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Operation Phakisa: Agriculture, Rural Development and Land Reform

Operation Phakisa: Agriculture, Rural Development and Land Reform. October 2017. On 15 August 2012 the President said:. “ T h e Nationa l Pl a n n ing Com mis s ion wi l l f r o m tod a y :

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Operation Phakisa: Agriculture, Rural Development and Land Reform

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  1. Operation Phakisa: Agriculture, Rural Development and Land Reform October 2017

  2. On 15 August 2012 the President said: “The NationalPlanning Commissionwill from today: WorkwithDPM&EtoturnPlanintotargetsto be incorporatedintofutureperformanceanddeliveryagreements ...politicalparties,companies, schoolgoverningbodies, trade unionsandmany sectors, shouldalsoincorporatemany aspects ofPlanin theirownlong-termplanningexercisesandimplementation plans” Parliament Department of Planning, Monitoring and Evaluation

  3. The main objective of NDP is to eliminate poverty and reduce inequality by 2030. Based on 4 broad objectives, 13 chapters were outlined to achieve the objective Directly related As enabling milestones, objectives and actions have been set along 13 chapters Economy and Employment 1 Economic infrastructure 2 Environmental sustainability and resilience 3 Inclusive rural economy 4 South Africa in the region and the world 5 Transforming Human Settlements 6 Improving education, training and innovation 7 Health care for all 8 Social protection 9 Building Safer Communities 10 Building a capable and developmental state 11 6th Operation Phakisa! Fighting corruption 12 Nation building and social cohesion 13 SOURCE: National Development Plan 2030

  4. OverarchingProblemStatement TheSouthAfrican agriculturaleconomy is shrinking,andhasnot deliveredaccordingto expectationintermsof economicgrowth, rural development,jobcreation, equity,andtransformation, amongst others Keychallengeshaveinclude: • Structural andeconomicdistortionscausedbyApartheid,andpoor policycoherence; • Joblossinthesector; • IneffectiveRuralDevelopmentandLandReform; • IneffectiveNatural ResourceManagement,andNaturalDisasters; • Concentrationandcentralisation ofagribusinesses;and • Inadequateproducersupportandweakimplementationsystems Department of Planning, Monitoring and Evaluation

  5. OverarchingProblemStatement • At thecoreofthese challengesare increasinglevelsof inequalityin thecountry. Risinginequality callsfor heightenedconsiderationofmoreinclusivemodelsof growth • Withoutaddressinginclusion(socialand economic)the verynature andessenceof our growth processes becomesquestionable • Thus,theprimaryobjectiveofOperationPhakisaof Agriculture,LandReformand RuralDevelopmentis to ensurethe formulation ofrequiredinterventionstowards greatereconomicinclusion. Department of Planning, Monitoring and Evaluation

  6. State of Agriculture today • South Africa's economy entered a technical recession in the 1st quarter (2017), as real GDP contracted by 0.7% on a quarterly basis following a 0.3% decline in the final quarter of 2016, = second technical recession since 2009. • This is reflected in the 22% surge in Agriculture's contribution to the GDP during the first quarter of 2017. • During 2016, the real growth of Agriculture was negative, but the good rains at end on 2016 resulted in real growth of 23.1% (q1) and 33.6% (q2). This contributed to the that the economy was lifted out of the technical recession. • Although the contribution of primary agriculture to GDP is low, the broader agro-food complex contributes about 12% to GDP.

  7. State of Agriculture today • Number of commercial farms (Primary agriculture) declined from almost 120 000 (1950) to around 35 000 (2016) (Cousins 2016). • Primary agriculture constitutes 5% of employment in RSA • 2nd quarter (2017) shows a reduction in employment of 4.6% from 1st quarter, y-o-y positive change of 1.2%, (QLFS Stats SA, 2017). • Rural unemployment had increased from 47.6% in Q1 to 48% (Stats SA QLFS Q2, 2017. Agriculture lost 40 000 jobs in the second quarter of 2017 (QLFS Q2, Stats SA, 2017). • Employment declined in both primary agricultural production and agro-processing by about 30% to 40% (1994 to 2015), Real contribution of AFF to GDP increased by 29% (1994 to 2012) Theconsistentstoryisthatofslow-to-modestgrowth anddecliningemployment - longer-term trend evident since 1950.

