Budget Vote Presentation

1. Budget Vote Presentation Rashida Issel Acting Chief Executive Officer National Development Agency 23 June 2009

2. NDA Strategy (NDA ACT) The National Development Agency ( NDA) is a statutory organization, which was established by the National Development Agency Act ( Act No.108 of 1998) in November 1998. The NDA is a public entity listed under schedule 3A of the Public Finance Management Act (PFMA) and reports to the Parliament of the Republic of South Africa through the Minister for Social Development and is mandated to carry out the following:

3. NDA Strategy (Mandate) Primary mandate: • To contribute towards the eradication of poverty and its causes by granting funds to civil society organizations for the purpose of: • Implementing development projects of poor communities;and • Strengthening the institutional capacity of other civil society organizations that provide services to poor communities. Secondary mandate: • To promote consultation, dialogue and sharing of development experience between civil society organizations and relevant organs of state, debate development policy; and to • Undertake research and publication aimed at providing the basis for development policy. Vision • A developing society free from poverty MissionFacilitate development through targeted grant funding, research and strategic partnership.

4. NDA Strategy • Mandate • Primary Mandate • Distinguishing factor for the NDA is the interaction with CSO’s. • Funding through grant making. • Strengthen and develop civil society. • Identified types of CSO’s – think tank, lobbying and service delivery – latter is • the NDA focus group. • Look at income generation projects and food security (ability to produce or buy your own food). • Project selection must be focused and must be informed by research, government priority and provincial assessment

5. NDA Strategy • Mandate • Secondary Mandate • All decisions must be informed by relevant • research. • Debate to influence government policy. • Interface between State and CSO’s. • Research by NDA should be commissioned • research to address specific needs, and may be • done internally or outsourced.

6. NDA Strategy The three year strategy approved by the NDA Board in respect of the period 2009 to 2012 once again has as its prime focus the mandate of poverty alleviation however it also encompasses a recognition of the financial constraints within which the organisation operates. The strategy includes 4 strategic goals

7. NDA Strategy Strategic Goal One: Promote sustainable development Purpose: To contribute to the eradication of poverty through grant funding and resource mobilisation

8. NDA Strategy Strategic Goal One Outputs: 1. Food security projects funded 2. Income generating projects funded 3. Targeted agricultural and agri-business projects identified and funded 4. Capacity building support to funded projects

9. NDA Strategy Strategic Goal Two: Promote organisational sustainability, development practice and excellence Purpose: To develop additional income streams to build and sustain the capacity to enable us to operate efficiently and effectively

10. NDA Strategy Strategic Goal Two Outputs: 1. R 50 million raised by 2012 in kind and cash in addition to government grant 2. Repositioning of the organisation 3. Vulnerable groups identified and empowered 4. Reduce costs to achieve a 65% direct project funding 35% support and administration costs split 5. Approved and aligned organisational structure to strategy 6. Best practice policies, procedures and unit strategies 7. Unit strategies aligned to NDA strategy 8. Compliance and good governance 9. Living the NDA values

11. NDA Strategy Strategic Goal Three: Promote interface between CSO’s, Research Institutions, Development Practitioners and the State on development issues Purpose: To facilitate dialogue to inform development policy and service delivery

12. NDA Strategy • Strategic Goal Three Outputs: • Sector relevant and recognised plan for dialogue • Measure efficacy of dialogues facilitated on • public policy, grant funding and service delivery • issues   • 3. Dialogues facilitated on relevant development • issues

13. NDA Strategy Strategic Goal Four: Facilitate research that informs grant funding decisions, procedures and development policy Purpose: To facilitate information and knowledge generation to strengthen the development programming of the NDA and informing development practice and policy

14. NDA Strategy • Strategic Goal Four Outputs: • 1. Functional database • Functional resource centre • Detailed reports of funded projects • Sector specific studies. • Documents produced and lessons shared from • case studies to influence policy

15. NDA Strategy (Grant Funding) • The NDA receives an annual allocation from National Treasury through the National Department of Social Development. • 65% of total allocation is allocated to grants for CSOs to implement poverty eradication programmes. • The grant allocation is proportionally split amongst provinces using a pre-determined formula based on Statistics SA poverty indices. • The biggest allocations historically have been to the following provinces: Kwa-Zulu Natal Eastern Cape, and Limpopo • Since 2007, the NDA took a strategic decision to increase baseline allocations to Free State, North West and Mpumalanga provinces. • The graph in the next slide represent year on year global grant from the Department of Social Development to the NDA.

