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Date : 26/07/2004
Source: Department of Agriculture
Title: T Didiza: Launch of AgriBEE framework document


ADDRESS BY MINISTER THOKO DIDIZA MP, AT THE LAUNCH OF THE AGRIBEE FRAMEWORK DOCUMENT, REGENT HOTEL, East London, Eastern Cape, 26 July 2004

Madam Chairperson
Minister of Minerals and Energy
Deputy Minister of Agriculture and Land Affairs
Deputy Minister of Trade and Industry
MECs for Agriculture Present
Chairperson of the Portfolio Committee on Agriculture and Land Affairs
Members from the Different Stakeholders involved in the Agricultural Sector Present
Ladies and Gentlemen

On Saturday the 23rd, one of the higher institutions in this province, the Medical University of Umtata, commonly known as Unitra, which will soon become Walter Sisulu University as from January 2005 was blessed by the visit of Ngugi wa Tiongo, one of the most renowned African writers who wrote the book titled "Things fall apart". This book may have some lessons for all of us which we can use as we chart our transformation agenda as a Country. In my mind I am convinced that part of the reason we are here as the Agricultural stakeholders is because indeed we do not want to look back in years and say, things fell apart when we could have had an opportunity to avoid such a phenomenon.

It is with great pleasure therefore that we meet here in East London today to launch an AGRIBEE framework document. This is one of our Provinces whose economy and its potential for growth will be enhanced by the changes that we can make in the Agricultural sector. As indicated by our empowerment study as well as our own experience, it is clear that there has been some empowerment initiatives that have been initiated either by government through its own Land Reform Programmes such as share ownership schemes; Restitution of Land Rights and transfer of the state agricultural land to those who were historically disadvantaged. Some agricultural industries have been partners in these programmes.

Also independently, we have seen some industry led empowerment processes that have resulted in the dilution of the concentration assets that were solely in the hands of those who had such opportunities of meaningful economic participation in the past and thereby allowing equity ownership by those who were in the margins of our society before.

These initiatives are an indication that even in this sector it is possible to change our country's economic landscape and become a sector that is inclusive of all its members. This framework document therefore should be seen as a guide to help us work together in finding solutions that will reverse the inequities that are still prevalent in our society, particularly in the economic sphere.

The document is based on the work that has been undertaken through discussions that have been held over a year and a half by a number of people and groupings in the agricultural sector. It has been seen as a way of actualising the goals of the Agricultural Sector Plan of 2001.

We also must acknowledge that the document itself seeks to respond to the concerns that have been raised by many individual farmers and agricultural industries who have been calling for guidance on how to attract participation of the historically disadvantaged individuals, workers and communities in their own enterprises. In their wisdom they want to participate in the creation of an inclusive sector and thereby helping our country to move forward in transforming our economy.

We are here therefore in essence to build on the commitments we made as a sector through the Agricultural Sector Plan where we agreed on a common vision for achieving a United and Prosperous Agricultural Sector in South Africa. In order for us to achieve this vision, we must acknowledged the challenges of inequities that still persist in the Agricultural sector regardless of the strides that have been made through some of the initiatives. We therefore agree that transformation is critical, if we are to realise our vision.

One of the important pillars of the sector plan that we agreed would assist us in dealing with these inequities was that of broadening participation by those previously. Our initial approach was therefore to have discussions with various agribusinesses through their commodity groupings on how best we can achieve this objective.

These industry strategies have focussed on broadening participation as well as the growth strategy for the future. It was clear that this approach enabled us to look in detail at possibilities that exist in each sub sector of this industry, however the danger was that sooner or later each strategy would go its own way without having an overarching framework that guides the industry as a whole. Another challenge was that of not impacting on individual agricultural farm enterprises, farm businesses and agricultural enterprises that may not necessarily belong to a commodity grouping.

The pronouncement that was made by the President during his State of the Nation Address on the launching of this document should be seen as a way of ensuring that indeed we actualise what we had said when we presented the Agricultural Sector Plan to him in November 2001.

I believe this framework will also assist us in dealing with complex policy matters that are unique to Agriculture as compared to other economic sectors that have gone through the process of developing charters or strategies for transformation. Ours will have to deal with the role of Land Reform in the context of developing an AGRIBEE. These are matters, in my view, we have to confront as the agricultural. The Reconstruction and Development Programme commit all of us towards the realisation of a thirty per cent target of ownership of Agricultural Land by historically disadvantaged individuals.

In order for us to achieve this target we will have to commit ourselves in finding practical solutions. As we do so, we need to appreciate the cost that we will pay as a country, if we do not meet it in the shortest possible time.

Participation in agriculture therefore has other areas of access such lease and rental opportunities that are made available to those entrepreneurs who would want to use it. This is a phenomenon that is already prevalent amongst established commercial sector, but as yet not widely understood nor accessible to those historically disadvantaged individuals.