  8. Agrarianreform:itssignificancein aninclusiveeconomy • Agriculture, Forestry and Fisheries (AFF) - recognised as sector with significant potential - economic growth, job creation, poverty alleviation and food security, with strategic links to beneficiation opportunities and Land Reform. • Constraints: rising input costs, fluctuations in global markets, lack of developmentalinfrastructure, droughtforeign competition and dumping of produce on out markets.Keyamongsttheseis poortransformationagainstthenationalaspirationsofadevelopmentalState. • Four (4) million ha of land transferred (March 2013) largely remain underutilised. • It is within this context that the NDP calls for a policy shift for Agriculture ForestryFisheries&LandReform,andofanInclusiveRuraleconomy Department of Planning, Monitoring and Evaluation

  9. Potentialof Agricultural sector:multipliereffects R1investment onincreaseinGDP R1millioninvestmentonjobcreation (sourcePan-AfricanResearchServices, 2015) Agriculturecontributetofoodsecurity,ensuringimprovedaccessto food.Agriculture'sreturnoninvestmentisgreatercomparedtoother sectorse.g.construction,manufacturing,&mining 11

  10. However, there ismuchDisinvestmentin Agriculture Net Farm IncomevsGrossCapitalFormation(BFAP,2015) ◙Despitegrowth innetfarm income,farmers havenot re- investedinthe formof capital investment,and ◙Thereislow Public investmenton thesector 35 18 16 14 30 25 R'billion(2005) 12 R'billion(2005) 20 10 8 6 15 10 4 5 2 NetFarmIncome(Leftaxis) Gross Capital formation (Right axis) 0 0 1971 1976 1981 1986 1991 1996 2001 2006 2011 Reasonsinclude:crowdedconcentration; policyuncertainty, increasingproduction costs,andabuseof dominance 12

  11. AgriculturalGDP 2016RealAgricGDP:13.3% 2.5% 8% 6% 2.4% 4% AgriShareof GDP 2% 2.3% AgriGrowth 0% 2.2% -2% -4% 2.1% -6% 2.0% -8% Downspikesdueto high foodpricesin2008/9&farm labourdisputesin2014 1.9% 2010-Q1 2011-Q1 2011-Q3 2012-Q1 2012-Q3 2013-Q1 2013-Q3 2014-Q3 2015-Q1 2015-Q3 2010-Q3 2014-Q1 AgriGDP/TotalGDP AgriGDPGrowth Source:StatsSA,2016 13

  12. FoodInsecurity (individuals) 14.5 14.1 mil 13.8mil 14 13.6mil 1 13.5 2 13 3 12.5 4 12mil 12 11.5 11 10.5 1 2 3 4 Source:StatsSA, 2016 14

  13. Estimatedeffect onfoodinflation Foodinflationisexpectedtoincreaseby >12% by Aug Foodinflationforecast 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 128 126 124 122 120 118 116 114 112 FoodInflationindex FoodInflation Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Fortunately, thecountryhascapacityto importmaizeandother grains withWhite maize imports alreadycomingin fromZambia, Mexico&USA. 16

  14. Risinginequality-Ginicoefficient 17

  15. Werequirean accelerationstep– a drasticchangetoour currentreality Povertytrends 60% Inequalitytrends 50% 40% 30% Percentageofpeopleinpoverty Presenttrajectory Requiretrajectory 20% 10% 0.70 0.68 0.66 0.64 0.62 0.60 0.58 0.56 0.54 Inequalitytrend(ginicoefficient) Presenttrajectory Require trajectory 0% Employmenttrends 25 Employmenttrend(millions) Presenttrajectory Requiretrajectory Employmentinmillions 18 20 15 10 5 Source:StatsSA, 2016

  16. MTSF 2014 - 2019 • The Medium Term Strategic Framework (MTSF), 2014-19 has further articulated the NDP goals and objectives for these sectors into implementable actions, with targets and indicators tracking performance. • Outcomes 7, 4 and 10 of the MTSF covers extensively these actions, which are either led or supported by DAFF, DRDLR, Departments of Environment Affairs (DEA) as well as Trade and Industry (DTI). • AFF Strategic Framework and the Agriculture Policy Action Plan (APAP) were tabled in March 2015 as the turnaround strategy for Agriculture, Forestry and Fisheries sectors.

