Agricultural and Rural Development Authority (ARDA) Strategic Plan 2021-2025

Government of Zimbabwe, 2020 Strategic Plan Guidelines 1 | P a g e Strategic Plan 2021-2025 Republic of Zimbabwe Agricultural and Rural Development Authority (ARDA) Government of Zimbabwe, 2020 Strategic Plan Guidelines 2 | P a g e SECTION A: Profile of the Agency i) Introduction The National Development Strategy 1:2021-2025 (NDS1) is the successor to Transitional Stabilisation Programme (TSP) and is the first 5-year Medium Term Plan aimed at realising the country’s Vision 2030.The NDS1 builds on the success of the TSP, particularly entrenching macroeconomic stability, necessary for economic recovery, growth and conferring new opportunities for wealth creation, innovation and enterprise development. The ARDA strategy for 2021-2025 is aligned to the NDS1 and is underpinned by the Integrated Results Based Management (IRBM) and Program Based Budgeting Approach. The Government of Zimbabwe recognises Agriculture and Rural Development as key to National Economic Recovery, fighting hunger and poverty. Agricultural Development ensures self-sufficiency; therefore, the Government of Zimbabwe has adopted a new methodology of ensuring that Ministries and Parastatals deliver quality service to the Public through Integrated Results Based Management (IRBM) System as a management tool. This Document constitutes the five (5) year Strategic Plan for the Agricultural and Rural Development Authority (ARDA) for the period 2021-2025 and has been prepared according to the Integrated Results-Based Management (IRBM) system currently being implemented by the Government of Zimbabwe. The Results-Based Strategic Plan covers ARDA’s Vision, Mission, Stakeholder Analysis including Client Needs and Problems, Key Result Areas, Policies and Strategies. It also includes a Performance Management Framework for results at different levels which include the Impacts, Outcomes and Outputs as well as a Results-based Budget. ARDA’s Strategic Plan has aligned and drawn guidance from Zimbabwe’s Vision 2030, National Development Strategy 1 (NDS1) and the ARDA Act Chapter 18:01. The Plan shall be used as a basis for the Authority’s Results Based Budgeting (RBB), Programmes and Sub programmes Strategic Plans, Staff Performance Contracts and Annual Work Plans ii) Background The Agricultural and Rural Development Authority (ARDA) is a Government of Zimbabwe Parastatal, under the now Ministry of Lands, Agriculture, Fisheries, Water and Rural Development (MLAFWRD), created by an Act of Parliament, The ARDA Act 18:01 of 1982.The establishment of the Agricultural and Rural Development Authority (ARDA) was preceded by the merger of three pre-independence era organizations namely: Sabi Limpopo Authority (SLA), Tribal Trust Land Development Corporation (TILCOR) and the Agricultural Development Authority (ADA). The merger was necessitated by the need to create a perpetual buffer between Zimbabweans and hunger through an institution that would guarantee food security in Zimbabwe. In line with the National Development Strategy 1 (NDS1) and pursuant to Vision 2030, ARDA is driven by new thrust to achieve National Food, Feed, Fibre, Biofuels and Seed Security anchored on the following key pillars: • Rural Development and Industrialisation • Agriculture and Agro-Industry Development While driving the above pillars, ARDA’s objective is now to ensure self-sustenance across its operations countrywide and to lead by farming at its own administered Estates, Rural Irrigation Scheme and other Rural Development Projects. ARDA has had to embrace and deploy robust strategies to achieve quick-win solutions through smart agricultural practices to boost productivity and production in an economically and environmentally sustainable manner. The Authority recently completed its restructuring exercise and is in the process of rebranding to re-position itself on the market. ARDA is taking the opportunity to evolve its brand in order to better communicate the equity that ARDA truly represents and re-align with our refined value proposition and vision. It is envisaged that a strategically Government of Zimbabwe, 2020 Strategic Plan Guidelines 3 | P a g e transformed ARDA will efficiently play its role in the implementation of programmes that underpin the current agriculture recovery process as guided by the Agriculture and Food Systems Transformation