Minister of Agriculture, Land Reform and Rural Development Budget Speech, responses by FF+, DA, EFF & IFP

Watch: Mini-Plenary (Debate on Vote 29) 

Budget and policy speech by Minister Thokozile Angela Didiza vote 29, Department of Agriculture Land Reform and Rural Development

Honourable Chairperson
Honourable Members
Deputy Ministers Skwatsha and Capa
Ministers and Deputy Ministers
Chairperson and Members of the Portfolio Committee
Members of our Statutory Boards and Councils
Special Master of Labour Tenants – Prof Richard Levin
FAO Country Representative - Dr Babagana Ahmadu
Sector Representatives in their various capacities
Senior Officials from the Department and its entities
Ladies and Gentlemen

Good morning. Avuxeni! Molweni! Goeie More! Sanibonani

The year 2023 marks the 110th year of the promulgation of the Native Land Act which alienated the indigenous people of our country of their birth right, their dignity and economic and social wellbeing from their land. This is a past that we all seek to redress.

South Africa’s rich agricultural heritage has long been an integral component of the nation’s economy and cultural fabric. The lingering effects of apartheid and colonialism have created disparities in resource allocation, infrastructure, and opportunities  for growth in the agricultural sector. Additionally, the multifaceted challenges have further hindered the ability of traditional agricultural areas known before as the reserves to thrive. The limited market access of these rural spaces has also curtailed the potential for economic growth and self-sustainability among these communities.

In this financial year we make a case for investment in these areas following the analysis that has been done by our spatial planning unit and the economic team from the National Agricultural Marketing Council (NAMC). Through their work it is clear that if we restore even a mere 10 percent of this land by putting it back into production we can increase the real GDP by R59 billion  over and above the business-as-usual baseline if everything remains the same.

This could unlock approximately 500 000 job opportunities in agriculture and related rural economic activities. This assessment is supported by work that some of our provinces have done and are doing in mapping the potential of the land for various regions.

If we take the greening Mpumalanga project where in each district certain areas have been identified and supported, initial shoots have been positive making it clear that investment , skills development, infrastructure development, and enterprise support can turn rural areas into economic districts. The work that we have done also confirms the research undertaken in support of the Agriculture and Agro-processing Master plan.

We will upscale the mapping and geospatial analysis of our communities using our drone’s technology. This analysis will strengthen our understanding of these rural areas that is suitable for crop cultivation and grazing.

Today we are tabling the budget for Vote 29, Department of Agriculture, Land Reform and Rural Development for your consideration and support. The overall allocation for this financial year is R17, 254, 348 billion including transfers to Provincial Departments of Agriculture as part of the Division of Revenue Act as well as to the Entities that supports the work of the department in terms of our Constitutional mandate.

This 2023/24 allocation will enable us to implement  programmes that  continue to address food security needs of our communities and our country, address land hunger, transform spatial planning, and contribute towards the development of our rural areas in partnership with other spheres of government. At the same time, these resources will be channelled towards ensuring that agriculture, land and rural sectors continue to play integral roles in the economic reconstruction and recovery.

Honourable Chairperson, it is almost a year that we have held the Summit on Communal Land Administration and Tenure. This was an important milestone in which firstly, the democratic government has made a firm decision in divesting its trusteeship of land in order to ensure that communities under communal areas can own and administer their own land.

Secondly, this move affirms the policy directive that South Africa has varied tenure systems even though some are not codified in law but have been practised for many centuries. It must be noted however that government will continue to work with these communities and their leaders on a better land governance and administration system.

The United Nations working paper on land administration puts this succinctly where it posits that – “Importantly the administration of land resources has an important bearing on the democratic process. Structures governing access, control and management of land are as much about democracy as they are about asset stewardship. Linked to this is the need to integrate land administration and management into systems of governance at all levels.”

The importance of land governance is not only critical for communal areas, but for all land including that which has been transferred to communities through land reform programmes. Deputy Minister Skwatsha will elaborate on the work of our land reform programme.

Honourable Chairperson and honourable members, working with other spheres of government through the District Development Model we are making interventions that will support rural enterprises as part of improving rural economies. In the past year, we have ensured that some young people who have been trained through NARYSEC are absorbed into employment and that critical infrastructure to support agricultural development is laid out through the Farmers Support Production Units.

As part of coordinating improvement of rural roads, we are working with other spheres of government and entities. Our focus will be biased to those that can support rural enterprises with larger impact. Deputy Minister Capa will deliberate further on the work we are doing in this area.

Climate change

Chairperson, last year when we presented our Budget Vote we were addressing an unprecedented outbreak of locusts due to the good rains that we experienced in our country. Despite this challenge we were able to mitigate against the outbreak. We are ready for any outbreaks for the 2023 season. This year, a major challenge that could confront South Africa's agricultural sector in a few months is a change in weather conditions from favourable rains to drier and hot conditions. This would be a switch from a prolonged period of La Niña to El Niño.

Scientists at the South African Weather Service and other global institutions see a potential occurrence of an El Niño later in the year, a probability of occurrence is over 60%. Our department, supported by data from the South African Weather Services, will issue regular advisories to farmers to ensure that we manage this period.

The Macro-Economic Environment

On the upside, South Africa’s agricultural sector grew by a cumulative 25% in real value-added, where approximately 55% of the value was generated from export earnings between 2020 and 2022. During the same period, the sector created about 50 000 new jobs, increasing the total number of people employed in the sector to 860 000. 

