11 11 presentation to the portfolio on agriculture, firestry and fisheries: daff annual report of...

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PRESENTATION TO THE PORTFOLIO ON AGRICULTURE, FIRESTRY AND FISHERIES:

DAFF ANNUAL REPORT OF 2009/2010 FINANCIAL YEAR

MR LANGA ZITADIRECTOR-GENERAL

12 OCTOBER 2010

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Structure of PresentationStructure of Presentation

Introductions Overview of Strategic Objectives 2009/10 Programme Performance

- 1 Administration- 2 Production and Resources Management- 3 Agriculture Support Services- 4 Trade and Agricultural Development- 5 Food Safety and Bio-security- 6 Forestry

Financials Summary

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INTRODUCTIONINTRODUCTION

Major national events were experienced during the Year under review and they impacted on the execution of departmental mandate:

- National Elections held during April 2009 and appointment of the new administration on 10 May 2009- The establishment of a a new department DAFF during July 2010- Endorsement of 5 priority areas for government informed

by the Election Manifesto:1. Creation of decent and sustainable livelihoods2. Education3. Health4. Crime Prevention5. Rural development, including land reform, and food

production and security

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INTRODUCTIONINTRODUCTION

Strategic priorities during 2009/10 that were linked to the 5 government priorities included the following:- Speeding up economic growth and transforming the

economy to create decent work and sustainable livelihoods

- Rolling out massive programme to build economic and social infrastructure

- Strengthening the skills and human resource base- Rolling out a comprehensive rural development strategy

linked to land and agrarian reform and food security- Pursuing the advancement of Africa, enhancing

international cooperation and ensuring that South Africa builds its competitiveness globally

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INTRODUCTION INTRODUCTION

The Establishment of a new Department of Agriculture, Forestry and Fisheries led to a major restructuring process that started in July 2009.Process was only concluded end of March 2010

The restructuring was only concluded during at the end of 2009/10 financial year due to the difficulties encountered with the transferring of Fisheries component from DEA

The development of a sector growth plan was initiated to speed up transformation of the sector, create conducive environment to enhance the contribution of the sector to economic development and achievement of government priorities

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PROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATION

Purpose:

The programme provides the department with strategic leadership and management, as well as overall administrative and performance oversight.

This includes overall departmental strategy development,

monitoring the implementation thereof, and overall administration and governance

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PROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONMeasurable objectives:

Improved service delivery-• By implementing coherent planning, monitoring and evaluation

systems;• Through structured partnerships with international stakeholders;• By developing communication strategies and plans for

programmes and projects;• By improving availability, accessibility and reliability of information

and communication technology (ICT) systems;• Through shared, accessible and centralised knowledge systems;

and• By developing and implementing coherent human and financial

resources policies in line with relevant national legislation

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PROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATION AchievementsAchievements

• On 31 March 2010, the post establishment stood at 3 307 posts

• Over the period under review the vacancy rate decreased from 17.0% to 14.8% and the turnover rate from 9.5% to 6.8%

• For the 2009/10 reporting period the Department obtained an unqualified audit report

• All National Macro-organisation of the State (NMOS) processes relating to the transfer of the forestry and fisheries functions with concomitant resources to the Department were concluded on 31 March 2010

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PROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATION Achievements:Achievements:

• Other outstanding matters relating to the transfer of the two functions are currently managed through agreed upon memoranda of understanding (MoUs) between DAFF and the relevant departments (DWA and DEA)

• MoUs with Namibia and China were concluded

• Work on the implementation of the agreement with China on the construction of an aquaculture centre in Garieb, Free State commenced during the year under review. The Free State Provincial Government is a major partner

• Respective Joint Management Committees with Namibia, Zimbabwe, Kenya and Swaziland were established

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Achievements:Achievements:

• MoU with FABI finalised (Tree Protection Co-operative Programme)• MoU signed with Forestry SA (partnership on SFM) and funds

transferred• Inputs submitted for the UNCCD and UNFCCC SB meetings and

participated in several SADC and International meetings and workshops

• Submission to FAO, of the final Country report towards Global Forest Resources Assessment (FRA 2010)

