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DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM Strategic Plan 2015-2020 and Annual Performance Plan 2015-2016 Presentation to the Portfolio Committee on Rural Development and Land Reform Date : 18 March 2015. 1. Introduction.
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DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORMStrategic Plan 2015-2020andAnnual Performance Plan 2015-2016Presentation to the Portfolio Committee on Rural Development and Land ReformDate : 18 March 2015
1. Introduction The presentation addresses the following areas contained in the Strategic Plan and Annual Performance Plan of DRDLR • Problem Statement • Context • Priorities of the Department • Policies and legislation • MTSF 2014-2019 priorities • Strategic overview • DRDLR Strategic Objectives, performance indicators and annual targets
2.Problem Statement • Apartheid segregated South Africa into three kinds of social, economic and politico-administrative spaces: the major urban areas, which were a preserve of white people; fertile commercial farming regions and associated small rural towns, also a preserve of white South Africans with farm dwellers providing labour to the commercial farming sector; and, barren, economically unviable homeland areas, reserved for South Africa’s black majority population providing labour to the urban centres and industrial areas. • In summary, it is the combination of the colonial pattern of economic development, the Apartheid system of racial segregation and patrimonial patterns of authority in the ethnic homelands, which has brought about two distinct economic spaces; developed, well resourced areas versus underdeveloped and under resourced areas (rural). These two spaces co-exist in an exploitative relationship, with the former being white, well resourced, capacitated and part of the global market economy; and the latter being poorly resourced, incapacitated and confined to providing raw materials and unskilled labour power to the former. • In short, the relationship between the two is that of perpetual dependency and exploitation - the poor subsidizing the rich, in terms of both raw materials and unskilled labour (power).
3. How is it experienced? • Despite many attempts at dealing with under-development ills, statistics in 2007 indicated that over half the households in the former Homeland areas relied on social grants or remittances, from relatives and friends working in the urban and commercial farming areas, compared to a quarter of households in the rest of the country. This picture has not changed significantly over the last few years; • Manifests itself in various ways: social; health; behavioral; moral; environmental; and economic • Significant income inequalities; • The agricultural sector is still dominated by well resourced commercial farmers; both production and value chain; • Key economic sectors are still largely untransformed; not limited to agriculture; eg mining sector still characterised by migratory labour with the labour sending areas still largely underdeveloped (social ills).
4. Social, Economic and Political Consequences • Segregated planning approach promoted unplanned settlements far from developed towns; this resulted in scattered residential and farming settlements without viable economic and social linkages which impacts on the cost of delivery of basic services. • Underdevelopment with its social, economic and cultural manifestations. • Gross income inequality, chronic unemployment and cultural backwardness (cultural backwardness does not refer to customs but rather a person’s inability to advance and improve with changing technology and other innovations). • Decay of the social fabric (child-headed households, crime, family disputes and lack of Ubuntu) resulting from migratory labour practices. • Low incomes combined with low levels of employment leave rural households heavily dependent on government grants and remittances by family members working in urban areas and white commercial farms (Statistics SA,2007). • Environmental degradation.
Continued…. • Unequal distribution of assets, skewed distribution of income and employment opportunities amongst citizens, inequality in access to social services, high level of illiteracy and social backwardness. • In 2008, 58% of farm workers in the formal sector earned under R1000 a month, compared to just 10% of workers in the rest of the formal sector. • The above conditions continue to impact the economic structure of South Africa and affect the goal of social cohesion and development. • To deal with this, one would have to engage with a complex set of threats (lack of skills; youth unemployment; substance abuse; teenage pregnancies; huge income disparities) and opportunities (assets, fertile land; livestock; etc …) • A systems approach with the following dimensions will be required: The knowledge dimension; socio economic dimension; politico institutional dimension; moral-ethical dimension; and the aesthetic relational values dimension.
Context • The rural development and agrarian transformation space is complex and characterized by multiple causation and feedback loops. Therefore, DRDLR developed a Rural Economy Transformation Model which will be implemented through the Agrarian Transformation System. • It is presented in four Development Measurables, laid out in the following phases: • Meeting basic human needs; • Rural enterprise development; • Agro-village industries, sustained by credit facilities and value-chain markets; and • Improved land tenure systems (embedded in meeting basic human needs).
