Ntinga O.R. Tambo Development Agency SOC Ltd · 2019. 8. 6. · Ntinga O.R. Tambo Development...
Transcript of Ntinga O.R. Tambo Development Agency SOC Ltd · 2019. 8. 6. · Ntinga O.R. Tambo Development...
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Ntinga O.R. Tambo Development Agency SOC Ltd Strategic Business Plan
2018/19-2021
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OFFICIAL SIGN - OFF
Official Sign - Off
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ACRONYMS/ ABBREVIATIONS
Acronyms or Abbreviation Explanation
AFS Annual Financial Statements
AG Auditor General
ARCGC Audit, Risk, Corporate Governance Committee
ARC Agricultural Research Council
ATR Annual Training Plan
BBBEE Broad Based Black Economic Empowerment
Board Board of Directors
BoD Board of Directors
BSC Balanced Scored Card
CEO Chief Executive Officer
CFO Chief Financial Officer
CIPC Companies and Intellectual Properties Commission
CMS Change Management Strategy
CS Company Secretary
DBSA Development Bank of Southern Africa
DDP District Development Plan
DIRCO
DMS Document Management System
DRP Disaster Recovery Plan
DTI Department of Trade and Industry
ECRDA Eastern Cape Rural Development Agency
ERP Enterprise Resource Planning
EC Eastern Cape
ECDC Eastern Cape Development Corporation
ECSECC Eastern Cape Socio-Economic Consultative Council
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Acronyms or Abbreviation Explanation
GRAP Generally Recognised Accounting Practice
GDS Growth Development Strategy
HDI Human Development Index
H:CSS Head: Corporate Support Services
H:WSCD Head: Water Services and Community Development
HOD's Head of Departments
HR Human Resources
HRRC Human Resource and Remuneration Committee
ICT Information and Communication Technology
IDP Intergraded Development Plan
IDZ Industrial Development Zone
LED Local Economic Development
LMs Local Municipalities
JP Job Profile
KFPM Kei Fresh Produce Market
KSD King Sabatha Dalindyebo
MFMA Municipal Finance Management Act
MANCO Management Committee
MCR Minimum Competency Requirements
MCS Marketing and Communication Strategy
MoI Memorandum of Incorporation
MoU Memorandum of Understanding
NORTDA Ntinga O.R. Tambo Development Agency
Ntinga Ntinga O.R. Tambo Development Agency
ORTDM O.R. Tambo District Municipality
TVET Technical Vocational Education and Training
PESTEL Political, Economical, Social, Technological, Environmental and
Legal
PDP Provincial Development Plan
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Acronyms or Abbreviation Explanation
PSJ Port St John’s
PSJDA Port St John’s Development Agency
RAFI Rural Agro Finance Initiative
SA South Africa
SEDA Small Enterprise Development Agency
SEZ Special Economic Zone
SCM Supply Chain Management
SDA Service Delivery Agreement
SOC State Owned Company
SOEs State Owned Enterprises
SMMEs Small Medium Macro Enterprises
SWOT Strengths, Weaknesses, Opportunities and Threats
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CONTENTS
PART A: STRATEGIC CONTEXT ....................................................................... 1
1. SOCIO-ECONOMIC PROFILE OF O.R. TAMBO DISTRICT MUNICIPALITY ..... 1 2. PESTEL ANALYSIS ............................................................................................ 2
2.1 Political Factors ........................................................................................... 2 2.2 Economic Factors ........................................................................................ 3 2.3 Social Factors .............................................................................................. 3 2.4 Technological Factors .................................................................................. 3 2.5 Environmental Factors ................................................................................. 4 2.6 Legal Situation ............................................................................................. 4
3. SWOT ANALYSIS ............................................................................................... 5 TABLE 1: SWOT ANALYSIS ...................................................................................... 5 4. STAKEHOLDER ANALYSIS ............................................................................... 6
4.1 O.R. Tambo District Municipality .................................................................. 6 4.2 Local Municipalities and its Municipal Entities ............................................. 7 4.3 National and Provincial Government ........................................................... 7 4.4 Development Partners and State Owned Enterprises (SOE’s) ................... 8 4.5 Business Organisations ............................................................................... 8 4.6 Traditional Leaders ...................................................................................... 9 4.7 Knowledge Institutions ................................................................................. 9 4.8 Ntinga Board of Directors ............................................................................ 9
5. STATUTORY AND OTHER MANDATES .......................................................... 10 TABLE 2: STATUTORY AND OTHER MANDATES ................................................. 10 6. ALIGNMENT WITH IDP & DDP OF ORTDM ..................................................... 11 TABLE 3: ALIGNMENT WITH IDP & DDP OF ORTDM ............................................. 11
PART B: STRATEGIC FRAMEWORK ............................................................ 13
7. STRATEGIC PLANNING PROCESS ................................................................ 13 8. NTINGA MANDATE .......................................................................................... 13 9. VISION .............................................................................................................. 14 10. MISSION ....................................................................................................... 14 11. VALUE PROPOSITION ................................................................................. 14 12. VALUES ......................................................................................................... 14 13. STRATEGIC GOALS AND CRITICAL SUCCESS FACTORS ....................... 15 TABLE 4: STRATEGIC GOALS AND CRITICAL SUCCESS FACTORS .................. 15 14. PERFORMANCE MANAGEMENT ................................................................ 16 15. SCORE CARDS ............................................................................................ 18 TABLE 5: CORPORATE SCORE CARD .................................................................. 18 TABLE 6: DIVISION SCORE CARD ......................................................................... 19 16. STRATEGIC OBJECTIVES, INTERVENTIONS AND PROJECTS ................ 20 TABLE 7: STRATEGIC OBJECTIVES, INTERVENTIONS AND PROJECTS ........... 20 TABLE 8: PERFOMANCE TARGETS ...................................................................... 37
18. FUNCTIONAL AND OPERATIONAL ORGANISATIONAL STRUCTURE ...... 54 2018/19 ANNUAL PERFORMANCE PLAN (SDBIP) ................................................ 56 18. FINANCIAL IMPLICATIONS ......................................................................... 56
18.1 Statement of Financial Position .................................................................. 56
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TABLE 9: STATEMENT OF FINANCIAL POSITION ................................................ 56 18.2 Statement of Financial Performance ........................................................... 58
TABLE 10: STATEMENT OF FINANCIAL PERFORMANCE .................................... 58 19. KEY STRATEGIC RISKS .............................................................................. 60 19.1 TABLE 11: TOP NINE (9) STRATEGIC RISKS REGISTER ........................... 61 20. OPERATING MODEL ................................................................................... 65 21. CONCLUSION .............................................................................................. 66
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PART A: STRATEGIC CONTEXT
1. SOCIO-ECONOMIC PROFILE OF O.R. TAMBO DISTRICT MUNICIPALITY
The O.R. Tambo District Municipality (ORTDM) is one of the six District Municipalities in
the Eastern Cape (EC) Province, located in the eastern half of the province, with its
eastern border being the Indian Ocean coastline of South Africa (SA). To the north, it is
bordered by the Alfred Nzo District Municipality, to the northwest, by the Joe Gqabi
District Municipality, to the west, by the Chris Hani District Municipality, and to the
southwest, by the Amathole District Municipality. Within its jurisdiction, the District
includes five (5) Local Municipalities, namely:
Ingquza Hill Local Municipality;
Port St Johns Local Municipality;
Nyandeni Local Municipality;
Mhlontlo Local Municipality; and
King Sabata Dalindyebo Local Municipality.
The socio- economic profile of the O.R TDM can be briefly summarized as follows:
1.5 million Population (4th largest district in SA).One of the highly populated
districts in SA, with huge developmental backlogs.
High levels of unemployment (40, 8%) levels.
Relatively low Human Development Index (HDI) of 0, 43%, significantly lower
than in SA and in EC.
High dependency rate.
Huge infrastructure backlogs (Water, Electricity, and Telecommunication etc),
and Poor road and transport networks.
Highly consumptive rather than productive.
Large public sector.
Large purchasing power based on public sector wages, remittances and grants.
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Very large commercial sector and a very small industrial sector.
Key economic growth sector like Agriculture and Tourism with latent
development in the district, have not yet taken-off.
2. PESTEL ANALYSIS
The external Environmental Scanning (Political, Economical, Social, Technological,
Environmental and Legal - PESTEL Analysis) is another key foundation element to
crafting the Ntinga Strategy. The PESTEL Analysis helps to understand the “big
picture”, by analysing the national and global environment for determining opportunities
and risks. The aim is to develop specific tactics to mitigate the risks involved in
executing the Ntinga vision in these unfamiliar environments, and take the advantage
of change.
2.1 Political Factors
While democracy is one of the best political systems used globally, it has got
its risks, particularly in a developing country like South Africa (SA). For instance,
there is a developing trend of mass action coupled with the destruction of
infrastructure by communities demanding service delivery.
Introduction of Special Economic Zones (SEZ’s) Bill, which aims at accelerating
industrialisation, regional development and job creation in non-Industrial
Development Zone (IDZ) areas, is an advantage for the region.
After years of low investment in infrastructure, national government has initiated a
bold plan to transform the regional economy with infrastructure (Mzimvubu Dam –
R20 billion with 21 000 jobs; N2 Wild Coast Road – R11,5 billion with 15 800 jobs;
Mthatha Airport Upgrade – R79 million) at its core, and as a means of job creation.
All these factors are therefore relevant for Ntinga in attaining its goals and objectives.
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2.2 Economic Factors
Economic recession is not over yet and globalization is affecting SA (as an emerging
economy) negatively.
Fluctuation of the rand value and inflation may invoke higher wage demands from
employees, and raise costs.
While SA is recording fair economic growth, but this growth is not creating sufficient
jobs, and therefore is meaningless and irrelevant to the poor communities.
Government’s prioritization of Rural Development is a positive note for our rural
region.
All these factors are therefore relevant for Ntinga in attaining its goals and objectives.
2.3 Social Factors
Urbanisation is a threat to farming in terms of youth attitude towards farming
and availability of labour.
Community attitude and perception towards government in general and service
delivery in particular, is not good.
History of agricultural practices in the region is rich, coupled with availability of
arable land.
Corporate social responsibility of the private sector is enforced by the government
through various strategies [e.g. the Broad Based Black Economic Empowerment
(BBBEE) Act].
All these factors are therefore relevant for Ntinga in attaining its goals and objectives.
2.4 Technological Factors
While new technology changes may reduce production costs, improve quality and
lead to innovation, this may result in high cost of training and development, and
increased staff turnover.
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Research and development institutions are increasing over and above more
accessibility to institutions of higher learning.
All these factors are therefore relevant for Ntinga in attaining its goals and objectives.
2.5 Environmental Factors
Climate change is a big threat for the agricultural sector, which our rural economy
depends on.
Growing desire to protect the environment and the general move towards more
environmentally friendly products and processes is affecting demand patterns, and
at the same time creating business opportunity.
All these factors are therefore relevant for Ntinga in attaining its goals and objectives.
2.6 Legal Situation
Amendments to South African Labour Laws are more protective to the employee
than the employer, which means that workers will have to be carefully and efficiently
managed from the supervisory level upwards. The contract employment of staff
below senior management is no longer an advantage for the employer.
Conversion of Ntinga into an SOC demands more compliance and reporting
requirements in terms of the Companies Act 71 of 2008.
Managing the abattoir has its own regime of laws, regulations and compliance
requirements. In order to be able to succeed at the highest level, Ntinga will have to
comply with these requirements.
Managing fresh produce market has its own regime of laws, regulations and
compliance requirements. In order to be able to succeed at the highest level, Ntinga
will have to comply with these requirements. All these factors are therefore relevant
for Ntinga in attaining its goals and objectives.
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3. SWOT ANALYSIS
In reviewing the Ntinga Strategy, a thorough assessment of the Entity’s strengths and
weaknesses, as well as opportunities and threats was carried out. This analysis
provides a platform to determine strategic positioning, enable identification and
addressing of activity traps, as well as identifying a proactive and reactive potential.
The following were identified across the four focus areas of this analysis:
TABLE 1: SWOT ANALYSIS
Strengths Weaknesses
Good Governance.
Positive track record on Audit
Outcomes over the past years.
Track record of good accountability
and reporting.
Availability of Organizational Systems
& Structures (e.g. Board with an
experienced Management), to
effectively deliver on the new
Mandate.
Competent and agile staff with Project
Management and Social Facilitation
skills.
Revised mandate and signing of the
shareholder compact together with the
SDA will provide clarity to Ntinga both
in terms of planning and
implementation of the strategy
Improved relations between the
shareholder and the Entity.
Introduction of new Managers at
senior level and retention of
experienced managers (institutional
memory)
Inadequate financial resources to deliver on
the new Mandate.