About 9% of agricultural output is produced by previously disadvantaged farmers, implying the sector is growing and gradually improving on inclusivity, this progress is encouraging but a far-cry from our vision of a united and prosperous agricultural sector. Through the Agriculture and Agro-processing Master Plan we have set transformation targets to ensure that our sector is inclusive.

The growth in agriculture could be attributed to the enhancement of its competitiveness, made possible by clear policies, regulatory environment and financing instruments such as the statutory measures and agricultural trusts that have financed the collection of industry data, market development, transformation, and research and development as well as innovations.

Honourable members in presenting this budget policy statement, we also give report back on the commitments we made in the past year. We are also indicating priority areas in line with the pronouncement of our President during the State of the Nation Address.

Farmer development support programs:

• Through input vouchers from the Presidential Stimulus Initiative, we supported 157 000 subsistence farmers.
• Through the Land development support, we reached our target that we set of supporting 83 farmers on Plaas farms.
• The blended finance facility with IDC approved 20 transactions creating 845 jobs, 30 percent being women owned businesses and 10 percent being youth.
• The blended finance facility with land bank has approved 35 transactions which thus far created 588 jobs. 33 per cent of these are women owned enterprises and 27 per cent are young people.
• We were able to set up two demonstration facilities for hemp production, lesser than our commitment.
• Market opportunities for small scale farmers continued to be opened at local level supported by the department and through partnership with Stakeholders.
• Farmer business development support has been undertaken by industry and the department of Small Business
• The Task Team on Biosecurity tabled its report with recommendations and valuable insights has been given on how we can improve our animal health systems as a country.

Statutory Levies and Industry Trust

NAMC has continued to offer valuable market information and analysis to both government and the agricultural sector. Such information has enabled agri-entreprenuers to make informed decisions in terms of marketing of their products.

Statutory measures and trust as provided for in the Marketing of Agricultural Products Act, play a meaningful role in the transformation of our sector. In 2022, R986 million was collected, 20 per cent of these go towards transformation of the industry.

The NAMC using the regulation through commodity associations has supported farmers in particular developing farmers in various commodities with financing for research, market development and export promotion. In the 2022 financial year, the Maize Trust has spent R17,9 million on transformation and has assisted 4650 farmers who are active in the maize industry. Of these 94 farmers are commercially viable and 195 have a potential of becoming commercial farmers who are farming on average 100 ha.

On the Citrus R50 million was spent supporting 124 black farmers on cultivars, orchard development, farm equipment, irrigation and preparation for exports readiness. Of the 124 farmers, about 50- 78 are exporting almost a total of 6 million cartons.

In this financial year the NAMC working with our industry players will ensure that the expenditure on Trusts and levies support the identified commodities in line with the Agriculture Agro-processing Master Plan.

NAMC is finalising the construction of the feedlots that were already in the process of construction as part of the National Red Meat program. This does not indicate a reversal of the decision that was made to transfer this program to the ARC .

Commitments out of acquisitions in the agricultural sector

The Department of Trade, Industry and Competition has ensured that industry transformation continues where acquisitions take place. This has been done through engagement with departments whose sectors are impacted upon.

1. PEPSICO

As part of the acquisition of Pioneer Foods by PEPSICO, a commitment of R300 million towards black farmers to upgrade their businesses and integrate them into the value chain was made as part of concluding the deal.

Karan Beef and SK Caine Farming, Caine Farming PTY LTD and AAA Meat PTY LTD Deal

We are also aware that the acquisition conditions of this deal will have a positive impact on the supply development of black farmers and access to markets for small scale farmers.

Cannabis master plan

The current Private Members Bill has been expanded to include commercialisation of cannabis and hemp. Currently, the National Assembly is seized with processing public comments on this section of the Bill. The Inter-Ministerial Committee has also been meeting to give direction to ensuring that interim measures on commercialisation of hemp are realised.

These measures include changes to the existing THC limit for hemp to 1% and amendment of Schedules 4 and 6 of the Medicines Control Act. The Minister of Health is currently considering these changes. Demonstration sites for hemp production has been set up in Rustenburg in Northwest and Roodeplaat in Gauteng provinces. To date, 397 hemp permits were issued by the Department for hemp production. 

Agri-financial support 

Chairperson, support to black producers in Agriculture and Agro-processing is an important vehicle to bring about transformation in the sector, to this end the Department continues to strengthen the Blended Finance model to increase access to affordable finance.

To broaden the scope of support even further, the Department is in the process of concluding agreements to extend the blended finance scheme to commercial banks in the 2023/2024 financial year, I will soon make an announcement in that regard.

Financial support to subsistence and small-scale farmers 

Chairperson, through the conditional grants CASP and Ilima/Letsema we have in the past financial year supported 15 853 and 25 781 farmers respectively. In this year, the provision of R2.15 billion will further assist farmers with production inputs and infrastructure from these two programmes. 

Through MAFISA programme, that allows for the charging of lower interest rates on loans to farmers, a total of R19 Million at the Land Bank available to support small-scale producers. Since its inception, MAFISA has assisted over 25 732 farmers.

