1. Portfolio Committee on DAFF MR. MDLALOSE Z.
BRIEFING ON THE PERFORMANCE ACCORDING TO THE ANNUAL PERFORMANCE PLAN REPORT 2018/19 OF THE DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES (DAFF)
A presentation by DPME to the
Portfolio Committee on DAFF
MR. MDLALOSE Z.
CHIEF SECTOR EXPERT: EMVIRONMENT
13 March, 2018

2. Structure of presentation
2018/11/08
Structure of presentation
Purpose & Context
Chapter 6 of NDP
Outcome 7 and NDP Priorities
NDP and Agriculture potential
NDP and DAFF Programmes sub-outcomes
NDP and DAFF Strategic Plan
Cross cutting functions for Rural Economy
DAFF Special project ( Operation Phakisa)
Previously identified issues
2018/19 APP Analysis
Comments and Recommendations

3. Purpose & Context
To brief the Committee on DPME’s assessment of DAFF’s Strategic Plan and the Annual Performance Plan 2018/19 as tabled on the 13th March 2018.
Specific areas of focus are as follows:-
Alignment of SP and APP with objectives of the NDP and priority outcomes in MTSF
Technical Compliance with National Treasury Regulation in the compilation of the SP and APP

4. Chapter 6 of the NDP on Inclusive Rural Economy
The NDP serves as the umbrella for the cross-cutting strategies i.e., New Growth Path, Industrial Policy Action Plan and other government programmes and plans
Through the development of the Medium-term Strategic Framework (MTSF), critical actions and key outputs aimed at putting the country on a positive trajectory towards achievement of the NDP were identified for delivery by departments over the period
The NDP serves as the umbrella for the cross-cutting strategies i.e., New Growth Path, Industrial Policy Action Plan and other government plans
The MTSF has key performance targets and indicators from the NDP to be achieved by Government over the 5yr period
Therefore, DAFF’s strategic plan should be grounded in the MTSF

5. Chapter 6 of NDP highlights Agriculture Potential
Agriculture’s Potential = 1 Mil New Jobs by 2030 through:
Expanding irrigated agriculture—1,5 Mil ha expanded by at least another ha to 2 Mil ha;
Cultivating under-utilised land in communal areas and land reform projects for commercial production;
Supporting agricultural industries and regions with the highest growth and employment potential;
Supporting upstream and downstream job creation;
Finding creative opportunities for collaboration between commercial and communal farmers and complementary industries;
Developing strategies that give new entrants access to value chains

6. Outcome 7 seeks to implement Chapter 6 of the NDP through 6 sub-outcomes
1: Improved land administration and spatial planning for integrated development in rural areas 2: Sustainable land reform contributing to agrarian transformation 3: Improved food security ( DAFF Led) 4: Smallholder producers’ development and support (technical, financial infrastructure) for agrarian transformation ( DAFF Led) 5: Increased access to quality infrastructure and functional services, esp. in education, health care and public transport in rural areas 6: Growth of sustainable rural enterprises and industries- resulting in rural job creation

7. Linking NDP to DAFF’s Strategic Planning (1)
The DAFF’s strategic planning process was informed by the MTSF for Outcomes 4, 7, 10 and 12
Outcome 4: Decent employment through inclusive economic growth
Outcome 7: Comprehensive rural development and food security
Outcome 10: Protect and Enhance out environmental assets and natural resources
Outcome 12: An efficient, e3ffective and development oriented public service

8. Strategic Goals and Objectives
The Strategic Plan for DAFF has 4 strategic goals, 11 strategic objectives, spanning 6 programmes as follows:
Programme 1: Administration
Programme 2: Agric. Production, Health & Food Safety
Programme 3: Food Security and Agrarian reform
Programme 4: Trade Promotion and Market Access
Programme 5: Forestry & Natural Resource Management
Programme 6: Fisheries

