Land reform project guide

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" width=30 BGCOLOR="#0066CC" TEXT="#080000"> <bR> </td> <td valign="top" width="100%" style=" border-left: 1px solid #3366CC;" BGCOLOR="#000066" TEXT="#F7F7FF"> <div> <B>Tulbagh Info Information</B></div> <div> Land reform project guide</div> <div> <TABLE BORDER="0" CELLPADDING="1" CELLSPACING="1" WIDTH="120" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER BGCOLOR=#0099CC HEIGHT= 15 ><NOBR><div> <A HREF="local_news.htm" TARGET="_top" TITLE="Tulbagh News Page 2"><U>Back to Local News</U></A></div> </NOBR></tD> </tR> </TABLE></div> <bR> <div> <IMG SRC="b7418650.jpg" border=0 width="280" height="101" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <bR> <div> CAPE WINELANDS AND OVERBERG REGIONAL OFFICE</div> <div> Private Bag X5069, 15 Market Street, STELLENBOSCH, 7599, Tel (021) 887 7448, Fax (021) 887 7510</div> <bR> <bR> <div> <B>FORMAT AND GUIDE TO THE COMPILATION OF A </B></div> <div> <B>BUSINESS PLAN FOR A LAND REFORM PROJECT</B></div> <bR> <bR> <div> The Department of Land Affairs requires a detailed project business plan in order for it to process a project funding application and assess its viability.  The plan should be in the language of choice of the applicants.  This plan can be compiled by the grant applicants or by an appointed design agent/ facilitator, on behalf of the applicants.  </div> <bR> <div> The role of the facilitator is to work closely with the applicants/ affected community to facilitate discussions, obtain information and, where possible, to reach agreement on a number of issues and details required by the Department of Land Affairs.  The facilitator should ensure that a participatory and inclusive methodology is used that involves all the potential beneficiaries and that the views and agreements reached reflect the interests, concerns and feelings of the entire group.  The facilitator should also ensure that the requirements of the Department are met, with specific reference and inclusion of the project management team process.</div> <bR> <div> The facilitator can be appointed by the Department of Land Affairs, and deliver services according to a specific Terms of Reference (TOR), with the approval of the applicants/ beneficiary group <U>or</U> by the beneficiary group.  In the case of appointment of a facilitator by the Department, payment for the facilitation services will be made from the Planning Grant.  Should the facilitator be appointed directly by the applicants, the applicants will be responsible for payment of these services <I>(any agreements between the beneficiary group and a service provider is not binding on the Department)</I>.  </div> <bR> <div> The narrative business plan not only serves the purpose for approval of funding, but should also be a planning guide/ blueprint to the running of the farm/ enterprise operation and its resources.  While a business plan is divided into various sections, all the elements are inter-related and draw upon one another in the construction of a well thought through plan.  It is important that the information contained in each section of the plan is concise, clear, can be verified and provide a measure for evaluating results.  </div> <bR> <div> The range of issues to be dealt with by the facilitator, which the Business Plan/ funding application must communicate and report on, is listed in the format below.</div> <bR> <div> Please note that this is a generic model suitable for land reform projects and should be modified within this framework to suit the project specific needs and circumstances.</div> <bR> <div> <B>TITLE PAGE</B></div> <div> The title page should contain the document title, name of the project, farm or business, person(s) who have prepared the plan, submission date, and name of District Assessment Committee (DAC), Departmental Reference Number, approval date and signature for DAC chairperson.</div> <bR> <div> <B>EXECUTIVE SUMMARY</B></div> <div> The executive summary provides a concise and clear overview of the business plan and should include:</div> <bR> <div> Project name and location/ address;</div> <div> Contact details of applicant and facilitator;</div> <div> Paragraph about the project nature, goals and objectives;</div> <div> Grant implications;</div> <div> Highlights of the business plan.</div> <bR> <div> <B>TABLE OF CONTENTS</B></div> <div> The table of contents should include section titles and page numbers for quick reference.  A list of numbered appendices should also be provided.  </div> <bR> <div> <B>1.     INTRODUCTION AND BACKGROUND</B></div> <bR> <div> The background should be viewed as a short introduction to the project indicating why the application should be considered.  Reading it, one should understand what the application is about and what still needs to be achieved at the end of the facilitation period in order to implement the project.  The background should include:</div> <bR> <div> Short background to the application highlighting the need for assistance from the Department;</div> <div> Short introduction of the applicants, who they are, why they are interested in the doing the project, their skills and knowledge;</div> <div> Description of their current situation and where they live and work;</div> <div> Explain the nature and broad objectives of the project and what the funding will be utilised for (reason for application);</div> <div> How the project will develop and encourage the self-reliance of the community/ applicants;</div> <div> Affidavit from the applicants that no grants were previously received;</div> <div> Confirmation of project registration at the District Assessment Committee (attach the minutes of the meeting);</div> <div> Introduction and role of design agent/ facilitator (attach letter of appointment of facilitator).</div> <bR> <bR> <div> <B>2.     APPLICANTS PROFILE</B></div> <bR> <div> At the end of the facilitation period the community/ applicants should have finalised their beneficiary list, completed the Department's application form accurately, and signed the affidavit form.  The eligibility for the grant must be verified.  It is the facilitator's role is to assist the community/applicants to achieve this and to provide the Department with an assurance that the completed beneficiary list is legitimate and accurate (note also that the facilitator must ensure that all individuals have completed an affidavit which must then be signed by a Commissioner of Oaths) where required.  </div> <bR> <div> The business plan should thus include:</div> <bR> <div> Composition of the group:  provide detail of applicants and other shareholders (in the case of equity project);</div> <div> Number of individuals or families involved; - detail on women, youth, disabled;</div> <div> Summary of applicant's profile:</div> <bR> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="672" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 19 WIDTH="616"><div> TABLE 1:  SUMMARY OF APPLICANT'S PROFILE</div> </tD> <tD VALIGN=CENTER WIDTH="41"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="41" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="684" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 56 ><NOBR><div> RACE </div> <div>         &</div> <div>           GENDER</div> </NOBR></tD> <tD VALIGN=CENTER><NOBR><div> NUMBER OF</div> <div> ADULTS</div> </NOBR></tD> <tD VALIGN=CENTER WIDTH="130"><div> NUMBER OF</div> <div> YOUTH</div> </tD> <tD VALIGN=CENTER><NOBR><div> NUMBER OF</div> <div> DISABLED</div> </NOBR></tD> <tD VALIGN=CENTER><NOBR><div> NUMBER OF</div> <div> PENSIONERS</div> </NOBR></tD> <tD VALIGN=BOTTOM WIDTH="41"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="56" ALIGN="bottom" WIDTH="41" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="650" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 19 WIDTH="118"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="118" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><div> M</div> </tD> <tD VALIGN=CENTER WIDTH="58"><div> F</div> </tD> <tD VALIGN=CENTER WIDTH="64"><div> M</div> </tD> <tD VALIGN=CENTER WIDTH="64"><div> F</div> </tD> <tD VALIGN=CENTER WIDTH="58"><div> M</div> </tD> <tD VALIGN=CENTER WIDTH="58"><div> F</div> </tD> <tD VALIGN=CENTER WIDTH="64"><div> M</div> </tD> <tD VALIGN=CENTER WIDTH="58"><div> F</div> </tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="650" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 19 WIDTH="118"><div> AFRICAN</div> </tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="650" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 19 WIDTH="118"><div> COLOURED</div> </tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="650" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 19 WIDTH="118"><div> INDIAN</div> </tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="650" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 19 WIDTH="118"><div> TOTAL</div> </tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="64"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="64" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="58"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="58" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="638" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 19 ><NOBR><div> GRAND TOTAL</div> </NOBR></tD> <tD VALIGN=CENTER WIDTH="118"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="118" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="130"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="130" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="118"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="118" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=CENTER WIDTH="124"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="124" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <bR> <div> Complete list of applicants, with Identity Numbers, must be attached as an annexure. </div> <bR> <div> <B>3.     PARTICIPATION AND ROLE PLAYER IDENTIFICATION</B></div> <bR> <div> <B>Facilitation of Project Model/ Idea</B></div> <bR> <div> The business plan must include the facilitation report (to be attached as an annexure) which provides evidence in the form of minutes/ presentations and feedback, attendance registers, etc of meetings/ workshops held with applicants and relevant role-players about the project plan, processes, or any other relevant input.  At these facilitation sessions the following information should be established:</div> <bR> <bR> <bR> <div> <B>Participation of women's, youth and the disabled (if any)</B></div> <bR> <div> The facilitator should ensure the involvement, empowerment and participation of women, the youth as well as the disabled (if any) in the facilitation process.  The business plan should include:</div> <bR> <div> Number of adult women with/ out dependants participating in the project;</div> <div> Describe the participation and active role of women, youth and the disabled in the future of project;</div> <div> What changes will the project have on the position of women, youth and the disabled.</div> <bR> <div> <B>Involvement of the broader community/ applicants</B></div> <bR> <div> Mention the organisational structures operating within the community/ amongst the applicants;</div> <div> Describe the level of community/ applicant's involvement with specific reference to preliminary planning.</div> <bR> <div> <B>Involvement of the equity partner in the case of Farmworker Equity Scheme Projects</B></div> <bR> <div>  Provide detail and background of the equity partner in the venture;</div> <div>  Describe the role and involvement of equity partner in the venture.</div> <bR> <div> <B>Role player identification</B></div> <bR> <div> The facilitator, together with the community/applicants should identify and involve the major role players/ stakeholders in the project and should include as attachments:</div> <bR> <div> Confirmation of support for the project;</div> <div> Role and function of role-players/ stakeholders during planning and in the future of the project;</div> <div> Likely objections to the proposed project e.g. from tribes, claimants in terms of the Restitution of Land Rights Act; local authorities; provincial departments, etc;</div> <div> Likely views of adjoining property owners or occupants;</div> <div> Whether the proposed project will contribute to the social sustain ability of the applicants and the broader community;</div> <div> What services are needed by the project and whether the relevant Provincial Government/Local Authorities are likely to be in a position to deliver these services.</div> <bR> <div> Role-players could include Department of Land Affairs, Department of Agriculture, Local Government, Department of Labour, Department of Water Affairs and Forestry, Department of Environmental Affairs and Tourism, participants (applicants and partners), third-party investors, financial institutions, etc.</div> <bR> <div> List professional and advisory support:</div> <div> Trustees/ Board of Directors/ </div> <div> Management Advisory Board</div> <div> Lawyer</div> <div> Accountant</div> <div> Insurance</div> <div> Banker</div> <div> Consultant </div> <div> Mentor</div> <div> Key advisors</div> <bR> <div> <B>Training needs of the community/ applicants</B></div> <bR> <div> Identify what training/ capacity building needs might be required during the planning and implementation stages of the project;</div> <div> Identify suitable training programmes;</div> <div> Establish and budget for costs involved in training;</div> <div> Attach a training schedule to the plan.</div> <bR> <div> <B>Mentorship and Capacity Transformation</B></div> <bR> <div> Identify institution(s)/ person(s) to provide the project with support and advice on a regular basis/ per request, as a mentor or as a consultant during the implementation of the project.  Specify type and cost involved.  The cost must be reflected in the project budget.  </div> <div> Ensure that the necessary agreements/ mentorship or capacity transformation plans are drafted and ready for implementation (attach to the plan).</div> <bR> <div> <B>4.     LAND IDENTIFICATION</B></div> <bR> <div> The identification of suitable land is a pivotal aspect of any land reform project and this in section adherence should be paid to technical detail where applicable.</div> <bR> <div> <B>Description of the identified agricultural land and resource inventory</B></div> <bR> <div> Topography and in which vicinity is the land situated;</div> <div> Physical location (where the land is situated - magisterial district; distance to access roads; etc);</div> <div> Attach farm map indicating extent and location;</div> <div> Name(s) of farm or land parcel(s) involved;</div> <div> Hectares involved - extent;</div> <div> Present occupant(s)</div> <div> Description (list) of existing land use and facilities (infrastructure, equipment, materials, supplies and implements);</div> <div> Soil types/ survey and soil analysis (attach reports in this regard);</div> <div> Detail regarding type of farming according to soil potential and water availability:  crops, pastures, livestock, other production types (attach reports in this regard);</div> <div> Official proof of available water - allocations and in which seasons available;</div> <div> Test results that confirm amount of water (eg bore-holes);</div> <div> Test results that confirm quality of water;</div> <div> Are any restricting policies or legislation governing conservation, recreation or other land uses applicable.