During the financial year 2022/2023 we committed to support 83 farms, and I can report that the preliminary performance report indicates that the target has been achieved.  Mr Frank Monage, a grain farmer in Limpopo specialising in sunflower supported by through the LDS started planting 250ha. He has since expanded his hectares to 371ha in the past planting season and he is planning to add 70ha in the coming planting season. Since LDS support in year one, he continued to fund his subsequent production inputs.

Ms Chade Groenewald of Cutt Agric in NW is a broiler farmer. She was supported with two new 40 000 capacity broiler houses and refurbishment of an additional 40 000 capacity house. At this point in time, she is producing three houses all of them at full capacity with a secured market.

For the current financial year 2023/ 2024, the LDS programme will support 66 farms with a budget of R449 million with production inputs, on-farm agricultural infrastructure, mechanization, implements and equipment, and finally operational costs. The Department continues to conduct this work in partnership with commodity organisations and commercial banks.

Reviving agriculture in communal areas

The National Development Plan (NDP) (Vision 2030) recognizes the need to integrate rural areas in agricultural development by mainly expanding irrigated areas and promoting dry-land farming where feasible. The NDP further envisions the conversion of underutilized land in communal areas and land reform projects into commercial production. This year, we will focus on these areas including engagements with Amakhosi to facilitate the development of areas-based plans to revive agricultural production. The Department has already begun with drone flyovers in some communal areas to map these areas in order to facilitate better planning.

Market access

Access to new market continues to be a key focus area of the department.  To achieve the expected increase in horticultural trade (i.e., R 90 billion by 2030) and livestock and livestock products, new markets must be accessed, and existing ones must be retained and optimized. The department’s efforts in negotiating, finalizing and complying with import requirements which is key in achieving these goals of expanded trade are ongoing. 

Our market development strategy is based on retention of existing markets and developing of new markets. We also take into account the need for comparative advantages and complementarity where our seasons are complementing those of our trading partners even where we produce same commodities.

Research and development and the use of technology underpin our product development.

Local or what is commonly known as live markets are important as an entry point for our emerging farmers . Mr Lehumo Mokgotho, a younger farmer from Moletji in Limpopo , supply Goseame Shop and R and G Meat with sixty carcasses of  lamb and goat meat on a monthly basis.

The greening Mpumalanga program has seen women farmers having their vegetables at our retail shops such boxer and spar. In partnership with these retailers, we have trained small scale farmers on how they can access markets including the retail market closer to them.

Chairperson, the Department’s surveillance of pests and diseases is key not only for our country’s agricultural production but equally important to maintain the confidence of our trading partners, especially when the pest or disease has a quarantine categorization in the territory of the trading partner.  Through engagements with partners such as the National Animal Health Forum (NAHF) we have been able to engage industry on animal disease control matters, including on surveillance.

The Department will continue its surveillance, and intervention measures of the exotic fruit fly, Citrus Greening and Banana Bunchy Top Virus as well as surveillance of livestock diseases of economic importance including the Foot and Mouth Disease (FMD), Contagious Pleuropneumonia (CPBB). Control of the Foot and Mouth Disease in recent month has demonstrated a need for investment in prevention rather than control.

In an effort to ensure the integrity of the food value chain and protect consumers from food fraud and their rights to food choices, the Agricultural Research Council (ARC) has partnered with the Department in using whole genome sequencing to investigate and curb the incidences of contamination and adulteration of meat products with undeclared species.

The country has experienced an unprecedented increase in disease outbreaks. This resulted in an unprecedented number of samples being submitted from the field. The ARC rose to the occasion by responding excellently and timeously processing all the samples without fail.

Chairperson, this afternoon we will be releasing the report of the Biosecurity Task Team, together with the Action Plan of the Department in addressing the findings.

OBP and vaccine manufacturing in SA

Chairperson, safeguarding our herd and animal health is a priority for a prosperous livestock industry. The OBP which has been the bedrock of critical vaccine production in our country has been experiencing production challenges of the past few years. I met with the National Animal Health Forum and made a commitment towards ensuring that we bring stability to the OBP.  I was part of engagements between the OBP and a world-renowned pharmaceutical role player to assist the OBP to produce vaccines. This private sector player has already visited the OBP and measures to assist the OBP to produce essential vaccines are being put in place.

I am aware of matters that are being raised about critical vaccines for African Horse Sickness and Bluetongue, both of which are controlled diseases. I am also aware of engagements between the OBP and the Equine industry on resolving the African Horse Sickness vaccine availability.

Quite a few opinion pieces have been given on these issues, the bottom line being that the authorities have to respond quicker. Chairperson, I confirm that the Registrar and Director for Agricultural Inputs Control had received applications for Bluetongue vaccine. This application will be fast-tracked in acknowledging the urgency of such a registration.

The pace towards strengthening the country’s ability to produce Foot and mouth disease (FMD) vaccines and ensure animal health security has gathered momentum.  Following re-registration as a stock remedy under Act 36 of 1947, the ARC can now use its vaccine as part of the Department’s FMD prevention programme. Building on that registration, the ARC has proceeded to formulate 20 000 doses of the vaccine and made it available to the Department to be deployed as and when its needed.

To ensure that the country has sufficient capacity to produce the FMD vaccine in future, the ARC has completed Phase I of the FMD Vaccine Production Facility towards a fully-fledged facility that will be able to fully meet the requirements of the country and beyond.  While the factory is being developed, investment towards mid-scale production capacity has also begun with support from DALRRD and this will put the country at a much better position.