Lack of full implementation of Organizational
Policies.
Absence of technical capacity to deliver on
the new Mandate.
Lack of profitability/viability on implemented
projects.
Sharing of office facilities with the parent
municipality.
Image deficit or poor organizational image.
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Opportunities Threats
Clear Mandate and Support from the
ORTDM Council.
Delivery on the new Mandate as the
core function of the municipality will:
Attract funding streams for the
Entity from the parent municipality
and other organs of state.
Address existing municipal service
delivery gaps, backlogs and
systems, thus enabling service
delivery on the uncontested space.
Willingness from strategic partners to
collaborate with the Entity, based on
best practice project implementation
models that have been used by the
Entity in the past.
Existence of productive infrastructure
at KFPM and at Umzikantu Abattoir.
Board’s intention to establish a Special
Projects Unit which incorporates
Project Management Unit (PMU) to
provide project management service.
Environmental issues that could jeopardise
future development efforts, particularly tourism
development, and agricultural development.
Unresolved land claims.
Inadequate supply of credible local Service
Providers/Suppliers.
Culture of service delivery non-payments in
communities, which can result to resistance to
pay for basic services (e.g. water bills).
Declining economy/recession.
Continuously changing local government
legislation.
Negative perceptions from some of our
stakeholders (e.g. some government
departments).
Increasing culture of intolerance/ vandalism
on state infrastructure and assets.
Litigation from employees (e.g. at KFPM).
4. STAKEHOLDER ANALYSIS
The stakeholder analysis of Ntinga outlines stakeholder groups and or institutions that
have a vested interest in the operations and activities of t h e Entity.
4.1 O.R. Tambo District Municipality
The ORTDM and its Council is the shareholder and primary stakeholder of the Entity.
The Entity is beholden to the ORTDM, and has been established to support the
initiatives of the Council to bring about sustainable s o c i a l a n d economic development
in the district. The expectations of ORTDM must of necessity enjoin the Entity to
support and add value to it’s IDP, The District Development Plan (DDP, District Growth
and Development Strategy (GDS), as well as its LED Strategy.
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These expectations include but are not limited to the Entity attracting investors to the
district, improving district trade relations with domestic and international markets,
thereby opening markets for the movement of quality goods and services from the
district and increasing revenues, as well as mobilising and attracting funding for strategic
infrastructure initiatives to the district.
4.2 Local Municipalities and its Municipal Entities
The five (5) local municipalities (LMs) of Mhlontlo, Nyandeni, King Sabatha Dalindyebo
(KSD), Ingquza Hill (IHLM) and Port St John’s (PSJ), including PSJ Development
Agency (PSJDA), are the direct public service instruments of the communities in the
district confronted daily with the expressed needs and concerns of the people. These
municipalities are a primary nerve centre of the Entity; hence have a direct interest in
the services offered by the organisation.
Their expectations include but are not limited to the improvement of social and physical
infrastructure in order to provide accelerated basic services, such as affordable and
sustainable energy sources, water, sanitation, housing and other economic
development activities, for the betterment of the lives of their citizens.
4.3 National and Provincial Government
The National and Provincial Governments are entrusted by the State to advance the
quality of life of their citizenry. They are custodians of the Constitutional promise of a
better life for all. Through their programs and budget votes, they support the
development envisaged by the state. Government has budgeted for implementation of
national development programmes within the District, like the KSD Presidential
Initiative; NHI upgrading; ICT Broadband roll-out to schools and health facilities;
SANRAL Wild Coast N2; Mzimvubu Dam (DWS); Wild Coast Agro-Industrial SEZ (DTI);
DRDLR interventions (Fetsa Tlala, CRDP, Agri-Parks, and the World Bank Integrated
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Rural Development Programme).The Entity is thus enjoined with these organs of state
to support and deliver sustainable development initiatives in the district.
4.4 Development Partners and State Owned Enterprises (SOE’s)
Another set of stakeholders that are critical to the Entity include a wide range of SA
government development partners and agencies. These include a variety of State Owned
Enterprises (SOEs) and other organisations, such as (to name a few), the
Development Bank of Southern Africa (DBSA), the Industrial Development Corporation
(IDC), the Independent Development. Trust (IDT), the Agricultural Research Council
(ARC), the Small Enterprise Development Agency (SEDA), the East Cape Rural
Development Agency(ECRDA), the Eastern Cape Development Corporation (ECDC)
and the Eastern Cape Socio-Economic Consultative Council (ECSECC), who have
been established ostensibly to accelerate government’s economic and social
development agenda.
It is therefore in the interest of the Entity to partner with relevant bodies and structures
that are geared to support social and economic development, including infrastructure,
job creation, the advancement of agricultural technologies, and the promotion of trade
and small medium and micro enterprises, as well as co-operatives enterprises.
Various other international development agencies and trade partners who have
development assistance and trade programs can be accessed through the Department
of Trade and Industry (DTI), as well as the Department of International Relations
and Co-operation (DIRCO), whose interests are aligned to that of the Entity.”
4.5 Business Organisations
A wide range of apex businesses and sector organisations who are important
stakeholders to the Entity exist and include local farmers. These organisations have
access to skills, technologies, information and other resources, which could assist in
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the development of the O.R Tambo district. Their interests include but are not limited to
developing business partnerships and relations, exchange of business products and
services, as well as business partnerships and co-operation. Local farmers that bring
their produce to Kei Fresh Produce Market (KFPM) should be involved in the
governance matters of KFPM.
4.6 Traditional Leaders
Traditional leaders and chiefs are a critical constituency of the Entity, as they form a
significant group of leaders that are a repository of land and value systems that may
accelerate and/or frustrate socio-economic development. They also represent the land
interest of the communities, who are the primary beneficiaries of the Entity’s socio-
economic programmes. Their interests include but are not limited to area development,
the economic advancement of their subjects, the upholding of cultural values within
progressive development frameworks and initiatives.
4.7 Knowledge Institutions
The Knowledge Institutions include Institutions of Higher Learning like Universities,
Colleges and Technical Vocational Education and Training (TVET) Colleges. These
Institutions are critical in the delivery of Ntinga Mandate particularly those that are
involved in training of Plumbers, Millwrights and other artisans that relate to water and
sanitation and agriculture. Their interests include experiential training of their students
and their placement when they have completed their studies.
4.8 Ntinga Board of Directors
The Board of the Entity is a vital component in the development of ORTDM. The
Board is therefore charged with the responsibility of overseeing the proper governance
and delivery of the Entity’s key core programs.
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As an internal stakeholder, the Board’s interests and expectations revolve around the
need for the organisation to provide strategic direction to the executive staff of the
Entity; assist with defining and monitoring of the organisation’s business plan, ensure
that the structure of the organisation is adequate to meet its business plan, evaluate
the performance of its Chief Executive, mobilise sufficient funding and other resources
to support the achievement of the organisations’ vision and mission, and further support
the operations of the organisation by providing expert and professional advice.
5. STATUTORY AND OTHER MANDATES
In line with the requirements from National and Provincial Government, as well as the
ORTDM directives, we confirm that the Ntinga Strategy is aligned to all relevant
government legislative prescripts and mandates, which regulate and further guide local
government (and municipal entities), as shown below:
TABLE 2: STATUTORY AND OTHER MANDATES
No. Legislative Mandate Alignment
1. Constitution of the Republic of South Africa (Act No. 108 of 1996)
2. White Paper on Local Government, 1998
3. Municipal Structures Act No. 117 of 1998
4. Municipal Systems Act No. 32 of 2000 and Regulations
5. Municipal Finance Management Act No. 56 of 2003
6. Companies Act No. 71 of 2008 and Regulations
7. National Treasury Regulations
8. Public Audit Act No. 25 of 2004
9. Intergovernmental Relations Framework (IGR), Act No. 13 of 2005
10. Preferential Procurement Policy Framework (PPPFA) Act No. 5 of 2000 &
Regulations
11. National Spatial Development Perspective, 2006
12. Medium Term Strategic Framework (MTSF)
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No. Legislative Mandate Alignment
13. The New Economic Growth Path,2010
14. Millennium Development Goals (MDG)
15. National Development Plan (Vision 2030)
16. Easter Cape Vision 2030, Provincial Development Strategy (PDP)
17. Provincial Medium Strategic Framework (PMSF)
18. The Local Government Turn-around Strategy,2009
19. Back to Basics (B2B) Approach (COGTA)
6. ALIGNMENT WITH IDP & DDP OF ORTDM
The strategy has been crafted such that is aligned to, and can contribute to the DDP
and the five (5) KPAs of Local Government, as enshrined in the ORTDM Integrated
Development Plan (IDP):
TABLE 3: ALIGNMENT WITH IDP & DDP OF ORTDM
Local Government KPA’s
(IDP)
Ntinga (SOC) Ltd
Strategic Goals
ORTDM
District Development Plan
1. Basic Service Delivery
and Infrastructure.
Goal 1: Sustainable Water
Services (water supply and
sanitation) Systems
Goal 1: A substantial
improvement in the provision
of public infrastructure and
services, and a vast increase
in support for livelihood.
Goal 3: Well protected
environmental assets.
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Local Government KPA’s
(IDP)
Ntinga (SOC) Ltd
Strategic Goals
ORTDM
District Development Plan
2. Local Economic
Development.
Goal 2: Enhanced and
Enabled Full Value Chains
(upstream and downstream)
for Agricultural Produce,
Goal 4: A growing,
innovative/responsive and
inclusive economy.
Markets, Abattoirs and
Aquaculture. Goal 3: Diversified
Partnerships that Promote
Inclusive Socio-economic
Development and Growth.
3. Municipal Financial
Viability and Management.
Goal 4: Dynamic, Capable
and Sustainable State Owned
Company.
Goal 5: An efficient and
effective public sector, able to
provide strong economic
governance leadership.
4. Good Governance and
Public Participation.
Goal 4: Dynamic, Capable
and Sustainable State Owned
Company.
Goal 5: An efficient and
effective public sector, able to
provide strong economic
governance leadership.
5. Municipal Transformation
and Organisational
Development.
Goal 4: Dynamic, Capable
and Sustainable State Owned
Company.
Goal 5: An efficient and
effective public sector, able to
provide strong economic
governance leadership.
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PART B: STRATEGIC FRAMEWORK
7. STRATEGIC PLANNING PROCESS The strategy of Ntinga is informed by the mandate, ORTDM planning process, including the
State of the District Address (SODA) and the IDP consultative process. Ntinga’s strategic Goals
are aligned to the District Development Plan (DDP) as well as the Provincial Growth and
Development Strategy (PGDS).
8. NTINGA MANDATE The mandate bestowed upon Ntinga by its parent municipality, O.R. Tambo District Municipality
(ORTDM), is: To perform activities which falls within the functions and powers of district
municipalities as contemplated in Section 84(1) of the Municipal Structures Act, 1998 (Act 117
of 1998), in particular Section 84 (1)(a)(b)(d)(k)(n)&(p), which are:
i) Integrated Development Planning;
ii) Potable Water Supply Systems;
iii) Domestic and Industrial Waste-water and Sewage Disposal Systems;
iv) Fresh Produce Markets and Abattoirs;
v) Local Tourism Promotion;
vi) Municipal Public Works;
vii) Taxes, Levies and Duties; and
viii) Discretionary Initiatives.
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9. VISION
Vibrant and Sustainable Communities.
10. MISSION
Being a catalyst for innovation in promoting socio-economic development and sustainable services to communities, through strategic partnerships and new
investments.
11. VALUE PROPOSITION
Promotion of Socio-economic Development.
12. VALUES
i) Nurture and Care.
ii) Leadership.
iii) Learning and growth.
iv) Agility.
v) Innovation and Creativity.
vi) Good Governance, Accountability and Transparency.
vii) Integrity and Honesty.
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13. STRATEGIC GOALS AND CRITICAL SUCCESS FACTORS
Over the next 3 years, Ntinga will endeavour to achieve the following four (4) Strategic Goals:
TABLE 4: STRATEGIC GOALS AND CRITICAL SUCCESS FACTORS
GOAL # 1: Sustainable Water Services (water supply and sanitation) Systems.
Critical Success Factor:
(a) Allocation of a number of schemes by ORTDM to Ntinga.
(b) Refurbishment, maintenance and operation of water schemes.
(c) Billing for water services on water schemes allocated to Ntinga.
GOAL # 2: Enhanced and Enabled Full Value Chains (upstream and downstream) for
Agricultural Produce, Markets, Abattoirs and Aquaculture.
Critical Success Factor:
(a) Availability and sustainability of feedstock and markets.
(b) Improved profitability and operational efficiency on all trading enterprises.
GOAL # 3: Diversified Partnerships that Promote Inclusive Socio-economic
Development and Growth.
