Annual Report on Agriculture, Rural Development & Environment 2023/24
Presentation of the annual report by the Department of Agriculture, Rural Development, and Environment to the Portfolio Committee for the fiscal year 2023/24. The report highlights areas of underperformance, achievements, and financial performance, with a focus on key indicators. It discusses the deviation from planned targets, reasons for the discrepancies, and actions taken to address challenges in financial management.
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DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT AND ENVIRONMENT Presentation of Annual Report to the Portfolio Committee 2023/24 Report 19 November 2024
Table of Contents 1. Executive Summary 2. Areas of under performance 3. Areas of achievement 4. Financial Performance Report 2
EXECUTIVE SUMMARY: PERFORMANCE INFORMATION The performance rating scale used ranges from targets achieved, and those that are not achieved. A total of 129 targets were planned and reported by end of 2023/24 FY. Of this total, 105 were Achieved and 24 were Not Achieved. GDARDE Overall Performance is at 81% Achieved and 19% Not Achieved for 2023/24 FY. 19% constitutes targets which are Not Achieved from Administration (7), Agriculture & Rural Development (9) and Environment (8). Budgeted Programme No. Indicators Per Programme No. of Indicators Achieved % of No. of % of Indicators Achieved Indicators Not Achieved Indicators Not Achieved 47% 12% 20 19% 15 74 40 129 8 53% 88% 80% 81% 7 9 8 24 Programme 1 65 32 105 Programme 2 Programme 3 Total 3
Performance Indicator Deviation from planned target to Actual Achievement 2023/24 Reasons for deviations Planned Annual Target 2023/24 Actual Achievement 2023/24 FINANCIAL MANAGMENT Late submissions of RLS02s by end users, exceeding the 10 days period, mainly due to the SRM system that did work properly, thus causing delays in processing of the invoices. Additionally, challenges were experienced with regards to the SITA and as a result, the invoices were posted but could not interface on the payment run. RFQs were issued to businesses owned by Persons with Disabilities and Military Veterans however, most of the targeted groups were found to be non-tax compliant. SCM has since reviewed its evaluation criteria and allocated more points to Persons with Disabilities and Military Veterans Invoices paid within 10 working days of receipt 100% 93% -7% Invoices paid within 30 days of receipt 100% 100% 100% 7% 1% -6% Percentage of total procurement that targets businesses owned by Persons with Disabilities (PwDs). 0.2% 0% -0.2 Percentage of total procurement that targets businesses owned by Military Veterans 40% 33% -7 RFQs were issued with regards to percentage increase in department spend in township, however, most of the targeted groups were found to be non-tax compliant. SCM has since reviewed its evaluation criteria and allocated more points to the targeted groups Percentage increase in department spend in township 6
Planned Annual Target 2023/24 Performance Indicator Reasons for deviations Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 FINANCIAL MANAGMENT 0% 100% -100% Preferential Procurement Request 2017 which advocated for subcontracting 30% of contract above R30 million to advance designated groups was repealed and replaced by PPR 2022 from the 16 January 2023. This is no longer a requirement Percentage of the rand value of tenders above R30 million to be sub- contracted to SMMEs Clean audit Unqualified audit with findings Non-achievement of clean audit There was a material adjustment to the Annual Performance Report (APR) and non-compliance to legislation, which prevented the department from achieving a clean audit Clean audit outcome obtained from the Auditor-General HUMAN RESOURCE MANAGEMENT 12% -2% 10% Delayed approval of posts and moratorium by DPSA affected the filling of posts. A total of 22 posts have been prioritized for filling in the new financial year Vacancy rate maintained below 10% 7
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 Reasons for deviations SUSTAINABLE RESOURCE MANAGMENT 50 7 -43 Agricultural infrastructure established Slow Progress by DBSA in processing the service providers payment, contributed to the slow implementation of the project. Additionally, contractual issues at the inception of the project that took longer to be resolved by DBSA, further delayed the implementation 1 400 752 -648 Hectares of agricultural land rehabilitated. The delayed approvals of 2023/24 land care business plans, which further resulted in the delays of the appointment of service providers. Purchase orders for all land care grant RFQs will be prioritised for 2024/25 financial year. 600 169 -431 Green Jobs created 8
