Agricultural Strategic Plan for Inclusive Growth and Economic Transformation

1. AGRICULTURAL PUBLIC SECTOR STRATEGIC OVERVIEW Department of Agriculture

2. Context • Integrated Economic Cluster Action Plan – identified targeted interventions that the state needed to make. • Microeconomic Reform Strategy – went beyond the original framework to identify micro-level interventions and strategies to be undertaken alongside macro reforms ; • Ten Year Review and Scenario Planning – concluded on need to focus on the 4 big ideas; • Reflections on the economic performance of government over the past ten years – raised the challenges and contradictions of responding to the needs of the first and second economy;

3. Integrated Economic Action Plan • Managed deregulation • Targeted Investments • Focus on target Sectors; • Performance in the Areas of growth; jobs; small medium and micro enterprises [smmes] and black economic empowerment.

4. Strategic Cluster Focus TOWARDS THE SECOND DECADE OF FREEDOM 10 Year Review Scenarios Cluster Priorities MTSF 2004 - 2007

5. VISION - 2014 “Guided by the Reconstruction and Development Programme (RDP), our vision is to build a society that is truly united, non-racial, non-sexist and democratic. Central to this is a single and integrated economy that benefits all.”

6. THE FOUR SCENARIOS S’GUDI S’NAIS SKEDONK SHOSHOLOZA DULISANANG

7. The 4 Big Ideas • Framework of encompassing interest - a Social Compact; • Improving the performance of the State; • Addressing the consequences of the social transition • Improving the regional environment and implementing NEPAD

8. Cluster - strategic 5 year objectives • Continued macroeconomic stability; • Increased levels of public investment in infrastructure; • Lower cost structures throughout the economy and enhanced levels of competition; • Manufacturing and services sectors that are growing, creating jobs, increasing the value-add, meeting basic needs, competing globally; • More enterprises especially black and women owned and managed enterprises;

9. Cluster - strategic 5 year objectives • A labour force with the skills needed by the economy; • Increased spending on R and D activities and the diffusion of new technologies across the economy; • More equitable geographic spread of economic activity;

10. Broad implementation strategies • Maintain a stable macroeconomic environment • Microeconomic reform strategy to minimize input costs and increase access; increase investment in platforms for development and competitiveness; unlock the potential of priority sectors • Second-economy strategy to address poverty and unemployment, and create economic opportunities to build a single economy that benefits all • Governance strategy to build institutional capacity to implement, sequence actions, monitor and evaluate

11. Agricultural Challenges How does the agricultural strategic plan anticipate, preempt or lead us towards any of these threats?

12. Microeconomic Reform Strategy Input Sectors: Transport Energy Telecommunications Water Sequencing of actions Priority Sectors: Agriculture Tourism Cultural ICTs Mining & metals Clothing & textiles Chemicals & biotech Auto & transport Services Key Performance Areas Growth Employment Equity Cross-cutting interventions: HRD Technology and R&D Access to capital Infrastructure Geographic spread Small enterprises Investor Perceptions BEE Africa Building institutional capacity to implement action plans

13. Interventions in the Second Economy Temporary work opportunities combined with skills development Provide conditions for sustainable livelihood Intense skills development programme linked to actual demands in the economyto provide work experience and the challenge of self-employment Access to capital(micro-credit) for productive purposes and ‘realisation’ of existing assets among the poor Main Objectives of the Interventions Catalytic focussed programmes while attending to broad socio-economic challenges

14. Interventions in the Second Economy Key economic interventions in the Second Economy Catalytic programmes Long-term reforms Specific interventions required • Human Resource Development Strategy • Intensified implementation of the learnership programme beyond the targets identified in the GDS agreement • Further Education and Training (FET) with focus on artisan and entrepreneurial training • Adult Basic Education and Training (ABET) with specific focus on ‘education in economics’ • Labour market and economic opportunities intelligence to provide relevant information to ‘outsiders’

15. Interventions in the Second Economy Key economic interventions in the Second Economy Catalytic programmes Long-term reforms Specific interventions required • Expanded Public Works Programme • Training programme for participants either as employees or small contractors • Ensuring implementation of agreed balance in use of funds by local and provincial authorities in labour-based methods • Long-term employment in maintenance of social infrastructure • Long-term employment in provision of social services

16. Interventions in the Second Economy Key economic interventions in the Second Economy Catalytic programmes Long-term reforms Specific interventions required • Support for Small and Micro-Enterprises • Reform of SMME support system, including operationalisation of the Apex Fund and implementation of the Financial Charter • Implementation of programme on assistance to and encouragement of collectives • Improvement of system of registration and collateralisation of assets in the hands of poor individuals, households and communities

17. Interventions in the Second Economy Key economic interventions in the Second Economy Catalytic programmes Long-term reforms Specific interventions required • Land and agrarian reforms • Labour-intensive exploitation of agricultural potential • Land redistribution combined with intensive farmer support programme • Speeding up land restitution and support to community projects and activities that provide sustainable livelihood   Conceptualisation, integration and focus in implementation, monitoring and evaluation: a Strategy for Second Economy Interventions

