1. AFRICAN RENAISSANCE AND INTERNATIONAL CO-OPERATION FUND ANNUAL REPORT 2014/15 Presentation to Portfolio Committee
14 October 2015

2. Introduction
I am pleased with the steady progress we are making in utilizing the ARF to meet policy and strategic objectives of our government.
The ARF has made significant strides in moving away from transfer payments to recipient countries towards ensuring that goods and services are procured locally.
This new approach has led to a significant decrease in disbursement due to strengthening of governance structures.
The Lesotho humanitarian project provided assistance to Basotho people while ensuring that there was a significant contribution to South African farmers. All commodities were procured locally and 40% of grain for production on maize meal was procured from small holder farmers.
South Africa continues to be at the forefront of promotion of democracy and good governance by participating in SADC Election observer missions. Observers were deployed for elections in Mozambique, Botswana, Namibia, Zambia and Mauritius.

3. ARF Annual Performance report 2014/15
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. 
Twenty one (21) 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
Five 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.
Processed payments totalling R with respect to South African deployment of election observer mission to Mozambique, Botswana, Namibia, Zambia and Mauritius.

4. 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
Processed payment of R for implementation of Cuban Medical Brigade Project in Sierra Leone.
Processed payment of R for Rice and Vegetable Production Project in Guinea (Conakry). 
Capacity-building
100% of approved disbursement to support capacity-building processed timeously as per the objectives of the project
Processed payment of R for African Ombudsman Research Centre Project to the Public Protector

5. 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
Processed payment of R as final payment for humanitarian assistance to Niger.
To contribute to PCRD
100% of approved disbursement to support PCRD processed timeously as per the objectives of the project
Processed payment of R as South Africa’s contribution to the SADC Secretariat for the Lesotho peace process.

6. ARF Financial report 2014/15 R'000
Accumulated surplus as at 31 March 2014
Appropriated funds
Interest received
Approved Grants for 2014/15
( )
Available funds as at 31 March 2015

7. ARF Financial report 2014/2015
2014/15 Approved projects:
(a) Humanitarian assistance to South Sudan R
(b) Drought relief in Namibia R
(c) Humanitarian assistance to Palestine R
(d) Emergency relief to Ebola disease R
(e) South Africa contribution to Lesotho peace
process R

8. Governance structures
Role
Performance
Portfolio Committee
Oversight on public entity
The chairperson of ARF briefed the committee three times in the financial year
Executive Authority
Performance monitoring
The ARF submitted the Strategic Plan , APP2015/16, four quarterly reports , Annual report and Financial statements 2014/15
ARF Advisory committee
Recommendation of projects to the Executive Authority
Held five meetings, processed 21 project proposals and recommended 10 project proposals.
Risk Committee
Provides advice to Accounting Authority of effectiveness of enterprise wide risk management
Developed the risk management policy and strategy.
Audit Committee
Review of financial and performance information
Held 6 meetings is during the financial year to review quarterly reports, financial statements and audit outcomes.

9. Governance The fund is managed through the control of the DG of DIRCO.
The DG established a full time secretariat to monitor and evaluate projects, facilitate agreements and disbursements and provide secretarial services to Advisory Committee.
The Advisory Committee, through the Secretariat, regularized the relationship between Fund and department by means of Operational Framework.
The terms of reference for the Advisory committee and Secretariat were finalized and signed.
The risk and audit committees were established during the financial year.

10. Governance
The irregular expenditure incurred in the financial year was condoned by the Accounting Authority. It relates to projects that are long running with contracts that were irregular from previous periods.
We are addressing the challenge of procurement in remote areas where it is not possible to comply with SCM prescripts.
Finalization of agreements with recipient countries is an ongoing challenge which affects the disbursement of funds.

11. SADPA/PFD bill
The department is perusing efforts to review the legislative framework in order to consolidate international assistance provided by South African government.
The draft Partnership for Development Fund is planned to the tabled before parliament in the 2016/2017 financial year.
The objective of the bill is to support South Africa’s outgoing development cooperation policy by providing funding and technical support for development initiatives.

12. THANK YOU