1. Department of Small Business Development
BRIEFING TO THE PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT
Briefing on the progress on the implementation plan on
12 Abalimi cooperatives
31 May 2017

2. Presentation outline Purpose
Districts location of 12 Abalimi Cooperatives
Remedial Action Plan: DSBD Commitment
Progress and Achievements
Way forward 1 2 3 4 5

3. Purpose
To account to the Portfolio Committee on the progress made in relation to the Remedial Action Plan formulated and presented by DSBD to the Portfolio Committee on the 07th of December 2016.
To provide the second progress report proceeding from the first progress report provided to the Committee on the 8 of March 2017 in relation to the Aligning the Support Services to the model of developing 12 Abalimi Agricultural Cooperatives pilot in KZN.
During November 2015 DSBD approved funding to support the 12 Abalimi Cooperatives located in KZN across 4 district municipalities and 1 metro.

4. Purpose, cont.
In 30 November 2016, DSBD provided progress report on the 12 Abalimi Agricultural Cooperatives project to the Portfolio Committee on Small Business Development. The report acknowledge that there were some shortcoming on the project requiring sorting out.
During the same period, DSBD presented the Remedial Action to the Portfolio Committee on Small Business Development, which was endorsed by the Portfolio Committee on Small Business Development.

5. District Location of 12 Abalimi Cooperatives in KZN
Farmline Food Coop
House of Glory Coop
Yahweh Shamaah Coop
Insabalele Primary Coop
Sinothando primary Coops
Green Farmer Primary Coop
Intombikabhayi Primary Coops Kwa - Xolo Fresh Produce Coop
Eshilo Women Primary Coop
Ulimo 12 Primary Cooperative
Ncebazakhe Women Coop
Selulele Primary Coop

6. Remedial Action plan – dsbd commitmentsNo
Tasks
Implementation date
Status of the task 1.
Appoint a Project Manager for the Abalimi Agricultural Cooperatives project to manage and ensure coordination of the implementation of the project
31 December 2016
Project manager appointed during January 2017 2.
Write letters to relevant Municipalities (MMs) to introduce Abalimi Agricultural Cooperatives
10 Feb 2017
Letters written to all districts introducing Abalimi during February 2017 3.
Develop Implementation Plan for each of the Steering Committee
29 April 2017
Each District Steering Committee has formulated an action plan 4.
Ensure that Abalimi are integrated into the IDP of municipalities to invoke support from other Stakeholders
31 March 2017
All districts agreed. Confirmation on integrating Abalimi to the IDP’s have been received from ILembe and Ugu Districts 5
Harmonize the working relationship between Kohwa and DSBD on the rollout of Abalimi project
Letter to deviate from CIS guideline will make it possible to harmonize relations btw. Kohwa and DSBD for the provision of technical support

7. Assessment of the needs of the cooperatives have been undertaken
Remedial Action plan – dsbd commitments, cont. No
Tasks
Implementation date
Status of the task 6.
Establishment of Abalimi Steering Committee in each of the Municipalities
31 Jan 2017
Steering Committee established in all District Municipalities during consultation meetings 7.
Seek approval from National Treasury to shift CIS funds towards investment in advancing a model which will promote the sustainability of funded cooperatives
31 March 2017
Deviation Letter requesting Minister’s consideration is with the Minister.
Clustering Coops – R11m
Individual Coop – R 500k
Technical assistance – R250k coupled with SEDA funding 8.
Determine the exact business needs by undertaking due diligence to inform funding
Assessment of the needs of the cooperatives have been undertaken 9.
Unlock and provide working capital informed by the due diligence
Once the CIS deviation has been approved by the Minister it will be possible to fund the working capital for cooperatives

8. Concept document for Abalimi finalised and approved
Remedial Action plan – dsbd commitments, cont.
No.
Tasks
Implementation date
Status of the Task
10.
Sign Transversal Agreements coupled with Implementation Plans with Municipalities
31 March 2017
3 Municipalities still consulting on transversal agreements. Two agreements received from Ugu & ILembe Districts for DSBD signature.
11.
Develop concept document to be approved & supported by the relevant National & Provincial Departments
Concept document for Abalimi finalised and approved
12.
SEDA has received official request from DSBD to provide Management and technical training and access to market to Abalimi
30 April 2017
SEDA KZN committed to kick start training on management and provide agricultural technical support during the first week of June 2017
13.
Work with municipality to popularize the project by launching the project during harvest period
31 August 2017
Still pending

9. Progress and achievements
All districts have agreed to integrate Abalimi to the IDPs;
Two districts (i.e. ILembe and Ugu ) have confirmed integrating Abalimi to their IDPs. Remaining three still consulting with council chamber;
All five municipalities have agreed to sign transversal agreements;
Only two (i.e. ILembe and Ugu ) have confirmed signing the transversal agreements which is awaiting signature by DSBD;
Letter requesting deviation from CIS guideline is before the Minister awaiting approval:
Deviation entail – Cluster coops: R11m.
Individual Coop: R500k
Technical Support: R250K coupled with SEDA funding support
SEDA Harry Gwala reported to have purchased work suites, provided bill board and printed business cards for cooperatives in the district.

10. Progress and achievements. Cont.…
Seda has been officially requested by DSBD to provide training (cooperative governance and management) and technical support. A letter to this effect was sent to SEDA on 31st of March 2017.
SEDA has undertaken to kick start training on cooperative governance on the 1st week of June 2017.
The training will be delivered by the Coastal College through a partnership with the provincial Department of Economic Development
Seda had designed a new training manual focusing on Finance for Cooperatives, which would be rolled out to all Abalimi cooperatives
To address Seda had recruited four Agriculturalists to provide technical training to the cooperatives in the KZN province
SEDA has just completed its own internal assessment of Abalimi and is ready to provide the requisite intervention;

11. Way Forward
Once deviation letter has been approved by the Minister of Small Business Development the following will be immediately executed:
Funding the outstanding needs of the cooperatives using a secondary cooperative structure;
Technical support will be provided through SEDA and Kohwa;
DSBD, SEDA in partnership with Kohwa will secure uptake agreements with retail stores for all cooperatives;
Remaining transversal agreements will be signed with all districts;
Ensure closer participation of district municipalities in the rollout of support to the cooperatives. As such the DG visited on 26 May and a project plan for the cooperation agreement has been agreed to.
Seda to complete provision of training and technical support
Launch the project during the harvest period

12. “
THANK YOU.