International trade and market access 

Chairperson, the world of agriculture, including its trade, as governed by the WTO Agreement on Agriculture has been stagnant over the last decade. The aspiration of establishing a fair and market-oriented agriculture trading system has been elusive. Ministerial conference after Ministerial conference have not yielded the desired reforms in agriculture.

In June 2022, I attended the World Trade Organisation’s 12th Ministerial Conference where we, the ministers of member countries, adopted Sanitary and Phytosanitary (SPS) Declaration which responds to modern SPS challenges. A Ministerial Declaration on the Emergency Response to Food Insecurity was also adopted to provide for emergency measures that countries must take during unforeseen situations to ensure global food security.

However, these declarations while moving the agricultural agenda forward, offer very little to ensure that developing and least developed countries are protected. In the 13th Ministerial Conference in UAE in February 2024, South Africa will push for reforms that will create a fair agricultural trading system.

At a bilateral level, our efforts to improve market access for our country’s products on the international markets are bearing fruit. In June 2022 we signed the Protocol of Phytosanitary Requirements for export of Soybean from South Africa to China and in August 2022 we successfully negotiated the lifting of a ban on South Africa’s wool and other cloven-hoofed animals ‘skin products with China. There were several inspections in favour of South African animal and plant products in export markets such as Saudi Arabia.

Recently on the 4th of May 2023, a total of 54 million tons of maize for feed from South Africa docked in the port of Dongguan, China. Chairperson. This import of maize was captioned in China as it is reported that it has injected long-term impetus into food security, strengthening agricultural cooperation of China with South Africa, and promoting the interconnection of industrial chain supply chains between the two countries.

Despite the progress we have made, challenges  remain. For example, in the middle of South Africa’s 2022 export season, the EU published the implementation of the new regulation, which required prolonged cooling of the citrus, namely before and during shipping the citrus. The proposed measures will put severe pressure on the financial sustainability of producers, especially smaller and black growers thus dealing a blow to our transformation plans.

In responding to this pressure, together with the Land Bank, the Department is considering a number of measures to assist these farmers. The Department has also secured funding to the tune of R19 million for the Ripplemead Citrus Pack shed in the Keiskamma Valley in the Eastern Cape.    

In addressing the challenges with the EU, the Department is working with the relevant stakeholders towards resolution. Together with my colleague minister Patel at the DTIC we had robust engagements with the EU during the EU-SA political dialogue in January of this year to resolve this matter. The current considerations are on setting up a panel in the WTO as part of the Dispute Resolution Mechanism.

The Agro-Energy fund

Chairperson, earlier this year, in response to the energy challenges in the sector, I established a Task Team comprising of sector partners, The Task Team has engaged with ESKOM on solutions to mitigate against the impact of energy cuts on the sector.  In addressing alternative energy sources in the sector, we are setting up the “Agro-Energy Fund” at the Land Bank. The focus for the Agro-Energy Fund will be on energy intensive agricultural activities.

These will include irrigation, intensive agricultural production systems and cold chain related activities. The criteria that will be utilised is as follows:

• A large-scale farmer will receive 30% grant funding to be matched with 70% loan portion, where the grant amount is capped at the maximum of R1.5 million.
• A medium scale farmer will receive a 50%` grant to be matched with 50% loan portion, where the grant is capped at the maximum of R1 million.
• Smallholder farmers will be supported by a grant portion of 70% to be matched with 30% loan. For this category the maximum grant funding is capped by R500 000. There will be a special recognition and application mechanism for small-scale irrigation schemes.

Hosting of international events 

In conclusion Chairperson, we continue to engage in multilateral fora in order to advance our national interest in respect of agriculture. We must remain focused in ensuring food security for our country.

As part of international engagements, we will be part of the Southern Africa Round table on agricultural policy which will be hosted by Zambia in June. We will also participate in the G20 Ministerial meeting and the Food and Agriculture Conference which will also elect the Director General.

As we all know, NAMPO will be hosting its prime agricultural expo this month. This event draws regional and international agricultural players . it offers us an opportunity to show case the agricultural sector including the agricultural machinery which is critical for production and processing of agricultural goods. At the same time , this premiere agricultural event contributes to the local tourism.

We are hosting a few international events as a country. Firstly, the Department, together with SAAI and AFASA will be co-hosting the World Farmers Congress in Sun City from 21 – 23 May 2023.

In June 2023, we will co-host with FARA, the 8th Africa Agribusiness and Science Week from 5 to 8 June 2023 at the ICC in Durban.

The department will host the BRICS Agriculture Ministers Meeting in July this year as a precursor to the BRICS Summit, which our country is hosting. The overall aim of BRICS Agriculture Cooperation is to improve access to food and increase comprehensive food production. The event will be hosted in Limpopo and South Africa will showcase rural development and climate change programmes.

I thank you.

 

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2023 BUDGET VOTE SPEECH BY THE DEPUTY MINISTER OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT, MRS ZOLEKA CAPA

Honourable Chairperson

Members of the Portfolio Committee Minister Thoko Didiza

Deputy Minister Mcebisi Skwatsha Honourable members

Ladies and gentlemen

It is indeed an honour to address you today as we table the Budget Vote 29 of the Department of Agriculture, Land Reform and Rural Development.

Chairperson, honourable members, this budget vote comes at a time when our country is experiencing an unprecedented power crisis, which has a destabilising effect on all our communities.