9. Programme 1: Administration (1)
Need to be linked to Outcome 12, sub-outcomes 1-7. Currently the programme is not fully aligned with the sub-outcomes
A stable political-administrative interface
A public service that is a career of choice
Efficient and effective management and operations systems
Procurement systems that deliver value for money
Increased responsiveness of public servants and accountability to citizens
Improved inter-departmental coordination and institutionalisation of long-term planning
Improved mechanisms to promote ethical behaviour in the public service

10. Programme 1: Administration (2)
Activities and indicators for implementation of policies (Outcome 12) should have been included in the sub- programmes per Strategic Objective:
SO 1.1: Ensure compliance with statutory requirement and good governance practices
SO 1.2: Strengthen the support, guidance and interaction with stakeholders
SO 1.3: Strengthen institutional mechanisms for integrated policy planning, monitoring and evaluation in the sector

11. Rural Economy Sector: Cross-cutting functions and dependency
Agrarian Reforms depend heavily on the other sector and policy frameworks.
Agrarian reforms requires relevant skills and technology and financial incentives (DHET, DST and NT)
Water permits, services and redress: water allocation permit to the PDI’s (DWS);
Research and development, innovations for climate resilient irrigation systems (DEA and DST);
Industrialisation and commercialisation of rural economy development, Market and food agro- processing industry development to sustain rural economy (DTI, EDD and DSBD); and
Inter-governmental relations and cross-cutting functions objectives coordination and synchronisation is critical for poverty , inequality and unemployment reduction.
Agrarian reforms
Improved farming: technology, finance and skills
Availability of Water services
Availability of productive Land

12. Fast track implementation on the OPERATION PHAKISA: Agriculture, Land Reform and Rural Development, and the 9-Point Plan.

13. Operation Phakisa: Agriculture, Land Reform and Rural Development: 27 Phakisa Initiatives 6 Work Streams
Unlocking water to expand horticultural production (Horticulture)
Fortified veld management for sustainable livestock production (Livestock)
Value Chain Development and
Market Access
Access to commercial and alternative livestock value chains (Livestock)
Integrated grain value chain (Grain)
Inclusive horticulture value chain participation model (Horticulture)
Rural enterprise development (Rural Development)
Trade Promotion, Retention and Optimisation (Horticulture)
Optimising the Management of Natural Resources
Coordination and Knowledge Management
Harmonization of legislation affecting the agricultural value chain (Producer Support)
Strategic leadership & coordination for structural transformation (Rural Development)
District Land Reform Delivery Centre (Land Reform)
National Agricultural Decent Work Programme (Labour)
Strengthening legal compliance mechanisms (Labour)
National livestock census, animal ID, & traceability (Livestock)
Grain Know How (Grains)
Demand led public/ private agri-skills unit (Labour)
Livestock skills and knowledge upgrading programme (Livestock)
Enhanced animal health through revolutionary veterinary services (Livestock)
Ndimo Desk (Producer Support)
Developing Skills and Capacity
Financial partnerships for accelerated and sustainable Land Reform (Land Reform)
Re-engineering agricultural development finance (Producer Support)
Unlocking finance for grains thru PPP (Grains)
Dynamic Business Model for Producer Support (Producer Support)
Reconfiguring Space & Promoting Functional Rural Settlement
Fast tracking the settlement of outstanding restitution claims in a sustainable manner (Land Reform)
Accelerated Land Development and Redistribution Initiative (ALDRI) (Land Reform)
Promoting and protecting rights of persons living under insecure tenure (Land Reform)
Basic Services (Rural Development)
Farm worker house and land ownership programme (Labour)
Funding and Finance

14. Previously identified issues
Outcome 4, Sub outcome 2:
The productive sectors account for a growing share of production and employment and have 2 actions for which DAFF is responsible, BUT not captured in the APP.
Sub-outcome 1 (Outcome 7)
The Preservation and Development of Agricultural Land Act is not mentioned in the APP, yet the Act needs to be expedited to enable protection of high value agricultural land from other uses, such as for golf estates and mining
Sub-outcome 3 (Outcome 7) has 2 indicators, Number of HHS benefitting from food and nutrition initiatives,
Number of HHS supported with Food Production initiatives implemented under the comprehensive food security and nutrition strategy
However, only number of HHS benefiting is mentioned in the APP. DAFF need to clarify whether these 2 measures are one and the same.

