PRESENTATION TO SELECT COMMITTEE

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NATIONAL DEVELOPMENT AGENCY
PRESENTATION TO SELECT COMMITTEE ON SOCIAL
SERVICES Godfrey Mokate Chief Executive
Officer National Development Agency 20 June 2006

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• STRUCTURE OF PRESENTATION

• BACKGROUND
• Formation
• Mandate

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• STRUCTURE OF PRESENTATION (continuation.)

• PERFORMANCE IMPACT
• Financial Allocations
• Impact on Poverty
• Grant Commitments
• Grant Disbursements
• Magnitude of Poverty

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• STRUCTURE OF PRESENTATION (continuation.)

• Development Needs of CBOs and NGOs
• Key Issues from 2005/6 Annual Report
• Organisational Challenges
• External Audit Issues
• Financial Highlights

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• STRUCTURE OF PRESENTATION

• LOOKING FORWARD NDA STRATEGY 2006/11
• Strategic Goals and Objectives
• Macro Indicators
• Business Model
• Balanced Scorecard

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BACKGROUND
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• FORMATION
• The NDA was
• Preceded by an interim agency, the TNDT,
  established in
• 1996.
• A product of social dialogue between state and
  CSOs.

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• Dialogue was necessitated by need to
• Cultivate a collaborative as opposed to
  adversarial
• relationship between government and civil
  society
• organisations.
• Respond to diminishing development resources for
  NGOs
• and CBOs as a result of bilateral relationship
  with
• international donors.
• Establish institutional mechanism for policy
  dialogue.
• Mitigate the impact of CSO braindrain to
  government.

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• NDA Mandate
• 1 )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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• 2) The secondary objects of the NDA (continue)
• 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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Grant Trends / Allocations to the NDA

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• NDA Impact on Poverty
• Since March 2000, the NDA has committed R640m 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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South African Government Grant Commitments2004/5

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South African Government Grant Commitments 2005/6

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Projects Disbursements

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The NDA definition of Poverty extends to the
following variables

• Income
• Employment
• Education
• Infrastructure
• Assets
• Access to social services

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Level of poverty

• The current estimates of poverty by HSRC show
  that the proportion of people living in poverty
  in South Africa is as follows-
• Approximately 57 of individuals in South Africa
  were living below the poverty income line in
  2001, unchanged from 1996.
• This translate into 26m people being classified
  as poor.

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Table 1. Poverty Distribution by Province
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Development Needs of CBOs and NGOs

• Strengthening of leadership, management and
  technical capacity to improve service delivery.
• Platform for policy dialogue to influence
  government development policy
• Funding to implement programmes that eradicate
  poverty and bridge the gap between first and
  second economy.

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Development Needs of CBOs and NGOs

• Information and knowledge sharing of best
  practice in development.
• Access to markets for income generating projects.
• Procurement opportunities from government.
• Support for community wide policy and advocacy
  initiatives.

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Key Issues from Unauditted 2005/6 Annual Report

• Goals, Objectives and Indicators
• The 2011 Strategic Plan with clear indicators for
  impact assessment, monitoring and evaluation.
• Organisational stability established and
  maintained through effective management of NDA
  risks.
• Profiling of NDA raised and its credibility
  improved.

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Continuation

• Projects management systems improved to clear
  existing payment backlogs.
• Support of NDA multi-year indicative programme by
  EC Delegation.
• Research to inform the development of poverty
  eradication strategy conducted and implemented.

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Continuation

• Corporate governance improved and delegations
  established
• Resource mobilisation strategy and plan developed
• NDA systems improved.

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Achievements Against Goals

• 2006 2011 Strategic Plan revised, completed and
  approved by the Minister of Social Development.
• Backlogs on labour and corporate governance cases
  addressed and resolved.
• Improved profile through strategic engagements
  with stakeholders and media.
• Projects Turn-Around time improved from six (6)
  to four (4) months

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Continuation

• Negotiation with European Commission and National
  Treasury currently underway.
• Research agenda has been defined.
• Corporate governance has improved through clear
  policies, procedures and delegation of authority.
• Research mobilisation strategy has been
  prioritised for current financial year.
• Business Process Mapping has been concluded with
  a to be model being designed.

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Achievements and Highlights1 April 2005 31
March 2006

• Appointment of a permanent CEO in June.
• Finalization of matters arising out of the
  forensic investigation.
• Grant funding commitment of R68.9m to income
  generating and food security projects.
• Participation in the National Program for
  Creation of Small Enterprises and Jobs in Second
  Economy ASGISA.
• Launch of Request for Proposals (RFP) for CSO
  Capacity Building.
• Finalisation of strategic plan 2006/11

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External Audit Issues

• Withdrawal of projects previously committed,
• Budget for 2005/2006
• Forensic investigation,
• Key reconciliations and
• Payroll reconciliation

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• Challenges
• Organisational instability in terms of labour
  relations.
• Backlogs in projects payments.
• Dependency on single source of funding.
• Unclear business model.
• Corporate governance.

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• Challenges (continuation)
• 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 allow responsiveness with
  regard to
• promoting social entrepreneurship - support
  to family led
• enterprises.

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• Looking forward NDA Strategy 2006/11

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NDAS STRATEGIC GOALS

• Organisational Transformation (internally
  focused)
• Partnering for Development (externally focused)
•   Resource Mobilisation for poverty eradication
  (externally focused)
• Community empowerment for sustainable development
  (externally focused)
• Communication of credible and relevant researched
  development information (both internally and
  externally focused)

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Macro Indicators Macro indicators speak to the
high-level, externally focused objectives that
will be achieved through implementation of NDAs
strategic goals as defined in the Organisation
Scorecard. The Macro indicators and associated
strategic goals are as follows 1)    Improved
coordination of resource allocation for poverty
eradication 2)    Improved economic
opportunities for communities in NDA targeted
localities      3)    Improved social empowerment
in NDA targeted localities          4)    Improved
capability of targeted CSOs in relation to
service delivery          5)     Increased
influence in development policy as it relates to
poverty eradication
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Questions and Comments
Thank you for your attention