Presentation to Portfolio Committee on Agriculture, Forestry and Fisheries on Progress made in implementing CAADP 20 JUNE 2017.

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Presentation transcript:

Presentation to Portfolio Committee on Agriculture, Forestry and Fisheries on Progress made in implementing CAADP 20 JUNE 2017

PRESENTATION OUTLINE CAADP Implementation Process in South Africa Summarised Priority Investment Areas Proposed Programs Summarised priority investment areas – multi-stakeholder consultations Priority Programmes Investment Programmes: A basis For CAADP Compact Outcomes of expenditure review Biennial Review Report Performance Themes South Africa’s Sector Development Strategic Direction

ACRONYMS AFF Agriculture, Forestry and Fisheries AUC African Union Commission BR Biennial Review CASP Comprehensive Agricultural Support Programme CAADP Comprehensive Africa Agriculture Development Programme DAFF Department of Agriculture, Forestry and Fisheries DPME Department of Planning, Monitoring and Evaluation EMIA Export Marketing and Investment Assistance Scheme LRAD Land Redistribution for Agricultural Development DRDLR Department of Rural Development and Land Reform MTSF Medium Term Strategic Framework CRDP Comprehensive Rural Development Programme MCEP Manufacturing Competitiveness Enhancement Programme NAIP National Agriculture Investment Plan (NAIP) NDP National Development Plan (NDP), 2012 REC Regional Economic Community ReSAKKS Regional Strategic Analysis and Knowledge Support System SADC Southern African Development Community COFOG Classification of Functions of Government

CAADP IMPLEMENTATION PROCESS IN SOUTH AFRICA Launched in 2011 Stock-taking 11 consultative workshops (over 2000 participants including farmers from almost every district in the country) Compact drafted National Agriculture and Food Security Investment Plan drafted National consultative workshop 5 Policy Briefs prepared in readiness for signing the Compact and the Business meeting Expenditure analysis was completed

Unique and innovative approach to conducting a rapid appraisal In the absence of data on the smallholder sector, the CAADP process in of this context. A series of participatory stakeholder workshops for policy stocktaking was carried out. Information was solicited through these questions: Who is involved in producing and marketing what commodities and products where in the country and what resources they have available to them What policies and programmes already exist; What are the gaps in: institutions, coordination, infrastructure, capacity etc. What opportunities are there to address these gaps, increase economic growth and reduce poverty? What is the vision/aspiration for the future? What should change in the next 5 and 10 years? What is needed to achieve this vision? What are the constraints and threats to achieving this vision? How can these constraints and threats be overcome? Who needs to do what? What strategic investment programmes are needed to achieve the vision and overcome the constraints? Identify priority interventions.

What did South Africans participating in the largest national consultation on food security say government should do? Over 2000 people in 11 workshops across the country August 2012 – January 2014

SUMMARISED PRIORITY INVESTMENT AREAS – MULTI-STAKEHOLDER CONSULTATIONS Capacity development Infrastructure Research Land access Market access Value chain development Nutrition Inputs Credit and finance Knowledge systems Water Communication strategy Coordination

Existing policies and programmes Reconstruction and Development Programme, 1994 School feeding Programme initiated, 1994 White Paper on Agriculture, 1995 Social Security Act, 1996 Integrated Sustainable Rural Development Strategy, 2000 Land Redistribution for Agricultural Development (LRAD), 2001 Integrated Food Security Strategy, 2002 Special Programme for Food Security, 2003 Mandatory fortification of maize and wheat, 2003 Comprehensive Agricultural Support Programme (CASP), 2004 Social Assistance Acts – Social relief of Distress Grant, 2004 DRDLR War on Poverty Programme, 2008 Medium Term Strategic Framework (MTSF), 2009-14: Strategic Priority 3 (comprehensive rural development strategy linked to land and agrarian reform and food security) Comprehensive Rural Development Programme (CRDP), 2009 Outcomes Approach and Outcome 7: Vibrant, equitable and sustainable rural communities and food security for all, 2010 New Growth Path, 2010 Directorate of Food Security and the Zero Hunger Strategy, 2011 Green Paper on Land Reform, 2011 National Development Plan (NDP), 2012 DRDLR Strategic Plan, 2013-14 – 2017-18 DAFF Strategic Plan, 2013-2014 – 2017-18 DRDLR Policy for the Recapitalisation and Development Programme, 2013 National Policy on Food and Nutrition Security [underpinned by (a) Household Food and Nutrition Security Strategy and (b) Fetsa Tlala Food Production Intervention], 2013 Roadmap to Nutrition, 2013 IPAP, 2013 APAP, 2014 Over 70 programmes at National, Provincial, District and Local Municipality levels

