1. Department of Small Business Development
BRIEFING TO THE PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT
Aligning Cooperative Support Services to the Model of Developing 12 Abalimi Agricultural Cooperatives Pilot in Kwa-Zulu Natal (KZN)
08 March 2017

2. Presentation Outline Purpose Approach to the Plan of Action
Plan of Action: What the Department Committed to do
District Location of 12 Abalimi Agricultural Cooperatives
EThekwini municipality: Accomplishments
ILembe District Municipality: Accomplishments
Ugu District Municipality: Accomplishments
Harry Gwala District Municipality: Accomplishments
Umgungundlovu District Municipality: Accomplishments
Summary

3. Purpose
To account to the Portfolio Committee on the progress made in relation to the Remedial Action Plan formulated and presented by DSBD to the Portfolio Committee on the 07th of December 2016.
To respond to the the 2017 First Term Programme of the Portfolio Committee on Small Business Development,, 2017 wherein the department is required to report on Aligning the Support Services to the model of developing 12 Abalimi Agricultural Cooperatives pilot in KZN.
To to provide the Portfolio Committee with a progress report on aligning the Support Services to the model of developing 12 Abalimi Agricultural Cooperatives pilot in KZN.

4. Approach to the Plan of Action
On the 26th to 28 January 2017 DSBD embarked on a process of aligning support services for Abalimi Agricultural Cooperatives by carryout due diligence on the agricultural cooperatives.
On the 10 February 2017, DSBD wrote letters to all the local municipalities where cooperatives are situated by introducing the 12 Abalimi Agricultural Cooperatives. Unfortunately, the letters did not include the district municipalities. It focused on the local municipalities.
On the 16th to 23rd of February 2017, DSBD organise meetings with 4 districts municipalities (i.e. Ugu, Harry Gwala, Umgungundlovu, ILembe) and EThekwini Metropolitan including their implicated local municipalities aimed at aligning support services for Abalimi Agricultural Cooperatives in compliance with recommendation of the Portfolio Committee on Small Business Development.
In other words, the meetings were used to coordinate five district municipalities wherein the 12 Abalimi Cooperatives are located coupled with the affected local municipalities were cooperatives are also farming.
The coordination meeting involved both the district and local municipalities and other relevant stakeholders such as government departments (i.e. DAFF, Water and Sanitation, Agriculture, Rural Development and Land Reform, Amakhosi, etc.) critical for the success of the project and cooperatives were also invited to participate in the coordination meetings.
The meetings yielded progress on the aspect of seeking solutions to the challenges confronting the cooperatives in making sure that they start producing. These will be elaborated in this report.

5. Plan of Action – What the Department committed to do
Tasks
End Date 1.
Appoint a Project Manager for the Abalimi Agricultural Cooperatives project to manage and ensure coordination of the implementation of the project
16 Dec 2016 2.
Write letters to relevant Municipalities (MMs) to introduce Abalimi Agricultural Cooperatives 3.
Develop Terms of Reference (TOR) or Implementation Plan for each of the Steering Committee
31 Jan 2017 4.
Ensure that Abalimi are integrated into the IDP of municipalities to invoke support from other Stakeholders 5
Harmonize the working relationship between Kohwa and DSBD on the rollout of Abalimi project 6.
Establishment of Abalimi Steering Committee in each of the Municipalities

6. Plan of Action – What the Department committed to do, cont.
Tasks
End Date 7.
Seek approval from National Treasury to shift CIS funds towards investment in advancing a model which will promote the sustainability of funded cooperatives
24 Feb 2017 8.
Determine the exact business needs by undertaking due diligence to inform funding 9.
Develop Terms of Reference (TOR) or Implementation Plan for each of the Steering Committee
11 March 2017
10.
Unlock and provide working capital informed by the due diligence
17 March 2017
11.
Sign Transversal Agreements coupled with Implementation Plans with Municipalities
31 March 2017
12.
Develop concept document to be approved & supported by the relevant National & Provincial Departments
13.
Work with municipality to popularize the project by launching the project during harvest period
31 Aug 2017