Our rural communities who are still recovering from the effects of the COVID- 19 pandemic are now impacted by the electricity crisis, which has added to the hardships experienced by people who already carry a disproportionate burden of poverty, unemployment and limited access to information and communication technology.

While our government is working to address these challenges, the Department of Agriculture Land Reform and Rural Development, working closely with provincial governments, municipalities and traditional councils, must strengthen its role in alleviating poverty, underdevelopment and unemployment in rural areas. To this end, the department is spearheading several initiatives aimed at uplifting the standard of living in rural areas and improving conditions on the ground.

CLIMATE CHANGE

Climate change is a threat to food security and nutrition, it also poses greater challenges to the poor and most vulnerable sections of our society. The Climate change phenomenon is characterised by, among others, extreme weather conditions that could have resulted in the recent flooding in Komani in the Eastern Cape, which saw the displacement of hundreds of families, and many other natural disasters.

The country experienced flooding due to heavy rainfall during early February and March this year. Mpumalanga and KwaZulu-Natal were badly affected. Crops and infrastructure were damaged and farmers experienced loss of small stock due to drowning. The two affected provinces requested a sum of R307 million with Mpumalanga requesting R297 million and KwaZulu-Natal requesting R10 million.

The department is implementing programmes to address the impacts of climate change on the agriculture sector in compliance with the national and sectoral legislation. Over the past few years, our country has recorded increasing climate variability and climate change generated disasters that have resulted in the socio-economic implications and have negatively affected our country’s economy and the livelihoods of people and farming communities.

RURAL DEVELOPMENT STRATEGY

The Integrated Rural Development Sector Strategy (IRDSS) and the Comprehensive Rural Development Programme (CRDP) put rural infrastructure development and skills development at the centre of rural development and rural economy.

Chairperson, the IRDSS which has been approved by the minister, after consultation with all sector departments and the South African Local Government Association (SALGA), will be tabled in Cabinet for adoption and approval. The objective of the IRDSS is to create a multidimensional and cross-sectoral instrument to guide planning, implementation and reporting on rural development initiatives and programmes in an integrated and coordinated manner, through the District Development Model.

The strategy acknowledges that rural development is a transversal function and cannot be executed successfully without collaboration amongst a variety of social partners and the participation of rural communities.

RURAL INFRASTRUCTURE DEVELOPMENT

Chairperson, investment in infrastructure can play a crucial role in supporting rural communities in several ways. It can help to create jobs, stimulate economic growth, and improve the quality of life. The department has completed 440 infrastructure projects at a cost of more than one point seven billion rand (R 1 707 382 633), contributing to the National Infrastructure Plan (NIP) in the previous financial year. In the 2023/24 financial year, the department will be implementing 83 infrastructure development projects in Farmer Production Support Units (FPSUs); Fencing and Animal Handling facilities.

Chairperson, the poor state of rural roads and the inaccessibility it causes to rural communities continues to be one of the primary impediments to optimal economic productivity and access to services.

Last year, the department commenced with the Rural Roads Programme, which prioritises village access roads, farms and FPSUs that support small- scale farmers. Through this programme, the department will deliver eleven

(11) farm access roads, nine village access roads and eight FPSU access roads, with a budget allocation of over R300 million in the 2023/2024 financial year.

The department has committed R21 million as part of the partnership with the Development Bank of South Africa (DBSA), to construct the Dikidikini Bridge and access roads in Ntabankulu Local Municipality under Alfred Nzo District Municipality. The Dikidikini Bridge will connect two villages and allow school children access to primary and high schools, and economic activities between two districts, Alfred Nzo and O.R. Tambo.

In the Free State, the department is upgrading the Sediba Bridge in Thaba Nchu and paving the road in Mangaung at a cost of R18,7 million. In Limpopo, the construction of both the Komape and Moletji pedestrian bridges is expected to be completed by end September 2023.

The construction of the Mtentu Bridge in the Mkhambati area by the South African National Roads Agency (SANRAL) has already created job opportunities for the locals, and it promises to create more. Several households and graves are currently being relocated to make way for the proposed road. Once completed, the Mtentu Bridge will be the highest in the continent at 223m, and the Msikaba Bridge will be the third highest in Africa at a height of 194m.

Chairperson, we must ensure that our people in rural areas do not get left behind as the world moves further into the information and communication technology (ICT) age. The department is collaborating with the Department of Transport and SANRAL, using the SANRAL Vala Zonke Pothole App, to allow for the capturing of rural roads into a live database accessible to key stakeholders undertaking road maintenance and repair. The App allows for capturing: Details of capturer the GPS location, the type of road, a pothole and a picture. This initiative will further support efforts to ensure that rural communities’ benefit from the use of technological advancement in society and the services available for roads maintenance.

ANIMAL VELD MANAGEMENT PROGRAMME AND CURBING ANIMAL DISEASES

Chairperson, many of our farmers have suffered losses as a result of the outbreak of foot-and-mouth disease in parts of our country. In response, the department is rolling out a series of mitigation and intervention measures, which includes the construction of 20 new dip tanks to the value of R18 million and the refurbishment 56 dip tanks at a cost of R17 million in KZN, along with 142km of fencing.

RIVER VALLEY CATALITIC PROGRAMME (RVCP)

Irrigation is critical for agricultural production as signified in the National Development Plan (NDP). The department is implementing the River Catalytic Scheme, which provides agricultural irrigation for communities. Projects that have recently been completed include the Bushbuckridge Irrigation Scheme in the eHlanzeni District, providing 35 kilometres of irrigation canals to the value of R50 million.

