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Enhancing CASP Implementation: Strategies and Challenges for Agricultural Financing

This preliminary report by DDG outlines the initiatives under the Comprehensive Agricultural Support Programme (CASP) to improve agricultural financing through a three-pronged strategy. Key focuses include aligning support services, phasing in basic services, and enhancing off-farm infrastructure. The report highlights six significant implementation challenges such as ineffective delivery systems, poor planning, and weak monitoring. It emphasizes the need for participatory approaches, civil society mobilization, and streamlined procurement processes. Provincial visits will inform better monitoring and evaluation of CASP's effectiveness.

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Enhancing CASP Implementation: Strategies and Challenges for Agricultural Financing

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  1. CASP RECHARGEDA PRELIMINARY REPORT BY DDG: APRM

  2. INTRODUCTION • CASP 3 pronged implementation strategy • Aligning support services • Phasing in basic support services • Policy for agricultural financing Focus: on & off farm infrastructure • Provincial visits in July • Verification of business plans • Ascertain state of readiness Highlight: 6 implementation challenges • Provincial visits in Oct & Nov • Monitor CASP implementation • Identify challenges & constraints Reiterate implementation challenges

  3. INTRODUCTION cont… • CASP recharged flows from recommendations of • ITCA • QRM • Provincial visits observations

  4. SIX IMPLEMENTATION CHALLENGES • Delivery systems are not effective • In depth analysis on current procurement processes • Review current project approach system • Review dispensing mechanisms and allocations made • Mobilisation of civil society lacking • Buy in and role clarity amongst beneficiaries • Adopt participatory approaches • Double dipping • Recapitalisation of some projects without addressing underlying problems • Inventory of other programmes’ beneficiaries?

  5. SIX IMPLEMENTATION CHALLENGES cont… • Poor planning • Assistance in development of business plans • Alignment of business plan with ground operations • Weak monitoring & evaluation • Develop indicators • Strengthen communication lines • Non compliance • Reporting

  6. OTHER STRATEGIC AREAS • Focus on all CASP pillars rather than infrastructure only • Cumbersome reporting format • Review reports with NT • Multiple funding approach • Streamline projects where provinces supplement and complement CASP funds • Link to municipalities through IDP • Ensure ownership • Monitoring, evaluation & institutionalisation • CASP champions • Internal audit

  7. OTHER STRATEGIC AREAS cont… • Procurement & tender process • Use existing committees (e.g. public works standing committee) • Gazette tariffs • Review costs • Weekly tender committees • Project planning • Clear criteria • Increase capacity • Reschedule payments based on outputs in business plan • Capacity, farmer organisations • Work with the NDA, IDT • Mobilise civil society • DORA focal points at national & provincial levels • Incremental financial mechanisms (e.g. 10%, 35% etc)

  8. OTHER STRATEGIC AREAS cont… • Thematic vs project approach • Package CASP into themes like mechanisation, capacity building etc • KZN uses this thematic approach (e.g. Siyavuna) • Political role • Approval procedures clarified • Communication • Sharing best practices • Review role of agencies (e.g. ARC, LandBank) REVIEW GRANT CONDITIONS BASED ON THESE AREAS

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