Strategy (AFTSTS), the National Development Strategy 1 (NDS1) and the Accelerated Irrigation Rehabilitation and Development Plan (AIRDP), all dovetailing with Vision 2030. ARDA’s 2021 -2025 Integrated Results Based Management (IRBM) Strategic Plan shall therefore seek to: • Foster and inculcate results-oriented culture in the management of the Authority as well as well as Government’s Business in pursuit of the National Vision of becoming an Upper Middle-Income Economy by 2030; • Enhance Food, Feed, Fibre, Bio-fuels and Seed Security for Zimbabwe through leading by farming at our own Estates and Rural Development Schemes, and • Take on Board the key agricultural, rural development and industrialisation components of the National Development Strategy 1 (NDS 1) aimed at guaranteeing National Food, Feed, Fibre, Bio-fuels and Seed Security and reducing poverty to the general Zimbabwean Populace and ensure achievement of the Sustainable Development Goal on ending hunger and poverty by 2030. . iii) National Level Contribution: National Vision: Towards a Prosperous and Empowered Upper Middle-Income Society by 2030. a. National Priorities the Ministry/ Agency is contributing to: Description of National Priority Area NPA 1 Economic Growth and Stability NPA 2 Food Security and Nutrition NPA 3 Infrastructure and Utilities NPA 4 Moving the Economy up the Value Chain and Structural Transformation NPA 5 Environmental Protection NPA 6 Climate Resilience and Natural Resource Management NPA 7 ICT and Digital Economy NPA 8 Devolution b. National Key Result Areas the Ministry/Agency is contributing to: Description of National Key Result Area NKRA 1 Food Security NKRA 2 Nutrition security NKRA 3 Water and Sanitation NKRA 4 Land Utilisation c. National Outcomes the Ministry/Agency is contributing to: Description of National Outcome NOUC 1 Improved Food Security NOUC 2 Improved Self Sufficiency NOUC 3 Increased Farm Income Government of Zimbabwe, 2020 Strategic Plan Guidelines 4 | P a g e NOUC 4 Improved Nutrition Status iv) Sectoral Level Contribution: Sector Name: Economic (Agriculture) a. Sectoral Key Results Areas Description of Sector Key Result Area SKRA 1 Policy and Administration SKRA 2 Agricultural Education SKRA 3 Crop and Livestock Research and Technology Development SKRA 4 Crop and Livestock Production, Extension and Advisory Services SKRA 5 Agricultural Engineering and Farm Infrastructure Advisory Development SKRA 6 Animal Production, Health, Extension and Advisory Services SKRA 7 Lands, Resettlement and Security of Tenure SKRA 8 Land Survey and Mapping SKRA 9 Integrated Water Resources Management b. Sectoral Outcomes Description of Sectoral Outcome Description SOUC 1 Increased Growth in the Agricultural Sector SOUC 2 Increased Growth in the Manufacturing Sector Government of Zimbabwe, 2020 Strategic Plan Guidelines 5 | P a g e 1. Agency: Agricultural and Rural Development Authority. 2. AGENCY Vote Number: 8 3. AGENCY Vision Leading by Farming for the attainment of Economic Prosperity and upliftment of Livelihoods. 4. AGENCY Mission Statement: To Spearhead Rural development, Industrialisation, National Food, Feed, Fibre, Biofuels and Seed Security. 5. Core Values: Commitment- Enthused delivery of goals by dedicated staff in all business activities. Innovation- where there is successful conversion of new concepts and knowledge into new products, services, or processes that deliver new customer value in the marketplace. Integrity- Operating the organisation constantly in accordance with strong set of moral values and following applicable ethical guidelines in all our business engagements. Teamwork- Collaboratively working together of individuals with effective communication to achieve a goal. Inclusivity- practice or policy of providing equal access to opportunities and resources for people who might otherwise be excluded or marginalized. ACRONYM: CIITI 6. Terms of Reference: • The Agricultural and Rural Development Authority (ARDA) Act Chapter 18:01. 7. Overall Functions: The Authority’s functions are governed by the Agricultural and Rural Development Authority (ARDA) Act Chapter 18:01, Section 18, subsection 2 (a) – (d), quote, • To plan, coordinate, implement, promote and assist Agricultural Development in Zimbabwe; • To prepare and with the agreement of the Minister, to implement schemes for the betterment of Agriculture in any part of Zimbabwe; • To plan, promote, coordinate and carry out schemes for the development, exploitation, utilisation, settlement or disposition of state land; and • Any other function and duties which may be imposed upon the Authority by an Actment . Government of Zimbabwe, 2020 Strategic Plan Guidelines 6 | P a g e 8. Departments in the Agency and their functions: 1. Rural Development and Industrialization: Develop rural livelihoods through spearheading optimization of their agricultural activities to ensure their operations are run sustainably and complemented by value addition through decentralized industrialization strategies. • Transformation and Industrialization of marginalized communities. • Sustainable commercialization of Smallholder Irrigation Schemes and establishing Scheme Business Centres. • Spearheading Sustainable Rural Dairy and Community Development Programs. • Establishment of Sustainable Rural Livestock Schemes. • Development of Smallholder Horticulture Schemes. • Establishment and Sustainable Commercialization of Fisheries. • Establishment of Rural Development Nodes. • Establishment of sustainable transformative linkages for funding and marketing of produce for rural irrigation schemes and communities. 2. Agriculture and Agro-Industry Development: • Leading by farming and reviving productivity at all ARDA Estates creating centres of excellence. • Creation of value addition and beneficiation centres for agricultural produce for rural communities. • Import substitution and foreign currency generation through exports. • Creating agricultural demonstration centres for imparting knowledge and technology to rural farmers. • The Hub & Spoke Model (Out-grower Schemes) 3. Commercial Services: • Vertical integration of Agriculture Value Chains to enable sustainable revenue generation for the Authority to ensure its self-sustenance • Identification, development and execution of high impact innovations and other revenue generating initiatives aligned to the Authority’s Business goals and growth priorities • Managing the promotion and repositioning of the ARDA Brand • Regional and international exports of agricultural produce from Rural Development Schemes, Estates and Commercial Projects. 4. Legal and Corporate Services: • Properties and Asset Management. • Financial Management. • Human Resources and Administration. • ICT and Digital Transformation. • Legal Services and Compliance. 5. Strategy, Research, Monitoring and Evaluation: Government of Zimbabwe, 2020 Strategic Plan Guidelines 7 | P a g e The unit is responsible for coordinating Strategic Planning Exercises, reviewing and tracking and validation for the efficient implementation of ARDA’s functions as outlined in the Mandate. Its primary deliverables are to support the Organization with the following: a. Facilitating the crafting and review of Strategic Plans b. Tracking and reporting of performance targets c. Routine data quality assessments and validation exercises d. Data analytics and reporting for improving operational efficiencies e. Baseline and End line Surveys as well as Impact Analysis f. Research and Innovation g. measures consolidated outcomes and impact of implemented projects for both internal and reporting. The research component analyses gaps and room for improvement across ARDA’s operations and inform management for consideration and adoption of identified efficient approaches of doing business. 6.Projects and Technical Services Planning and Development a. Land and Irrigation Development b. Estate and scheme Layouts and designs c. Water conveyancing d. Topographic Surveys e. Civil works designs, supervision and construction Soil Prospection and Geographic Systems (G.I.S) f. Soil surveys for irrigation development g. Soil Sampling and Analysis for fertilizer and lime recommendations h. Soil Laboratory i. Drones j. Mapping k. GIS Databases development and maintenance Mechanisation and Logistics l. Tillage equipment (Tractors, planters, tractor-drawn implements) m. Harvesting equipment (Combine Harvesters) n. Heavy duty equipment (Bulldozers, Excavators, Graders, yellow equipment) o. Fleet coordination and management 7. Internal Audit, Risk and Loss Control The unit is there to support the development, communication and implementation of robust information governance processes, policies and practices across the Organisation inform, improve and strengthen the information governance remit to deliver services efficiently, effectively, securely and confidentially. It also establishes and maintains a detailed Risk process, profile and validation programmes across the organisation and ensuring full participation from key individuals. The Unit also develops procedures and controls to ensure compliance with applicable regulatory and legal requirements as well as good business practices. 