</div> <bR> <bR> <bR> <bR> <div> <B>5.     PROPOSED LAND USE</B></div> <bR> <div> In this section of the business plan, detailed information about the discussions and findings on the proposed land use and its viability should be provided.</div> <bR> <div> <B>Land purchase agreements</B></div> <bR> <div> Copy of Title Deed;</div> <div> Deed of sale;</div> <div> Confirmation of valuation of property/ assets;</div> <div> Plan for subdivision.</div> <bR> <div> <B>Viable Production Strategy/ Operational Plan</B></div> <bR> <div> Provide a production plan/ farming plan with detail of each production/ farming type and procedure with schedules, resources available/ required and the utilisation thereof, establishment/ development costs, planned extensions, methods used, products, labour required, etc (provide proof where required);</div> <div> Give an indication of productive potential of plan;</div> <div> Confirmation of the conclusions of the viability study of the productive potential and suitability of the land;</div> <div> What feasible improvements would be needed to enhance the productive value of the land;</div> <div> Attach a production plan/ farming plan and relate it to an attached budget and cash flow projection (3 -5 years);</div> <div> What will be the project's contribution to other economic activities that the applicants may be involved in.</div> <bR> <div> <B>Environmental Management Plan</B></div> <bR> <div> Outline environmental concerns, how they will be addressed, and at what cost; </div> <div> Outline the environmental approvals that are required for the business, and when they will be obtained  (only if applicable);</div> <div> Describe the strategies in place, such as insurance and disaster plans, to prevent environmental disaster (only if applicable); </div> <div> Describe consultation and community support for business and business-site selection (where applicable);</div> <div> Develop an environmental plan that will address the soil and water conservation needs of the farm and considers forest, wildlife, and other natural resources that may be affected by the farm.  Take cognizance of relevant legislation in this regard.</div> <bR> <div> <B>Suitability for settlement</B></div> <bR> <div> If settlement (housing) is also envisaged, is the land and initiative suitable? (E.g. access to infrastructure; ground conditions for construction, etc.);</div> <div> Can the land support the number of households if it is to be acquired for both settlement and productive purposes;</div> <div> Include strategy for acquisition of home-ownership with detail of availability of finances, services, etc.</div> <bR> <div> <B>Marketing </B></div> <bR> <div> Explain how product will be marketed considering the five Ps: product, place, price, promotion, people; </div> <div> Provide information on the target market, including established and potential market opportunities or niche markets, customer characteristics and demographics, market performance, growth trends, factors affecting purchaser decisions, and market geographic area;</div> <div> Describe the competition, including the number of competitors, their strengths and weaknesses, their costs and prices, potential competitor reaction to new market entry, the potential for substitutes, and barriers to entry;</div> <div> Describe the product/service being offered, its selling features, key product attributes, differentiating factors and quality, storage life, selling arrangements, contracts, potential alliances, service policies, and warranties;</div> <div> Describe how the product will be distributed (e.g., direct marketing, wholesaler, Web site, sales representative).</div> <bR> <div> <B>Financial Plan - Statements and Projections per Enterprise</B></div> <bR> <div> Identify the financial requirements and projections, based on the production strategy, to implement the plan;</div> <div> Outline business assumptions on which the financial plan is based, including quantities sold, price, cost of goods sold, operating expenses, salaries, interest rates, risk, profitability, depreciation, income taxes, and regulatory costs;</div> <div> Include only a summary of the financial statements and projections in the body of the business plan and attach the detailed analysis;</div> <div> Include operating budgets for each enterprise, cash flow projections, income statements (and pro forma balance for at least three years (recommended six years);</div> <div> Provide monthly projected figures for the first and second year, quarterly figures for years three and four and annual projections thereafter;</div> <div> Where applicable, provide: </div> <div> historical financial performance as shown by at least the last three sets of audited annual financial statements and up to date management accounts comprising income statements (monthly and year-to-date), balance sheets, and debtors and creditors age analysis </div> <div> costing methodology employed, or to be employed, and detailed costing giving a full analysis of cost of sales </div> <div> pricing policies giving a full analysis of theoretical and actual mark up and gross profit percentages</div> <div> rebates, discount structures and terms offered to and received from customers and suppliers respectively </div> <div> break-even and sensitivity analysis </div> <div> summary of overdraft and factoring facilities (bank, limit, security and interest rate) and medium and long term loans </div> <div> Ensure that your financial projections agree with any other statements in the business plan (for example, costs involved in your proposed marketing strategy);</div> <div> Detail on credit policies and management of accounts;</div> <div> Provide detail of a financial and administration record-keeping system.</div> <bR> <div> In the case of Farmworker Equity Scheme projects, the following must be provided as well for a complete survey of financial information that would be used to assess the enterprise.  </div> <bR> <div> Farmworker Equity Scheme:  Financial information required:</div> <bR> <div> In the case of an existing enterprise, audited financial statements should be made available for at least the previous five years;</div> <div> If the enterprise has been in business for less than five years, the available audited financial statements should be submitted;</div> <div> The financial analysis should contain:</div> <div> a projected cash flow done on a monthly basis for the first year,</div> <div> a projected cash flow done on an annual basis for the first six years,</div> <div> a projected income statement done on annual basis for the first six years,</div> <div> a projected balance statement done on an annual basis for the first six years;</div> <div> Projections should be done based on the information contained in the audited financial statements;</div> <div> A performance-based agreement should be concluded with the equity partners to ensure that realistic business plans are developed for the enterprise and that the projections in the business plans can be reached;</div> <div> Due diligence:  A due diligence report may be commissioned to verify the information provided if in the opinion of the Project Manager this is required.  Where there are contradictory opinions as to the financial status of an enterprise, a due diligence would definitely be commissioned;  It is especially important to verify information in projects where the sole shareholders are the existing farmer and their farm workers.  Where bank loans or third party commercial investors are involved, this may be less of a requirement as both financial institutions and commercial investors will analyse financial information;</div> <div> Balance sheet:  The balance sheet provides a strong indication of the financial strength of the business.  The following features will be assessed:  The balance sheet must lead on from the previous year's financial information, The hard assets (equipment and machinery included) must be accurately valued to reflect their market value, The liabilities must all be declared and the owner must sign a legally binding disclaimer for any undeclared debt, The Capital Ratio also referred to as the Solvency Ratio (Total Assets: Total Liabilities) should not be less than 2:1 i.e. R2 worth of assets for every R1 of debt, ideally it should be better than 3:1, The Liquidity Ratio also referred to as the Current Ratio (preferably extracted from current financial information) (Current Assets: Current Liabilities) should not be less that 2:1, Acid Test Ratio (Cash on Hand: Current Liabilities) should not be less than 1:1; </div> <div> Income Statement:  The assumptions used in the projections of income must be well supported. Experience has shown that information on projected income is the aspect that is most likely to be over-estimated in these projects and extremely conservative information on income should be used.  A sensitivity analysis should be conducted to determine the potential influence of price declines in products and increases in operational costs and contingency plans should be provided,  Yield data should be based on past performance. If it is a new crop, caution should be exercised in projections and projected yields should be comparable to yields obtained in other areas, Price predictions should be supported by market information indicating which factors influence the price and the likelihood of current trends prevailing. Factors that may warrant consideration include other sources of supply, competing products, government protection, exchange rates, seasonality of supply, etc, Operational costs should be calculated on a zero-based approach.  The quantity and the cost of each input should be determined and these costs can then be compared to the industry's norms to ensure that they are reasonably accurate;</div> <div> Measures of Profitability:  A number of profitability measures exist which may be used:  Return on assets/investment: Annual pre-tax profits divided by the value of all assets. This is an indicator of the profits made in a specific period as a percentage of capital used during the same period to produce the profits;  Return on equity: Annual profits divided by the value of equity.  Equity includes the issued share capital, reserves and share premium account. If the return on equity is larger than the cost of capital as determined by real interest rates, a person should be able to borrow and afford repayment of debt;  The return on equity should be larger that the return on assets/investment;  Long term return: The long-term return of the enterprise is determined by the Net Present Value and Internal Rate of Return. The Net Present Value is determined by discounting the net cash flow (income minus expenditure including inflation) for each year of the project and provides an indication of the value of the project in current values. A positive Net Present Value is required at a discount rate and an acceptable discount rate, either reflective of current real interest rates or the prevailing return on capital in the specific industry, should be used.  The Internal Rate of Return is the rate of discount at which the Net Present Value is zero. The Internal Rate of Return should at least be equal to current real interest rates or the prevailing return on capital in the specific industry and preferably higher;</div> <div> Risk management:  There are essentially two types of financial risk that influence the profitability of Farm Worker Equity Schemes. These are income and financial risk:  Income risk:  Income risk refers to the variability in the income that the enterprise receives from production. This is linked to variation in yield, price and production costs. Farmers have very little control over factors such as the weather and other external factors (pests and diseases) that are major determinants of yield.  Prices are set in the market and as South African agriculture moves increasingly into an open market, farmers have little control over prices. The only factor that the farmer can control to some extent is production costs.  </div> <div> The cash flow, income statements and balance sheet must be assessed during a sensitivity analysis. A sensitivity analysis reduces the yield and the prices and increases the various operational costs by a fixed percentage, one at a time. The effect of these changes on the profit and other ratios can be assessed and it can be determined what factors the business is most sensitive to.  Should the factor that the business is most sensitive to be particularly volatile, the business is more risky than where the most sensitive factor is unlikely to display uncontrolled change. The sensitivity also indicates which elements of the business require the most risk management. One should also assess the probability of fluctuations occurring in the market, the more fluctuations an enterprise may be expected to confront, the more risky the enterprise.</div> <div> Insurance policies may be taken out to cover for crops and stud livestock.  However, the potential benefits of the insurance must be carefully considered as the premiums often outweigh the benefits. Some farm enterprises may prefer self-insurances where the equivalent amount to premiums are invested to cover unforeseen circumstances. This practice will put the enterprise at risk until sufficient savings have been made to cover eventualities.</div> <div> Crop diversification is another method to reduce risk by ensuring that at least one enterprise is offering a good income through yielding well and good prices.  Linear programming methodologies may be used to determine the mix of enterprises that offer the highest return at the lowest risk. To be reasonably accurate, at least six years of yield and price data are required.</div> <div> Diversification is only appropriate if:  it fits into the management and asset structure of the business;  the crops have different growth requirements i.e. in a drought one crop will still yield well; and if the products tend to work contrarily i.e. if one crops price is high, the other tends to be low and vice versa.</div> <div> Futures and forward contracts. A futures or forward contract occurs where the output of an enterprise is sold ahead of its production. It therefore involves the producer selling the crop to a buyer at a mutually agreed price at the beginning of the planting season for delivery and payment at the end of the harvesting season. This strategy is appropriate where the price received for the produce is controlled by external factors and there is a buyer who is willing to enter in a contract.  