1 / 42

RECAPITALIZATION AND DEVELOPMENT PROGRAMME (RADP)

RECAPITALIZATION AND DEVELOPMENT PROGRAMME (RADP) PRESENTATION TO PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM PUBLIC HEARINGS ON RADP 4-5 FEBRUARY 2015. PRESENTATION OUTLINE. BUSINESS PROCESS FLOW. Introduction Background on the Programme Objectives of the RADP Policy

davisjennifer
Download Presentation

RECAPITALIZATION AND DEVELOPMENT PROGRAMME (RADP)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. RECAPITALIZATION AND DEVELOPMENT PROGRAMME (RADP) PRESENTATION TO PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM PUBLIC HEARINGS ON RADP 4-5 FEBRUARY 2015

  2. PRESENTATION OUTLINE BUSINESS PROCESS FLOW • Introduction • Background on the Programme • Objectives of the RADP Policy • Funding Model • DPME Programme Evaluation and Findings • Management Reponses • Progress to date on the Programme • RADP Impact on Key Commodities • Current Challenges and Interventions

  3. MTSF serves as “the principal guide to planning and resource allocation across all the spheres of government” and also sets out the country’s developmental challenges, it is best viewed as a “frame of reference” designed to guide the government’s policy position and programmes of action, it is informed by the election manifesto of the governing party. • The National Development Plan (NDP) identifies six policy imperatives, which will be the focus areas in this MTSF period: • Improved land administration and spatial planning for integrated development in rural areas; • Sustainable land reform (agrarian transformation); • Improved Food Security; • Smallholder farmer development and support (technical, financial, infrastructure) for agrarian transformation; • Increased access to quality basic infrastructure and services, particularly in the education, healthcare and public transport in rural areas; and • 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. • NB: Through RADP the Department contributes to the MTSF priority 4. INTRODUCTION

  4. BACKGROUND ON THE PROGRAMME In 2009, the Department undertook an evaluation of the implementation of the Land Reform Programs since their inception. • It identified that many land reform projects were not successful and thus in distress or lying fallow; • There was a lack of adequate and appropriate post-settlement support; • Numerous properties acquired through various sub-programs (such as the Land Redistribution for Agricultural Development (LRAD) were on the verge of being auctioned or had been sold due the collapse of the project, resulting in a reversal of the original objectives of land reform;

  5. BACKGROUNG CONTINUE…… • RADP was introduced in 2009 in order to address the above challenges; RADP targets properties acquired since 1994 through Restitution and Redistribution programmes; and • Aims to contribute to the transformation of the rural economy through establishment of enterprise and industrial development in the various agricultural value chains. • to ensure national and household food security • to promote job creation • Implemented correctly, RADP would result in the significant reduction of the rural – urban population and resource flow.

  6. OBJECTIVE OF THE RADP POLICY The policy has three strategic objectives: • That Land Reform farms are 100% productive; • That the class of black fledgling commercial farmers which was destroyed by the 1913 Natives Land Act is rekindled ;and • That the rural-urban population flow is significantly reduced.

  7. RADP ALIGNMENT WITH GOVERNMENT MANDATE RADP program took cognizance of the following: • Reversing the legacy of the 1913 Native Land Act; • The Constitution of the Republic: Section 25,26,27 and 36; • The Comprehensive Rural Development Plan (CRDP); and • Alignment with the National Development Plan and Medium Term Strategic Framework.

  8. INTENTIONS OF THE PROGRAMME The policy seeks to: • Provide black emerging farmers with the social and economic infrastructure and basic resources required; • Combat poverty, unemployment and income inequality; • Reduce tide of rural-urban migration; and • Complements agricultural development programs of the Department of Agriculture, Forestry and Fisheries (DAFF). The policy is not meant to: • Substitute for, or compete with the agricultural development programs of the DAFF; and • Create a welfare program meant to provide support to so-called beneficiaries.

  9. THE PROGRAMME DOES NOT PROMOTE,,,,, • Supporting people who have means to develop their land; • Promote proxy farmers - people who run their own businesses in towns and cities, but employ managers to run their farms; and • Failed commercial farmers who want to make a fortune from disbursements meant to fairly compensate strategic partners for work done.

