Madam Speaker, Ladies and Gentlemen
In his address the Honourable Minister Nkwinti briefly touched on our Agri-Parks programme. This is a positive action, and a logical development in rural development - the latest manifestation of our longstanding goal of agrarian transformation, and as such it will both aid and benefit from existing initiatives aimed at the same outcome.
The individual Agri-Parks will each evolve around an Agri-hub that forms the centre of the model and from which the activities of a range of services will be coordinated. For example, animal handling facilities and warehousing, silos, processing plants and tanneries, and including social and retail services. The Farmer production support units will be the immediate link with farmers and will be complemented and strengthened, in various ways, by existing departmental programmes like the Animal and Veld Management Programme; the River Valley Catalytic Programme, and further aided by the Recapitalisation and Development Programme, evolving restitution efforts, initiatives to revitalise rural towns, not forgetting the earnest and dependable efforts of the members of the National Rural Youth Service Corps – NARYSEC.
Agri-Parks will provide a network of contracts between producers, markets and processors, together with the physical infrastructure required for the transforming of industries. They will focus primarily on the processing of ‘agricultural products’, and successful outcomes are hugely dependent on the availability of viable agricultural land, in the sense of it being capable of supporting a range of productive agri-horticultural enterprises side by side, feeding off each other and helping each other grow. Some progress has been made in the last financial year where work has happened in all districts regarding business planning; designs and the establishment of institutional arrangements to ensure improved governance and coordination of the Agri – Parks programme.
In some Districts, construction has already commenced on identified Agri-hub sites, for example bulk electrical works in Witzenberg in the Western Cape to unblock the hub development; construction of an abattoir in Butterworth in the Eastern Cape amongst others. In the new financial year 47 infrastructure projects will be completed in Agri-hub and farmer production support units across the country. In addition 115 agricultural enterprises will be supported to ensure that there is sustainable production to support agro-processing at the hubs.
As highlighted in the NDP, there is a need to expand irrigated agriculture to increase production and transform the rural economy. It is therefore essential that agriculture is supported - by expanding irrigated agriculture; by the conversion of under-utilised land; by the elevation of land reform projects into commercial production ventures, by the introduction of product value-chains, by opening up more employment opportunities and by getting more support from better resourced players. In support of the Macadamia industry, the department has completed the construction of 11km bulkline in the Ncerha Macadamia Project in the Eastern Cape. The rising main and pumpstation are planned to be completed by the end of this financial year.
In KwaZulu-Natal, we have had several successful, transformative and catalytic projects that will have a significant positive impact on the production for Agri Parks. Last year we completed the upgrade of the Nsuze irrigation scheme, which extended to 300 hectares, and to 400 farming beneficiaries at a cost of R60m.
In this financial year, two major projects in KZN will improve irrigation schemes: The Mthandeni Irrigation scheme, at a total value of R40m, will benefit 150 farmers over a total of 310 hectares; and the Mooi River irrigation scheme – which is as extensive as 600 hectares - aids more than 500 farmers who will be benefitting from the scheme to the extent of a total cost of R37m.
In Mpumalanga, we will be upgrading the Dingledale and New Forest canals at a value of R16m and this will benefit 1000 farmers. At the Bushbuckridge Agri-park, we will be constructing a Farmer production support unit to the value of R12.3m for 40 farmers involved in vegetable production.
Revitalisation of rural towns and industrial parks in townships are other important government objectives. One good example of this the completion of the construction of a runway in the small town of Somerset East in the Eastern Cape.
The project will contribute significantly to:
- Employment of Youth
- Job Creation
- Regional Economic Development
- Strengthening Heritage
- Developing Tourism
- Creation of Industries
Linked to this project, the department is in partnership with the EC Provincial Department of Public Works and Roads in upgrading the first 20km of a 113km road project. The project is expected at its height to create 200 jobs and will also unblock the agricultural and tourism potential of the area.The Department has further taken the challenge of agro-logistics to the next level by signing an Implementation Protocol with the Provincial Department of Roads and Public Works to upgrade rural roads that lead to strategic projects and give access to state farms in the province.
Similarly, in Limpopo we have completed the construction of a multi-purpose centre which provides community access to a library, an amphitheatre and administrative facilities for the community leadership. The next phase of the project will include recreational facilities and a swimming pool.
The NDP states that in rural areas the poor are marginalised; there is widespread inequality, limited access to land, water, education and skills, and poor infrastructure. Chapter 6 of the NDP, which deals with “an integral and inclusive rural economy”, highlights the importance of rural economies and the revitalisation of rural areas. So the objective of the NDP, from a rural development perspective, is to combat poverty by providing rural areas with opportunities to fully participate in the economy. and ensure access to improved technology.
