MARINE LIVING RESOURCES FUND (MLRF) 2019/2020 Annual Performance Plan PRIVATE AND CONFIDENTIAL

Presentation Outline Acronyms Introduction & Background Fisheries Programmes and sub-programmes Fisheries Policy Frameworks Key Strategic Priorities for the MLRF Strategic Objectives and Annual Targets Programme Performance Indicators and Annual Targets

Acronyms (continued) AED = Aquaculture and Economic Development AGSA = Auditor-General of South Africa CD = Chief Director DAFF = Department of Agriculture, Forestry and Fisheries DDG = Deputy Director-General DG = Director-General EPWP = Extended Public Works Programme FOS = Fisheries Operations Support FPE = Fish Processing Establishment FPV = Fisheries Protection Vessel FRAP = Fishing Rights Allocation Process FRD = Fisheries Research and Development KZN = KwaZulu Natal

BACKGROUND MCS = Monitoring, Control and Surveillance M&E = Monitoring and Evaluation MLRA = Marine Living Resources Act MLRF = Marine Living Resources Fund MRM = Marine Resources Management MTEF = Medium Term Expenditure Framework MTSF = Medium Term Strategic Framework PFMA = Public Finance Management Act RFMO = Regional Fisheries Management Organisation SAMSA = South African Maritime Safety Association TAC = Total Allowable Catch TAE = Total Allowable Effort WCRL = West Coast Rock Lobster WFFP = Working for Fisheries Programme

Introduction and Background The Marine Living Resources Fund (MLRF) is a Schedule 3 A, registered in 2001. The MLRF was established under the Marine Living Resources Act, 1998 (Act No. 18 of 1998) Section 10 of the MLRA Director-General is the accounting authority of the MLRF Minister approves the revenue and expenditure budget Financial year ends 31 March Auditors: Auditor-General of South Africa Any unexpended cash balances at the end of the financial year are carried forward to next year

Introduction and Background (continued) Section 10 of the MLRA: Monies to be paid into the MLRF: Fines, penalties, interest for any contraventions in relation to the Act Proceeds from sale of seized/forfeited vessels, vehicles, aircraft, gear or fish Interest and Fees collected Interest on cash investments Donations received Levies on fish landed and fish products

Fisheries Programmes The Fisheries Branch is responsible for promoting the development, monitoring and sustainable use of South Africa’s fisheries and aquaculture sector. The MLRF comprises of six sub-programmes namely: Aquaculture and Economic Development (AED) Fisheries Research and Development (FRD) Marine Resource Management (MRM) Monitoring Control and Surveillance (MCS) Fisheries Operations Support (FOS) Financial Management (MLRF).

Introduction and Background (continued) Aquaculture and Economic Development promotes the growth of the aquaculture sector by providing public support and an integrated platform for the management of aquaculture. The Chief Directorate also facilitates the development of alternative livelihoods for coastal communities and the management of the 12 proclaimed fishing harbours. Fisheries Research and Development promotes the sustainable development of fisheries resources and ecosystems by conducting and supporting appropriate research. Marine Resource Management fosters the sustainable use and the equitable and orderly access to marine living resources through improved management and regulation. Monitoring, Control and Surveillance which ensures the protection and promotion of sustainable use of marine living resources by intensifying enforcement and compliance efforts. Fisheries Operations Support provides governance and support services to the MLRF/Fisheries Branch including Communications, Human Resources, Information Technology, Legal Services, International Relations, Stakeholder Relations; and Customer Services. Chief Financial Officer is responsible for the financial management of the MLRF.

Fisheries Policy Frameworks The Fisheries Branch has a number of policy frameworks. These include: The Small-scale Fisheries Policy The General Policy for the Allocation and Management of Commercial Fishing Rights Fisheries Sector-specific Policies Policy for the Transfer of Commercial Fishing Rights New Fisheries Policy National Plan of Action for Sharks Policy for the Development of Sustainable Marine Aquaculture in South Africa National Inland Fisheries Policy Framework for South Africa National Aquaculture Policy Framework for South Africa 2013 Policy on the Handling of Confiscated Fish and Fish Products Policy on the Operation of Fish Processing Establishments

Key Strategic Priorities for the MLRF The Key strategic priorities for the Marine Living Resources Fund over the next financial year, include: Supporting 4 catalyst aquaculture projects under Operation Phakisa (Ocean’s economy). Developing a programme concept note for the provision of support to small-scale aquaculture The development of an implementation plan for the Aquaculture Development Act The conducting of one new research study on the economics of new candidate species for aquaculture (Sea urchins). The conducting of one aquatic animal health research project (disease preventative measures). The conducting of one research project on climate change, namely an assessment of coastal deoxygenation and acidification. The creation of 546Full Time Equivalent jobs under the Working for Fisheries Programme.

