Evergreen Valley Avocado Estates (Pty) Ltd Business Plan › Environmental & Regulatory Compliance

20.1 Environmental Authorisations

The development of 150 hectares of avocado orchards may trigger certain listed activities under the National Environmental Management Act (NEMA) Environmental Impact Assessment (EIA) Regulations, 2014 (as amended). The Company will engage a registered Environmental Assessment Practitioner (EAP) to conduct the necessary environmental screening, and where required, prepare a Basic Assessment Report (BAR) or Scoping and Environmental Impact Report (S&EIR) for submission to the Limpopo Department of Economic Development, Environment and Tourism (LEDET).

20.2 Water Use Licensing

Commercial irrigation from surface water sources (Letaba River system) requires a Water Use Licence (WUL) or General Authorisation (GA) under the National Water Act, No. 36 of 1998. The Company will apply for a WUL from the Department of Water and Sanitation (DWS) through the Letaba Water Users Association. The anticipated annual water allocation requirement is approximately 1.2–1.5 million cubic metres at full production. On-farm dam construction will require a separate water use authorisation for storage.

20.3 Agricultural Compliance

• Registration with DALRRD for agricultural activities and phytosanitary certification

• Compliance with the Agricultural Product Standards Act for export produce

• Registration with the PPECB for export quality inspections and cold-chain compliance

• Adherence to the Fertilizers, Farm Feeds, Seeds and Remedies Act for input usage

• Compliance with the Conservation of Agricultural Resources Act (CARA) for soil and water conservation

20.4 GlobalG.A.P. Certification

GlobalG.A.P. (Good Agricultural Practices) certification is a mandatory market access requirement for avocado exports to the European Union and United Kingdom. The certification covers food safety, traceability, integrated pest management, worker health and safety, and environmental management. The Company will implement GlobalG.A.P. standards from the outset and will target certification by Year 2, Q4, in advance of the first commercial harvest. Annual surveillance audits will be conducted by an accredited certification body.

20.5 Phytosanitary and Food Safety

South African avocado exports must comply with the phytosanitary requirements of importing countries, including pest freedom declarations, cold treatment protocols for specific markets, and Maximum Residue Level (MRL) compliance for all chemical inputs. The PPECB conducts mandatory pre-shipment inspections of all export consignments. The Company will maintain detailed spray records, harvest records, and traceability documentation to support phytosanitary certification.

20.6 Tax and Legal Compliance

• Corporate Income Tax at 27% (Companies Act and Income Tax Act)

• Value-Added Tax registration and compliance (VAT Act, farming enterprises qualify for zero-rating on certain export sales)

• Skills Development Levy (1% of payroll) payable to AgriSETA

• UIF contributions (1% employer, 1% employee)

• COIDA assessment and compliance

• Transfer pricing documentation where applicable for cross-border transactions

• Annual statutory audit by a registered auditor (Companies Act requirement for Pty Ltd companies exceeding public interest thresholds)

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