Critical Success Factor:
(a) Appropriate and relevant networks.
(b) Fundraising and mobilisation of resources.
(c) Signed agreements with relevant stakeholders and partners
GOAL # 4: Dynamic, Capable and Sustainable State Owned Company.
Critical Success Factor:
(a) Skilled and capable workforce to effectively and efficiently implement Ntinga Mandate.
(b) Appropriate performance management system linked to the achievement of pre-
determined strategic goals
(c) Systems to monitor organisational performance and provide timely interventions
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14. PERFORMANCE MANAGEMENT Ntinga remains focused on entrenching a performance driven culture. To this end, Ntinga
utilizes the Balanced Scorecard (BSC) methodology and framework as part of its strategic
management process and integrates this with performance management to ensure that policies
are aligned to the business strategy and the achievement of the set performance objectives and
targets, rewarding employees for their contribution to the success of the institution.
The balanced scorecard is a strategic planning and management system that is used
extensively in business worldwide to align business activities to the vision and strategy of the
organization, improve internal and external communications, and monitor organization
performance against strategic goals. The objective of a Balanced Scorecard is to transform an
organization’s strategic plan from an attractive but passive document into the "marching orders"
for the company on a daily basis. It provides a framework that not only provides performance
measurements, but helps planners identify what should be done and measured. It also enables
executives to truly execute their strategies. The balanced scorecard will therefore provide a
clear prescription as to what Ntinga should measure in order to 'balance' the financial
perspective.
The following are the key aspects of the BSC:
A tool for the translation of the strategy into a set of balanced and meaningful objectives,
measures and targets at all levels of functions;
A process that allows cascading of strategic objectives to ensure alignment and through
involvement promotes buy-in;
A platform for improved communication on individual contributions to the overall strategy;
Strategy Mapping
Strategy maps are communication tools used to tell a story of how value is created for the
organization. They show a logical, step-by-step connection between strategic objectives (shown
as ovals on the map) in the form of a cause-and-effect chain. Generally speaking, improving
performance in the objectives found in the Learning & Growth perspective (the bottom row)
enables the organization to improve its Internal Process perspective Objectives (the next row
up), which in turn enables the organization to create desirable results in the Customer and
Financial perspectives (the top two rows).
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DIAGRAM 1: BSC STRATEGY MAPPING
DIAGRAM 2: PERSPECTIVES OF THE BSC
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15. SCORE CARDS
TABLE 5: CORPORATE SCORE CARD
STRATEGIC GOALS
THREE YEAR (2018/19- 2021/21)
WEIGHTS PER GOAL
2017/18 2018/19 2019/20 2021
1. Sustainable Water Services (water supply
and sanitation) Systems.
40%
30%
40%
40%
2. Enhanced and Enabled Full Value Chains
(upstream and downstream) for
Agricultural Produce, Markets, Abattoirs
and Aquaculture.
20%
30%
30%
30%
3. Diversified Partnership that Promote
Inclusive Socio-economic Development
and Growth.
20%
20%
15%
15%
4. Dynamic, Capable and Sustainable State
Owned Company.
20%
20%
15%
15%
TOTAL SCORE FOR STRATEGIC GOAL PER
ANNUM
100%
100%
100%
100%
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TABLE 6: DIVISION SCORE CARD
STRATEGIC GOALS
2018/2019 DIVISIONAL WEIGHTS PER GOAL
NTINGA WS TE BTO CS CEO
1. Sustainable Water Services (water
supply and sanitation) Systems.
30%
14%
2%
5%
4%
5%
2. Enhanced and Enabled Full Value
Chains (upstream and downstream)
for Agricultural Produce, Markets,
Abattoirs and Aquaculture.
30%
5%
16%
3%
2%
4%
3. Diversified Partnership that Promote
Inclusive Socio-economic
Development and Growth.
20%
3%
8.5%
2%
1.5%
5%
4. Dynamic, Capable and Sustainable
State Owned Company.
20%
2.5%
2.5%
4.3%
4.3%
6.4%
TOTAL SCORE PER DIVISION
100%
24.5%
27.0%
15.7%
11.80%
21.0%
LEGEND:
NTINGA : Ntinga O.R. Tambo Development Agency SOC Ltd
WS : Water Services Department
TE : Trading Enterprise Department
BTO : Budget and Treasury Office (Finance Department)
CS : Corporate Services Department
CEO : Office of the Chief Executive Officer
Page | 20
16. STRATEGIC OBJECTIVES, INTERVENTIONS AND PROJECTS TABLE 7: STRATEGIC OBJECTIVES, INTERVENTIONS AND PROJECTS
STRATEGIC GOAL: 1 Sustainable Water Services (water supply and sanitation) Systems.
Strategic Objectives
Key Performance Indicators
Interventions (CSF) Catalytic Projects
(Targets)
Means of
Verification
1.1 Provide water related
services to the per-
urban & rural
communities within the
O.R. Tambo District by
refurbishing and
maintaining schemes.
1.1.1 Number of refurbished non-
functional Schemes
1.1.2 A percentage of community
taps with potable water
1.1.3 Percentage of water
interruptions lasting longer
than 24 hours.
1.1.4 Percentage of water
samples that conform to
SANS 241: 2011 water
standards.
1.1.5 Percentage of water revenue
collected from consumers.
1.1.6 Percentage of water
schemes operated and
maintained in accordance
with approved Operations
and Maintenance Plan.
Assessment and
refurbishment of
water schemes
Operation and
maintenance of
functional schemes
in order to ensure :
(a) Physical integrity
of water supply
system.
(b) Hydraulic
integrity of water
supply system.
(c) Water quality
integrity of water
supply system
(partnership).
Conduct regular
sampling and testing
Identify areas of
operation (landing
strips) of Ntinga water
83 water schemes
in KSD assessed
and those that are
non-functional
refurbished by 30
June 2019.
70 % of
community-based
water taps linked
to refurbished
water schemes
release potable
water by 30 June
2019.
70 % of reported
water interruptions
related to
inherited and
refurbished
functional
schemes are fixed
within 24 hours by
30 June 2019.
Annual Performance
Report.
Assessment report
for each of the 83
water schemes in
KSD.
Water taps
functionality survey
issued monthly by
the Customer
Liaison Officer
Post repair
interruption
feedback reports
compiled by the
Customer Liaison
Officer after repair
of reported
interruptions.
Management
Page | 21
Strategic Objectives
Key Performance Indicators
Interventions (CSF) Catalytic Projects
(Targets)
Means of
Verification
1.1.7 Percentage of allocated
sanitation social facilitation
projects implemented in
accordance with approved
implementation plan.
1.1.8 Percentage of reported
water leaks repaired within
48 hours.
projects in LM’s
Implement Water and
Sanitation projects
(special projects).
Attending to and
fixing reported water
leaks
1 Water sample is
taken for water
quality testing
from each water
scheme operated
by the Entity by 30
June 2019.
70 % of Water
schemes operated
by the Entity are
operated and
maintained in
accordance with
approved
Operations and
Maintenance Plan
by 30 June 2019.
100 % Sanitation
Social Facilitation
projects are
implemented in
accordance with
approved
implementation
plan by 30 June
2019
Accounts.
Water quality
assessment reports
Based on approved
water testing
technology
and/laboratories.
Operations and
maintenance reports
aligned to approved
operation and
maintenance
procedure and plan.
Overall social
facilitation report
issued once a
month by social
facilitators and
individual project
progress reports
issued by social
facilitators linked to
each project.
Page | 22
Strategic Objectives
Key Performance Indicators
Interventions (CSF) Catalytic Projects
(Targets)
Means of
Verification
70% of reported
water leaks are
attended to and
repaired within 48
hours by 30 June
2019.
Job cards for
reported water leaks
and reports for fixed
water interruptions
issued by the
Customer Liaison
Officer once a
month.
1.2 Provide accurate &
timely billing services to
all the customers
serviced by Ntinga
1.2.1 Database of water
services end users in
peri-urban areas of
Mthatha KSD
1.2.2 Percentage of customers
within KSD peri-urban
areas billed for the
consumption of water 1.2.3 A functional 24 hour
customer care call centre
is in place
Identification and
development into a
database of water
services end users in
peri-urban areas of
Mthatha, KSD LM
Development and
submission of water
billing policy proposal
for approval by the
District Municipality.
Billing customers
Customer care
Provision of timely
and accurate water
consumption reports
to BTO
Acquisition of a
billing system in
consultation with
the ORTDM
1 comprehensive
survey report on
water services
end users is
developed by 30
June 2019.
1 water billing
policy proposal is
submitted to the
O.R. Tambo
District
Municipality for
approval by 30
June 2019
The monthly billing
summary report
A Water services
end user survey
report.
Copy of water billing
policy proposal
submitted to the
district Municipality
Copies of billing
information
submitted to BTO.
Page | 23
Strategic Objectives
Key Performance Indicators
Interventions (CSF) Catalytic Projects
(Targets)
Means of
Verification
Establishment of
24hr call centre
100% water
services end
users are billed
timely and
accurately by 30
June 2019.
100% of received
calls are
recorded and
processed the
response staff.
Page | 24
STRATEGIC GOAL: 2 Enhanced and Enabled Full Value Chains (upstream and downstream) for
Agricultural Produce, Markets, Abattoirs and Aquaculture.
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
2.1 Improve productivity
and profitability of
Umzikantu Abattoir by
30 June 2021
2.1.1 Number of livestock units
slaughtered for
communities, butcheries
and other meat retailers
2.1.2 Number of livestock units
slaughtered for sale,
towards abattoir full
capacity use.
2.1.3 Revenue generated from
meat sales, Hides and
Skins and slaughter fees.
2.1.4 Percentage gross profit
margin generated from
meat sales.
Refurbishment and
continuous
maintenance of
Abattoir infrastructure
and facilities.
Production and
marketing of red
meat (cattle, sheep,
& pigs) carcasses
and offal, locally and
beyond.
Utilisation of Abattoir
for slaughtering
incrementally towards
full capacity.
Abattoir Private
Livestock
Slaughtering.
Abattoir Own
Livestock
Slaughtering and
meat sales.
Meat Market (that
includes offal).
Batch control
documents.
Financial reports.
Page | 25
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
2.2 Improve functionality
and viability of Kei
Fresh Produce Market
(KFPM) by initially
focusing and targeting
linkages of fruit and
vegetable industry
supply chains by 30
June 2021
2.2.1 Tonnage of agricultural
produce sold by Market
Agents.
2.2.2 Revenue generated from
5% commission of
agricultural produce sold.
Refurbishment and
continuous
maintenance of
Market infrastructure
and facilities.
Recruitment of
competent Market
Agents towards full
capacity of the
Market.
Facilitate aggressive
marketing and sale of
fresh produce (fruit
and vegetables)
locally and beyond by
Market Agents.
Fresh produce
volumes (tonnage)
monitoring.
Fresh Produce
Market growth and
sales.
Recruitment of
competent Market
Agents towards full
capacity of the
Market.
Freshmark System
monthly reports.
Financial reports
2.3 Utilise Adam Kok Farms
as primary production
hub for agricultural
produce
2.3.1 Number of cattle produced
and sold to Umzikantu
Abattoir and other markets.
2.3.2 Revenue generated from
cattle produced and sold to
Umzikantu Abattoir and
other markets.
2.3.3 Percentage gross profit
margin from cattle produced
Purchase, condition,
breed and distribute
to Umzikantu Abattoir
and other markets
Exchange heifer with
subsistence/
emerging farmers
Assist farmers in
Cattle production
(fattening/conditionin
g, purchasing, and
breeding for sale). Cattle sales.
Community animal
identification
registration and
Sales invoices.
Monthly
Management
Account.
Page | 26
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
and sold mainly
Umzikantu Abattoir
other markets.
to
and
animal identification
Increase number of
bulls to meet a bull:
cow ratio.
branding Heifer exchange
programme
2.3.4 Number of hectares utilised for crop production
Utilise available arable land for crop production
High value production
crop
2.4 Establishment of a
profitable Dairy
business
2.4.1 Feasibility study for
viable Dairy business
a Conduct feasibility
study for
establishment of a
viable Dairy
business
Feasibility study Feasibility report
Page | 27
STRATEGIC GOAL: 3 Diversified Partnerships that Promote Inclusive Socio-economic Development and
Growth.
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
3.1 Optimize linkages of
meat industry value
chain that enhance
functionality of
Umzikantu Abattoir by
30 June 2021.
3.1.1 Number of signed and
implemented partnership
agreements that enhance
functionality of Umzikantu
Abattoir.
3.1.2 Number of signed and
implemented off-take
agreements for sale of meat
from Umzikantu Abattoir.
