Minister of Rural Development and Land Reform Budget speech

Minister of Rural Development and Land Reform, Mr Gugile Nkwinti, gave his Budget Vote Speech on the 08 May 2015.

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Honourable Speaker
His Excellency the President of the Republic
His Excellency the Deputy-President of the Republic
Honourable Deputy-Speaker
Honourable Members
Colleagues, Honourable Ministers and Deputy-Ministers
Esteemed Traditional Leaders
Esteemed Guests, Ladies and Gentlemen

On this date in 1996, the Constitution of the Republic was adopted by this august House. We are honoured and privileged to present our Budget Policy Speech on this date in the evolution of our country’s democracy. It is now common cause that when he presented the Constitution to this House and the country, the then Deputy President of the Republic, His Excellency Thabo Mbeki, made his seminal ‘I am an African’ speech.

This is how he introduced his Address:
On an occasion such as this, we should, perhaps, start from the beginning.
So, let me begin.
I am an African.

During his State of the Nation Address on the 12th of February 2015, the President of the Republic, His Excellency, Jacob Zuma, had the following to say in opening his Address: The year 2015 marks 60 years of a historic moment in our history, when South Africans from all walks of life adopted the Freedom Charter in 1955, in Kliptown, Soweto.

They declared, amongst other things, that South Africa belongs to all who live in it, black and white, and that no government can justly claim authority unless it is based on the will of all the people. That was a powerful, visionary and reconciliatory statement which set the tone for the non-racial democracy we have established.

The Politics

Freedom Charter

In its Preamble, the Freedom Charter says: “South Africa belongs to all who live in it, black and white”.  Clause 4 of the Charter says the following: The Land Shall be Shared Among Those Who Work It!

• Restrictions of land ownership on a racial basis shall be ended, and all the land re-divided amongst those who work it to banish famine and land hunger;

• The state shall help the peasants with implements, seed, tractors and dams to save the soil and assist the tillers;

• Freedom of movement shall be guaranteed to all who work on the land;

• All shall have the right to occupy land wherever they choose;

• People shall not be robbed of their cattle, and forced labour and farm prisons shall be abolished.

It is the responsibility of the democratic, developmental state to translate this dictum into a socio-economic reality.

Ready to Govern

As part of its work towards the installation of our democratic dispensation, the ANC developed the Ready to Govern Document, which has four pillars, being the following:

a) to strive for the achievement of the right of all South Africans, as a whole, to political and economic self-determination in a united South Africa;
b) to overcome the legacy of inequality and injustice created by colonialism and apartheid, in a swift  progressive and principled way;
c) to develop a sustainable economy and state infrastructure that will progressively improve the quality of life of all South Africans; and,
d) to encourage the flourishing of the feeling that South Africa belongs to all who live in it, to promote common loyalty to, and pride in, the country; and, to create a universal sense of freedom and security within its borders.

Constitution
The Constitution of the Republic gives concrete expression to the Freedom Charter and the Ready To Govern Document.

In its Preamble it states that:

• We, the people of South Africa,
• Recognise the injustices of our past;
• Honour those who suffered for justice and freedom in our land; and
• Respect those who have worked to build and develop our country; and
• Believe that South Africa belongs to all who live in it, united in our diversity.

We, therefore, through our freely elected representatives, adopt this Constitution as the supreme law of the Republic so as to –

• Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights;
• Lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law;
• Improve the quality of life of all citizens and free the potential of each person; and
• Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations.

Section 25(5) of the Constitution (Act number 108 of 1996) enjoins the State to “take reasonable legislative and other measures, within its available resources, to foster conditions which enable citizens to gain access to land on an equitable basis”. These constitutional imperatives are at the core of the mandate of the Department of Rural Development and Land Reform (DRDLR).

The Policies

The litmus test to all policies, therefore, is whether or not they are redistributive in character. It cannot be that a democratic, developmental state would hope to achieve, as rapidly as possible, a fundamental reversal of the legacy of colonialism and grand Apartheid without being deliberately hands-on in the redistribution of means and factors of production. In this regard, the government has developed a range of policies, with related draft legislation, which will be introduced to Parliament this year; and, has started implementing the laws that have been recently passed by this House. 

Over the past few years we have been consulting with organized agriculture, farm-workers' unions, civil society organisations with interest on land and academics. We are now consolidating the inputs made by these partners. During his State of the Nation's Address, the President announced that the government will conduct fifty pilots on the policy on Strengthening The Relative Rights Of People Working The Land - popularly known as the 50/50 Policy Framework – by 2019; and, that the Regulation of Landholdings Bill, which will introduce land ceilings and prohibit land ownership by foreign nationals, will be submitted to Parliament this year. Policies to these Bills have been the subject of the intense consultations referred to above.

Some individual, as well as groups of, farmers have come forward volunteering to participate in the 50/50 Policy Framework. Proposals assume various forms, within this overall framework of strengthening relative rights of people working the land. We are going to prioritise the acquisition and provision of requisite strategic support to these farms, starting this financial year.

