L Xingwana: Agri-Black Economic Empowerment Showcasing Event

1 March 2007

Honourable Premier Marshoff
Honourable Mayor Chaine
Honourable MEC Mokitlane
Dr Stroebel from the University of Free State
Mr Ramabulana from the National Agricultural Marketing Council (NAMC)
Ms Moahlodi from the Department of Agriculture
Programme Director
Ladies and gentlemen

Madame Premier, it is with great gratitude that I express a pleasure to be
here in Bloemfontein. The gratitude is a result of the fact that it is not
everyday that one has the privilege of being hosted by a Premier. This is the
result of the hectic schedule that you keep.

Madame Premier it is also a pleasure to be in the judicial of capital of our
country. This is I am told, is the city known as "Bloem, the central city, the
hospitable city, the congress city and the city of Roses. It is also the city
of one our struggle's stalwarts, James Moroka.

Remarkably, in South Africa it is also a city that boasts the reputation of
being the best to live in. This is according to the Sunday Times of 11 February
2007. Again I say it is a pleasure to be here.

Ladies and gentlemen,

Today marks yet another achievement in our efforts to transform the
agricultural sector. I am saying this because on 26 July 2004, in East London,
we met as a sector to launch the Agri-BEE Framework and brought a reference
group on board. Almost a year and a half later in December 2005 we met for a
two-day Agri-BEE Indaba wherein stakeholders endorsed the Draft Charter to be
used as a basis to finalise a sector transformation charter, section 12 BEE Act
No 53 of 2003.

Again there was a gathering last year March in Durban for an Inaugural
Empowerment Showcasing Event whereby the sector's Black Economic Empowerment
initiatives were showcased.

Today we mark our holding of the second Agri-BEE Showcasing event here in
the Free State province. Our intention as we move forward is to rotate this
event to all provinces to create awareness and to recognise specific provincial
initiatives.

From an agricultural perspective, the Free State is often referred to as the
breadbasket of South Africa with the highest production of grain. Grains
produced in this province contribute between 30 and 40% to the total grain
production in South Africa. This is all the more reason we chose this province
as the second one to showcase Agri-BEE. The challenge however, is still lies in
the equitable sharing of its resources amongst all its inhabitants.

Ladies and gentlemen, before I talk about the purpose of this event and how
it could benefit our diverse sector, it would maybe prudent of me to bring you
into the loop of what is happening with regard to the Agri-BEE Charter
development process and finalisation. One of the first things that I gave
priority to when our President redeployed me to this Ministry was the
finalisation of the Agri-BEE Charter.

I received the Charter and the two indicative scorecards (one for large
enterprises and the other for small enterprises) which were submitted during
May 2006 for my consideration. After familiarising myself with their contents I
made a decision that was also based on consultations with the Department of
Trade and Industry and departmental officials. This was to ensure that the
Charter is compliant and that it presented a balanced approach for mutual
results for our diverse sector.

Our objective as a department is to see to it that this sector pulls in the
same direction and addresses issues that will transform and improve our sector
in a stable manner. I believe the Agri-BEE Charter can assist us in this
regard. Black Economic Empowerment as a business imperative will grow our
economy into a competitive one, while ensuring long-term socio economic
stability. In fact, research from the Department of Trade and Industry and
other organisations show that already sectors such as the car industry and
housing are already experiencing a boom mainly as a result of an expanding
Black middle class through empowerment efforts.

Our sector should be at the forefront of empowerment because of its high
multiplier effect in terms of addressing issues of illiteracy, unemployment and
poverty eradication.

It is important that I should also mention how we got this far. The Agri-BEE
showcasing event was recommended in the Agri-BEE reference document about which
consultations with stakeholders took place even before the launch of the
Transformation Framework in July 2004. According to the reference document this
event should be held annually and its main purpose should be to showcase
successes, failures and challenges with regard to transformation to assist
policymaking decisions.

The objectives for this event are to:

* showcase good practices or success stories for setting standards and
benchmarks for future efforts
* alerting on challenges and pitfalls which other initiatives should avoid and
address
* create awareness and encourage various stakeholders to participate in
initiating and supporting Broad-Based Black Economic Empowerment projects and
to ensure that empowerment efforts are recognised by those involved in the
sector.

Looking at these three objectives they charge us with positive energy
because they are saying that in our endeavour to transform, let us also not
forget to strive for achieving excellence in our sector! The event offers a
continuous learning experience with opportunities for appropriate improvements.
In my own view, this is a good step in the right direction and it indeed makes
sound economic and business sense. It also encourages the building of
sustainable relations.

We today showcased received initiatives in the form of a workshop and
exhibitions which have ended up with an analysis of lessons learned. The
workshop brought together experts, farmers, agribusinesses, practitioners,
specialists, fieldworkers, officials and other role players who were able to
share their experiences and knowledge. The topics discussed included finance
for BEE, BEE models for lessons, the role of markets in empowerment, skills
development in the sector and other issues impacting on empowerment.

We experienced first-hand information from members who had presentations on
their projects, including challenges and lessons gained. Exhibitors from
industries, projects, government, financial institutions and others increased
awareness regarding goods and services rendered within the sector. I would like
to thank you all for your contribution today. With regard to a panel of experts
who analysed projects and lifted out issues as presented, I must emphasise that
it is important for us to take those issues and share them within the sector as
lessons for improving future efforts to benefit all of us. Panel members, we
appreciate your co-operation and recognise the value of your role in the
success of empowerment in the sector.

Ladies and gentlemen, the future of this event is in our hands as the
sector. For it to move from strength to strength, it will depend on your
co-operation and participation.

In future, when the charter processes have been concluded, we would like to
elevate this event to an annual rewarding level which promotes and encourages
increased successful participation through competition.

As Government, we will continue to partner with you as our stakeholders to
realise the vision of a united and prosperous agricultural sector. We will also
be working with you towards finalising the Charter and the Sector Codes that
jointly address our diverse realities.

Above all, we will continue to aspire to create an enabling environment for
all agricultural businesses, big and small, to produce for national food
security and which compete in the international markets. I therefore urge
businesses and organisations to seize opportunities for partnerships towards
shared responsibility, growth and wealth creation in the sector.

As a sector let us all co-operate and address the wide-ranging challenges of
this sector. Let us carry a positive message and a message of hope to our
constituencies and international world that Broad-Based Black Economic
Empowerment makes economic sense for unlocking efficient use of productive
resources leading to ultimate long-lasting economic and social stability in our
country.

Madame Premier, indulge me a little bit to announce that Governments of
Africa, Europe, Asia, and the Americas together with civil society will hold
the Fourth World Congress of Rural Women in Durban from 23 to 26 April, 2007.
It follows one that was held in Spain in 2002. This Congress will be preceded
by the Pan African Congress where Africa will discuss its position on women's
issues. These will form the basis for a position paper that will then be tabled
at the Congress.

Finally, I must thank you Madame Premier, the Executive Mayor, the MEC for
Agriculture, and others for hosting this event and making it a success. This
event would not have been the success it has been without your tireless effort
and support.

I must also thank the Provincial Heads of Departments of Agriculture in the
other eight provinces for having worked with our national team to identify
projects and businesses to be showcased. To all of you who are here tonight, we
appreciate your support and contribution.

Next year around the same time we will be showcasing further empowerment
efforts in another province for the very same reasons that we are gathered here
today.

I thank you

Issued by: Department of Agriculture
1 March 2007
Source: Department of Agriculture (http://www.nda.agric.za)