• Contributed to SADC Protocol on Forestry Implementation Strategy (draft)

• MoU with Swaziland on Cross border Fires and forestry related matters submitted to obtain Presidential Minute

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PROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATIONPROGRAMME 1: ADMINISTRATION

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PROGRAMME 2: PRODUCTION AND RESOURCES MANAGEMENT PROGRAMME 2: PRODUCTION AND RESOURCES MANAGEMENT

Purpose

• Promote agricultural productivity and profitability through identification of opportunities, sustainable use and protection of land, water and genetic resources

• Infrastructure development to ensure household food security

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PROGRAMME 2: PRODUCTION AND RESOURCES MANAGEMENTPROGRAMME 2: PRODUCTION AND RESOURCES MANAGEMENT

Measurable Objectives:

• Ensuring national food security• Creating an enabling environment for increased and

sustainable agriculture production through appropriate policies, legislation, norms and standards and techical guidelines

• Facilitate the development of agriculture infrastructure and the use of agriculture resources

• Other activities include auditing natural resources, controlling migratory pests, rehabilitating and protecting agricultural land

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Achievements:

• 50 new fruit farmers on 200ha were supported with 52 000 seedlings of mangoes, avocados, macadamia nuts and bananas which resulted in creating about 100 jobs

• 40 beef and 40 goats farmers were supported as new entrants in the animal improvement scheme

• Developed and distributed manuals for dairy farming, goat’s milk production, rural freshwater aquaculture, sheep production and veld care

• Trained extension officers in milch goat production• Undertaken a seed diversity fair to educate rural communities

about the value of indigenous plants and their associated indigenous language

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Achievements:

• Over 2000 export certificates were issued • Four food banks have been launched in Cape Town, Johannesburg,

Durban and Port Elizabeth and provide meals to about 84 800 individuals per day

• Agriculture land use zones were finalised in Gauteng and Limpopo provinces. A total of 61 unique zones in Gauteng and 64 unique zones in Limpopo were identified

• 1 019 709 ha of land reform farms were inspected and 264 602 ha were found to be under sustainable natural resource management practices

• Total of 14 042 beneficiaries on 748 compliant farms had adopted sustainable innovative technologies on Land Care programmes and land reform farms

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PROGRAMME 3: AGRICULTURE SUPPORT PROGRAMME 3: AGRICULTURE SUPPORT SERVICESSERVICESPROGRAMME 3: AGRICULTURE SUPPORT PROGRAMME 3: AGRICULTURE SUPPORT SERVICESSERVICES

Purpose::

• To manage and coordinate sectoral education and training, agricultural research and extension services;

• To manage agricultural risks and disaster management, promote BBBEE and provide post settlement support to emerging farmers;

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Measurable Objectives::

Provide support and ensure access to services forfarmers, agrarian reform beneficiaries, entrepreneurs and Agribusiness by:

• Increasing the number of financial institutions accredited in terms of Mafisa

• Providing industry-focused farmer training for beneficiaries annually over the medium term

• Improving the quality of extension services by increasing the number of extension officers enrolled in skills upgrading programme

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Achievements::

• 10 institutions accredited as per MAFISA, 8 fully operational and 2 awaiting final approval

• Curatorship model developed (and cabinet memo drafted) to assist agrarian farmers in distress

• 339 clients (emerging farmers and rural entrepreneurs) received financial support amounting to R19.7 million

• 10 state land lessees supported with infrastructure up to R1.6 million

• AgriBEE Sector Codes in the process of being gazetted

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Achievements::

• 612 Agribusinesses registered through DTI’s portal:• 299 are Exempted Micro Enterprises (EME’s) (48.8%)• 231 are Qualifying Small Enterprises (QSE’s) (37.7%)• 82 are Large Enterprises (13.5%)• Av. Black Ownership is 23% and Av. Black Women

Ownership is 10%• 250 direct permanent job opportunities created for Cooperative

administrators• 500 indirect job opportunities for members of the cooperatives

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Achievements::

• 55 advisories for risk and disaster management (extreme weather warnings) issues in the sector

• 8 National Awareness campaigns conducted on adaptation and mitigation options for climate change;