In Western Cape, the Ebenhaeser Irrigation Scheme, comprising of 52 kilometres of bulk water pipeline and pumps, brought 257 hectares of land under irrigation for 170 small-scale farmers and the local farming community in the West Coast District, thus enhancing the quality of their crops and facilitating access to markets.

In Mpumalanga, the department will construct the Malelane/ Nkomati Irrigation Scheme, which would comprise the refurbishment and installation of 2 200 hectares of drip irrigation at a cost of R87m, to benefit small-scale sugarcane farmers. In Eastern Cape, construction of an irrigation scheme of 14 hectares of arable land on the Mbashe river around the Mvezo Villages under Amathole District, Eastern Cape, costing R7,3 million.

REVITALISING RURAL DEVELOPMENT – SOCIO-ECONOMIC PROJECTS

Chairperson, the Mkhambati area’s development potential is a critical part of the Eastern Seaboard Smart City Development Initiative that is led by our sister department COGTA and manged by the Municipal Infrastructure Support Agency (MISA). This beautiful region, blessed with high biodiversity value and scenic beauty, has enormous potential for growth and prosperity.

In addition, the Mkhambathi Multipurporse Centre seeks to address the challenge of the people of Mkambathi, spending more than R160 return fare when seeking access to government services or offices. The facility will primarily be housing government departments including Health, Home Affairs, Social Development, Agriculture and the South African Police Service. It is an initiative of DALRRD, Local Municipality, Traditional Authority and the community. The budget amount is R24 million.

Furthermore, the agricultural potential of the Mkhambati area is enormous, and if fully utilised, it can assist the community to be self-sufficient, ensure food security, and generate income through community involvement in both subsistence and commercial farming. The Sappi Forest in Mkhambati is an example of a big economic activity in the area, creating job opportunities for locals.

The area is also rich in tourism potential, which can be fully realised with significant infrastructure investment. Despite the inherently valuable natural resources, tourism within the municipal area is deemed underdeveloped. The Mkhambati Nature Reserve is currently the only tourist facility that is attracting tourists . Mkhambati is believed to hold significant tourism and forestry potential.

Its proximity to the sea also opens a wide range of commercial prospects, such as fishing, food security, and life skills. However, any future development in this area should be guided and away from the sensitive and priority biodiversity areas. The construction of capital works and construction of a Memorial Centre and Doringnek Youth Centre in Zuurberg will be completed by end March 2024.

Chairperson, last month I had a consultation with the Ingquza Hill, O.R. Tambo District Municipality’s traditional leadership and religious leaders in Eastern Cape, to seek the involvement and contribution of the local leaderships in the rural safety concept. The scourge of gender-based violence (GBV) was central to our engagements.

As a result, the O.R. Tambo District Municipality and Department of Agriculture Land Reform and Rural Development have been tasked to work

with the local leadership in facilitating the establishment of a safety forum in the local community. We are planning to roll out this initiative in other areas as well.

Chairperson, my visit to Ingquza Hill, was sparked by the brutal killing of five members of the same family who were shot dead in the middle of the night in their home in Lusikisiki on 6 March 2023.

During my engagement with the surviving family members, neighbours and the community, I made a commitment to support them in whatever way I can to fight crime and GBV through the Rural Safety strategy.

NATIONAL RURAL YOUTH SERVISE CORPS (NARYSEC)

Chairperson, we are all aware of the devastating impact that unemployment has on communities, especially the youth. The NARYSEC programme aims to capacitate unemployed rural youth in various skills and to facilitate their transition to meaningfully contribute toward vibrant, equitable and sustainable rural economies.

NARYSEC has been a lifeline for many rural youths who have used the skills and training they acquired to lift themselves and the communities out of poverty by starting businesses and finding employment.

Since 2010, approximately 17 000 youth from rural areas have been trained and acquired skills through NARYSEC. In the 2023/2024 financial year, an additional 4500 youth will be trained through the NARYSEC programme.

Seven hundred (700) of these youth (60% female and 40% male) from all provinces commenced their training yesterday, Monday, 8 May 2023 at Dunnottar Military Base, Nigel in Gauteng. These youth will be trained and linked to economic opportunities in plant and animal health, agricultural manufacturing and maintenance, coding and robotics, construction, hospitality and traffic management.

Chairperson, honourable members, the department is implementing this programme in partnership with the South African Defence Force, The National School of Government (The NSG), National Youth Development Agency (NYDA), Road Traffic Management Corporation (RTMC), AgriSETA and National Agricultural Marketing Council (NAMC).

The department is working with public and private institutions that will provide them opportunities into the job market, whilst others will be opening their own businesses with the support of NYDA, South African Army, Department of Small Business Development and the Agriculture Business Chamber, amongst others. In addition, the discussions with John Deer and other partners such as the Ukhanyo Farmer Development (UFD), to enhance access to quality machinery and equipment by black farmers, seek to ensure continued production and commercialisation.

As I conclude, chairperson, honourable members, it is my hope that our plans and collaborative initiatives will bear fruit to make rural areas economically viable and safer for all our people, especially vulnerable women, youth and children.

ENKOSI!