16. NDA Strategy (Year on Year Allocation To The NDA)

17. NDA Strategy (Grant Funding) • NDA provides grants to CSO’s to implement projects in income generation and food security sectors to eradicate poverty • NDA grants funds to CSO’s through two approaches, namely: - Request for proposals( RFP) - Programme formulation(PF) • Funds granted to CSO’s are in line with PGDS, IDP’s and government wide priorities

18. NDA Strategy (Grant Commitments 2003/04 – 2007/08)

19. NDA Strategy (Disbursement To Projects 2004 – 2008) • In 2003/4 financial year, the NDA disbursed R104.7m to funded projects • In 2004/5 financial year, the NDA disbursed R90.1m to funded projects. • In 2005/6 financial year, the NDA disbursed R55.6 m to funded projects. • In 2006/7 financial year, the NDA disbursed R49.5m to funded projects. • In 2007/8 financial year, the NDA disbursed R76.6m to funded projects • In 2008/9 financial year, the NDA disbursed R85.8m to funded projects

20. NDA Strategy (Capacity Building) Introduction • The legislative mandate requires the NDA to strengthen the institutional capacity of Civil Society Organisations that provide services to the poor. • The NDA has over the past 5 years up-scaled a programme of strengthening capacity of CSOs in the country. This has included capacity interventions in technical, management and leadership strengthening. • Further, the NDA has strengthened NGO networks and consortia to provide coordination and “voice” for the poor on public policy matters. • All 408 funded projects in the period under review have included a significant component of institutional capacity strengthening in programme implementation. • In 2006/07, the NDA launched a capacity building programme for CSO’s with an investment of R25.7m, working in partnership with universities and accredited service providers throughout the country

21. NDA Strategy (Programme Design Of CSO- Strengthening Programme) Purpose of CSO Strengthening Programme • To strengthen the institutional capacity of grassroots organisations to deliver quality services and programmes to alleviate poverty. This programme is divided in three phases, namely: • Conducting Assessments • Developing learning programs and materials • Implementation of training, coaching, mentoring and support

22. NDA Strategy (Why A Capacity Programme for CSO’s) • NGOs and CBOs weak institutional capacity does not facilitate effective service delivery at local level • The social entrepreneurship in communities is not organized and nurtured through targeted capacity enhancement interventions. • Institutional Capacity of NGOs, CBOs and co-operatives need to be strengthened to drive and complement the government wide programme of “massifying” community driven initiatives that create jobs in the second economy. • Communities needs to be strengthened to engage effectively with public policy process.

23. NDA Strategy (Grantmaking Performance Since Inception) • Since inception, in March 2000, the NDA has committed to projects in the following sectors: • economic development, • food security, • community health; and • education. • This has benefited 417 500 direct households. • Indirectly benefited 2 260 736 poor people.

24. NDA Strategy (Achievements and Highlights) • 20 service providers were appointed in all nine provinces of South Africa • 643 CSOs have directly benefited from capacity building strengthening interventions. • 9 645 individuals have been trained in the following areas: • project management • financial management, • community organising • resource mobilisation • public policy analysis • public participation and technical skills in specific areas such as agriculture and provision of water and sanitation

25. NDA Strategy Finances The financial constraints within which the NDA is operating have been seriously considered. During the 2009/2010 FY the NDA will reach the position where it will need to utilize contingency funds (in addition to income grant and interest) to meet operational costs and maintain grant funding levels. This highlights the need for the NDA to address this position in its strategy How many CSO’s have applied for funding and been successful?

26. NDA Strategy Finances There is a direct need for additional funding to enable the NDA to further fulfil its mandate. The NDA continues to utilise a limited and agreed percentage of its government grant for administrative expenses with the bulk being used for poverty alleviation. How many CSO’s have applied for funding and been successful?

27. NDA Strategy Finances At present the NDA has executed the mandate through the utilisation of the annual government grant. The NDA Act specifically provides for the NDA to raise funds from other sources. The NDA has reached a level of maturity where it has now positioned itself to commence with a systematic fund raising initiative. How many CSO’s have applied for funding and been successful?

28. NDA Strategy • The NDA is pursuing the raising of additional funds through the following • initiatives: • Service level agreements with government • departments to assist with programme • implementation, monitoring and evaluation; • CSI programmes to assist corporate entities to • comply with King III; • Commercial opportunities for the sale and • marketing of NDA project products; • Commercial partnerships with service agreements • for the sale of NDA services e.g. monitoring and • evaluation, capacity building How many CSO’s have applied for funding and been successful?

29. NDA Strategy (Summary Budget per Directorate)

30. NDA Strategy (Summary Budget per Directorate)

31. NDA Strategy To paraphrase the words of president Zuma- As you would be aware, the fight against poverty remains the cornerstone of our government’s focus. For as long as there are workers who struggle to feed their families and who battle to find work;For as long as there are communities without clean water, decent shelter or proper sanitation;For as long as there are rural dwellers unable to make a decent living from the land on which they live; For as long as there are women who are subjected to discrimination, exploitation or abuse;We are not resting, and we will not falter, in our drive to eradicate poverty. How many CSO’s have applied for funding and been successful?

32. Questions & Comments THANK YOU.