What’s New?  

The first Transformation Symposium of its kind took place at Ilanga Estate in Bloemfontein on 15 September 2009. The symposium was attended by about 200 people including farmers, our students, investors, members of the media and other interested parties. Apart from meaningful presentations by government and AgriBEE technical experts, the symposium delivered inspiring case studies by farmers themselves who have first hand experience of successful transformation. It also gave delegates the opportunity to meet other relevant role players and to share ideas and establish valuable contacts.

This well organised and orderly symposium was co-hosted by Diale Mokgojwa (Potatoes South Africa) and Dr Jack Armour (Free State Agriculture). The audience was welcomed by Ms Nonie Mokose, Chairperson of Potatoes South Africa’s Transformation Committee and a potato producer herself, who outlined the purpose of the day.


Here is a summary of speakers:

1) Dr Moorosi (Head of the Free State Department of Agriculture) 

Dr Moorosi acted on behalf of the MEC for Agriculture in the Free State, Mrs Mamiki Qabathe, and delivered a positive and inspirational message to all who are involved in farming and AgriBEE.

2) Mr Patrick Nemabubuni (BEE policy unit Agriculture, Forestry and Fisheries) 

Mr Nemabubuni sketched the background contributing to the current BEE situation in the country and reminded symposium delegates about the limiting legislation that hampered black citizens in the past. He stressed the importance of necessary monetary funding to enable previously disadvantaged people to become empowered. He said that  it is also of vital importance that aspiring farmers should be taught the right skills to ensure successful transformation.

3) Dr T.J Masiteng (Free State Department of Agriculture) 

Dr Masiteng accentuated the importance of the involvement of value chain suppliers in transformation and AgriBEE. He mentioned that the present focus for the Free State Department of Agriculture is in the Xhariep area especially on the development of irrigation schemes. His key message was taken from the Land and Agrarian Reform Programme (LARP) policy document which has identified five important pillars.  These are land reform, increasing black entrepreneurs by 10%, universal access to support, andincreasing agricultural production and trade by 10-15 %. Dr Masiteng indicated that these initiatives will be accomplished in cooperation with private sector, DTI, ARC and other departments. 

4) Dr John Purchase (CEO Agricultural Business Chamber)

Dr Purchase explained the BEE scorecard with regards to its background, the codes of good practice and the obstacles to implementation. The Broad Based black Economic Empowerment Act 53 of 2003 created a framework which made provision for sector Charters (AgriBEE Charter of 2008) indicating intent as well as sector codes which will be binding on the sector. According to Dr Purchase, there are three major hampering factors from the perspective of a farming enterprise in the implementation of AgriBEE i.e. lack of knowledge which brings uncertainty, cost of implementing and the fact that it should make business sense.

5) Mr Frans van Wyk (PriceWaterhouseCoopers) 

Mr van Wyk said that the main purpose of BEE is to “empower black South Africans to be part of the economy”. He also mentioned in passing that water rights are beginning to become a serious issue because water is a “threatened” resource. He mentioned that farmers basically have three choices when it comes to enterprise development, i.e. sell the land to a new non-related entity; sell the land and establish a joint operation or sell equity in their own enterprise. Van Wyk said that “success is dependent on the physical, economic and socio-political climate.” He named four key success factors namely planning, communication, documentation and project management.

6) Mrs Joy van Biljon (Koue Bokkelveld Training Centre) 

Ms van Biljon highlighted the impact of skills development on the community of the Koue Bokkeveld and how the model worked. 73 farms in the area are working together on the skills development programme. The training centre had 9 993 students undergoing varied training in 2008. She mentioned some factors which may be helpful in making initiatives successful. These include: champions, a jockey / jockeys, an enabling environment, balance between development and training, money, a network, outstanding communication, abundance mentality and holistic understanding, ability to live with grey, unwavering belief in the potential of people. 


