Transformation within the agricultural sector: 20 years of democracy

1. 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

2. Our Democracy

3. Introduction - Why Yes ? Purpose Outcome 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 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

4. 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)

5. 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

6. 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.

7. …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.

8. 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) 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%.

9. 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.

10. What are the expectations for Rural Agric. Sector & on Skills Dev? SECRET

11. An integrated and Inclusive Rural Economy – key points

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

13. Skills development 2030 2012 2015 2020 2025 Actions 2012-2015 2016-2020 2021-2025 2026-2030 Develop National Skills Planning System DHET Clarify the mission of SETAs DHET Address governance issues DHET & SETA boards Address under-spending of skills funds DHET Quality Assurance Councils Ensure effective regulation of training providers Improve relationship between skills training institutions and employers SETAs SETAs Double the current skills output of SETAs

14. Further education and training Improving outcomes of the college sector Support universities to establish training centres for college lecturers Appoint a qualified CFO in each college Build new colleges; use distance education; employ more college lecturers Change the rules to allow colleges to access some of the SETA funding Introduce entry requirements & develop alternative institutions for learners who do not qualify Facilitate exchange of staff between colleges and industry

15. 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

16. Transforming Society Unite the nation 16

17. What can you do to speed up change in AgriSETA? SECRET

18. 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

19. 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%; aquacultureis 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

20. What is not well – examples of misalignment SECRET

21. 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

22. Implementation not fully aligned based on Annual Reports 2012- 2013 Disconnect between the Sector Skills Plan and its Implementation

23. Stakeholders – Active

24. Key Questions 1 2 3 4 5 6 7

25. Key Questions conti

26. 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

27. 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

28. SECRET

29. Thank you