NATIONAL DEVELOPMENT AGENCY
PRESENTATION TO THE PORTFOLIO COMMITTEE ON FINANCE ON 22 AUGUST 2000

PURPOSE
n TRANSITION FROM TNDT TO NDA
n NDA ACT
n THE NDA CHALLENGE
n STRATEGIC OBJECTIVES
n BOARD OF TRUSTEES
n SOURCES OF FUNDING OF THE NDA
n THE FOCUS OF OPERATIONS
n NDA FUNDING CRITERIA
n PROGRESS SINCE THE ESTABLISHMENT
OF THE TNDT

TRANSITION FROM TNDT TO NDA
v The TNDT was established in October 1995 and the NDA on 1 April 2000
v A task team comprising board members of both institutions oversaw the transition
v TNDT policies, systems and procedures (including the funding policy framework) are being maintained until NDA equivalents are in place
v Contractual employment of TNDT employees by NDA until March 2001

NDA ACT
The National Development Agency Act was promulgated on 7 March 2000 to:
v grant funds to Civil Society Organisations (CSOs);
v strengthen institutional capacity;
v promote consultation, dialogue and the sharing of
developmental experiences; and
v develop strategies to collaborate with local civil
society and public bodies.

THE NDA CHALLENGE
v To influence and effectively implement poverty eradication strategies
v To form sustainable and effective working relationships with key role-players in the development sector
v To implement a programme approach to
poverty eradication.

STRATEGIC OBJECTIVES
(SECTION 3 OF THE ACT)
PRIMARY OBJECTIVES
v Carrying out projects or programmes to meet the development needs of poor communities

v Strengthening the institutional capacity of other civil society organisations involved in direct service provision to poor communities

SECONDARY OBJECTIVES
v To promote:
u consultation, dialogue and sharing of development experience
u debate on development policy

Undertake research and publication

BOARD OF TRUSTEES
The NDA Board of Trustees is composed of:
v six representatives from Government
v nine representatives from civil society, appointed by the Minister of Finance

BOARD MEMBERS
REPRESENTING CIVIL SOCIETY
Dr Rose September
Ms Nontobeko Moletsane
Prof Pali Mohanoe
Mr Peter Templeton
Ms Phomolo Modise
Ms Dudu Mokoena
Ms Mabel Rantla
Mr Nkululeko Sowaze
Mr Mlamuli Delani Mtembu
Dr Thoahlane Thoahlane (Chief Executive Officer)
REPRESENTING GOVERNMENT
Mr Eric Molobi
Ms Sagoona Gordhan
Rev Matthew Esau
Adv. Rams Ramashia
Mr Sybrand van der Spuy
Ms Gladys Sibeko

The Board is divided
v To honour all existing contracts with project partners and ensuring that the grant-making function continues uninterrupted
v To distribute funds to the target of R150 million
v To ensure that a sound institutional model is designed and implemented for the long-term success of the NDA
SOURCES OF FUNDING OF THE NDA
v Funds appropriated by Parliament
v Donations and contributions
v Interest on investments
Income derived from any other source

THE FOCUS OF OPERATIONS FOR THE FIRST YEAR
v To honour all existing contracts with project partners and ensuring that the grant-making function continues uninterrupted
v To distribute funds to the target of R150 million ensure that a sound institutional model is designed and implemented for the long-term success of the NDA

NDA FUNDING CRITERIA
The NDA policy targets the following groups and areas in its funding priorities:
v Women and children, as well as projects which focus on the development of youth and the disabled;
v Rural areas where community access to infrastructure, resources and expertise is inadequate and has been neglected in the past;
v Small funding requests by community based organisations (less than R150 000) are targeted in funding decisions. Small funding requests by larger organisations also receive high priority.

