1. 2014-2015 Annual Report of the Department of Rural Development and Land Reform Presentation to the Portfolio Committee on Development and Land Reform 14 October 2015

2. Presentation Outline: Non-Financial Performance 2014/15 Financial Year Introduction and Mandate The role of the department in assisting the Ingonyama Trust Board Organisational concerns and options Performance of the department – Departmental performance in years 2009/10 – 2014/15 – Programme 1 : Administration – Programme 2 : Geospatial and Cadastral Services – Programme 3 : Rural Development – Programme 4 : Restitution – Programme 5 : Land Reform Employment equity Capital projects implemented in 2014/15 and costs 2

3. INTRODUCTION Manifesto 2009NDPMTSF Rural DevelopmentImproved land adminImproved admin Land ReformImprove food securityImproved food security, Sustainable land reform Agrarian changeSmall holder farmer development Small holder producers development Descent work and sustainable livelihoods Access to quality basic services Increased access to basic services Education, Crime, HealthGrowth of sustainable rural enterprises Growth of sustainable rural enterprise 3

4. MANDATE OF THE DEPARTMENT  Rural Development:-  Improving both economic and Social infrastructure in rural South Africa.  Land Reform:-  Restitution, Redistribution and Land tenure.  Agrarian Change:-  Driving social transformation and Increasing agricultural production in rural areas. 4

5. LEGISLATION, POLICIES AND INSTITUTIONS  LEGISLATIONS The department has thusfar developed/amended and/or proposed key pieces of legislation.  SECTIONAL TITLES AMENDMENT ACT, 2010 (Act 11 of 2010)  RURAL DEVELOPMENT AND LAND REFORM GENERAL AMENDEMENT ACT, 2011 (Act 4 of 2011)  GEOMTATICS PROFESSIONS ACT, 2013 (Act 19 of 2013)  SPATIAL PLANNING AND LAND USE MANAGEMENT ACT, 2013 (Act 16 OF 2013)  PROPERTY VALUATION ACT, 2014 ( Act 17 of 2014)  RESTITUTION OF LAND RIGHTS AMENDMENT ACT, (Act 15 of 2014)  EXTENSION OF SECURITY OF TENURE AMENDMENT BILL, 2013  DEEDS REGISTRIES AMENDMENT ACT, 2013 (Act 34 of 2013) POLICIES Various policies were developed and approved internally by Minister:  Rural Development Framework Policy, 2013  Land Tenure Security Policy for Commercial Farming Areas, 2013  Recapitalization and Development Programme Policy, 2013  State Land Lease and Disposal Policy, 2013  Agricultural Landholding Policy Framework, 2013  The Green Paper on Land Reform, 2012 INSTITUTIONS  Land Commission, Land Rights Management Board and Office of the Valuer-General. 5

6. Entity reporting to the Minister Ingonyama Trust Board [ITB] The relationship with the ITB is governed through legislation and this is complimented in various by assisting the Trust in the following areas:  Policy development.  The development and compilation of Strategic Plans, Annual Performance Plans, Operational Plans and Annual Reports.  Funding to augment it’s budget to assist it to achieve its strategic objectives, with an emphasis on land administration. 6

7. Non-Financial Performance of the Department 7

8. 8

9. Programme 01 : Administration Provides strategic and logistical support in the form of;  Executive support services;  Corporate support services;  Financial services; and  Corporate governance; 9

10. Programme 1: Administration Strategic Objective : Ensure 100% compliance with government regulations and legal prescripts by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) % of allocated budget spent 99.9%100%99.9% The variance is due to; -vacant positions not filled timeously; -some projects which did not progress as envisaged; % of valid invoices paid within 30 days upon receipt by supply chain management 91%100%92%The variance is due to; -invoice discrepancies; -Tax Clearance Certificates that have expired; -ex-post facto invoices; 10

11. Programme 1: Administration Strategic objective : Obtain an unqualified regularity opinion on financial and non-financial performance by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Unqualified financial statements New Indicator Unqualified audit without findings on financial statements Partially Achieved. The Department achieved an unqualified audit opinion with findings. The variance is due to some of the systems, controls and policies taking longer to finalise due to development processes and consultations. % of external audit findings resolved 92%100%92% The process to approve policies in some branches took longer than anticipated. There were also delays in the process of sourcing service providers. 11

12. Programme 1: Administration Strategic Objective : Improve employees’ and prospective employees skills to enhance service delivery by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) DRDLR Human Resource Development Strategy approved New Indicator DRDLR Human Resource Development Strategy developed Partially Achieved. Draft strategy was finalised pending approval Consultation process took longer than anticipated. Number of people trained in Geomatics 656061 The project has been a significant contributor in addressing the shortage of skilled black professionals in this field. 12

