BROAD BASED BLACK ECONOMIC EMPOWERMENT (BBBEE)

In South Africa there is increasing pressure on business to fast-track BBBEE initiatives. We support the principles of the process. Care should however be taken to ensure that we achieve the real objective, namely to empower previously disadvantaged South Africans. Equity ownership receives much more attention than other aspects of empowerment such as the creation and development of small businesses.

Subtropico facilitated the launch of the country’s first 100% black-owned fresh produce market agency, Modise on the Bloemfontein Fresh Produce Market. We provide administration and advertising assistance, trust fund management, training and marketing.

During 2005 Subtropico in conjunction with previously disadvantaged individuals established Spes Bona, a company that operates on the Cape Town Fresh Produce Market. These Individuals have a 40% equity interest in Spes Bona and have 2 directors on the Spes Bona board.

During 2007 we appointed 2 black, independent, non - executive directors on our board who chair and serve on the audit committee. We are privileged to have such high calibre individuals serving on our board.

During 2014 we started providing administration and advertising assistance, trust fund management, training and marketing to Egoly Market Agents, following the acquisition of Wenpro Market Agents.

The Amended Codes of Good Practice, gazette No 36928, came into effect on the 1st of May 2015. During 2016 the Subtropico Group obtained verifications for selected subsidiaries, ranging between Level 5 and Level 8, under the old code that has now been superceded. The 2017 verification for these entities will be completed before the end of September 2018 and will be in compliance with the new Code (in terms of the Broad-Based Black Economic Empowerment Act, 2015 (Act No. 46 of 2015) and is expected to be an improvement on the previous verifications. During 2017 Subtropico Market Agents acquired DW Fresh Market Agents, a company that operates on the Tshwane and Johannesburg Fresh Produce Market. DWFresh is effectively 51% black-owned. During 2017 African Rainbow Capital Investments (“ARC”) has acquired 25.1% in Subtropico. This investment will significantly enhance our BEE ownership credentials and will open the door to exciting opportunities in not only Agriculture, but also cross‐industry.

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