  17. 9 point plan and RAAVC • The 9-PP - an extension of the MTSF and elevating for rapid and sustainable implementation key game changers towards visible attainment on the pivotal NDP objectives for radical socio-economic transformation. • There are 2 fundamental and priority interventions: “Revitalization of Agriculture and Agro-Processing Value Chain (RAAVC)” and “Unlocking the potential of SMMES, cooperatives, township and rural enterprises”. • Success under RAAVC will include DAFF, DRDLR and the DTI’s ability to work in partnership through jointly owned interventions, wholly owned by all key stakeholders across the sector, especially the involvement of Provincial Departments of Agriculture, State Owned Enterprises, other National Government Departments, Organised Agriculture, Finance Development Institutions and civil society organisations. - therefor the Phakisa

  18. Whydoweneedanimplementationplan? • Planningisanongoingprocessnotaonce-offevent–hence theMTSF,9-PPs,SPsandAPPs • Every systemis perfectlydesignedtoproducetheresultsit produces–togettheresultswewant,weneedtoimprove thesystemsasweworkthroughthem • Thereare differentlevelsandtypesofplansservingdifferent functions–animplementationplanbreakseachproposal downintovariouselementsi.e. cleargoal,priorityactions, targets,resources,and allocatesresponsibilities • There are a variety of plans and programmes implemented by DAFF and DRDLR with various success (ReCAP, CASP, MAFISA, 1H1H, 1H2DC, AVMP, Agriparks, IlemaLetsemaetc) • ItoutlinesaprocessforoursectortoimplementtheNDP-- todemonstrateadifferentwayofdoing–anapproachto implementationthatwillproducedesiredresults • PHAKISA Department of Planning, Monitoring and Evaluation

  19. National Development Plan Vision 2030 and Agric, LR & RD Phakisa Strategically the Lab must contribute towards, inclusive growth, as prescribed by the vision of the National Development Plan (NDP) and the Revitalisation of the Agriculture and Agro-Processing Value Chain (RAAVC) amongst others. 1 Create 1 million jobs 600 000 potential jobs (communal areas), 300 000 jobs (commercial agriculture) 2 Acquire 2 million hectares Of strategically located land by 2019 for land reform 3 Develop 1 million hectares of under-utilised land In communal areas and land reform projects for production. ACTIONS: 4 Provide support to smallholder producers ensure production efficiencies – 80 000 new smallholders (2019) 5 Food security By 2030, every household is able to say “WE HAVE food on the table”. 6 Developing and implementing spatial development plans To guide how land is used while prioritising the 27 resource-poor DM Growing sustainable rural enterprises and industries  Characterised by strong rural-urban linkages, increasing investment in agro-processing, trade development and access to markets and financial services – resulting in rural job creation. 7

  20. Background of Operation Phakisa • In August 2013, President Jacob Zuma undertook a State Visit to Malaysia where he was introduced to the Big Fast Results Methodology. • With the support of the Malaysian government, the Big Fast Results approach was adapted to the South African context. • Operation Phakisa is a results-driven approach, involving setting clear plans and targets, on-going monitoring of progress and making these results public. • Through this methodology the Malaysian government achieved significant government and economic transformation within a very short time. • They addressed national key priority areas such as poverty, crime and unemployment. • To highlight the urgency of delivery the approach was renamed to Operation Phakisa (“phakisa” meaning “hurry up” in Sesotho)

  21. Background of Operation Phakisa • OperationPhakisa:SouthAfricangovernmentapproachandmethodologyforacceleratingdeliveryonnational priorities espousedintheNationalDevelopmentPlan2030,anddoing this better,faster andefficiently. • OperationPhakisa: An innovativeandpioneeringapproachthat bringsstakeholderstogethertocollaborativelytranslatesolutions intodetailed implementationplans. • Adapted fromtheBigFastResults(BFR)methodologyofMalaysia. BFRmethodologyisan 8-stepproblemsolvingmethodology,which includesconveningaDelivery Laboratory(lab). • ALabisanintenseproblem-solvingenvironmentcreatedwithin a dedicatedphysical workspace,with afulltimeteamworkingin iterativemanner,towardsdeliveringBigFastResults

  22. What is Operation Phakisa Methodology? NDP and 9PP (RAAVC) compels us to review the development agenda for Agriculture & Land Reform 4 1 3 2 6 7 5 Set-up institutional arrangements External account-ability Strategic Direction Launch / Open Day Monitoring Delivery Lab Processes of the lab phase Post lab Pre-lab Scoping Lab Proposal • Finalising the report (2nddraft) • Report back to DAFF and DRDLR. (determine implementation readiness of initiatives) • Cabinet submission after Open Day. Inputs and comments received was used to develop the scoping document for the Lab Proposal used in a 6 month consultation process (7, 2-day workshops were held) 5- week Lab ran from 26 Sept – 28 Oct 2016. with 161 registered participants developing 27 initiatives How far are we in implementing the methodology?

  23. Aims of the Operation Phakisa: Agriculture, Land Reform and Rural DevelopmentCo-hosted by the Departments of Agriculture, Fisheries and Forestry (DAFF) and Rural Development and Land Reform (DRDLR), and led by the DPME X2 Broad objectives As enabling milestones, Specific Objectives have been identified Devise interventions for economic growth of priority commodities 1 Determine markets and improve access for commercial and emerging farmers infrastructure • To stimulate growth, foster job creation and instil transformation along the agriculture and rural development value chain. • To contribute towards inclusive growth, as prescribed by the NDP and the Revitalization of the Agriculture and Agro-Processing Value Chain (RAAVC), amongst others. 2 Address fragmented and low impact of financial and non-financial support provided to producers 3 Improve productivity by balancing mechanization and job creation 4 Stimulate development of rural economies 5 Reduce the environmental impact of agricultural production; 6 Devise improvements in water management in agriculture and rural areas 7 SOURCE: National Development Plan 2030

  24. Role of AGRISETA, and other SETAS Skills development underscore all initiatives, therefor accredited training in all initiatives need to be provided Provide quality, accessible education, training and development in primary and secondary agriculture in conjunction with other stakeholders Provide guidance in developing new raining programmes New training modules need to be developed where needed Funding for relevant training provided Ring fence funds received for Agri-skills unit Quality assurance of accredited raining Qualification development

  25. Operation Phakisa: Agriculture, Land Reform & Rural Developmentcomprise of 3 commodity based workstreams, and 4 sectors enablers 5 1 Producer Support Grains 6 2 Horticulture About 152 people from various organizations were involved Labour 7 3 Livestock Rural Development 4 Land Reform

  26. Composition of the Participants One hundred and sixty one registered participants, engaged in the five week lab Business Civil Society Government BAWSI Agratech trade Deciduous Fruit Industry Development Trust Enterprise Evolution Technology Holdings Makolobane Farmers Enterprise AFRIWU NAFUSA The participants were allocated to various work streams namely: Grains, Horticulture, Livestock, Producer Support, Land Reform, Rural Development and Labour; aligning their competencies and areas of expertise

  27. A lot of brainstorming and syndication happened during the Lab process Labs in action… Start of Labs 25 September 2016 by DG of DPME, DAFF & DST Syndication sessions Week 2 & 4 with visiting DGs, experts and private sectors Syndication with Ministers Week 3 & 5 Attended by Ministers DAFF, DRDLR, DOL, DSD Chair PortCom: DAFF

  28. PHAKISA WORKSTREAM LEAD AND INITIATIVE CHAMPIONS LIVESTOCK GRAINS HORTICULTURE PRODUCER SUPPORT Unlocking water to expand horticultural production (Ms Mary-Jean Gabriel) Inclusive horticulture value chain participation model Trade Promotion, Retention and Optimisation (Ms Phindiwe Dingile) Re-engineering agricultural development finance (Ms Elder Mtshiza) Dynamic Business Model for Producer Support (Ms Elder Mtshiza) Harmonization of legislation affecting the agricultural value chain Mr DipepeneneSerage) NdimoDesk (Mr Bonga Msomi) Fortified veld management for sustainable livestock production (Ms Lydia Bosoga) Livestock skills and knowledge upgrading programme (Ms Lebo Botsheleng) Enhanced animal health through revolutionary veterinary services (Dr Modisane) National livestock census, animal ID, & traceability (Dr Modisane) Access to commercial and alternative livestock value chains (Mr M D Motiang) Unlocking finance for grains through PPP (Dr Julian Jaftha) Integrated grain value chain (Dr Julian Jaftha) Grain Know How LAND REFORM – Mr B ZULU RURAL DEVELOPMENT – Mr Nasele Mehlomakulu Financial partnerships for accelerated and sustainable Land Reform (Dr Swartz leads, Mr Mbongwa) Fast tracking the settlement of outstanding restitution claims in a sustainable manner (CLCC Leads, Ms C Benyane and Ms Z Phakedi) Accelerated Land Development and Redistribution Initiative (ALDRI) (Mr B Zulu leads, Mr Toolo) Promoting and protecting rights of persons living under insecure tenure (Ms V Nxasana leads, Mr Maanda Lukoto) District Land Reform Delivery Centre (Mr Zulu leads, Mr V Mngwengwe) Strategic leadership & coordination for structural transformation (Dr Sharmla leads, Mr S Mbambo, Mr T Gwanya, Ms Mdaka to be coopted) Basic Services (Mr P Maluleka leads, Ms T Manzi, Mr K Naidoo) Rural enterprise development (Dr Van Staden leads, Mr Zantsi) LABOUR National Agricultural Decent Work Programme (Mr BonganiMbali - CCMA) Strengthening legal compliance mechanisms (Mr Richmond Ntuli - DoL) Farm worker house and land ownership programme (Mr Christo van der Rheede - AgriSA) Demand led public/ private agri-skills unit (Mr MdupiShabangu - AgriSETA)

