1. INGONYAMA TRUST BOARD A Schedule 3A Public Entity In terms of the Public Finance Management Act Strategic Plan 2007/2008 and Budget 2007/2008

2. FACTS AND FIGURES Land owned by the Board - 2,700,000 hectares. Number of titles: 1491. Land held in almost all 61 municipal areas. Population living on Trust land estimated at 4,558,698. 241 Traditional Councils/Authorities have jurisdiction on Trust land. Trust set up by Ingonyama Trust Act No 3 of 1994 as amended.

3. STRATEGIC PLAN AND BUDGET 2007/2008 The strategic plan has been prepared in conjunction with the Budget in order to achieve the Board’s vision and mission. The strategic plan focuses on the issues that need to be resolved over the next five years and has regard to Government priorities such as poverty alleviation, provision of housing and infrastructure and Black Empowerment. In particular the implementation of the Communal Land Rights Act and challenges faced by the Board because of changes in other legislation such as the Mineral and Petroleum Resources Development Act have informed the content of this Strategic Plan. The strategic issues raised in the Strategic Plan will facilitate achieving the objective of optimal land usage for the material benefit and social well being of the communities living on Ingonyama Trust land. The Ingonyama Trust legislation has created a unique instrument of land management providing both support to the communities on communal land and an executive agency available to the Minister in the context of “real estate” management. Commercial activities must benefit the local communities and the contracts entered into with the commercial sector (and indeed the official sector) contain provisions which require that benefits flow to the affected local communities. The main efforts of the Ingonyama Trust Board are geared to that end. The emphasis for the strategic plan is therefore “land management” and the direct and indirect benefits flowing to communities therefrom.

4. The total budget requirement for the year 2007/2008 is R18,219,210 which Includes voted funds of R2,351,000. The following slides highlight the major targets.

5. TARGET PERSPECTIVE OUTCOMEOUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 2011/ 2012 This strategic objective will result in the optimum usage of land for the benefit of communities and other parties including the State and municipalities and will also prepare for the implementation of the Communal Land Rights Act (CLRA). 1. Updated Land Tenure Information system. Number of transactions to be recorded. 3000500 BUDGETR100,000R50,000

6. OUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 2011/ 2012 4. Facilitate the transfer of state domestic properties. Number of state domestic properties to be identified. 500 BUDGETNO COST TO ITB

7. OUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 3. Facilitate the transfer of KwaZulu towns to local authorities To facilitate the number of towns to be transferred. 65 BUDGETNO COST TO ITB

8. REM OF RESERVE NO. 22 in extent 110,000 hectares

10. LEASES

11. REM OF RESERVE NO. 22 in extent 110,000 hectares LEASES PERMISSIONS TO OCCUPY

12. REM OF RESERVE NO. 22 in extent 110,000 hectares LEASES PERMISSIONS TO OCCUPY STATE DOMESTIC

13. REM OF RESERVE NO. 22 in extent 110,000 hectares LEASES PERMISSIONS TO OCCUPY STATE DOMESTIC SERVITUDES

14. REM OF RESERVE NO. 22 in extent 110,000 hectares LEASES PERMISSIONS TO OCCUPY STATE DOMESTIC SERVITUDES LAND AVAILABILITY AGREEMENTS

15. REM OF RESERVE NO. 22 in extent 110,000 hectares LEASES PERMISSIONS TO OCCUPY STATE DOMESTIC SERVITUDES LAND AVAILABILITY AGREEMENTS INDIGENOUS TITLES

16. REM OF RESERVE NO. 22 in extent 110,000 hectares LEASES PERMISSIONS TO OCCUPY STATE DOMESTIC SERVITUDES LAND AVAILABILITY AGREEMENTS INDIGENOUS TITLES MINING RIGHTS

17. OUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 2011/ 2012 Allocation of land for housing infrastructure. The percentage of applications received to be concluded. 80% BUDGETR50, 000R52, 500R55,1525R57,881R60,775 In order to support the provincial Department of Housing’s rural Housing Policy the Board has developed a standard Development Rights Agreement which is entered into with various Local Municipalities. This enables housing projects on Trust land to be fast-tracked subject to the consent of relevant Traditional or Community Councils. So far consent in principle has been given in respect of 70 such schemes on Trust land and 20 Development Rights Agreements have been signed, which provide some 40,000 upgraded housing units.

18. TARGET PERSPECTIVE OUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 2011/ 2012 Land identification on the outskirts of townships. Service providers to be appointed and land to be identified. 4 Towns3Towns--- BUDGETR300, 000R315, 500R330,750R347,288R364, 652 Some of the former R293 townships have informally expanded onto surrounding Trust land. This has resulted in this land being vulnerable to squatting on the one hand but having potential development value on the other hand. The Board proposes to appoint a service provider to identify this land and advise on development potential. The towns identified for 2007/2008 are: Umlazi. KwaMashu Ezakheni. Osizweni. The budget figures for post 2008/2009 are for the implementation process and are also to include additional towns yet to be prioritised.

19. OUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 2011/ 2012 Monitoring of legislation impacting on land owned by ITB. Legislation studied and guidelines developed. Ongoing as new legislation comes into effect. BUDGETNO COST TO ITB Some 30 pieces of legislation impact on the workings and management of Trust land. These include Communal Land Rights Act, Traditional Leaders Framework Act, Municipal Property Rates Act and the Mineral and Petroleum Resources Act. This legislation is continuously monitored and guidelines prepared.

20. OUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 2011/ 2012 Ongoing co- operation with DLA in preparation for CLRA. Development guidelines for CLRA implementation. Ongoing --- BUDGET NO COST TO ITB The Act, once a commencement date has been announced, will re-constitute the Board as the Ingonyama Land Rights Board for KwaZulu Natal. The Board will continue to liaise with the Department of Land Affairs in connection with implementation and awaits publication of the draft regulations. This will enable the “mapping exercise “ previously commissioned by the Board to be completed and to identify the future role and functions of the Board and the various processes and work-flow which will be necessary to successfully implement CLRA in the Province.

21. TARGET PERSPECTIVE OUTCOMEOUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 2011/ 2012 Extension of security of tenure, registered leases, can be used as security for funding of development and unlock employment and equity opportunities. To maximise the mining potential on Trust Land for the benefit of communities including BEE/Joint ventures. Granting of leases (for non mining purposes including conversion of PTO’s into leases). Percentage of the number of leases to be processed. 75% BUDGETLEASE INCOME TO BE GENERATED (INCLUDING EXISTING LEASES). R997,825R1,047,716R1,100,102R1,155,107R1,212,863

22. OUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 2009/ 010 2010/ 2011 2011/ 2012 Granting of leases for mining purposes. Percentage of the number of mining leases to be processed. 75% BUDGETMINING/ROYALTY INCOME TO BE GENERATED INCLUDING EXISTING LEASES R7,360,165R7,728,173R8,114,581R8,520,311R8,946,326 The royalty income from 2010 is subject to the Minister of Mineral and Energy Affairs granting permission that royalties will still accrue to the Trust in terms of Schedule2, Section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002.

23. TARGET PERSPECTIVE OUTCOMEOUTPUT/ACTIVITYINDICATORS2007/ 2008 2008/ 2009 2009/ 2010 2010/ 2011 2011/2012 Maximising the financial benefit to communities from income of the Trust and unlocking related benefits and opportunities. Project-related payments which are for he material and social well being of the relevant communities and which meet appropriate accountability standards. The percentage of applications received by the Board. (This is a continuous process, approval may depend on the number of Traditional communities submitting project proposals). 80% BUDGETPORTION OF INCOME DERIVED BY THE TRUST TO BE DISTRIBUTED TO TRADITIONAL COMMUNITIES AT A 5% GROWTH PER ANNUM R14,272,147R14,985,755R15,735,043R16,521,795R17,347,885

24. Budget Summary -2007/2008 Total Trust Income 15,857,941.78 Less : 90% Portion to Traditional Authorities 14,272,147.60 Portion for Trust budget 1,585,794.18 Add : Transfer payment from the Department of Land Affairs 2,351,000.00 Budget for Board’s use R 3,936,794.18 THE BUDGET

25. Proposed INCOME 2007/2008 ITB Own Fund Income 15,857,941.78 PTO - General 277,770.15 PTO - Commercial 12,768.00 Leases 997,825.00 Royalties and Prospecting Income 7,360,165.05 Investment Income 7,138,246.68 Other Income / Servitude 71,166.90 Department of Land Affairs Funding 2,361,269.00 Transfer Payments - Current 2,351,000.00 Investment Income 10,269.00 TOTAL INCOME 18,219,210.78

26. 2007/2008 EXPENSES CITB Own Fund Expenditure 15,857,941.78 Advertisement and promotions 20,000.00 Legal fees 200,000.00 Bank charges 17,404.80 General expenses 6,197.38 Privatisation of State forests 30,000.00 Provision for doubtful debts 30,000.00 Payment to Traditional Authorities 14,272,147.60 Firebreaks, alien vegetation 100,000.00 Housing admin expenses 50,000.00 Capital expenditure 350,000.00 Staff Training 15,000.00 Salaries 75,000.00 Land reform projects -excluding "CLARA“ 300,000.00 Land Tenure Information system 100,000.00 Audit fees - external 182,192.00 Audit Fees - internal 110,000.00

27. DDepartmental Funding Expenditure 2,361,269.00 Board Members remuneration 252,000.00 Bank Charges 6,600.00 Travel,accommodation, meetings 315,000.00 Salaries 1,446,069.00 Internal audit committee members rem 12,000.00 Insurance 52,600.00 Stationery 24,000.00 Advertising 24,000.00 Crockery & cutlery 1,000.00 Motor vehicle expenses 15,000.00 Personnel agency fees 15,000.00 Computer software 6,000.00 Maintenance of the Asset register 10,000.00 Electricity and water 24,000.00 Rates - office accommodation 10,000.00 Security expenses 30,000.00 Telephone 48,000.00 Cleaning,repairs and maintenance 70,000.00 TOTAL EXPENDITURE18,219,210.78

28. SUMMARY AND CONCLUSIONS The Ingonyama Trust Board sees its role increasingly as real estate and land management orientated. To this extent the Ingonyama Trust seeks to strive as a model in real estate management in the country. The strategic plan and budget for 2007/2008 have been prepared in order to achieve the optimum usage of land for the benefit of communities and other parties including the state and municipalities and other parties. The benefits flowing to persons living on trust land will include:  Income from rents for commercial development.  Joint ventures/community participation in developments.  Employment opportunities.  Skills transfer.  Quality of life improved through:  Provision of Housing.  Provision of infrastructure and basic services.  The Budget for 2007/2008 totals R18,219,210.78 and is made up of:  ITB own fund income : R15,857,941.78.  Voted funds : R2,361,269.00.