Establish and
maintain partnerships
with livestock (cattle,
sheep and pigs)
producers, marketers
and/or speculators.
Facilitate off-take
agreements with
wholesalers and
public entities like
Correctional Services,
Hospitals, etc.
Relevant
partnerships
agreements
establishment.
Signed on Strategic
Partnerships
signed off-take
agreements
Page | 28
STRATEGIC GOAL: 3 Diversified Partnerships that Promote Inclusive Socio-economic Development and
Growth.
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
3.2 Optimize linkages of
fruit and vegetable
industry value chain
that enhance
functionality of Kei
Fresh Produce Market
(KFPM) by 30 June 2021.
3.2.1 Number of signed and
implemented partnership
agreements that enhance
functionality of Fresh
Produce Market.
3.2.2 Number of signed and
implemented off-take
agreements with local non-
commercial farmers to
supply KFPM with
agricultural produce.
Develop and maintain
partnerships with
Local Municipalities to
assist local farmers to
produce and supply
the KFPM.
Facilitate involvement
of local PDI’s in the
Market Agency
business.
Fresh Produce
Market
partnerships
establishment.
Establishment of
Partnership in the
meat market
centre.
Establishment of
partnerships in fruit
and vegetable
processing
Signed
partnership
agreements
3.3 Optimize linkages of a
rapid livestock
production industry
value chain that
enhance functionality of
Adam Kok Farms by 30
June 2021.
3.3.1 Number of signed and
implemented partnership
agreements that enhance
functionality of Adam Kok
Farms.
3.3.2 Number of signed off-take
agreements for purchase of
livestock produced by Adam
Kok Farms.
Develop and maintain
partnerships that
enhance functionality
and optimum
utilisation of Adam
Kok Farms.
Farms
Partnerships.
Signed
partnership
agreements
3.4 Enhance the quality and
quantum of domestic
and foreign trade and
investment through
sustainable
3.4.1 Number of new Foreign
Direct Investors facilitated
into O.R. Tambo region.
3.4.2 Number of existing Foreign
Facilitate attraction,
retaining and
expansion of
Domestic and Foreign
Direct Investment
Trade and
Investment
Promotion and
Facilitation.
Investment
Promotion Report.
Page | 29
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
partnerships by 30 June
2021.
Direct Investors retained for
more than 12 months in the
O.R. Tambo region.
3.4.3 Number of existing Foreign
Direct Investment (FDI)
facilitated to expand
(financially and non-
financially) in O.R. Tambo
region.
3.4.4 Rand value of total FDI
attracted into O.R. Tambo
region.
3.4.5 Number of new Domestic
Investors attracted into O.R.
Tambo region.
3.4.6 Number of existing
Domestic Investors retained
for more than 12 months in
the O.R. Tambo region. 3.4.7 Number of existing
Domestic Investors
expanded (financially and
non-financially) in O.R.
Tambo region.
(FDI) into O.R.
Tambo region.
Establishment of
Meat Market (meat
factory shop) which
include sale of offal at
KFPM.
Facilitate Argentina
DFI through RAFI
(special project).
Facilitate trade
promotion through
Maize Production
Programme using
Ntinga model (special
project).
Page | 30
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
3.4.8 Rand value of total
Domestic Investment
attracted into O.R. Tambo
region.
3.5 Identify, support and
promote SMME’s as a
catalyst for economic
development and growth
and innovation by 30 June
2021.
3.5.1 Number of new sustainable
SMME’s supported
3.5.2 Number of existing SMME’s
promoted and supported to
be sustainable.
3.5.3 Number of market
opportunities successfully
created for SMME’s.
3.5.4 Number of decent (or
sustainable) jobs created by
Ntinga supported SMME’.
3.5.5 Number of joint ventures,
technology transfers and
partnerships facilitated
between local and domestic
or foreign investors to
promote localisation and
empowerment.
Facilitate and
promote
entrepreneurship
development and
innovation.
Facilitate SMME
development in
partnership with
Strategic partners.
SMME
Development
and Innovation.
Enterprise
Development
Report.
Page | 31
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
3.6 Develop, support and
empower Co-operatives as
a catalyst for economic
development and growth
and innovation by 30 June
2021.
3.6.1 Facilitation through
partnerships establishment
and maintenance of a Co-
operatives Development
Centre in the O.R. Tambo
region.
3.6.2 Number of new sustainable
Co-operatives developed
and supported. 3.6.3 Number of existing Co-
operatives promoted and
supported to be sustainable. 3.6.4 Number of market
opportunities successfully
created for Co-operatives.
3.6.5 Number of decent (or
sustainable) jobs created by
Ntinga supported Co-
operatives.
Facilitate and support
Co-operatives
development.
Facilitate co-
operatives
development in
partnership with Chris
Hani Co-operatives
Development Centre
(special projects).
Co-operatives
Development
and Support.
Co-operatives
Development
Report.
3.7 Promote the O.R. Tambo
Region as a Tourism
destination
3.7.1 Number of Tourism
events and exhibitions
attended.
3.7.2 Number of Marketing
tools developed
Participation in
Tourism and Trade
shows.
Development and
distribution of
Marketing Brochures.
Attendance of
Tourism and
Trade shows
and distribution
of marketing
tools.
Trade show reports
Marketing tools
distribution Report
Page | 32
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
3.8 Provide training &
skills development
to the co-operatives
and targeted groups
within the region
Number of training
interventions provided to
unemployed youth, women,
disable, ex –mine workers
and military veterans.
Five training
interventions per
Local Municipalities
Training and skills development agreements with: Jobs Fund
UIF
O.R. Tambo
CDC
O.R. Tambo
Enterprise
Development
Centre
CATH SETA
Strategic
Partnership
agreements
Attendance
Registers
Training Reports
Page | 33
STRATEGIC GOAL: 4 Dynamic, Capable and Sustainable State Owned Company.
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
4.1 Ensure Business
Processes, Tools and
Systems that support
implementation of the
Strategy and continued
viability of the
organisation by 30 June
2021.
4.1.1 Sound financial
management and accurate
reporting.
Budgeting.
Regular update of
financial records.
Reporting to the
parent municipality
and the Board of
Directors.
Annual
Budgeting
Financial
Management,
Systems and
Reforms.
Annual Budget
Monthly and
Quarterly Financial
Reports.
4.1.2 Rand value of investment
income collected.
Review and
implementation of
banking and
investment policy.
Revenue
Management
Investment Register
4.1.3 Annual Financial
Statements prepared by 31
August each year.
Update of financial
records.
Reconciliation of
accounts.
Implementation of
Financial Reforms
and Accounting
Standards.
Annual financial
statements.
Annual Financial
Statements
4.1.4 % of suppliers paid within
30 days from date of
invoice.
Creditors Accounts
Reconciliation.
Supplier
Payments
Supplier Payment
Vouchers
4.1.5 % procurement done with
local suppliers.
Develop, review and
implement Supply
Chain Management
Supply Chain
Management
Systems.
Supply Chain
Management
Reports.
Page | 34
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
Business Processes,
Tools and Systems.
Timely sitting of bid
committees.
Supply Chain
Management
Reporting.
SCM Business
Processes, Tools
and Systems.
4.1.6 Asset Register compiled
and updated.
Monthly updates of
the asset register.
Periodic counts and
verification of assets.
Updated Asset
Register
Asset Register
4.1.7 Annual review of the
Strategic Plan
Review Strategic
Goals and Objectives
Risk management
Register/ top ten
strategic risks
Strategy review
Risk Management
workshop
Annually reviewed
Strategic Plan
Updated Risk
Register
4.1.8 Number of Compliance
Reports
Compliance
Corporate
performance reports
Corporate
Performance
Monitoring and
Evaluation System
Legislation
Compliance
checklist
Reporting
Framework
Compliance
Corporate
Performance
Reports (Annual,
Quarterly and
Midterm).
Page | 35
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
4.1.9 Development and
Implementation
Communication and
Marketing Strategy
Corporate
Communication;
Public Relations and
Marketing Plan
Communication,
Public Relations
and Marketing
Strategy
Stakeholder
Relations Event
Project/Enterprise
Launches
Ntinga Quarterly
Newsletter
Information Indaba
Study Tours/Visits
Approved and
implemented
Communication and
Marketing Strategic
Plan
4.1.10 Implementation of
Performance Management
monitoring and evaluation
Number of
Management and
Extended
Management
Meetings
Performance
Management
Workshops
Weekly and
monthly MANCO
and Extended
Management
Meetings
Attendance
Registers, Minutes
of Management and
Extended
Management
Committee Meetings
4.1.11 Number of Board and
Board Committee Meetings
attended
Attendance of :
o Board and Board
Committee
meetings.
o Ntinga Annual
General Meeting
o Shareholders
Meetings
Board and Board
Committee
Meetings
Signed minutes of:
o Board and Board
Committee
meetings.
o Ntinga Annual
General Meeting
o Shareholders
Meetings
Page | 36
Strategic Objectives
Key Performance Indicators
Interventions
Catalytic Projects Means of
Verification
4.2 Create and Maintain
administrative
capacity through
recruitment, PMS and
good governance for
effective and
functioning of SOC
4.2.1 Number of
development
conducted
skills
initiative
Implementation WSP
of Training Development
and Adopted WSP training reports
and
4.2.2 Number of budgeted
vacant posts filled
Recruitment of critical posts
Filling of Critical funded posts
Appointment Letters
4.2.3 Number of Performance
Agreements signed
Signing Performance Agreements by Senior Managers
of
all
Signing and monitoring of PMS
PMS Quarterly review reports
4.2.4 ICT Master Plan
developed and approved
by the Board
Development of ICT Master Plan
Develop ICT Master Plan
Signed ICT Master
Plan
Board Resolution
4.2.5 Business Continuity Plan
developed and approved
by the Board
Development of Business Continuity Plan
Develop Business Continuity Plan
Signed Business
Continuity Plan
Board Resolution
Page | 37
17. PERFORMANCE TARGETS TABLE 8: PERFOMANCE TARGETS
STRATEGIC GOAL: 1
Sustainable Water Services (water supply and sanitation) Systems.
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance
Target
2020/2021
1.1 Provide water
related services
to the peri-
urban and rural
communities
within the O.R.
Tambo District
by refurbishing
and maintaining
schemes.
1.1.9 Number of
refurbished
non- functional
schemes
353 refurbished
non-functional
schemes
None, New Target
83 refurbished noon-
functional schemes
120 refurbished non-
functional schemes
150 refurbished non-
functional schemes
1.1.10 A
percentage of
community
taps with
potable water
50% of
community taps
with potable
water
None,
NewTarget
5% of community
taps with potable
water
20% of community
taps with potable
water
25% of community
taps with potable
water
1.1.11 Percentage
of water
interruptions
lasting longer
than 24 hours.
25% water
interruptions
lasting longer
than 24 hours.
None,
New Target.
5% of water
interruptions lasting
longer than 24 hours.
10% of water
interruptions lasting
longer than 24 hours.
10% of water
interruptions lasting
longer than 24 hours.
1.1.12 Percentage
of water
samples that
conform to
SANS 241:
2011 water
50% of water
samples that
conform to
SANS 241:
2011 water
standards.
None,
New Target.
10% of water
samples that
conform to SANS
241: 2011 water
quality standard.
15% of water
samples that
conform to SANS
241: 2011 water
quality standard.
25% of water
samples that
conform to SANS
241: 2011 water
quality standard.
Page | 38
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance
Target
2020/2021
standards.
1.1.13 Percentage
of water
revenue
collected from
consumers.
70% None,
New Target.
60% of water
revenue collected
from consumers.
70% of water
revenue collected
from consumers.
1.1.14 Percentage
of water
schemes
operated and
maintained in
accordance
with approved
Operations
and
Maintenance
Plan.
50% of water
schemes
operated and
maintained in
accordance with
approved
Operations and
Maintenance
Plan.
None, New
Target
10% of water schemes operated and maintained in accordance with
approved Operations and
Maintenance Plan.
15% of water
schemes operated
and maintained in
accordance with
approved
Operations and
Maintenance Plan.
25% of water
schemes operated
and maintained in
accordance with
approved
Operations and
Maintenance Plan.
1.1.15 Percentage
of allocated
sanitation
social
facilitation
projects
implemented
in accordance
90% of allocated
sanitation social
facilitation
projects
implemented in
accordance with
approved
implementation
None, New
Target
30% of allocated sanitation social
facilitation projects implemented in accordance with
approved implementation
plan.
30% of allocated
sanitation social
facilitation projects
implemented in
accordance with
approved
implementation
plan.
30% of allocated
sanitation social
facilitation projects
implemented in
accordance with
approved
implementation
plan.
Page | 39
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance
Target
2020/2021
with approved
implementatio
n plan.
plan.