It may be more appropriate for the producer to agree to sell only a portion of their produce at a price that will cover all operating expenses in this way. This reduces the risk of loss in a falling market but sacrifices profit in a rising market.</div> <div> Financial risk:  Financial risk is the risk associated with the funding of the enterprise and as farming requires large-scale capital investments, borrowing is nearly inevitable. The higher the level of borrowing the higher the financial risk faced by the farmer. If an enterprise is highly geared, its debt obligations will form a major part of it's net farm income and it will be particularly vulnerable to both increases in the interest rates and reductions in farm income.  The Debt Ratio (Capital Ratio) which is Total Liabilities: Total Assets should not be less than 1:2 and ideally better than 1:3. This is an indicator of the long-term sustainability of the enterprise as well as its exposure to fluctuating interest rates. The Debt Ratio measures the proportion of total capital that is provided by external creditors;  The enterprise can enter into a fixed or capped interest rate with the bank. This will remove the risk of higher interest rates, but the enterprise may have to forgo profits is interest rates decline below the capped rate;</div> <div> Tax plan:  The enterprise should be structured in such a manner as to be tax efficient and a tax plan should be drawn up in this regard.  Institutional arrangements that are tax efficient should be considered;</div> <div> Marketing plan:  A marketing plan should exist for the products of the enterprise indicating the existing and potential markets both domestic and internationally. An analysis of the current trends in marketing of the specific products should be provided.  </div> <div> Short term cash expectations of beneficiaries:  Where long periods are required for expected returns to materialise, visible short-term benefits should be incorporated into the business plans, These may be related to working conditions e.g. improved housing, It may take the form of discretionary dividends. The articles of association should stipulate that the company may declare discretionary dividends. The directors must then decide whether to declare such dividends and to which shareholders it should be allocated, If an interest-bearing debenture is issued, the interest accruing to the land reform beneficiaries' legal entity could also be used to meet short- term financial requirements, Another alternative would be to create a profit-sharing scheme where the beneficiaries would have an enforceable right to a share of the profits before dividends are declared or re-investment decisions are taken, Alternatively the land reform beneficiaries can also be allowed to liquidate their capital growth. This mechanisms allows the worker participants to value their percentage of the appreciation of the farm and have it paid out in the form of dividends. Unrealised appreciation on fixed assets may be distributed by way of dividend provided: the articles of association authorise such a distribution; the appreciation is of a permanent nature; and the valuation resulting in the surplus has been made in good faith by competent valuers.</div> <bR> <div> <B>Human Resources</B></div> <bR> <div> Provide a proposed organisational chart (diagram of the personnel structure), an employee plan (number of employees required, hiring procedures, qualifications, etc), job descriptions of key positions, roles/ responsibilities/ authority of management and employees (lines of authority and discharge of duties) of the project/ farm;</div> <div> Comment on the compensation and benefits of employees:  method of pay, amount of pay, incentives, employment contracts (ensure contracts are understood and signed);</div> <div> Describe any human resource issues facing the project/ business and how it will be addressed;</div> <div> List owner(s)/ manager(s) skills and background in terms of experience, skills and track record;</div> <div> List labour and training goals for employees, levels of skill, training assistance and human resource development programmes;</div> <bR> <div> <B>6.  LAND MANAGEMENT AND TENURE ARRANGEMENTS</B></div> <bR> <div> The business plan should contain the discussions and preferences of the community/ applicants regarding how the project will be managed and what tenure arrangements are envisaged and/ or the facilitator's assessment of the steps required in order finalising these issues.</div> <bR> <div> <B>Farm/ Project Business Structure</B></div> <bR> <div> The farm/ project can be structured as a sole proprietorship, business trust, shareholding/ partnership, corporation, or any other type of businesses long as the following concerns are addressed and any draft agreements in this regard are attached:</div> <bR> <div> Land ownership structure (deed/ statutes)</div> <div> Duration of business structure/ entity agreement </div> <div> Criteria/ principles for participation</div> <div> Contributions of each participant </div> <div> Description of exit and entry strategies/ methods which considers the following:</div> <bR> <div> Membership of the beneficiaries' legal entity is restricted to persons actively involved in the project. A probation period is required before a person may apply to participate.</div> <bR> <div> A decision must be made whether land reform beneficiaries can have unequal shares e.g. increase individual shareholding over time through purchasing of additional shares or converting bonuses into shares. If land reform beneficiaries are allowed to increase their shareholding, an investment cap would be required to prevent one person from holding more than an agreed percentage of the beneficiaries' share holding. Voting rights should be structured to accommodate unequal shareholding.</div> <bR> <div> The participant must be in a position to realise a fair value for their investment and exit mechanisms should be clearly stipulated. Restrictions may apply. A moratorium should be placed on the redemption of investment for an initial period in order to prevent a run on the land reform beneficiaries' entity. This can be a period of one to five years. Participants could be allowed earlier exit on condition that they use the money to acquire land or and interest in land (enter another scheme).</div> <div> Description of how profits are shared</div> <div> Responsibilities of each participant </div> <div> Communication channels and frequency of communication to each participant</div> <div> Description of how business organization could be terminated, if necessary </div> <bR> <div> In the case of Farmworker Equity Scheme projects, the following considerations for shareholding must be addressed:</div> <bR> <div> The total value of the beneficiaries' contribution should be taken into account.  This need not only relate to the grant funding, but may include factors such as access to additional water rights, access to funding from financial institutions at a lower interest rate or new marketing contracts based on the existence of the Equity Scheme (ethical labour practices).</div> <bR> <div> Arrangements should be put into place if the original share holding of land reform beneficiaries, particularly if it is small, to enable the land reform beneficiaries to increase their share holding in time. This would typically involve a share ware-housing arrangement where a third party investor purchases shares with the specific aim that the beneficiaries' legal entity will buy-out this shareholder in time. </div> <bR> <div> The shareholders agreement should stipulate that the beneficiaries' share may not be diluted by the issuing of further shares in the enterprise to third parties unless such a decision is made based on consensus between the existing shareholders as to both the number and value of new shares to be issued.