We have seen tremendous activity and interest from the sector: the use of annual rate of turn-over to determine the nature and extent of redistribution and equity (AFASA); an Idea Bank; and, inclusive social compacts (Agri-SA); social accords on living conditions, skills development, education and training and housing (SASA); a funding model - R1 billion for land reform, per year, for the next fifteen years - based on strong credit and business case approvals; the right to choose partners; and, adherence to Chapter 6 of the National Development Plan (BASA/AGBIZ); establishment of farmworkers' Trusts and farm villages, but without separate titles (Sesisonke); and, a 50/50 share equity model in the business, with government providing resources for the one 50% and the WRSA providing the other 50% at low interest rate - 2.5% per annum - and forty years repayment on bank loans (Wildlife Ranching South Africa). There are several other proposals which are being considered, including full land acquisition, followed by a joint venture company in which workers are the majority shareholder.

With regard to land ceilings and the prohibition of land ownership by foreign nationals, there has been outright rejection from the greater part of the sector. This matter has divided the sector across racial and class lines. The lines have become sharply drawn here. The prohibition of land ownership by foreign nationals has drawn a sharp response from, particularly, the Banking Association of South Africa / Agricultural Business Chamber (BASA/Agbiz) and Agri-SA.

The basis of their rejection is that it will drive away foreign investment, not only in the agricultural sector, but in the economy as a whole. We certainly do not agree with this view. Our conviction is that any investor, whether foreign or national, wants policy certainty. Once they understand what the policy is, they adapt accordingly.

We have looked at South Africa's history of land ownership patterns, since the advent of the 1913 Natives' Land Act as well as experience elsewhere in the world, particularly Europe and a few countries in Latin America. Both scenarios are instructive!

The South African experience shows that the aggregate farmland over this period has generally remained stable, being disturbed by fluctuations in the number of people entering or leaving farming, influencing in turn, the fall of average farm size from 950ha and 750ha (between 1918 and 1950); and, between 750ha to over 2 000ha, currently. In Europe, the general average farm size is 14ha, while in Latin America it ranges between approximately 72ha (Brazil) and 84 ha (Chile).

Closer to home, the general trend is that of prohibition, unless foreign nationals joined up with South African nationals, provided the latter is the majority shareholder in such joint venture.

Taking these scenarios into account; the general views shared at our recent National Land Tenure Summit; the pronouncements by President Zuma during his State of the Nation's Address; and, the historical need to address the brutal legacy of colonialism and grand Apartheid, we have come up with the following policy proposals on the ceilings, for both natural and juristic persons:
a) SMALL SCALE FARMS. The ceiling for a viable commercial small scale farm should be 1 000ha;
b) MEDIUM SCALE FARMS. The ceiling for a medium scale viable commercial farm should be 2 500ha; and,
c) LARGE SCALE FARMS. The ceiling for a large scale viable commercial farm should be 5 000ha.

Any excess land portions between each of these categories - small scale and medium scale; medium scale and large scale; and, above the 12 000ha maximum, shall be expropriated and redistributed; and compensation will be on the basis of the ‘just and equitable’ principle enshrined in section 25(3) of our Constitution.

We have come up with a SPECIAL CATEGORY to address the 12 000ha maximum announced by the President during his SoNA. We are proposing that this maximum applies only to three categories of land use: forestry, game farms and renewable energy farms, especially wind energy.

Secondly, we think there is merit in AFASA’s proposal on the use of the rate of turn-over. We have come to the conclusion that this option would fit well in circumstances where sugar, grapes, vegetables, fruit and horticulture are concerned. In such cases, however, off-farm equity holdings would be more appropriate; and, we have set the rate of turn-over at R5 million per annum, provided that the share equity for workers is not less than 25% - reference Agri-BEE Code of Good Conduct.

We are of the strong view that these policy proposals would go a long way towards addressing the strategic thrust of land reform, namely, rekindling the class of black commercial farmers which was destroyed by the 1913 Natives' Land Act; that all land reform farms, including communal land, are 100% productive; and, achieving the objectives of the NDP, as rapidly as is possible.

Apart from redistributing land to deracialise ownership, we have to align land relations (patterns of ownership and control) in communal areas controlled by traditional institutions with the Constitution of the land. In this regard, a Bill will be submitted to this House as soon as consultations with all interested parties have been completed; and, a policy finalized. Similarly, a policy is being developed to give full title to households which have been given land under collectives, such as Trusts and Communal Property Associations (CPAs). This move has necessitated an amendment to the Communal Property Associations Act. The relevant Bill will be submitted to the House this year as well.

The Communal Land Tenure and Communal Property Associations policies seek to address the following:

• Clarify the role and responsibility of the State;
• Clarify the role and responsibility of governance structures;
• Establish the accountability system;
• Establish the Investment and Development entity;
• Institutionalise the land use rights of households;
• Clarify the role and responsibility of households; and,
• Protect the land from land sharks.

Here, the will of the people must be tested as to which institution should govern their land on their behalf. Secondly, the litmus test is the socio-economic impact of the institution so selected, on the lives of the people and their communities.

With respect to land controlled by CPAs and Trusts, a full title deed will be transferred to households, whereas in the case of communal land controlled by Traditional Councils, households’ use rights will be institutionalised.

Both instances speak to the One Household One Hectare regime which seeks to address subsistence livelihoods at the household level.

The Strategy

After forming government in 2009, President Zuma established a National Planning Commission (NPC). In the tradition of the ANC, when it sought to collect views of all South Africans about their vision of a future South Africa, which became enshrined in the Freedom Charter in 1955, he assembled a broad spectrum of South Africans to constitute the NPC.

The Commission canvassed views of South Africans from all walks of life. In 2011 it released the Diagnostic Report which preceded the NDP that was released in 2012. During the same year, the nation adopted the NDP.

