Chairperson's report to the AgriSETA Annual General Meeting

03 October 2019, Umhlanga

Contents

Priorities for the Accounting Authority01Planning targets, validation and reporting 02Compliance03Risk Management mitigation 04Key delivery objectives 05Conclusion 06

AgriSETA is committed to at all times,

respect and uphold these expectations

and honouring the provisions outlined in the

SETA Governance Charter & Standards.

Our commitment is not only to improve SETA

governance and measure compliance, but

to lay the foundation for the delivery of

quality training programmes and growing

the skills base of each and every

economical sector.

01 Introduction

Agri Seta Board

ACCOUNTING AUTHORITY MEMBERSMr. Christo van der Rheede: ChairpersonREPRESENTING ORGANISED LABOURMr. Atwell NazoMr. Danny SchutteMr. Grafieldien BenjaminMr. Mayoyo Mngomezulu Ms. Linda GqokomaMs. Anna T. PholoanaREPRESENTING ORGANISED EMPLOYERSMr. Riaan A. GerritzenMr. Neil HammanDr. Gerhard NeethlingMr. Anton RabeMs. Pinki LuwacaREPRESENTING GOVERNMENT: DAFFMs. Lebo BotshelengREPRESENTING COMMUNITY ORGANISATIONDr. Mokgadi Ngoepe-Ntsoane

02 Priorities

We seek to address the following:

Continued skills shortages in the artisanal, technical and professional

fields - fundamental for economic growth and development.

Scarcity of skills to drive industrialisation and beneficiation strategy of

the country as identified in Industrial Policy Action Plan (IPAP), New

Growth Path (NGP) and National Development Plan (NDP).

Dominant urban bias of economic development activities resulting to

urban bias in skills development initiatives.

Weak linkages between HEI and workplaces.

Continued poor work readiness of many young people leaving formal

secondary/tertiary education, entering the labour market.

Slow progression towards intermediate and higher skills required for

identified growth sectors.

03 Planning, Targets, Validation and Reporting

Poor planning not only results in the late implementation of training

interventions, but it also undermines the quality of training to be

delivered.

In this respect the Board must ensure that performance reporting is a

standing agenda item in all meetings. Quarterly submissions must

however go hand in hand with a portfolio of evidence to ascertain the

validity of the reported information. Exercising full oversight over both

SETA management performance and governance requires much

more than just accepting information on face value, but also that the

accuracy of information and the impact of programmes are beyond

reproach!

04 Compliance

The Board also takes cognisance of the audit findings highlighted in

the Report of the Auditor-General to Parliament on the AgriSeta. We’re

indeed committed to prioritise, address and rectify any shortcomings,

weaknesses and non-compliance and to implement all the controls

necessary to ensure that financial management is beyond reproach.

05 Risk Management and Mitigation

The following steps were taken to rectify the aforementioned and

disconcerting findings.

The Finance function has been fully insourced and an experienced

Chief Financial Officer with a chartered accountancy qualification

was appointed.

A new Audit and Risk Committee, consisting of highly qualified

chartered accountants, auditors and legal experts, was also

appointed. A key priority for this committee is to exercise full oversight

over the annual internal and external audit controls and processes

and to inform the Board timeously about anything that might

compromise the integrity of the AgriSeta’s financial system and related

processes.

06 Delivery of Key Objectives

The AgriSeta is responsible for disbursing grants in support of the

following programme types:

Learnerships, Internships, Artisan development, Bursaries

Skills programmes,Work Integrated Learning for public Universities and

TVET colleges, Support to cooperatives, community-based

organisations, non-governmental organisations

Adult education and training (AET)