15. Previously identified issues
Sub-outcome 3 (Outcome 7): 2 indicators in MTSF, not in APP
Number of new hectares used by smallholder producers, and number of projects to support the revitalization of irrigation schemes implemented
Outcome 4, Sub outcome 2:
The productive sectors account for a growing share of production and employment and have 2 actions for which DAFF is responsible, BUT not captured in the APP.
These are: Implementation of the Comprehensive Africa Agriculture Development Programme (CAADP)
Implementation of Agriculture, Forestry and Fisheries Market and Trade Development Strategy

16. DAFF Annual Performance Plan (APP): 2018/19 Report
Alignment of Strategic Plan (SP) and Annual Performance Plan (APP) with objectives of the NDP and priority outcomes in MTSF
Technical Compliance with National Treasury Regulation in the compilation of the SP and APP Agriculture’s Potential = 1 Mil New Jobs by 2030 through:
Expanding irrigated agriculture—1,5 Mil ha expanded by at least another ha to 2 Mil ha;
Cultivating under-utilised land in communal areas and land reform projects for commercial production;
Supporting agricultural industries and regions with the highest growth and employment potential;
Supporting upstream and downstream job creation;
Finding creative opportunities for collaboration between commercial and communal farmers and complementary industries;
Developing strategies that give new entrants access to value chains.

17. DAFF Annual Performance Plan (APP) Key issues
Programme 1: Administration
Despite several calls on the expedition of the Preservation and Development of Agricultural Land Framework Bill, it is not on the annual plan for 2018/19, but planned for 2019/20 to be submitted to the Minister.
This need to be expedited, for the development of this Bill is nearly 2 years behind schedule. It is important not only to enable protection of high value land from other uses, but also to ensure that other Acts can be implemented to support Land Redistribution and Restitution and equitable access to land. See the section on the relevant court rulings in the APP
Despite commitment at SONA in February 2017 the amendments to the Preservation and Development of Agricultural Land Framework (PDALFA) has not yet been submitted to Cabinet.

18. DAFF Annual Performance Plan (APP) Key issues
Programme 3: Food Security and Agrarian Reform
Some strategic objective five year targets are not measurable.
The strategic objective five year target “National food and nutrition security interventions coordinated:” The five year target is not SMART and is not clear what “interventions coordinated” entails
Further, the same strategic objective five year target is provided as the annual target for each year of the MTEF period
The number of hectares cultivated /planted for food is low comparing it with MTSF target of 1 million ha and also looking at the quarterly hectares, it appears the land is only cultivated once a year.
The cumulative total which need to be cultivated must not add up to 1 million ha over the 5 years, but in total after the 5 years a total of 1 million ha are cultivated seasonally.
This need to be rectified in the new MTSF and need to be rephrased to accommodate the contribution of DAFF to the “1 million ha of under-utilised land in communal areas cultivated for production” and “not planted for food”.

19. DAFF Annual Performance Plan (APP) Key issues
Programme 4: Trade promotion & market access
Some annual targets remain constant in each year of the medium term period.
The target for certification programmes implemented annually need to be rephrased in a SMART way to be able to count for the number of farmers compliant with SA-GAP and thus budget accordingly.
DAFF should provide targets which indicate the progressive realisation of the implementation of the SA GAP certification programme.
Reports have often been used as targets. The use of a report does not provide a realistic indication of the core work of the programme (unless the report is a mandated output as a legislative or policy requirement). Example the SA-GAP certification programme report.
DAFF should identify actual outputs which inform reports or recommendations in the report which is a reflection of the core performance of the programme. This recommendation is applicable to all the other programmes of the department example AGRIBEE Sector code undertakings, Forest sector code, Market opportunities, trade agreements, etc.

