Dr Tsakani Ngomane Outcome Facilitator: - PowerPoint Presentation

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Dr Tsakani Ngomane

Outcome Facilitator: Rural Development04 May 2017

BRIEFING BY DPME ON THE STRATEGIC PLAN AND 2017/18 APP OF DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES

A PRESENTATION TO THE

PORTFOLIO COMMITTEE ON DAFF

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Purpose

To brief the Committee on DPME’s assessment of DAFF’s Strategic Plan and the Annual Performance Plan 2017/18 as tabled in March 2017.Specific areas of focus are as follows:-Alignment of SP and APP with objectives of the NDP and priority outcomes in MTSF 2014-19Technical Compliance with National Treasury Regulation in the compilation of the SP and APP

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The MTSF is one of our key means

of

tracking progress towards achievement

of the NDP 2030

, annually. As a result, the APPs and SPs of government must be aligned to the MTSF to enable implementation of the NDP 2030.

Vision

2030

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National Development Plan (NDP)

Through the development of the Medium-term Strategic Framework (MTSF), critical actions and key outputs aimed at putting the country on a positive trajectory towards achievement of the NDP were identified for delivery by departments over the period 2014-19 The MTSF has key performance targets and indicators from the NDP to be achieved by Government over the 5yr periodTherefore, DAFF’s strategic plan should be grounded in the MTSF 2014-2019

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Chapter 6 of NDP highlights Agriculture Potential

Agriculture’s Potential = 1 Mil New Jobs by 2030 through: Expanding irrigated agriculture—1,5 Mil ha expanded by at least another 500 000 ha to 2 Mil ha;Cultivating under-utilised land in communal areas and land reform projects for commercial production; Supporting agricultural industries and regions with the highest growth and employment potential; Supporting upstream and downstream job creation; Finding creative opportunities for collaboration between commercial and communal farmers and complementary industries; Developing strategies that give new entrants access to value chains.

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Outcome 7

:

Comprehensive Rural Development and Food Security (MTSF 2014-19)

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6.

Growth

of sustainable rural enterprises

& industries--resulting in rural job creation

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2

3

4

5

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. Sustainable

land reform for agrarian transformation

Led by Ministers DRDLR & DAFF

Supported by 22 departments &

all 9 Provinces

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. Improved

food security

(DAFF)

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. Smallholder

producers’ development

& support for

agrarian transformation (

DAFF)

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. Increased access to quality infrastructure and functional services in rural areas

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1

. Improved

land administration and spatial planning for integrated development in rural areas

Outcome 7 implements Chapter 6 of the NDP through 6 sub-outcomes

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Linking NDP to DAFF’s Strategic Planning (1)

The DAFF’s strategic planning process was informed by the MTSF 2014-2019 for Outcomes 4, 7, and 10 Outcome 4: Decent employment through inclusive economic growthOutcome 7: Comprehensive rural development and food securityOutcome 10: Protect and enhance environmental assets and natural resources

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Strategic Goals and Objectives

The Strategic Plan for DAFF has 4 strategic goals, 11 strategic objectives, spanning 6 programmes as follows:Programme 1: AdministrationProgramme 2: Agric. Production, Health & Food SafetyProgramme 3: Food Security and Agrarian reformProgramme 4: Trade Promotion and Market AccessProgramme 5: Forestry & Natural Resource ManagementProgramme 6: Fisheries

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Programme 1: Administration (1)

The strategic objective 1.3 “Strengthen institutional mechanisms for integrated policy, planning, monitoring and evaluation in the sector” is included in the 2015-2020 Strategic Plan and not the APP. The department must ensure that the two plans are aligned. The department is advised to ensure that strategic objective five year targets have annual targets. Annual targets indicates progressive realisation of the five year target. For example, the strategic objective five year target “Achieve of 80% on MPAT assessment by 2020” does not have planned targets in the medium term, however has an annual target provided in the 2020/21 financial year.

