Socio - Economic Development

Key principles

Socio-economic development refers to contributions that are related to the agricultural industry and contributions actually initiated and implemented in favour of Black People with the specific objective of facilitating access to the economy. These initiatives should be motivated by the objective of providing Black People with social and economic opportunities. Priority should therefore be given to implementing income generating socio-economic initiatives that create sustainable livelihood for beneficiaries. In this regard a Measured Entity must consult and provide proof that it consulted with the beneficiaries to establish their needs.

Where the SED is directed at farm workers it should not be linked to the wage package.

Due to its geographic location, the agricultural sector is specifically rewarded for its contribution in the rural areas as it is best located to make a significant contribution to real transformation.

All other key principles of Statement 500 of the Amended Generic Codes not addressed in this statement are applicable

Farming Enterprises undertake to:

Contribute to socio-economic development initiatives in respect of rural community members, workers and their families and seasonal workers, in particular. The following is a non-exhaustive list of examples, but all such contributions

• Provision of good quality housing, including access to clean water, sanitation and electricity;
• Provision of recreational facilities as well as running costs in this regard;
• Provision or implementation of, health care programmes and related services (with due consideration for HIV/AIDS programmes);
• Provision or implementation of, health care programmes and related services (with due consideration for HIV/AIDS programmes);
• Implementation of retirement, funeral and related schemes provided they are separate from the wage package of beneficiaries;
• Investment in, and/or the provision of support to farm and/or rural schools;
• Engagement in collective contributions to social development;
• Provision of ABET to seasonal workers, rural community members and family of staff members (whether casual or permanent) to increase literacy levels amongst rural South Africans;
• Maintenance of bursary schemes to enable Black People to gain access to tertiary education institutions; and
• Contribute to corporate socio-economic initiatives and/or land available to farm workers. In such cases, the Measured Enterprise will be awarded points in proportion to the target achieved for their contributions. The target which flows from the 2012 AgriBEE Sector Code is 10% of the total agricultural land owned by the measured entity for the period under measurement. The measured entity could earn the full points under SED element, in case where 10% of agricultural land was made available for farm workers. A formal lease agreement must be in place between lessor (farmer) and the lessee (farm workers) without any restriction of trade to the lessee