20. Annual Performance Plan (APP) KEY ISSUES
. Programme 5: Forestry & Natural Resource Management
Five year targets for Agro-Forestry Strategy Framework and Climate change Adaptation and Mitigations Agriculture, Forestry and Fisheries are not SMART. “Implementation is not quantified and measurable”
Further, the indicator for Agro-forestry Strategy over the medium term targets remain constant over the MSTF period.
The department should also revise targets for the indicator for example using indicators in the strategy in each year of MSTF period.
Clarity is needed for Recommissioning Forest plantations where the legal entities are establish in a Financial Year and then the replanting in the other year, this does not talk to the performance indicator?
Programme 6: Fisheries
The strategic objective five year target and strategic objective indicator is not aligned: “Recovery plans of prioritized fish stocks” for the strategic objective indicator “Promote, conserve, protect and recovery of depleted natural resources by 2020”
The same five year target is provided as annual targets for each year of the medium term period.

21. Concluding comments
Though the department has embarked on some strategies (such as mechanization and drought assistance) aimed at stimulating production by smallholders, DAFF’s programmes are not having significant impact on key indicators :
Transforming the sector through new entrants becoming successful commercial farmers.
Some support packages offered by government tend to cause dependency.
Growth of the industry both in terms of contribution to GDP and employment
Household food security, and utilisation of agricultural land and participating in agricultural production activities causes of the problem appear to include weak relationships between government and the industry and sector departments alignments or coordination.

22. Concluding comments
The uncertainty regarding the transfer of RECAP is impacting negatively on the ha of land cultivated by PDIs and threatens food security.
Despite several calls on the expedition of the Preservation and Development of Agricultural Land Framework Bill, it is not on the annual plan for 2018/19, but planned for 2019/20 to be submitted to the Minister. This will impact negatively on the implementation and support to the Land Redistribution and Restitution and equitable access to land
Alignment of activities and government programmes objectives by the sector departments needs to be synchronized for efficient resource allocation and high impact deliverables.
DAFF APP outputs targets should make provisions for outcomes and impact deliverables in line with NDP targets to unemployment, poverty and inequality reduction using the collaborative effort from the sector wide initiatives.

23. Recommendations
Greater effort is needed to improve performance towards the MTSF targets so as to ensure reasonable achievement on land reform for agrarian transformation, on food and nutrition security, and on rural enterprises development
Public and private; sector departments’ coordinating departments as well as the supporting departments commitments, resources and financial allocation intensification in this regard, given the rising levels of poverty from 11 to 14 Mil people as recently reported by Stats SA (GHS: August, 2017)
The 3-feet plans of Operation Phakisa on Agriculture, Land Reform and Rural Development should be implemented: More urgency required in the establishment implementation structure, governance; (cross functions)accountability matrix and finance mechanism for this Operation Phakisa.
Twice as many respondents received extension advice from the provincial department

24. Recommendations
Responding to droughts disaster, support measures and responses should have increased including the risk and disaster response exacerbated by the droughts.
The MTSF targets not aligned to the strategic planning and thus 27 strategic initiatives for Operation Phakisa: Agriculture, Land Reform and Rural Development are not include in the strategic objectives in the APP, thus it can be derailed due to a lack of budget allocation and commitments by the mandate department.
Rephrase APP indicators and targets to correlate with MTSF indicators and targets
Twice as many respondents received extension advice from the provincial department

25. I Thank You
Go to for PME documents including narrative guide to outcomes approach, outcomes documents
and delivery agreement guide
Direct contact:
Mr Z Mdlalose.
Acting Outcome Facilitator Rural Development
Tel:
I thank you