Day: January 17, 2023

Ofentse Moloko, a 37-year-old entrepreneur from the North West, says the support government gives to Black-owned companies operating in the poultry industry will contribute significantly to transforming the sector and ensuring food security in the country.

Moloko, the CEO and Managing Director of Baramakama Poultry, runs a family-owned egg-laying chicken company in Molote City, North West.

He believes that the sustainability of businesses depends on Black-owned companies occupying the entire value chain of the industry.

Baramakama received support to the tune of R50 million from the Department of Trade, Industry and Competition (the dtic) and its development finance institution, the Industrial Development Corporation (IDC), as part of the Black Industrialists Programme.

“We are the perfect example of the success that Black-owned companies can achieve with the support of government in the poultry industry,” says Moloko.

The Black Industrialists Programme is part of government’s efforts to accelerate the quantitative and qualitative increase and participation of Black Industrialists in the South African economy, selected industrial sectors and value chains.

Moloko recalls how his father, who “started from nothing back in 2016”, used his savings to invest back into the community of Molote City.

“We decided to establish a poultry business, specifically in the layers as they showed the greatest opportunity for employment creation ,as well as massive room for economic and ownership transformation.

“For almost three years, we persistently and continuously knocked on the doors of all the private banks in this country, but the doors were all slammed on us after months of completing their processes, mainly due to the land belonging to the community.

“When the dtic and IDC decided to fund our business after a thorough due diligence process, it was like music to our ears.”

The financial support from the dtic and IDC enabled Baramakama to expand its operations by adding five new automated chicken houses and a modern, state-of-the-art pack station. The family business has also managed to increase the premise’s carrying capacity from 100 000 hens to 280 000.

In addition, the company has now added 40 new jobs, while the number of permanent employees jumped from 80 to 112. Of these, almost 80% of the employees are young people, while 44% are women.

“Today, our operation runs 24 hours per day and on average, we produce 225 000 eggs per day at full capacity. The support we received from government has made us a recognisable and important player in the industry,” Moloko says.

Although he appreciates the importance and recognises the value of the support that government provides to Black Industrialists, Moloko strongly believes that government should consider extending its backing across the value chain of the poultry industry to achieve sustainability and ensure success.

“Government support needs to cut across the value chain if we want meaningful transformation of the industry, and if we want the Black industrialists to play an important and discernible role in food security in the country.”

This includes feed production, hatcheries, abattoirs, chick rearing, processing and market access.

“Although we regard ourselves as a success after obtaining the support, we are left at the mercy of our key competitors from whom we source feed and hens. That makes us vulnerable as the supply tabs can and are regularly switched on and off, depending on how they want to control and benefit from the market conditions,” Moloko says.

He does not pin all his hopes on the Poultry Sector Master Plan — which was developed in close partnership between government and several stakeholders in the industry — to increase the level of Black participation, particularly ownership across the value chain, employment creation and worker share-ownership in the sector.

Moloko is of the opinion that the decisions taken within the Poultry Master Plan depend on the existing big players in the industry, who, through their actions, do not easily allow Black players into the more profitable value chain channels.

However, he remains resolute and hopeful that with more Black players in the value chain, the industry will not only transform but also allow healthy competition to the benefit of all participants.

Source: South African Government News Agency

National Treasury has promulgated a raft of tax laws following proposals outlined by Finance Minister, Enoch Godongwana, during the 2022 Budget Speech.

This includes the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2022, (Act No. 19 of 2022) (2022 Rates Act); Taxation Laws Amendment Act, 2022 (Act No 20 of 2022) (2022 TLAA) and Tax Administration Laws Amendment Act, 2022 (Act No. 16 of 2022) (2022 TALAA).

These were promulgated on 5 January 2023.

In a statement, Treasury said the Acts give legislative effect to the tax proposals, as outlined by the Minister of Finance in his annual National Budget Speech delivered on 23 February 2022.

“The 2022 Rates Act gives effect to changes in rates and monetary thresholds and increases of the excise duties on alcohol and tobacco. It also contains changes tabled by the Minister in Parliament on 31 March 2022 and 31 May 2022 regarding temporary relief on the fuel levy, as well as the postponement of the effective date of an increase in the health promotion levy.

“The 2022 TLAA contains more complex, technical and anti-avoidance legislative changes. It also contains changes to the carbon tax rate trajectory, extension of the first phase of the carbon tax as well as an excise duty rate for both nicotine and non-nicotine vaping solutions,” said Treasury said.

It said the 2022 TALAA deals with tax proposals that are technical and administrative in nature.

A Final Response Document on the 2022 legislative pieces, as well as the Explanatory Memorandum to the 2022 TLAB (Explanatory Memorandum) and the Memorandum of Objects to the 2022 TALAB (Memorandum of Objects), were also published.

Treasury said the Final Response Document updates the Draft Response Document to consider submissions and decisions made following further inputs by stakeholders, the Standing Committee on Finance and the Select Committee on Finance during public hearings regarding the 2022 Draft Rates Bill, 2022 Draft TLAB and 2022 Draft TALAB.

The 2022 Rates Act, 2022 TLAA, 2022 TALAA, Final Response Document, Explanatory Memorandum and Memorandum of Objects can be found on the National Treasury (www.treasury.gov.za) and SARS (www.sars.gov.za) websites.

Source: South African Government News Agency