  29. Agricultural Growth Lies at the Heart of Transformation The initiatives identified in Operation Phakisa are aimed at transforming the sector. Transformation is inherit across all the initiatives Transformation: increasing the capacity of small holders, building careers of previously disadvantaged groups, unlocking access to the sector and increasing ownership Narrowing the inequality gap in the GRAIN value chain: change in access and ownership to resources with sustainable participation and optimal use of the limited resources Growing the sector through competitiveness and inclusivity with economic empowerment for women and black farm workers towards ownership, whilst upholding human rights - LABOUR Process through which holistic change can be realised that leads to an inclusive participation and growth by previously disadvantaged individuals in the HORTICULTURE value-chain Incremental process of holistic change to ensure equitable access to opportunities, radical economic policy shift, restoration of lost/deprived right – RURAL DEVELOPMENT A change of the dual agricultural sector - inclusivity & equitable participation, irrespective of gender/race to reflect SA population, in the sustainable & profitable production of food & resilience in food security - LIVESTOCK Levelling the play field and establishing a critical mass of competitive black farmers across the value chain, ensure black ownership and control of the market share - PRODUCER SUPPORT Positive change to achieve, redress and create an inclusive sector , that accommodates everyone, using policies and delivery models to enable access to land and create value chain opportunities in a transparent manner – LAND REFORM

  30. The 3 commodity-based work streams, focused their initiatives on expanding the potential for trade in both domestic and export markets, developing and strengthening our value chains, sharpening our research and innovation systems, and making the most of our limited water resources. The Horticulture work stream developed 3 initiatives: 1. Inclusive Horticulture Value Chain; integration to accelerate participation of black role players in Horticulture value chain Skills audit and training 2. Trade P.R.O. (Promotion, Retention, Optimisation); South Africa’s Horticultural trade potential from an estimated R54.4 billion in 2015 to R90 billion by 2030. Training for Market mangers 3. Unlocking Water to Expand Horticultural Production; fast tracking revitalisation of existing and development of new irrigation schemes An additional 34 000 ha for irrigation Training of 500 trainees 3 commodity-based work streams (Livestock, Horticulture, and Grains)

  31. The Livestock work stream developed 5 initiatives: Livestock Skills and Knowledge Upgrading Programme; Knowledge and Skills transfer based on extension services One training repository for all livestock training modules & material updated annually All 1.2 million hhs involved in livestock farming trained on required skills Efficient distribution of extension officers with appropriate skills 10 316 trainers in year 1 and 773 700 trainees over a period of 4 yrs – 5 day training programme - Cost: R 91 M (2017)- R 398 M (2021) 2. Access to Commercial and Alternative Livestock Value Chains; enable access to all aspects value chain (holistic approach) 50% participation by Smallholder producers, therefore training in livestock 3. National Livestock Census and an Animal Identification and Traceability Programme; livestock census every five yrs Training in officials to do census ? 3 commodity-based work streams (Livestock, Horticulture, and Grains)

