1. PRESENTATION TO SELECT COMMITTEE
NATIONAL DEVELOPMENT AGENCY
PRESENTATION TO SELECT COMMITTEE
ON SOCIAL SERVICES
Godfrey Mokate
Chief Executive Officer
National Development Agency
20 June 2006

2. STRUCTURE OF PRESENTATION
BACKGROUND
Formation
Mandate

3. STRUCTURE OF PRESENTATION (continuation….)
PERFORMANCE IMPACT
Financial Allocations
Impact on Poverty
Grant Commitments
Grant Disbursements
Magnitude of Poverty

4. STRUCTURE OF PRESENTATION (continuation….)
Development Needs of CBOs and NGOs
Key Issues from 2005/6 Annual Report
Organisational Challenges
External Audit Issues
Financial Highlights

5. STRUCTURE OF PRESENTATION
LOOKING FORWARD – NDA STRATEGY 2006/11
Strategic Goals and Objectives
Macro Indicators
Business Model
Balanced Scorecard

6. BACKGROUND

7. FORMATION
The NDA was:
Preceded by an interim agency, the TNDT, established in
1996.
A product of social dialogue between state and CSOs.

8. Dialogue was necessitated by need to :
Cultivate a collaborative as opposed to adversarial
relationship between government and civil society
organisations.
Respond to diminishing development resources for NGOs
and CBOs as a result of bilateral relationship with
international donors.
Establish institutional mechanism for policy dialogue.
Mitigate the impact of CSO “braindrain” to government.

9. NDA Mandate
1 )The primary mandate of the NDA is to contribute towards the eradication of poverty and its causes by granting funds to civil society organisations for the purpose of :
Carrying out projects or programmes aimed at meeting
development needs of poor communities; and
Strengthening the institutional capacity of other civil
society organisations involved in direct service provision
to poor communities.

10. 2) The secondary objects of the NDA (continue……)
To promote
Consultation, dialogue and sharing of development experience between civil society organisations and relevant organs of state; and
Debate on development policy;
b) To undertake research and publication aimed at providing the basis for development policy.

11. Grant Trends / Allocations to the NDA
2001/2
2002/3
2003/4
2004/5
2005/6
2006/7
2007/8
R’m %
Grant
92.7
96.7 4%
103.2 7%
109 6%
121.5
11%
128.7
135.2 5%

12. NDA Impact on Poverty
Since March 2000, the NDA has committed R640m to projects in
economic development, food security, community health and
education.
This has benefited direct households.
Indirectly benefited poor people.

14. South African Government Grant Commitments:2004/5
Province
Number of projects Approved
Amount Committed per Province
Eastern Cape 6 R
Free State 7 R
Gauteng 10 R
Limpopo 12 R
Kwa-Zulu Natal 4 R
Mpumalanga 16 R
North West R
Northern Cape R
Western Cape R
TOTAL R

15. South African Government Grant Commitments: 2005/6
Province
Number of Projects Approved
Amount Committed per Province
Limpopo 18 R
Mpumalanga 11 R
Eastern Cape 36 R
Northen Cape 3 R
Western Cape 8 R
Kwa-Zulu Natal 15 R
North West 2 R
Free State R
Gauteng 4 R
TOTAL 90 R

16. R61.5m R 84 646 481.59 Projects Disbursements 2004/5
(1 April 2004 – 31 March 2005)
2005/6
(1 April 2005 – 31 May 2006)
R61.5m R

17. The NDA definition of Poverty extends to the following variables:
Income
Employment
Education
Infrastructure
Assets
Access to social services

18. Level of poverty
The current estimates of poverty by HSRC show that the proportion of people living in poverty in South Africa is as follows:-
Approximately 57% of individuals in South Africa were living below the poverty income line in 2001, unchanged from 1996.
This translate into 26m people being classified as poor.