PRIORITY PROGRAMMES: Intensification and development of sustainable production systems Agribusiness, value chain and market development and policy reform to create profitable and competitive on- and off-farm enterprises Education, capacity and professional development through comprehensive and integrated training Social development programmes for resilient livelihoods through linking farmers and social protection programmes and encouraging home and school gardens and agri-parks. Institutional capacity development

Priority Component 1: Intensification and development of sustainable production systems Focus on field crops, horticultural products, fisheries, aquaculture, livestock for subsistence, smallholder and commercial farmers which sets out to increase agricultural production, productivity and profitability. The programme targets subsistence producers, smallholders and commercial producers. The programme seeks to ensure: Increased participation of smallholder farmers in the agricultural sector Improved productivity, profitability and farm enterprise management Stock theft reduction Improved disease management and control in all sub-sectors Lower unit production costs Entrance opportunities for new farmers Improved tenure security and access to agriculturally productive land Greater access for farmers to adoptable research and technology

Priority Component 1: Specific programmes Infrastructure and mechanisation support for smallholder farmers Development of an appropriate research agenda, policy and programme to support smallholders and fisheries and aquaculture (including new entrants) to improve seed and stock quality for field, horticulture, livestock and aquaculture to improve production, increase profitability and manage disease and provide funding for such research. Establishment of aqua-logistics infrastructure, (e.g. research, hatcheries, processing, boats, and demonstration centre and extension support) Development of a policy and programme implementation plan for the small-scale fisheries (marine) sector

Priority Comp 2: Agribusiness, value chain and market development and policy reform To create profitable and competitive on- and off-farm enterprises in a broader range of sustainable, profitable and integrated value chains. The programme seeks to: Increase number of smallholder farmers actively participating in sustainable, profitable and integrated value chains Improve market infrastructure (on and off farm) Increase value addition and beneficiation Improve partnerships in value chains (stakeholders working together) Ensure more farmers have access to finance Create a coordinated and enabling policy environment Ensure import substitution Create balanced market protection and growth in exports

Priority Component 2: key programmes Implementation of a dedicated programme to develop capacity to meet food safety and private standards for smallholder and new businesses. Establish a Comprehensive Market Development Programme Establish a Manufacturing Competitiveness Enhancement Programme (MCEP) for on-farm and off-farm Establish a sub-sector Specific Export Marketing and Investment Assistance Scheme (EMIA) to include export enhancement programme (all categories and prioritise primary and tertiary agriculture, forestry and fisheries) and sub-sector sector specific incentives to assist with market access and value chain participation and capacity building.

Priority Component 3: Education, capacity and professional development It seeks to build a professional, developed entrepreneurial farming community with the knowledge and skills to participate in the entire value chain and offer opportunities (internships, mentoring, scholarships and continued professional development) and attract new entrants into the sector (particularly the youth). The programme seeks to: Improve farmer capacity to participate in the whole agricultural value chain (with a focus on women and youth) Establishment of a comprehensive, appropriate and integrated training programme for the sector for on-going professional development of farmers, mentors and extension staff Increase the number of farmers, extension and officials accessing improved research and development Improve the ratio of extension staff to farmers and improve extension services Increase the amount of agricultural sciences and nutrition in the general school curriculum Increase number of agricultural specialists in the public service

Priority Component 3: to be achieved through Reviewing existing capacity development programmes and revising and expanding their offerings to provide comprehensive capacity development programmes for farmers, subsistence producers, mentors and extension officers in skills beyond primary production and including financial, business and farm management. Establishment of an information and knowledge and support system to assist farmers and disseminate research information Reviewing the school curriculum and develop a syllabus to increase the amount of agricultural sciences and nutrition in the general school. Primary School Teacher In-Service Training and Mentorship Establish a Young Farmer Cadre development programme that will include: Internship opportunities (DAFF, PDA’s and Agencies) Student exchange programmes Bursaries, Entrepreneurship Development Programme Post development fellowship programme Professionally developed farming community with knowledge and skills to participate in the whole agricultural value chain. .