• 2732, 1244 hectares of state land was disposed;• 4 000 targeted farmers received assistance from disaster relief

scheme• 2 566 beneficiaries trained in commodity based mentorship

programs• 2 346 Extension personnel trained in various courses• 1 615 small stock farmers received targeted research support

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Achievements::

• Extension Recovery Plan for 2009/10 approved to support ICT equipment, recruit more personnel, upgrade qualifications and improve image of extension was implemented with all provinces;

• Research to provide technological and innovative solutions on sustainable natural resource management, livestock and crop production, and economic models was conducted and information disseminated;

• Farmers Green Book and Extension Management Diary were piloted in all provinces except for Gauteng and KZN.

• Framework Tracking System for public investment in agricultural research was approved for implementation.

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Achievements::

• Extension Recovery Plan for 2009/10 approved to support ICT equipment, recruit more personnel, upgrade qualifications and improve image of extension was implemented with all provinces;

• Research to provide technological and innovative solutions on sustainable natural resource management, livestock and crop production, and economic models was conducted and information disseminated;

• Farmers Green Book and Extension Management Diary were piloted in all provinces except for Gauteng and KZN.

• Framework Tracking System for public investment in agricultural research was approved for implementation.

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PROGRAMME 4: TRADE AND AGRICULTURAL PROGRAMME 4: TRADE AND AGRICULTURAL DEVELOPMENTDEVELOPMENTPROGRAMME 4: TRADE AND AGRICULTURAL PROGRAMME 4: TRADE AND AGRICULTURAL DEVELOPMENTDEVELOPMENT

Purpose::

• To facilitate market access for agricultural products national and internationally

• Provides agricultural economic and statistical services to support economic growth and development

• Monitors the economic performance of the sector

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• Increase the number of emerging black farmers trained in agriculture marketing annually

• Increase international market access for agricultural products by concluding negotiating positions annually

• Increased level of public and private investment in agricultural development by improving the knowledge base in agricultural economics

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Achievements::

• 12 monthly crop estimate reports and 4 quartely livestock estimates were released

• Monthly food security bulletins of South Africa were compiled ans submitted to the regional early warning system unit of SADC

• Four economic analysis and forecast reports were completed and published

• Statistics of fresh produce market were released• Trends in the agricultural sector 2008/09 was also released• Agricultural marketing policy was approved by DEXCO and

amendment of the Act is in progress• The Directory on trade data sources was completed and

published

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Achievements::

• Step by step export manual was completed and published• Contract agreement concluded and signed with International Trade

Center (UN) for training in export potential assessments• A second draft report was concluded on the impact assessment of SADC-

FTA and European FTA on the sector and reviewed by management• A feasibility report on the establishment of agricultural marketing

infrastructure for collation of fresh produce has been concluded• 7 reports on business intelligence and trade opportunities were

developed and published• Abstract on agricultural statistics for 2010 was published on DAFF

website• Six topical reports on recent developments in the sector and its impact

e.g on current account, declining contribution to GDP were completed

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PROGRAMME 5: FOOD AND BIO-PROGRAMME 5: FOOD AND BIO-SECURITYSECURITYPROGRAMME 5: FOOD AND BIO-PROGRAMME 5: FOOD AND BIO-SECURITYSECURITY

Purpose::

• To manage the risks associated with animal diseases, plant pests, food safety, genetically modified organisms (GMOs), and the registration of agrochemicals as well as enhance trade.

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• To access, improve and maintain domestic and international markets by ensuring compliance with plant and animal health measures, food safety measures, bio-safety regulations, and the effective regulation of agrochemicals

• To improve and maintain bio-security risk management systems• To implement initiatives such as awareness campaigns over the

medium term that will improve access to bio-security services for all beneficiaries

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Achievements::

• Training manuals in bio-security were developed and are used for training

• Completed food safety Regulations and Draft bill on compulsory community service for veterinarians

• Conducted several programmes to determine RSA freedom from porcine diseases; Industry assisted with samples and defrayed some costs

• Labs were assessed to ensure accessibility for emerging farmers: Stellenbosch lab accredited