RURAL ECONOMY TRANSFORMATION: AGRARIANTRANSFORMATION SYSTEM Tenure System Reform • State and Public Land • lease hold • 2. Private Land • Free hold with limited extent • 3.Foreign land ownership • A combination of freehold with limited extent and leasehold; and, • 4. Communal land • Communal tenure: communal tenure with institutionalized use rights. • 5. Institutions • 5.1 Land Commission • 5.2 Valuer General • 5.3 National Rural Youth Service Corps • 5.4 Rural Investment and Development Financing Facility • LAND: • Tenure system reform, • Strategic land reform • interventions/redistribution, • Restitution, • Land based resources. Roads, bridges, energy, water services, sanitation, library, crèches, early childhood centres, Police stations, clinics, houses, small rural towns revitalisation. • COMMUNITY: • Social infrastructure, • ICT infrastructure, • Amenities, • Facilities. AGRARIAN TRANSFORMATION ‘A rapid and fundamental change in the relations (systems and patterns of ownership and control) of land, livestock, cropping and community.’ • LIVESTOCK: • Economic infrastructure: • Processing plants • Small industries • Abattoirs, animal handling facilities, feed-lots, • mechanising stock water • dams, dip tanks, silos, • windmills, fencing, • harvesters, etc • CROPPING: • Economic infrastructure: • agri-parks, fencing, • Inputs: seeds, fertilizer, • pesticides, etc • Extension support , • Fresh produce markets, • Credit facilities. • Food Security: • Strategic Partnerships: • Mentoring • Co-management • Share equity • Modalities being worked out between the Dept and farmers; big and small Phase III Phase II Agro-village industries; credit facilities; markets Enterprise development Rural development measurables Phase I Meeting Basic Human Needs VIBRANT, EQUITABLE AND SUSTAINABLE RURAL COMMUNITIES
Priorities of DRDLR • The priorities of DRDLR are aligned with the National Development Plan, MTSF, Outcome 7, SONA and the outcomes of the Lekgotlas of government. • Specific responses to priorities indicated in the SONA have been developed and are detailed in the following slides.
Revitalising Agriculture and Agro-processing value chain: speeding up land reform
Revitalising Agriculture and Agro-Processing value chain: Speeding up land reform
Revitalising Agriculture and Agro-processing value chain: Speeding up Land Reform
Revitalising Agriculture and Agro-Processing value chain: APAP
Revitalizing Agriculture & Agro processing value chain: Agri-Parks incorporated into APAP
Revitalising Agriculture and Agro processing value chain: Agri-Parks incorporated into APAP
Revitalising Agriculture and Agro processing value chain: technical support
Revitalising Agriculture and Agro processing value chain: technical support
Strategic and APP Priorities of DRDLR • Regulation of Land Holdings Bill address the Four-tier Land Tenure System; some of the issues pertaining to tenure security; and ensure compulsory disclosures of who owns the land; • DRDLR will continue with implementation of the River Catalytic Programme and the Recapitalisation and Development Programme to ensure productivity of landand smallholder farmer support. • Integrated Farmer Support Initiative will be implemented in the 2015-2016 financial year together with DAFF. DRDLR will align its projects to the Agricultural Policy Action Plan (APAP) value chain priorities - this will avoid duplication of work.
Strategic and APP Priorities of DRDLR • DRDLR will use spatial planning and land use management as a tool to adequately address landadministration, and redress spatial inequality. In addition a comprehensive land audit is being planned for this MTSF period. • Accessibility and availability of land is critical for agrarian transformation and this requires land reform to be fast tracked. DRDLR is in the process of reviewing policy levers at its disposal to enable this.
MTSF 2014-2019 PRIORITY AREAS 1. Improved land administration and spatial planning for integrated development in rural areas 2. Sustainable land reform (agrarian transformation) 3. Improved food security 4. Smallholder farmer development and support (technical, financial, infrastructure) for agrarian transformation 5. Increased access to quality basic infrastructure and services, particularly in education, healthcare and public transport in rural areas 6. Growth of sustainable rural enterprises and industries characterised by strong rural-urban linkages, increased investment in agro-processing, trade development and access to markets and financial services resulting in rural job creation.
Planned policies for the upcoming MTEF period: 2015/2016 1. Policy on Rural Enterprises and Industry Development. 2. Policy on the Strengthening of Relative Rights for People Working the Land. 3. Policy on a Rural Development Investment and Finance Facility; 4. Electronic Deeds Registration Policy. 5. Policy Reviews on: * Recapitalisationand Development; *Proactive Land Acquisition and *Farm Share Equity Schemes 2016/2017 1. Policy on the Exceptions on the June 1913 Cut-off Date for the Restitution of Land Rights; 2. A National Land Tenure Policy: Responses to Historically Racial Based Social and Economic Disparate Spaces; 3. Policy on Access to Historical Land Marks and Heritage Sites on Private Land (in collaboration with DAC); 2017/2018 1. Rural Settlements Operations Policy (In collaboration with NPC, Human Settlements, NHA, DoCG and SALGA); 2. Policy on a Rural Development Agency
DRDLR Strategic Objectives, performance indicators and annual targets
Managing the implementation • The Department of Rural Development and Land Reform (DRDLR) together with the Department of Agriculture, Forestry and Fisheries (DAFF) identified several areas of collaboration to successfully implement the Agrarian Transformation and the Agricultural Policy Action Plan (APAP). • DRDLR and DAFF finalized the commodity value-chain mapping exercise, which will enable the rural sector to specify where and how each commodity value-chain will manifest. • The following maps indicate the projects of DRDLR and we are now able to determine alignment with the value chain drivers in those areas as well as for each of the 27 prioritized district municipalities:
