Presentation on Medium Term Strategic Plan 2008/2011

to the Social Development Portfolio

CommitteeParliament

Cape Town27 March 2008

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• The National Development Agency (NDA) is a Schedule 3 (A) Public Entity established in terms of Section 2 of the National Development Agency Act 108 of 1998.

• It gets its funding from State through the Minister for Social Development, Vote No:17.

BACKGROUND

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• The NDA consists of a Board, appointed in line with the provisions of Section 5 of the National Development Agency Act as amended.

• The following Board Members were appointed for a three year Board term starting from 24 October 2008:

• Bishop M Mpumlwana • Ms Marcia Manong• Dr W Mgoqi• Prof T Mayekiso• Mr. Mmoloki Pheelwane• Mr. Phuti Mokobane

BACKGROUND

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• Mr. M Madzivhandila• Rev N Maphalala• Mr. S Mohlabi• Mr. D Adler• Chief P Ngove

• The Management of the NDA and the Board met on the 14 & 15 January 2008 to review the Strategic Plan. This current Strategic Plan 2008/11 is a culmination of the deliberations of Board and reflects their input.

Background Cont…

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NDA Legislative Mandate

• The primary mandate of the NDA is to contribute towards the eradication of poverty and its causes by granting funds to civil society organisations for the purpose of :

• Carrying out projects or programmes aimed at meeting development needs of poor communities; and

• Strengthening the institutional capacity of other civil society organisations involved in direct service provision to poor communities.

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The secondary mandate of the NDA (cont…)

• a) To promote:

Consultation, dialogue and sharing of development experience between civil society organisations and relevant organs of state; and

debate on development policy;

• b) To undertake research and publication aimed at providing the basis for development policy.

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Our Mission

• Facilitate development through targeted grant funding, research and strategic partnerships

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Our Vision

A developing society free from poverty

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Strategic Goals

Goal 1: Establish and promote partnerships to leverage funds and capabilities

Purpose: To make most of the funds and capabilities available from various players in the development arena

Strategic Objectives:1. Identify potential players and best practices that can be applied

and opportunities for intervention to create islands of success2. Improve internal processes of quality grant-making to optimise

funding activities3. Develop and sustain partnerships and programmes of action

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STRATEGIC GOALS CONT…

Goal 2: Facilitate research that informs grant funding decisions and policy

Purpose: To understand the nature of poverty in SA, what must be done to alleviate it, who the players are, what they are doing and what the NDA and other players might do to shape effective programme and influence policy

Strategic Objectives:1. Establish and maintain database of CSOs and other players2. Identify targets for intervention and craft solutions3. Measure impact of programmes and share learning and

knowledge

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STRATEGIC GOALS CONT…

Goal 3: Build and sustain organisational capabilities

Purpose: To build and sustain the capacity we need to deliver our mandate, and to operate efficiently and effectively, with sound governance, and as one committed team adhering to agreed values

Strategic Objectives:1. Right people in right jobs; effective recruitment, induction,

training and development, retention2. Entrench values and sound operating policies3. Effective business systems and governance processes

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Defining the Scope and Level of Poverty

• New estimates of poverty show that the proportion of people living in poverty in South Africa has not changed significantly between 1996 and 2001.

• Approximately 57% of individuals in South Africa were living below the poverty income line in 2001, unchanged from 1996.

• Limpopo and the Eastern cape had the highest proportion of poor with 77% and 72% of their populations living below the poverty income line, respectively.

• The Western Cape had the lowest proportion in poverty (32%), followed by Gauteng (42%).

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Table 1. Poverty indicators by province

Province No. of poor persons (million) % of population in poverty Poverty gap (R billion) Share of poverty gap

Eastern Cape 4.6 72% 14.8 18.2%Free State 1.8 68% 5.9 7.2%Gauteng 3.7 42% 12.1 14.9%KwaZulu-Natal 5.7 61% 18.3 22.5%Limpopo 4.1 77% 11.5 14.1%Mpumalanga 1.8 57% 7.1 8.7%North West 1.9 52% 6.1 7.5%Northern Cape 0.5 61% 1.5 1.8%Western Cape 1.4 32% 4.1 5.0%South Africa 25.7 57% 81.3 100.0%

1991 1996 2001

African 0.62 0.66 0.72White 0.46 0.50 0.60Coloured 0.52 0.56 0.64Asian 0.49 0.52 0.60Total 0.68 0.69 0.77

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Achievements & Highlights 1 Jun 2005 – 28 Feb 2008

- Finalization of matters arising out of the forensic investigation

- Grant funding commitment of R341m to income generating and food security projects

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- Participation in the National Program for Creation of Small Enterprises and Jobs in Second Economy – ASGISA.

- Funding for CSO Capacity Building amounting to R25.7 m

- Finalisation of strategic plan 2008/11

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Challenges

• Level of funding allocation compared to level of demand. The NDA receives funding requests of approx. R750m per annum.

• Building organizational capability and competencies - human and institutional.

• Review the NDA Act to improve internal business processes and align delegations of authority with PFMA

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Allocations to the NDA

2004/5 2005/6 2006/7 2007/8 2008/9

R’m % R’m % R’m % R’m % R’ m %

109 6% 121.5 11% 123 6% 129.1 5% 136.3 5%

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NDA Impact on Poverty

• Since March 2000, the NDA has committed R732m to projects in economic development, food security, community health and education

• This has benefited 407 773 direct households

• Indirectly benefited 2 031 375 poor people

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Medium Term Fiscal Allocations

DescriptionYear 1 (2008/ 09)

% split for 08/ 09

Year 2 (2009/ 10)

% split for 09/ 10

Year 3 (20010/ 11)

% split for 10/ 01

Establish & promote partnerships to leverage funds & capabilitiesSUB-TOTAL 103,832,700 66% 109,024,335 67% 113,385,308 67%Strategic Goal two: Facilitate research that informs grant funding decisions and policy - SUB-TOTAL 5,399,618 3% 5,669,599 3% 5,896,383 3%Build and sustain organizational capabilitiesSUB-TOTAL 3,290,526 2% 3,455,052 2% 3,728,974 2%Salaries 32,877,318 21% 34,521,184 21% 35,902,031 21%SUB-TOTAL 43,744,156 28% 45,633,014 28% 47,458,334 28%

Total funds required 156,267,000 100% 163,782,000 100% 170,469,000 100%

Total income available 156,267,000 100% 163,782,000 100% 170,469,000 100%Grand 136,267,000 87% 144,782,000 88% 153,469,000 90%Interest 20,000,000 13% 19,000,000 12% 17,000,000 10%

Surplus or (Deficit) - - - -

MEDUIM TERM BUDGET 2008-2011

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Project Disbursements

2004/5 2005/6 2006/7 2007/8

R92.6m R68.7m R110.9m R69m

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Macro Indicators

Macro indicators speak to the high-level, externally focused objectives that will be achieved through implementation of NDA’s strategic goals. The Macro indicators and associated strategic goals are as follows:

1)    Improved coordination of resource allocation for poverty eradication        Partnering for Development        Resource Mobilisation for poverty eradication

2)    Improved economic opportunities for communities in NDA targeted localities        Community empowerment for sustainable development

3)    Improved social empowerment in NDA targeted localities        Community empowerment for sustainable development 4)    Improved capability of targeted CSOs in relation to service delivery        Community empowerment for sustainable development 5)     Increased influence in development policy as it relates to poverty eradication Communication of credible and relevant researched development information

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Questions & Comments

THANK YOU