The NDP introduces its Overview by the following quotation from the Reconstruction and Development Programme (RDP), 1994: No political democracy can survive and flourish if the mass of our people remain in poverty, without land, without tangible prospects for a better life. Attacking poverty and deprivation must therefore be the first priority of a democratic government.

The following are the targets and actions proposed by the NDP:

Targets:

• An additional 643 000 direct jobs and 326 000 indirect jobs in the agriculture, agro-processing and related sectors by 2030.
• Maintain a positive trade balance for primary and processed agricultural products.

Actions:

• Rural economies will be activated through improved infrastructure and service delivery, a review of land tenure, services to small and micro farmers, a review of mining industry commitments to social investment, and tourism investments.
• Substantially increase investment in irrigation infrastructure in Makatini Flats and Umzimvubu River Basin.
• Create tenure security for communal farmers, especially women. Investigate different forms of financing and vesting of private property rights to land reform beneficiaries that does not hamper beneficiaries with a high debt burden.

In pursuit of the ends of these targets and actions of the NDP, the Department developed the Rural Economy Transformation Model. During the SoNA, President Zuma announced that government has set aside R2 billion in this financial year for the implementation of Agri-Parks in all 44 District Municipalities, with priority given to the 27 poorest ones. One percent (R20 million) of this amount will be allocated to institutional and capacity development, and/or skills acquisition, with priority given to the 27 most vulnerable ones. This is to address the question of equity.

These Agri-Parks are an integral part, and driver, of the Rural Economy Transformation Model, whose focus is the generation and stimulation of both subsistence and commercial enterprises. 70% equity in the Agri-Parks shall be owned by producers, with the State and other commercial interests anchoring the other 30%. The State’s strategic support will diminish over a period of 10 years with producers taking full control.

This concept will ensure:
1. the achievement of our strategic thrust of rekindling the class of black commercial farmers destroyed by the 1913 Natives’ Land Act;
2. that all land reform farms, including communal land, are 100% productive; and,
3. the achievement of the provisions of the NDP’s “Inclusive rural economy” as rapidly as is possible.

Ready to start next week, are Springbokpan in the Ngaka Modiri Molema District, North West and Ncorha in the Chris Hani District, Eastern Cape.

Legislation

Section 25 of the Constitution, true to the letter and spirit of the Freedom Charter, empowers the State to intervene directly, where it deems it necessary.

In this regard, the President has recently assented to the following laws:

• Spatial Planning and Land Use Management Act (SPLUMA);
• Restitution of Land Rights Amendment Act;
• Property Valuation Act; and,
• Geomatics Profession Act.

These are transformative policies and laws. Consistent, and in pursuit of the Transformation agenda, these policies and pieces of legislation on the land question, will radically change the way land is valued, information on land is managed, in order to integrate and support economic development and an inclusive society. For example, the SPLUMA seeks to correct colonial and grand Apartheid spatial defects. It should be treated not in isolation, but in conjunction with the Integrated Urban Development Framework (IUDF), which is championed by the Department of Cooperative Government and Traditional Affairs (CoGTA).

During this financial year, the Department, working closely with the CoGTA and the South African Local Government Association (SALGA), will ensure that all municipalities are ready to implement the Act.

Municipalities will focus on, particularly:

• The establishment of Municipal Planning Tribunals to approve land development applications;
• The adoption of Municipal Bylaws for Spatial Planning and Land Use Management; and,
• Adoption of delegations and Tariffs.

Traditional Authorities will participate in planning in communal areas under their control by being involved in the development of Spatial Development Frameworks (SDFs). Section 23(2) empowers them to form part of land use management processes; and, municipalities must ensure that they participate in the development of Land Use Schemes.

On the 30th of June, 2014, the President assented to the Restitution of Land Rights Amendment Act, paving the way for all qualifying South Africans who missed the initial 31 December 1998 deadline to lodge land claims.

As on the 15th of April 2015, a total of 55 973 claims have been lodged with the Commission. This represents 70% of the 79 696 claims lodged over a period of 4 years in the previous window, confirming that reopening the Restitution process was indeed the right thing to do.

Madam Speaker, as we speak, the Gemsbok and Maruping mobile lodgement units are stationed at the Charles Mopeli stadium in Qwaqwa receiving claims. The mobile lodgement offices are supported by 9 Communication Sprinters informing communities on how to lodge a claim. We are taking Government services to the people! 

Madam Speaker, we must, however, mention that there is a case before the Constitutional Court, brought by the Land Access Movement of South Africa (Lamosa), challenging the validity of the process, which culminated in the passing of the Amendment to the Restitution of Land Rights Act, 1994.

The Property Valuation Act, which establishes the Office of the Valuer-General (OVG), was assented to by the President in 2014. A rigorous recruitment process has been followed to appoint the Valuer-General who will head up this office. It is intended that the office will be fully operational, with the Valuer-General in office, by the 1st of July, 2015. The OVG will be responsible for the valuation of land, having regard to an equitable balance between public interest and the interests of those affected by the acquisition.

In determining the value of land, the Valuer-General will take account of all the following five factors contained in section 25(3) of the Constitution, rather than confining the process to only the market value of the property:

• Current use of the property;
• History of the acquisition and the use of the property;
• Market value of the property;
• Extent of direct state involvement and subsidy in the acquisition and beneficial capital improvement of the property; and
• Purpose of the acquisition.

For the first time, these constitutionally entrenched considerations have now been embedded in our valuation legislation and will form the basis of the value determinations in respect of land related acquisitions in the public interest.

