PARTNERSHIPS IN AGRI LAND SOLUTIONS WITZENBERG PALS PARTNERSHIPS IN AGRI LAND SOLUTIONS An initiative for successful land reform, economic growth, job creation and social cohesion.

WITZENBERG AREA

Table 1: Employment amongst household heads in Witzenberg, 2010 SOCIO-ECONOMICS Figure 1: Cumulative percentages by level of education for the urban and non-urban population, 2010 Table 1: Employment amongst household heads in Witzenberg, 2010   Non-urban % Urban Total Employed 9806 86.99 10007 62.07 19813 72.32 Unemployed 82 0.73 982 6.09 1064 3.88 Discouraged work-seeker 9 0.08 220 1.36 229 0.84 Not economically active 1376 12.21 4914 30.48 6290 22.96 11273 100.00 16123 27396 Data were sourced largely from: Western Cape Government, 2013. Municipal economic review and outlook. Cape Town, Provincial Treasury. The data originate from Quantec Research’s Regional data base.

WITZENBERG PALS: GOALS The establishment of successful black farmers; To involve the whole community in an inclusive process; To extend the initiative to other areas and agri related industries; To establish the Witzenberg Centre as “one stop shop”; Focus on mentorships and training programmes.

THE WITZENBERG PROPOSAL FOR A VIBRANT, EQUITABLE AND SUSTAINABLE RURAL COMMUNITY 50 plus new farming units in Witzenberg with black commercial farmers of these units. Strategy to make existing black farmers successful. Current LRAD projects improved or restructured. Projects with livestock in the Ceres Karoo. Training College for future black farmers. Access to value chain prioritized. Housing projects for farmworkers.

THE WITZENBERG PROPOSAL (continued) 8. Community projects. 9. Municipal livestock farms. Educational projects – schools, crèches, after-care Economic growth - packhouses, tourism, manufacturing. Vuka Trust Ceres Community Trust. Best practices regarding housing, facilities, labour relations and a sustainable healthy environment.

PALS FRAMEWORK A radical departure from past land reform in South Africa: Participant commercial farmers donate 30% of the shares in the project to the beneficiary farmer(s) to ensure that the latter have a veto over all major decisions. The relationship between the beneficiary and the partner farmer gives the former better access to finance, and guarantees access to markets. The beneficiaries have an option to purchase all the shares.

PALS FRAMEWORK (continue) The Workers Trust receives at least 5% of profits for community projects of their choice. The beneficiary farmer is indemnified from debts of the new venture while a minority shareholder. The “one stop shop” provides a physical location where the coordination, facilitation and mentoring functions can be implemented.

WITZENBERG PALS (NPC) CENTRE Board of Directors and Managing Director. Members: Agri-Producers, Municipality, Stakeholders and Government Depts. Employees: Researchers, Administrators, Consultants, Secretarial CENTRE PROJECTS Planning & Drafting Approvals Implementation PUBLIC RELATIONS AND MEDIA Government Departments Community WATER Permits Irrigation schemes MONITORING WATCHDOG (Reports and financial statements) Compliance TRAINING AND SUPPORT Youth Mentors College FINANCE Joint impact POTENTIAL BLACK FARMERS Screening Monitor Applications Involve Government and stakeholders COMMUNITY Housing Training Youth Jobs

PALS FOR SUCCESS 4 SCENARIO’S Private Commercial Land. Privately Black owned land Government owned land (PLAS or other) LRAD schemes on private land.

PALS SCENARIO 1 NEW FARM (PTY) LTD New privately purchased farm or sub-divided economic unit (Act 126/1993) OPTION ON DAY 1 TO BLACK FARMERS TO ACQUIRE MAJORITY SHAREHOLDING Commercial Farmer (Pty) Ltd Black Farmer (Pty) Ltd OPTION For majority to Black Farmer (Pty) Ltd Initially majority but less than 50% when successful Initially 30% - 50% but later majority or all the shares NEW FARM (PTY) LTD AGREEMENTS of Commercial Farmer Access to value chain Mentoring Finances Business Plan WORKERSTRUST Permanent employees to receive % of profit for projects

PALS SCENARIO 2 & 3 PRIVATELY BLACK OWNED LAND Commercial Farmer Black Farmer 30% 70% NEW FARM (PTY) LTD Company can own or lease and farm black owned land Lease Agreement or Management Agreement Black owned Land Or Government owned Land

PALS SCENARIO 4 LRAD SCHEMES OPTION 1: Subdivide farm or farms or purchase new farm and re-structure to PALS with option for black farmers and pay out beneficiaries plus give new Workerstrust shareholding. OPTION 2: Set up New Company for black farmers and assist with finance application to purchase shares of Workerstrust. Pay out beneficiaries and grant option to black farmer as per PALS structure. Workerstrust Commercial Farmer EXISTING OPERATIONS COMPANY AND LAND OWNER

ORGANIZATIONAL SUCCESS Framework Legal Agreements: Option Financial Shareholder Sale of Shares Mentorship Lease and Management Good Corporate Governance Directors PALS Centre Watchdog Committee

PERSONAL SUCCESS Mentorship Partnerships Training Leadership Hard Work PALS Centre Kouebokkeveld Training Centre Commercial Farmer Vuka Trust Leadership Hard Work

PALS THE BETTER ALTERNATIVE Further 25 projects identified for implementation in 2015. Job creation Investment Growth New Black Farmers Optimal use of capital of white farmers Optimal use of state’s capital Optimal use of external finance Resources – new resources developed International competitiveness Food security

SUCCESS STARTS WITH OUR WAY OF THINKING As Nelson Mandela said in his inaugural speech in 1994: “Our greatest fear is not that we are inadequate. Our greatest fear is that we are powerful beyond measure.” Witzenberg PALS has only one agenda and that is to inspire the community of Witzenberg to work together and give hope to our country. Inspire our country. Thank you Izak Strauss Witzenberg PALS