African Renaissance Fund projects 2021-2023: DIRCO briefing

Meeting report

The Chairperson said the focus of the meeting would be on the African Renaissance Fund (ARF) and the projects they had completed since 2019.

He said there was a gathering in Russia representing foreign parliaments from the African continent organised by the African Union (AU). South Africa had been invited and was represented by a delegation of both the National Council of Provinces (NCOP) and the National Assembly, led by Speaker Nosiviwe Mapisa-Nqakula. He hoped Members noted and followed what the Speaker had said at this engagement. One of the most important things highlighted was the goal for a multi-popular world, where power was shared amongst member states. There should not be one member state dominating others, and nations should ensure peace in the world that could benefit others.

It was important for South Africa to participate in such forums, to share views on how relations could be strengthened. Members should also follow recent events such as the election in Nigeria and other upcoming elections on the continent.

ARF Briefing: Closed Projects from 2019 to date

Mr Zane Dangor, Director-General (DG), Department of International Relations and Cooperation (DIRCO), said the ARF remained one of the most important tools of South Africa’s foreign policy, particularly in relation to "soft" power. The ARF’s projects were generally "multi" in nature, and the presentation would give members a summary of the ten active projects currently run by ARF, as well as completed projects since 2019.

Humanitarian assistance to South Sudan

South Africa’s humanitarian assistance to South Sudan would add to the country’s positive role in conflict resolution efforts. Providing humanitarian assistance supported South Africa’s mediation efforts in South Sudan. The concurrence letter from the Minister was from 14 May 2017, and an amount of R100 million had been budgeted for this project. R25 249 102 had been saved and redirected to other projects.

The following items have been procured and delivered:

• 1 625 metric tonnes of non-GMO (genetically modified organism) sweet sorghum;
• 130 metric tonnes of iodated salt;
• 1 300 metric tonnes of non-GMO red beans; and
• 185 metric tonnes of pure sunflower cooking oil.

The objective of the project was to deliver sorghum, sugar beans, salt and cooking oil, providing a full meal to displaced persons. A South African service provider had been appointed to deliver the project, ensuring that most of the commodities were procured in South Africa.

Humanitarian aid to the Republic of Zimbabwe

Cyclone Idai hit eastern Zimbabwe with heavy rains and strong winds. The storm caused high winds and heavy precipitation in the Chimanimani and Chipinge districts, resulting in ravines, flash flooding, subsequent deaths, and destruction of livelihoods and properties. An estimated 270 000 people were affected by the flooding and needed humanitarian assistance in seven districts: Chipinge, Chimanimani, Buhera, Bikita, Mutare, Gutu and Chiredzi.

The Minister signed the concurrence letter on 17 May 2019, and R50 million was spent on this project. The project delivered 450 000 12.5 kg bags of maizemeal to families affected by the cyclone. A South African service provider had been appointed to deliver the project, with all the maizemeal procured in South Africa.

African Women in Dialogue (AWID) Programme

This programme involved cooperation between the Republic and other countries, particularly African countries. In Africa, the face of poverty was a woman’s face, as more than 80% of people living in absolute poverty were women. Women were also the main victims of wars and violent conflicts. Whilst these women of Africa shared common experiences, there was no platform for them to share these experiences and help support their healing, development and upliftment. Giving women a voice at a continental dialogue level goes a long way towards helping them realise that they are not alone in their struggles. R37 609 320 was budgeted for this project, and R 25 479 320 in savings was redirected and reprioritised for new projects.

The annual five-day AWID Forum benefited 1 000 women who visited South Africa for the annual forum. Fifteen women from each country on the African continent attended, representing the most diverse and cross-cultural members of their societies. Special emphasis was given to women from communities heavily impacted by war, displacement, economic deprivation, discrimination and disability.

Deployment of South African expert to South Sudan to serve on the Independent Boundaries Committee (IBC)

This initiative involved the prevention and resolution of conflict. As Chair of the African Union (AU) high-level ad hoc committee on South Sudan, a high expectation was placed on the South to show material support for the implementation of the key provisions of the Revitalised Agreement on the Resolution of the Conflict in the Republic of South Sudan (R-ARCSS), in which the work of IBC was arguably one of the most important aspects in the successful implementation of the Agreement.