Although the NDA funds organisations from all provinces, it will prioritise the poorest provinces which, based on poverty data, include:
v The Eastern Cape
v Free State
v Northern Province
v KwaZulu-Natal
v North West

Funding Criteria of the NDA include:
v Community participation
v Development impact of activities
v Implementation capacity
v Institutional and financial sustainability

NDA’S FUNDING SECTORS ARE:
u EDUCATION AND TRAINING
v Adult education and training
v Career, enterprise and vocational education
v Early childhood development
v Gender awareness
v Human rights education
v Information and networking
v School development

u HEALTH
v Communicable diseases
v Disabilities
v Environmental and occupational health
v First aid and home care
v Health promotion and communication
v HIV/AIDS/STD’s
v Hygiene education
v Maternal and child health and nutrition
v Mental health
Substance abuse

u ECONOMIC DEVELOPMENT
v Agricultural development
v Business skills training, advice and counselling
v Lobbying and advocacy
v Marketing and networking
v Organising of entrepreneurs
v Technical skills training

u RURAL DEVELOPMENT
v Agricultural development
v Capacity building around large scale infrastructure
v Land reform
v Rural local government

THE NDA DOES NOT FUND
v Workshops and conferences that are not part of a broader programme
v Research or activities for individual gain or profit
v Once off activities which are not part of a broader programme
v Infrastructure or major capital expenditures
v Disaster relief
v Formal educational institutions
v Line items that are the responsibility of the government
v International conference attendance
v Local, provincial or national government, parastatals or funding organisations
v Capitalisation for SMME’s (loan or grant capital)
v Organisations with a history of misuse of funds
v Bursaries
v Political activities or organisations
v Organisations that promote party political division, sexism, racism or regionalism
v Museums or conservation activities
v Projects outside South Africa
v Denominational activities
v Activities which cause environmental degradation

PROGRESS SINCE ESTABLISHMENT OF TNDT
1996/1997
Applications received : 1737
Amount disbursed : R50,1 million
No of recipient organisations : 330
Applications rejected : 1010
No of unassessed applications carried over to next year: 397

1998
Carry over from 1996/97 : 397
Applications received : 1095
Amount disbursed : R55,8 million
No of recipient organisations : 491
Applications rejected : 22
No of unassessed applications carried over to next year: 979

1999
Carry over from 1998 : 979
Applications received : 5326
Amount disbursed : R25,2 million
No of recipient organisations : 244
Applications rejected : 1281
No of unassessed applications carried over to next year: 4780

2000 (to date)
Carry over from 1998 : 4780
Applications received : 731
Amount disbursed : R30,8 million
No of recipient organisations : 252

PROVINCIAL & SECTORAL SPREAD 1996/97
[PMG Editor’s note: pie charts not included]

PROVINCIAL & SECTORAL SPREAD 1998
[PMG Editor’s note: pie chart not included]

PROVINCIAL & SECTORAL SPREAD 1999
[PMG Editor’s note: pie chart not included]

PROVINCIAL & SECTORAL SPREAD 2000

[PMG Editor’s note: pie chart not included]

GRANT DISBURSEMENT PROCESS
PRE-ASSESSMENT PHASE
[PMG Editor’s note: pie chart not included]

Internal assessment against set criteria including:

v Geographical location
v Indications of community participation
v Project impact
v Financial sustainability
v Skills transfer

ASSESSMENT PHASE
v This phase entails:
u a physical visit to the applicant’s site, and
u interviews with the stakeholders

v Reports are then submitted to the:
u Sector team members for input
u Management
u Board of the NDA for final decisions

v Legal agreements entered into
v First tranche of funding (60%) paid out


MONITORING PHASE
v Evaluation phase after six months involves
consultation and formal reporting

v Second tranche (40%) of funding

EVALUATION PHASE
Final report, including audited financial statements to NDA

Internally, the NDA has a comprehensive:
v Information Management System
v Project Tracking Systems (PTS)
v ACCPAC general ledger system
v The Auditor-General is the Auditor of the NDA