19. Table 1. Poverty Distribution by Province
No. of poor persons (million)
%of population in poverty
Poverty gap (R billion)
Share of poverty gap
Eastern Cape
4.6
72%
14.8
18.2 %
Free State
1.8
68%
5.9
7.2 %
Gauteng
3.7
42%
12.1
14.1%
Kwa-Zulu Natal
5.7
61%
18.3
22.5%
Limpopo
4.1
77%
11.5
Mpumalanga
57%
7.1
8.7%
North West
1.9
52%
6.1
7.5%
Northern Cape
0.5
1.5
1.8%
Western Cape
1.4
35%
5.0%
South Africa
25.7
81.3
100.0%

20. Development Needs of CBOs and NGOs
Strengthening of leadership, management and technical capacity to improve service delivery.
Platform for policy dialogue to influence government development policy
Funding to implement programmes that eradicate poverty and bridge the gap between first and second economy.

21. Development Needs of CBOs and NGOs
Information and knowledge sharing of “best practice” in development.
Access to markets for income generating projects.
Procurement opportunities from government.
Support for community wide policy and advocacy initiatives.

22. Key Issues from Unauditted 2005/6 Annual Report
Goals, Objectives and Indicators
The 2011 Strategic Plan with clear indicators for impact assessment, monitoring and evaluation.
Organisational stability established and maintained through effective management of NDA risks.
Profiling of NDA raised and its credibility improved.

23. Continuation……………………………………
Projects management systems improved to clear existing payment backlogs.
Support of NDA multi-year indicative programme by EC Delegation.
Research to inform the development of poverty eradication strategy conducted and implemented.

24. Continuation……………………………………
Corporate governance improved and delegations established
Resource mobilisation strategy and plan developed
NDA systems improved.

25. Achievements Against Goals
2006 – 2011 Strategic Plan revised, completed and approved by the Minister of Social Development.
Backlogs on labour and corporate governance cases addressed and resolved.
Improved profile through strategic engagements with stakeholders and media.
Projects Turn-Around time improved from six (6) to four (4) months

26. Continuation…………
Negotiation with European Commission and National Treasury currently underway.
Research agenda has been defined.
Corporate governance has improved through clear policies, procedures and delegation of authority.
Research mobilisation strategy has been prioritised for current financial year.
Business Process Mapping has been concluded with a “to be” model being designed.

27. Achievements and Highlights 1 April 2005 – 31 March 2006
Appointment of a permanent CEO in June.
Finalization of matters arising out of the forensic investigation.
Grant funding commitment of R68.9m to income generating and food security projects.
Participation in the National Program for Creation of Small Enterprises and Jobs in Second Economy – ASGISA.
Launch of Request for Proposals (RFP) for CSO Capacity Building.
Finalisation of strategic plan 2006/11

28. External Audit Issues Withdrawal of projects previously committed,
Budget for 2005/2006
Forensic investigation,
Key reconciliations and
Payroll reconciliation

29. Challenges
Organisational instability in terms of labour relations.
Backlogs in projects payments.
Dependency on single source of funding.
Unclear business model.
Corporate governance.

30. Challenges (continuation…)
Level of funding allocation compared to level of demand. The
NDA receives funding requests of approx. R750m per annum.
Building organizational capability and competencies - human
and institutional.
Review the NDA Act to allow responsiveness with regard to
promoting “social entrepreneurship” - support to family led
enterprises.

31. Looking forward – NDA Strategy 2006/11

32. NDA’S STRATEGIC GOALS
Organisational Transformation (internally focused)
Partnering for Development (externally focused)
  Resource Mobilisation for poverty eradication (externally focused)
Community empowerment for sustainable development (externally focused)
Communication of credible and relevant researched development information (both internally and externally focused)

33. Macro Indicators
Macro indicators speak to the high-level, externally focused objectives that will be
achieved through implementation of NDA’s strategic goals as defined in the
Organisation Scorecard. The Macro indicators and associated strategic goals are
as follows:
1)    Improved coordination of resource allocation for poverty eradication
2)    Improved economic opportunities for communities in NDA targeted localities
    
3)    Improved social empowerment in NDA targeted localities
       
 4)    Improved capability of targeted CSOs in relation to service delivery
 5)     Increased influence in development policy as it relates to poverty eradication

37. Questions and Comments Thank you for your attention