In the Eastern Cape, we are proud of the community of Radway Green who have worked with the department in constructing their own eco village. The entire village has been built using renewable technology and hydroform building technology. On Saturday last week the project received a commendation from PPC for community development. The department intends to drive development of similar projects across the country in ensuring improved living conditions for people living on farms and rural town revitalization. It’s very inspiring.
Madam Speaker, improved access to ICT continues to play an important role in transforming the lives of rural children and communities. In this financial year we will continue to roll out the i-school programme to 48 additional schools and in partnership with DST, we will establish 8 more digital doorways. This year, in partnership with our i-school partner, we will be running a Rural School Music competition using the technology that is being made available to our children.
As far as deliverables are concerned, a process of prioritisation of all identified initiatives will begin to determine short to medium term initiatives, while the planning process will begin for long terms initiatives. The department will begin the process of having all plans approved by respective district municipalities and, at the same time begin to develop the remaining plans.
Let me give you a few figures at this point: During the past year:
- 48 projects were implemented in rural communities to improve production, in support of improved food security, and affecting 12, 759 beneficiaries;
- 116 socio economic infrastructure projects were coordinated and facilitated, to the benefit of 9, 736 households;
- 31 infrastructure projects were facilitated within the 27 priority districts to support Agri-Parks development;
- 451 Animal and Veld Management Programme projects were implemented, benefiting 2, 206 smallholder farmers;
- 24 projects were implemented in support of the River Valley Catalytic Programme, benefiting 1, 460 households;
- 210 rural enterprises were supported in rural development initiatives; again with special focus on 27 District Municipalities. There were 2, 943 beneficiaries;
- 9 664 skills development opportunities were provided to support rural development initiatives;
- 3, 066 skills development opportunities were provided to NARYSEC youth; and
- 198 Agricultural graduates were deployed in rural projects.
Madam Speaker, we have in the past reported on the growth of the rural arts and crafts cooperatives especially in the Eastern Cape, KwaZulu-Natal, Limpopo and Mpumalanga. In the past year we have continued with the capacity building initiatives focussing on skills needed for sustainable business management and co-operative governance. The Department has been working with a training partner who had originally introduced a business model for rural arts and crafts and significant progress has been made in skills and market access.
In addition, the Arts and Craft Primary Co-operatives in the four provinces have shown readiness to form Secondary Co-operatives at the district level. This will enable them to buy in bulk and so strengthen their bargaining powers. They will still need further support in accessing markets and the training of the board members of the secondary co-operative in market information, auditing, product diversification and financial management, especially in pricing and selling.
In August 2015, the Co-operative Banks Development Agency, the CBDA, an Agency of National Treasury mandated with the promotion and regulation of Co-operative Financial Institutions in the country, entered into a Memorandum of Understanding with the Department of Rural Development and Land Reform in terms of which the CBDA is to provide capacity building support to the Arts and Craft Co-operatives’ prospective CFI. To date, the cooperatives have raised the required deposit of R100 000 and the CFI is to be registered by June this year. The chosen name is Mzansi Rural Arts and Craft Club.
To continue to strengthen the skills component of the NARYSEC programme; the Thaba Nchu NARYSEC College Upgrade has been allocated R 40 million, for planning, designs and upgrades which will benefit NARYSEC students and become a base to conduct community training across the country.
The Department has also partnered with the ARC in establishing a training centre at the ARC campus in Pretoria, and this facility will in this year be utilised to continue with capacity building initiatives for smallholder farmers linked to the agri-para professionals to be deployed to the farmer production support units, as well as for youth development.
As Nelson Mandela reminds us, “Everyone can rise above their circumstances and achieve success if they are dedicated to and passionate about what they do”.
In the 2016/17 Financial Year, the department will continue to focus on the roll out of the Agri-Parks in all districts focusing on core infrastructure at the agri hub and the farmer production support units.
In addition we will facilitate support to 115 new Agricultural Enterprises and 50 new non-agricultural enterprises will be supported, and 94 existing agricultural enterprises and 25 existing non-agricultural enterprises. We are also plan to facilitate 10 000 skills development opportunities and 6000 job opportunities in this Financial year. In this Financial Year an additional 500 rural women in various districts in Eastern Cape, Mpumalanga, Limpopo, KZN, North West and Western Cape have been identified who will receive support and training in arts and craft, textile product design, producing and marketing.
Madam Speaker, honourable members, our rural development initiatives and activities are very diverse, yet very focused – focused on agrarian transformation that will lift our people up to the point where they can be productive in their own interests – thus energising both their own potential and that of the nation. We are succeeding.
St Francis of Asissi is reputed to have said: “Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible”.
I thank you very much