13. Programme 02 : Geospatial and Cadastral Services The purpose of Geospatial and Cadastral Services programme is to provide geospatial information, cadastral surveys, deeds registration, spatial planning and information as well as technical services in support of sustainable land development. 13

14. Programme 2 : Geospatial and Cadastral Services Strategic Objective : Facilitate integrated spatial planning and land use management in all provinces through the application of relevant legislation by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) National Spatial Development Framework (NSDF) developed and Implemented New Indicator Approved research report and consultation on NSDF Partially Achieved. Draft Research report available and consultation on NSDF Research Report conducted in various provinces The partial achievement was due to the consultation process which took longer than anticipated % of municipalities supported to implement the Spatial Planning and Land Use Management Act (SPLUMA) New Indicator 60%: SDFs 61% (170 municipalities supported) The over-achievement was due to Municipalities that were eager to have compliant SDFs as it’s a requirement in terms of the Integrated Development Plan (IDP) and the SPLUMA, which came into effect on 01 July 2015. 14

15. Programme 2 : Geospatial and Cadastral Services Strategic Objective: Strategic Objective : Facilitate integrated spatial planning and land use management in all provinces through the application of relevant legislation by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) % of municipalities supported to implement the Spatial Planning and Land Use Management Act (SPLUMA) New Indicator 20% Land Use Schemes 31% (86 Municipalities supported) The over-achievement was due to Municipalities that were eager to be compliant with the requirements in terms of SPLUMA, which came into effect on 01 July 2015. New Indicator 80%: Functional Land Use Regulator 0% (0 municipalities supported). The achievement was dependent on the finalisation of the land use regulations. The regulations were published on 23 March 2015 and Provincial Offices are now facilitating the establishment of Land Use Regulators in all municipalities. Number of provinces supported to develop Provincial SDFs New Indicator4 4 provinces (NC, FS, NW, LIM) None 15

16. Programme 2 : Geospatial and Cadastral Services Strategic Objective :Ensure an integrated and comprehensive land administration system Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of State Domestic Facilities (SDFs) surveyed New Indicator1 500 1 669 The over-achievement was due to the implementation of a turn-around strategy to catch up with the backlog in the surveying of SDF’s. Number of deeds and documents registered New indicator 953 424 961 518 The over-achievement was due a higher number of documents received than anticipated. Number of maps of the national map series produced New Indicator1 688 1 800 The achievement of the indicator is dependent the amount of detail in the area being mapped. The lesser the detail, e.g. the Karoo, the quicker the production and thus more maps can be produced in a short space of time. 16

17. Programme 03: Rural Development Purpose of this Programme is to initiate, facilitate, coordinate and act as a catalyst for the implementation of the Comprehensive Rural Development Programme(CRDP) that leads to sustainable and vibrant communities. The programme covers rural infrastructure and enterprise development, skills and youth development 17

18. Programme 3: Rural Development Strategic Objective : Provide support to rural communities in all districts to improve their livelihoods Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Rural Livelihoods Strategy approved New Indicator Rural Livelihoods Strategy approved Partially achieved.A draft concept document and draft strategy was done The draft Enterprise and Industrial Development policy was adopted by Senior Manangement with the proviso that it be further consulted with DAFF after which a final draft be presented by both departments for consideration in order to avoid duplication and overlapping. Norms and standards for access to rural services developed New Indicator Norms and standards for access to rural services developed Partially achieved. Draft norms and standards have been finalised. The partial-achievement was due to the consultation process which took longer than anticipated Rural Development Strategy and Systems developed and implemented New Indicator Rural Development Strategy and systems developed and approved Not achieved The target was not achieved due to the consultation process taking longer than anticipated 18

19. Programme 3: Rural Development Strategic Objective : Improve access to services in rural areas by coordinating and providing integrated infrastructure by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of socio- economic infrastructure Projects coordinated and facilitated 109114123 The achievement was slightly higher due to some ICT projects that were scheduled for completion in 2015/16 being finalised in 2014/15. Number of Households supported with basic services infrastructure 47580008087 In collaboration with the Independent Development Trust more projects could be completed. Number of projects implemented in support of the River Valley Catalystic Programme New Indicator1431 The over-achievement was due tomore irrigation schems being commisioned in KZN and EC. A number of goverments 27 Priority Districts also fall within these two province. 19

20. Programme 3: Rural Development Strategic Objective : Improve access to services in rural areas by coordinating and providing integrated infrastructure by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of Animal and Veld Management Programme projects implemented 281200208 A few more projects than planned were commissioned in KZN. Strategic Objective : Facilitate the development of rural enterprises in areas with economic development potential and opportunities by 2019 Rural Enterprises and Industrial Development Strategy Implemented New Indicator Rural Enterprises and Industrial Development Strategy developed Not achieved The non-achievement was due to prolonged consultation with other stakeholders Number of enterprises supported in rural development initiatives(agriculture and other sectors) by government stakeholders 433210442 The over-achievement was due to: -The registration of more co-operatives than planned; -ASNAPP SLA projects delivered on large scale 20