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Programme 1: Administration (2)

Some misalignments exist between the annual targets and quarterly targets. For example, for the programme performance indicator “Number of Bills submitted to Minister for tabling in Cabinet” the annual target provided is “3” whilst the quarterly target is “Reviewing and processing of legislation”. It is recommended that SMART annual targets are broken down into SMART quarterly targets which adhere to the principle of alignment of targets.

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Programme 2: Agricultural Production, Health and Food Safety (1)

Linked to Outcome 7; Sub-outcome 1 and 4Enabling environment for increased for food security and sector transformationStrategic objectives: SO 2.1: Ensure increased production and productivity in prioritized areas as well as value chainsSO 2.2: Effective management of biosecurity and related sector risksSO 4.1: Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resources.

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Programme 2: Agricultural Production, Health and Food Safety (2)

Some strategic objective indicators have been duplicated as programme performance indicators. Eg., the strategic objective indicator “Reduce bio-security and related sector risks by 2020” has a 5-year target of “4 regulatory compliance and monitoring interventions implemented”, whilst the programme performance indicator “Number of regulatory compliance and monitoring interventions implemented” has the same annual targets of “4 regulatory interventions implemented”. This information should be revised to ensure alignment between strategic objectives and programme performance indicators.

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Programme 3: Food Security and Agrarian Reform (1)

Linked to Outcome 7; Sub-outcome 3 and 4 Improved Food Security Smallholder producers’ development and support for agrarian transformation Strategic Objectives:SO 3.1: Lead and coordinate Government food security initiativesSO 3.2: Enhance capacity for efficient delivery in the sectorSO 3.3: Strengthen comprehensive support systems and programmes

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Programme 3: Food Security and Agrarian Reform (2)

Some strategic objective five year targets are not measurable.For example, the strategic objective five year target “Coordinate implementation of the National policy on Food and Nutrition security” is provided for the strategic objective indicator “National policy on Food and Nutrition security implemented by 2020”. The five year target is not SMART and is not clear what coordination of implementation entails. Further, the same strategic objective five year target is provided as the annual target for each year of the MTEF period. Some strategic objective indicators are duplicated as programme performance indicators. For example, the strategic objective indicator “Increase number of smallholder producers receiving support by 80 000 over 5 years” with targets of “16000 smallholder producers receiving support” while the programme performance indicator “Number of smallholder producers supported” has the same target of “16 000”.

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Programme 3: Food Security and Agrarian Reform (3)

Some annual and quarterly targets are misaligned. For example, for the programme performance indicator “Number of hectares of under-utilised land in communal areas and land reform projects cultivated for production” the annual target is “120 000 ha”, while the quarterly targets refer to “Fetsa Tlala Consolidated Plan”, “State of readiness of provinces report noted by EXCO” and“Report on number of HA (120 000 ha) cultivated noted by EXCO”.

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Programme 4: Trade promotion & market access(1)

Linked to Outcomes 7, sub-outcome 4; and Outcomes 4, SO 2 Smallholder producer’s development and support for agrarian transformation The productive sectors account for a growing share of production and employment through the following actions;Agricultural Policy Action Plan (APAP) developed, implemented and reviewed regularly to impact on growth, employment, rural incomes, investment, output, exports and African regional developmentImplementation of the Comprehensive Africa Agriculture Development Programme (CAADP) Agriculture, Forestry and Fisheries Market and Trade Development StrategyStrategic Objectives: SO 2.3: Ensure support for market access and processing of Agriculture, Forestry and Fisheries products.

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Programme 4: Trade promotion & market access (2)

Some annual targets remain constant in each year of the medium term period. For example, for the programme performance indicator “Agri-BEE fund implemented” has annual targets of “Report on the implementation of Agri-BEE fund” in each year of the medium term period. DAFF should provide targets which indicate the progressive realisation of the implementation of the Agri-BEE fund. Reports have often been used as targets. The use of a report does not provide a realistic indication of the core work of the programme (unless the report is a mandated output as a legislative or policy requirement). DAFF should identify actual outputs which inform reports or recommendations in the report which is a reflection of the core performance of the programme. This recommendation is applicable to all the other programmes of the department.