</div> <bR> <div> Measures should be considered to protect the investment of the beneficiaries. One option may be the issuing of preferential shares of some type to the beneficiaries' legal entity. These may be preferential for a limited period of time to allow the enterprise to start producing at scale. The option of issuing a large quantity of smaller shares could also be used to allow participants to enter schemes gradually based on the actual performance of the enterprise.</div> <bR> <div> In terms of decision-making, the participants should obtain a say in the management of the farm by means of a seat on the Board of Directors even if their share holding does not warrant this. Training should be provided to Directors and Trustees to enable them to fulfil their obligations and participate constructively in decision-making.</div> <bR> <div> In order to prevent manipulation of the decision-making process and to ensure actual transfer of skills, the majority of trustees of the land reform beneficiaries trust, for example, (if one exists) should be farm workers for decision-making purposes. Other persons could be co-opted to the Board of Trustees to provide expertise where required.  </div> <bR> <div> <B>Management Description/ Institutional Structure</B></div> <bR> <div> Describe the proposed project management team/ committees Trustees/ Board of Directors, their skills and experience, and how skill gaps will be filled/ transformation plan and or substitution plan, provide names where possible, responsible for management of the business/ entity;</div> <div> Describe how the business/ farm will be managed and provide a structure indicated roles and responsibilities of accounting participants;</div> <div> Describe how daily decision-making be facilitated;</div> <div> Outline how the everyday activities will be managed, including supplier and production contracts, inventories, quality-control measures, production targets, distribution, and the regulatory environment;</div> <div> Include details of auditors, attorneys, bankers and professional advisors.</div> <bR> <div> In the case of Farmworker Equity Scheme projects, the following implications for the structure of the business/ enterprise should be considered:</div> <bR> <div> A private company is normally registered which may have up to 50 shareholders. The statutes of the company would prohibit the selling of shares to the general public and limit the transferability of shares. In the case of an Equity Scheme, this would prevent a situation where outside investors would be able to buy up shares and dilute the land reform beneficiaries' share holding in time. If however tradability in shares is preferred in order to obtain a market-related valuation of share-values, a public company that may invite public subscription of shares would be required.</div> <bR> <div> Land reform beneficiaries should select the most appropriate legal entity based on their numbers and needs. This could be a company, business trust or closed corporation. The beneficiaries' legal entity will hold shares in the enterprise and each employee will in turn own a unit in the beneficiaries' trust or a share in the beneficiaries' company or closed corporation. The share holding of each party is determined by its equity contribution compared to the total value of the enterprise.</div> <bR> <div> One of the following scenarios should be considered for the structure of the Equity Scheme.</div> <bR> <div> The land holding and operating companies are split and the participants hold shares in both:</div> <div> Separate land and operating companies may be created. The land holding company entails land ownership and banks normally prefer to lend to the land holding company where they can secure traditional collateral. The farm operating company owns the moveable assets and infrastructure and manages the enterprise. The beneficiaries may buy shares into both the land and operating companies or only into the operating company. The advantage of this structure is that, should the operating company fail and be liquidated, the beneficiaries will still have their share in the land holding company. The disadvantage of this kind of scheme is that it increases transaction costs as numerous lease agreements need to be negotiated and policed, auditing costs are increased and a change in one agreement normally results in changes to all other agreements which have to be amended thus increasing lawyers' fees.  </div> <bR> <div> The land reform beneficiaries' purchase shares in the operating company only:</div> <div> This type of model is prevalent in eco-tourism and agri-business ventures where communities that are on state land are involved. In most of these cases, the community will enter into a back-to-back agreement with the Minister and lease its land to an operating company. The community trust could then own shares in the operating company. </div> <bR> <div> There is a single operating and land-holding company:</div> <div> A farm company is established to hold both the land and moveable assets and the existing land and infrastructure is sold to the company by the farm owner. The beneficiaries' legal entity buy shares in the farm company and the farmer retains the balance of the equity in exchange for the assets sold to the Farm Company. A third party investor may or may not be part of the arrangement. The advantage of this arrangement is that the simplicity thereof will limit the administrative costs related to institutional issues.</div> <bR> <div> <B>Risk Management and Contingency Plan</B></div> <bR> <div> Identify the risks, challenges, issues/ barriers inherent in the project/ business, and outline plans to manage these risks; </div> <div> Describe all risk factors (e.g., regulatory, legal, environmental, political), and how these risks will be mitigated; </div> <div> Prepare a risk assessment, including insurance considerations; </div> <div> Address production, marketing, export, vendor, legal, environmental, human-resource (death/ disability), and financial risks, as well as the possible impact of government policy;</div> <div> Describe management's tolerance/aversion to risk;</div> <div> Outline contingency and disaster plans, where needed.</div> <bR> <div> <B>Tenure Arrangements</B></div> <bR> <div> Describe what tenure arrangements are envisaged (mention even if current tenure is in place) e.g. individual or communal freehold; leasing, etc;</div> <div> Will the land be subdivided into individual plots for settlement and/ or production purposes;</div> <div> How will the tenure arrangements be managed.