Planned Annual Target 2023/24 Performance Indicator Reasons for deviations Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 FARMER SUPPORT AND DEVELOPMENT Producers supported in the Grain Commodity 60 57 -3 The TOR for the supply and delivery of grain production inputs was not concluded on time. Therefore, alternative support such as extension and advisory services were provided to the farmers Smallholder producers commercialised (Reaching an annual net income that exceeds R 1 m) 50 0 -50 22 farmers were assisted with production inputs to reach the commercial stage. However, the challenge was that most of the farmers were not able to provide audited financial statements citing the fact that they cannot afford to pay the fees for the auditors. Additionally, the other reason the target could not be reached was due to the non- responsiveness of the poultry, grains and livestock value chains advertised tenders. Youth trained in food production programmes as part of the rehabilitation programmes 2 000 1 449 -551 Less youth showed interest in food production training as was organised by GDARDE. This is a demand driven target, however, GDARDE will put mechanisms in place to continuously attract more youth to participate in skills development programmes in the new financial year. 9
Planned Annual Target 2023/24 Performance Indicator Reasons for deviations Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 RURAL DEVELOPMENT 6827.74ha Hectares of agricultural land released for agricultural 20 000ha -13 172. 26ha The Department could not achieve the target due to unavailability of agricultural land as revealed by the land audit conducted. As a result, the Department managed to allocate 6827. 74 ha of land in partnership with DALRRD. GDARDE will continue to engage GDID, DALRRD, Municipalities and Private Sector to make land available for food production Land acquired requires allocation to beneficiaries. Confirmation of Youth beneficiaries will be done once allocation has been made Percentage agricultural land allocated to youth farmers for agricultural production 30% 0 -30% Percentage of agricultural land allocated to women farmers for agricultural production 40% 0% -40% Land acquired requires allocation to beneficiaries. Confirmation of Women beneficiaries will be done once allocation has been made 10
Planned Annual Target 2023/24 Performance Indicator Reasons for deviations Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 COMPLIANCE & ENFORCEMENT Percentage of administrative enforcement notices complied with 70% 26% -44% Of the 170 administrative notices issued, 45 notices were closed/withdrawn resulting in a 26% achievement on this target. This is because several of the administrative notices are still in the process of being complied with as the timeframes indicated for compliance are not yet lapsed. Percentage of compliance to legislative obligations in respect of licensed facilities inspected 70% 41% -29% 139 facilities were monitored in the year under review, of which 57 facilities were fully compliant with the legislative obligations (conditions) in the licences or registration certificates issued by the Department resulting in 41% compliant facilities. Administrative enforcement notices were issued to the 82 facilities that were not fully compliant with the condition of their licences or registration certificates Designated Environmental Management Inspectors (EMI) in provincial departments and local government 8 0 -8 The indicator is demand driven, both the inspectorate and municipalities did not get the planned number of people to be trained and designated. 11