  32. 4. Enhanced Animal Health through Revolutionary Veterinary Services; country wide veterinary services, capable to meet modern challenges of disease management through training of veterinary professionals Training for veterinary and para-veterinary professionals (4 000 back log), 130 vets per year trained, Create 4 000 new positions (250 per year) 10 animal laboratory technicians – 140 by 2030 5. Fortified Veld Management for Sustainable Livestock Production; Improved productivity of natural veld through rehabilitation, management systems etc 550 000 ha (additional) rehabilitated 800 000 ha (add) cleared of invasive alien plants 20% improvement in grazing capacity of rehabilitated land Possible training required in pasture management, rehabilitation of land and veld, identification of alien invaders? 3 commodity-based work streams (Livestock, Horticulture, and Grains)

  33. The Grain work stream developed 3 initiatives: Integrated Grains Value Chain; - integration of smallholder producers in Grain value chain Target 56 000 farmers over 10 yrsto be trained – (R29M (2017)- R37M (2021) 2. Unlocking Finance for Grains Through PPP; address the limited impact grant based financial models are having on growth in the Grain industry - an added five hundred and seven thousand (507 000) hectares under production, in turn creating about fifty-three thousand (53 000) new jobs. 3. Grains Know How; grain information centre to improve yield and quality double small holder producers’ production of grain Training of farmers – R5-6M per year 3 commodity-based work streams (Livestock, Horticulture, and Grains)

  34. For Producer Support the Lab developed 4 initiatives Ndimo Desk; a centralised virtual platform to link producers to services offered. Provide necessary accredited training to producers so that 60% of hhs involved in Agriculture access agricultural support Comprehensive producers support policy (draft) 2. Re-engineering Agricultural Development Finance; Blended financial products Training to producers on Financial management?? 3. Dynamic Business Model for Producer Support; Commodity groups strengthened to provide comprehensive support for integration into value chain Farmer training on DAFF/SETA model, 5 credits/farmer over 3 weeks for 1 000 farmers, youth stipends for 1 000 youth and R 4 000/ youth/month (R 89 m/yr) 4. Harmonization of the Legislative Framework Affecting the Agri Value Chain Standardisation of all agriculture and related legislation to enable a supportive environment PRODUCER SUPPORT

  35. The Labour work stream came up with four initiatives namely: National Agricultural Decent Work Programme; decent work programme Rights at Work; Employment creation; Social Protection, and Social Dialogue 2. Farm Worker House and Land Ownership Programme; securing braod based ownership - SMART villages This will be supplemented by the provision of support for the farming of the land, through skills and access to the market. 3. Demand Led Public/ Private Agri-skills Unit; developing agri-skills unit at Agri-parks 44 Agri-skills units (2027) 685 696 Certified learners (2028), 617 126 trained learners employed in sector by 2030 Training costs per trainee R 25 300 (Stipend R 3500 + R 21 800 (Agriseta) 4 Strengthening Legal Compliance Mechanisms strengthen compliance to labour laws Training of 300 agricultural inspectors over 5 days by 30 facilitators . LABOUR

  36. The Land Reform work stream developed 5 key initiatives. District Land Reform Delivery Centres; local implementing agents of land reform, Training for these members?? 2. Fast Tracking the Settlement of Outstanding Restitution Claims; expidite settlement of outstanding claims 3. Promoting and Protecting the rights of Persons Living under Insecure Tenure; improve tenure security 4. The Accelerated Land Development and Redistribution Initiative; access to land to the poorest of the poor 5. Financial Partnerships for Accelerated and Sustainable Land Reform; mobilise private sector to complement public funding sources to finance land reform programmes. . LAND REFORM

  37. Rural development has always been mentioned as a key driver to address the triple challenges of poverty, inequality and unemployment. However, slow delivery of rural transformation due to ineffective coordination, planning, execution and implementation has kept rural households trapped within the triple challenges. The Rural Development work stream identified three key initiatives Strategic Leadership and Coordination for Structural Transformation; seeks to address the fragmentation of budgets and programmes aimed at rural development. 2. Augmentation of Existing Essential Basic Service Roll-out Programmes; to fast track off-grid solutions to deliver universal access to essential basic services at a faster pace and at lower cost 3. Rural Enterprise Development rural enterprises and to create non farm employment. RURAL DEVELOPMENT

  38. How far are we in implementing the methodology? 8 5 4 2 1 6 External account-ability 7 Set-up institutional arrangements Lab Monitoring Open Day Delivery Strategic Direction 3 Launch • Appointed Champions per initiative (finalised) • Merging of the Mini-Lab report on Land Reform and Main Lab report (Final draft, along with 3 ft. deep plans) (Sept.). • Cabinet submission of Lab report (Sept. – Oct.) • Open Day – Nov (Presidency). Processes of the lab phase Post lab Pre-lab Scoping Lab Proposal

