Economic Opportunities

REPLY IN RESPECT OF THE AGRI-PROCESSING SECTOR AS PART OF KHULISA

 

The aim of the Project Khulisa Agri-processing interventions is to double exports; therefore the focus of the Supplier Development Programme as the part of the Project driven by the DEDAT has been intended to support existing small to medium enterprises to become more efficient in order to become export ready and to gain access to (export) markets.

The list contains confidential personal or business data and as such, can be provided on request.

 

 

 

 

 

 

Existing businesses that have been supported through the DEDAT’s Agri-processing Supplier Development Programme. This information can be made available on request.

 

Four BEE wineries have been supported to attend international trade shows and have been included in wine export promotion activities:

• House of Mandela
• Cape Dreams
• Bayede
• La Ric Mal

 

1. …(b) out of these, (i) how many are 51%-and-above black-owned enterprises, as defined in the BBBEE Amended Codes, (ii) how many are based in the Western Cape by shareholder ownership and primary operations (domicilium) and (iii) how much of the shareholding is owned by women, the youth and/or people with disabilities.

 

Reply:

Agri-processing Supplier Development Programme – 2016/17 – 21 Businesses

1. 1. Eight of the businesses are white owned with one business being 25% black owned. Thirteen businesses were 100% black owned entities.
   2. All the businesses are based in the Western Cape.
   3. Ten businesses were male and eleven are female owned. One of the businesses are 50% youth owned and another 100% youth owned. None of the business owners were people living with disabilities.

Agri-processing Supplier Development Programme – 2016/17 – 22 Businesses

1. 1. 30 % of the businesses (8) on the programme are black owned entities.
   2. All (100%) businesses are based and operate from within the Western Cape.
   3. 50% of the businesses (13) are owned by women. No youth ownership and no persons with disabilities.

 

2. … how has the Department enabled these companies to participate in the economy

Reply:

 

2016/17

 

The APSDP aimed to develop and grow agri-processing businesses by exploiting opportunities within existing and new supply chains. The businesses will be developed through a structured process (business turnaround or business improvement) to ensure that the business is able to move up the value chains of the agri-processing sector. The programme focuses on improving the entrepreneur’s skills and the competitive position of the business.

The 2016/17 programme supported 21 businesses where 14 businesses showed initial growth which amounted to an increase in turnover of these companies by a total of R15 991 816.29 after the implementation of the project and an additional 89 jobs were created. The six businesses are still in the process of implementation of the interventions which are mainly linked to the fabrication of equipment which would have a longer-term impact as opposed to an immediate change. The monitoring and evaluation process for the 2017/18 financial year will be completed by the end of this financial year to see the impact of the interventions.

2017/18

 

Project monitoring is currently underway but there are no changes to report at this time.

 

There are farming enterprises who have been supported by the Comprehensive Agricultural Support Programme (CASP) included in the supplier development initiatives of Project Khulisa as driven and administered by the Department of Agriculture.

The list contains confidential personal or business data and as such, can be provided on request.

 

 

 

 

 

 

3. … has he and the Department ever held engagements with the agri-workers where there are high risks of job losses due to the drought; if so, what kind of engagements were held, what were the outcomes thereof and what evidence therefore can be submitted; if not, why not?

 

Reply:

 

At primary on farm agricultural level several initiatives beyond its normal support and extension activities have been undertaken to engage with farmers and agri-workers to address the risks associated with the drought through the Department of Agriculture’s Farmer Support and Development Programme and Disaster Risk Management:

 

• A series of innovative ways have been developed to engage with and keep farmers and farming communities informed with up to date and accurate information to assist in making the best possible decisions for their futures.

 

1. The first of these is the department’s Drought Portal, a designated site where up to date information regarding the drought can be easily accessed. Farmers are be able get up to date dam levels, complete a disaster survey and access a handy “drought toolkit”. This can be accessed by visiting www.elsenburg.com/drought.
2. The department has also launched Gooi Agri, which allows users to upload short videos of their own smart-agriculture practices and techniques. Each month will be themed and the first theme is “drought and water”, because of the importance of water and the impact of the drought. The best video clips will be featured on the website and shared via various media platforms. 
3. The department is producing a weekly radio programme called Die Kwik Styg on RSG that focuses on climate change and includes internationally renowned experts as guest speakers. It is broadcast on Fridays at 12.45 and can be down-loaded.

 

• Dedicated officials are managing the responses to the disaster surveys to assess the effect of the drought on farmers and way forward with individual farmers, including smallholder, communal and commercial farmers.

 

• Drought relief in the form of fodder for animals has been provided in terms of the Conservation of Agricultural Resources Act (CARA), Act 43 of 1983. The protection and conservation of the veld is one of the objectives of the act and when fodder is supplied, animals are removed from the veld to allow the optimal utilisation of whatever rain does fall to revitalise the veld.

 

• Since 2015/16 the West Coast and Central Karoo districts have been proclaimed as drought disaster areas and later Kannaland and Witzenberg followed. This paved the way for support to stock farmers, but finding the financial resources in the difficult economic situation was and still is a major challenge.

 

• The Western Cape Department of Agriculture (WCDoA) decided the only way out was to reprioritise their budget to make funding available to support stock farmers with fodder for their animals.

 

• Strict rules are applied when this support is provided to ensure the optimum utilisation of government funding and to prevent the misuse thereof. Farmers are expected to reduce their stock numbers by at least one third during drought conditions and submit stock registers to ensure no overgrazing occurs, i.e. the number of animals is in line with the carrying capacity of the specific farm in order to protect the natural veld conditions as per CARA requirements.

