KZN Report-back on Taking People to Parliament 2022 Report; with Deputy Minister

Meeting report

The Chairperson said the meeting is an important one for the as farmers are facing difficult situations due to fires that have destroyed their grazing land. The meeting is aimed at addressing the challenges faced by farmers and ensure the department is taking the necessary action to help farmers. She noted that the Eastern Cape was not ready with its negotiating mandate on the National Veld and Forest Fire Amendment Bill and this was removed from the meeting agenda

Deputy Minister overview
Deputy Minister of Agriculture Rosemary Nokuzola Capa emphasized the importance of the executive reporting to the National Council of Provinces (NCOP) and the National Assembly of Parliament. This report-back is in response to the NCOP Report about its outreach programme. The KZN department will do the report-back as the district is in KZN.

She said the Chair's opening remarks were about fires, disasters, and a fever destroying poultry. She acknowledged the concern of farmers being affected by disasters and noted the need for a dedicated individual report on poultry. The KZN department has been requested to provide a report as they are directly involved.

Key Challenges, Recommendations and Responses
The KZN DARD Deputy Director General, Ms Lee Tomba, and Mr Nhlanhla Mndaweni, Manager: Provincial Shared Services Centre (PSSC) gave a report-back on the Select Committee key concerns and recommendations arising from its visit to the Ugu District in November 2022. The Committee made recommendations to accelerate the land reform programme and provide support to affected farmers. Challenges were identified such as the organization of farmers into cooperatives, particularly women, and the lack of access to land.

The KZN Department of Agriculture and Rural Development (DARD) provided support mechanization, grants, and mechanization-related support to farmers, including land preparation, product and input in the form of seeds, fertilizers, chemicals, and agricultural advice. The Department of Agriculture also provides through the Comprehensive Agriculture Support Programme (CASP) and advisory services. The Committee recommended that the department provide farmers with agricultural input. The department is committed to providing farmers with necessary support.

Another challenge is the import of cheap bananas from neighboring countries is harming the local industry. Rural farmers are struggling with production and transport costs and cannot compete with the imported banana price. In response, DARD is working on the import/export policies to assist banana farmers. The Department of Trade and Industry and Competition through the International Trade Administration Commission (ITAC) was involved in this.

The Select Committee noted the challenge of making online funding applications which limited access to well-to-do farmers. The department issued a decision to ensure hard copies of application documents were available at all offices, including ward satellite offices. This decision is currently being implemented.

On the recommendation that the Department must ensure that rural farmers are supported as there are farmers with business plans, but they are unable to access support, DARD is committed to providing support to farmers with business plans to compete with other farmers.

The Select Committee noted there is a strong demand for training skills development for young individuals in agriculture. However, there is insufficient mentoring and training for young farmers, who only receive two weeks of training.

The Department responded that it offers an under-graduate programme, including a two-year placement on commercial farms, and a six-month contract for agricultural advisors to gain experience in the agri-business environment.

It explained that the Department of Agriculture manages Foot and Mouth Disease (FMD) fences, while the Department of Public Works and Infrastructure (DPWI) handles international border fence maintenance. The Department of Forestry, Fisheries and Environment handles the Kruger National fence. Concerns include vandalism, flattening of the Kruger National Park by animals like elephants, and flooding. The Department has implemented a programme to address these issues.

The Committee had reported that the lack of markets for small-scale farmers leads to crop losses, necessitating government support for small business development. Banks typically require a 5% contribution for business loans, but applicants lack the capital to meet this requirement, causing further challenges in rural and township economies.

In response, the Department of Agriculture has partnered with the Office of the Premier to provide farmers with contracts for potatoes and crops. The Department of Agriculture manages two producer support interventions: 1. The Comprehensive Agricultural Support Programme and Ilima/Letsema, aimed at resourcing and equipping producers for increased food production and value chain activities. 2. Land Development Support (LDS), which is provided to all farms, including those leased from the department by farmers. Business plans are developed by commodity organizations, determining the level of support required for farmers to enter the commercial space. Other support is provided under Enterprise Development (DTM), which supports the number of cooperatives and other enterprises to farmers. These support mechanisms aim to help farmers access commercial space and improve their livelihoods.