  10. THE PROGRAMME STRATEGY…. The new strategy has taken into account and tried to address challenges that have been identified in the old RECAP policy through the following Strategic Partnership arrangements: • Mentorship of emerging farmers and/or land reform farmer; • Co-management; • Share-equity arrangements; and • Contract farming and concessions.

  11. THE PROGRAMME STRATEGY CONTINUE… • In the RADP policy emphasis is placed on: • Assessing capability of emerging farmer; • Assessing farm needs with regards to RECAP; • Use outcome of the above to determine kind of partnership appropriate for the farm; • Enter into milestone based performance agreement with termination clause • Deploy partner and monitor performance; • Analyse social and economic impact; and • Close out report at the end of five years. • The above will determine the lease termination or continuation.

  12. PROGRAMME FUNDING MODEL

  13. pore • The model above demonstrates the tripartite collaboration between the DRDLR, Strategic partner/s and Farmers or Entrepreneurs; • The middle numbers (1-5) demonstrate the five-year involvement of DRDLR in the farm both financially and at the project management level; and • The contribution of the DRDLR will decrease from the first year to the fifth year whilst the contribution of both SPs and Farmers or Entrepreneurs will increase both financially and at the project management level. PROGRAMME FUNDING MODEL CONTINUE…

  14. DPME RADP IMPLEMENTATION EVALUATION FINDINGS AND RECOMMENDATIONS

  15. CONTENT OF THE EVALUATION PROCESS • INTRODUCTION • PURPOSE OF EVALUATION • KEY QUESTIONS • METHODOLOGY • KEY POLICY FINDINGS • RECOMMENDATIONS RADP – DMPE EVALUATION

  16. BACKGROUND TO THE STUDY… • Implementation Evaluation of the Recapitalisation and Development Programme, by the Department of Performance Monitoring and Evaluation, from inception (2010 till July 2013); • Service provider: Business Enterprises, University of Pretoria; • The Recapitalisation and Development Programme is a post settlement support programme in the Department of Rural Development and Land Reform; • DPME - custodian of the evaluations RADP – DMPE EVALUATION

  17. PURPOSE OF THE EVALUATION… • Provide strategic information on the implementation of the RADP since inception; • Compile lessons learned & recommendations to strengthen the implementation of RADP; • Analyse the stakeholders’ effectiveness during the implementation of the programme; • To establish whether the programme is on track to achieve its intended objectives; and • To advise on what needs to be done to ensure better implementation of the programme. SECRERADP – DMPE EVALUATION

  18. KEY QUESTIONS DURING THE EVALUATION… • Are the two interventions (strategic partnership and mentorship) effective in developing the projects? • Does the programme effectively develop the intended beneficiaries to participate in commercial production? • Is the programme reaching its targeted beneficiaries? • Was the RADP designed appropriately for the achievement of its objectives? • Are the resources used efficiently? Is the value for money being obtained? • What are the strengths and weaknesses of the programme in achieving its objectives in relation to the technical competencies of the various stakeholders? • How can the programme be strengthened? • Is the RADP project cycle aligned to the farming operations? • Are the intended objectives of recapitalization & development programme being achieved / are likely to be achieved? RADP – DMPE EVALUATION

  19. METHODOLOGY… Respondents identified from 640 farms, and were classified into the following categories: • Project/farm management: A structured questionnaire to the management (emerging farmers) of the farms/projects. • Focus Groups (emerging farmers other than project managers): A checklist was used in cases where, in addition to the project manager, there were other beneficiaries. • Strategic partners: Interviews with strategic partners using a checklist. RADP – DMPE EVALUATION

  20. METHODOLOGY CONTINUE… • Project officers: DRDLR officials responsible for the Recapitalisation and Development Programme project facilitation and coordination with strategic partners and mentors were interviewed using a checklist. • Provincial leadership (provincial government officials): A checklist was used for interviews with DRDLR provincial managers responsible for land reform and the Recapitalisation and Development Programme . • National leadership (national government officials): A DRDLR official (Director) at the national level responsible for the Recapitalisation and Development Programme was interviewed using a checklist. RADP – DMPE EVALUATION