• Successfully regulated imports, legislation of food safety, animal and plant health matters; supported export of fruit and vegetables valued at > R10 billion

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Achievements::

• 2 responses on Citrus Black Spot sent to EU Food & Veterinary Office; dealt with EU inspection visit

• 3 programmes: - Exotic fruit flies (1114 traps serviced monthly); - Citrus greening disease and - Grapevine Phytoplasma, • plus a delimiting survey for American Foulbrood disease of

honeybees• According to WTO SPS Agreement and international standard

setting bodies; national plant protection contact point ensures risk communication

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Achievements::

• Provided pest diagnostic services support regulatory services; provinces visited to inform emerging farmers and facilitate access for export purposes

• Various programmes implemented, some in collaboration with PDAs for awareness/ specific training/ advisory exercises at 6 projects and farmers’ days on food safety and bio-security

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PROGRAMME 6: FORESTRYPROGRAMME 6: FORESTRYPROGRAMME 6: FORESTRYPROGRAMME 6: FORESTRY Purpose::

• Ensure the sustainable management of the Department’s plantations, natural forests (indigenous forests) and woodlands to realise their social, environmental and economic benefit by continuously administering, implementing and enforcing the National Forests Act (1998) and the National Veld and Forest Fire Act (1998).

• Increase the contribution of the forestry sector to improving livelihoods by implementing the greening programme, including the Million Trees programme, and by establishing support mechanisms for participatory forest management and community forestry.

• Accelerate the transformation and growth of the forestry sector in line with the targets in the Forest Sector Charter by implementing the Charter.

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PROGRAMME 6: FORESTRYPROGRAMME 6: FORESTRYPROGRAMME 6: FORESTRYPROGRAMME 6: FORESTRY Measurable Objectives::• Ensuring Sustainable Management of All forests through

deployment of the NFA including compliance and enforcement of its provisions and related regulations and policies

• Reducing incidents of veld, forest and mountain fires through implementation and administration of the National Veld & Forest Fire Act, 1998 incl. policies and regulations supporting the legislation

• Improving sector skills through development and implementation of Sector Skills Plan for the Forest Sector

• Enhancing forestry awareness and information sharing thereby raising the profile of the Sector

• Increasing contribution of the Sector to government’s objective of eradicating poverty and developing sustainable communities

• Accelerating sector growth and transformation in line with the BBBEE Forest Sector Charter

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Achievements::

• Regulations for the NFA were gazetted (April ’09) and tabled in Parliament (Nov ’09)

• Proposed Amendments to NFA and NV&FFA submitted to DAFF Legal Services

• Forestry Roadmap 2030 developed and process for its integration into the Departmental Sector Plan initiated

• The following Strategies were developed:Forestry Sector SMME strategy (final draft)Integrated Forest Protection strategy (Inception Report) Sawlog strategy (draft) Forestry Research and Development strategy (draft)Medicinal Plants strategy (draft)

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PROGRAMME 6: FORESTRYPROGRAMME 6: FORESTRYPROGRAMME 6: FORESTRYPROGRAMME 6: FORESTRY

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Achievements::• External audits conducted on 11 Indigenous Forest estates• PCIS Manual (Sustainable Forest Management tool) completed• Fire Prohibitions Notices for both Summer and Winter rainfall

regions published• Admission of guilt fines (for NFA) approved by Regional Committee

of Senior Magistrates for the Western Cape• Policy Principles and Guidelines for control of development affecting

Natural Forests approved by DEXCO• 45 Fire Protection Associations (FPAs) registered ito NV&FFA and

performance of 30 existing FPAs assessed

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Achievements::• 315 licenses issued under NFA using the Forestry Licensing and

Tracking System (FORLATS)• Service Level Agreement signed between FIETA and WoF on basic

fire fighting in the Northern Cape (333 FPA members trained countrywide)

• National list of Protected Trees published through print and e-media• Champion Trees list published for public comment• Communication Strategy for NFDRS developed and discussed with

National Disaster Management Centre (NDMC) for implementation purposes

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Achievements::• 315 licenses issued under NFA using the Forestry Licensing and

