AfriBusiness is proud to announce that it has submitted commentary on the draft AgriBEE Sector Codes on behalf of our members and other parties in the agricultural industry. The draft sector codes were published on 20 November 2015 in the Government Gazette by Dr Rob Davies, the Minister of Trade and Industry.

In short, the new codes will apply more stringent rules to enterprises in the agriculture sector, making it more difficult to achieve acceptable BBBEE scores. The issue on the ownership of equity and land has once again come into play.

“AfriBusiness has raised three main concerns. First, the more stringent scorecards, which will make it harder for enterprises to reach their BBBEE-scores; second, the issue of ownership of equity and land; and third, the creation of poor investment prospects within South Africa if these rules were to be implemented. The country simply cannot afford to have more investors withdraw from the economy, especially considering the current economic struggles the country faces,” said Armand Greyling, Law and Policy Analyst for AfriBusiness.

According to Greyling, it would seem as if Government ignores the woes of the South African economy for the sake of transformation. Instead, Government should focus on creating a stable investment environment for local as well as foreign investors. The new codes will only exacerbate current economic woes.

AfriBusiness will continue to keep a watchful eye on any legislation that may have an impact on corporate South Africa, and will endeavour to submit commentary, where possible, to protect the rights of all South Africans within the corporate sphere.

Issued by AfriBusiness