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

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WITZENBERG PALS PARTNERSHIPS IN AGRI LAND
SOLUTIONS

• An initiative for successful land reform,
  economic growth, job creation and social cohesion.

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WITZENBERG AREA
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SOCIO-ECONOMICS
Figure 1 Cumulative percentages by level of
education for the urban and non-urban population,
2010
Table 1 Employment amongst household heads in
Witzenberg, 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
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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.

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THE WITZENBERG PROPOSAL FOR A VIBRANT, EQUITABLE
AND SUSTAINABLE RURAL COMMUNITY

• 50 plus new farming units in Witzenberg with
  black commercial farmers of these units.
• Strategy to make existing black farmers
  successful.
• Current LRAD projects improved or restructured.
• Projects with livestock in the Ceres Karoo.
• Training College for future black farmers.
• Access to value chain prioritized.
• Housing projects for farmworkers.

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• THE WITZENBERG PROPOSAL (continued)
• 8. Community projects.
• 9. Municipal livestock farms.
• Educational projects schools, crèches,
  after-care
• Economic growth - packhouses, tourism,
  manufacturing.
• Vuka Trust
• 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.

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PALS FRAMEWORK (continue)

• The Workers Trust receives at least 5 of profits
  for community projects of their choice.
• The beneficiary farmer is indemnified from debts
  of the new venture while a minority shareholder.
• 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
Board of Directors and Managing
Director. Members Agri-Producers, Municipality,
Stakeholders and Government Depts. Employees
Researchers, Administrators, Consultants,
Secretarial
CENTRE
WATER Permits Irrigation schemes
MONITORINGWATCHDOG (Reports and financial
statements) Compliance
TRAINING AND SUPPORT Youth Mentors College
PROJECTS Planning Drafting Approvals Implement
ation
PUBLIC RELATIONS AND MEDIA Government Departments
Community
FINANCE Joint impact
POTENTIAL BLACK FARMERS Screening Monitor Applica
tions Involve Government and stakeholders
COMMUNITY Housing Training Youth Jobs
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PALS FOR SUCCESS

• 4 SCENARIOS
• Private Commercial Land.
• Privately Black owned land
• Government owned land (PLAS or other)
• 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
Commercial Farmer (Pty) Ltd
Black Farmer (Pty) Ltd
OPTION For majority to Black Farmer (Pty) Ltd
Initially majority but less than 50 when
successful
Initially 30 - 50 but later majority or all
the shares
NEW FARM (PTY) LTD

• AGREEMENTS of Commercial Farmer
• Access to value chain
• Mentoring
• Finances
• Business Plan

WORKERSTRUST Permanent employees to receive
of profit for projects
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PALS SCENARIO 2 3PRIVATELY BLACK OWNED LAND

Commercial Farmer
Black Farmer
70
30
NEW FARM (PTY) LTD
Company can own or lease and farm black owned land
Lease Agreement or Management Agreement
Black owned Land Or Government owned Land
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PALS SCENARIO 4LRAD 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.

Commercial Farmer
Workerstrust
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.
• Job creation
• Investment
• Growth
• New Black Farmers
• Optimal use of capital of white farmers
• Optimal use of states capital
• Optimal use of external finance
• Resources new resources developed
• International competitiveness
• 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 you Izak Strauss Witzenberg PALS