21. Programme 3: Rural Development Strategic Objective : Increase job opportunities and ensure skills development through CRDP and land reform initiatives by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of skills development opportunities provided to support rural initiatives 63024200 9509 The over-achievement was due to; -increased demand for more community members to be trained in Fire Fighting Skills; -training provided raising awareness and interest in communities; Number of youth skilled in rural development initiatives 127350002822 The target was under-achieved due to problems linked to the SETA registration and uploading process which resulted in 2000 certificates not being issued to confirm completion of the training by the youth during the year under review. Number of jobs created in rural development initiatives 50444 0004916 The target was over achieved due to more budget allocated to employment opportunities for community members 21

22. Programme 3: Rural Development Strategic Objective : Increase job opportunities and ensure skills development through CRDP and land reform initiatives by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Mega cooperative established to facilitate support to NARYSEC Youth New Indicator Mega cooperative established to facilitate support Not achieved The Mega cooperative was not achieved due to the requirements of the amended Cooperatives Act(Act 6 of 2013). The new requirement stipulates a minimum of two operational secondary cooperatives before a tertiary cooperative can be considered. Number of youth skilled through the National Rural Youth Service Corps programme 5 8814 6001273 The variance is attributed to the fact that multiple skills training opportunities provided to individual youth were regarded as one achievement. Number of rural enterprises supported New Indicator90433 The initial target was based on projects with monetary value (budget). During implementation this year, it became clear that enterprise support goes beyond monetary value and many cooperatives were assisted with registration, and other facilitation functions. 22

23. Programme 04 : Restitution The Restitution Programme exists to facilitate the settlement of claims, and provide restitution or equitable forms of redress to victims of racially motivated land dispossession, in line with the provisions of the Restitution of Land Rights Act, 1994( Act No.22 of 1994), as amended. 23

24. Programme 4: Restitution Strategic Objective : Facilitate the restoration of land rights and alternative forms of equitable redress by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of land claims settled 270379428 The target was exceeded because the focus was on settling financial compensation claims with a claim count which could contribute towards the settled claims target e.g. Kraaibosch (WC) settled 30 claims; District Six (WC) settled 15 claims; New Pietersburg (LP) settled 10 claims; Ramputas Individual Claimants (LP) settled 8 claims; St Francis Xavier Community (KZN) settled 6 claims. Number of claims finalised 292239372The target was exceeded because of the regional teams that were put in place to clean up the backlog on Commitments. Systems were also put in place to ensure alignment where claims are settled and finalised in the same financial year, e.g. 53 of the finalised claims were settled in the 2014/15 financial year. 24

25. Programme 4: Restitution Strategic Objective : Facilitate the restoration of land rights and alternative forms of equitable redress by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of phased projects approved New Indicator 53 119 Additional funding was made available during the third and fourth quarter which allowed for ; -claims which were in the pipeline to be processed for the 2015/16 financial year to be moved forward for settlement and payment; An increasein the number of sittings of the Quality Control Committee. Number of claims lodged by 1998 to be researched New Indicator 1 445 1 516 The achievement was due to: -An intervention plan implemented in February 2015 to make-up the shortfall of 639 researched claims in terms of the annual target; -The operational staff from the regional offices being tasked to prioritise the claims for research which assisted with the cleaning out of the annual backlog. 25

26. Programme 4: Restitution Strategic Objective : Facilitate the reopening and finalisation of the lodgement of restitution land claims people who did not meet the 1998 deadline Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of lodgement offices Functional New Indicator 14 Lodgement offices opened and functional 14 Lodgement offices opened and functional None 26

27. Programme 05 Land Reform The purpose of this programme is to promote equitable land redistribution and provide support to small holder farmers. It also ensures the establishment of institutional arrangements for tenure security and land administration 27

28. Programme 5: Land Reform Strategic Objective : Promote equitable land redistribution and agricultural development by acquiring hectares of strategically located land by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of hectares acquired and allocated 153 586ha390 000ha354 802ha The under-achievement was due to farms being withdrawn by the sellers and no longer being available for purchase. Office of the Valuer- General (OVG) established New indicator 50%87% The target was exceeded due to interventions put in place to expedite the process to establish the office. 28

