Budget Vote Presentation

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Budget Vote Presentation

• Rashida Issel
• Acting Chief Executive Officer
• National Development Agency
• 23 June 2009

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NDA Strategy (NDA ACT)

• The National Development Agency ( NDA) is a
  statutory organization, which was established by
  the National Development Agency Act ( Act No.108
  of 1998) in November 1998. The NDA is a public
  entity listed under schedule 3A of the Public
  Finance Management Act (PFMA) and reports to the
  Parliament of the Republic of South Africa
  through the Minister for Social Development and
  is mandated to carry out the following

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NDA Strategy (Mandate)

• Primary mandate
• To contribute towards the eradication of poverty
  and its causes by granting funds to civil society
  organizations for the purpose of
• Implementing development projects of poor
  communitiesand
• Strengthening the institutional capacity of other
  civil society organizations that provide services
  to poor communities.
• Secondary mandate
• To promote consultation, dialogue and sharing of
  development experience between civil society
  organizations and relevant organs of state,
  debate development policy and to
• Undertake research and publication aimed at
  providing the basis for development policy.
• Vision
• A developing society free from poverty
• MissionFacilitate development through targeted
  grant funding, research and strategic
  partnership.

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NDA Strategy

• Mandate
• Primary Mandate
• Distinguishing factor for the NDA is the
  interaction with CSOs.
• Funding through grant making.
• Strengthen and develop civil society.
• Identified types of CSOs think tank, lobbying
  and service delivery latter is
• the NDA focus group.
• Look at income generation projects and food
  security (ability to produce or buy your own
  food).
• Project selection must be focused and must be
  informed by research, government priority and
  provincial assessment

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NDA Strategy

• Mandate
• Secondary Mandate
• All decisions must be informed by relevant
• research.
• Debate to influence government policy.
• Interface between State and CSOs.
• Research by NDA should be commissioned
• research to address specific needs, and may be
• done internally or outsourced.

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NDA Strategy
The three year strategy approved by the NDA Board
in respect of the period 2009 to 2012 once again
has as its prime focus the mandate of poverty
alleviation however it also encompasses a
recognition of the financial constraints within
which the organisation operates. The strategy
includes 4 strategic goals
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NDA Strategy
Strategic Goal One Promote sustainable
development Purpose To contribute to the
eradication of poverty through grant funding and
resource mobilisation
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NDA Strategy
Strategic Goal One Outputs 1. Food security
projects funded 2. Income generating projects
funded 3. Targeted agricultural and
agri-business projects identified and
funded 4. Capacity building support to funded
projects
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NDA Strategy
Strategic Goal Two Promote organisational
sustainability, development practice and
excellence Purpose To develop additional
income streams to build and sustain the capacity
to enable us to operate efficiently and
effectively
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NDA Strategy
Strategic Goal Two Outputs 1. R 50 million
raised by 2012 in kind and cash in addition to
government grant 2. Repositioning of the
organisation 3. Vulnerable groups identified and
empowered 4. Reduce costs to achieve a 65
direct project funding 35 support and
administration costs split 5. Approved and
aligned organisational structure to
strategy 6. Best practice policies, procedures
and unit strategies 7. Unit strategies aligned
to NDA strategy 8. Compliance and good
governance 9. Living the NDA values
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NDA Strategy
Strategic Goal Three Promote interface between
CSOs, Research Institutions, Development
Practitioners and the State on development
issues Purpose To facilitate dialogue to
inform development policy and service delivery
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NDA Strategy

• Strategic Goal Three Outputs
• Sector relevant and recognised plan for dialogue
• Measure efficacy of dialogues facilitated on
• public policy, grant funding and service
  delivery
• issues  
• 3. Dialogues facilitated on relevant
  development
• issues

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NDA Strategy
Strategic Goal Four Facilitate research that
informs grant funding decisions, procedures and
development policy Purpose To facilitate
information and knowledge generation to
strengthen the development programming of the NDA
and informing development practice and policy
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NDA Strategy

• Strategic Goal Four Outputs
• 1. Functional database
• Functional resource centre
• Detailed reports of funded projects
• Sector specific studies.
• Documents produced and lessons shared from
• case studies to influence policy

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NDA Strategy (Grant Funding)

• The NDA receives an annual allocation from
  National Treasury through the National Department
  of Social Development.
• 65 of total allocation is allocated to grants
  for CSOs to implement poverty eradication
  programmes.
• The grant allocation is proportionally split
  amongst provinces using a pre-determined formula
  based on Statistics SA poverty indices.
• The biggest allocations historically have been to
  the following provinces
• Kwa-Zulu Natal
• Eastern Cape, and
• Limpopo
• Since 2007, the NDA took a strategic decision to
  increase baseline allocations to Free State,
  North West and Mpumalanga provinces.
• The graph in the next slide represent year on
  year global grant from the Department of Social
  Development to the NDA.

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NDA Strategy (Year on Year Allocation To The NDA)
2001/2 2001/2 2002/3 2002/3 2003/4 2003/4 2004/5 2004/5 2005/6 2005/6 2006/7 2006/7 2007/8 2007/8
Rm inc Rm incr. Rm incr. Rm incr Rm incr. Rm incr. Rm incr.
Grant 92.7 0 96.7 3.7 103.2 6.3 109 6 121.5 13.6 123.0 1.8 129.1 7.5
2008/9 2008/9
Rm incr.
136.2 7.5
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NDA Strategy (Grant Funding)

• NDA provides grants to CSOs to implement
  projects in income generation and food security
  sectors to eradicate poverty
• NDA grants funds to CSOs through two approaches,
  namely
• - Request for proposals( RFP)
• - Programme formulation(PF)
• Funds granted to CSOs are in line with PGDS,
  IDPs and government wide priorities