7. District Location of 12 Abalimi Cooperatives in KZN
Farmline Food Coop
House of Glory Coop
Yahweh Shamaah Coop
Insabalele Primary Coop
Sinothando primary Coops
Green Farmer Primary Coop
Intombikabhayi Primary Coops Kwa - Xolo Fresh Produce Coop
Eshilo Women Primary Coop
Ulimo 12 Primary Cooperative
Ncebazakhe Women Coop
Selulele Primary Coop

8. EThekwini Municipality: Accomplishments
Status of Sinothando Primary Cooperative
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
5 member coop (3 women, 2 men, 3 youth)
10 potential jobs to be created;
Coop registered and received CIS funding, but not yet operational
Coop has not yet planted and harvested;
Land preparation provided by local municipality;
Business plan by Kohwa with financial costing is formulated and made available to all stakeholders to support
Prospects for success exist once outstanding support is provided.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fencing purchased
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Soil preparation done by the municipality
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Bore hole
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Admin, Ablution facility & working uniform
Working capital
Total amount required to bring project into operations
R 1.02m

9. EThekwini Municipality: Accomplishments (2)
Status of Green Farmers Primary Cooperative
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
5 member coop (youth 2, women 3)
10 potential jobs to be created;
Coops registered and received CIS funding, but not yet operational
Coop has not yet planted and harvested;
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support
Prospects for success exist once outstanding support provided.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fencing purchased
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin, Ablution facility & working uniform
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Lease Tractor & Equipment
Working capital
Total amount required to bring project into operations
R 950K

10. EThekwini Municipality: Achievements (3)
All stakeholders (EThekwini Metro, Provincial DAFF, Provincial COGTA, Provincial Rural Development and Land Reform and Provincial Water and Sanitation) are supportive of the rollout of the two Abalimi Agricultural Cooperatives at EThekwini Municipality.
Agreement's reached with eThekwini Municipality:
To enter into Partnership Implementation Agreement with DSBD.
The draft Agreement provided by DSBD is subjected to a consultation process within the municipality. Once legal vetting has been done it will be given to the City Manager for signature and forwarded to DSBD. However, the municipality would like to expand the agreement to include other areas of collaboration;
To integrate the two projects to the IDP of the municipality.
Agreed on the establishment of the Steering Committee comprising of all key stakeholders (i.e. DSBD, DAFF, COGTA, Provincial Dept. of Economic Dev., etc.)
Under the municipality leadership, the Steering Committee will meet to secure clear commitment from stakeholders to bring the two cooperatives into operations leveraging on all the stakeholders resources.
Progress will be reported monthly by the Steering Committee.

11. EThekwini Municipality: Achievements (4)
Business plan prepared by Kohwa for the two cooperatives received by the district to be used for the outstanding required support to bring all the cooperatives into operation.
After the Jan-17 oversight visit by the Portfolio Committee, the cooperative reported that some of the goods funded by CIS for Sinothando Cooperative were stolen and will need to be repurchased.
The Cooperative was encouraged to open a case file against the noted theft.
The Provincial Department of Agriculture has already conducted an assessment of the cooperative in order to see which support to specifically provide to the cooperative.
The Municipality has already used its tractor to carryout soil preparation for the cooperative
Seda KZN Provincial Office, which participated in the coordination meeting committed to assist the two cooperatives with technical and management training and financial system development.

12. ILembe District Municipality: Accomplishments
ILembe District Municipality, Indwedwe (Ward 3, Engonweni)
Status of Insabalele Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
5 member coop (youth 1, women 4)
10 potential jobs to be created;
Coop registered and received CIS funding and is operational
Coop has planted spinach but destroyed due to wrong chemical usage and pump not working well.
The pump for water has now been washed away by floods
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support
Prospects for success exist once outstanding support provided.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased and connected;
Site fully Fenced
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Already planted spinach, lack access to market.
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin & ablution facility
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Working capital
Total amount required to bring project into operations R