The request for South Africa to nominate an expert to the IBC was in accordance with Articles 1.15.1 and 1.15.3.3 of the R-ARCSS, which required South Africa, as a member of the C5, to nominate a high-level expert to serve on the IBC. In this regard, article 1.15.3.3 expressly stipulated that five highly experienced C-5 members were to be nominated by the AU high-level ad-hoc committee on South Sudan from South Africa, Nigeria, Rwanda, Algeria and Chad. President Ramaphosa had appointed former Ambassador Thembi Majola to chair the IBC.

The concurrence letter for this project was signed on 17 May 2019, and R1 025 820 was budgeted for this project. The IBC submitted its report to the Intergovernmental Authority for Development (IGAD). The funding by South Africa of a South African expert to serve on the IBC was deemed essential in support of capacitating the IBC to execute its important mandate through the provision of a high-level individual.

The presidential and legislative elections in the Central African Republic

The Central African Republic (CAR) requested funds to support their presidential and legislative elections. South Africa responded by appointing the Independent Electoral Commission (IEC) to assist in this regard. Approval was obtained through a concurrence letter signed on 24 October 2020 to release R13 294 500 from the African Renaissance Fund, to fund South Africa’s contribution towards the presidential and legislative elections in the CAR on 27 December 2020, and an additional R5 259 740 was given.

Goods to support the elections were mostly procured in South Africa and delivered to Bangui in the CAR prior to the election, with the technical expertise of the IEC. The elections were successful and declared free and fair.

South African contribution to the Special Fund for COVID-19

As of 20 April 2020, more than 2.4 million people in the world had tested positive for the virus, and 170 000 had died as a result. The Africa Centre for Disease Control (CDC) reported on 14 April 2020 that a total of 15 284 confirmed COVID-19 cases and 816 deaths had been reported in 52 African countries. This presented a dire picture, as African countries would not have the requisite financial resources and human capital to put a minimum response and preventative measures in place.

R72 711 439 had been donated to the special fund.

South African contribution towards the Africa CDC

Following the contribution to the Special Fund for Covid-19, a further amount of R36 344 440 was donated to the Africa Centre for Disease Control.

Humanitarian assistance to Eswatini

The government of Eswatini requested South Africa to assist following the disastrous and unprecedented drought caused by El Niño across Eswatini in 2016. The South African government committed R40 million towards the emergency food assistance project in Eswatini. The project was intended to assist orphans and vulnerable children in different neighbourhood care points (NCPs). The beneficiaries were aged up to five years. The project was targeted to reach 52 000 beneficiaries, and provided an on-site daily meal comprising maise, pulses and vegetable oil at 1 594 NCPs in all regions of Eswatini.

In Transformation Initiative (ITI) Central African Republic (CAR) project

The Central African Republic (CAR) has been unstable since its independence from France in 1960. The country was characterised by military coups and rebel/armed groups. Reasons for the instability included the absence of the state amongst communities, the marginalisation of areas and groups, poor governance, political instrumentalisation, and inter-community conflicts. Aggravating this were conflicts in neighbouring countries that spilt over into the CAR. There was an absence of social cohesion at every level of society. A violent takeover of power in 2013 resulted in an aftermath that saw widespread violence, as armed militia fought each other and took revenge on the population.

R8 185 000 was spent on this project. The ITI supported the CAR transitional process by providing advisory, technical support and capacity building to the various local institutions that had been charged with implementing the reconciliation and transitional justice aspects of the peace road map in CAR.

Discussion

Mr D Bergman (DA) said that listening to the presentation and considering what was happening on the continent, two different pictures were pained. One president was currently going for a third term, and another country had just outlawed homosexuality. DIRCO needed to use the ARF as a political tool, and conditions should be attached to aid.

The Committee had not had a proper meeting with the Portfolio Committee on Home Affairs, and judging by this report, now was the time to have a joint meeting with Home Affairs. Many missions relied on the Department of Home Affairs (DHA) to process documents at embassies and missions. The legislation that the Portfolio Committee was currently passing on Home Affairs had an impact on international relations. He said the Portfolio Committee on International Relations should have a joint meeting with the Portfolio Committee on Home Affairs on a quarterly basis.

Mr X Nqola (ANC) said there had been an effort by the ARF to use South African service providers, which should be commended. In some years, the ARF had three projects and in some years, there was only one project -- he asked the ARF what influenced this.

Mr W Faber (DA) said he had not seen any reference to Cuba, and this report was from 2019 until to date. In the last four years, not one project had been finished. A lot of money had been given to Cuba -- why did this not appear in this report?

