has been heavily criticised since its establishment under the Broad-Based Black Economic Empowerment Act (Act 53 of 2003, as amended by B-BBEE Act 46 of 2013). “The scrutiny intensified as public impatience mounted, a problem that has persisted [to this day].”

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In principle, Nkunjana explains, the AgriBEE programme envisioned to change the lopsided nature of the agricultural sector by getting more previously disadvantaged individuals to participate in the broader economy. But despite opposing and supporting arguments around the programme and the act regulating it, the one area of consensus is that a more efficient approach is needed to monitor and analyse the act’s impact on transforming the sector.

“To this day there is not enough of that [monitoring and analysis]. As a result, it may appear as if the objectives of the act have not been met, which might be a blanket statement that doesn’t do the act justice.”

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‘AgriBEE is working’

In her recent address at a women farmers’ dialogue in Limpopo, South Africa’s minister in the presidency for women, youth and persons with disabilities, Maite Nkoana-Mashabane, said that the AgriBEE charter had driven good progress in integrating new farmers into mainstream agriculture.

Limpopo, minister in the Presidency for women, youth and persons with disabilities, Maite Nkoana-Mashabane. Photo: Supplied/Food For Mzansi
Limpopo, minister in the Presidency for women, youth and persons with disabilities, Maite Nkoana-Mashabane. Photo: Supplied/Food For Mzansi

According to her, evaluation and monitoring systems for AgriBEE activities are set up and used at a national, provincial, regional and local level.

“Implementation of AgriBEE is based on the commodity value chain approach. This approach is integral to creating linkages, partnerships and networks for balanced, mutually benefiting results for all concerned.” She further said that the value chain or linkage approach is important in ensuring competitiveness, sustainability and expansion for new businesses in the sector.

Questions remain, however, around traditional value chains’ openness to transformation and the pace of change.

Limitations in law

Ndivhuho Phungo, deputy chairperson of South Africa’s AgriBEE Council, says that there are limitations in B-BBEE law.

As participation is not compulsory for all businesses according to the law, and there are no legal enforcement measures, success rides on voluntary compliance and only those who need BEE points might buy into the programme.

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“The measured entities choose their own beneficiaries. Subsequently only individuals with some influence in society who, in most cases, are well off already and do not derive their livelihood from any agricultural activity, get the exposure – at the expense of struggling agricultural entrepreneurs.”  

Phungo says that, on the flipside, some empowerment initiatives that businesses practise with their beneficiaries are not recognisable by the code. The nett effect is that the “elements of empowerment” in their current form limit measuring entities that may desire to comply.

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Zolani Sinxo

Zolani Sinxo

Zolani is an award-winning journalist and holds a National Diploma and a B Tech in journalism, he is a journalist at heart with a particular interest in developmental journalism, politics, African development stories, environment, and global and national current affairs. He started to develop an interest in writing and storytelling at a young age after he co-authored a folk tales children’s book in 2005 titled Our Stories, Amabali Ethu. After graduating, Zolani worked at various government institutions where he worked in the marketing and communication departments specialising in media liaison and editorial management. His passion for developmental journalism saw him being a co-founder of a community newspaper in Stellenbosch, Umlambo News. He has also worked for the Group Editors as a journalist for the George Herald and is also the editor of Idinga community newspaper. Zolani loves books, especially on Africa’s politics, history, stories, and biographies of African leaders who have made a significate contribution to the continent’s socio-economic wellbeing.

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