6) Dr Anthony Bouwer (NDA) 

Dr Bouwer said that in order to “fulfil its purpose of eradicating poverty; the National Development Agency (NDA) has to assist in creating a new future”. The NDA’s vision is to develop a society that is free from poverty and their mission is to contribute to poverty eradication and the elimination of its causes. He accentuated that the National Development Agency is mandated to: grant funds to Civil Society Organisations; strengthen the institutional capacity of Civil Society Organisations; promote consultation, dialogue and sharing of developmental experiences; inform and influence government developmental policies; collaborate with stakeholders to develop strategies for poverty eradication.

Mr Solly Ratjomane, who recently won the Toyota New Harvest Farmer of the Year 2009 Award, told his own story. Mr Ratjomane not only caused everyone present to smile and laugh with his sense of humour but also impressed with his perseverance. He told how he began to farm in the 80s and approached a neighbour, Wouter van Amstel, for assistance. In 1987 he harvested his first potatoes. He suffered many setbacks including floods and a poor crop. Today he can, however, say with pride that he has 120 hectares under irrigation and is the owner of two potato washers and approximately 13 tractors. Mr Ratjomane concluded by saying that farmers should help one another – especially the experts the non-experts – and that fathers should share their wisdom and knowledge with their sons. Mr Ratjomane impressed the audience to such an extent that he received a standing ovation.

 
2) Mr Steyn Strauss (Naudes Attorneys) 

According to Mr Strauss, the Paul Steyn Farming Enterprise in Warden is the largest BEE transaction to date. This big farming enterprise had only two shareholders -  the father and son. The enterprise produces and sells both livestock and fresh produce to individuals, small businesses and national chains. Clients and financiers started to demand BEE compliance as a requirement for future business transactions. The enterprise’s requirements for BEE included compliance by the existing company in terms of agricultural codes; compliance at a higher level for certain strategic clients; financing of working capital and grants;  and compliance at entry level to retain and obtain new water rights.

After the restructuring the son and a BEE partner incorporated a new company with 49% of the shares owned by the son and 51% by the BEE partner. The father then sold 10% of his shares to the new business so that he owned 50%, his son 40% and the new company 10%. Mr Strauss reminded the audience that while BEE is a challenge to every business, each enterprise is unique and that it is important to determine the specific BEE needs of the business in advance.

3) Messrs Mauritz Kotze, Antonie Remmelien and Andre Badenhorst (Oppermans) 

The Oppermans’ land near Jacobsdal comprises 210 hectares under irrigation. The project was initially made possible by the Department of Agriculture which allocated R15 million. There were, however, many challenges. A solution came in the form of a partnership with a commercial farmer in the area – Andrè Badenhorst. Furthermore, on the request of the Advisory Committee, three outside companies committed themselves to pay the mentor, Etienne van der Walt, who had been appointed on a three year contract. The mentor’s objective was, inter alia, to coordinate training and to manage and administer the farming enterprise. The project has thus far, with the assistance of the mentor and the partnership, been a success. Positive aspects which also resulted from the project have been many new projects which have been established in the area. Mauritz Kotze (from the Department of Agriculture) and Andrè Badenhorst and Antonie Remmelien, from Oppermans, gave their perspectives on the project.

4) Mr Bernhardt du Toit (Langrivier) 

Mr du Toit’s enterprise is a good example of a direct equity BEE transaction. Mr du Toit has 242 permanent employees and up to 600 in season. He has 10 000 hectares of land of which 500 are under irrigation. Langrivier exports fruit to, inter alia, the United Kingdom, Italy, etc. Mr du Toit decided a couple of years ago to sell 30% of his shares to his employees. He emphasised, however, that white farmers have to have a heart for BEE to ensure success. He stressed three important aspects namely for the peoples’ potential needs to be developed, social development must take place and that there has to be wide acceptance of the scheme.. He highlighted the importance of education and training with regards to training needs which would enable a person to do his work better; training needs to address character development - worthiness, boosting self image and esteem; training to empower - creating and having opportunities for becoming trustees, shareholders and business people.

To view the complete presentations of all the speakers click here