The B-BBEE Net Tightens Around Fishing Sector:

Many folk who actually paid attention or managed to stay compos mentis took away different understandings and perceived visions regarding President Jacob Zuma’s State of the Nation Address delivered to Parliament on June 17^th. I’m referring in particular to the following extract below written for and on his behalf:

“We will sharpen the implementation of the amended Broad-based Economic Empowerment Act and the Employment Equity Act, in order to transform the ownership, management and control of the economy. We will promote more employee and community share ownership schemes and boost the participation of black entrepreneurs in the re-industrialisation of the economy.”

The various government departments have already begun to include B-BBEE compliance as a requirement for licensing procedures and incentive schemes alike. This is nothing new to the fishing right holders and vessel owners who have been forced to comply for some years already. The clause that has me perturbed in particular is in the interpretation of Notice 27 and Notice 28 of 2014 published in the Government Gazette of 21 January 2014, pertaining to the import and export of specified agricultural foodstuffs and flowers, the Department of Agriculture, Forestry and Fisheries has included a valid B-BBEE certificate as one of the application requirements for being issued with a new export and import permit… My fish export company has recently renewed 2 of our export permits and this was not a requirement, yet. It will also need to be established if this will be the department’s intention to implement this and also whether they will be requiring the minimum B-BBEE compliance or if they will (as they have done in the past) enforce a higher level of compliance? This ultimately means that the export and marketing companies will now have to become B-BBEE compliant or lose their export/import permits. It’s almost becoming easier and more viable for me to buy tuna in Namibia and export it from my Cape Town office!

To make matters worse is the fact that as per the Liquor Amendment Regulations 2013 published in the Government Gazette of December 3^rd, 2013 the Department of Trade and Industry is now requiring liquor license applicants to submit a valid B-BBEE compliance certificate in order to renew their permits. I’m not sure how many restaurants and bars will be forth willing to comply? It looks like I might have to move my office to Lüderitz. Prost!