LAND

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LAND AGRARIAN REFORM PROGRAMME
SELECT COMMITTEE ON FINANCE, PUBLIC SERVICES AND
LAND AND ENVIRONMENTAL AFFAIRS

• PARLIAMENT
• CAPE TOWN
• 16 OCTOBER 2007

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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

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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 countrys skills base.
• Implementation to be based on cooperative
  government, private public and civic partnerships

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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

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Goals, Strategies Objectives
Poverty Eradication 50
Goals
Goals
Good Governance
Strategies
Strategies
Job Creation 6 million
Economic Growth 6
Profitability Competitiveness
Access Participation
Sustainable Agricultural Resource Use
Exports
Land Reform
Agribusiness
Production
Services
Objectives
Objectives
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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

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Product Portfolio
Start with

• 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

Primary Agriculture
Processing
Packaging / Value add
INDUSTRIAL
Foundation
Cross-Cutting Issues

• Get organised to lead
• Pursue AgriBEE objectives
• Obtain better data
• Drive collaborative action
• Focus on innovation

• Fix the basics rules regulations
• Foster greater fair market access
• Promote competition efficiency
• Mobilise organise black farmers
• Provide infrastructure

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Sector needs

• Business Environment

• Supply-Side

• Demand-Side

• 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

All farmers

• Inadequate focus on new markets
• Limited product innovation

• Negative impact on competitiveness
• Cost of compliance to SPS TBT standards
• High cost of compliance to labour legislation

• Limited innovation in risk management

1st economy farmers

• Limited access to markets

• Limited access to financial services

• Poor infrastructure
• Inadequate basic services
• Limited access to capital
• Limited skills
• Slow Pace of Land Reform

• Limited supporting institutions
• Limited settlement support

2nd economy farming challenges

• Limited access to local markets

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New Farming Systems
Low-volume, uncoordinated supply chains
Provide cost-effective logistical services to
small farmers
High trans-action costs
Farm
Market
Farm
Farm
Less than truckloads
Farm
Reduced transaction costs
Farm
Higher-volume, integrated supply chain
Market
Farm
Farm
Cooperation
Farm
Full truckload
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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

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Monitoring Evaluation

• Single management information system for tracking
  beneficiaries and projects
• Serves decision-making, disbursement, financial
  control, and ME
• Web-based
• Starts with first beneficiary contact, and
  follows both beneficiaries and projects
• Put in place ME immediately to be able to
  evaluate the impact so that we can, in the
  future
• Redirect in terms of beneficiaries and particular
  projects