Transformation within the agricultural
sector: 20 years of democracy
A presentation by
Tsakani Ngomane, Ph.D @
Annual Seminar held in Kempton Park,
Premier Hotel, 18 September 2014
The Presidency: Ministry of Performance Monitoring and Evaluation
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Our Democracy
The Presidency: Ministry of Performance Monitoring and Evaluation
Introduction - Why Yes ?
Purpose
 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
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)
The Presidency: Ministry of Performance Monitoring and Evaluation
Policy
overview
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 outcomesbased 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 Context contin…
…Policy overview
 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.
Population profiles within skills levels and
unemployment
Figure 1 – Employment composition
of skills groups by population group
Unemployment by population group
(based on the expanded definition)
Source: StatsSA, 2014: Statistics South Africa.The South Africa I know, the home I understand
2,6 million in unemployed (Based on the expanded definition of unemployment)
The unemployment rate stable at 35%.
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.
What are the
expectations
for Rural Agric.
Sector & on
Skills Dev?
SECRET
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
2012
Actions
2015
2012-2015
Develop National Skills
Planning System
DHET
Clarify the mission of SETAs
DHET
Address governance
issues
Address under-spending of
skills funds
2020
2016-2020
2030
2025
2021-2025
DHET & SETA boards
DHET
Ensure effective regulation
of training providers
Quality Assurance Councils
Improve relationship
between skills training
institutions and employers
SETAs
Double the current skills
output of SETAs
SETAs
2026-2030
Further education and training
Support
universities to
establish training
centres for
college lecturers
Build new
colleges; use
distance
education; employ
more college
lecturers
Improving outcomes
of the college sector
Introduce entry
requirements &
develop alternative
institutions for
learners who
do not qualify
Facilitate
exchange of staff
between colleges
and industry
Appoint a
qualified CFO in
each college
Change the rules
to allow colleges
to access some of
the SETA funding
The Presidency: Ministry of Performance Monitoring and Evaluation
Research and innovation systems
DST, DHEAT, Universities & Science councils
Coordination
Create framework for national system of
innovation
Research capacity
development
Increase support for postgraduate studies
Attract top research
talent
Relax immigration requirements to attract
scientists
Transform researcher
demographics
Attract and support young researchers
Inter-sectoral
collaboration
Support collaboration between sectors
Excellent research &
innovation output
Develop world class centres of research and
innovation
Transforming Society
Healing
the past
Active citizenry,
leadership, social
compact
Eliminate
discrimination
Unite
the
nation
Improve services
for
all citizens
Create a South
African Identity
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What can you
do to speed
up change in
AgriSETA?
SECRET
Opportunities in the green economy
• 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 – 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
What is not
well –
examples of
misalignment
SECRET
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
Rural Youth
Cooperative
Surplus on Apprenticeships
Artisan 18.2 (unemployed)
Surplus on ABET
Support to under resourced
rural learners weak
Rural Structures
Spending more on skills
delivery administration
Skills programme for
unemployed v. low
expenditure over time
Capacity building programs
ranked average on the
agenda
RPL None – for farm
workers
Skills programme for
unemployed v. low
expenditure over time
Agricultural
Colleges
No allocations for Extension
development – target 50n
2012/13 – 0 done
Low exp. / reserves on
AgriBEE Charter
Artisan 18.2
Sector Intelligence and
Career Information ranked
low on the agenda
RPL: under-targetting
resulting in inadequate
structures and learning
programmes – compromise
access to decent work
Disconnect between the Sector Skills Plan and its Implementation
Stakeholders – Active
The Presidency: Ministry of Performance Monitoring and Evaluation
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Key Questions
To what extent are those trained active on the ground? Sustainability dimension
1
What is the level of functionality of structures supported by AgriSETA? Sustainability
2
With few commodity groups (GrainSA, Table Grapes, Poultry, etc) in formal
partnership with AgriSETA, how can these be broadened and increased? Scaling up
3
4
5
6
7
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 conti
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?
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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