The South African Geomatics Council, established in terms of the Geomatics Profession Act 19 of 2013, has been appointed and its first sitting will be before the end of June 2015, giving effect to the Act. The Act provides for the transformation of the geomatics profession by regulating all geomatics practitioners, which include land surveyors, surveyors, survey technicians, Geographic Information Science practitioners and mine surveyors.

Madam Speaker, we are institutionalising transformation of land relations; we are moving South Africa forward! Siyaqhuba!

The following is an additional new battery of transformative legislative drafts which we are going to bring to this House:

• Electronic Deeds Registration Bill;
• Regulation of Land Holdings Bill;
• Land Commission Bill;
• Extension of Security of Tenure Amendment Bill;
• Communal Property Associations Amendment Bill; and,
• Communal Land Tenure Bill.

The e-Cadastre Programme that started in 2010 has been put on hold due to pending litigation. Unfortunately, until the matter before Court has been finalised, it is not possible to proceed with the e-Cadastre Programme. However, in the last year, rescoping and re-planning exercises were undertaken resulting in a roadmap with a 6 to 10 year horizon.

Revenue

Programme	2015/2016	2016/2017	2017/2018
R’000	Allocation	ENE Indicative	ENE Indicative
1. Administration	1 264 265	1 318 356	1 389 131
2. National Geomatics Management Services	799 903	830 383	875 221
3. Rural Development	1 975 739	2 187 472	2 263 862
4. Restitution	2 602 669	3 181 357	3 340 957
5. Land Reform	2 737 108	2 874 440	3 019 527
Total	9 379 684	10 392 008	10 888 698

 

Conclusion

Madam Speaker, this is the year of the Freedom Charter and unity in action to advance economic freedom. In this regard, this is what the Ready To Govern Document anticipated about the Transformative agenda of South Africa’s democratic, developmental state: Legislation on economic matters shall be guided by the principle of encouraging collaboration between the public, private, co-operative, communal and small-scale family sectors with a view to reducing inequality, promoting growth and providing goods and services for the whole population.

The Bill of Rights shall establish the principles and procedures whereby land rights will be restored to those deprived of them by apartheid statutes. A land claims tribunal, functioning in an equitable manner according to principles of justice laid out in legislation, will, wherever it is feasible to do so, restore such rights. In doing so, it will take into account the role of compensation to be paid by the state to those whose existing titles are affected. Provisions relating to property rights and compensation will have to be applied in such a way that they are not manipulated so as to frustrate a national land reform programme.

Honourable Speaker, we are moving South Africa forward! Siyaqhuba!

I thank you.

 

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Deputy Minister Mcebisi Skwatsha: Rural Development and Land Reform Dept Budget Vote 2015/16

THE YEAR OF THE FREEDOM CHARTER AND UNITY IN ACTION TO ADVANCE ECONOMIC FREEDOM!

FORWARD WITH RADICAL SOCIO-ECONOMIC TRANSFORMATION!

Madam Speaker,
Honoured Guests,
Ministers and Deputy Ministers present,
Fellow members,
Manene nani Manenekazi,
 
It is a privilege to participate in this debate following the Minister, honourable Gugile Nkwinti.
 
In this department we are dealing with the issue of land, and land is the key to ensuring that the long, sad story of colonialism and apartheid in our country, has a happy ending.
 
Central to the work of our department is the National Development Plan, which has been endorsed by the majority of parties in our country to guide us to 2030. Chapter 6 of the NDP - “An integrated and inclusive rural economy” is the goal that we pursue.
 
Honourable members, a leading question at this time is “Do those of you, who in the past have said ‘I support the NDP’ truly mean it? I mention this since, on Monday night, the 4th of May, the honourable Leader of the Opposition, who previously pledged his loyalty to the NDP, appeared on television saying,
 
“I do not support everything that is on the NDP, of course there are elements of it that are flawed, that are wrong. For example, the focuses on how we do land reform, there are some challenges there.”

This contradicts his outgoing leader, Helen Zille, who said:
 
“.. the Western Cape is prepared to move beyond this highly successful model to pilot the NDP's proposal.  We are very keen to participate with all role-players to make it succeed, and to make people who work the land, the owners of land.”
 
It appears that the opposition cannot decide whether they support the NDP or not. For us there is not confusion, we are busy implementing it.
 
Chapter 6 of the NDP sets a target of transferring 20% of agricultural land to black people by 2030.
 
20% of the 82 million hectares of agricultural land translates into 16.4 million hectares. From 1994 to December 2014 the state transferred 7.5 million hectares, or 46% of the 16.4m hectares, to black farmers. Of the 7.5 million hectares already transferred, 4.4 million hectares were redistributed land and 3.1 million hectares was restitution in settlement of land claims.
 
To meet the NDP target we need to transfer another 8.9 million hectares of agricultural land by 2030.
 
Since 2009, government has acquired 1.76 million hectares of land. For the 2014/15 financial year, the department acquired 209 580 hectares, at a cost of R1.2 billion.
 
For the current 2015/16 financial year we intend acquiring 208 350 hectares at a cost of R1.253 billion. Of this, R141.19 million will be spent on acquiring land for farm dwellers, and R132.19 million for labour tenants.
 
The intention of land acquisition is to recreate the class of black commercial farmers which was deliberately destroyed by the 1913 Natives Land Act and similar colonial and apartheid laws.
 
