The Department of Agriculture, Land Reform and Rural Development has gazetted procedures that elevate Broad-Based Black Economic Empowerment (B-BBEE) compliance as a core criterion in allocating preferential export quotas to the European Union under the SADC-EU Economic Partnership Agreement (EPA) for 2026.
Published in Government Gazette No. 54037 on January 30, the notice outlines the application, administration and allocation of Tariff Rate Quotas for specified agricultural products.
According to the notice, permits will be allocated via the Preferential Market Access Permit Allocation System, which weighs five variables, with B-BBEE listed first as follows:
- The B-BBEE status of applicants will be determined based on a valid B-BBEE certificate measured against the Amended Agricultural Black Economic Empowerment (AgriBEE) Sector Code, issued by a SANAS-accredited verification agency. Alternatively, a B-BBEE sworn affidavit may be submitted for Exempted Micro Enterprises (EME) and Black-Owned Qualifying Small Enterprises (QSE).
- The market share of applicants – derived from historical export data for the past three years (2022, 2023, 2024).
- The quota applied for by applicants.
- The number of applicants.
- The total quota available for the specific product.
According to the AgriBEE Sector Code, enterprises with an annual turnover of R10 million or less qualify as an EME. An EME will enjoy a deemed B-BBEE recognition status of level 4 or enhancement level 1 or 2.
A QSE is an enterprise with an annual turnover between R10 million and R50 million. It qualifies for B-BBEE recognition levels 1 or 2 (as defined in the Amended AgriBEE Sector Code). QSEs that are at least 100% or 51% black-owned must use a B-BBEE sworn affidavit. However, a QSE that is less than 51% black-owned must undergo a B-BBEE verification with an accredited SANAS verification agency.
A large enterprise is defined as having an annual turnover exceeding R50 million, regardless of the percentage of the black ownership. The enterprise must undergo B-BBEE verification with an accredited SANAS B-BBEE agency to obtain a valid certificate.
Quotas allocated to exporters will be provisional in terms of the notice.
“The department will assess the utilisation rate during (the) quota year after which there will be re-allocation,” it notes.
“Despite any provisions in other laws, applicants registered as joint ventures, mergers, consortiums, holding companies or other similar business arrangements are not allowed to apply separately from their subsidiaries, minority shareholders or divisions for the same product, as this will create an unfair advantage towards other applicants."
Companies that have common Directors or Owners will be disqualified.
"If the market share for a particular applicant exceeds the limit for dominant firms, contemplated in section 7(a)-(c) of the Competition Act, Act 89 of 1998 as amended; the Department can adjust the allocation formula to create fair competition within that industry or sector,” the Gazette notes.
The notice applies to 2026 quotas, with permits valid from January 1 to December 31, 2026. It replaces prior notices on SADC-EU EPA export procedures.
Read the gazette here.