Tracking System (FORLATS)• Service Level Agreement signed between FIETA and WoF on basic

fire fighting in the Northern Cape (333 FPA members trained countrywide)

• National list of Protected Trees published through print and e-media• Champion Trees list published for public comment• Communication Strategy for NFDRS developed and discussed with

National Disaster Management Centre (NDMC) for implementation purposes

• Report on Impact of Forestry on Poverty Alleviation submitted for design and layout

• Arbor Week messages reached about 11’020’462 people through print and electronic media

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Achievements::• 140 Forestry enterprise projects assisted• Approved National Afforestation strategy in place• 1’277’805 trees were planted as part of the Greening and 1 Million

Trees Programmes (2010 Greening Strategy with Implementation Plan in place)

• 5 000 Fire Act booklets, 5 000 Regulations booklets, 1 000 fire management posters printed and distributed and 10 Fire Awareness boards made and erected in the Eden District, Western Cape

• Declaration of the Kathu forest as 1st Protected Woodland forest type under NFA

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Achievements::• National Certification Standard developed (awaiting FSC Board’s

endorsement)• FPA Registration Management System redesigned on a

Microsoft.Net platform• Over R2001 million lease rentals collected (to be disbursed once

DL&RD processes re legitimate beneficiaries have been concluded)• Lease Compliance Audits done on all four Lease Agreements• Proclamation for transfer of administrative powers and functions

from DAFF Minister to Minister of Water Affairs and Environment signed

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Financial Statements:: • Vote 35

- Unqualified - Emphasis of matter Irregular expenditure

Fruitless and Wasteful expenditure - Other matters

Risk assessment Performance information

Content of strategic plan Internal Audit

Forestry assets

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FINANCIALSFINANCIALSFINANCIALSFINANCIALS

40404040

R’000

Main estimateAgriculture 2 792 759Forestry 529 922

3 322 681Plus: Adjustments estimate 441 119Total amount appropriated 3 763 800Less: Actual expenditure 3 728 377Variance 35 423

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ACTUAL SPENDINGACTUAL SPENDING

41414141

R’000

Underspending 35 423

Less: CSF claims 3 919

Foot and Mouth Disease Vaccine 8 000

Consultative Group on International Agricultural Research 3 710

Excellence Model: Upcoming farmers 3 000

Not spend by the Department 16 794

% of total appropriation 0,4

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ACTUAL SPENDINGACTUAL SPENDING

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Final Actual % VarianceAppropriation Expenditure SpentR’000 R’000

Administration 411 561 402 171 97.7 9 390

Production and Resources

Management 305 307 303 309 99.3 1 998

Agriculture Support

Services 2 001 421 1 997 751 99.8 3 670

Trade and Agricultural

Development 70 643 69 144 97.9 1 499

Food Safety and

Biosecurity 406 123 401 854 98.9 4 269

Forestry 568 745 554 148 97.4 14 957

3 763 800 3 728 377 99.1 35 423

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ACTUAL SPENDING PER PROGRAMMEACTUAL SPENDING PER PROGRAMME

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Final Actual % Variance

Appropriation Expenditure Spent

R’000 R’000

Current Payments

Compensation of employees 944 125 942 284 99.8 1 841

Goods and services 636 237 626 658 98.5 9 579

Interest and rent on land 782 751 96.0 31

Financial transactions in

assets and liabilities 486 474 97.5 12

Transfers and subsidies 2 066 910 2 049 098 99.1 17 812

Payments for capital assets 115 260 109 112 94.7 6 1483 763 800 3 728 377 99.1 35 423

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ACTUAL SPENDING PER ECONOMIC CLASSIFICATIONACTUAL SPENDING PER ECONOMIC CLASSIFICATION

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In terms of monthly reporting to the National Treasury

R’000 %

- Contracts allocated as follows:

Black enterprises 96 579 53,8

White woman-owned enterprises 897 0,5

Non-HDI enterprises 52 158 29,1

Black woman-owned enterprises 84 368 47,0

Total value of contracts 234 002

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PROCUREMENT: 2009/10PROCUREMENT: 2009/10

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THANK YOU

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11 11 presentation to the portfolio on agriculture, firestry and fisheries: daff annual report of...

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