9. Procurement Management Unit(PMU) Government of Zimbabwe, 2020 Strategic Plan Guidelines 8 | P a g e PMU manages all the entity’s procurement activities in accordance with the Public Procurement and Disposal of Public Assets Act (PPDPA) Chapter 22:23 as follows; 1.) Planning the procurement activities of the procuring entity 2.) Securing the adoption of the appropriate method of procurement 3.) Preparing bidding documents in compliance with provisions of the PPDPA 4.) Preparing bid notices and short-lists 5.) Managing bidding processes 6.) Managing bid evaluation processes and any post-qualification negotiations 7.) Supervising the procuring entity’s evaluation committee 8.) Preparing evaluation reports and contract award recommendations 9.) Submitting all evaluations to the Accounting Officer with confirmation that the procedures followed were in line with the PPDPA 10.) Preparing contract documents and amendments 11.) Managing procurement contracts or overseeing their management 12.) Preparing procurement reports as may be required by the Accounting Officer 10. Public Affairs and Media Relations This position exists to manage the reputation of the Authority through planned publicity campaigns and strategies aimed at building and sustaining a good corporate image in line with the Authority’s core values. The Public Affairs and Media Relations Officer is the chief person responsible for all communications, public relations, and public affairs in an organization and monitoring the public and media's opinion of the Authority. 9. State Enterprises and Parastatals, Statutory Bodies and Grant Aided Institutions under the AGENCY and their functions. a. ARDA Seeds (Pvt) Ltd (100% owned by ARDA) The Subsidiary is responsible for the multiplication and marketing of Climate Smart, bio-fortified, Hybrid & Open Pollinated Maize, Wheat, Groundnuts, Sorghum, Sunflower, Cowpeas, Soyabeans and Sugarbeans Seed. b. Zimbabwe Agro-Industrial Development Agency (Pvt) Ltd (99% ARDA, 1% DTZ) The Subsidiary is responsible for the Processing/ value addition of Tomatoes, Guava, Mango, Butternut and Oranges. ASSOCIATE COMPANIES c. Best Fruit Processors (Pvt) Ltd (30% ARDA, 70% BBJ) The Associate Company is responsible for processing/ value addition of Tomatoes, Guava, Mango, Butternut and Oranges. d. Green Fuel Private Limited (10% ARDA/ 90% Partners) Government of Zimbabwe, 2020 Strategic Plan Guidelines 9 | P a g e The Associate Company is responsible for Ethanol production and Electricity generation. 10. Environmental Scan 10 a. PESTLEG Analysis i. Political • Licensing- Primary inputs used require import licensing to source externally to ensure timely stocking. • Political Stability-Is required to ensure smooth flow of ARDA’s nationwide Operations. • Guaranteed Security of tenure-Is required for property valuations for Audit purposes. • Prioritised access to grants-Can defer or delay completion of scheduled programmes. • Policy inconsistency-Influences resource allocation and result in shift of focus. • Inconsistency in disbursements of grants for Rural Development ii. Economic • Availability of labour-Impacts implementation of programmes. • Competitive edge on lean value chain due to availability of land and water resources • Competitive edge on pricing-Can render some crops unviable to produce. • Creation of several downstream economic activities through the Hub and Spoke Model • Macroeconomic volatility-Drastic exchange rate movements can trigger price increases and costs of production. iii. Social • Rural Employment creation and poverty eradication. • Financial inclusion of marginalised communities (youth, women, people with disabilities). • Creation of social security nets (financial, food, nutrition). iv. Technological • Technology adoption which results in greater productivity. v. Legal • Employment Laws and minimum wage guidelines regulate labour costs and enable human resource planning. • Tax Laws re • Health and Safety vi. Ecological • Environmental Stewardship • Climate Change