13. ILembe District Municipality: Accomplishments (2)
ILembe District Municipality, Maphumulo Local, (Ward 8 Mbizeni)
Status of Yahweh Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
5 member coop (5 women, disable person 1)
10 potential jobs to be created;
Coop registered and received CIS funded material and has not planted and harvested.
Coop lack suitable land to plant due to community opposition for it to obtain land for not being members of the community.
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support
Prospects for success exist once outstanding support provided.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fence purchased not installed;
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Land (10 hectares)
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin & ablution facility
Computer and Furniture
Tractor & Equipment (Lease)
Convert letter of intent to uptake agreement for market access
Working capital
Total amount required to bring project into operations
R 950K

14. ILembe District Municipality: Achievements (3)
All stakeholders (ILembe District Municipality, LED for Local Municipality, Provincial DAFF, Provincial COGTA, Provincial Rural Development and Land Reform and Provincial Water and Sanitation) are supportive of the rollout of the two Abalimi Agricultural Cooperatives at ILembe District Municipality.
Agreement's reached with ILembe District Municipality:
Agreed to enter into partnership implementation agreement, but want to enlarge it to include all critical areas of collaboration with respect to cooperatives and SMME development;
Partnership Implementation Agreement currently being subjected to consultation to key stakeholders and anticipated to be signed before the end of March 2017.
Agreed to establish the Steering Committee to ensure rollout support for the two cooperatives comprising of all key stakeholders;
Abalimi Cooperatives projects would be integrated in the IDP of the respective municipalities and district municipality;
District municipality to engage local municipality and Ngoyama Trust to secure land (lease Agreement) for Yahweh Cooperative (minimum of 10 hectare);

15. ILembe District Municipality: Achievements (4)
Agreement's reached with ILembe District Municipality, cont.:
Due to floods Insabalele irrigation system (pump) was washed away by the floods. Another pump will be purchased and installed proper to prevent floods destroying it. Irrigation system will be made to work back to normal. This will form part of the Steering Committee’s work.
Steering Committee will have first working meeting during March 2017 involving all stakeholders to secure their commitments in supporting the two cooperatives
ILembe Agency to also fund the cooperative and provide market access for the cooperative in School Nutrition Programme.
Agreed that the project should also be linked with Agri-park project
Seda Branch will assist with technical and management training provision and financial system development.
Formulated business plans for the two cooperatives by Kohwa were made available for use for implementation by the Steering Committee.

16. Ugu District Municipality: Accomplishments
Ugu District Municipality, Umzumbe Local (Ward 1)
Status of EShiloh Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
5 member coop
10 potential jobs to be created;
Coop registered and received CIS funded material and has not planted and harvested.
Coop lack suitable land to plant.
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support.
Requiring access to market their produce.
Prospects for success exist once outstanding support provided to the cooperative.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fence purchased not installed;
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
30 hectares of family land recently secured through lease
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin & ablution facility
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Working capital
Transport assistance to move to the current secured land
Total amount required to bring project into operations
R 950K

17. Ugu District Municipality: Accomplishments (2)
Ugu District Municipality, Umuziwabantu Local (Kwa Maci)
Status of Intombikabhayi Agricultural Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
9 member coop (5 women, 4 men, youth 3)
10 potential jobs to be created;
Coop registered and received CIS funded material and has planted spinach and have harvested and sold produce to the local market.
Coop lack suitable land to plant.
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support.
Requiring access to market their produce.
Prospects for success exist once outstanding support provided to the cooperative.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fence purchased not installed;
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin & ablution facility
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Working capital
Total amount required to bring project into operations
R 950K

18. Ugu District Municipality: Accomplishments (3)
Ugu District Municipality, Umuziwabantu Local (Kwa Maci)
Status of Kwa-Xolo Fresh Produce Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
5 member coop (3 women, 2 men, 2 youth)
10 potential jobs to be created;
Coop registered and received CIS funded material and has not planted and harvested.
Land preparation done awaiting installation of irrigation and fencing.
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support.
Ixolo Fresh produce market targeted for sale of produce.
Prospects for success exist once outstanding support provided to the cooperative.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fence purchased not installed;
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin & ablution facility
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Working capital
Total amount required to bring project into operations
R 950K