Planned Annual Target 2023/24 Performance Indicator Reasons for deviations Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 IMPACT MANAGEMENT Percentage of complete EIA applications finalised within legislated timeframes 100% 92% -8% Target not met due to administration and technical errors within the Smart Gov System, three of the processed applications did not generate email notification WASTE MAMANGEMENT Feasibility Study for the Regional Integrated Waste Facility Phase 3 Feasibility Study & Treasury Approvals & Procurement Plan 0 -1 The target was not met because the funders requested that a Pre- feasibility study be conducted prior to development of the detailed feasibility study. The Pre-Feasibility study has been finalised and the project is ready to go into full feasibility study stage of the project development Gauteng Waste Minimisation Regulation Promulgated Phase 2 Legal drafting of Regulations and public participation 0 0 The target is not achieved in view of prolonged processes of getting concurrence from the Minister for the development of the Regulations. This had a knock-on effect on overall project schedule including the procurement processes. 12
Planned Annual Target 2023/24 Performance Indicator Reasons for deviations Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 WASTE MANAGEMENT 89 512 0 -89512 The declaration notices are still awaiting the MEC s signature Hectares under the conservation estate 1 0 -1 There has been a delay in the signing of the declaration notices as most of the due diligence activities are reliant on external stakeholders New Stewardship sites assisted to increase land under Conservation through the Biodiversity Stewardship Program 13
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 ADMINISTRATION Percentage of total procurement that targets businesses owned by Women Percentage of total procurement that targets businesses owned by Youth Percentage Reduction in irregular expenditure Percentage procurement implemented through the open tender system Percentage of women employed at SMS level within the department Percentage of people with disabilities employed within the department Work opportunities created through Tshepo 1 million Percentage of Ntirhisano commitments achieved 40% 59% 19% 30% 54% 24% 100% None 100% 100% 100% None 50% 56% 6% 2% 3% 1% 3 000 4 834 1 834 80% 100% 20% 15
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 AGRICULTURE AND RURAL DEVELOPMENT 80 Hectares of cultivated land under Conservation Agricultural practices Agro-ecosystem management plans developed 124 44 1 1 None Farm management plans developed 120 178 58 Disaster Relief Schemes managed 1 1 None. Awareness campaigns on disaster risk reduction conducted Surveys on uptake for early warning information conducted Producers supported in the Red Meat Commodity Producers supported in the Citrus Commodity Women producers supported 4 4 None. 4 4 None. 20 21 1 5 5 None. 55 80 25 Hectares planted for food production Smallholder producers supported 4 200 4 657,3 457,3 200 206 6 Smallholder producers supported to produce food in Sedibeng and West Rand 70 90 20 16
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 AGRICULTURE AND RURAL DEVELOPMENT 780 1 264 484 Participants trained in skills development programmes in the sector Capacity building activities conducted for smallholder producers Capacity building activities conducted for smallholder producers to be commercialised Subsistence women producers supported Subsistence producers supported 1 500 2 311 811 80 109 29 4 500 4 595 95 12 000 12 042 42 School food gardens supported 150 156 6 Horticulture production hubs established Visits to epidemiological units for veterinary interventions Cases attended to at Themba animal clinic Smallholder producers targeted for commercialization receiving Veterinary support Veterinary certificates issued for export facilitation Export Value Reports providing Amount and Rand Value compiled 1 1 None. 5 500 7 993 2 493 20 000 25 443 5 443 60 211 151 producers 16 000 18 136 2 136 1 1 None. 17
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 AGRICULTURE AND RURAL DEVELOPMENT R3bn Rand value of exports of animals/animal products/food of animal origin Inspections conducted on facilities producing meat Average percentage of compliance of all operating abattoirs in the province to the meat safety legislation Laboratory tests performed according to approved standards VPH and Exports clients satisfied with the quality of service received from the customer satisfaction survey Poultry and piggery facilities ZA registrations compliant with VPN 39 & VPN 44 Samples collected for targeted animal diseases surveillance Performing Animals Protection Act (PAPA) registration licences issued Research projects implemented to improve agricultural production Agribusinesses SMMEs Business Incubation Research presentations made at peer reviewed events Research presentations technology transfer events R4.3bn R1.3bn 1 200 1 517 317 87% 90% 3% 50 000 55 507 5 507 75% 98% 23% 100% 100% None. 500 1 236 736 40 77 37 10 10 None supported with 20 20 None 25 29 4 made at 5 15 10 5 7 2 Scientific papers published 18