Key Strategic Priorities for the MLRF (continued) Revising Policies and Application Forms for 12 fishing sectors in which rights expire in 2020. Revising the Policy on the Transfer of Fishing Rights. The allocation of fishing rights to registered Small-scale fishing cooperatives in the Eastern Cape; KZN and Western Cape. The development of recovery plans for two critical sectors, namely West Coast Rock Lobster and Abalone. The production of research reports indicating the stock status levels of two fisheries, namely West Coast Rock Lobster and Abalone. The carrying out of 5 500 compliance and enforcement measures in the six prioritised fisheries sectors, namely hake, abalone, rock lobster, line fish, pelagic and squid. The carrying out of 60 joint operations with law enforcement partners through the Operation Phakisa Initiative 5 of the Oceans Economy. This will include land and sea-based operations, patrols and inspections.

Strategic Objectives and Annual Targets Strategic Objective Indicator Strategic Plan Target (5 Year Target) 18/19 19/20 20/21 21/22 Ensure increased production and productivity in prioritised areas as well as value chains Increase the number of FTE job opportunities (Working for Fisheries Programme) 1 250 jobs (465 youth; 592 women) 546 FTEs Promote aquaculture for economic growth by 2020 19 aquaculture projects supported 4 aquaculture projects supported 4 Operation Phakisa aquaculture projects supported

Strategic Objectives and Annual Targets Strategic Objective Indicator Strategic Plan Target (5 Year Target) 18/19 19/20 20/21 21/22 Lead and coordinate government food security initiatives Promote transformation and production of fishery by 2020 Framework for the allocation of fishing rights implemented Revised policies and application forms for 12 fishing sectors which expire in 2020 Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resources Depleted natural resources protected and recovered by 2020 Recovery plans of prioritised fish stocks Recovery plans of prioritised fish stocks were compiled

Programme Performance Indicators Strategic Objective Programme Indicator 19/20 20/21 21/22 Ensure increased production and productivity in prioritised areas as well as value chains Increase the number of FTE job opportunities (Working for Fisheries Programme) 546 FTEs Number of aquaculture catalyst projects (identified and listed under Operation Phakisa) supported 4 Operation Phakisa projects supported Small-scale aquaculture support programme developed Small-scale Aquaculture Support Programme concept note developed Small-scale Aquaculture Support Programme implemented

Programme Performance Indicators Strategic Objective Programme Indicator 19/20 20/21 21/22 Ensure increased production and productivity in prioritised areas as well as value chains Aquaculture Development Act Implementation Plan developed Develop implementation plan for Aquaculture Development Act Aquaculture Development Act implemented Number of aquaculture research projects conducted 1 new research project on economics of new candidate species for aquaculture conducted (Sea Urchin) 1 new research project on food safety for new aquaculture species conducted (Sea Urchin) 1 aquatic animal health research project (Disease Preventative Measures) 1 aquatic animal health project 1 research project on climate change: Assessment of Coastal De-oxygenation and Acidification -

Programme Performance Indicators Strategic Objective Programme Indicator 19/20 20/21 21/22 Promote transformation and production of fishery by 2020 Commercial fishing rights allocated Revised policies and application forms for 12 fishing sectors which expire in 2020 Allocate fishing rights to 12 fishing sectors that expire in 2020 Revised policy for the Transfer of Fishing Rights and application form - Small-scale Fisheries Policy implemented Rights allocated to registered small-scale fisheries cooperatives (Eastern Cape, KZN and Western Cape) Monitor and support of the small scale fisheries sector

Programme Performance Indicators Strategic Objective Programme Indicator 19/20 20/21 21/22 Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resources Sustainable management of fish stocks Recovery plans for the two sectors: abalone and West Coast rock lobster - Research reports compiled for two sectors: abalone and West Coast rock lobster

Programme Performance Indicators Strategic Objective Programme Indicator 19/20 20/21 21/22 Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resources Number of inspections conducted 5 500 compliance and enforcement measures in the six prioritised fisheries sectors: hake, abalone, rock lobster, line fish, pelagic and squid implemented Number of joint operations conducted with partners including Operation Phakisa initiative 5 60 joint operations conducted with partners 64 joint operations conducted with partners 68 joint operations conducted with partners Number of investigations conducted 284 286 288

Overview of the 2019/20 Budget and MTEF Estimates The MLRF will receive an estimated R 274 million for 2019/20, R 289 million for 2020/21 and R305 million for 2021/22 in transfers, which translates to an estimated 62% of the total revenue from the Department of Agriculture, Forestry and Fisheries. The transfers from the Department are mainly for vessel operational costs and the Expanded Public Works projects (WfFP). The Marine Living Resources Fund generates revenue from levies on fish and fish products, application fees, licenses and permit fees, fines and confiscations, harbour fees and grant of right fee which is estimated at 38% of the total revenue. Over the medium term, operational revenue is expected to decrease from R 215 million in 2019/20 to R 187 million due to: Revenue collection, capacity and capabilities to perform the function; Systems of revenue collection; Outdated levies, fees and structure. The transfer payment amounts from DAFF and DEFF are unknown at this point. The expenditure is expected to decrease moderately by 14.22% between 2018/19 and 2019/20 due in line with the decrease in revenue. The compensation of employees is funded by the department.