1.1.16 Percentage
of reported
water leaks
repaired within
48 hours.
90% Percentage
of reported
water leaks
repaired within
48 hours.
None, New
Target
30 Percentage of reported water leaks repaired
within 48 hours.
30 Percentage of
reported water
leaks repaired
within 48 hours.
30 Percentage of
reported water
leaks repaired
within 48 hours.
1.2 Provide
accurate &
timely billing
services to all
the customers
serviced by
Ntinga
1.2.1 Database of
water services
end users in
peri-urban
areas of
Mthatha KSD.
50% of water
services end
users are
captured in the
database of
Ntinga for billing
purposes.
New target 10 % of water
services end users in
peri-urban areas of
KSD are captured in
the Ntinga database
for billing purposes
by June 2019.
20 % of water
services end users in
peri-urban areas of
KSD are captured in
the Ntinga database
for billing purposes
by 30 June 2020.
20 % of water
services end users in
peri-urban areas of
KSD are captured in
the Ntinga database
for billing purposes
by 30 June 2021.
1.2.2 Percentage of
customers
within KSD peri-
urban areas
billed for the
consumption of
water
50 % of water
services end
users in KSD peri-
urban areas are
billed for water
services
consumption
by 30
June 2020.
New target 10% (businesses
only) of water
services end users in
peri urban areas of
KSD are billed for
water services
consumption by 30
June 2019.
20% of water
services end users in
peri urban areas of
KSD are billed for
water services
consumption by 30
June 2020.
20% of water
services end users in
peri urban areas of
KSD are billed for
water services
consumption by 30
June 2021.
1.2.3 A functional 24
hour customer
care call centre
is in place
Secure
independent lines
for call centre and
market them.
New target No target set Secure independent
lines for a 24 hour
call centre and
market them
20% of received calls
are recorded and
processed to the
response staff by
June 2021.
Page | 40
STRATEGIC GOAL: 2 Enhanced and Enabled Full Value Chains (upstream and downstream) for
Agricultural Produce, Markets, Abattoirs and Aquaculture.
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance
Target
2020/2021
Performance
Target
2.1 Improve
productivity
and profitability
of Umzikantu
Abattoir by 30
June 2021.
2.1.1 Number of
livestock units
slaughtered for
communities,
butcheries, and
other meat
retailers.
2050 Units 500 Units 550 Livestock units
slaughtered for
communities,
butcheries, and
others.
700 Livestock units
slaughtered for
communities,
butcheries, and
others.
800 Livestock units
slaughtered for
communities,
butcheries, and
others.
2.1.2 Number of
livestock units
slaughtered for
sale, towards
abattoir full
capacity.
8405 Units 450 Units 2505 Livestock units
slaughtered for sale,
towards abattoir full
capacity.
2750 Livestock units
slaughtered for sale,
towards abattoir full
capacity.
3150 Livestock units
slaughtered for sale,
towards abattoir full
capacity.
2.1.3 Revenue
generated from
meat sales and
slaughter fees.
R104 136 738.00 R6 208 000.0 0
R31 434 738.00
Revenue generated
from meat sales and
slaughter fees.
R33 911 100.00
Revenue generated
from meat sales and
slaughter fees.
R38 790 900.00
Revenue generated
from meat sales and
slaughter fees.
2.1.4 Percentage
gross profit
margin
generated from
meat sales.
20 % 18% 20% Gross profit
margin generated
from meat sales.
20% Gross profit
margin generated
from meat sales.
20% Gross profit
margin generated
from meat sales.
2.2 Improve
functionality
and viability of
Kei Fresh
2.2.1 Tonnage of
agricultural
produce sold by
Market Agents.
101 698 Tons 2 012 Tons. 19 742 Tons of
agricultural produce
sold by Market
Agents.
38 246 Tons of
agricultural produce
sold by Market
Agents.
43 710 Tons of
agricultural produce
sold by Market
Agents.
Page | 41
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance
Target
2020/2021
Performance
Target
Produce Market
(KFPM) by
initially
focusing and
targeting
linkages of fruit
and vegetable
industry supply
chains by 30
June 2021.
2.2.2 Revenue
generated from
5% commission
of agricultural
produce sold.
R16 800 000 R331 337 R3 300 000 Revenue
generated from 5%
commission of
agricultural produce
sold.
R6 300 000 Revenue
generated from 5%
commission of
agricultural produce
sold.
R7 200 000 Revenue
generated from 5%
commission of
agricultural produce
sold.
2.3 Utilise Adam
Kok Farms as a
production hub
for agricultural
produce.
2.3.1 Number of cattle
produced and
sold to
Umzikantu
Abattoir and
other markets.
2750 Cattle 516 Cattle sold and sold
700 Cattle produced
and sold.
780 Cattle produced
and sold.
870 Cattle produced
and sold.
2.3.2 Revenue
generated from
livestock (cattle)
produced and
sold to
Umzikantu
Abattoir and
other markets.
R23 170 000 R5 035 770 revenue generated.
R7 000 000
generated from cattle
produced and sold to
Umzikantu Abattoir
and other markets.
R 7 700 000
generated from cattle
produced and sold to
Umzikantu Abattoir
and other markets.
R8 470 000
generated from cattle
produced and sold to
Umzikantu Abattoir
and other markets..
2.3.3 Percentage
gross profit
margin
generated from
livestock (cattle)
produced and
sold to
Umzikantu
30% 20% Gross
profit margin.
20% Gross profit
margin generated
from cattle produced
and sold to
Umzikantu Abattoir.
25% Gross profit
margin generated
from cattle produced
and sold to
Umzikantu Abattoir.
30% Gross profit
margin generated
from cattle produced
and sold to
Umzikantu Abattoir.
Page | 42
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance
Target
2020/2021
Performance
Target
Abattoir and
other markets.
2.3.4 Number of
hectares utilised
for crop
production.
100 hectares
utilised for crop
production.
Zero
hectares
utilised for
crop
production.
25 hectares utilised
for crop production.
50 hectares utilised
for crop production.
100 hectares utilised
for crop production.
2.4 Establishment
of a profitable Dairy
business.
2.4.1 Feasibility
study for a viable
Dairy business.
Adoption and
implementation of
the of the study
None. New
target
Conduct feasibility
study for a viable
Dairy business.
No target set No target set
STRATEGIC GOAL: 3 Diversified Partnerships that Promote Inclusive Socio-economic Development and
Growth.
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance Target
3.1 Optimize
linkages of
meat industry
value chain that
enhance
functionality of
Umzikantu
Abattoir by 30
June 2021.
3.1.1 Number of
signed and
implemented
partnership
agreements that
enhance
functionality of
Umzikantu
Abattoir.
3 Partnership
agreements.
No partnership agreements
1 Partnership
agreements that
enhance functionality
of Umzikantu
Abattoir signed and
implemented.
1 Partnership
agreements that
enhance functionality
of Umzikantu
Abattoir signed and
implemented.
1 Partnership
agreements that
enhance functionality
of Umzikantu
Abattoir signed and
implemented.
3.1.2 Number of
signed and
implemented off-
3 Off- take
agreements.
No off-take
agreement.
5 Off-take
agreement for sale of
meat from Umzikantu
5 Off-take
agreement for sale of
meat from Umzikantu
5 Off-take
agreement for sale of
meat from Umzikantu
Page | 43
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance Target
take agreements
for sale of meat
from Umzikantu
Abattoir.
Abattoir signed and
implemented.
Abattoir signed and
implemented.
Abattoir signed and
implemented.
3.2 Optimize
linkages of fruit
and vegetable
industry value
chain in
support of Kei
Fresh Produce
Market by 30
June 2021.
3.2.1 Number of
signed and
implemented
partnership
agreements that
enhance
functionality of
Kei Fresh
Produce Market.
3 Partnership
agreements.
No partnership agreements
1 Partnership
agreement that
enhance functionality
of Kei Fresh Produce
Market signed and
implemented.
1 Partnership
agreement that
enhance functionality
of Kei Fresh Produce
Market signed and
implemented.
1 Partnership
agreement that
enhance functionality
of Kei Fresh Produce
Market signed and
implemented.
3.2.2 Number of
signed and
implemented off-
take agreements
with local non-
commercial
farmers to supply
KFPM with
agricultural
produce.
3 Off- take
agreements.
No off-take
agreements.
3 of off-take
agreements signed
and implemented
with local non-
commercial farmers
to supply KFPM with
agricultural produce.
3 of off-take
agreements signed
and implemented
with local non-
commercial farmers
to supply KFPM with
agricultural produce.
3 of off-take
agreements signed
and implemented
with local non-
commercial farmers
to supply KFPM with
agricultural produce.
3.3 Optimize
linkages of a
rapid livestock
production
industry value
chain that
enhance
functionality of
3.3.1 Number of
signed and
implemented
partnership
agreements that
enhance
functionality of
Adam Kok
3 Partnership
agreements.
No partnership agreement
1 Partnership
agreement that
enhance functionality
of Adam Kok Farms
function signed and
implemented.
1 Partnership
agreement that
enhance functionality
of Adam Kok Farms
function signed and
implemented.
1 Partnership
agreement that
enhance functionality
of Adam Kok Farms
function signed and
implemented.
Page | 44
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance Target
Adam Kok
Farms by 30
June 2021.
Farms.
3.3.2 Number of
signed and
implemented off-
take agreements
for purchase of
livestock
produced by
Umzikantu
Abattoir.
None.
New Target.
No off-take
agreement.
1 Off-take agreement
for sale of livestock
produced by
Umzikantu Abattoir
signed and
implemented.
1 Off-take agreement
for sale of livestock
produced by
Umzikantu Abattoir
signed and
implemented.
1 Off-take agreement
for sale of livestock
produced by
Umzikantu Abattoir
signed and
implemented.
3.4 Enhance the
quality and
quantum of
foreign and
domestic trade
and investment
through
sustainable
partnerships by
30 June 2021.
3.4.1 Number of new
Foreign Direct
Investors
facilitated into
O.R. Tambo
region.
3 FDI’s None. 1 New Foreign Direct
Investor facilitated
into O.R. Tambo
region.
1 New Foreign Direct
Investors facilitated
into O.R. Tambo
region.
1 New Foreign Direct
Investors facilitated
into O.R. Tambo
region.
3.4.2 Number of
existing Foreign
Direct Investors
retained for more
than 12 months
in the O.R.
Tambo region.
2 FDI’s None. N/A 1 Existing Foreign
Direct Investor
retained for more
than 12 months in
the O.R. Tambo
region.
1 Existing Foreign
Direct Investors
retained for more
than 12 months in
the O.R. Tambo
region.
Page | 45
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance Target
3.4.3 Number of
existing Foreign
Direct Investor
(FDI) expanded
(financially and
non-financial) in
the O.R. Tambo
region.
1 FDI None. N/A N/A 1 Existing Foreign
Direct Investor (FDI)
expanded (financially
and non-financial) in
the O.R. Tambo
region.
3.4.4 Rand value of
total FDI
attracted into
O.R. Tambo
region.
R70 Million None. R10 million FDI
attracted into O.R.
Tambo region.
R20 million FDI
attracted into O.R.
Tambo region.
R40 million FDI
attracted into O.R.
Tambo region.
3.4.5 Number of new
Domestic
Investors
attracted into
O.R. Tambo
region.
3 Domestic
Investors
None. 1 New Domestic
Investor attracted
into O.R. Tambo
region.
1 New Domestic
Investors attracted
into O.R. Tambo
region.
1 New Domestic
Investors attracted
into O.R. Tambo
region.
3.4.6 Number of
existing
Domestic
Investors
retained for more
than 12 months
in the O.R.
Tambo region.
3 Domestic
Investors
None. N/A 1 Existing Domestic
Investor retained for
more than 12 months
in the O.R. Tambo
region.
2 Existing Domestic
Investors retained for
more than 12 months
in the O.R. Tambo
region.
3.4.7 Number of
existing
Domestic
Investors
expanded
1 Domestic
Investor
None. N/A N/A 1 Existing Domestic
Investor expanded
(financially and non-
financial) in the O.R.
Tambo region.
Page | 46
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance Target
(financially and
non-financial) in
the O.R. Tambo
region.
3.4.8 Rand value of
total Domestic
Investment
attracted into
O.R. Tambo
region.
R17 Million None. R2 Million Domestic
Investment attracted
into O.R. Tambo
region.
R5 Million Domestic
Investment attracted
into O.R. Tambo
region.
R10 Million Domestic
Investment attracted
into O.R. Tambo
region.
3.5 Develop,
support and
promote
SMME’s as a
catalyst for
economic
development
and growth and
innovation by
30 June 2021.
3.5.1 Number of new
sustainable
SMME’s
supported.