Agricultural Landscape

Subsistence farmers: Approximately 1,75 million

households

Small scale farmers: Approximately 200 000

Commercial farmers: Approximately 35 000

Agricultural Landscape

Turnover BracketTax Year

2013 2014 2015 2016

Zero 21 396 10 139 7 371 6 693

1 to 100 000 6 684 5 806 4 310 3 566

100 001 to 250 000 4 909 4 286 3 674 3 213

250 001 to 500 000 4 456 4 145 3 810 3 238

500 001 to 750 000 2 639 2 485 2 322 2 020

750 001 to 1 000 000 1 989 1 857 1 782 1 506

1 000 001 to 2 500 000 5 392 5 116 5 010 4 493

2 500 001 to 5 000 000 3 310 3 435 3 437 3 099 278285 000 001 to 7 500 000 1 610 1 626 1 690 1 583

7 500 001 to 10 000 000 975 991 1 096 986

10 000 001 to 14 000 000 867 955 1 026 1 001

14 000 000 to 20 000 000 761 852 901 866 4436> 20 000 000 1 780 2 041 2 287 2 325 2325Unknown 589 745 695 661

Total 57 357 44 479 39 411 35 250

Agricultural Landscape

Agricultural Landscape

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HECTARES ACQUIRED AND REDISTRIBUTED BENEFICIARIES/TARGET GROUPS

SETTLEMENT/TENURE

SECURITY

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EC 882 44 425 1 021 57 319 191 172 254 284 17 549 431 27 122 3 868 1 508 15 1 470 4 0 2 526 28

FS 893 42 580 0 32 344 126 189 211 750 0 417 813 8 492 2 298 2 205 0 990 0 0 1 005 1

GP 413 5 269 293 1 756 7 262 47 470 0 62 111 7 686 1052 6 003 13 959 0 0 465 2

KZN 925 140 184 60 916 1 637 187 772 179 923 9 552 580 450 84 826 21 936 42 870 5 138 51 868 1 28 14 459 133

LP 415 33 797 0 0 44 488 102 688 81 181 919 11 648 1 487 6 114 195 284 51 8 872 37

MP 628 112 573 0 5 389 92 900 250 781 10 595 472 238 42 315 5 349 18 177 5 501 14 342 288 0 2512 21

NC 384 61 914 0 726 436 120 656 635 417 0 1 544 423 9 817 1182 6 160 75 114 1 1 711 35

NW 542 24 735 800 17 946 164 861 284 794 137 498 399 84 259 22 826 37 012 0 4 170 3 35 3 545 385

WC 325 251 306 8 3 105 229 593 69 609 0 554 185 29 746 10 664 9 560 0 11 577 2 0 9 310 126

TOTALS 5 407 716 783 63 038 845 932 1 164 893 2 036 718 20 381 4 860 968 305 911 70 662 129 609 10 937 85 774 350 72 35 405 768

18

19

• In 2035, South African population is estimated to reach more than 66,9 million.

• This means more food supply will be required to sustain the growing population

• It is an internationally recognized fact that there is a correlation between the level of government assistance to farmers in the form of subsidies and farm sizes and food production

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

42000

44000

46000

48000

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Food production vs population

Population Food Production Linear (Food Production)

Input companies

Food companies

Farmers

Traders

Retailers

Consumers

• Seeds

• Fertilizer

• Crop protection

• Animal health and nutrition

• Crop insurance

• Food ingredients

• Field crops

• Horticulture

• Animal production

• Aquaculture

• Forestry

• Game

• Crops

• Meat

• Oils/meal

• Biofuels

• Meat

• Snacks

• Beverages

• Meat

• Bakery

• Dairy

• Hyper markets

• Super markets

• Small/spaza shops

• Rural

• Urban

Objective: To produce profitably while facing

• Drought

• Climate change

• Predation

• Theft

• Diseases

• Market conditions/Labour

• Land reform

• Farm attacks

• Ever changing consumer preferences & choice of products

Emp

loym

ent:

84

9 0

00

07 Conclusion

Our Service Level Agreement (SLA) with the DHET was

approved and signed. In this respect, the commitment

of the AgriSeta’s Board and management is not only to

focus on reaching targets, but to ensure that with the

right skills and alignment of such skills with sectoral

occupations in high demand, the agricultural sector

and country’s economy is moved to the next level of

inclusivity, sustainability and competitiveness, healthy

living, modernisation and food security

Thank you