In his State of the Nation address, his Excellency President Zuma outlined a nine point plan to ignite growth and create jobs. The second of the nine points is “Revitalising agriculture and the agro-processing value chain.”

This is the context in which the department is implementing and refining the Recapitalisation and Development Program (RADP).  The RADP was launched in 2010 with the objectives of:

• increasing agricultural production;
• guaranteeing food security;
• graduating small farmers into commercial farmers; and
• creating employment opportunities in the agricultural sector.

The programme was designed to help struggling land reform farms that have received insufficient support, but have the potential to become successful. These farms were supposed to receive technical and financial support from the department.
 
Since the inception of this programme, R3.2 billion has been spent on recapitalisation.
 
The Department of Monitoring and Evaluation in the Presidency conducted a review of RADP and made proposals to make the program more effective. The Portfolio Committee has been briefed on the findings, challenges and the turn-around plan.
 
There are numerous success stories, some of which were related during the Portfolio Committee public hearings.
 
For example, Selami Poultry in Dr Kenneth Kaunda district which received RADP money, now has a contract with Supreme Poultry to whom they sold over 270 000 birds in December 2013. The average weight per Selami Poultry chicken was more than the industry average.
The Mont Piquet farm near Piketberg in the Western Cape is another example of resounding success. Exports of table grapes have increased, season to season, and are exported to more than 50 countries. There are 34 beneficiaries and approximately 600 temporary employees.  These are just a few instances of success. There are many more good stories to tell.
 
Much attention has been given to ensure that we make well considered decisions on the selection of farms to be acquired, and the beneficiaries of allocated farms, as well as which farms to recapitalise. The National Land Allocation and Recapitalisation Control Committee – NLARCC - was established in 2013 to,

• Ensure that Land Reform proposals for acquisition, allocation, recapitalization and development are consistent with government policy; have the support of all the necessary role-players and stakeholders, and will contribute favourably towards local economic and social development;
• Ensure inter-departmental co-ordination, co-operation and budgetary alignment, so that the farms we acquire and recapitalise become projects of the whole department.
• We intend to put what we have learned from the land acquisition and the recapitalisation and development programs to good use when we establish the Agri-Parks, also announced by his Excellency the President in the SONA.
• The Department has put aside R2 billion for the Agri-Parks. Of this,
• R626, 3 million will be used for acquisition of 185 000 hectares of strategically located land for small holder farmers who will produce within the Agri-Parks.
• R362, 8 million for Recapitalisation and development of farms which form part of the Agri-Parks.

Money will also be allocated for production of key commodities identified in the APAP for the Agri-Parks, by rural producers outside of the land reform farms. This includes rural village-based producers and owners of their own land.
 
As you can see, the work on establishing the Agri-Parks is already under way.
In addition state land has been identified and allocated for the Animal and Veld Management Program and the River Valley Catalytic Program.
 
We are also acting on another NDP proposal, the creation of District Land Committees which we are now calling District Land Reform Committees (DLRCs) which,
 
“will be responsible for identifying 20 percent of the commercial agricultural land in the district and giving commercial farmers the option of assisting its transfer to black farmers.”
 
In our budget vote last year we said we would establish these committees and we are pleased to report that so far we have established them in 40 of the 44 districts and hope to complete the process in weeks.
 
In order to implement the NDP’s recommendations these committees will:

• identify farms suitable for acquisition by government;
• advise the Minister on the strategic support needs of such farms;
• identify and interview potential candidates for farm allocation;
• advise the Minister on strategic support needs of recommended candidates; and,
• advise the Minister on resolving land rights conflicts.

The department wants to ensure that these committees are representative of all key interest groups in each district, including organisations of established farmers, organisations of emerging farmers, workers’ organisations, municipalities, civil society and a person seconded by the Minister. The Minister will appoint a chairperson after recommendation from the DLRC.

The department will also give administrative and secretariat assistance and training to the committees.
 
We call on Members of Parliament and the public to monitor the work of these important committees. Let us all take ownership of the implementation of the National Development Plan.
 
In the current year we will implement new guidelines for the selection of beneficiaries for land reform. These emerged from discussions at the National Land Tenure Summit held in September 2014, which recommended that a credible process be put in place to identify and select emerging farmers deserving support.
 
Beneficiaries should have ability, passion and commitment to farming. The following categories will apply:
 
Category A:
Communal and village subsistence farmers; municipal commonage farmers; and sustained homestead garden producers.
Category B:
Agricultural sciences university and college graduates; agri-business special course qualifiers, including NARYSEC participants; those who have done managerial and entrepreneurial incubation, learnerships/internships; and, agricultural para-professionals.
Category C: (a Special Category):
Women, including single women; military veterans; people with disabilities; and farm workers/dwellers/tenants.
In addition an electronic beneficiary application system will bring transparency and credibility to the process, reduce fraudulent and corrupt practices and reduce the turnaround time for processing of applications.
Madam Speaker, the average South African farmer is 62 years of age. For this reason we have recently created an incubation programme for agricultural graduates. They will be linked to land reform farms as part of a mentorship programme to enable them to become either farmers, or experts in the agricultural sector. The DLRCs will keep a database of potential candidates.