Priority Component 4: Social development programmes for resilient livelihoods It seeks to strengthen the impact of social protection programmes and encourage home and school gardens and agri-parks to improve food security and nutrition. The programme will lean heavily on the Household Food and Nutrition Security Strategy being implemented by the Departments of Social Development and Health in partnership with DAFF and the Department of Rural Development and Land reform. Increased coordination of programmes will be ensured. The specific activities will include: Speedy implementation of the Household and Food and Nutrition Security Strategy programmes Development and Support of Agri-Villages

Priority Component 5: Institutional Capacity Development - Sector institutional capacity development for improved coordination, partnership and alignment seeks to build capacity for communicating, knowledge sharing and monitoring and evaluation for more effective institutions to drive coordination, planning and implementation through: Improved coordination, partnership and alliance within and across the sector. Communication Strategy in place to ensure better communication, knowledge sharing Improved institutional capacity for information and system management, communication, policy analysis and monitoring and evaluation Contextualised financial models for supporting food security

Priority Component 5: Institutional Capacity Devt (the how) Establishing a Strategic Knowledge and Support System Establishing the Food Security Advisory Council coordination of investments under this programme and the National Policy on Food and Nutrition Security to coordinate focused implementation at all levels Establishment and maintaining a food security information system to monitor, evaluate and assess food insecurity and nutrition at all levels through regular (annual) updates and coordinated regular national surveys in partnership with DPME and StatsSA. .

Priority Component 5: Institutional Capacity Devt (the how) CONTINUED Establishing a forum for sharing lessons and insight for continual engagement of all stakeholders in the review of progress, reform of policies and programmes and drafting of the necessary legislation to enable the implementation of the components of this compact On-going professional development with regard to policies, programmes and technical knowledge related to the components of this compact to ensure institutional capacity for implementation and monitoring and evaluation Developing a communication strategy to ensure better communication and knowledge sharing .

Broad stakeholder ownership Compact drafted South Africa Broad stakeholder ownership

Investment plan development

Signing of the first country CAADP Compact by Rwanda, 2007 SOURCE: COMESA NEWSLETTER No 94 22

CAADP TECHNICAL REVIEW Submission of Investment Plan Expert review and comment Discussions Country response and adjustments to the plan

International business meeting called Presentation of the investment plan to the international community CAADP Technical Review Report Stakeholder comments Donor Working Group Comment

CAADP IMPLEMENTATION PROCESS (SOUTH AFRICA) Outstanding work in Step 2 Financial analysis - enterprise profitability Technical analysis – locally feasible technical options for increased productivity Institutional analysis - assess agricultural institutions’ mandates and capacities and inter-agency cooperation (SWOT) Ecosystems analysis – Bio-physical, socio-economic and farming systems characteristics and opportunities for adaptation (Available) Stakeholder review and validation of the study outcomes - identify challenges and priorities around investment plans to enhance agricultural performance Costed National Agriculture, Forestry and Fisheries Investment Plan The baseline information derived from analytical studies is necessary for: Investment Planning Targeting (what level of investment is optimal & what growth rate is realistic)

The study on SA Agriculture Public Expenditure Review Rational for the study: Determine extent of public spending on agriculture To provide recommendations on budget planning, execution and accountability in the agricultural sector across different departments. Test alignment of budgeting process with agricultural policy priorities • Compare South Africa with other countries • Solicit support for greater spending support on Agriculture

APPROACH FOLLOWED Used State of Expenditure data at accounting unit level for DAFF Sub-program level data for the rest derived from Government Basic Accounting System Income statements from State Owned Entities for all the budgeted, adjusted and actual expenditure by both economic classification and function All expenditure items coded using COFOG and a “harmonised” programme structure (Administration and Services, Production Support, Regulatory Services, Natural Resources Management, Farmer Support and Extension, Financing, Agricultural Economics, Forestry and Fisheries)

METHODOLOGICAL CHALLENGES FACED National Level • Frequent program structure changes • Increasingly reflected in changing names of functional units • Sub-division of accounting units Provinces • Provincial level agricultural program structure in various stages of harmonization – some inconsistency in content. Provincial Departments also responsible for non agricultural functions (environmental affairs) . SOE’s • Great variation in reporting formats (inconsistent with BAS) • Too little information on functional breakdown Generally • Lack synergy between National, Provincial and SOE programs

OUTCOMES OF PUBLIC EXPENDITURE REVIEW The average agriculture public investment for 2003/04 to 2013/14 in RSA = 1.8% of Government expenditure • Benchmark of the Maputo Declaration to increase public expenditure on agriculture for 10 per cent is neither achievable nor appropriate for South Africa given the size of the economy. Public spending in the South African agricultural sector is complemented by a strong private sector investment since 1930. Followed by high level of secondary and tertiary sector development in economy