Mr T Mpanza (ANC) asked why there were no projects in South Africa. There have been many disasters in South Africa such as floods destroying peoples' livelihoods, and these people could have received aid or help from the ARF. Did legislation not allow the ARF to provide aid for South Africans? He said the new ARF bill would hopefully address this, and allow the ARF to work in South Africa.

Ms T Msane (EFF) said the Portfolio Committee needed to start looking at the role of the International Criminal Court (ICC) and why South Africa was still a member of this institution. Parliament had looked at exiting this body a few years ago because it had been used as a political tool to benefit a few countries. The ICC had issued a warrant of arrest for President Vladimir Putin of Russia, and South Africa must strongly advocate for African countries to be against a body used for political means by western countries. She asked how far South Africa was in the process of removing its membership from the ICC.

She asked who made the budget allocations for the ARF. There had been an allocation to Zanele Mbeki’s foundation, which was presented in this report as African Women in Dialogue. R37million was allocated, and only R12 million was used -- the rest was allocated to other projects. This meant money got allocated without considering how much projects would actually cost. Was this due to the failure of projects or the ARF not being able to budget properly? She asked how success was measured on this project, and what assistance ARF was giving to Mozambique and Zambia, which had recently experienced cyclones. She said there should be early warning systems in place, and Africa should implement these systems since climate change would make these events more frequent. There should be an emphasis on prevention and early warning systems. DIRCO needed to start advocating for these systems on the continent.

The Chairperson asked what had happened with the budget allocation to operationalise the African Free trade agreement. Africa could play a much more impactful role internationally if it was united as one country. He asked if it was possible for the ARF to do a study that would look at the possibility of Africa becoming a country, and elements from the EU should be considered. The current 54 countries would become federal states with an African President and Cabinet. He asked if this research could be explored and presented to the AU. If Africa continued to be fragmented as it was, conflict on the continent would not end.

He asked how the ARF identified the projects it works on, and if it works with other international funding bodies.

DIRCO's response

Mr Dangor responded that the categories of the ARF funding and projects ranged from humanitarian to political. Conditions attached to funding were a fair consideration that the DIRCO needed to look into. Sometimes DIRCO worked through civil society and technical experts, which was also an opportunity to use its influence and shape political opinion on the ground.

Budgets available for the ARF were demand-driven, and funding was given on request from countries where there was a humanitarian issue. The ARF would then engage with the countries in setting up the projects, and the projects would then be presented to the ARF committee, which consisted of DIRCO staff members, chaired by the DGs from DIRCO and National Treasury. Budget allocations were made based on detailed information on the projects. A multi-planning structure between DIRCO and National Treasury also helped with budget allocations.

The reason why in some years there would be only one project and in other years three, was because of the number of requests the ARF would receive in a particular year. It was also demand driven. With establishing the South African Development Partnership Agency (SADPA), DIRCO would become more proactive in funding projects.

He said there were no humanitarian projects for Cuba, but there was a multi-year loan agreement. This loan was initiated and formalised in 2018. This was done through the Department of Trade and Industry, and was an economic package amounting to R350 million. It consisted of a R40 million grant that was meant for purchasing seeds and equipment in South Africa. There was also a solidarity grant worth R100 million, and goods such as diesel and other mechanical parts were purchased from South African companies. The loan aspect involved R210 million, which was paid in tranches. Cuba was adhering to the loan agreements, and was on track to repay the loan amount.

He said the ARF budget was allocated specifically for work to be done outside the country’s borders. Domestic allocations should come from departments such as Social Development or Cooperative Governance. Funding for the ARF was allocated only to specific outcomes, and money was redirected when projects reached those outcomes without using all of the funding.

He said South Africa had withdrawn the International Crimes Bill two weeks ago in Parliament, which was in line with South Africa not withdrawing from the ICC. DIRCO could make a detailed presentation on the ICC and South Africa’s withdrawal.

The ARF would listen to an African Continental Free Trade Agreement (AfCFTA) proposal later this week, and look at options on how to enhance free trade on the continent.

Mr Dangor said the ARF and DIRCO engaged with other development finance agencies on how to improve aid packages on the continent. The ARF recently had such engagement in Europe on this.

There had been an ARF meeting on the recent cyclone, and the Committee would look at a recent request received to support these countries in their time of need.

The Chairperson agreed to the proposal that there should be an engagement between the Portfolio Committee of International Relations and the Portfolio Committee on Home Affairs.

The meeting was adjourned.