</div> <bR> <div> In the case of Farmworker Equity Scheme projects, the following considerations for tenure security must be addressed:</div> <bR> <div> Farm workers participating in an Equity Scheme would retain their status as occupiers under ESTA as long as they meet the definition as set out in the Act and regulations to the Act. Their immediate tenure is therefore secure although they may be evicted in terms of the procedures of the Act under certain circumstances. </div> <bR> <div> Various issues should be taken into consideration. The first is that in some cases, farm workers may already have housing somewhere else or do not regard their settlement on the farm as being of a permanent nature. In such cases, the issue of security of tenure is less applicable. </div> <bR> <div> Although the LRAD Grant (for agricultural equity schemes) is not linked to the housing subsidy, an attempt should be made to improve the security of tenure of land reform beneficiaries on the farms. Increased tenure security provides a tangible output for land reform beneficiaries participating in the scheme even before other financial benefits are realised. </div> <bR> <div> One of the following options would improve the land reform beneficiaries' security of tenure without providing freehold title.</div> <bR> <div> A first option is that of registering a notarial deed of right of residence in terms of the Extension of Security of Tenure Act (ESTA) of 1997.  This type of notarial deed is registered against the title deed of the land and does not transfer ownership of land to the farm workers, but would provide a written record of their land rights.</div> <bR> <div> An alternative measure would be for a personal servitude, either a usufruct, usus or habitatio, to be registered against the current owner's title deed or against a notarial deed. Personal servitudes are inseparably tied to the holder of the personal servitude.  This means that a personal servitude cannot be alienated, inherited and lapses at the death of the holder, or in the case of a juristic person such as a Trust etc. after one hundred years.  Registering the personal servitude to the beneficiaries' legal entity rather than to individuals would be a way of side stepping the no inheritance restriction.</div> <bR> <div> A third option involves farm land reform beneficiaries receiving long-term rental / lease contracts for residential sites on-farm and the land should preferably be registered to a company wholly or substantially owned by the employees and separate from the farm operating company, in terms of the Deeds Registries Act 47 of 1993.</div> <bR> <div> Land reform beneficiaries could investigate the possibility of using the housing subsidies to improve their tenure security. However for beneficiaries utilising the S/LAG option for non-agricultural equity enterprises, this may not be a viable option as the S/LAG is still linked to the housing subsidy.</div> <bR> <div> One option would be for land reform beneficiaries to secure their accommodation through land donation or the purchase of land from the farmer.  This may take the form of the land where they are currently residing in farm worker housing. It should however be noted that in the Western Cape, district councils are not in favour of farm worker housing (villages) being erected on farms as they find the servicing of these settlements problematic. This may mean that the land reform beneficiaries' legal entity would have to take on the responsibility of servicing such settlements that they may not be able to afford nor have the necessary skills to implement and maintain the services.  Another factor in the Western Cape is that many farms are held by family trusts that specifically prohibit the subdivision or sale of the land. Also in some cases, farm land reform beneficiaries would prefer to move into town nearer to services such as medical care when they retire and not be bound to the farm.</div> <div>  A final option would be for the land reform beneficiaries to purchase land in a nearby town and to develop the land with their housing subsidies. This may not be a viable option for S/LAG beneficiaries.</div> <bR> <div> <B>7.  LEGAL AND REGULATORY ASPECTS OF THE PROJECT</B></div> <bR> <div> In this section information about any legislation or regulatory aspects applicable to the project and business should be discussed and an indication should be given that these aspects were considered.</div> <bR> <div> Include: </div> <div> details of any licenses, mortgage requirements, copyrights, trademarks and patents registered (or in the process of being registered) </div> <div> details of any legislation and regulations governing the industry, product and production processes </div> <div> proof of compliance with tax, labour and other relevant legislation (VAT, PAYE, RSC, UIF, COIDA, Employment Equity Act, Skills Development Act, ESTA, etc) where applicable </div> <div> details of duties and tariffs to which inputs or products are subject if the business is a regular importer or exporter </div> <div> work and safety, health or environmental regulations</div> <div> special regulations covering the specific industry </div> <div> planning or building code requirements</div> <div> insurance coverage</div> <bR> <div> <B>8.     GRANT IMPLICATIONS</B></div> <bR> <div> Information about the required grant amount must be listed in detail:</div> <bR> <div> Value of own contribution per individual:</div> <div> (a) Labour:                    R</div> <div> (b) Assets /in-kind:       R</div> <div> (c) Cash:                       R</div> <div> (d) Loan:                        R</div> <div> (e) Facilitator (consultant) fees:     R</div> <bR> <div> (Proof of own contribution must be attached.)</div> <bR> <div> Grant level per individual:        R      </div> <div> LRAD amount per individual:  R</div> <div> Total LRAD amount:                R</div> <bR> <div> <B>9.     TOTAL PROJECT COST IMPLICATIONS</B></div> <bR> <div> Information about the total projected cost must be listed in detail:</div> <bR> <div> Grant level per individual:                R      </div> <div> LRAD amount per individual:          R</div> <div> Total LRAD amount:                        R</div> <bR> <div> Capital input per non-qualifying individual/ shareholder/ partner:                          R</div> <div> Total capital amount per non-qualifying individuals/ shareholders/ partners:      R</div> <bR> <div> Total project cost                     R</div> <bR> <bR> <div> <B>Utilisation of Finances</B></div> <bR> <div> <B>1.  Land/ share in agri-business acquisition</B></div> <bR> <div> Valuation:                         R</div> <div> Agreed selling price:      R</div> <div> Rand per hectare:          R</div> <bR> <div> <B>2.  Land development and operational cost</B></div> <bR> <div> What amount remains to cover operational costs and capital development;</div> <div> What costs: operational, land improvements/ infrastructure development/ establishment, capital assets (implements and equipment) and short-term agricultural inputs, are envisaged and which funds will cover these costs;</div> <div> State whether the remaining amount of the Planning Grant, which is required to undertake detailed planning, as per agreement and approval of the Department;</div> <div> If needed, request that the remainder of the Planning Grant be approved with the designation memorandum.</div> <bR> <div> <B>3.  Additional financial support</B></div> <bR> <div> State whether additional financial support available and forthcoming from, e.g. National or Provincial governments, donors, beneficiaries themselves or others;</div> <div> State whether the project is conditional on the availability of these funds, or is an alternative scenario acceptable to the applicants, available;</div> <div> Proof of any additional support should be attached.