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Programme 5: Forestry & Natural Resource Management (1)

Linked to Outcome 10, SOs 1 & 2; and Outcome 7, sub-outcome 4 Sub-outcome 1: Ecosystems are sustained and natural resources are used efficientlyCombat land degradationSub-outcome 2: An effective climate change mitigation and adaptation response Development and Implementation of sector adaptation strategies/plansSub-Outcome 4: Smallholder producer’s development and support for agrarian transformationExpand land under irrigationRevitalization of irrigation schemes

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Strategic objectives:SO 4.1: Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resourcesSO 4.2: Ensure adaptation to climate change through implementation of effective prescribed frameworks

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Programme 5: Forestry

and Natural Resource

Management (2)

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Programme 5: Forestry & Natural Resource Management (3)

A strategic objective five year target has not been provided for the strategic objective indicator “Implement climate change adaptation & mitigation plans by 2020”. Further, this strategic objective indicator medium term targets remain constant over the MSTF period. DAFF should identify actual outputs which will be delivered and state the output as a SMART target. The department should also revise targets for the indicator “Number of projects to support revitalisation of irrigation schemes”, which is 1 in each year of MSTF period.

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Programme 6: Fisheries (1)

Linked to Outcome 10, SO 1 and Outcome 7, SOs 3 and 4 Sub-outcome 1: Ecosystems are sustained and natural resources are used efficientlyScientific update of resource status and recommendations for the following season’s sustainable catch for abalone, West Coast Rock Lobster and deep-water hakeSub-outcome 3: Improved food securityImplement the comprehensive food security and nutrition strategySub-outcome 4: Smallholder producers’ development and support for agrarian transformationProviding support to smallholder producers in order to ensure production efficiencies

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Programme 6: Fisheries (2)

Strategic objectivesSO 2.1: Ensure increased production and productivity in prioritized areas as well as value chains.SO 3.1: Lead and coordinate Government food security initiatives.SO 4.1: Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resources.NB: There is no strategic objective five year target provided for the strategic objective indicator “To promote transformation and production of fishery by 2020”.

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Programme 6: Fisheries (3)

The department should ensure that strategic objective five year targets and medium term targets are SMART. Some of the targets that must be revised include for example, the strategic objective five year target “Recovery of prioritized fish stocks” for the strategic objective indicator “To promote, conserve, protect and recovery of depleted natural resources through the implementation of Marine Living Resources Act by 2020”. It is not clear whether the target indicates the successful implementation of the Marine Living Resources Act. Further, the same five year target is provided as annual targets for each year of the medium term period.

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PART A: Strategic Overview Alignment to the 2014-2019 Medium Term Strategic Framework (MTSF)

The department must ensure consistency of information in the various planning and budgeting documents, as well as various sections of the same document. E.g.,the expenditure estimates section reflects that the food security agenda aims to increase the irrigated agricultural land with an additional 750 000ha, while the performance environment in the situational analysis indicates that water available for expansion of land under irrigation can only cover 80 000 ha, according to the National Water Resources Strategy. Whereas Agri-parks and Agricultural Policy Action Plan (APAP) are mentioned in the situation analysis, the likely impact of the 2015/16 drought on productivity seems to have not been fully taken into consideration in the situational analysis.