  21. KEY FINDINGS… • The Recapitalisation and Development Programme (RADP) has made some progress towards achieving its intended objectives, but there is room for significant improvement. • About 540 additional jobs were created (111 full-time & 429 part-time) on the 98 farms under evaluation after the RADP was implemented. The number of jobs created is too small to justify the amount of investment in the RADP. There seems to be insufficient emphasis on job creation within the RADP; • Most of the RADP stakeholders interviewed believe that food security has improved after recapitalisation. With regards to agricultural production, it is on-going on 70% of the projects included in the evaluation. Both crop & livestock production increased after recapitalisation; • An area in which the RADP, seems not to have made much progress, is facilitation of market access for farmers. RADP - DPME EVALUATION

  22. KEY FINDINGS CONTINUE… • The RADP objectives are too ambitious and involve aspects that are normally outside the control of the programme; • Key terms used in the objectives are not clearly defined, resulting in possible misinterpretation by those implementing the programme; • There are varying degrees of understanding amongst stakeholders of what the RADP entails; • There is no clarity on the selection criteria for beneficiaries and farms to form part of the RADP; this has resulted in the inclusion of beneficiaries that did not necessarily deserve to be assisted; • The grant funding approach in the RADP is not sustainable given the limited resources available and it promotes dependency on state funding among beneficiaries. • The approach limits the coverage of the programme in terms of the number of farmers that may be assisted; RADP – DMPE EVALUATION

  23. KEY FINDINGS CONTINUE… • Strengthening the RADP is the second-best solution, however, the RADP should continue in the interim, while a lasting solution is sought.; 9.The best and lasting solution would entail a redesign and overhaul of all public agricultural support programmes and doing away with existing silos of funding for agricultural support services. This would entail the establishment of an all-inclusive fund to support land acquisition, extension services and mentorship, agricultural finance and market access. RADP – DMPE EVALUATION

  24. KEY RECOMMENDATIONS… The following key recommendations are meant to strengthen the RADP whilst a lasting solution is sought: • Review the objectives of the RADP to make them more clear and specific. This should include defining the meanings of key terms used in the programme (e.g. distressed farms, recapitalisation, development, commercial farmer, etc.). • Ensure a common understanding of the RADP among its stakeholders by engaging in an all-inclusive process to discuss the nature, operation, purpose and objectives of the programme. • Develop clear and specific selection criteria for beneficiaries and land reform farms for recapitalisation and development in line with the objectives of the RADP. The criteria should be developed to ensure that only deserving land reform farms and beneficiaries are selected for participation in the RADP. RADP – DMPE EVALUATION

  25. KEY RECOMMENDATIONS Continue… • Replace the current RADP grant funding with loan funding. Changing to loan funding would increase the coverage of RADP in terms of the number of beneficiaries assisted as the money paid back would become available for on-lending to more beneficiaries. • Establish guidelines to limit the amount of RADP funding per project in order to widen the coverage of the programme and ensure that the funding model is adapted to the various agricultural production systems. RADP – DMPE EVALUATION

  26. MANAGEMENT RESPONSES AND INTERVENTIONS TO ADRESS FINDINGS AND RECOMMENDATIONS

  27. RADP – DMPE EVALUATION – MANAGEMENT RESPONSE

  28. RADP – DMPE EVALUATION – MANAGEMENT RESPONSE

  29. RADP – DMPE EVALUATION – MANAGEMENT RESPONSE

  30. RADP PERFORMANCE SINCE INCEPTION • Generally, even though there are challenges in the implementation of the Recapitalization and Development programme but significant progress has been made, • The key strategic objective of the programme is to: Provide comprehensive farm development support to smallholder farmers and land reform beneficiaries for agrarian transformation by 2019. • There are 1 459 farms under the programme in terms of the 5 year funding model. This constitutes 1,4 million hectares under the programme. • Payment for the interventions is done in tranches based on the approved business plans. • Expenditure of R 3, 318, 305,359 billion for recapitalization and development incurred from November 2009 to March 2014. There are 612 strategic partners currently supporting our farmers. • The support varies from production inputs, Infrastructure, machinery and implements .