  39. PHASE 1: Securing buy-in and commitment from role players

  40. PHASE 2: Signing of Agreements (SLAs, MOUs, contract)

  41. PHASE 3: Establishing institutional arrangements

  42. SUMMARY OF PHAKISA 5 YEAR ESTIMATED BUDGET

  43. RESOURCE PLAN • The 3 Value Chain initiatives (livestock, horticulture and grains) be supported through ring fenced CASP, Ilema and Mafisa funds to be used for infrastructure development market access, and production support. That the finalisation of these plans be led by relevant champions in consultation with PDAs, and industry Organisations. • SIP11 business plan and infrastructure development for Value Chains will merge as 1 plan. We proposed to DRDLR for their infrastructure and Agri-Parks budget to support the 3 Value Chain Initiatives - to be discussed). • For the training pillar of CASP, and the Extension support fund, to support and fund the training package in support of the Re-engineering of Development Finance Initiative under Phakisa;

  44. RESOURCE PLAN • For the LandCare budget to be used for the implementation of the Fortified Veldt management initiative under Phakisa • We further propose for the AVMP budget of DRDLR to support this initiative (DRDLR looking for their own budget to cover their initiatives - to be discussed). • For the AIMS and Ndimo desk initiative to merge in function and budget; • Grain Know How – the required research to be funded through DAFF’s, National Research Fund, & DST; and the system through the Ndimo desk • Unlocking water to expand horticultural production – pooling of all irrigation funds between CASP and DRDLR, with 10% allocated for the establishment of the “Presidential Water War Room”

  45. RESOURCE PLAN • Labour – 3 labour initiatives: • National Agricultural Decent Work Programme & Strengthening legal compliance mechanisms - budget under consideration by DG DoL and CEO CCMA. • Farm worker house and land ownership programme (merging with the SSR of DRDLR) • Demand led public/ private agri-skills unit (AgriSETA) • For CFO offices to form a team with DRDLR to look at modalities once consensus and resource plan is approved between two DGs.

  46. The Open Day is a vital step to achieving mass alignment and buy-in for lab outcomes Open Day concept of the Agric., Land and Rural Phakisa What is an Open Day? • An Open Day is typically 2-3 days of showing and sharing to the public the recommendations from the lab reports – however due to financial constraints, Phakisa for Agriculture, Land Reform and Rural Development will be a 1 day event. • It is an interactive session where Lab participants can interact with the public sector and provide feedback • It's also a proven methodology to secure mass alignment and buy-in, it is thus highly interactive and transparent. • 1-day event with 2 sessions: • OPEN & CLOSED SESSION • It will be an interactive session where the public can interact with presenters at various stations (a minimum of 7) followed by a closed session. • The Closed Session will be by invitation only, and will target 200 guests along with a media contingency. The Open Day will remain the prerogative of the Presidency.

  47. Opportunities All initiatives will need some sort of skills development Developing new training programmes Curricula to be adjusted to meet requirements of the markets – more appropriate Agricultural colleges – model farms and center of excellence and training centers (ATI) Internships on commercial farms – for PDI Internships for students with commercial background at emerging farmers Vocational training Training of para-veterinary professionals Producer’s support (Comprehensive producer support policy/TNA) SMME’s training for economic growth – other SETAs Tap into current successful programmes and projects to have quick wins.

  48. Challenges • Quality of training programmes not only numbers trained • Rural training needs for employment to linked up with job opportunities and need to be • Training to support Labour market needs, such as scarce skills and demand driven training to ensure uptake of graduates • Curricula to be adjusted to meet requirements of the markets – take time (Tertiary institutions) • The importance of skills development can’t be underestimated • The youth, gender and rural dimension must not be lost

  49. What can we expect? • South Africa’s 1st comprehensive farm worker skills development programme developed. – • An Integrated Farm workers database • Developed commodity based database at provincial and national level • Reviewed extension recovery plan • The implementation of strategies for National Education and Training for Agriculture, forestry and Fisheries, for Agriculture, Forestry and Fisheries Vocational Educational Training and for the Young Producer Entrepreneurial • Participative commodity-based approach to extension by provinces • Skills Audit of Communal and Smallholder farmers

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