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THE agricultural sector's BEE Charter which aims to reduce the inequalities that exist in the sector and promote broad-based Black Economic Empowerment in a sustainable manner, has been praised by Frans van Wyk, PricewaterhouseCoopers' Agri-BEE specialist partner.
Ownership of the land is not the only focus area of the Agri-BEE Charter and Government has put forward policies that stress that transformation of the Agri-Sector must occur in a sustainable manner, he told an audience of farmers and other stakeholders in the Agri-Sector in Stellenbosch recently.
Van Wyk pointed out that the draft Charter had a strong focus on the empowerment of the broader population associated with skills development.
He said that there is no set formula for BEE in the Agri-Sector and each project would have its own unique characteristics and it was therefore important that sufficient planning time be allocated to ensuring that the project was sustainable.
He added that sustainability would not only be measured in terms of monetary success, but also in terms of the speed at which skills were transferred to previously disadvantaged individuals. "The speed at which transformation occurs in the Agri-Sector won't be politically determined but will, rather, be impacted by economic factors.
"The framework for Agri-BEE is one of six frameworks in the SA economy and it would therefore need to be integrated with the others. In effect, the success of all the charters are dependent to a certain extent on each other."
Commending the Charter's holistic approach, Van Wyk commented that it impacts on all stakeholders in the primary agricultural sector, as well as those in the value chain.
Noting the differences in the risk profile of the Agri-Sector relative to the Corporate Sector, access to capital to fund BEE deals will be one of the first hurdles to overcome. Van Wyk said that continued access to capital will also determine the sustainability of such projects.
The identification of partners and management potential concerned empowering people within the industry and those who have historically not been able to enter the industry.
"The currently conceptualised Charter framework covers broad economic empowerment and not the enrichment of individuals. In this context, the ability to identify management ability among current employees early in the process and to develop the relevant skills will be critical in ensuring sustainable BEE projects."
Van Wyk recommended that organisations and individuals operating in the agricultural sector sought professional help from advisors who understand the industry, who are also locally based, and have the necessary tax and BEE expertise.
These advisors would be best placed to partner with to develop a strategy in line with the charter. |