Honourable members, The Land Tenure Administration branch amongst other tasks, must implement:

• The proposed policy framework on Strengthening of the Relative Rights of Farm Workers (50-50) through pilot projects in collaboration with organized agriculture. These projects will be piloted with farmers who have volunteered to be part of the program.
• The revival of evictions monitoring structures in “hot spot” provinces, in collaboration with sector role players. The department also provides legal assistance to farm workers facing eviction.
• The improvement of governance in Common Property Institutions and bringing the land back into production. Of the 7.3 million hectares of land acquired since 1994, only 1.8 million hectares falls under the proactive land acquisition strategy. The rest falls under Communal Property Institutions. Given the size of the assets under their control and their importance for the land reform process, the governance of these structures is crucial.
• The Transformation of Certain Rural Areas Act (Trancraa): A task team has been established comprising representatives of the affected communities, municipalities, NGOs and the department, to assist in selecting projects and transferring land to their rightful owners. The aim is to speed up this process.

Honourable members; I turn now to Land Claims.
 
In the 2014/15 financial year 144 406 hectares and R1 billion in financial compensation was awarded to 78 600 beneficiaries from 15 456 households. This year the commission aims to settle 1445 claims. Emphasis will also be placed on researching claims received in the first lodgement period.
 
To cope with the number of claims the Commission is receiving in the current lodgement period, an electronic lodgment system has been developed. Claims can be submitted at any of the 14 lodgment offices located in the nine provinces.
 
The commission has also procured mobile lodgment offices, in the form of buses equipped with technology to process applications for land claims on site. Two all-terrain trucks have been acquired to support the mobile offices. As a result the Commission is able to reach the most remote areas of our country, and has prepared a schedule of communities to be visited over the next four years. Yesterday I was at the launch of the mobile offices in Libode in the Eastern Cape.
 
We have made good progress with the 2nd phase of the Land Audit. The focus of Phase 2 of Land Audit will be on individuals who own 48,2% of the country's land - 46.5 million hectares. The exercise will determine ownership in terms of nationality, race, and gender, and will be completed by the end of the calendar year.
 
As part of the world-wide celebrations of the International Map Year - IMY - planned for the years 2015 and 2016, our Department recently hosted a delegation of Geospatial experts from nine countries, including representatives of the executive committee of the International Cartographic Association. 
IMY is a worldwide celebration of maps and their unique role in the world, and is supported by the United Nations. It provides opportunities to demonstrate, follow, and get involved in the art, science and technology of making and using maps and geospatial information. Map literacy is also going to be introduced to NARYSEC in ThabaNchu this year.
 
Honourable members, we are short of young farmers and we are also short of surveyors. Since 2008 the department has been offering bursaries to aspirant students to obtain qualifications in surveying in order to address the skills shortage; to accelerate transformation of the profession, and increase state capacity in functions related to surveying.
The department is currently sponsoring 473 students pursuing degrees and diplomas, of which 157 are females and 316 are males. The bursary fund amounts to R34, 4 million.
Amongst the students we have sponsored are two shining stars:
Miss Zinhle Mabaso of the Mangosuthu University of Technology received an academic achievement award from the South African Geomatics Institute (SAGI) for being the best surveying student nationally for the National Diploma: Surveying. And Mr Nhlanhla Mlanduli received an academic achievement award from SAGI for being the Best Final year BSc Land Surveying student at University of KwaZulu-Natal.
 
Honourable chair, communications plays an important role in accurately portraying the department's multiple functions by informing the media and citizens. This includes their roles in rural development and land reform initiatives. We are working to improve our communications for the coming year.
 
Honourable members, our Deeds and geo-matics systems rank among the best in the world. They are however outdated and the modernization of our cadaster system was initiated two years ago. The process was however suspended in the wake of allegations of maladministration when the contract was awarded. The matter was referred to the Special Investigation Unit (SIU).
 
The SIU brought a court application against SITA, Gijima and the department based on the irregular award of the tender to Gijima for the application development and back scanning. This process was suspended in December 2014.
Subsequently the project has been re-scoped, and the upgrade of the cadaster IT infrastructure is scheduled for completion this year at a cost of R164m.
 
Honourable members, Madam Speaker; The National Development Plan will not, of itself, develop anything. We need to implement it. It calls on us to locate and transfer almost 9 million hectares of agricultural land in the next 15 years. It needs work, hard work from all of us. Our roles are clear. Every South African needs to work with every other South African, in harmony and in tandem, to achieve just and sustainable reform and a better life for all those who live and work on our land.
Thank you.

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DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM 2015/2016 FINANCIAL YEAR BUDGET POLICY SPEECH BY DEPUTY MINISTER HON KC MASHEGO DLAMINI  

 

THE YEAR OF THE FREEDOM CHARTER AND UNITY IN ACTION TO ADVANCE ECONOMIC FREEDOM!

FORWARD WITH RADICAL SOCIO-ECONOMIC TRANSFORMATION! 

Madam speaker,
Honourable Minister Nkwinti
Honourable Ministers
Deputy Ministers
Honourable Members of Parliament
Officials of the Department
Our partners in Rural Development and Land Reform
Distinguished Guests
Fellow South Africans
Ladies and Gentlemen
 
On this, the 60th anniversary of the Freedom Charter, we remember the famous words: “South Africa belongs to all who live in it, black and white.”
 
His Excellency, the President in the State of the Nation address announced a 9 point plan to turn around the South African economy and the Department of Rural Development and Land Reform has a significant role to play in several of the points announced but most importantly we have a key role in priority 1: revitalizing agriculture and the agro processing value chain.  Given the nature of our mandate of rural development, we will also be driving initiatives to give effect to other priorities including Unlocking SMME, co-ops, township and rural enterprises’ potential
 
Madame Speaker,
Our Constitution exhorts us to “improve the quality of life of all citizens, and free the potential of each person”, and we all share the responsibility of finding the best way to do this.
 
