The Presidency: Ministry of Performance Monitoring and Evaluation 1

Transformation within the agricultural sector: 20 years of democracy

Tsakani Ngomane, Ph.D @Annual Seminar held in Kempton Park,

Premier Hotel, 18 September 2014

A presentation by

The Presidency: Ministry of Performance Monitoring and Evaluation

Our Democracy

Purpose

Introduction - Why Yes ?

Passion of the organising

committee

An opportunity to offer insights

pertaining transformation

within the agricultural sector

since democracy, and

To make specific reference to

skills development programmes

targeted at the marginalised

groups in society, and

cooperatives

Outcome

Impetus to the country’s

change Agenda through

agricultural advancement,

especially Chapter 6 of the

National Development Plan

and Outcomes 7 on

Comprehensive Rural

Development

The Presidency: Ministry of Performance Monitoring and Evaluation

Outline Policy overview

Population profiles and unemployment

The plight of the Black African Graduate

What are the expectations for the Rural Agricultural sector and

on skills development – NDP perspective

What can you do to speed up change in AgriSETA- opportunities

in the green economy and blue economy; and SMMEs (including

cooperatives)

What is not well – examples of misalignment in AgriSETA

( Sector Skills Plans 2011 - 2016 and Annual Reports 2012

/2013)

Policy overview • Agriculture is considered as the backbone and driver of the rural

economy

• Production potential of the sector a concern, given the extent of land degradation in most rural and communal areas and the costs of rehabilitation

• Economic viability of the smallholder agricultural sector and opportunities for its development from available land resources. Issues of access to & ownership of land

• Natural and other threats such as climate change, availability of infrastructure, comprehensive producer support, and encroachment on agricultural lands

• The National Development Plan (NDP) 2030 envision an integrated and inclusive rural economy and envisages a phased implementation trajectory over successive Medium Term Strategic Framework periods, starting with MTSF 2014 - 2019

• The New Growth Path classifies the green economy as one of the ten jobs drivers in the context of implementing the Industrial Policy Action Plan

• It further identifies untapped potential of the oceans /blue economy, which could give effect to the objectives of the NDP in respect of GDP growth and jobs

Policy overview …

Policy overview continue DAFF leads the Agrarian Transformation pillar of the CRDP, a programme of the

Department of Rural Development and Land Reform

DAFF is supposed to focus on post-settlement support for land reform

beneficiaries who are involved in agricultural activities; and the development of

sector-specific rural enterprises. The Agriculture Sector Plan (2001), is the key

driving policy instrument for the agricultural sector

In addition to rural development, the agricultural sector is supposed to contribute

outcomes-based national priorities; food security, job creation and sustainable

use of natural resources

Further, the NDP expects agriculture to create approx. 1 million jobs by 2030

through expansion of irrigated agriculture; increasing production in underutilised

arable lands in communal areas and land reform projects; and supporting

commercial agricultural industries and regions with the highest growth and

employment potential.

Policy overview

Policy Context contin…

South Africa is one of the most carbon-intensive economies globally, however Government is committed to unleashing the potential of the green economy – South Africans following a development path that leaves subsequent generations with a natural environment endowment of equal value to that of present day

We see a paradigm shift in the biodiversity sub-sector from a preservationist approach to sustainable use for the benefit of present and future generations

We see the influence of this progressive shift in Ecotourism, its impact on the economy and its significant multiplier effect. Replication of successful ecotourism models with participation of local communities could be used as an economic engine to drive rural development

27 Distressed rural districts constitute priority districts in Government interventions. Require development of sustainable rural enterprises and industries in areas with economic potential

However, the full realisation of the socio-economic benefit of our communities is constrained by weak institutions and low literacy

and skills levels, and these weaknesses continue to undermine socio-economic development.

…Policy overview

Population profiles within skills levels andunemployment

Figure 1 – Employment composition of skills groups by population group

Unemployment by population group (based on the expanded definition)

2,6 million in unemployed (Based on the expanded definition of unemployment)

The unemployment rate stable at 35%.

Source: StatsSA, 2014: Statistics South Africa. The South Africa I know, the home I understand

The plight of the Black African Graduate

The unemployment rate for black Africans with tertiary education is a major concern. It more than doubled, from 8% to 19% (StatsSA, 2014)

Not many would have predicted such an outcome for the post-apartheid period when access to the labour market, at least for those with skills, should have been easier after so many decades of racial exclusion

The trend raises serious questions about the quality and/or appropriateness of tertiary education regarding skills development.

SECRET

What are the expectations

for Rural Agric. Sector & on Skills

Dev?

An integrated and Inclusive Rural Economy – key points

Greater social, economic and political opportunities to overcome poverty

Introduce a land reform and job creation strategy that ensures rural communities have jobs

Ensure quality access to basic services, health care, education and food security

Develop rural town based on differential opportunities and address intergovernmental relations to improve governance

What needs to be done – a differentiated rural development strategy that focuses on:

Agriculture development based on successful land reform, employment creation and environmental safeguards

Quality basic services, particularly education, health and public transport

In areas with greater economic potential, industries such as agro-processing, tourism, fisheries and small enterprise development should be developed with market support