  31. STATISTICS ON RADP PERFORMANCE PER PROVINCE

  32. STATE INVESTEMENT ON RADP PERFORMANCE PER PROVINCE

  33. KEY COMMODITIES FUNDED BY RADP… • RED MEAT ; • POULTRY ; • GRAIN; • CITRUS; • VEGETABLES; • DAIRY; • PIGGERY; and • GRAPES.

  34. IMPACT ON FOUR KEY COMMODITIES FUNDED… 1. RED MEAT VALUE Bloemfontein Abbattoir is the key SP under Red Meat Value Chain. Many of the farms have reached the 85% production leveIs to fullproduction. The total number of 3,939 cattle across FS,NC and NW were acquired for 58,396 ha. The jobs created under this partnership are 132 permanent and 1,187 temporary.

  35. IMPACT ON FOUR KEY COMMODITIES FUNDED… 2. BROILER PRODUCTION: DRDLRhas recapitalized 7 broiler projects, in North West (6) and, Free State (1) since the inception. The national poultry plan has been developed to increase poultry meat supply wherein projects from LP, MP, NW,GP and FS have been prioritised. There is a poultry value HUD being initiated in the GP Province and EIA is being done. These farmers are now commercial broiler producers and, each farm is running at least seven cycles per annum. Thus, collectively, they supply about 2,359,000 ready to slaughter broiler birds to the contract market. The highest Black Commercial producer assisted by RADP is producing 528,000 Birds per cyclein the North West Province.

  36. IMPACT ON FOUR KEY COMMODITIES FUNDED CONTINUE… 3. GRAIN: We are having 16 farms under the program of Grain SA. These farmers have collectively planted 2,400 ha under Maize and Sunflower. The farmers have been assisted with machinery, implement’s and inputs costs. Grain SA interventions is rolled out in MP, NW and GP in this current financial year wherein the total of 30 farms will be planted.

  37. IMPACT ON FOUR KEY COMMODITIES FUNDED CONTINUE… 4. SUGAR CANE: The land reform transfers represent 21 % of land under commercial sugarcane production in KwaZulu-Natal (371,075 hectares). Should the valid gazetted land claims be settled timeously, the 50% of land under commercial sugar production will be owned by Black Growers. The department has invested more than R 98,174,162 in the sugar industry to support emerging cane growers who currently planted 4,524 ha under cane and 347 jobs (permanent and seasonal).

  38. IMPACT ON FOUR KEY COMMODITIES FUNDED CONTINUE… 4. GRAPE INDUSTRY: Programme has also supported farmers in the grape industry: West Coast District municipality in the Western Cape Province: • Portion 33 of the farm Rietkloof 2 The current yield is 350 000 cartons of table grapes and 21 000 cartons of citrus. This has improved from 300 000 cartons of grapes in 2010/11 and 16 000 cartons of citrus in 2010/11. There are 19 beneficiaries. The project has employed 55 permanent and approximately 600 temporary employees. Their table grapes are been exported to more than 50 countries abroad ie Europe, Far East, Middle East, Russia, USA, etc • Mont Piquet: the farm Rietkloof 144 commonly known as Mount Piquet situated in West Coast District municipality, Western Cape Province. The current yield is 282 000 cartons of table grapes and 40 tons of citrus. Management indicated that the farm exports of table grapes have increased from 234 000 in 2010/11 season to 282 000 in 2011/12 season. There are 34 beneficiaries. The project has employed 34 permanent and approximately 605 temporary employees. Their table grapes are been exported as above to more than 50 countries abroad ie Europe, Far East, Middle East, Russia, USA, etc

  39. Before Current Key Challenges… DURING AFTER

  40. BEFORE Current Key Challenges Continue… DURING AFTER

  41. Current Interventions…

  42. NGIYABONGA ENKOSI Thank You

More Related