Since shortly after we opened our doors as the Department of Rural Development and Land Reform in 2009, our flagship project has been the Comprehensive Rural Development Programme.  The sole objective of the CRDP is to transform the rural economy. That means bringing real benefits to rural people and the poor across South Africa. It means meeting basic human needs, enabling enterprise development, and providing vital infrastructure. We have encountered and cleared many obstacles – yet many remain.
 
Madam Speaker, Radical change must bring real benefits to rural people and the poor across South Africa.
 
The National Development Plan (NDP) provides a long term vision for accelerating development so that food security can increase,  unemployment and inequality be reduced, creating a more inclusive society. This will be achieved through diligent implementation of our plans and programmes as articulated in our (Annual Performance Plan (APP).
 
The NDP is the road-map for our programmes and Chapter Six of the NDP sets out the trajectory for rural economic transformation and development. The vision is rural areas that are spatially, socially and economically well integrated - across municipal, district, provincial and regional boundaries - where there is economic growth, food security and jobs as a result of agrarian transformation and infrastructure development programmes with improved access to basic services, health care and quality education.
 
Madam Speaker, the department implements socio-economic infrastructure projects to support rual communities. One of these, completed last year, is the Beaufort West Youth Hub. It consists of a TVET College for the youth, community swimming pool, gymnasium, community amphitheatre, and a combi-court for several sports disciplines.  The total cost was R55 million. This facility, and others like it, underscores our commitment to placing youth at the centre of development by giving them opportunities to access the skills required to build our country. 
 
Over the past financial year the Animal and Veld Management programme (AVMP) has gained momentum across the country with more than 200 projects implemented. Significant progress was made in KwaZulu Natal where several projects were completed at a value of R45m benefitting 2000 livestock farmers.    In addition we have also launched an auction facility in Msinga which is beginning to assist farmers to turn their livestock into economic assets and generating income for rural households.  This AVMP has created more than 1600 jobs last year specifically through the soil rehabilitation and debushing component.
 
Over the past year, we have also implemented 31 projects to revitalize 5 irrigation schemes across the country with key focus in KwaZulu Natal, MP, EC and NW through the implementation of the river valley catalytic programme which deals primarily with the revitalization of irrigation schemes and agricultural development along river beds in South Africa.
 
In this financial year, we intend to build on the gains that we have achieved thus far. 
In the State of the Nation, his Excellency, the President announced the establishment of district Agri-Parks. Madame speaker, an Agri-Park will, in the medium term, be established in all 44 districts. An Agri-Park will essentially ensure development from primary production through to processing and value addition while at the same time fostering development of related enterprises. The Agri-Parks will be designed in a manner that allows the central component of the model to eventually emerge into a centre for various activities not limited to agriculture including warehousing, processing, retail, input supplies; distribution, services access, financial services, market access, training and development.
 
These parks will organise and mobilise farmers and agri-business entrepeneurs. Partnerships with government departments, such as DAFF, the dti, the Department of Small Business Development, COGTA, DWAS ,Provincial Departments of Agriculture and Rural Development and district municipalities; is critical to develop economic infrastructure like, roads, energy, water, ICT, transportation and logistics corridors that support the agri-park value chain. 
 
Honourable members, we are looking to the Agri-Parks model to achieve a transformational breakthrough- improving capacity and production of smallholder farmers, value chain development, market access, encouraging private farmers participation and investment, and most significantly, ensuring that resources are better utilized through focused interventions that can contribute to significant job creation.
 
In this financial year, the Department will drive the establishment of the Agri-Parks using the current programmes as levers for implementation.  The following programmes will assist us to drive this initiative: River Valley Catalytic Programme, Animal and Veld Management Programme, Enterprise and Industry development, infrastructure development and the Narysec programme.
 
Honourable Members, since the instruction in the SONA, work has been progressing steadily.  An evidence based approach is being followed to ensure that all pertinent issues from production, to supply and market access are considered to mitigate risks in implementation.  To this end, detailed analysis has been conducted looking at several variables to ensure that areas selected for the agri-park development are based on economic advantage and fundamental elements of the value chain for dominant commodity products in a defined area. The following analysis has been completed: socio economic, commodity value chain, community, infrastructure including roads, energy, water, agro processing facilities etc; income and economic data as provided by the Department of Economic Development. The analysis work has been done in partnership with DAFF, EDD and CSIR.
 
Based on the above, the Department has had consultative sessions with provincial and local government. As a result of these interactions, sites have been identified in nearly all of the 27 districts across the country and in some areas work has already commenced.  The intention is that many of the activities will run simultaneously to ensure that we are able to meet the deadline of being on the ground with implementation by September.
 
Given the current challenges faced by black smallholder farmers in production and market access as well as the limited in roads they have made into the agricultural value chain, it is proposed that the state will develop a support model for the Agri-Parks for a period of 10 years to ensure sustainability. 
 
If implemented as planned with the collaboration of all sector departments, the Agri- Parks will lay the foundations for rural industrialization; make rural economy transformation a reality and permanently free rural communities from food insecurity.
 
The agri-parks will create a class of black commercial farmers that has the necessary technical expertise and the ability to supply the market sustainably at the desired market quality. This will ensure rural economy transformation and food security for our rural communities.
 