The Blended Finance Scheme, managed in collaboration with approved financial institutions, offers loans and grant facilities to deserving applicants for commercialization. The Land Bank and the Industrial Development Corporation are the active institutions, with further discussions with commercial banks

The lack of cell phone towers in rural areas hinders business and employment, as people without internet or cell phones cannot see online job advertisements. This makes dealing with stock theft difficult, as it takes too long for police to reach the area. Farmers suggest using traditional leadership to supply radios for direct communication with the police.

The Department of Communications is best placed to address these issues, and collaborations with localized institutions are being explored to enhance access and enable those without gadgets to access information and submit requests. The South African Police Service and Department of Cooperative Governance and Traditional Affairs are best placed to address these issues.

Recommendation:The Department of Agriculture should engage the Department of Small Business, Provincial Treasury and big companies to assist with expansion and sustainability of the project. Some project founders died through Covid-19, and this has led to staff shortage.

Response: the Department of Agriculture is currently assisting with transport to move produce to platforms to enhance the market access. Apart from the departmental intervention, the Radical Agrarian Socio-Economic Transformation (RASET) through the Department of Economic Development, Environment and Tourism in the district also assists.

Recommendation: The Department of Agriculture was requested to assist with the provision of transportation and marketing the produce. Another challenge, there is no branding and signage for the project and thus communication of the products / produce to the target market is a challenge.

Response: The Department of Agriculture assisted farmers in terms of financial planning and branding inclusion from the budget allocated to projects.

Recommendation: The Department should engage SEDA to assist the project with branding and signage. Feed is expensive and unaffordable. The external market is the main challenge as the project is currently supplying only locals. Most shops approached prefer Halaal chickens; that is a challenge as they are currently lacking capabilities to produce Halaal chickens.

Response: The Department of Agriculture together with the Department of Education are working together and have access to markets. The Department of Agriculture have also engaged the economics section within DALRRD to provide training to farmers for the following areas: South African Good Agricultural Practices (SA GAP). Smallholder Horticulture Empowerment and Promotion (SHEP) training for Halaal training and compliance; and Broiler short courses and slaughtering.

Recommendation: The Department of Agriculture should engage the Departments of Education and Health for the expansion of access to the market. Another challenge, Shortage of agricultural advisors in the district is another shortcoming to projects of this nature. Only one agricultural advisor is allocated to mentor and service all the farms under Ray Nkonyeni LM and this allocation is not adequate.

Response: The Department has deployed an agricultural advisor in each ward within the district including all wards from the Ray Nkonyeni Local Municipality.

Key issue: The Committee learnt that after financial loss was suffered under the strategic partner, the Ratombo CPA applied for RECAP (before the current redirection of CASP to COVID-19 relief funding) but has not been able to secure any funding. The Committee requests feedback on the reasons for turning down the application, particularly considering the challenges it is facing with the maintenance and development of the farms returned to the community at great cost.

Response: There has been a backlog on CPAs that needed to be funded due to budgetary constraints.

Key issue: Recent floods had an enormous impact on operations of this project as production was delayed, and infrastructure was affected.

Response: The Department assisted with agricultural inputs (site filling, fencing and irrigation). This was completed and handed over to farmers.

Discussion
Ms W Ngwenya (ANC Gauteng) asked if the department had met with the people in Ugu district and responded to the concerns raised. The district municipality consists of four local municipalities (Ray Nkonyeni, Umuziwabantu, Umzumbe and Umdoni Municipality), has 440 Traditional Council areas and 86 municipal wards. Communication is crucial. She asked about the department's engagement with the people of Ugu district and KZN in general. She expressed her willingness to return to Ugu if time permits.

Ms L Bebee (ANC KZN) said she was satisfied with the progress made since the Committee visit to KZN in November 2022. The department has made progress and is open to discussing challenges.

The Chairperson acknowledged the training and skills development programmes provided by the department and asked for the number of young individuals who have been supported and benefited from them. The department has relevant information about its services but the challenge is making the information accessible to people in remote areas. She suggested enhancing the department's marketing and public relations strategy to make its services more accessible to the people in the Ugu district and KZN in general.