19. Ugu District Municipality: Accomplishments (4)
Ugu District Municipality, Umuziwabantu Local, Harding, (Ward 9)
Status of 12 Ulimo Agricultural Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
10 member coop (5 women, 5 men)
10 potential jobs to be created;
Coop registered and received CIS funded material and has planted and harvested.
Coop has sold produce (2 loads) and generated revenue of R 19k. Projected revenue: 256K
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support.
Requiring access to market their produce. Low demand for cabbage during December period.
Prospects for success exist once outstanding support provided to the cooperative.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fence purchased not installed;
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin & ablution facility
Computer and Furniture
Convert letter of intent to uptake agreement for market access
Working capital
Total amount required to bring project into operations
R 950K

20. Ugu District Municipality: Accomplishments (5)
All stakeholders (Ugu District Municipality, LED for Local Municipality, Provincial DAFF, Provincial COGTA, Provincial Rural Development and Land Reform and Provincial Water and Sanitation) are supportive of the rollout of the two Abalimi Agricultural Cooperatives at Ugu District Municipality.
Agreement's reached with Ugu District Municipality:
District agreed to enter into Partnership Implementation Agreement with DSBD, but will broaden the scope of areas of collaboration
Agreement currently subjected to consultation process with all stakeholders;
Integrate 4 Agricultural Cooperatives to the IDP
Agreement to link the project with Agri-park project to leverage resources and access to market;
Agreement will include the utilisation of the Inhlabamkhosi Training Centre and Ugu Fresh Produce;
Agreed to establish the Steering Committee to drive implementation, monitor and report progress;
Seda Branch agreed to assist with technical and management training and financial system development.
Formulated business plans for the four cooperatives by Kohwa were made available to enable the Steering Committee to drive rollout. Its first operational meeting to take place during March 2017 to solicit support from all key stakeholders.

21. Harry Gwala District Municipality Accomplishments
Harry Gwala District Municipality, Umzimkhulu, Ethembeni,
Status of Ncebazakhe Women Multipurpose Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
5 member coop (all women)
10 potential jobs to be created;
Coop registered and received CIS funded material and has not planted and harvested.
Lack borehole, water rights and tractor for soil preparation.
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support.
Requiring access to market their produce once planted.
Prospects for success exist once outstanding support provided to the cooperative.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fence purchased not installed;
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin and ablution facility
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Working capital
Total amount required to bring project into operations
R 950K

22. Harry Gwala District Municipality: Accomplishments (2)
Harry Gwala District Municipality, Umzimkhulu, Readsdale,
Status of Selulele Agricultural Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
7 member Coop (all women, 2 youth)
10 potential jobs will be created;
Coop registered and received CIS funded material and has planted and harvested spinach.
Transport provided by provincial Department of agriculture. Still selling spinach to the local Spar.
Revenue still not known. Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support.
Prospects for success exist once outstanding support provided to the cooperative.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fence purchased not installed;
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin & ablution facility
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Working capital
Total amount required to bring project into operations
R 950K

23. Harry Gwala District Municipality (3) Accomplishments (3)
All stakeholders (Harry Gwala District Municipality, LED for Local Municipality, Provincial DAFF, Provincial COGTA, Provincial Rural Development and Land Reform and Provincial Water and Sanitation) are supportive of the rollout of the two Abalimi Agricultural Cooperatives at Harry Gwala District Municipality.
Agreement's reached with Harry Gwala District Municipality:
District agreed to enter into Partnership Implementation Agreement with DSBD, but will broaden the scope of areas of collaboration
Agreement currently subjected to consultation process with all stakeholders. Revert back to DSBD for signing;
Agreed to Integrate 2 Agricultural Cooperatives to the IDP
Agreed to link the project with Agri-park project to leverage resources and access to market;
Agreed to establish the Steering Committee to drive implementation, monitor and report progress;
Seda Branch committed to assist with technical and management training provision and financial system development. SEDA to provide protecting clothing to Selulele Cooperative.
Formulated business plans for the two cooperatives by Kohwa were made available to enable the Steering Committee to drive rollout.
First sitting of Steering Committee meeting to take place during March 2017 to leverage support from all key stakeholders.