Madam Chairperson, this framework is intended to assist all existing and potential future stakeholders and partners in the agricultural sector to engage in a meaningful dialogue and course of action that can, in the shortest time possible, erase the negative effects of our history of a dual sector and achieve outputs that can contribute to the higher societal ideal of a better life for all.

It defines the building blocks for elimination of skewed participation and inequality in the agricultural sector as a result and consequence of past racially biased policies and programme for the main components of successful agriculture. The AGRIBEE frame is complementary to the other key strategic initiative of government to bring about growth, equity and employment and to ensure the sustainable management and use of the natural resources.

OBJECTIVES:

The objectives of AGRIBEE therefore are to eliminate racial discrimination in the agricultural sector through implementing initiatives that mainstream Black South Africans in all levels of agricultural activity and enterprises along the entire agricultural value chain. Some of the specific objectives include:

* Promoting equitable access and participation of Historically Disadvantaged Individuals in the entire value chain;
* Deracialising land and enterprise ownership, control, skilled occupations and management of existing and new agricultural enterprises;
* Facilitating structural changes in agricultural support systems and
* Development initiatives to assist Black South Africans in owning, establishing, participating in and running agricultural enterprises

Madam chairperson, guided by these objectives, I have therefore, after considering the initial inputs as reflected in the draft document, proposed targets that I am convinced we should strive for. As you will see in the document, some of these are put under brackets given that we still have some months to discuss, negotiate and reach consensus on what is acceptable.

It is my view that with regard to access to land we need to affirm the target as set in the RDP of having thirty percent of agricultural land to historically disadvantaged people by 2014, as articulated by government.

It is also necessary that we further look at possibility of creating opportunities for leasehold above this 30 percent, which can be accessed by black people for agricultural use.

In this document we further propose therefore that the sector makes available additional twenty percent of agricultural land to the historically disadvantaged individuals and communities through leasehold. We also propose that an amount of land be made available for use by farm workers in order to address issues of poverty alleviation as well as creating opportunities for SMEE development within this sector .As part of the realisation of these commitments government will make available land that has reverted to it through foreclosure.

In the area of Human Resource development, certain targets are also proposed which will enable us to address the challenge of illiteracy that impact negatively in the growth of the industry including human development in general. It is our view that we commit to the improvement of literacy and numeracy skills for our workers in farms and agribusinesses. It is also critical that we look at the long-term human resource needs of the sector and as different partners commit to meeting certain targets that can help us achieve our broad transformation objectives.

On Employment Equity, the framework looks at a number of issues and proposes particular targets that should be met, such as the participation of women, men and youth in junior, middle and senior management of agricultural enterprises.

Given the importance of agricultural support services, particularly finance, we propose engagement with the financial institutions on the commitments that were made in the financial sector charter.

It was also necessary to look at the roll out of the Comprehensive Agricultural Support Programme (CASP) of government in order to address certain challenges that the emerging farmers still face.

Financing CASP is of utmost importance and will also enhance the possibility of supporting new entrants within the sector as a result of our commitment, which will be reflected on the targets that we would have set for ourselves.

We have to acknowledge that all of us as different stakeholders put in place instruments around which we can report, monitor and continuously evaluate the progress we would have made. As you may recall, the President in his State of The Nation Address also pronounced that government will put in place, as a matter of urgency, the Black Economic Advisory Council visualised in the black empowerment legislation. He went on to say that one of its first tasks would be to consider the steps we need to take in achieving the speedy and effective implementation of this empowerment legislation.

This framework document, which are launching today is our contribution towards the realisation of the Broad Based Black Empowerment legislation. In the month of August we will undertake provincial launches in collaboration with the provincial MECs in order to ensure that as we start this discussion equitably and guarantee broad based participation.

I will also appoint a steering committee which adequately reflects the sector and government who will be tasked with the onerous job of undertaking consultations, information sharing in order to deepen clarification particularly among disempowered groups. By November I would want the steering committee to provide me with a final report on the framework consultative process in order to submit this to my colleagues.

Over the next few months we expect this document to promote engagement between the Department of Agriculture and the various groups, black and white who are involved or who wish to become involved in agriculture on the commitments that have been included, in order to ensure that our transformation agenda is unambiguous, comprehensive and reflective of the complexity of the agricultural sector. For its part the Department of Agriculture will establish appropriate capacity to engage, inform and ultimately oversee the implementation of AGRIBEE. In November this year, I would like to review the comments and inputs we have received and make necessary adjustments to this document in order to take the document to Cabinet for adoption in line with Section 12 of the Broad Based Black Economic Empowerment Act of 2003.

Ladies and gentlemen let me take this opportunity to thank the departmental team, the reference groups and all those individuals who have worked tirelessly to ensure we reach this stage of the process of implementing black economic empowerment in the sector.

I thank you.

Issued by: Department of Agriculture
26 July 2004
Source: Department of Agriculture (http://www.nda.agric.za)

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