AFRICAN RENAISSANCE AND INTERNATIONAL CO-OPERATION FUND ANNUAL REPORT 2015/16 Presentation to Portfolio Committee on International Relations and Cooperation 13 October 2016

Introduction The ARF is a foreign policy instrument utilized for development cooperation. The ARF is reactive fund that responds to request for assistance from recipient countries. All requests for funding are funded in concurrence with the Minister of Finance. The length of time that it takes to conclude agreements with recipient countries remains an ongoing challenge. The implementation of the Cuban Economic Package which required Cuba to purchase South Africa goods with Facility B has yielded positive results. Initially Cuba wanted to purchase tires for buses and trucks but currently there is no company in South Africa that produces these tires. However, on 23 March, Somitomo announced an investment of R2 billion to expand its operation and start producing truck and bus tires in South Africa. Cuba has indicated that the transaction with Somitomo will be a basis to build long term trade. Therefore, the Agreement has a potential to stimulate industrial capacity and production, as well as, encourage foreign direct investment in South Africa.

Introduction Phase 1 of the Namibian Drought relief project has been successfully completed. In line with our commitment to promote small business and cooperatives, the provision of seeds and maize meal was carried out by a South African emerging business and a farming consortium. Phase 2 of the drought relief project has commenced and South African contractors are implementing the equipping of 104 boreholes in 5 region in Namibia. South Africa has also recorded a milestone in its hosting of the Square Kilometre Array (SKA) following launch of Meerkat. The ARF has contributed R 120 million for implementation of the project in other African countries. Ghana built has been completed and will be launched later in the year.

ARF Annual Performance report 2015/16 Performance indicators Target   ACTUAL ACHIEVEMENT AGAINST TARGET Percentage of requests responded to for the quality assurance and review of project proposals in preparation for the ARF Board meetings  100% of requests received responded to timeously as per objectives of the project plan.  100% of requests responded to: Thirteen (13) Project Proposals have been reviewed and submitted to committee meetings. Number of ARF structures and processes convened to identify and recommend projects in compliance with the ARF Act, 2000 and PFMA, 1999 Four Advisory Committee meeting to consider project proposals for recommendation Four meetings held to consider project proposals for recommendation.    Democracy and good governance 100% of approved disbursement to support democracy and good governance processed timeously as per the objective of the project plan. 100% of approved disbursements processed: payments totalling R 1,006,151.01 with respect to South African deployment of election observer missions for elections in Mozambique (held in 2014/15), Tanzania and Seychelles.

ARF Annual Performance report 2014/15 Performance indicators Annual Target   ACTUAL PERFORMANCE AGAINST TARGETS Socio – economic development  100% of approved disbursement to support social – economic development processed timeously as per the objectives of the project 100% of approved disbursements processed: payments totalling R6, 633,023.43 for the implementation of the Cuban Medical Brigade Project in Sierra Leone. payments totalling R4, 666,933.38 for the Rice and Vegetable Production project in Guinea (Conakry). Human Resource development 100% of approved disbursement to support capacity-building processed timeously as per the objectives of the project  100% of approved disbursements processed: payments totalling R 4,783,127.93 for Africa Capacity Building foundation project.

ARF Annual Performance report 2014/15 Performance indicators Annual Target   ACTUAL PERFORMANCE AGAINST TARGETS To provide humanitarian assistance and disaster relief 100% of approved disbursement to humanitarian assistance processed timeously as per the objectives of the project 100% of approved disbursements processed: Payments totalling R32 500 000 for Emergency Relief and preparedness and response to Ebola disease outbreak. payments totalling R48,168,012.34 for Namibia drought relief project . To contribute to PCRD 100% of approved disbursement to support PCRD processed timeously as per the objectives of the project No disbursement requested during the reporting period To support cooperation between South Africa and other countries 100% of approved disbursement for cooperation processed 100% of approved disbursements processed payments totalling R27,119,915.46 for the Cuban economic package.

Project considered by ARF Advisory Committee in 2015/16

Project considered by ARF Advisory Committee in 2015/16

Project considered by ARF Advisory Committee in 2015/16

Governance structures Role Performance Portfolio Committee Oversight on public entity The ARF briefed the portfolio committee four times in the financial year Executive Authority Performance monitoring The ARF submitted the Strategic Plan 2015 - 2020, APP2016/17, four quarterly reports , Annual report and Financial statements 2015/16 ARF Advisory committee Recommendation of projects to the Executive Authority Held four meetings, processed 13 project proposals and recommended 9 project proposals. Risk Committee Provides advice to Accounting Authority of effectiveness of enterprise wide risk management Held 2 meetings during the financial year to review effectiveness of enterprise wide risk management of the entity Audit Committee Review of financial and performance information Held 4 meetings during the financial year to review quarterly reports, financial statements and audit outcomes.

ARF Financial report 2015/16 R'000 Accumulated surplus as at 31 March 2015 1 611 884 Appropriated funds 145 637 Interest received 143 765 Approved Grants for 2015/16 (161 773) Forex Loss for 2015/16 (37 422) Other Liabilities (140 185) Available funds as at 31 March 2016 1 561 906

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