Ms Bebee thanked the Committee for the opportunity to discuss these concerns.

Ms Ngwenya asked about the lack of markets for small scale farmers, leading to losses. She mentioned the experience of poor banana sales in where foreign sellers sold bananas cheaper than locals, causing significant losses for small businesses. The department has listed two interventions for market creation: one for potatoes and the other for unlimited production. She requested more details on the number of farmers benefiting from these interventions and the percentage of local production taken up by these markets.

The Chairperson asked if all aspects of the department's programme are available in Ugu, how many facilities and services are offered, and how many of the district farmers are assisted annually. Her second question was if rural farmers are also supported, as they are often far from town and may not know what is happening in town. She suggested that the department should provide hard copy application forms at district offices and clarify how many small-scale farmers have successfully applied for support and the scale of support they receive. Thirdly, she asked about the demand for young individuals to be supported with training and skills. Youths were often trained but were not placed or financially supported after the training. She requested that this happen. The department can respond in writing to her questions where necessary.

Department response
The Department had no time today to provide a detailed report on the beneficiaries, budget, and services provided. They promised to communicate its response to stakeholders, stating that they interact with beneficiaries on an ongoing basis. They will soon contact the local Economic Development Manager in Ugu District for a briefing session as well as present to the municipal council. They will provide the requested information about young people in a written response to the Committee.

The Department has local offices in the deepest rural areas, particularly through the Provincial Department of Agriculture, which they work closely with. They conduct stakeholder management sessions through their own communications unit and a national department and local office in the province. However, they will try to extend these sessions to all areas, especially in the deepest rural areas where many of their projects are located. The department will continue to work closely with farmers and local governments to ensure their services are accessible and accessible to all.

The policy of the National Rural Youth Service Corps (NARYSEC) has changed. They now recruit for specific purposes. They no longer mass train youth but instead focus on securing employment or placement for the participants. This approach ensures that participants are placed in suitable jobs after training. For example, 15 youths are currently undergoing leadership training in Saldana, and upon completion of their training, they will be employed in a manufacturing project. It recruits youths linking to a security company and motor mechanics in different districts. They aim to recruit for a purpose, ensuring that when the youth leave the programme, they have a placement. They have previously recruited some from Nkosazana Dlamini Zuma Municipality, traffic officers from Nkandla Municipality, and firefighters from Harry Gwala district municipality. The importance of focusing on the purpose of recruitment is emphasised.

Deputy Minister closing remarks
The Deputy Minister agreed with the Select Committee's approach and emphasized the need for specificity. She acknowledged the need for consolidation and governance structure in the Farmer Support Centre, which has not been achieved. She also addressed the confusion between the Rural Development and the Agriculture Department and emphasized the need for the departments to merge and integrate, ensuring matters should be placed where they belong, rather than referring matters to the Select Committee nationally.

The Deputy Minister believes that it has a significant role to play in ensuring rural development and its impact on service delivery. The report currently only depicts rural development and does not provide a detailed analysis of its impact on service delivery. The Committee members and farmers expected a specific report on certain areas. The NCOP went to the Ugu District to discuss funding and land utilization. Another meeting was held where the NCOP was supposed to address economic development and agriculture, but it was not attended.

The Deputy Minister believes that for coordination and a single point of accounting, the entire Department of Agriculture and Rural Development should be involved. However, gaps remain, as each of the two departments does its own thing and it is not integrated for service delivery. To address these gaps, the Deputy Minister has been working with the KZN Province and Premier and the Service Delivery Coordinating Committee has been established to ensure that the two departments are integrated and working towards a common goal.

The KZN Department noted the Deputy Minister's complaints about gaps in information and the need for a report to address these. They acknowledge the need for coordination. The policy change in NARYSEC, which now involves recruiting those who went for training. This approach aims to address skills backlogs and ensure local municipalities participate in return for those who go for training to return and perform their duties. They apologized for not meeting expectations and for taking time to address the NCOP report.

The Chairperson thanked the Deputy Minister for the presentation. The Committee appreciated Deputy Minister's response and accountability on the issues raised. They would send further questions to the DARLLD for response in writing by next week.

The minutes of the previous Committee meeting were considered and adopted.

The meeting was adjourned.