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NDA Strategy (Grant Commitments
2003/04 2007/08)
Province Number of Projects Approved Amount Committed per Province
Eastern Cape 75 R63, 044, 761
Free State 39 R33, 556, 572
Gauteng 42 R37, 064, 967
Kwa-Zulu Natal 41 R55, 871, 236
Limpopo 55 R64, 005, 406
Mpumalanga 49 R49, 600, 341
Northern Cape 30 R29,680, 671
North West 35 R37, 377, 934
Western Cape 39 R40, 871, 193
National 03 R8, 192, 510
TOTAL 408 R419, 265, 537
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NDA Strategy (Disbursement To
Projects 2004 2008)

• In 2003/4 financial year, the NDA disbursed
  R104.7m to funded projects
• In 2004/5 financial year, the NDA disbursed
  R90.1m to funded projects.
• In 2005/6 financial year, the NDA disbursed
  R55.6 m to funded projects.
• In 2006/7 financial year, the NDA disbursed
  R49.5m to funded projects.
• In 2007/8 financial year, the NDA disbursed
  R76.6m to funded projects
• In 2008/9 financial year, the NDA disbursed
  R85.8m to funded projects

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NDA Strategy (Capacity Building)

• Introduction
• The legislative mandate requires the NDA to
  strengthen the institutional capacity of Civil
  Society Organisations that provide services to
  the poor.
• The NDA has over the past 5 years up-scaled a
  programme of strengthening capacity of CSOs in
  the country. This has included capacity
  interventions in technical, management and
  leadership strengthening.
• Further, the NDA has strengthened NGO networks
  and consortia to provide coordination and voice
  for the poor on public policy matters.
• All 408 funded projects in the period under
  review have included a significant component of
  institutional capacity strengthening in programme
  implementation.
• In 2006/07, the NDA launched a capacity building
  programme for CSOs with an investment of R25.7m,
  working in partnership with universities and
  accredited service providers throughout the
  country

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NDA Strategy (Programme Design Of CSO-
Strengthening Programme)

• Purpose of CSO Strengthening Programme
• To strengthen the institutional capacity of
  grassroots organisations
• to deliver quality services and programmes
  to alleviate poverty.
• This programme is divided in three phases,
  namely
• Conducting Assessments
• Developing learning programs and materials
• Implementation of training, coaching, mentoring
  and support

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NDA Strategy (Why A Capacity Programme for CSOs)

• NGOs and CBOs weak institutional capacity does
  not facilitate effective service delivery at
  local level
• The social entrepreneurship in communities is not
  organized and nurtured through targeted capacity
  enhancement interventions.
• Institutional Capacity of NGOs, CBOs and
  co-operatives need to be strengthened to drive
  and complement the government wide programme of
  massifying community driven initiatives that
  create jobs in the second economy.
• Communities needs to be strengthened to engage
  effectively with public policy process.

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NDA Strategy (Grantmaking Performance Since
Inception)

• Since inception, in March 2000, the NDA has
  committed to projects in the following sectors
• economic development,
• food security,
• community health and
• education.
• This has benefited 417 500 direct households.
• Indirectly benefited 2 260 736 poor people.

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NDA Strategy (Achievements and
Highlights)

• 20 service providers were appointed in all nine
  provinces of South Africa
• 643 CSOs have directly benefited from capacity
  building strengthening interventions.
• 9 645 individuals have been trained in the
  following areas
• project management
• financial management,
• community organising
• resource mobilisation
• public policy analysis
• public participation and technical skills in
  specific areas such as agriculture and provision
  of water and sanitation

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NDA Strategy
Finances
The financial constraints within which the NDA is
operating have been seriously considered. During
the 2009/2010 FY the NDA will reach the position
where it will need to utilize contingency funds
(in addition to income grant and interest) to
meet operational costs and maintain grant funding
levels. This highlights the need for the NDA to
address this position in its strategy

• How many CSOs have
• applied for funding
• and been successful?

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NDA Strategy
Finances
There is a direct need for additional funding to
enable the NDA to further fulfil its
mandate. The NDA continues to utilise a limited
and agreed percentage of its government grant for
administrative expenses with the bulk being used
for poverty alleviation.

• How many CSOs have
• applied for funding
• and been successful?

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NDA Strategy
Finances
At present the NDA has executed the mandate
through the utilisation of the annual government
grant. The NDA Act specifically provides for the
NDA to raise funds from other sources. The NDA
has reached a level of maturity where it has now
positioned itself to commence with a systematic
fund raising initiative.

• How many CSOs have
• applied for funding
• and been successful?

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NDA Strategy

• The NDA is pursuing the raising of additional
  funds through the following
• initiatives
• Service level agreements with government
• departments to assist with programme
• implementation, monitoring and evaluation
• CSI programmes to assist corporate entities to
• comply with King III
• Commercial opportunities for the sale and
• marketing of NDA project products
• Commercial partnerships with service agreements
• for the sale of NDA services e.g. monitoring
  and
• evaluation, capacity building

• How many CSOs have
• applied for funding
• and been successful?

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NDA Strategy (Summary Budget per
Directorate)
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NDA Strategy (Summary Budget per
Directorate)
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NDA Strategy
To paraphrase the words of president Zuma- As you
would be aware, the fight against poverty remains
the cornerstone of our governments focus. For
as long as there are workers who struggle to feed
their families and who battle to find workFor
as long as there are communities without clean
water, decent shelter or proper sanitationFor
as long as there are rural dwellers unable to
make a decent living from the land on which they
live For as long as there are women who are
subjected to discrimination, exploitation or
abuseWe are not resting, and we will not
falter, in our drive to eradicate poverty.

• How many CSOs have
• applied for funding
• and been successful?

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Questions Comments

• THANK YOU.