Agriculture Expenditure Share - South Africa 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Total Govt expenditure 291 524 328 666 368 459 416 684 470 193 541 443 635 953 747 197 805 979 889 912 965 496 1 049 109 Total Public spending on Agric 4 388 6 179 6 566 7 806 8 560 10 273 12 542 13 518 12 977 15 146 16 361 16 969 RSA GDP 1 386 435 1 427 322 1 492 330 1 571 081 1 659 122 1 751 165 1 814 594 1 786 899 1 843 008 1 909 343 1 956 444 1 993 433 Agric Contribution to GDP 35 826 36 070 36 380 37 402 35 359 36 301 42 143 41 454 41 614 41 587 42 433 43 414 Average Share of Agric Spending of Govt Spending 1.51 1.88 1.78 1.87 1.82 1.90 1.97 1.81 1.61 1.70 1.69 1.62 1.8 Share of Agric in GDP 2.58 2.53 2.44 2.38 2.13 2.07 2.32 2.26 2.18 2.17 2.3

OUTCOMES OF EXPENDITURE REVIEW Agriculture’s performance Share of Govt Expenditure on AFF 31

Share of Agricultural public Expenditure (2003/4; 2008/9; 2013/14

Agriculture expenditure by provinces 33

2014 Malabo Declaration African Union Heads of States and Governments adopted 7 Commitments to achieve Agricultural Transformation in Africa, June 2014. PT 1: Commitment to CAADP Process PT 2: Investment Finance in Agriculture PT 3: Ending Hunger PT 4: Eradicating Poverty through Agriculture PT 5: Intra –African Trade in Agriculture Commodities and Services PT 6: Resilience to Climate Variability PT 7: Mutual Accountability for Actions and Results All member states (countries) are expected to give progress on the following 7 Performance Themes (PTs):

BIENNIAL REVIEW REPORT PERFORMANCE THEMES

Steering up the biennial reporting process … for Jan 2018 TG p.24 seed…………. Temp. p.8 seed Country Trainings on the Biennial Reporting TOOLS ...

08 Oct 2017 15 Oct 2017 30 Sept 2017 bSC bTF 31 Aug 2017 15 Aug 2017 PRC EXECUTIVE COUNCIL AFRICAN UNION SUMMIT Continental Report to the AU Summit through the AU validation mechanism 7 RECs, NPCA/AUC and Member States Coordination Mechanism in 7 steps for preparing the Biennial Report on Malabo Declaration to the African Union Summit. AUC Official Submission to the AUC. 6 TA DREA STC Continental Report endorsement by Ministers, to allow submission to the AU Summit. 5 08 Oct 2017 15 Oct 2017 AUC/NPCA CAADP Team Submission of regional Reports, after integration of comments, with Country reports in Annex 3 Continental report compilation. 4 30 Sept 2017 bSC bTF 31 Aug 2017 15 Aug 2017 Involve all RECs in the sub-region. IGAD & EAC Technical Political Eastern Africa RTO RPO ECCAS Central Africa UMA Northern Africa ECOWAS Western Africa SADC, COMESA Southern Africa Technical alignment and political endorsement of countries reports at sub-regional levels: Under a sub-regional workshops organized by RECs. 2 30 Jun 2017 JSR 37 … C i Countries individual Report Preparation. 1

African Agriculture Transformation Scorecard

REGIONAL STRATEGIC ANALYSIS AND KNOWLEDGE SUPPORT SYSTEM COUNTRY COVERAGE

CHALLENGES AND PROPOSED MITIGATION MEASURES ON THE PREPARATION FOR BIENNAL REVIEW Key Challenges Mitigation Measures/Opportunities Collection of data from other Ministries/Departments and Agricultural Industries Establish working groups Workload (nominated officials) Request for more capacity (at least two officials from each unit) Approval of the BR Report Management Buy In

IS SOUTH AFRICA EXPERIENCING A RUDE AWAKENING? CONCLUSION IS SOUTH AFRICA EXPERIENCING A RUDE AWAKENING? Challenges encountered with the development of National Agriculture Investment Plan (NAIP) Implementation of the Comprehensive Africa Agriculture Development Programme (CAADP) versus signing of CAADP Compact All eyes are on South Africa to provide a good BR Report due to its developmental state The first Draft BR Report is due on the 30 June 2017 to Africa Union Commission (AUC) Strengthen Planning & Monitoring and Evaluation Systems in place for future BR Reporting 2018 BR Report will form as a baseline for next reporting so as to improve on gaps and challenges that might be encountered during this reporting process

Thank You