48 SMME’s None. 14 New sustainable
SMME’s facilitated.
16 New sustainable
SMME’s facilitated.
18 New sustainable
SMME’s facilitated
facilitated.
3.5.2 Number of
existing SMME’s
promoted and
supported to be
sustainable.
39 SMME’s None. 9 Existing SMME’s
promoted and
supported to be
sustainable.
14 Existing SMME’s
promoted and
supported to be
sustainable.
16 Existing SMME’s
promoted and
supported to be
sustainable.
3.5.3 Number of
Market
opportunities
successfully
created for
SMME’s.
42 Opportunities None. 12 Market
opportunities
successfully created
for SMME’s.
14 Market
opportunities
successfully created
for SMME’s.
16 Market
opportunities
successfully created
for SMME’s.
3.5.4 Number of
decent (or
sustainable) jobs
created from
Ntinga supported
SMME’s.
252 Jobs None. 74 Decent (or
sustainable) jobs
created from Ntinga
supported SMME’s.
84 Decent (or
sustainable) jobs
created from Ntinga
supported SMME’s.
94 Decent (or
sustainable) jobs
created from Ntinga
supported SMME’s.
Page | 47
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance Target
3.5.5 Number of Joint
ventures,
technology
transfers and
partnerships
facilitated
between local
and domestic or
foreign investor
to promote
localisation and
empowerment.
6 JV’s None. 1 Joint venture,
technology transfer
and partnership
facilitated between
local and domestic or
foreign investor to
promote localisation
and empowerment.
2 Joint ventures,
technology transfers
and partnerships
facilitated between
local and domestic or
foreign investor to
promote localisation
and empowerment.
3 Joint ventures,
technology transfers
and partnerships
facilitated between
local and domestic or
foreign investor to
promote localisation
and empowerment.
3.6 Develop,
support and
empower Co-
operatives as a
catalyst for
economic
development
and growth and
innovation by
30 June 2021.
3.6.1 Facilitation
through
partnerships
establishment
and maintenance
of a Co-
operatives
Development
Centre in the
O.R. Tambo
region.
1 Facilitation None. Facilitate through
partnerships
establishment of
a Co-operatives
Development Centre
in the O.R. Tambo
region.
Maintain and ensure
functionality and
sustainability of the
Co-operatives
Development Centre.
Maintain and ensure
functionality and
sustainability of the
Co-operatives
Development Centre.
3.6.2 Number of
sustainable
operatives
facilitated
supported.
new
Co-
and
36 Co-operatives None. 4 New sustainable
Co-operatives
facilitated and
supported.
16 New sustainable
Co-operatives
facilitated and
supported.
16 New sustainable
Co-operatives
facilitated and
supported.
3.6.3 Number
existing
operatives
promoted
of
Co-
and
29 Co-operatives 29 Co-
operatives.
5 Existing Co-
operatives promoted
and supported to be
sustainable.
9 Existing Co-
operatives promoted
and supported to be
sustainable.
15 Existing Co-
operatives promoted
and supported to be
sustainable.
Page | 48
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance Target
supported to be
sustainable.
3.6.4 Number of
market
opportunities
successfully
created for Co-
operatives.
21 Opportunities None. 3 Market
opportunities
successfully created
for Co-operatives.
6 Market
opportunities
successfully created
for Co-operatives.
12 Market
opportunities
successfully created
for Co-operatives.
3.6.5 Number of
decent (or
sustainable) jobs
created from
Ntinga supported
SMME’s.
64 Jobs None. 4 Decent (or
sustainable) jobs
created from Ntinga
supported SMME’s.
24 Decent (or
sustainable) jobs
created from Ntinga
supported SMME’s.
36 Decent (or
sustainable) jobs
created from Ntinga
supported SMME’s.
3.7 Promote the
O.R. Tambo Region
as tourism
destination.
3.7.1 Number of
tourism events
and exhibitions
attended.
Attend 6 tourism events regionally, provincially and nationally
None. New
Target.
Attend and exhibit in
2 tourism events
regionally,
provincially and
nationally with trade
show reports
Attend and exhibit in
2 tourism events
regionally,
provincially and
nationally with trade
show reports
Attend and exhibit in
2 tourism events
regionally,
provincially and
nationally, with trade
show reports
3.7.2 Number
marketing
developed.
of
tools
Developed and
distributed
marketing
None. New
Target.
Develop
distribute
marketing
and
500
tools
Develop
distribute
marketing
and
600
tools
Develop
distribute
marketing
and
700
tools
material nationally nationally and nationally and nationally and
and globally globally globally globally
3.8 Provide training
and skills
development to the
co-operatives and
targeted groups
3.8.1 Number
training
interventions
provided
unemployed
of
to
Provide 12
training sessions
for co-operatives
skills
development
3 Training
sessions
provided for
co-operatives
3 Trainings to be
provided for Co-
operatives
3 Trainings to be
provided for Co-
operatives
3 Trainings to be
provided for Co-
operatives
Page | 49
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance Target
within the region. youth, women,
disabled, ex-
mineworkers and
military veterans.
Page | 50
STRATEGIC GOAL: 4 Dynamic, Capable and Sustainable State Owned Company.
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance
Target
4.1 Ensure
Business
Processes,
Tools and
Systems that
support
implementation
of the Strategy
and continued
viability of the
organisation by
30 June 2020.
4.1.1 Sound Financial
Management and
accurate
reporting
Final Annual
Budget
approved by 30
May of each
year.
Final Annual
Budget
approved by
30 May.
Final Annual Budget
approved by 30 May.
Final Annual Budget
approved by 30 May.
Final Annual Budget
approved by 30 May.
Prepare MFMA
S87(11)
monthly finance
reports within 7
working days
after the end of
the month.
Monthly
finance
reports
prepared
within 7
working days
after the end
of the month.
Prepare MFMA
S87(11) monthly
finance reports within
7 working days after
the end of the month.
Prepare MFMA
S87(11) monthly
finance reports within
7 working days after
the end of the month.
Prepare MFMA
S87(11) monthly
finance reports within
7 working days after
the end of the month.
Prepare
quarterly
finance reports
within 30 days
after the end of
the quarter.
Quarterly
finance
reports
prepared
within 30
days after the
end of the
quarter.
Prepare quarterly
finance reports within
30 days after the end
of the quarter.
Prepare quarterly
finance reports within
30 days after the end
of the quarter.
Prepare quarterly
finance reports within
30 days after the end
of the quarter.
4.1.2 Rand value of
investment
income collected.
R7,6m
investment
income
collected.
R2 070 950
investment
income
collected.
R2,5m investment
income collected.
R2,5m investment
income collected.
R2,6m investment
income collected.
4.1.3 Annual Financial
Statements
prepared by 31
Prepare Annual
Financial
Statements by
Annual
Financial
Statements
Prepare Annual
Financial Statements
by 31 August.
Prepare Annual
Financial Statements
by 31 August.
Prepare Annual
Financial Statements
by 31 August.
Page | 51
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance
Target
August. 31 August each
year.
prepared by
31 August
each year.
4.1.4 % of suppliers
paid within 30
days from date of
invoice.
100% of
suppliers paid
within 30 days
from date of
invoice.
100% of
suppliers paid
within 30
days from
date of
invoice.
100% of suppliers
paid within 30 days
from date of invoice.
100% of suppliers
paid within 30 days
from date of invoice.
100% of suppliers
paid within 30 days
from date of invoice.
4.1.5 % procurement
done with local
suppliers.
60% value of
procurement
done with local
suppliers each
year.
New target,
never
measured
before.
60% value of
procurement done
with local suppliers.
60% value of
procurement done
with local suppliers.
60% value of
procurement done
with local suppliers.
4.1.6 Asset Register
compiled and
updated.
Asset Register
compiled and
updated
monthly.
Asset
Register
compiled and
updated
monthly.
Asset Register
compiled and
updated monthly.
Asset Register
compiled and
updated monthly.
Asset Register
compiled and
updated monthly.
4.1.7 Annual review of
the strategic
plan.
Annual review
of strategic plan
by 30 April
each year.
Annual review
of strategic
plan by 31
May.
Annual review of
strategic plan by 30
April.
Annual review of
strategic plan by 30
April.
Annual review of
strategic plan by 30
April.
4.1.8 Number of
compliance
reports.
Quarterly;
Midterm;
Annual
Performance
reports
submitted to
the Board and
ORTDM each
4 Quarterly
performance
reports;
1Midterm
performance
report; 1
Annual
Performance
4 Quarterly performance reports; 1Midterm performance report; 1 Annual Performance reports submitted to the Board and ORTDM
4 Quarterly performance reports; 1Midterm performance report; 1 Annual Performance reports submitted to the Board and ORTDM
4 Quarterly performance reports; 1Midterm performance report; 1 Annual Performance reports submitted to the Board and ORTDM
Page | 52
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance
Target
year reports
submitted to
the Board and
ORTDM
4.1.9 Development
and
implementation
of
communication
and marketing
strategy.
Developed,
approved and
implemented
communication
and marketing
strategy
None. New
target
Develop, approve
and implement
communication and
marketing strategy
Reviewed, approved
and implemented
communication and
marketing strategy
Reviewed, approved
and implemented
communication and
marketing strategy
4.1.10 Implementation
of Performance
Management
System,
monitoring and
evaluation.
Effective
monthly
Management
and extended
management
meetings each
year
Monthly Senior
Management and Extended management
meetings
12 Monthly Senior
Management and
Extended
management
meetings
12 Monthly Senior
Management and
Extended
management
meetings
12 Monthly Senior
Management and
Extended
management
meetings
4.1.11Number of Board
and Board
Committee
Meetings
attended.
Effective
Shareholders;
AGM; Board
and Board
committee
meetings
annually
2 Shareholders meetings;8 ARC meetings; 1 AGM; 8 HRRC meetings; 4 SDIC meetings
5 Board meetings; 6
ARC meetings; 4
HRRC meetings; 4
SDIC meetings; 2
SEC meetings;
2
Shareholders
Meetings and 1 AGM
5 Board meetings; 6
ARC meetings; 4
HRRC meetings; 4
SDIC meetings; 2
SEC meetings;
2
Shareholders
Meetings and 1 AGM
5 Board meetings; 6
ARC meetings; 4
HRRC meetings; 4
SDIC meetings; 2
SEC meetings; 2
Shareholders
Meetings and 1 AGM
4.2 Create and
Maintain
administrative
capacity through
4.2.1 Number of
skills
development
interventions
45 6 Training
interventions
conducted in
2017/18
Conduct 10
Development
Interventions
Skills Conduct 15
Development
Interventions
Skills Conduct 20
Development
Interventions
Skills
Page | 53
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance
Target
recruitment, PMS
and good
governance for
effective and
functioning of SOC.
conducted
4.2.2 Number of
budgeted
vacant posts
filled
36 121 11 budgeted vacant
posts filled
12 budgeted vacant
posts filled
13 budgeted vacant
posts filled
4.2.3 Number of
Performance
Agreements
signed
157 5
performance
agreements
signed by
senior
managers
Performance
agreements signed
by Senior and Middle
Management
Performance
Management
Cascaded to level C1
Performance
Management
Cascaded to all
employees
4.2.4 Upgraded
Server Room
by June 2019
Upgrade Server
room to comply
with ISO 27001
data centre
standards
Server room
not compliant
with ISO
27001 data
centre
standards
Construction of
server room with
Fireproof Ceiling and
Door, Biometric
Access Raised floor,
Air Conditioning
Cabinet Switch
Cleanup
No Target Set
4.2.5 Offsite Backup
Domain
Controller
deployed by
June 2018
Deployment of
Backup Domain
Controller
Offsite
Backup
Domain
Controller is
not in place
Acquisition and
Deployment of
Offsite Backup
Domain Controller
No Target Set No Target Set
4.2.6 ICT Master
Plan
developed and
approved by
the Board
Development
and approval
of ICT Master
Plan
ICT Master
Plan is not in
place
Develop ICT
Master Plan and
submit to the Board
for approval
Implementation of
ICT Master Plan
Implementation of
ICT Master Plan
4.2.7 Business
Continuity
Development Business Develop Business No Target Set No Target Set
Page | 54
Strategic
Objectives
Key Performance
Indicators
3 Year Acc.
Performance
Targets
Baseline
2017/18
2018/2019
Performance Target
2019/2020
Performance Target
2020/2021
Performance
Target
Plan
developed and
approved by
the Board
and approval
of Business
Continuity
Plan
Continuity
Plan is not in
Place
Continuity Plan and
submit to the Board
for approval
4.2.8 Number of
new offices
provided
10 new Offices
provided
Current Office
Space
saturated
Procurement of
park home
Conversion of
undercover parking
into offices
No Target Set No Target Set
18. FUNCTIONAL AND OPERATIONAL ORGANISATIONAL STRUCTURE
Below is the Functional and Operational Organogram that will be able to deliver on the Strategic Business Plan
particularly for the first three years (2018/19 – 2020/2021):
Page | 55
Board of Directors and Committees
Board of Directors and its Committees
Strategic Support to the CEO
Board of Directors
(Chairperson)
NSEC
(Chairperson) SDIC
(Chairperson)
HRRC (Chairperson)
ARC
(Chairperson)
Chief Executive Officer (1)
Project Manager: PMO
(1)
Manager: Office
of CEO (1)
Internal Audit Manager (1)
Company Secretary
(Legal & Compliance)
Systems Engineer:
Water Services (1)
Head: Trading Enterprises (1)
CFO: Budget and
Treasury Office (1)
Head: Corporate
Services (1)
Board of Directors & Committees
Strategic Support to CEO
Senior Management Shared Services
Page | 56
2018/19 ANNUAL PERFORMANCE PLAN (SDBIP)
The Service Delivery and Budget Implementation Plan (SDBIP) for 2018/19 financial year, which is the Annual
Performance Plan is herein attached as “Annexure A”.
