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South Africa – White-owned farms prevented from exporting products

dailyinvestor.com

Daily Investor

 

New regulations will prevent many white-owned farms from obtaining the necessary permits to export products to Europe and the United Kingdom.

On 2 November 2023, The Department of Agriculture, Land Reform and Rural Development published new regulations regarding export permits.

The regulations state that permits will be allocated based on the Preferential Market Access Permit Allocation System.

The first consideration for getting a permit is applicants’ Broad-Based Black Economic Empowerment (B-BBEE) status.

Permits issued for exporting agricultural products are subject to the Agricultural Black Economic Empowerment (AgriBEE) Sector Code.

AgriBEE determines the status of an enterprise using five elements – ownership, management control, skills development, enterprise and supplier development, and socio-economic development.

City Press reported that under the rules, farmers must meet specific black economic empowerment targets to continue obtaining export permits.

The guidelines will apply to agricultural businesses with a minimum annual turnover of R10 million or more.

Milk, cream, butter, fruit, nuts, sugar, jam, fruit purée, fruit juices, yeast, table grapes and wine are among the products affected, according to the notice.

Southern African Agri Initiative (Saai), a farmers’ lobbying group, told City Press that the rules would undermine investor security, job creation and growth in the nation’s agricultural sector.

“The measures fall far outside the framework of internationally acceptable protocols, and the lobby will fight against it in every local and international forum, in courts and multilateral agencies of the UN and the African Union,” Saai head Theo de Jager said.

Noko Masipa (left)

Noko Masipa, the DA’s shadow minister of agriculture, land reform and rural development, said they had lodged a complaint with the trade offices of the EU and the UK.

“The ANC government is imposing trade barriers on the very export businesses we desperately need to create more jobs,” Masipa said…

 

READ FULL ARTICLE HERE…– Daily Investor

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