and how they affect our cropping • Irrigation • Pollution • Zero Till/Conservation Farming vii. Governance • Bureaucracy affects timely implementation such as planting dates and operations like harvesting. • USURPING-Indirect lines of communication in terms of lines of hierarchy breeds distrust and fears of nepotism (hence less team work) Government of Zimbabwe, 2020 Strategic Plan Guidelines 10 | P a g e 10 b. SWOT Analysis Strengths • Land and water resources • Access to Government Support • Experienced and Competent Staff • Ready Market for produce Weaknesses • Reliance on third Parties for funding • Bureaucratic processes Opportunities • Value Addition • Access to Foreign Markets Threats • Adverse weather conditions • Ever-changing stakeholder priorities and funding options 11. Agency Programmes and Outcomes: Prog. Ref Programme Name Program me Outcome /s Wei ght Responsible Department Contributing AGENCYs/ Other Partners Type of Contributio n Sector Outco me Ref. Nation al Outco me Ref SDG Ref 1 Policy and Administratio n 1. Improved Organisati onal Performa nce 30% Legal and Corporate Services; Strategy Research, Monitoring and Evaluation; Loss Control and Risk; Procurement Management Unit MoLAFWRD MoFED Public Service Commission MoJLPA OPC Policy direction and regulation Funding Monitoring and Evaluation Corporate Governance 1,2 1,2,3,4 1,2,5 ,9,12 ,13 2 Agricultural Production 2.Improv ed Agricultur al 70% Agriculture and Agro-Industry Development; Rural Financial Institutions AMA; ZIMTRADE Financial Support Marketing and 1,2 1,2,3,4 1,2,9 ,13 Government of Zimbabwe, 2020 Strategic Plan Guidelines 11 | P a g e Productio n and productivi ty Development and Industrialisation ; Commercial Services; ZINWA NSSA Regulatory Services Water Resources and Irrigation Infrastructure Development Funding 12. Policies Applicable for the Agency: External Policy Progra mme Ref Internal Policy Programme Ref 1. Constitution of Zimbabwe Amendment Number (20) Act of 2013 1,2 1 Finance and Accounting Policy 1,2 2. Zimbabwe Vision 2030 1,2 2 IRBM Strategic Plan 1,2 3. National Development Strategy 1 1,2 3 Administration Manual 1,2 4. Flag of Zimbabwe Act 10:10 1,2 4 Human Resources Policy 1,2 5. Zimbabwe Agricultural Policy Framework (1995 – 2020) 1,2 5 Works Council Constitution 1,2 6. Land Reform Document as amended in 2004 1,2 6 Motor Vehicle Policy 1,2 7. National Water Policy 1,2 7 Internal Audit Charter 1,2 8. Comprehensive Africa Agriculture Development Programme (CAADP) 2 8 Board Charter 1 9. Sustainable Development Goals 1,2 9 Code of Conduct 1,2 10. Energy Policy 1,2 10 ICT Policy 1,2 11. Reserve Bank of Zimbabwe Monetary Policy 1,2 11 Risk and Loss Control Policy 1,2 12. Climate Change Policy 1,2 Government of Zimbabwe, 2020 Strategic Plan Guidelines 12 | P a g e External Policy Progra mme Ref Internal Policy Programme Ref 13. Companies and Other Businesses Act Chapter 24:03 1,2 14. Public Finance Management Act Chapter 22:19 of 2009 as amended 1,2 15. Anti – Corruption Act Chapter 9:16 1,2 16. Land Commission Act Chapter 20:29 1,2 17. Environmental Management Act 20:27 2 18. Water Act 20:24 2 19. Public Entities Corporate Governance Act Chapter 10:31 1,2 20. Public Procurement and Disposal of Public assets Act Chapter 22:23 1,2 21. Public Accounts and Auditors Act 27:12 1,2 22. RBZ Debt Assumption Act 22:15 of 2015 1 23. Official Secrets Act 11:09 1,2 24. Trade Mark Act 26:04 1;2 25. ZIDA Act 14:37 1,2 26. Labour Act Chapter 28:01 1,2 27. NSSA Act 17:04 1,2 28. Pension and Provident Funds Act 24:09 1,2 29. Rural Land Act 20:18 1,2 30. Agricultural Land Resettlement Act 20:01 1,2 31. Dairy Act 18:08 1,2 Government of Zimbabwe, 2020 Strategic Plan Guidelines 13 | P a g e External Policy Progra mme Ref Internal Policy Programme Ref 32. Seed Certification Scheme of 2000 1,2 33. Animal Health Act 19:01 1,2 34. Parks and Wildlife Act 20:14 1,2 35. Regional and International Agreements/Treaties 1,2 36. Industrial Development Policy 1,2 37. National Trade Policy 1,2 38. Nutrition Policy 1,2 39. Gender Policy 1,2 40. Zimbabwe United Nations Development Assistance Framework 1,2 13 CLIENT NEEDS/PROBLEMS ANALYSIS: Direct Clients Needs/Problems Extent (Magnitude/seriousness) 1. Rur 1. Rural Communities Needs • Milk • Seed • Maize/ Grain • Horticulture produce • Value addition Problems • Low production and productivity (Business Schemes) • 1 million Litres annually. • At least 60,000 Metric Tonnes(all varieties). • At least 70,000 Metric Tonnes(all varieties). • 100% • High • High. 2. Farmers Needs • Adaptable Seeds for: • 5,000 Metric Tonnes Government of Zimbabwe, 2020 Strategic Plan Guidelines 14 | P a g e Maize, Soyabeans, Wheat, Sunflower, Cotton and Small Grains. • Extension support services • Upstream services Problems • Low production and productivity (Business Schemes) • All farmers require capital to fund irrigation infrastructure and farm implements. • High • High • Slow growth in new technology adoption 3. 