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 AGRICULTURE AND RURAL DEVELOPMENT 2 3 1 Agri Tech Seminars hosted Producers trained in water saving technologies Hectares worked tractors Agri-parks that are functional per district Agri-parks upgraded Women benefitting from Agri-Parks 80 86 6 by GDARDE 5 000 8 668,4 3 668,4 1 1 None. 9 7 9 7 None. None. Agrotropolis initiatives supported 1 1 None. New technologies developed for smallholder producers Research infrastructure managed 1 2 1 1 1 None. Clients supported with production economic services Agri-businesses supported marketing services agribusinesses supported with Black Economic Empowerment advisory services Agri-businesses supported with agro- processing initiatives 400 475 75 with 100 153 53 50 69 19 10 11 1 19
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 AGRICULTURE AND RURAL DEVELOPMENT 10 Agro-processors through support Micro home based agro-processing enterprises supported in TISH Agri-businesses supported with agro- logistics services Township agro-processing established Capacity development undertaken targeting agropreneurs Gauteng Cannabis Industrialisation Masterplan developed commercialised and technical 10 None. financial 200 252 52 2 4 2 facilities 2 5 3 initiatives 200 212 12 1 (Development Hub was supported through partnership) (D 500 tons 1 (Development Hub was supported through partnership) 586 tons None. Volume aggregated through agro-logistics for agriparks Agricultural economic responses provided Economic reports compiled of agricultural produce 86 tons information 450 519 69 10 11 1 Transformation agreements monitored in the five agriculture/agro-processing priority Stakeholders contributing implementation Development Program 5 8 3 to the Rural 6 9 3 of the 20
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 AGRICULTURE AND RURAL DEVELOPMENT 4 Skills opportunities provided 4 None Businesses supported through enterprise supplier and development programme Agricultural production initiatives in communal areas and rural nodes supported Home-based enterprises profiled in targeted households in all districts 400 420 20 15 15 None 2 000 2 026 26 21
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 ENVIRONMENTAL AFFAIRS 3 Inter-governmental sector programmes implemented Legislated tools developed 3 None. 1 1 None Environmental research projects completed Functional environmental information management systems maintained Climate change response interventions implemented Gauteng Industrial Symbiosis Programme (GISP) Gauteng Greenhouse Gas (GHG) Inventory developed Administrative enforcement notices issued for non-compliance environmental legislation Completed criminal investigations handed to the NPA for prosecution Compliance inspections conducted 1 1 None 3 3 None 1 1 None 1 1 None 1 1 None 100 169 69 with management 30 39 9 270 382 112 S24G applications finalized within 60 days of payment of administrative fine 100% 100% None 22
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 ENVIRONMENTAL AFFAIRS 100% Percentage of complete Atmospheric Emission Licenses issued within legislated timeframes Percentage of facilities with Atmospheric Emission Licenses reporting to the National Atmospheric Emissions Inventory System (NAEIS) Percentage of complete waste license applications finalised within legislated timeframes Waste Certificates issued Health Care Waste Approvals issued 100% None 100% 100% None 100% 100% None 800 50 1 360 60 560 10 Recycling facilities and buy back centres supported with infrastructure & equipment Waste recycling cooperatives formalised Waste recycling cooperatives trained 100 126 26 100 100 None 100 103 3 Waste receptacles procured in TISH communities Hectares of land under rehabilitation/ restoration Urban parks considered for a NEM: PAA status 5000 100 000 95 000 3 000 6 900.59 3 900.59 1 6 5 23
