1. 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.

3. WITZENBERG AREA

4. 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, Municipal economic review and outlook. Cape Town, Provincial Treasury. The data originate from Quantec Research’s Regional data base.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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

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

12. 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

13. 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

14. 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

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

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

17. 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

18. 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