3.Grain Marketing Board (GMB) Needs • Grains • Over 50,000 Metric Tonnes of grains required annually 4.National Oil Infrastructure Company (NOIC) Need • Ethanol Problems • Heavy reliance on imports • 60,000,000 Litres • High import substation initiatives required 5. Agricultural Investment Partners Needs • Access to Land & Infrastructure to extract value • Access to Irrigation Water Problems • Low production and productivity • 100% • 100% • 100% 4. Aba 6. Abattoirs Need • Beef • 75 000 Kg/ LV 5. S 7. Safari Operators Need • Access to Land and infrastructure (Conservancy) • 100% of the Safari Operators 8. Universities and Colleges Needs • Require data or information • Collaboration in terms of Research • Placements of Students on attachment • Assistance in implementing on farm trials and demonstrations • 100% of institutions • High participation • 100% • 100% Government of Zimbabwe, 2020 Strategic Plan Guidelines 15 | P a g e 14. STAKEHOLDERS ANALYSIS Direct Stakeholders Demands/ Expectations Extent (Magnitude/seriousness) 1. Tripartite [OPC,PSC,MoFED] • Restoration of the National/Regional Bread Basket • Reduction of Grain Import Bill; • Increased disposable Incomes for Rural Households • High • High • High 2. Ministry of Lands Agriculture, Fisheries Water and Rural Development(MoLAFWRD) • Policy Implementation • 100% 3. Strategic Partners(ZINWA, Financial Institutions, ZERA, Irrigation Schemes, Farmers, AMA,EMA) • Adherence to Service level Agreements • Collaborations with ARDA • 100% adherence to contracts and agreements • 100% compliance 4. Worker’s Committee and Trade Union • Problem solving management • Adherence to national policy framework • Good corporate governance • High • High • High 5. Inputs Suppliers • Adherence to Service level Agreements • Adherence to payment periods • 100% • 100% 6. Other Government Departments and Agencies • Compliance to statutory requirements • Compliance to Reporting Standards • 100% 15. STRATEGIES, ASSUMPTIONS, RISKS AND MITIGATIONS Strategies: Game plan to achieve the targets Assumptions: Positive factors that can assist in the achievement of the targets Government of Zimbabwe, 2020 Strategic Plan Guidelines 16 | P a g e Risks: Factors which militate against the achievement of results Mitigation: Interventions to reduce the gravity or intensity of the damage Period Strategies Assumptions Risks Mitigations Programme 1: Policy and Administration Outcome 1: Improved Organisational Performance Budget Year 2022 Formulation and review of policies and processes Stakeholder support Need for new Policy Changes in the provision of Policy prior to approval Agile Policy formulation, review and implementation Digitalisation and automation of processes Availability of adequate resources Technology may become obsolete Resistance to change Pre-engagement and training Change management Implementation of robust Performance management system Availability of adequate resources Lack of commitment Performance rewarding and incentives Development and implementation of airtight processes and procedures Stakeholder support Technology manipulation and system failure System backup, upgrades and maintenance Development and implementation of a robust Business Continuity Plan Stakeholder Support Policy inconsistency Flight risk of specialised personnel Scenario based planning Succession planning Elimination of middlemen in procurement and supply chains Availability of adequate resources Forgery /Fraud Collusion Due diligence Technology deployment Development of Research, Monitoring and Evaluation Plan and implementation of programs and projects Timely release of resources Cooperation from the stakeholders Lack of cooperation from implementing partners False reporting Conduct field visits regularly for verification Establishment of Overlay Services to support Operational functions