18. FINANCIAL IMPLICATIONS
This section highlights financial plan for the Entity that will give effect to the implementation of the strategy. The financial
plan is premised on sustainability and turning around loss making trading centres to be profitable and financially viable.
18.1 Statement of Financial Position
TABLE 9: STATEMENT OF FINANCIAL POSITION
Description
2014/2015
2015/2016
2016/2017
Current Year Budget 2017/2018
Medium Term Revenue and Expenditure Framework
Rands
Audited Outcome
Audited Outcome
Audited Outcomes
Original Budget
Adjusted Budget
Full Year Forecast
Budget year 2018/2019
Budget year 2019/2021
Budget year 2021/2021
ASSETS Current assets Cash and Cash Equivalents 29 934 387 30 240 288 36 254 354 15 761 548 21 875 529 32 311 725 25 866 117 30 717 151 35 441 164
Receivables from Exchange Transactions
12 298
1 600
20 899
1 050 000
1 050 000
1 050 000
1 100 000
300 000
200 000
Receivables from Non-Exchange Transactions
503 020
875 729
6 208 828
300 000
300 000
300 000
200 000
200 000
150 000
Unpaid Conditional Government Grants and Receipts
5 446 394
-
-
-
-
-
-
-
Taxes (VAT)
-
-
169 940
-
-
-
-
-
-
Inventory
435 454
96 547
199 262
100 000
100 000
100 000
120 000
200 000
300 000
Total current assets 36 331 553 31 214 164 42 853 282 17 211 548 23 325 529 33 761 725 27 286 117 31 417 151 36 091 164
Page | 57
Description
2014/2015
2015/2016
2016/2017
Current Year Budget 2017/2018
Medium Term Revenue and Expenditure Framework
Rands
Audited Outcome
Audited Outcome
Audited Outcomes
Original Budget
Adjusted Budget
Full Year Forecast
Budget year 2018/2019
Budget year 2019/2021
Budget year 2021/2021
Non- current assets Property, plant and equipment 4 531 567 3 526 999 4 265 631 16 547 458 18 128 025 11 523 353 18 431 053 17 735 753 18 320 453
Biological assets
608 775
627 701
760 051
630 000
630 000
630 000
210 000
-
-
Intangible assets
65 597
37 294
814 289
21 272
21 272
21 272
200 000
-
90 000
Total non- current assets 5 205 939 4 191 994 5 839 972 17 198 730 18 779 297 12 174 625 18 841 053 17 735 753 18 410 453
TOTAL ASSETS 41 537 492 35 406 158 48 693 255 34 410 278 42 104 826 45 936 350 46 127 170 49 152 904 54 501 617
LIABILITIES Current liabilities Current portion of long-term liabilities
39 973
-
-
-
-
-
-
-
-
Taxes (VAT)
280 193
191 996
-
300 000
300 000
300 000
350 000
390 000
390 000
Unspent Conditional Government Grants and Receipts
6 466 961
452 729
6 442 340
400 000
400 000
400 000
500 000
500 000
-
Payables from exchange transactions
2 074 865
2 470 785
2 681 580
900 000
900 000
900 000
800 000
850 000
700 000
Payables from non-exchange transactions
446 973
446 973
446 973
-
-
-
-
-
Current employee benefits
2 994 952
3 325 072
3 547 854
3 000 000
800 000
800 000
800 000
750 000
500 000
Total current liabilities 12 303 917 6 887 555 13 118 747 4 600 001 2 400 001 2 400 001 2 450 000 2 490 000 1 590 000
Non- current liabilities
Borrowing
-
-
-
-
-
-
Total non- current liabilities
-
-
-
-
-
-
TOTAL LIABILITIES 12 303 917 6 887 555 13 118 747 4 600 001 2 400 001 2 400 001 2 450 000 2 490 000 1 590 000
NET ASSETS 29 233 575 28 518 603 35 574 508 29 810 278 39 704 826 43 536 349 43 677 170 46 662 904 52 911 617
COMMUNITY WEALTH/EQUITY Accumulated Surplus/(Deficit) 29 233 575 28 518 603 35 574 508 29 810 278 39 704 826 43 536 349 43 677 170 46 662 904 52 911 617
TOTAL COMMUNITY 29 233 575 28 518 603 35 574 508 29 810 278 39 704 826 43 536 349 43 677 170 46 662 904 52 911 617
Page | 58
Description
2014/2015
2015/2016
2016/2017
Current Year Budget 2017/2018
Medium Term Revenue and Expenditure Framework
Rands
Audited Outcome
Audited Outcome
Audited Outcomes
Original Budget
Adjusted Budget
Full Year Forecast
Budget year 2018/2019
Budget year 2019/2021
Budget year 2021/2021
WEALTH/EQUITY
18.2 Statement of Financial Performance
TABLE 10: STATEMENT OF FINANCIAL PERFORMANCE
Description
2014/2015
2015/2016
2016/2017
Current Year Budget 2017/18
2018/19 Medium Term Revenue &
Expenditure Framework
R thousands
Audited Outcome
Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year Forecast
Budget year 2018/2019
Budget year 2019/2021
Budget year 2021/2021
Revenue by Source
Abattoir Revenue 847 612 1 894 935 2 607 022 4 560 000 6 943 710 6 046 420 31 941 738 34 509 100 39 472 900
Dairy Farm Revenue 180 543 324 138 255 149 400 000 400 000 287 390 - - -
Kei Fresh Produce Market revenue - - - 4 430 000 1 539 000 1 308 438 7 318 958 8 615 680 9 506 934
Interest earned - external investments 1 705 759 2 165 234 3 053 611 2 000 000 2 000 000 2 070 950 2 500 000 2 500 000 2 600 000
Consultancy fees 913 564 685 511 - - - - 16 521 739 8 500 000 9 400 000
Grant Transfers Recognised (ORTDM GRANT)
39 803 125
38 324 034
46 665 607
33 404 203
41 200 171
37 611 988
27 053 509
28 460 292
29 940 227
Donations received 772 255 - - 508 434 666 834 10 097 413 169 477 - -
Other revenue 263 783 343 311 816 054 - 40 000 283 749 70 000 50 000 50 000
Adam Kok Farms revenue 272 005 3 240 000 5 435 770 2 916 284 7 900 000 8 690 000 9 559 000
Water Services revenue 3 310 639 10 000 000 10 000 000 1 937 878 17 043 478 20 500 000 25 000 000
Adjustments to biological assets 8 400 5 295 3 800 15 000 137 807 137807 50 000 55 000 50 000
Gains on disposal of PPE 316 327 163 336 237 146 - - - - - -
Total Revenue (excluding capital transfers and contributions)
44 811 368
43 905 794
57 221 033
58 557 637
68 363 292
62 560 509
110 568 899
111 880 072
125 579 062
Expenditure By Type
Page | 59
Description
2014/2015
2015/2016
2016/2017
Current Year Budget 2017/18
2018/19 Medium Term Revenue &
Expenditure Framework
R thousands
Audited Outcome
Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year Forecast
Budget year 2018/2019
Budget year 2019/2021
Budget year 2021/2021
Employee related costs 20 495 049 21 872 770 21 645 270 27 251 950 26 117 039 19 149 048 22 335 168 23 232 531 24 858 184
Board of Directors Allowances & re-imbursive costs
293 476
514 159
318 002
800 000
1 096 300
1 059 079
1 250 000
1 375 000
1 512 500
Board of Directors Travelling, Accommodation & other
260 171
205 240
684 888
600 000
486 133
565 876
510 000
561 000
617 100
Debt impairment - 61 391 27 875 - - - - - -
Depreciation & asset impairment 827 816 1 222 893 740 273 700 000 700 000 1 257 166 1 495 300 1 495 300 1 495 300
Finance charges 56 023 53 130 16 569 35 000 35 000 38 123 60 000 66 000 72 600
Repairs and Maintenance 210 018 142 886 113 324 300 000 245 000 177 064 240 000 264 000 285 120
Fresh Produce Market Operations 3 325 656 5 400 000 5 939 781 7 758 161 8 037 761 6 596 377 7 065 521 7 550 197 8 147 826
Abattoir Operations 1 138 511 2 184 830 3 008 047 4 133 662 5 898 096 7 725 881 30 668 366 32 858 590 37 159 810
Dairy Farm Operations 572 747 672 423 720 638 800 000 875 522 644 421 - - -
Adam Kok Farms Operations 5 713 943 5 313 181 7 936 689 4 930 500 8 027 927 8 087 507 9 387 416 10 118 690 9 946 693
Water Services 699 926 233 922 2 582 553 3 500 000 3 394 447 1 831 947 12 411 990 13 764 029 15 991 011
Special Projects (Transfers and Grants) 2 865 458 1 708 886 1 248 391 979 655 1 709 148 445 362 15 690 319 7 990 000 8 836 000
Operating Expenditure 4 484 218 5 075 960 5 066 117 6 710 600 7 565 600 6 810 817 9 214 000 9 564 000 10 348 804
Adjustments to Biological Assets 189 200 78 900 139 550 45 000 45 000 210 000 100 000 55 000 59 400
Total Expenditure 41 132 212 44 740 571 50 187 968 58 544 528 64 232 974 54 598 668 110 428 079 108 894 338 119 330 349
Surplus/ (Deficit) for the year 3 679 156 -834 777 7 033 065 13 109 4 130 317 7 961 841 140 820 2 985 734 6 248 713
Accumulated surplus at the beginning of the year
25 560 819
29 239 975
28 541 440
29 797 169
35 574 508
35 574 508
43 536 349
43 677 170
46 662 904
Accumulated surplus at the end of the year 29 239 975 28 405 198 35 574 505 29 810 278 39 704 826 43 536 349 43 677 170 46 662 904 52 911 617
Page | 60
19. KEY STRATEGIC RISKS
The Board of Ntinga monitors the risk through the Audit and Risk Committee (ARC).
The ARC bears accountability for ensuring that there is an effective risk management
process and systems within the SOC. At least on a quarterly basis, the ARC
recommends to the Board risk mitigation strategies and policies that need to be set,
implemented and monitored. Ntinga’s risk management philosophy is that, although
risks are owned by the CEO, they must be managed holistically by all departments. To
this end, all managers, Senior Managers in particular, are expected to manage, monitor,
evaluate risks within their area of responsibility and implement effective and efficient
internal controls. Actions to improve internal controls are further included in the Senior
Managers’ balanced score cards as well as performance agreements.
Our risk management strategy is guided by the principles of the enterprise-wide risk
management strategy in terms of which all identified risk areas are managed
systematically and continuously at organisational level. Accordingly, Ntinga has a risk
register, reviewed annually, which is treated as a risk management document of which
risks are constantly recorded and managed through the introduction of effective internal
controls and testing of those controls from time to time.
The risk register below reflects key top ten business risks, that need to be managed at
Strategic level, which if not managed properly, could result in Ntinga not being able to
achieve all or some of its strategic objectives and pre-determined goals. The following
are strategic risks that were identified, which could potentially hinder the effective and
full implementation of the strategy (note that these risks need to be aligned with Ntinga
Strategic Risk Register):
Page | 61
19.1 TABLE 11: TOP NINE (9) STRATEGIC RISKS REGISTER
Link to Objective
Risk No.
Risk Description
Risk Causes Consequences
Inh
ere
nt
Ris
k
Valu
e
Current Controls
Co
ntr
ol
Eff
ecti
ven
ess
Resid
ual
Ris
k
Valu
e
Action to Improve Management of the Risk
Action Owner Timeline
STRATEGIC GOAL 1: Sustainable Water Services (water supply and sanitation) Systems
Provide water related services to the per-urban & rural communities within the O.R. Tambo District by refurbishing and maintaining schemes.