 

• Farmers that qualify for assistance receive an authorisation voucher that indicates the value of the fodder that can be purchased, their own contribution required and a guarantee that the WCDoA will pay the service provider for the fodder provided. No money is thus paid to any farmer.

 

• During the 2017/18 financial years R80 million was made available for drought relief through reprioritised budgets from the Department of Agriculture and CASP. The funds include a donation by AgriSA of R2.5 million.  An allocation of R40 million had also been received from the Department of Agriculture, Forestry and Fisheries (DAFF) in addition to the R12 million of fodder supplied by them directly to farmers in December 2016/January 2017.

 

• In addition to the above numbers, R1.5 million was also used in 2015/16 to provide a livelihood support to smallholder grain farmers and their agri-workers in the Swartland, who lost more than 50% of their harvest in 2015.

 

• To date 1 482 farmers (smallholder, communal and commercial) have been supported with fodder for more than 89 300 small stock units.

 

 

 

 

Outcome

 

The funds made available have contributed towards sustaining farming in the severe drought conditions, supported the protection of the genetic material of core stock herds and played an important role in supporting many households and agri-workers in the rural areas of the province.  Rural agriculture seems to have stabilised and this is supported by the 2017 Q4 data supplied by Quantec (see graph below).

 

At an off-farm level, the Economic Water Security Workstream (led by DEDAT and with partners from the Department of Environmental Affairs & Development Planning, the Department of Agriculture, GreenCape, the City of Cape Town, Wesgro, the Economic Development Partnership and the National Business Initiative) has engaged with multiple agri-processing businesses and business associations during the water crisis, including the following sub-sectors: Wine, Fruit, Dairy, Fruit and Vegetable processing, Meat processing, Grains and Seafood processing. Engagements have taken the form of 1-on-1 meetings, and presentations and discussions at meetings, workshops and conferences.

 

As with all the sectors the key focus of the workstream has been to support businesses to reduce businesses’ water consumption; increase businesses’ own water supply augmentation; and prepare businesses for day zero. The key messages to all businesses have been the following:

• The effects of the current drought are long term and can only be broken with 3-4 years of good rain
• Restrictions are here to stay – e.g. likely to be level 6B in City until well into 2019
• Water tariffs are likely to remain high in the future
• Businesses need to reduce water use as much as possible, without affecting production
• We are all too dependent on rainfall and surface water sources and need to diversify supplies – both sources of water and in a decentralised manner
• Businesses need to adapt to a ‘new normal’. The business case for improved water efficiencies and own water supplies is continually growing stronger with increased rainfall uncertainty and water tariffs.
• A whole of society approach is needed. Businesses are a key partner in this approach and are asked to help in communicating the severity of the drought and urgency to reduce water use with their own operations, supply chains, employees and customers.
• All businesses are encouraged to complete the survey that assesses water savings actions by businesses and impacts of the water crisis and are asked to alert the workstream of any impacts – imminent or already being experienced.
• Business support is available

 

The business support offered to all businesses includes strategic, regulatory and technical support and is offered free of charge through the workstream partners and, in particular, through GreenCape’s water sector desk. Workshops have also been held with key industrial areas, with part of the aim being to enable neighbouring businesses to cascade water between themselves, depending on the quality of water required for each. The following support is being offered:

 

1. For technical business support incl.:

• increasing water efficiencies, reusing or recycling water and supply options
• Case studies
• Benchmarking
• Linking with water tech suppliers
• Technology choices
• Networking events, etc.

water@green-cape.co.za

http://www.greencape.co.za/content/focusarea/business-support

 

2. For general water for the economy program support incl.:

• Industry engagements
• Links with municipalities
• Licensing issues
• Contingency planning
• Website updates
• Business related communication materials

helen.davies@westerncape.gov.za  lourencio.pick2@westerncape.gov.za

https://www.westerncape.gov.za/110green/water

 

3. City of Cape Town support:

• Energy, Water and Waste Business Forum
• Star rating tool for good water management practices (business operations)  – CCT’s currently being updated
• New technology evaluation process
• Awareness materials
• Guideline for installation of alternative water systems (households & businesses) being developed.

Treated effluent: treated.effluent@capetown.gov.za

Communications materials: www.capetown.gov.za/thinkwater

Outcome

 

The sector has shown resilience. Despite the estimated job losses of around 30 000 as a direct result of the drought; the job gains retained since the inception of Project Khulisa in 2015 are estimated to be 81 016, of which an estimated 1 537 jobs as a result of emerging farmer support initiatives.  The sector is being guided by the initiatives and engagements of the WCG to adapt and to survive the on-set and effects of climate change.

 

The graph below indicates the trend in job data estimates for the Western Cape and stabilisation of losses by Quarter 4 of 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REPLY IN RESPECT THE TOURISMSECTOR AS PART OF KHULISA:

Tourism’s focus is not directly related to the establishment of new business in the sector but rather emphasises on increasing the number of tourists to the region and by creating an environment to lengthen tourists stay. Through a number of initiatives that spans destination marketing, business tourism development, air route development and niche development activities such as the development of the cycle route and heritage tourism development.

Notwithstanding the departments focus, we have assisted individuals and associated small or medium enterprise assisted by the department. The list contains confidential personal or business data and as such, can be provided on request.

 

(b)      Out of these, (i) how many are 51%-and-above black-owned enterprises, as defined in the BBBEE Amended Codes, (ii) how many are based in the Western Cape by shareholder ownership and primary operations (domicilium) and (iii) how much of the shareholding is owned by women, the youth and/or people with disabilities.

The department does not track BEE status of SMME’s assisted.