Community development will also occur through income generated by the value addition capability of the agri-park where profits will be reinvested in the community through an Investment Financing Facility.
 
R2 billion has been set aside for the implementation of the Agri Park Programme this year and this will be allocated across the districts with an additional portion of the resources being made available to the most vulnerable municipalities to assist with technical support and capacity to drive this initiative.  To ensure that we have the required technical capacity both at National and District level, to roll out simultaneously in all districts, a project management unit (PMU) with satellite district offices will be established as an implementation support mechanism. 
 
In this financial year, R110m will be invested in 20 projects to support the River Valley Catalytic programme. The primary focus will be to revitalize irrigation schemes and development of smallholder farmers focusing on horticulture, grains; and lucerne to support the livestock industry.  R174m will be invested in the Animal and Veld Management programme which will focus on rehabilitation of degraded lands to improve crop production; debushing and infrastructure to support the livestock industry; R223m will be invested in agro processing infrastructure to drive the development of the hub of the agri-park model.  This will include various types of infrastructure to support the various commodities including abattoirs, mills, dairies, silos etc.
 
We have also reorganized our industry and enterprise support programme to focus on certain key areas that will support the smallholder farmers; women; youth and people with disabilities.  R208m will be invested to support farmers to improve their production and other related enterprises directly linked to the agri park model.  This support will include capacity building, business planning and operating capital.  We will work closely with the department of Small Business Development, DAFF and other State owned Enterprises that can assist with business development. Enterprises will be supported to develop in the following commodities; livestock, poultry; grains; horticulture among others.  We will in this year also focus on development of enterprises that focus on niche crops and aquaculture.
 
We will be working closely with relevant departments to ensure that we utilize fully the “state” markets and 30% set asides as announced by his Excellency, the President with specific focus on the commodities produced in the agri-parks aligned to APAP. The Rural Industry development programme will also investigate equity models that will give rural people access into value chain industries.
 
We will also build on the work that has started in developing the arts and crafts industry in the rural areas.  More than 1000 women have been trained and assisted in KwaZulu-Natal, Limpopo, Mpumalanga and Eastern Cape. We have been able to drive this programme through a partnership with Mninizo Trading.
 
A strategy is being finalized to upscale this programme in this financial year to ensure that it is expanded and extended to all provinces and also includes women in all the various sectors of the industry.  To support these cooperatives with market access, the department has helped to establish a retail outlet in Durban. This together with the trade fairs that cooperatives have been able to participate in has significantly improved access to domestic and various international markets. R37m will be invested this year to build on this work.  This can become a significant job driver in rural areas. 
 
In the past year we supported the Abasuki cooperative in the EC who focus on the production of traditional clothes. We are pleased to announce that Abasuki was able to show case their work at the recent Cape Town Jazz Festival with the assistance of a private entity TCIA.  We will this year be increasing our involvement in the area of fashion design and production by supporting various rural enterprises and promoting equity models with established businesses. 
 
In this financial year R112m has been set aside to support 65 new non agricultural rural enterprises.
 
In the past financial year we have been supporting the development of arts and culture in rural areas through infrastructure development and direct support to cooperatives.  Madam Speaker, we are pleased to have in our midst today, members of the African Senako group, which is a group of young people with disabilities that are promoting arts across the country and internationally.
 
In other areas across the rural municipalities beyond the 27 districts, socio economic infrastructure projects to the value of R289m will be implemented and will include the provision of water, sanitation, energy, roads, early childhood development centres, information and communication technology facilities, sports and recreation and heritage facilities to the rural poor.   Several of these projects will assist in revitalization of rural towns and assist in creating rural-urban linkages in support of the Agri Parks.
 
In rural development, 4500 skills development opportunities will be provided through rural economic transformation and 8000 people will be employed in rural development initiatives, inclusive of agri-parks.
 
Madam Speaker, the National Rural Youth Service Corps NARYSEC - continues to flourish. In this financial year 4481 youth will be trained in pertinent skills required for rural economic transformation including engineering and the built environment; agricultural development; business management and administration; hospitality, tourism, and arts and crafts; education and development training, safety and security.
 
We are pleased to indicate that we have partnered with the Big Fish, School of Digital Film Making to train our young people and we have in the gallery today the Managing Director of the company and Narysec youth who are part of the crew providing communication services to the department.
 
Minister Nkwinti announced that we have recently opened the Narysec headquarters in ThabaNchu.  Through a strategic partnership with the SANDF, we are currently in the process of fully operationalizing the college to ensure that we are able to conduct a significant portion of the training programme at the facility but in addition it is envisaged that various other support services for Narysec will be offered including enterprise support.
 
The Department of Rural Development and Land Reform is charged with the coordination of Outcome 7; meaning the coordination of the work of sector departments and State owned Enterprises in ensuring integrated and sustainable development.  We will therefore continue to strengthen the coordination of Outcome 7 and in this year will finalise rural development plans for the 27 poorest districts which will assist us to coordinate rural development across the country.
 
To improve service delivery, the department will strengthen internal alignment through the institutionalization of various governance structures flowing from district level to Ministerial level.  This will ensure improved monitoring and value for money in the implementation of our projects. 
 
Madame Speaker, the key to transforming the rural economy and unlocking the potential of rural people lies in our ability as government to act in unison; working together, rural and urban, government and private sector, I believe that we can take South Africa forward.