 

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AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

REPUBLIC OF SOUTH AFRICA

Honourable House Chairperson; Honourable Minister Didiza; Honourable Deputy Minister Capa;

Honourable Ministers and Deputy Ministers; Honourable Chairperson of the Portfolio Committee; Honourable Members;

Board Members of our Entities;

Senior Officials of the Department and State-Owned Entities; Ladies and Gentlemen

1.INTRODUCTION

Tomorrow, 10 May 2023, it will be 29 years since the first democratically elected President was inaugurated. As we meet today, we should always remember where we come from. Indeed, we stand on the shoulders of giants.

Who can forget these lines which were shared in the National Assembly on that day?

“Never, never and never again shall it be that this beautiful land will again experience the oppression of one by another and suffer the indignity of being the skunk of the world” (Nelson Mandela, 10 May 1994)

We also need to recall that the first Act he signed into law was the Restitution of Land Rights Act -22 of 1994.

Honourable Chairperson:

I now turn my attention to our programs, Land Redistribution, Tenure Reform and Restitution of land rights constitute the backbone of land reform in our country. A lot still needs to be done for us to make a meaningful impact on the skewed land ownership patterns.

2.Land Redistribution

          2.1. Land acquisition

To achieve the goal of equitable access of the land as enshrined in the Constitution of the Democratic Republic of South Africa, the Department acquires and allocates land under the land redistribution program. In the 2021/22 financial year we reported that we acquired 57 000 ha of land, in the 2022/23 financial year we acquired 51 000 ha of land through the Pro- Active Acquisition Land Acquisition strategy (PLAS), exceeding our target of 35 000 hectares.

In 2023/24 we intend to allocate 36 711 hectares with our allocated budget of R427 million. I should mention that the high land prices are still a challenge, the rejection by landowners of values determined by the Valuer General remains a reality and a challenge especially in the Western Cape. This delays the finalisation of some land claims and land reform in general,

          2.2. Land Tenure Reform

In the previous financial year, we acquired 3154 hectares. The department has set aside a budget of R218 million for acquisition of land to address security of tenure, in this regard the department intends to acquire 5685 hectares of land in the current financial year.

The land to be acquired for tenure security addresses different land tenure needs including settlement of the Labour Tenants applications and Extension of Security of Tenure Act No. 62 of 1997 (ESTA) occupiers.

           2.3.Labour Tenants and the Special Master

To give effect to this constitutional promise, the Department has prioritized the settlement of outstanding labour tenants’ claims. The Land Claims court appointed the Special Master on Labour Tenants to work with the Department on expediting the settlement of these labour tenants’ claims. The Department received a total of 20 325 applications in seven (7) Provinces with most claims in KwaZulu Natal and Mpumalanga, a total of 10 992 claims have been finalized, with 9 333 claims still outstanding.

Honourable members, working with the office of the Special Master on Labour Tenants, a Labour tenant implementation plan has been developed and approved by the Land Claims Court. The Department is currently processing applications for awards of land by labour tenants.

The Department is therefore working with the Special Master to settle all the outstanding labour tenant claims as ordered by the Land Claims Court and targeting to finalize 758 labour tenant claims in the 2023/24 financial year.

The living conditions of farm dwellers remains a major concern for the Department. The Department has taken these findings of the Joint Portfolio Committee seriously and has since provided a report on interventions to address these challenges.

            2.4. Communal Property Associations (CPAs)

Currently, more than 1 700 CPAs have been established and registered nationally. In the past financial year 2022/2023, we registered eighteen

(18) CPAs and over 3 000 Communal Property Associations (CPAs) members received training on governance of these entities to ensure compliance with the Communal Property Associations Act.

We will further train 715 executive members on governance of these CPAs in the current financial year. In 2021 we said that we will be starting with an audit of CPAs and that it would take two financial years. Today we can report that the audit was finalised at the end of April 2023 and the Department must still receive the report and consider the way forward. The Provincial Presidential Izimbizo program really fast-tracked the Ministry’s interaction with our CPAs. Although we were unable to meet with all CPAs in a specific province, led by the Minister, we were at least able to interact with those needing urgent attention.

We thank the Honourable President for this initiative. After the Presidential Imbizo in Carolina, Mpumalanga, the Minister assigned the two Deputy Ministers to interact with CPAs in the three Districts, working with the MEC, we can report that this task was done and has had a positive impact. We visited Gert Sibande, Nkangala and Ehlanzeni Districts. Similar work was done in other provinces as well in collaboration with the respective MECs.

CPAs themselves must assist the Department by making sure that they work together and resolve their problems rather than taking each other to Court. More time must be spent on working the land and the business.

It must be emphasised that the executive is leading on behalf of the beneficiaries, for all the transactions they do on the land, they must account to the membership. The membership should have a voice on what is happening on their land and not be spectators.

           2.5. Communal Tenure -TRANCRA

Communal tenure remains another priority for Land Reform, the process to expedite the transfer of the 23 rural areas (so called TRANCRAA areas) in four provinces in South Africa, classified as coloured reserves, where certain land is held in trust for the respective communities. The four provinces are the Western Cape (12), Northern Cape (8), Eastern Cape (1) and the Free State (2). The transfer of these areas to communities has commenced despite underlying challenges in these historic areas that hampers progress of transfers. Progress has been made, a total of 106 000 hectares have been transferred to the communities. The Government will continue to make efforts to ensure the deserving communities receive their land.

