Inclusive businesses (IBs), embodying partnerships between commercial agribusinesses and smallholder farmers/low-income communities, are considered to contribute towards rural development and agricultural sector transformation. Structured as complex organizational set-ups consisting of, and overcoming the limitations of, standard inclusive instruments (collective organization, mentorship, supply contract, lease/management contract and equity), they allow for the inclusion of smallholders and low-income communities into commercial agricultural value chains.

Agri SA supported orderly land reform – equitable land distribution is a prerequisite for rural stability and inclusive rural development. Agri-SA believed that expropriation should only be used as a last resort where negotiations fail. There needed to be a clear purpose for expropriation. Compensation should never be dependent on the state’s ability to pay. The land owner should always be afforded recourse to the courts to contest both the merits of the expropriation and the compensation amount.

The Committee was briefed by the Ingonyama Trust Board (ITB) on its third quarter 2014/15 performance and financial report. Apologies were received from the Minister and Deputy Minister. At the outset, Members expressed their dismay that the ITB was reporting from a document that contained different figures to the one sent through to Members earlier, and it was difficult to follow the presentation. Secondly, several commented that the reporting format was problematic, as it did not conform to standard practices nor terminology as used in the Public Finance Management Act.

The Department of Agriculture Forestry and Fisheries (DAFF) and the Department of Rural Development and Land Reform (DRDLR) jointly presented on the implementation of the One District, One Agri-Park programme in the context of the framework of the rural economic transformation model.

The Deputy Minister of the Department of Rural Development and Land Reform (DRDLR), addressed the Committee on the motivation for the amendments to the Extension of security of tenure (land) Amendment Bill, saying the fundamental resolve was to overcome decades of hardship in South Africa. Its redress was not about obsolete political stories, but about the creation of just opportunities.

The Committee received a presentation of the evaluation report on the implementation of the Comprehensive Rural Development Programme (CRDP) by the Department of Perfomance, Monitoring and Evaluation (DPME). The National Evaluation Plan (NEP) containing 52 evaluations that cut across government had been approved by Cabinet in 2012/13. There were eight evaluations in the rural development sector and the CRDP was one of the key programmes implemented since 2009.

The meeting began with the adoption of the draft report on the budget vote 39, where a number of small issues were raised, including typos and minor amendments. The main thrust of the changes was that the Land Claims Court should be given greater priority, and a policy needed to be put in place to help with alleviating the bottlenecks in these courts. The adoption of the report became heated when the DA abstained from approving it, even though they had been a part of the process from the beginning.

The Ingonyama Trust Board (the Trust) presented its Annual Report for the 2014/2015 financial year. The Trust had committed R6 000 000 for the purchase of tractors to support production on communal land and noted that substantial sums of money were paid out for the benefit of 120 Learners. Employment, HR and vacancy figures were given. The Trust highlighted some performance statistics. In this year, the Board had approved 1 100 tenure rights, falling short of the target of 1 200.

The Department of Rural Development and Land Reform (DLDLR) provided a progress report on its interventions to address the challenges arising from the actions of the Rama Communal Property Association (CPA). The CPA had initiated some income generating activities on its land, which included a quarry business, and had started a museum and an entertainment centre that featured a cinema. In partnership with the Tshwane Metropolitan Municipality and private investors the CPA was in the process of developing houses on its land.

The Department of Rural Development and Land Reform (DRDLR) briefed the Committee on its third quarter 2014/15 performance and progress on the recommendations made by the Department of Performance Monitoring and Evaluation (DPME) and the Management Performance Assessment Tool (MPAT) evaluation.

A representative of the Auditor-General South Africa (AGSA) briefed the Committee on the audit outcomes and expenditure patters in the rural development portfolio for the 2014/2015 financial year. The quality of submitted financial statements for the Agricultural Land Holding Account (ALHA) was good but needed improvement. The quality of submitted performance reports for Ingonyama Trust Board (ITB) was good but required intervention from the Department of Rural Development and Land Reform (DRDLR or the Department).

While the Committee was waiting for delegates from the Departments of Rural Development and Land Reform (DRDLR) and Environmental Affairs (DEA) to arrive, it had time to engage on other matters which were not on the agenda. Members were told the Committee had received a late invitation from the DRDLR to attend an indaba in Johannesburg on March 20. They agreed to seek more details on the event before deciding whether Members should attend. Minutes of the February 24 meeting were adopted without any corrections.