24. Umgungundlovu District Municipality: Accomplishments
Umgungundlovu District Municipality, Hardingdale farm, Woodlands
Status of House of Glory Agricultural Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
5 member coop (all youth members)
10 potential jobs to be created;
Coop registered and received CIS funded material and has not planted and harvested.
Soil preparation was done but not used due to lack of installation of irrigation system and lack of security. Security person employed in order to mitigate security risk
Transportation from the residents of members to the farm need to be funded;
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support.
Requiring access to market their produce.
Prospects for success exist once outstanding support provided to the cooperative.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fence purchased not installed;
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Admin& ablution facility
Pack house & Equipment and Movable Assets
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Working capital
Total amount required to bring project into operations
R 950K

25. Umgungundlovu District Municipality: Accomplishments (2)
Umgungundlovu District Municipality, Impendle, Kwa – Nxamalala, Ward 3
Status of Farmline Food Primary Cooperative, Ltd
Fresh High Value Vegetable Production (1 hectare) and Sales
Development Status
Support already provided
Support required
5 member coop
10 potential jobs to be created;
Coop registered and received CIS funded material and has not planted and harvested.
Land preparation done and still to install irrigation system.
Business plan by Kohwa with financial costing is formulated and made available to stakeholders to provide support.
Requiring access to market their produce.
Prospects for success exist once outstanding support provided to the cooperative.
R 350K CIS Funding by DSBD (8/02/2016):
Irrigation scheme purchased;
Fence purchased not installed;
Start up inputs (seeds and chemicals) purchased
Technical support to start project funded
Registration of Coop
Soil testing done
Water testing done
Letters of intent from market (i.e. Massmart, Spar, & Pick n Pay) available provided by Kohwa
Pump house
Septic tank
40 foot refrigerated container
40 Foot non-refrigerated container
Back up reservoir 100 cubic meters
Security house
Electricity
Pack house & Equipment and Movable Assets
Admin & Ablution facility
Convert letter of intent to uptake agreement for market access
Computer and Furniture
Working capital
Total amount required to bring project into operations
R 1.1m

26. Umgungundlovu District Municipality: Accomplishments (3)
All stakeholders (Umgungundlovu District Municipality, LED for Local Municipality, Provincial DAFF, Provincial COGTA, Provincial Rural Development and Land Reform and Provincial Water and Sanitation) are supportive of the rollout of the two Abalimi Agricultural Cooperatives at Umgungundlovu District Municipality.
Agreement's reached with Umgungundlovu District Municipality:
District agreed to enter into Partnership Implementation Agreement with DSBD, but will broaden the scope of areas of collaboration;
Agreement currently subjected to consultation process with all stakeholders. Revert back to DSBD for signing;
Agreed to Integrate 2 Agricultural Cooperatives to the IDP of municipality
Agreed to link the project with Agri-park project to leverage resources and access to market;
Agreed to establish the Steering Committee to drive implementation, monitor and report progress. But must be sub-set part of Committee for Agri-park project;
The sitting of the Steering Committee will take place with Agri-park Committee
Seda Branch to assist with technical and management training provision and financial system development.
Formulated business plans for the two cooperatives by Kohwa were made available to enable the Steering Committee to drive rollout.
The Department of Agriculture has already assessed the two cooperatives and has committed to provide support in line with its mandate.

27. Summary
All stakeholders that participated in all the 5 district municipalities are supportive of the rollout of the 12 Abalimi Agricultural Cooperatives pilot project.
Agreement's reached with all the 5 districts in KZN entails:
All districts support the 12 Abalimi Agricultural Cooperative pilot project;
All districts together with their respective local municipality agreed to enter into Partnership Implementation Agreement with DSBD, but seek to broaden the scope of areas of collaboration;
All districts requested to subject the proposed agreement to consultation process with all relevant stakeholders.
All districts promised to revert back to DSBD for signing of the agreement before the end of March 2017;
Districts agreed to Integrate all the 12 Abalimi Agricultural Cooperatives to the IDPs of both local and district municipalities.
Districts agreed to link the Abalimi project with Agri-park project to leverage resources and access to market;
Districts agreed to establish the Steering Committee to drive implementation, monitor and report progress.