The Department has targeted to transfer 43 000 hectares of TRANCRAA land to residents in the affected Provinces. We intend to give Tittle Deeds to two TRANCRAA communities, Concordia in Northern Cape and Enon Bersheba – in Eastern Cape - within this financial year. This constitutes about 91 000 hectares.

            2.6. Communal Tenure and Land Administration

In order to resolve the Communal land tenure challenges facing our country, we reported during the previous Budget Vote Speech, that the Department of DALRRD in collaboration with COGTA and DJoc&CS concluded the consultation process by hosting a Summit which resulted in 38 outcomes that are currently being processed through Inter Ministerial Committee in Agriculture and Land Reform and shall be presented to Cabinet for approval. The Department further hosted a seminar with academics to solicit further inputs. The Department has started with the development of the New policy and Bill on Communal Land Tenure and Administration in an attempt to address the communal land tenure and land administration issues.

3.RESTITUTION

On the 19th of June this year we will be marking 110 years since the enactment of the 1913 Natives Land Act which disposed and robbed millions of our people their land and consigned them to lives of deprivation and misery which had a devastating effect on social and economic position of black South Africans. There’s no greater grief than the loss of ones’ land.

2023 marks 29 years since the enactment of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994). We are determined to continue to highlight the importance of addressing the past land injustices, through the restitution process. While we celebrate the milestones achieved for the thousands of people who have benefited through this programme, we are mindful of the frustration of those who are yet to receive their land back.

One of those milestones is the beautiful success story of Luyolo Land Claim (Simonstown), in the Cape Metro – Western Cape. As we speak, people who were forcibly removed are moving back into their houses, built for them in Simonstown. Soon we will be witnessing a mass “Going Back Home” celebration where more than eighty claimants will be receiving keys to their properties. Amongst those claimants is a 76-year-old Mr Broadhurst Cona, who called me, requesting that I convey to the Minister and the Government of the Republic his appreciation for this achievement.

The Commission is committed to accelerate the settlement and finalisation of land claims through a backlog reduction strategy and the close monitoring of performance throughout the year. A total of 82 761 land claims have been settled to date and many Communities who were previously displaced have received their land with some having opted for financial compensation. The commission continues to report to the Land Claims Court in line with the LAMOSA Constitutional Court judgment. The Commission was able to present the seventh report in March 2023 on the progress made, challenges and plans to deal with old order claims.

In the last financial year, the Commission settled 355 and finalised 429 claims at a cost of about R3 ,9 billion. We were able to meet our targets with the budget allocation. In this financial year 349 claims will be settled, and 406 claims will be finalised  with a budget of R3.9 billion.There are many challenges that we continue to face in the process of settling claims which delay the settlement process. There are both internal and external factors which we continue to address.

The sustainability of some projects remains a challenge as a result of the lack of post-settlement support, conflicts and instability within the Communal Property Associations. A case in point, the Fish River Sun Hotel, which forms part of the property awarded to Prudoe community is today in ruins because of thugs who have vandalised the place. A facility which could have contributed towards economic growth in the area and provided much needed jobs is now in a sorry state. The Commission and the Department will continuously work to find meaningful solutions to these challenges.

4.OFFICE OF THE VALUER GENERAL

In fulfilling the vision of setting itself in the market as the centre of excellence and innovation in respect of all property valuations with a primary focus on land reform, the Office of the Valuer-General is making remarkable progress in this regard.

The Office of the Valuer-General continues to serve as a critical partner in enabling an efficient and effective land reform programme through the execution of just and equitable property valuations. In the previous financial year, the OVG has received valuation requests which are over 200% higher than the previous financial year due to the increase in the number of valuation requests from land reform programme and the OVG’s new clients. The OVG having successfully boarded the Department of Forestry, Fisheries and Environmental Affairs and Department of Water and Sanitation is expecting to attract new government departments in the current financial year.

The Office of the Valuer-General will continue to play a critical role in the completion of land reform transactions in alignment with the targets as set out in the annual performance plan of the Department of Agriculture, Land Reform and Rural Development for the 2023/24 financial year.

I am also pleased to report that the Ministerial Advisory Panel which was established in 2019 to review the Property Valuation Act 17 of 2014, has completed its groundwork and submitted a final report for the Minister’s consideration. This report which aims to provide recommendations which will improve the systems and structures of the OVG, is expected to trigger and drive the initiatives of change which will affect the OVG's nature, role and mandate.

In the same breath, the OVG is further looking forward to investing in a formal programme of digital transformation. This digital transformation strategy is expected to transform and accelerate the delivery of the set strategic outcomes as defined in the 2023/24 Annual Performance Plan to the benefit of the OVG’s internal business processes and the performance expectation of the overall clients.

The human capacity challenges that have been encountered in the past three years are also receiving attention through the review of the current business operating model which is expected to yield a turn-around strategy that will ensure adequate staff recruitment, retention and improved organisational performance.

5. CONCLUSION

Honourable House Chair:

I started my contribution with a quote from our Icon – Nelson Mandela and I wish to end with one of his quotes:

“Land creates stability and opportunities. For some, it simply means a place to live, securely without threat of removal or eviction. Forothers it is creating opportunity for the poor to provide for themselves, their families and their communities and to contribute to the wealth of the country as a whole, through productive agricultural enterprises”.

This is an invite to all stakeholders to work for the benefit of the those dispossessed of their land; including the opposition.

I thank you.