Independent Development Trust 200810 Corporate Plan February 2007

Independent Development Trust 2008/10 Corporate Plan February 2007

Purpose and Content Present the IDT’s 2008/10 Corporate Plan to the Portfolio Committee for Public Works in order to: Establish a framework for evaluating the organisation's performance at the end of the 1 st year of the cycle Clarify the Committee's expectations in respect of performance monitoring in terms of the Committee’s oversight role

Table of Contents Introduction Purpose of the IDT Vision of the IDT Mission of the IDT Core Values & Operating Principles Environmental Scan Strategic Goals Strategic Objectives Programmes Human Resources Management & Organisational Structure Financial Resources & Sources of Income Key Performance Indicators Implementation Stakeholder Relationship Management Supporting Framework APPENDICES 4 7 7 8 13 15 15 17 23 26 31 31 34 44

Overview

Introduction: Page 4 -6 Overview: Schedule 2 Establishment Core Business Accounting Authority Statement: Compliance with Treasury Guidelines

Pages 7 -8 Purpose Vision Mission Core Values and Operating Principles Above remain the same as for previous years

Environmental Scan

Environmental Scan: Pages 7 -8 Key Issues Poverty Developmental State HIV/AIDS and other chronic diseases High levels in unemployment Infrastructure backlogs Women’s participation in the economy Social cohesion Millennium Development Gaols Feminisation of poverty Innovative poverty eradication interventions Macro-economic stability and sustained economic growth; not shades High levels of inequality

Environmental Scan We have recognized government’s policy objectives in our analysis. I. e. , Reducing poverty Increasing employment levels Promoting small, micro and medium enterprises (SMMEs) Developing infrastructure Promoting specific industries Promoting BEE Increasing access to basic services Except for ‘promoting specific industries’, the IDT's strategic choices are relevant and responsive to these policy objectives

Environmental Scan: Pages 7 -8 Key Challenges Differentiation and positioning of the IDT mandate revisions can only be completed in medium term through formal processes 2008/10 strategy needs to clearly define a new strategic focus and provide framework for clear institutional differentiation View: IDT’s effectiveness will only be enhanced by reviewing its business model to integrate programme management, social facilitation with a funding role (development finance) Sustainability of the IDT’s Business Model Subject of debate and concern: Board, Minister Shift to development outcomes

Strategy proposals

Strategy proposals: Driving forces Social Dynamics: Key issues: poverty, unemployment, HIV/AIDS, social alienation/exclusion MDGs: will not halve poverty and hunger by 2014 Greater need and support for robust, innovative poverty eradication interventions Economic issues Macro economic stability; sustained growth Inequality, e. g. , Gini coefficient and 2 nd economy ASGISA: transformative mechanism. IDT re-examine and be clear about our role Political issues Development= political. IDT operates in politicised space IDT must have the maturity to maintain institutional integrity in dynamic environment Technological issues Need: On-line, on time data with integrity; effective monitoring and evaluation systems IDT: opportunity to develop robust, reliable & rapid systems and reports

Strategic Overview: Page 14 Mandate Goal: Poverty Eradication & Sustainable Development Strategic Focus Women Sustainable Livelihoods Cohesive Communities Spatial Outcomes Programmes Social Infrastructur Facilitation e Social Delivery Social Development Programme Management Capacity Development Practice Innovation & Advocacy

Strategic Objectives: Page 15 1: The provision of basic services and social infrastructure to poor and marginalised communities. A primary focus will be women and their dependents as primary beneficiaries. 2: The development of sustainable livelihoods and employment opportunities in poor and marginalised communities. A primary focus will be on opportunities for women and women’s groups. 3: The enhancement of the human and institutional capacity of community-based, non-governmental organisations and local government operating in poor and marginalised communities. A primary focus will be on organisations with women as their primary participants. 4: Service delivery excellence and the efficient and effective utilisation of financial and human resources. 5: The active promotion and piloting of innovative development practice and advocacy in pursuit of poverty eradication and the advancement of women. Translated into Targets

Rationale Mandate broad: need a more focussed interpretation of our role in order to more effectively apply assets and resources Hence 2008/10 Corporate strategy targets Women as beneficiaries and participants because: Poverty = racial, gender & spatial dimensions Int’l best practice: targeted vs. universalist approach Women = most effective delivery vehicles Women-focused initiatives more likely to maximize impact on poverty eradication

Rationale Essence of the shift in strategy: IDT’s core role and niche area will be to facilitate the creation of sustainable livelihoods and cohesive communities in poverty pockets and underdeveloped areas* by focussing on women as targeted beneficiaries as well as partnering with women as participants in the development process. * communities in shadow areas (the nodes)

Rationale (Shadow Areas) Developed by the National Solidarity Fund of Tunisia criteria for intervention or where the Fund would be deployed. Criteria refers to areas that: Are in complete isolation and not easily accessible; Has an absence of at least two basic amenities of life (e. g. , water, electricity, roads, housing) Has an absence of favourable factors encouraging economic activities that guarantee decent living conditions (survivalist economies) Has a minimum of 30 families living in the area Shadow areas is also described as ’those people disadvantaged by nature and forgotten by development. ’

