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

2. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA 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

3. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA 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

4. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA 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

5. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA Goals, Strategies & Objectives Job Creation 6 million Economic Growth 6% Poverty Eradication 50% Sustainable Agricultural Resource Use Profitability & Competitiveness Access & Participation Good Governance Objectives Strategies Goals Agribusines s Services Productio n Land Reform Exports

6. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA 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

7. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA

8. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA

9. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA Product Portfolio 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 with  Fix the basics: rules & regulations  Foster greater & fair market access  Promote competition & efficiency  Mobilise & organise black farmers  Provide infrastructure Primary Agricultu ral activity Processi ng Packagin g / Addition al Value add HORTICULTURE Primary Agricultu ral activity Processi ng Packagin g / Addition al Value add LIVESTOCK Primary Agricultu ral activity Processi ng Packagin g / Addition al Value add ORNAMENTAL P ri m a r y A g ri c u lt u r e P ri m a r y A g ri c u lt u r e Proces sing Packagi ng / Additio nal Value add GRAINS Primary Agricultur e Primary Agricultur e Processi ng Packaging / Value add Packaging / Value add INDUSTRIAL Foundation Total Value Chain

10. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA

11. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA

12. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA

13. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA Sector needs  Supply-Side  Demand-Side  Business 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 1 st economy farmers 2 nd 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

14. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA New Farming Systems Low-volume, uncoordinated supply chains $$$ Less than truckloads $ Market High trans-action costs Farm $ Marke t Full truckload Cooperation Reduced transaction costs Higher-volume, integrated supply chain Provide cost- effective logistical services to small farmers

15. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA

16. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA 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

17. LAND & AGRICULTURE REPUBLIC OF SOUTH AFRICA 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