Provide accurate & timely billing services to all the customers serviced by Ntinga
1 Inability to provide reliable water to peri urban and rural citizens of O.R. Tambo
1. Inadequate hydraulic and physical integrity of water infrastructure
2. Shortage of water due to draught and climate change
3. Insufficient budget for refurbishment operations and maintenance of capital infrastructure
4. Lack of expertise on implementation of the project
5. Inability to measure water losses
1. Compromised water service delivery.
2. Service delivery protests due to disgruntled community
3. Poor reputation due to promises not honoured.
20 1. Council approved Ntinga mandate
2. Developed Service Delivery Agreement (SDA)
3. Formal instructions to proceed with works
4. Assessment reports on 22 individual Water Schemes
5. Project implementation plans for the 22 individual Water Schemes
6. Approved Organogram
7. Signed
Performance Agreement(s)
8. Community awareness campaigns on protection of water infrastructure
Sa
tis
fac
tory
12 1. Development and submission for approval of Water Services Business Proposal to ORTDM
2. Facilitate appointment of relevant; qualified and competent water services personnel
3. Capacitation of personnel recently placed to water services
4. Development and implementation of Water Services Integrated Service Delivery Model, Policies and Plan and Standard Operating Procedures
5. Facilitate the signing of Shareholders Compact (Business Plan/Service Delivery Agreement) for 2018/19
6. Develop strategy on management of water losses
1. Head: Water Services
2. Head: Corporate Services
3. Head: Corporates Services
4. Head: Water Services
5. Chief Executive Officer
6. Head: Water Services
1. 30 Aug 18 2. 31 Jul 18 3. 30 Nov 18 4. 30 Sep 18 5. 01 Jul 18 6. 31 Dec 18
Page | 62
Link to Objective
Risk No.
Risk Description
Risk Causes Consequences
Inh
ere
nt
Ris
k
Valu
e
Current Controls
Co
ntr
ol
Eff
ecti
ven
ess
Resid
ual
Ris
k
Valu
e
Action to Improve Management of the Risk
Action Owner Timeline
2 Inability to provide safe water to peri urban and rural citizens of O.R. Tambo
1. Water Pollution 2. Lack of security
measures to limit unauthorised access to water facilities and equipment
3. Human capital constraints to conduct sampling and testing of water
1. Outbreak of water-borne diseases
2. Litigations against the Agency and Parent Municipality which could lead to financial losses
3. Service delivery protests due to disgruntled community
25 1. Water Safety Act. 2. Assessment
reports on 22 individual Water Schemes which outlines the security controls to the Schemes
3. Existing Water Scheme Operators
Weak 20 1. Development, approval and implementation of Water Safety Plan in consultation with the Parent Municipality
2. Development of Memorandum of Understanding (MOU) for promoting water safety in respect of standalone schemes operated and managed by Ntinga
3. Capacitation of personnel recently placed to Water Services Department
Head: Services
Water 1. 2. 3.
30 Sep 18 31 Jul 18 30 Nov 18
3 Inability to provide
affordable water to peri urban and rural citizens of O.R. Tambo
1. High level/rate of Indigents
2. High production costs
3. Inefficiency in the water provision value chain
4. Lack of approved Water By-laws
5. Lack of approved Water Implementation Plan
6. Yield testing not performed on the existing Water Schemes
7. Electricity outages (reliance to ESKOM)
1. Resistance by community to
pay for water services
2. Service delivery protests
3. Financial losses
25 1. Water Services Act 108 of 1997 and Regulations
2. National Treasury Circulars
3. ORTDM Indigent Policy
4. ORTDM Credit Control Policy
5. ORTDM Water Services By-laws
Sa
tis
fac
tory
15 1. Development, approval and
implementation of Water Communication Strategy and Plan
2. Develop tariffs for approval by ORTDM
1. Head: Water Services
2. Chief Financial Officer
1. 2.
30 Oct 18 30 Sep 18
Page | 63
Link to Objective
Risk No.
Risk Description
Risk Causes Consequences
Inh
ere
nt
Ris
k
Valu
e
Current Controls
Co
ntr
ol
Eff
ecti
ven
ess
Resid
ual
Ris
k
Valu
e
Action to Improve Management of the Risk
Action Owner Timeline
STRATEGIC GOAL 2: Enhanced and Enabled Full Value Chains (upstream and downstream) for Agricultural Produce, Markets, Abattoirs and Aquaculture
2.1 Improve productivity and profitability of Umzikantu Abattoir by 30 June 2021.
4 Inability to meet the set production volume targets
1. Insufficient livestock for slaughtering
2. Inadequate marketing capacity
3. Legislative environment
4. Poor maintenance of infrastructure
1. Loss of revenue due to penalties and litigations
2. Poor reputation of the Abattoir
3. Missed opportunities
4. Down grading of the Abattoir
20 1. Sourcing livestock from the Public, Auction and Adam Kok
2. Existing slaughter facility
3. Documented Abattoir Hygiene Management System (SOPs and Protocols)
4. Existing Abattoir Registration Certificate
5. Marketing Officer
Sa
tis
fac
tory
12 1. Develop Maintenance Plan
2. Enter into Service Level Agreement with Adam Kok Farm to supply livestock
3. Development and implementation of Abattoir Marketing Strategy
4. Facilitate the finalisation of the Memorandum of Agreement (MOA) with TARDI
Abattoir Manager 1. 31 Jul 18 2. 31 Jul 18 3. 31 Jul 18 4. 01 Jul 18
2.2 Utilise Adam Kok Farms as primary production hub for agricultural produce)
5 Inability to fully utilise Adam Kok farms
1. Livestock disease outbreak
2. Livestock Theft 3. Fire outbreaks 4. Climate
conditions
1. Loss/forfeiture of revenue
2. Reputational damage which may be caused inability to meet customer demands
25 1. Vet services and medication contracts in place
2. Qualified and experienced personnel
3. Physical security and fence are currently utilised
4. Constant updates from Farmers Association
5. Budget allocated for Crop Production
Sati
sfa
cto
ry 15 1. Develop
Capitalisation Plan
2. Develop strategy on enhancement production hub for agricultural produce at Adam Kok
1. Farm Manager
2. Farm Manager
1. 31 Jul 18 2. 31 Jul 18
STRATEGIC GOAL 3: Diversified Partnership that Promote Inclusive Socio-economic Development and Growth
3.1 Optimize linkages of meat industry value chain that enhance functionality of Umzikantu Abattoir by 30 June 2021
6 Inability to fully optimise linkages of meat value chains
1. Competition between Abattoir's targeting the same market
2. Stringent Meat market requirements
1. Missed opportunity which may lead to targets not met
2. Loss of revenue
15 Curing hides and skins for selling to available market
Weak 12 Facilitate partnership between abattoir suppliers and external stakeholders
Abattoir Manager 31 March 2019
Page | 64
Link to Objective
Risk No.
Risk Description
Risk Causes Consequences
Inh
ere
nt
Ris
k
Valu
e
Current Controls
Co
ntr
ol
Eff
ecti
ven
ess
Resid
ual
Ris
k
Valu
e
Action to Improve Management of the Risk
Action Owner Timeline
3.2 Optimize linkages of fruit and vegetable industry value chain in support of Fresh Produce Market by 30 June 2021
7 Inability to fully optimise linkages of fruit and vegetables value chains
1. Inadequate supply of agricultural produce to the fresh produce market
2. Lack of Agro- processing strategy
1. Missed opportunity which may lead to targets not met
2. Loss of revenue
15 1. Potato processing plant (washing, grading and packaging)
2. Off-take Agreements with Local Farmers
Weak 12 1. Facilitate signing of SLA with the Market Agent
2. Facilitate partnership between fresh produce suppliers and external stakeholders
3. Develop Agro- processing Strategy
Market Master 1. 2. 3.
31 Jul 18 30 Dec 18 31 Mar 19
3.3 Optimize linkages of a rapid livestock production industry value chain that enhance functionality of Adam Kok Farms by 30 June 2021
8 Inability to fully optimise linkages of livestock value chain
1. Unwillingness of subsistence farmers to supply livestock
2. Competition between Adam Kok Farm and other feed lots
1. Missed opportunities on fully exploiting value chain
2. Loss of revenue
15 1. Farm with grazing and arable land
2. Availability of Livestock
3. Existing Abattoir and Fresh Produce with sufficient infrastructure and capacity to accommodate volumes coming from Adam Kok
Weak 12 1. Partner with Local Municipality's and DRDAR on farmer incubation programmes
2. Conduct organised Livestock buying centres
Adam Kok Farm Manager
1. 2.
30 Sep 18 31 Jul 18
STRATEGIC GOAL 4: Dynamic, Capable and Sustainable State Owned Company
4.1.Ensure Business Processes, Tools and Systems that support implementatio n of the Strategy and continued viability of the organisation by 30 June 2021
11 Inadequate ICT systems to support organization
1. Lack of comprehensive needs analysis
2. Non-compliant server room
3. Lack of ICT Master Plan and Business Continuity Plan
4. Lack of Offsite Backup
5. Outdated ICT Software
1. Missed/lost opportunities to technological developments
2. Loss of productive time due to system down time
3. Loss of electronic information
4. Interruption to Business Continuity
5. Negative audit outcome
20 1. Local based server in place
2. Periodic internal backups are done
3. Automatic enterprise resource planning systems backed- up by outside service provider
4. ICT Security Policy and Standards in place
5. Backup Policy in place
6. Continues update and upgrading of ERP
Sa
tis
fac
tory
12 1. Conduct integrated ICT Risk Assessment
2. Develop ICT Master Plan
3. Develop ICT Business Continuity Plan
4. Review of ICT Policies
5. Facilitate establishment of ICT Steering Committee
6. Facilitate adoption of Disaster Recovery Plan
Head: Corporate Services
1. 2. 3. 4. 5. 6.
30 Sep 18 31 Mar 19 31 Dec 18 31 May 18 31 Jul 18 31 Jul 18
Page | 65
Org
. D
esig
n P
rin
cip
les
De
taile
d O
rg. D
esig
n
20. OPERATING MODEL Our Operating Model is a process of clarifying the strategic goals and objectives. This Business
model is the link between Knowledge Management (how to do it well) and Value Creation (what
is the right thing to do).It is a blueprint of the business strategy of the Entity. Each element of the
Operating Model has been designed to contribute to the success of the Entity and will have an
impact on both the income statement and the balance sheet. This model will provide a visual
way of displaying how things work and a how all these visuals fit together as depicted in the
diagram below:
DIAGRAM 3: OPERATING MODEL
OPERATING MODEL
STRATEGY EXECUTION
Define Vision and Values
Decide where to operate
and where to win
Determine specific
strategy elements to
optimise:
⁻Business definition
⁻Sources of Growth
⁻Drivers of Value
⁻Priority Customer
Needs
⁻Critical Capabilities
⁻Key Decisions
⁻Cost Targets
Structure Accountabilities
Governance Ways of Working
Capabilities, People,
Processes and Technology
Implement Roadmap
Deliver Capability Plan
Reinforce key behaviours
Implement Performance
Management and
Feedback Loops
Mitigate Risk
Page | 66
DIAGRAM 4: SOCIO-ECONOMIC DEVELOPMENT IMPACT
21. CONCLUSION
In conclusion, this document sets out a broad course of action for the Entity, taking into
consideration the political and socio-economic conditions that dictate the pace of progress or
lack thereof, which can be achieved. The document is not an implementation or action plan,
but a statement of positioning Ntinga in its existing operating environment. It sets out elements
that are critical to chart the organisation’s cause over the three financial years (2018/19 –
2021/21).
Page | 67
Cognisance must be taken into account of the fact that the targets that the organisation may
achieve will be a function of both the needs of its stakeholders, and the support that the
stakeholders will lend to this process. In this context, the support of the P a r e n t Municipality,
the Local Municipalities, and partner development organisations will be pivotal, notwithstanding
the oversight role that the Board of the Entity is expected to play.
Another critical element that will dictate the pace of the organisation is the degree to which
Management will be supported and spurred on to deliver, taking into consideration the need to
attract appropriate skills to this unique type of a re-engineered organisation, and the
environmental challenges that are a feature of its existence.
This strategy document needs to be read in conjunction with the Entity’s Service Delivery
and Budget Implementation Plan (SDBIP), to see the extent to which the targets set for
delivery support the strategy, on an annual basis.
The Board of Ntinga supports and commits to the Shareholder, that it will drive the organisation
in a manner that will add value to the district, and that socio- economic development will not
only be a wish, but a reality for the betterment of the people in the entire district, to ultimately
result to:
“Vibrant and Sustainable Communities”