Skills development

Improve relationship between skills

training institutions and employers

Ensure effective regulation of training

providers

Address under-spending of skills

funds

Address governance issues

Clarify the mission of SETAs

Develop National Skills Planning

System

2015

2020

2025

2021-2025 2026-2030

SETAs

DHET

DHET & SETA boards

DHET

DHET

2016-20202012-2015

2030

Quality Assurance Councils

Double the current skills output of SETAs SETAs

2012

Actions

The Presidency: Ministry of Performance Monitoring and Evaluation

Support universities to

establish training

centres for college

lecturers

Build new colleges; use

distance education;

employ more college

lecturers

Introduce entry requirements &

develop alternative

institutions for learners who do not qualify

Facilitate exchange of

staff between colleges and

industry

Change the rules to allow

colleges to access some of the SETA

funding

Appoint a qualified CFO

in each college

Improving outcomes of the college sector

Further education and training

Research and innovation systems

DST, DHEAT, Universities & Science councils

Create framework for national system of innovationIncrease support for postgraduate studies

Attract and support young researchers

Develop world class centres of research and innovation

Relax immigration requirements to attract scientists

Support collaboration between sectors

Coordination

Research capacity development

Attract top research talent

Inter-sectoral collaboration

Excellent research & innovation

output

Transform researcher

demographics

Transforming Society

Healing the past

Improve services for all citizens

Create a South African Identity

Eliminate discrimination

Active citizenry, leadership, social

compact

Unite the

nation

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What can you do to speed up change in AgriSETA?

• The Independent Development Corporation (2011) and the Institute for Sustainable Futures predicts > 460 000 jobs could be created by our green economy in areas such as the natural resource management, waste recycling, green energy generation; energy and resource efficiency.

• The green economy is a extremely diverse, relatively new and fast evolving in many of its segments

• The 2010 Summit on the Green Economy identified nine pillars for the implementation of the green economy interventions including resource conservation and management, major events and tourism, research, skills, financing and investments, clean energy and energy efficiency; and agriculture, food production and forestry

KEY amongst the constraints limiting South Africa’s participation at economy-wide scale is lack of

appropriate skills; and poor coordination of efforts amongst stakeholders

Opportunities in the green economy

Opportunities – localisation and SMMEs

• Approx. 2.3 % of the economically active population is established business owners in South Africa –5.6 m SMMEs. SMMEs target low skilled and unskilled labour.

• Investment in research and development that boosts technological innovation, competitiveness and strategy for value-adding and localization

• Local manufacturing require technology innovation and extensive research and development to address issues of local content and to identify skills gaps

• Wild fish stocks in South Africa are declining. The global demand for fish products is expected to grow by 48%; aquaculture is expected to meet at least half of this demand contributing to food and nutritional security, create SMMEs to stimulate RD and address transformation issues. For this to happen, we need to provide the skills base

• Leverage on purpose built incentives to enhance private sector participation: catalytic funding (jobs fund, green fund, DTI SMME support, etc)

Building the skills base (re-skill, up-skill, new skills): actively design technical and vocational education and training (TVET) responding to market needs, and re-train Extension Services and Community Development Workers

SECRET

What is not well –

examples of

misalignment

Critical elements w.r.t. Sector Skills Plan 2011 – 2016

Agriculture as a sector of possibilities; most labour intensive that, with right

interventions, could reverse unemployment trends – benefitting the youth

Diversification and value-adding and agribusiness (incl. cooperative) - could change

the structure of the agricultural economy – benefitting the youth

Agricultural economy driven with a rural bias, and within the context of Land Reform, could

yield positive impacts on socio-economic livelihoods & FNS, esp. HDIs

Implementation not fully aligned based on Annual Reports 2012- 2013

No allocations for Extension development – target 50n

2012/13 – 0 doneLow exp. / reserves on

AgriBEE CharterArtisan 18.2

Sector Intelligence and Career Information ranked

low on the agendaRPL: under-targetting

resulting in inadequate structures and learning

programmes – compromise access to decent work

Agricultural Colleges

Surplus on ABETRural Structures

Skills programme for unemployed v. low

expenditure over timeRPL None – for farm

workers

Cooperative Surplus on Apprenticeships

Artisan 18.2 (unemployed)Support to under resourced

rural learners weak

Spending more on skills delivery administration

Capacity building programs ranked average on the

agendaSkills programme for

unemployed v. low expenditure over time

Rural Youth

Disconnect between the Sector Skills Plan and its Implementation

The Presidency: Ministry of Performance Monitoring and Evaluation

Stakeholders – Active

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To what extent are those trained active on the ground? Sustainability dimension

What is the level of functionality of structures supported by AgriSETA? Sustainability

With few commodity groups (GrainSA, Table Grapes, Poultry, etc) in formal partnership with AgriSETA, how can these be broadened and increased? Scaling up

With DAFF as a major stakeholder and least resourced partner as compared to DRDLR and DPW, what are the causes and how can these be remedied? Collaboration within government

Agriculture as a job driver, is there a need to review allocations ( using other SETA as a benchmark); stringent monitoring of implementation of provisions NSDS 111 - bursaries, skills programs, levies vs subsidiaries. M & E dimension

What is AgriSETA intel on skills gaps required by industry? Relevance and Planning dimension

How can we accelerate transformation in the context of resource limitation for TVET and UOCs? Mentorship dimension

Key Questions

1

2

3

4

5

6

7

In terms of reducing vulnerability to food

security, to what extent is AgriSETA

contributing towards achievement on the

suite of indicators on FSN, esp. for the HDI?

Key Questions conti

The multiple dimensions of food security: indicators

Source: The State of Food Insecurity in the World 2013: An Overview. Statistics Division Food and Agriculture Organization of the United Nations

With physical presence in 4 Provinces, is AgriSETA’s food print a visible to all involved in the sector?

Skilling new farmers, especially beneficiaries of Land Reform

Establishing & developing capacity of rural institutions, especially cooperatives

Creating a critical mass of employed graduates

Reviewing the College curriculum to reduce the skills gap between industry and learners

SECRET

Thank you

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