28. Summary (2)
Agreement's reached with all the 5 districts in KZN entails, cont.:
All districts agreed to give business opportunities to cooperatives through the 30% set aside and Agri-park.
Business plans for all the 12 cooperatives were formulated by Kohwa and made available to all districts to enable the Steering Committee to drive rollout
All Seda Branches to assist with technical and management training and financial system development to the project.
District Agency such as ILembe Agency and Harry Gwala Enterprise Development Agency will contribute in supporting Abalimi Agricultural Cooperatives by providing funding and access to market support.
Provincial Department of Economic Development has also agreed to provide contribution in supporting the 12 Abalimi Agricultural cooperatives.
Challenges facing cooperatives are almost generic: infrastructure, pack house and its equipment, water rights, access to markets (uptake agreement, 30% set aside) and working capital. For almost all cooperatives, the additional cost for making cooperatives to be functional is around R950K (articulated in the business plan for each cooperative).

29. Summary (3)
The issues that are exceptional entail, land lease, and borehole, etc.
The additional total cost required to bring the 12 Abalimi Agricultural Cooperatives to plant, harvest and market their produce will cost around R10.6m.
However, the R10.6m requires that stakeholders in the 5 districts and provincial departments in line with their mandate should contribute to ensure success of the project.,
Strong technical support should be provided to the Cooperatives to ensure success in farming and access to market. SEDA, LGSETA and other relevant stakeholders will play a meaningful role in this regard.

30. Plan of Action – What the Department committed to do
Tasks
Status
End Date 1.
Appoint a Project Manager for the Abalimi Agricultural Cooperatives project to manage and ensure coordination of the implementation of the project
Done – December 2016
N/A 2.
Write letters to relevant Municipalities (MMs) to introduce Abalimi Agricultural Cooperatives
Done – 10 Feb 2017 3.
Develop Terms of Reference (TOR) or Implementation Plan for each of the Steering Committee
In progress.
To be finalised with the Steering Committee
29 April 2017 4.
Ensure that Abalimi are integrated into the IDP of municipalities to invoke support from other Stakeholders
In progress. Awaiting confirmation from municipalities
31 March 2017 5
Harmonize the working relationship between Kohwa and DSBD on the rollout of Abalimi project
In progress. Addendum to be signed btw. Kohwa & DSBD. Already working with Kohwa

31. Plan of Action – What the Department committed to do, cont.
Tasks
Status
End Date 6.
Establishment of Abalimi Steering Committee in each of the Municipalities
In progress.
To be finalised with municipalities.
31 Jan 2017 7.
Seek approval from National Treasury to shift CIS funds towards investment in advancing a model which will promote the sustainability of funded cooperatives
To be finalized with National Treasury.
31 March 2017 8.
Determine the exact business needs by undertaking due diligence to inform funding
Done. Visited the cooperatives. Business plan provided by Kohwa to address gaps on each coop.
N/A 9.
Unlock and provide working capital informed by the due diligence
To be finalised with the Abalimi Steering Committees

32. In progress. To be done during the launching period.
Plan of Action – What the Department committed to do, cont.
No.
Tasks
Status
End Date
10.
Sign Transversal Agreements coupled with Implementation Plans with Municipalities
In progress.
Draft Agreement favourably received in all DMs. Under discussion
31 March 2017
11.
Develop concept document to be approved & supported by the relevant National & Provincial Departments
In progress. To be finalized in the Inter-governmental structures wherein DSBD meet with all Depts.
12.
Work with municipality to popularize the project by launching the project during harvest period
In progress. To be done during the launching period.
31 August 2017

33. “
THANK YOU.