REPUBLIC OF SOUTH AFRICA LAND & AGRARIAN REFORM PROGRAMME PARLIAMENT CAPE TOWN 16 OCTOBER 2007 SELECT COMMITTEE ON FINANCE, PUBLIC SERVICES AND LAND AND

REPUBLIC OF SOUTH AFRICA

LAND & AGRARIAN REFORM PROGRAMME

PARLIAMENTCAPE TOWN

16 OCTOBER 2007

SELECT COMMITTEE ON FINANCE, PUBLIC SERVICES AND LAND AND

ENVIRONMENTAL AFFAIRS

LA

ND

& A

GR

ICU

LT

UR

E


Outline Introduction Point of departure Strategies, Goals and Objectives Five Pillars Development corridors and hubs Revitalized & new rural settlements Spatial Economic Planning Development clusters Product portfolio Cluster Actions Action by industries Sector needs New farming systems Revitalized and new rural settlements Key drivers Monitoring and evaluation Flow of funds Recommendations

LA

ND

& A

GR

ICU

LT

UR

E


Introduction An earlier proposal for an SPV on land reform A statutory entity based in the Land Bank Concerns were raised by the President about the Land Bank An alternative National Programme has been agreed Provinces, Municipalities, Business and Civil society to make inputs A non-statutory entity to be jointly managed by the DLA and DoA Earlier SPV ideas are found in the Project No. 7 of the 24 Apex

Priorities Overall objectives:

— Eradication of poverty;

— acceleration economic growth and social inclusion;

— addressing structural challenges of the organization and capacity of the state;

— reaching out to the youth and women; and

— improving the country’s skills base.

Implementation to be based on cooperative government, private public and civic partnerships

LA

ND

& A

GR

ICU

LT

UR

E


Departure Point Based on lessons learned and initiatives under way Project turbo-charges their implementation, including:

— Land Summit recommendations

— Internal reviews of LRAD and CASP

— Pro-active land reform strategy and area-based planning

— Agricultural strategy to support ASGISA

— LETSEMA-ILIMA campaign

— Operation Gijima

Inter-departmental alignment flagship project Implementation is decentralized, supply and demand-driven, and

integrated Monitor Group Report OECD Report Harvard Group of Economists Papers Review of the Sector Plan Review of Agricultural Marketing

LA

ND

& A

GR

ICU

LT

UR

E


Goals, Strategies & Objectives

Job Creation6 million

Economic

Growth6%

PovertyEradication

50%

Sustainable AgriculturalResource Use

Profitability &

Competitiveness

Access &

Participation

Good

Governance

Objectives Objectives

StrategiesStrategies

GoalsGoals

Agribusiness

Services

Production

Land Reform

Exports

LA

ND

& A

GR

ICU

LT

UR

E


Objectives

Redistribute 5 million hectares of white-owned agricultural land to 10 000 new agricultural producers

Increase Black entrepreneurs in the agribusiness industry by 10 %

Provide universal access to agricultural support services to the target groups

Increase agricultural production by 10-15% for the target groups

Increase agricultural trade by 10-15% for the target groups

LA

ND

& A

GR

ICU

LT

UR

E


LA

ND

& A

GR

ICU

LT

UR

E


LA

ND

& A

GR

ICU

LT

UR

E


Product Portfolio

Cross-Cutting Issues

Cross-Cutting Issues

Get organised to lead Pursue AgriBEE objectives Obtain better data Drive collaborative action Focus on innovation

Industries that deliver growth now and/or are positioned for further growth: collaborate & de-bottleneck

Industries that are important for desired outcomes but are not yet competitive: lead the way

Start withStart with

Fix the basics: rules & regulations Foster greater & fair market

access Promote competition & efficiency Mobilise & organise black farmers Provide infrastructure

Primary Agricultural activity

Primary Agricultural activity ProcessingProcessing

Packaging / Additional Value

add


add

HORTICULTURE




add


add

LIVESTOCK




add


add

ORNAMENTAL

Primary AgriculturePrimary Agriculture

ProcessingProcessingPackaging /

Additional Value add


add

GRAINS

Primary Agriculture

Primary Agriculture

ProcessingProcessing Packaging / Value add

Packaging / Value add

INDUSTRIAL

Foundation

Total Value Chain

LA

ND

& A

GR

ICU

LT

UR

E


LA

ND

& A

GR

ICU

LT

UR

E


LA

ND

& A

GR

ICU

LT

UR

E


LA

ND

& A

GR

ICU

LT

UR

E


Sector needs

Supply-SideSupply-Side Demand-SideBusiness

Environment

—Inadequate access to market information

—Limited water—Scarcity of arable land—Soil degradation—Climate change—Rising input costs

—Lack of shared vision across role players

—Limited innovation in risk management

—Negative impact on competitiveness

—Cost of compliance to SPS & TBT standards

—High cost of compliance to labour legislation

—Poor infrastructure —Inadequate basic services—Limited access to capital—Limited skills —Slow Pace of Land Reform

—Limited supporting institutions

—Limited settlement support

All farmers

1st economy farmers

2nd economy farming

challenges

—Limited access to financial services

—Inadequate focus on new markets

—Limited product innovation

—Limited access to markets

—Limited access to local markets

LA

ND

& A

GR

ICU

LT

UR

E


New Farming Systems

Low-volume, uncoordinated supply chains

$

$

$

Less than truckloads

$

Market

High trans-action costs

Farm

Farm

Farm Farm

$

Farm

Farm

Farm Farm

Marke

t

Full truckload

Cooperation

Reduced transaction costs

Higher-volume, integrated supply chain

Provide cost-effective logistical services to small

farmers

LA

ND

& A

GR

ICU

LT

UR

E


LA

ND

& A

GR

ICU

LT

UR

E


Key institutional drivers

Cabinet Cluster NIFAL Integrated Provincial Political Structures DLA-DoA EXCO DLA-DoA Functional Management Committee National Project Team Provincial Project Teams District Project Teams Farmers and agribusinesses Service providers Beneficiaries

LA

ND

& A

GR

ICU

LT

UR

E


Monitoring & Evaluation

Single management information system for tracking beneficiaries and projects

Serves decision-making, disbursement, financial control, and M&E

Web-based Starts with first beneficiary contact, and follows both

beneficiaries and projects Put in place M&E immediately to be able to evaluate the

impact so that we can, in the future:— Redirect in terms of beneficiaries and particular projects

Documents

REPUBLIC OF SOUTH AFRICA LAND & AGRARIAN REFORM PROGRAMME PARLIAMENT CAPE TOWN 16 OCTOBER 2007 SELECT COMMITTEE ON FINANCE, PUBLIC SERVICES AND LAND AND