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PART A: Strategic Overview Alignment to the Department’s Budget (1)

Although the Agricultural Policy Action Plan (APAP) should concentrate on the primary side of the value chain, there should be a stronger linkage between APAP and Industrial Policy Action Plan (IPAP) to ensure synergies between the commodities prioritised in APAP and IPAP. It is also important to minimise duplications between the activities of the DTI and DAFF to ensure the efficiency of public spending. This must include a strategy to better coordinate DAFFs contribution to value addition / agro-processing with DTI with a clear role for each respective department. A role for a strategy of localisation in the form of local food networks can also be explored.A detailed prioritisation process which identifies which of the various action programmes and interventions will be implemented first given limited funds

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PART A: Strategic Overview Alignment to the Department’s Budget (2)

The 2016/17 APP correctly identifies that “effective participation of the previously excl. black majority in agriculture and food production will only occur meaningfully, when they have access to land and the means to work it”.Access to land is within the responsibility of the Department of Rural Development and Land Reform (DRDLR). DAFF should ensure that the two departments’ plans are aligned toward achievement on this objective. It is noted that there are a number of programmes which are either duplicated or overlapping between the TWO departments (DRDLR & DAFF), especially related to land reform – Recap. programme. The programme and budget allocations must clearly show complementarity between the 2 departments, and the APP provides a good platform for doing so.

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PART A: Strategic Overview Alignment to the Department’s Budget (3)

DPME Evaluations conducted on the Comprehensive Agricultural Support Programme (CASP) and MAFISA identified serious gaps in terms of efficiency and effectiveness in the use of resources. Putting much emphasis on CASP and Agri-Parks would need a lot of monitoring and project management skills for DAFF to produce the required outcome and limit resources leakages. The APP should reflect improvement plans in this regard.

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Alignment Discrepancies (1)

Key misalignments noted between the MTSF 2014-19 and the 2016/17 APP are as follows:-Sub-outcome 1 (Outcome 7) Despite commitment at SONA in February 2017 the amendments to the Preservation and Development of Agricultural Land Framework (PDALFA) has not yet been submitted to Cabinet and most important, the process thereof, is not reflected on the APP. Finalization on PDALFA must be expedited to enable protection of agricultural high value land from other uses, such as for golf estates, mining, and housing. These ‘other’ uses often compromise food security production initiatives, posing a threat to national food security.The process is reportedly behind schedule by three (3) quarters on government’s Programme of Action (PoA).

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Alignment Discrepancies (2)

Sub-outcome 3 and 4 (Outcome 7): The number of hectares underutilised in communal land cultivated as provided in the 2016/17 APP, is not aligned with MTSF target seeking to get into production 1 Mil Ha of under-utilised land in both communal areas and land reform projects.The expansion of land under irrigation has not been reflected in the 2016/17 APP.The target for the revitalisation of irrigations schemes is ‘181 project’ in the MTSF, while the 2016 /17 APP reflects only ‘1’ as the target. The annual target should at least be 36.DAFF and DRDLR had reached consensus to jointly implement these activities across Departmental mandates however, the agreement is yet to be implemented.

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Regulatory Framework and Timelines

The PFMA, Treasury Regulations and the Framework for Strategic Plans (SP) and Annual Performance Plans (APPs) provide the min. planning requirements that departments must adhere to when producing SP and APPs.DAFF submitted the 1st and 2nd draft APPs in August and November 2016 respectively, and tabled the SP March, 2017.DPME provided feedback to DAFF in October 2016 (1st draft) and January 2017 (2nd draft).DAFF adhered to the APP submission dates as stipulated in the Framework for SPs and APPsThe quality of the APP has improved from previous financial years however, there are areas that require further attention and improvements.

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Conclusion highlighting areas for further improvement

Commitments emanating from the Operation Phakisa: Agriculture, Land Reform and Rural Development Lab need to be included, especially those wherein DAFF is the lead department.There are targets that are still not specific and measurable, and therefore most likely to constrain performance monitoring. Five year strategic objective targets need to be crafted as SMART high level outputs. There are still some duplication of Programme performance indicators as annual targets over the Medium term.Overall, reasonable improvement by the DAFF since the on onset of the MTSF.

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I thank you

Go to http://www.dpme.gov.za for DPME documentsincluding narrative guide to outcomes approach, outcomes documents and delivery agreement guide

Tsakani Ngomane, PhD

Email:

tsakani@dpme.gov.za

Tel: 012 312 0112