Rationale Women as the unit of analysis and targeted participants and beneficiaries based on the assumption that the organisation will more effectively impact families, communities, youth and children by working with women. The delivery of social infrastructure, with particular emphasis on the eradication of mud schools. Marginalised areas, for instance rural areas and other communities in “shadow areas” People-centred development, with social facilitation and organisational development as an explicit modality of its development approach. Programmes that meet the above criteria and which specifically aim to eradicate poverty, underdevelopment and unemployment

Programmes: IDT will focus on the next 3 years: Page 16 Development of social infrastructure to poor and marginalised areas, incl. the design and management of programmes on behalf of government (schools, clinics etc, that lends itself to labour intensive methodologies) Social facilitation focused on the empowerment of women and their organisations Institutional delivery capacity building community-based, nongovernmental organisations and local government operating in poor and marginalised communities Supporting local economic development and job creation such as J 4 G and EPWP Developing and piloting innovative development solutions targeting and partnering with women Advocacy: policies, strategies and programmes aimed at eradicating poverty and the advancement of women

HR Management and Organisational Structure: Page 17 -22 Human Capital Management Staffing HR Challenges Structure Internal organisational transformation Employment equity Skills Training Policy & Approach Performance Management & Approach

Financial Resources & Sources of Income: Page 23 -25 Enormous challenge: demand for development vs. sufficient funds to maximize impact of our operations Basic source of revenue: investment fund following R 2 billion grant in 1990 Expanding operations + lowering interest rates (income earnings) + conservative investment strategy Current fund value: R 1. 3 bn Financial modeling= fund will be eroded 2010/12 Board decision, supported by Executive Authority, and reported to Portfolio Committee: IDT= redistributive mechanism Primary principle that guides decisions: relevance of mandate Approved deficit budget for 3 successive years

Financial Resources & Sources of income: Page 23 -25 2007/08 2008/09 R: R: million 2009/10 R: million Investment Income 118, 0 107. 3 93. 0 Cost recovery 11. 5 13. 7 Expenditure 226, 1 (245. 6) (273, 3) Deficit 129, 5 (126, 8) (166, 6) Capex 6. 5 9. 7 7. 9 Est. Closing Balance 1275, 0 1136, 8 Budget: 2005/06: R 143 million of which R 23 million was funded from capital base) 2006/07: R 206 million, which included R 35 million for ASGISA, and R 80 million funded from capital base. 2007/08: R 226 million of which R 96 million will be funded from the capital base. 2007/07 Budget: Pg 3536 Projections for next two years 0 956, 8

Budget 2007/08 Corporate Services Unit Financial Services Unit Office of the CEO Development Programme Services 18% 05% 10. 5% 49% Total IDT 37 256 796 12 424 112 23 430 287 115 893 012 189 024 ASGISA 15% 30 165 Provision Perf. Bonus 2. 5% 5175 Total Expenditure Budget 2. 5% 226 124 090 Income 129 500 000 Deficit (96 624 090)

Overall approach to Business Case 1. Inception • Obtain commitment from stakeholders to the strategic process and its terms of reference • Key inputs to the engagement agreed • Individual participants in the engagement confirmed • Workshops planned and agreed 2. Rationale • Document review • Meetings/Workshops with Exco & Board • Meetings with DPW, National Treasury and DPSA • Engagement with key stakeholder groups 3. Business Model 4. Regulatory / Statutory Framework 5. Business Case • Meetings / workshops with Exco & Board • Meetings with DPW, National Treasury and DPSA • Engagement with key stakeholder groups • Organizational assessment & design • Document review • Meetings with DPW, National Treasury and DPSA • Specialist Legal & Regulatory Review • Engagement with National Treasury, DPSA & DPW • Preparation of draft Business Case • Presentation and Review • Final Submission to Minister

Key Performance Indicators: Page 26 -03 2008/10 Targets: introduced a Balance Scorecard, a planning approach which will reach maturity in a few years. Significant changes: Key Result Areas (KRAs), Key Performance areas (KPAs) and Key Performance indicators for each strategic objective Output and Outcome measures, baselines and targets Key assumptions: Outcome measurement: not evident after 1 -year. Hence will by the end of 2007/08 only have outcomes baselines in place and will deliver on the outputs Social infrastructure stages Clients will comply with programme agreements No major challenges top availability of resources TARGETS 28 -FEB-07. doc

Support systems and processes

Further sections of the Corporate Plan Implementation: Page 31 Stakeholder Relations Management: Page 31 Supporting Framework: Page 34 -36 Risk Management Plan Fraud Prevention Plan Financial Plan Appendices Environmental Scan: Page 37 IDT Programme Portfolio: Page 44 Detailed Performance Scorecard: Page 49 Shareholder Compact: Page 53 CVs of Board Members: Page 70 (excl. from hard copy) CVs of Executive Management: Page 81 (excl. from hard copy)