29. Programme 5: Land Reform Strategic Objective : Provide comprehensive farm development support to smallholder farmers and land reform beneficiaries for agrarian transformation by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of land reform farms recapitalised and developed 323303217 Non-achievement of this target was due to the complexities and control mechansms put in place during the application approval processwhich resulted in these taking longer than planned. Number of jobs created in land reform projects (RADP) 2 4849091 925 The over-achievement was due to seasonal work (specifically for harvesting) resulting in a number of employees being appointed to assist during this season. Number of farm personnel trained through the RADP programme 1 262909440 Poor performance on this indicator was due to most of the employment opportunities experienced in the year which did not necessitate training since it was general work; planting, harvesting, etc. 29

30. Programme 5: Land Reform Strategic Objective : Functional systems and institutional arrangements for tenure and land administration to enable agrarian reform in all provinces by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of Communal Property Associations compliant with legislation New indicator 1800 The non-achievement was due to; -lack of capacity dedicated specifically to CPAs both at National and Provincial level; -Some CPAs not owning land or having lost land; -New policy developments within the department; Number of labour tenants applications settled 981300 The non-achievement was due to; -new policy developments within the department viz:. Circular 1 of 2010. -There being no dedicated budget to deal with Labour Tenants applications. Number of land parcels transferred under TRANCRAA (Transformation of Certain Rural Areas Act) New indicator 406 Non-achievement was due to the following reasons: -Community dynamics & disputes; -Complex verification of beneficiaries and land rights enquires; -Some communities demanding development before transfer. 30

31. Programme 5: Land Reform Strategic Objective : Functional systems and institutional arrangements for tenure and land administration to enable agrarian reform in all provinces by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of State Land parcels confirmed as vested 8631 7871 646 The under-achievement was due to technical uncertainty affecting a holiday resort, registered as Die Bron Vakansiedorp which was regarded as one parcel of land by the DEEDS office whilst the unit regarded it as more than one. % Complete Immovable Asset Register New Indicator 100% None 31

32. Employment Equity 32

33. Workforce Profile (Persons with disabilities included) RACE GENDER FMTotal%Target VARIANCE African2406231447208175%+6% Coloured226155381711%-4% Indian725012223%-1% White3602155751011%-1% Total306427345798 33

34. Persons with disabilities RACE GENDER FMTotal%Target VARIANCE African26315756%75%-19% Coloured4599%11%-2% Indian1344%3%+1% White15163131%11%+20% Total4655101 34

35. Persons with disabilities as a percentage of total workforce RACE TotalGrand Total%Target VARIANCE African57472012% Coloured738122%0 Indian412232%+1 White3157552%+3 Total101579822% THE MINIMUM TARGET OF 2% REACHED 35

36. Employment Equity (EE) Way forward A new five year EE plan (2014-2019) has been developed and consulted with all relevant stakeholders with the aim of ensuring equitable representation of all race groups within the Department. Human Resources has been tasked to develop specific interventions to attract and retain PWD’s and Woman; Branches have been directed to comply with the 50/50 gender split in Senior Management; 36

37. Organizational concerns and options 37

38. Organizational concerns and future Plans CAPACITY CONSTRAINTS The ability to attract and retain employees with the requisite skills and competencies is negatively influenced by the push and pull effects of the labour market, as the country develops. As such the Department has embarked on a number of projects to mitigate this;  An analysis of the organisational structure to determine alignment to the Department’s strategic and service delivery mandates;  Improved diversity management project make employees voices heard and to ascertain how they are experiencing diversity issues;  Skills Audit in order to develop a talent pipeline to ensure the department has the right people, with the right skills executing its mandate;  Consistent efforts to reduce the vacancy rate ; SOCIAL TRANSFORMATION CONCERNS  The implementation of a single system for spatial planning and land use management to replace the complex, disjointed and discriminatory spatial planning and land use management system. As a response various milestones set for spatial transformation including the 70% of municipalities supported to implement the SPLUMA 38

39. Organizational concerns and future plans cont…. REVITALISATION OF THE RURAL ECONOMY In making land reform work – land reform is necessary to unlock the potential for a dynamic, growing and employment-creating-agricultural sector. Enable a more rapid transfer of agricultural land to black beneficiaries without distorting land markets or business confidence in the agri-business sector is required. To assit in this process a number of initiaitves are being initiated and/or explored;  Establishment of the Office of the Valuer-General (OVG)  50/50  Stregthening the Realtive Rights Policy Framework  AVMP  RVCP  District Land Reform Committees  Agri-Parks 39

40. Capital projects 40

41. The following is a list of capital projects implemented by the Department in the year 2014/15 with costs ProvinceNumber of projects 2014/15 Total cost of projects Eastern Cape107R73 021 587.30 Free State28R10 732 573.74 Gauteng62R20 525 567.86 Kwa-Zulu Natal151R85 812 644.83 Limpopo83R42 731 176.27 Mpumalanga111R69 219 500.43 Northern Cape08R 4 637 573.87 North West43R25 584 102.82 Western Cape86R65 785 759.57 Total679R398 050 486.69 41

42. Thank you 42