</div> <bR> <div> What costs: operational, land improvements/ infrastructure development/ establishment, capital assets (implements and equipment) and short-term agricultural inputs, are envisaged and indicate which funds will cover these costs;</div> <bR> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="572" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 39 WIDTH="562"><div> <B>Budget:</B></div> <div> <B>Utilisation of Finances </B></div> </tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="584" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 57 WIDTH="208"><div> Item</div> </tD> <tD VALIGN=CENTER WIDTH="86"><div> LRAD</div> </tD> <tD VALIGN=CENTER WIDTH="87"><div> Own Contribution</div> </tD> <tD VALIGN=TOP WIDTH="86"><div> Other shareholder/ partner</div> </tD> <tD VALIGN=CENTER WIDTH="87"><div> Total</div> </tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="584" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=CENTER HEIGHT= 19 ><NOBR><div> Purchase Price of Land</div> </NOBR></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> </tR> <tR> <tD VALIGN=CENTER HEIGHT= 18 ><NOBR><div> Purchase Price of % of Shares</div> </NOBR></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> </tR> <tR> <tD VALIGN=CENTER HEIGHT= 18 WIDTH="208"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="208" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> </tR> <tR> <tD VALIGN=CENTER HEIGHT= 18 ><NOBR><div> Development/ Establishment</div> </NOBR></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> </tR> <tR> <tD VALIGN=CENTER HEIGHT= 18 ><NOBR><div> Capital Cost:       Year 1</div> </NOBR></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> </tR> <tR> <tD VALIGN=CENTER HEIGHT= 18 ><NOBR><div> Operating Cost:  Year 1</div> </NOBR></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> </tR> <tR> <tD VALIGN=CENTER HEIGHT= 18 WIDTH="208"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="208" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> </tR> <tR> <tD VALIGN=CENTER HEIGHT= 18 WIDTH="208"><div> TOTAL</div> </tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="86"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="86" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="87"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="87" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <bR> <div> This information must also reflect in the cash flow projections for the project/ enterprise.</div> <bR> <div> <B>10.     PROJECT STRATEGIC PLAN</B></div> <bR> <div> Complete the discussion about the project by highlighting the following:</div> <bR> <div> Identify the long-term view of the proposed project/ business; </div> <div> Outline project/ business strengths, weaknesses, opportunities, and threats;</div> <div> Outline the project/ business and what it will be doing (mission); </div> <div> Outline where you want the project/ business to be 5 to 10 years from now (vision); </div> <div> Outline the steps to get there (strategies and goals);</div> <div> Identify key performance indicators (objectives, their measurement, and follow-up). </div> <bR> <bR> <div> <B>11.     ACTION PLAN/ ARRANGEMENTS FOR IMPLEMENTATION</B></div> <bR> <div> The business plan should include an action plan which guides the implementation of the production goals and objectives of the plan.  It should list the following elements:</div> <bR> <div> Explain the targets and timetables for implementing the plan, including approval and transfer of funds, enlisting support services following land transfer;</div> <div> Outline key dates, and explain who will be doing what to meet target dates; </div> <div> Identify key performance targets and ensure a process for follow-up (if construction is involved, outline critical dates and commissioning plans); </div> <div> As required, identify accountability for action plans related to production, financing, human resources, marketing; </div> <div> Outline accountability for plan monitoring and the timing of reports. </div> <bR> <div> <B>12.  Conclusive Remarks</B></div> <bR> <div> The business plan can be concluded by briefly highlighting the main items that point to the success of the project plan and why it should be approved for implementation.</div> <bR> <div> The plan should be signed off by the applicants and the facilitator.</div> <bR> <div> Finally, any appendices that are relevant and which provides evidence about statements in the plan should be added.</div> <bR> <bR> <div> <B>ATTACHMENTS AND SUPPORTING DOCUMENTS</B></div> <bR> <div> The following supporting documents should be included in the business plan where applicable.  This list is not exhausted and could also include unique project specific information:</div> <bR> <div> Minutes of District Assessment Committee (DAC) meeting where project was registered as a land reform project</div> <div> Letter of appointment of design agent/ facilitator</div> <div> List of beneficiaries/ applicants</div> <div> Signed affidavits and copies of IDs</div> <div> Report and minutes of all meetings/ facilitation workshops/ consultations with attendance registers</div> <div> Documentation of confirmation of support/ objections/ services available to the project</div> <div> Training Proposal and Capacity Building/ Transformation Plan</div> <div> Mentorship Plan/ Agreement</div> <div> Offer(s) to purchase</div> <div> Deed of Sale(s) or Lease Agreement for land or Shareholders Agreement</div> <div> Copy of the title deed </div> <div> Example or copy of share and/ or unit certificate</div> <div> Farm map indicating extent and location</div> <div> Agricultural viability study reports on soil analysis/ survey, potential</div> <div> Report on water sources and registration, water rights quantity and quality</div> <div> Preliminary land use and development map for subdivision purposes</div> <div> Production/ farming plan</div> <div> Marketing plan and memoranda of understanding, lease, agency or distribution agreements </div> <div> Copies of complete historical financial statements</div> <div> Detailed financial forecasts - operating budgets per enterprise, cash flow projections and analysis, income statements, pro forma balance sheets</div> <div> Detail about proposed financial and administrative record-keeping system</div> <div> Human Resource Strategy / Organisational Chart</div> <div> Farm/ Project Business and Management Structure</div> <div> Proof of legal entity (ies) - deed documents, statutes, memorandum of association, constitution</div> <div> Copies of identity documents and marriage certificates of the entrepreneurs, where applicable </div> <div> Schedules of life assurance and endowment policies of the entrepreneurs, where applicable </div> <div> Contracts, orders, letters of intent </div> <div> A list of persons to whom reference can be made regarding creditworthiness, product and service quality, and the skills, abilities and integrity of the applicants, entrepreneurs/ partners</div> <div> Risk management and contingency plan</div> <div> Documentation relating to legislation, regulatory aspects, licenses, copyrights, trademarks and patents</div> <div> Newspaper clippings, promotional literature, product brochures, market research, trade and industry publications </div> <div> Proof of own contribution of applicants</div> <div> Income and expenditure statement for operational and capital/ development cost utilising grant</div> <div> Quotations or pro-forma invoices for capital items to be purchased </div> <div> Project Strategic Plan</div> <div> Implementation and action plan</div> <bR> <bR> <bR> </td> <td valign="top" width=28 style=" border-top: 1px solid #0066CC; border-left: 1px solid #0066CC;border-right: 1px solid #0066CC; border-bottom: 1px solid #0066CC;" BGCOLOR="#0066CC" TEXT="#080000"> <bR> </td> </tr></table></body>