Minister van Rensburg Announces the budget for 2012/2013

On 28 March, the Western Cape Minister of Agriculture and Rural Development, Gerrit van Rensburg, announced his department's budget for the 2012/2013 financial year. Minister van Rensburg said the focus on this year's budget of R560 million is on leveraging partnerships for greater efficiency gains.

The Western Cape Government adopted 12 Provincial Strategic Objectives in order to stimulate growth led development. Agriculture is the custodian of Objective 11: Increasing Opportunities for Growth and Development in Rural Areas. The minister pointed out that his budget delivery is not according to traditional departmental programmes, but rather in the form of five work groups which are driving Strategic Objective 11.

These work groups are focusing on increased production, market access, research and technology, rural development and extension revitalisation.

Minister van Rensburg said that the Western Cape is striving towards a 60% land reform success rate. This is against the backdrop of a national success rate of only 10%. In order to achieve this, the Western Cape Department of Agriculture developed a commodity approach towards empowerment projects.

Minister van Rensburg said that two crucial aspects are needed in order to achieve success in agricultural transformation: partnerships with the various commodity groups, in order to access skills and knowledge, and a tool with which to measure progress.

The commodity approach is based on commodity committees, represented by industry experts as well as government. These committees evaluate, assist and support the projects. In some cases, the department and a commodity organisation will share the financial cost of a project. This unlocks additional funds, and keeps all stakeholders motivated for success. The support ranges from the development of business plans up to the point where projects are supported with market access. The department will invest R86 million in empowerment projects with the different commodity groups this year.

Projects are measured for success against five key performance areas: market access, financial management, reinvestment in business, SARS compliance and labour law compliance. Minister van Rensburg said that measured against these criteria, the current 202 land reform projects in the Western Cape are performing as follows:

• 74% have access to markets.
• 78% have sound financial management and record keeping systems.
• 50% are reinvesting in their farming enterprises.
• 76% are implementing their business plans.
• 50% are SARS compliant.
• 38% are labour law compliant.

Minister van Rensburg said this model acknowledges the complexities surrounding land reform and what constitutes a successful project. "From the above percentages, we get a clear picture where we can improve, and allocate resources accordingly."

The minister said that this model of land reform and empowerment is very successful, and he hopes it will become a national model in the near future. Minister van Rensburg highlighted rural development as another example where much can be achieved when efforts are well coordinated. He said the Western Cape has, with a two-person team and a budget of R2.1 million, managed to source R265 million from other government departments for rural development projects in six rural development nodes in the Western Cape.

These investment funds have initiated 221 projects, which created 1 301 job opportunities. It also provided training opportunities to 1 453 people. "We are creating an environment in our rural areas which will be attractive for the private sector to invest in," said Minister van Rensburg. A total of 15 nodes has so far been identified and are in different phases of development.

The minister congratulated people in the agricultural sector who excelled in the past year. "First we celebrated Agri Dwala for being crowned as the Best Empowerment Initiative in South Africa in 2011, now Jacky Goliath has been voted to be the Best Female Commercial Farmer in South Africa."

Minister van Rensburg said the Western Cape Government will host a tri-annual agricultural summit in 2012, which will be an opportunity for all role players to work together to develop a strategic framework for the province's agricultural sector. This will help determine what the sector should look like in the future and how future challenges must be addressed.