18. Agricultural Response

19. Policy frameworks

20. Agricultural Sector Plan • Agricultural Sector Plan (2001) – is based on a common vision for – “A United and Prosperous Agricultural Sector” • With three mutually reinforcing strategic objectives:_Enhancing equitable access and participation in the sector; Improving global competitiveness and enterprise profitability;Ensuring sustainable resources use and management

21. Department of Agriculture Vision A United and Prosperous Agricultural Sector

22. Current Key Products and Services • National Leadership [in in terms of policy, legislation, setting strategic priorities, advice, norms and standards, information, monitoring and evaluation, supervision and reporting]; • National Regulatory Services [with respect to national legislation, regulations, controls, auditing services and inspection services]; • National Coordination Services [we facilitate provincial, public entities coordination, international agreements; professional networks; public private,community partnerships] agricultural human resources development]

23. Current Key Products and Services • National Agricultural Risk Management [manage early warning systems, disater management policy [response, recovery, mitigation and preparedness], Pest control and plant and diseases control]

24. Defining AGEE Growth AGE2 Equity Employment

25. Towards a single integrated economy New Economy AGE2 1st Economy 2nd Economy

26. Strategic priorities for the next 5 yrs • Implementation of the Comprehensive Agricultural Support Programme; • Implementation of the Integrated Food Security and Nutrition Programme; • Agricultural Broad based Black Economic Empowerment Programme; • African Agricultural Development Programme; • Improving Knowledge and Information Management Systems; • Research and Development and Technology Transfer; • Improving National Regulatory Systems; • Natural Resources Management Focus;

27. AIM OF COMPREHENSIVE AGRICULTURAL SUPPORT PROGRAMME To enhance the provision of support services to promote and facilitate agricultural development targeting beneficiaries of the Land Reform and Agrarian Reforms programmes within the following six priority areas CASP

28. Agricultural Support Services Information &Knowledge Management Mkting & business dev. Technical & adv. assistance On- & off-farm infrastructure Regulatory services Training & capacity bldng The CASP Model Macrosystem including regulatory and consumer environment Farm Enterprise and Agri -Business Household Food Production The Hungry and Vulnerable 6 Pillars

29. IFSNP • The programme aims to achieve physical, social and economic access to safe and nutritious food for all South Africans; • The broad objectives are to fight hunger, reduce poverty and to build a culture of self sustenance through the promotion of food [home] gardens for family consumption needs as well as communal gardens as business directed enterprises. • DoA – lead department within the Social Cluster and Regional Food Security Interventions; • Food Production support is most significant support to integrated sustainable rural development

30. The AgriBEE Framework • The draft AgriBEE Framework establishes guiding principles and targets for broad based black economic empowerment in agriculture. “It is intended to assist all existing and potential future stakeholders and partners in the agricultural sector to engage in a meaningful dialogue and course of action that can, in the shortest time possible, erase the negative effects of our history of a dual sector and achieve outputs that can contribute to the higher societal ideal of a better life for all. ” — Minister for Agriculture and Land Affairs, Thoko Didiza, at the launch of the AgriBEE Framework, 26 July 2004.

31. AADP • Objective - Promote South African agriculture’s interests in the world through the development and consolidation of bilateral relations with special focus on Africa and South South Cooperation • Pillars:- Trade, Technology, Training, People, Politics; • Key Components – Technical assistance Programme to support bilateral agreements;Implementation of the Comprehensive African Agricultural Development Programme [4 elements – land and water, food security; research and development and market access]

32. Research and Technology Transfer • R and D returns are over the long term; • Challenge of increasing to level of public investment in agricultural research – link also to the NEPAD level commitments; • Objective of the programme is to ensure support for agricultural research and technology transfer and to identify priority research areas for the sector – through the National Agricultural Research Forum.

33. National Regulatory Services • Programme focused on managing risks associated with plant and animal diseases, food safety and the use of genetically modified organisms • Challenge is with increased movement of goods and services comes increase in diseases risks.

34. Other Priorities • Natural Resources ManagementBest practices for sustainable agriculture;Legislative environment – SUAR, Biodiversity Bill; Awareness and enforcement Confronting the risks and threats – game farming, desertification. • Human Resources ManagementCreating new human capital for the sector – youth, women in the areas of management, entrepreneurs, scientists etc • Knowledge and Information Management SystemsCommon standards, indicators and interoperability of information systems.

35. Land and Agrarian Reform Integrated Food Security and Nutrition Programme Agro processing Industries Household Food Production Programmes Comprehensive Agricultural Support Programme Viable Farming Enterprises Land Redistribution for Agricultural Development Where it is agricultural land Agro Tourism Strategy Water Resources Strategy Restitution Programme Tenure Reform Programme

36. The way forward • Policy frameworks generally in place – challenge is implementation • Implementation systems not synergistic – Cluster system at national level working but requires improved focus; not aligned with departmental implementation systems and provincial system of implementation; concept of a social compact and partnership with civil society not being implemented; • International dimensions to our work and focus have posed increased pressures and untapped opportunities • Knowledge economy and all its traits are here on us.