An initiative for successful land reform, economic growth, job creation and

social cohesion.

WITZENBERG PALSPARTNERSHIPS IN AGRI LAND

SOLUTIONS

1

2

WITZENBERG AREA

3

SOCIO-ECONOMICS

4

Figure 1: Cumulative percentages by level of education for the urban and non-urban population,

2010

Non-urban % Urban % Total %

Employed 9806 86.99 10007 62.07 19813 72.32

Unemployed 82 0.73 982 6.09 1064 3.88

Discouraged work-seeker 9 0.08 220 1.36 229 0.84

Not economically active 1376 12.21 4914 30.48 6290 22.96

11273 100.00 16123 100.00 27396 100.00

Table 1: Employment amongst household heads in Witzenberg, 2010

Data were sourced largely from: Western Cape Government, 2013. Municipal economic review and outlook. Cape Town, Provincial Treasury. The data originate from Quantec

Research’s Regional data base.

WITZENBERG PALS: GOALS

1. The establishment of successful black farmers;

2. To involve the whole community in an inclusive process;

3. To extend the initiative to other areas and agri related industries;

4. To establish the Witzenberg Centre as “one stop shop”;

5. Focus on mentorships and training programmes.

5

THE WITZENBERG PROPOSAL FOR A VIBRANT, EQUITABLE AND

SUSTAINABLE RURAL COMMUNITY

1. 50 plus new farming units in Witzenberg with black

commercial farmers of these units.

2. Strategy to make existing black farmers successful.

3. Current LRAD projects improved or restructured.

4. Projects with livestock in the Ceres Karoo.

5. Training College for future black farmers.

6. Access to value chain prioritized.

7. Housing projects for farmworkers.

6

THE WITZENBERG PROPOSAL (continued)

8. Community projects.

9. Municipal livestock farms.

10.Educational projects – schools, crèches, after-care

11.Economic growth - packhouses, tourism, manufacturing.

12.Vuka Trust

13.Ceres Community Trust.

•Best practices regarding housing, facilities, labour

relations and a sustainable healthy environment.

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PALS FRAMEWORKA radical departure from past land reform in South Africa:

1. Participant commercial farmers donate 30% of the shares in the

project to the beneficiary farmer(s) to ensure that the latter have a

veto over all major decisions.

2. The relationship between the beneficiary and the partner farmer

gives the former better access to finance, and guarantees access to

markets.

3. The beneficiaries have an option to purchase all the shares.

8

PALS FRAMEWORK (continue)4. The Workers Trust receives at least 5% of profits for community

projects of their choice.

5. The beneficiary farmer is indemnified from debts of the new

venture while a minority shareholder.

6. The “one stop shop” provides a physical location where the

coordination, facilitation and mentoring functions can be

implemented.

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WITZENBERG PALS (NPC)CENTRE

CENTREPROJECTS

Planning & Drafting

Approvals

Implementation

PUBLIC RELATIONS AND MEDIA

Government

Departments

Community

WATER

Permits

Irrigation schemes

MONITORINGWATCHDOG

(Reports and financial statements)

Compliance

TRAINING AND SUPPORT

Youth

Mentors

College

FINANCE

Joint impact

POTENTIAL BLACK FARMERS

Screening

Monitor

Applications

Involve Government and stakeholders

COMMUNITY

Housing

Training

Youth

Jobs

Board of Directors and Managing Director.Members: Agri-Producers, Municipality, Stakeholders and Government Depts.Employees: Researchers, Administrators, Consultants, Secretarial

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PALS FOR SUCCESS4 SCENARIO’S

1.Private Commercial Land.

2.Privately Black owned land

3.Government owned land (PLAS or other)

4.LRAD schemes on private land.

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PALS SCENARIO 1• New privately purchased farm or sub-divided economic unit (Act

126/1993)

OPTION ON DAY 1 TO BLACK FARMERS TO ACQUIRE MAJORITY SHAREHOLDING

OPTION ON DAY 1 TO BLACK FARMERS TO ACQUIRE MAJORITY SHAREHOLDING

Commercial Farmer (Pty) Ltd

Commercial Farmer (Pty) Ltd

Black Farmer (Pty) Ltd

Black Farmer (Pty) Ltd

NEW FARM (PTY) LTD

NEW FARM (PTY) LTD

AGREEMENTS of Commercial Farmer

1.Access to value chain2.Mentoring3.Finances4.Business Plan

AGREEMENTS of Commercial Farmer

1.Access to value chain2.Mentoring3.Finances4.Business Plan

OPTIONFor majority to Black Farmer (Pty) Ltd

Initially majority but less than 50% when

successful

Initially 30% - 50% but later majority or all the

shares

WORKERSTRUST

Permanent employees to receive % of profit for projects

WORKERSTRUST

Permanent employees to receive % of profit for projects

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PALS SCENARIO 2 & 3

PRIVATELY BLACK OWNED LAND

Commercial FarmerCommercial Farmer Black FarmerBlack Farmer

NEW FARM (PTY) LTDNEW FARM (PTY) LTD

Black owned LandOr

Government owned Land

Black owned LandOr

Government owned Land

70%30%

Company can own or lease and farm black

owned land

Lease Agreement or Management Agreement

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PALS SCENARIO 4

LRAD SCHEMES

OPTION 1: Subdivide farm or farms or purchase new farm and re-structure to PALS with option for black farmers and pay out beneficiaries plus give new Workerstrust shareholding.

OPTION 2: Set up New Company for black farmers and assist with finance application to purchase shares of Workerstrust. Pay out beneficiaries and grant option to black farmer as per PALS structure.

WorkerstrustWorkerstrust Commercial FarmerCommercial Farmer

EXISTING OPERATIONS COMPANY AND LAND OWNER

EXISTING OPERATIONS COMPANY AND LAND OWNER

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ORGANIZATIONAL SUCCESS• Framework• Legal Agreements:

– Option– Financial– Shareholder– Sale of Shares– Mentorship– Lease and Management

• Good Corporate Governance– Directors

• PALS Centre– Watchdog Committee

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PERSONAL SUCCESS

• Mentorship• Partnerships• Training

– PALS Centre– Kouebokkeveld Training Centre– Commercial Farmer– Vuka Trust

• Leadership• Hard Work

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PALS THE BETTER ALTERNATIVE

Further 25 projects identified for implementation in 2015.

1. Job creation2. Investment3. Growth4. New Black Farmers5. Optimal use of capital of white farmers6. Optimal use of state’s capital7. Optimal use of external finance8. Resources – new resources developed9. International competitiveness10. Food security

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SUCCESS STARTS WITH OUR WAY OF THINKING

As Nelson Mandela said in his inaugural speech in 1994:

“Our greatest fear is not that we are inadequate. Our greatest fear is

that we are powerful beyond measure.”

Witzenberg PALS has only one agenda and that is to inspire the

community of Witzenberg to work together and give hope to our

country.

Inspire our country.

Thank youIzak StraussWitzenberg PALS 18