Planned Annual Target 2023/24 Performance Indicator Actual Achievement 2023/24 Deviation from planned target to Actual Achievement 2023/24 ENVIRONMENTAL AFFAIRS 1 Biodiversity implemented Percentage of complete biodiversity management permits issued within legislated timeframes Percentage of area of state managed protected areas assessed with a METT score above 67% Reserves integrated management plans reviewed within legislated timeframe work opportunities created through environmental public programmes Number of environmental capacity building activities conducted Number of EPWP FTE jobs created Economy initiatives 1 None 90% 92% 2% 100% 100% None 1 1 None 2 500 6 224 3 724 employment 50 58 8 350 2 791 2441 Number of environmental awareness activities conducted Number of quality environmental education resources materials developed Number of trees (greening planted) 250 532 282 2 2 None 700 000 707 845 7845 24
APPROPRIATION PER PROGRAMME 2023-2024 F/Y Appropriation per programme 2023/24 2022/23 Expendit ure as % of final budget Actual Expendit ure Approved Budget Shifting of Funds Final Budget Actual Expenditure Varian ce Final Budget Virement R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Programme ADMINISTRATION AGRICULTURE AND RURAL DEVELOPMENT ENVIRONMENTAL AFFAIRS 277,288 - 10,643 287,931 277,193 10,738 96.3% 291,245 290,570 517,065 - (35,699) 481,366 467,519 97.1% 479,930 388,644 13,847 464,764 - 25,056 489,820 485,847 3,973 99.2% 354,331 331,822 TOTAL - - 1,230,559 28,558 97.7% 1,011,036 1,259,117 1,259,117 1,125,506
APPROPRIATION PER PROGRAMME 2023 - 2024 F/Y The departmental overall financial performance for the year under review recorded a 98% achievement as compared to 90% in the previous year. This is an 8% increase in financial performance compared to the previous financial year. Overall, the Department spent R1.230 billion that is equivalent to 98% of its total allocated budget for 2023/24 financial year. Programme 1 - Administration spent R277 million that is equivalent to 96% of its allocated budget; Programme 2 - Agriculture and Rural Development spent R467.5 million that is equivalent to 97% of its allocated budget; and Programme 3 - Environmental Affairs spent R485.8 million that is equivalent to 99% of its adjusted budget. The underspending can be attributed to vacancies at financial year end not yet filled. There was under-expenditure recorded under Payments for Capital Assets for transport equipment and other machinery and equipment. Most of the budget was committed at the financial year end, but the delivery could not take place before the end of financial year. 27
CONDITIONAL GRANTS 2023 - 2024 F/Y Variance as a percentage of Final Budget Final Budget Actual Expenditure Variance Conditional grant % R 000 125,199 37,385 5,203 R 000 116,401 37,357 2,867 R 000 8,798 CASP ILIMA/LETSEMA PROJECTS LAND CARE PROGRAMME GRANT EPWP INTERGRATED GRANT FOR PROV Total 92.97% 99.93% 55.10% 28 2,336 3,268 3,268 - 100.00% 171,055 159,893 11,162 28
CONDITIONAL GRANTS 2023 - 2024 F/Y The department spent R159 million of its R171 million adjusted budget for conditional grants, which is equivalent to 93% of its conditional grants adjusted allocation. The main under-expenditure of R8,5 million related to CASP infrastructure for the training and capacity building for famers, including unemployed graduates (R7,4 million) and cattle handling facilities (R1 million). Under land care the R2,4 million budget was not finalised to support Land Care Graduate Capacity Building, Junior Camps, Kaalfontein and Doornfontein Landcare projects. 29
APPROPRIATION PER PROGRAMME 2023 - 2024 F/Y The Department requested to roll over an amount of R1,9 million under equitable share and R2.9 million under Conditional Grant of which R4,8 million was approved. . The breakdown of the Conditional Grant approval is as follows: Comprehensive Agricultural Support Programme Grant: R 2.020 million (Goods and Services); and Land Care Programme Grant: R890 thousand (Goods and Services). 30
DEPARTMENTAL REVENUE 2023 - 2024 F/Y 2023/2024 2022/2023 Estimate Actual (Over)/Under Collection Estimate Actual (Over)/Under Collection Amount Collected R 000 Amount Collected R 000 Departmental receipts R 000 R 000 R 000 R 000 Sale of goods and services other than capital assets Fines, penalties and forfeits Interest dividends and rent on land Sale of capital assets 11 603 13 860 (2 257) 10 946 14 751 (3 805) 3 933 3 912 21 3 710 10 360 (6 650) 9 36 (27) 8 0 8 0 15 (15) 0 13 (13) FSales: Scrap 0 2 (2) 0 0 0 Financial transactions in assets and liabilities Total 318 1 016 (698) 303 281 22 15 863 18 841 (2 978) 14 967 25 405 (10 440) 31
DEPARTMENTAL REVENUE 2023 - 2024 F/Y The department collected R18,8 million as of 31 March 2024. It collected 18,8% (R2,9 million) more than the projected revenue of R15,8 million for 2023/2024 financial period. 32
Thank you 33
