AFRICAN RENAISSANCE AND INTERNATIONAL CO-OPERATION FUND 2016/17 ANNUAL REPORT (ARF) Presentation to NCOP Select Committee on Trade and International Relations 8 NOVEMBER 2017

Table of contents 1. General Overview 3 2. Key performance indicators, planned targets and actual achievements 6 3. Governance structures 11 4. Report of the external auditor 12 5. ARF Financial Report 2016/17 13

General Overview The African Renaissance and International Cooperation Fund is an integral part of South Africa’s development contribution to the African continent and countries of the South. 2. The Fund has been capacitated with a dedicated Secretariat. 3. The 2016/17 Annual Report encompasses the achievements recorded in pursuit of the objectives and targets as set out in the Revised Strategic Plan for 2015 – 2020.

General Overview 4. The ARF continues to support the SADC election observer missions on the continent. 5. The ARF continued to act on appeals for humanitarian assistance from African countries and countries of the developing South that are in dire need in response to humanitarian crises including natural disasters and man-made disaster. The main objective of humanitarian assistance is to save lives, alleviate suffering, and maintain human dignity

General Overview 6. Amongst the flagship projects being implemented during the financial year 2016/17 are: 6.1 The Veterinary Laboratory Network (VETLAB) project supports that the (International Atomic Energy Agency) IAEA’s efforts to strengthen animal disease diagnostic capacities in regional veterinary laboratories in Sub-Saharan Africa through the Joint FAO-IAEA Division's veterinary laboratory network. The Botswana National Veterinary Laboratory, acts a reference laboratory for SADC regional laboratories. This is an important milestone in deepening the integration agenda of SADC 6.2 The Rice and Vegetable project in Guinea Conakry, which has officially been handed over to the Government of Guinea Conakry, is a blue print for South Africa as a model for the eradication of food insecurity on the Continent.

Key performance indicators, planned targets and actual achievements 2016/17 Actual achievement Deviation from planned target to actual achievement for 2016/17 Comment on deviations Percentage of requests responded to for the quality assurance and review of project proposals in preparation for the ARF Advisory Committee Meetings 100% of requests received responded to as per objective of project plan 100% of requests responded to for the quality assurance and review of project proposals in preparation for the ARF Advisory Committee Meetings have been achieved   Six project proposals reviewed and submitted to committee meetings None Number of ARF structures and processes convened to identify and recommend projects Four advisory committee meetings to consider project proposals for recommendation A total of four committee meetings were held to consider project proposals for recommendation

Strategic objectives, performance indicators, planned targets and actual achievements 2016/17 Actual achievement Deviation from planned target to actual achievement for 2016/17 Comment on deviations To promote democracy and good governance 100% of approved disbursement to support democracy and good governance processed 100% of approved disbursements distributed during this reporting period   Processed payments totaling R389 843.41 with respect to South African deployment of election observer missions for elections in Zambia, Seychelles and Mauritius None To contribute to human resource development 100% of approved disbursement to support capacity-building processed Processed payment of R7 000 000.00 for African Ombudsman Research Centre

Strategic objectives, performance indicators, planned targets and actual achievements None Strategic objectives Planned target 2016/17 Actual achievement Deviation from planned target to actual achievement for 2016/17 Comment on deviations To support socio-economic development and integration 100% of approved disbursement to support socio-economic development and integration processed 100% of approved disbursements distributed during this reporting period   Processed payments totaling R5 086 955.68 for Rice and Vegetable Production project in Guinea (Conakry) None To provide humanitarian assistance and disaster relief 100% of approved disbursement for humanitarian assistance processed      100% of approved disbursement distributed during this reporting period. Processed payment of R439 341.19 for Namibia drought relief project. Processed payment of R199,258.00 for transportation of humanitarian assistance to Madagascar

Strategic objectives, performance indicators, planned targets and actual achievements None Strategic objectives Planned target 2016/17 Actual achievement Deviation from planned target to actual achievement for 2016/17 Comment on deviations To support cooperation between South Africa and other countries 100% of approved disbursement for cooperation processed 100% of approved disbursement distributed during this reporting period   Processed payment of R78 047 130.43 for Cuba Economic Package None To contribute to PCRD 100% of approved disbursement for PCRD processed No disbursement requested during the reporting period

Key performance indicators, planned targets and actual achievements 2016/17 Actual achievement Deviation from planned target to actual achievement for 2016/17 Comment on deviations Percentage of approved disbursement processed 100% of approved disbursement processed as per objectives of the project plan 100% of approved disbursements distributed during this reporting period   Fifteen approved ARF projects disbursement processed None Percentage of active projects monitored for compliance with the concurrence received and approved project plan 100% of active projects monitored for compliance with the concurrence received and approved project plan Percentage of Project Oversight Committee reports for active projects 100% of Project Oversight Committee meetings reports for active projects 77,5% of Project Oversight Committee meetings reports for active projects The Cuban Economic Package oversight will be conducted in 2017/18 Percentage of closed projects with close-out reports 100% of closed projects with close-out reports The rice and vegetable production projects in Guinea Conakry closed

Governance structures Role Performance Portfolio Committee Oversight on public entity The ARF Secretariat briefed the committee on the Annual report and quarterly reports. Executive Authority Performance monitoring The ARF Secretariat submitted the Strategic Plan 2015 - 2020, APP2017/18, four quarterly reports , Annual report and Financial statements 2016/17 for consideration ARF Advisory committee Recommendation of projects to the Executive Authority Held four meetings, processed project 6 project proposals and recommended 5 project proposals. Risk Committee Provides advice to Accounting Authority of effectiveness of enterprise wide risk management Reviewed the ARF quarterly reports and quarterly risk assessments. Audit Committee Review of financial and performance information Reviewed quarterly reports, annual financial statements and audit outcomes of the AGSA

Report of the external auditor 1. The Fund maintained an unqualified audit report from the AGSA 2. Eleven out of twelve audit recommendations accepted by management in the prior year on matters included in the auditor’s report were implemented and actions taken to resolve the findings. 3. The one outstanding matter affecting the Auditors opinion is “Any money in the Fund which is not required for immediate use must be invested by the Director-General, and may be withdrawn when required.”

ARF Financial Report 2016/17 R'000 Accumulated surplus as at 31 March 2016 1 561 906 Appropriated funds 31 Surplus approved by National Treasury 140 185 Rescinded projects 303 198 Interest received 176 989 Forex Gain 26 863 Approved Grants for 2014/15 (57 593) Amount to be surrendered National Revenue Fund (1 651 579) Available funds as at 31 March 2017 500 000

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