DTI Minister Rob Davies said in a statement the agricultural sector code is important because it will guide the transformation of agriculture.

He describes agriculture as the bedrock of South Africa’s economy, saying it is also linked to all other sectors of our economy.

The scope of the codes therefore includes primary production and provision of inputs and services, as well as services and activities along the entire value chain. This includes the beneficiation (or processing) of agricultural products; and storage, distribution, trading and/or allied activities related to non-beneficiated agricultural products.

Manager of Economic Intelligence for South Africa’s agricultural business chamber Agbiz, Lindie Stroebel, told OFM News in a recent interview that BEE compliance in the past was voluntary, whereas the new codes will make it compulsory:

"You weren't obliged to comply, it was voluntary, and it could have given you a competetive edge if you wanted to do business with Government, etc.

"But... That game has changed because now if you want to do any business of any kind that relies on any license, perhaps an import or export license or a liquor license or a water right, to obtain that from Government you have to comply with BEE."

* Lindie Stroebel


Sabrina Dean/OFM News