Availability of Resources Market competition Leveraging on strategic Partnerships Optimisation of Resource Utilisation Competitiveness Drastic market changes Contracting Real time reporting Cost containment and reduction Adherence to Budget No new projects outside budget High inflation Implement hedging strategies Capitalisation Availability of collateral High borrowing rates Structural Long term financing deals Value preservation Availability of surplus funding Fluctuations in interest rates and inflation Investing in stocks and income generating assets Debt recovery and management Cooperation of debtors Incapacity to pay Litigation Insurance Due diligence Refurbishment of immovable assets Availability of resources Poor workmanship Due diligence Investment in Capital Expenditure to support Availability of adequate funding Substandard equipment Procure from reputable supplier and brands Government of Zimbabwe, 2020 Strategic Plan Guidelines 17 | P a g e Strategic business initiatives Availability of backup spares and servicing Disposal of redundant and unserviceable assets Stakeholders buy in Unavailability of buyers Online advertising or auctioning Expansion of occupancy Availability of potential tenants Changes to priorities to use of houses Failure to pay rentals Engagements with parties involved Due diligence Prevention & elimination of all illegal settlement and occupancy within ARDA properties Stakeholder support Settlers’ resistance Legal action Reduction of legal costs Amicable resolution of disputes Existing cases taking longer to conclude Lack of agricultural activities on ARDA land Use internal legal resources Boundary demarcations, offer letters and title deeds on our Land Visible agricultural operations 2-3 Years Human resource capacitation and talent Management Availability of resources High labour market competition Staff incentives Establishment of Research, Monitoring and Evaluation Plan of programs and projects Timely release of resources Cooperation from the stakeholders Lack of cooperation from implementing partners False reporting Conduct field visits regularly for verification Introduction of Overlay Services to support functions Availability of Resources Market competition Leveraging on strategic Partnerships Optimisation of Resource Utilisation Competitiveness Drastic market changes Contracting Real time reporting Develop and deploy ICT infrastructure Availability of Funds Un anticipated high cost of infrastructure and bandwidth Development partners engagement Mobilization for alternative sources of funds Debt recovery plan Cooperation from farmers Unwillingness to pay Engagement of Legal and Corporate Services department Optimisation of Resource Utilisation Competitiveness Drastic market changes Contracting Real time reporting Cost containment and reduction Adherence to Budget No new projects outside budget High inflation Implement hedging strategies Capitalisation Availability of collateral High borrowing rates Structural Long term financing deals Value preservation Availability of surplus funding Fluctuations in interest rates and inflation Investing in stocks and income generating assets Government of Zimbabwe, 2020 Strategic Plan Guidelines 18 | P a g e Debt recovery and management Cooperation of debtors Incapacity to pay Ensure guarantors are available Due diligence of all potential debtors Refurbishment of immovable assets Availability of resources Poor workmanship Due diligence Procurement of mobile equipment and immovable assets Availability of adequate funding Substandard equipment Availability of backup spares and servicing Inflationary pressures Procure from reputable supplier and brands Value preservation Disposal of redundant and unserviceable assets Stakeholder buy in Unavailability of buyers Online advertising or auctioning Generate revenue from property occupancy Availability of potential tenants Changes to priorities to use of house Failure to pay rentals Engagements with parties involved Due diligence Prevention & elimination of all illegal settlement and occupancy within ARDA properties Stakeholder support Settlers’ resistance Legal action Reduction of legal costs Amicable resolution of disputes Existing cases taking longer to conclude Lack of agricultural activities on ARDA land Use internal legal resources Boundary demarcations, offer letters and title deeds on our Land Visible agricultural operations 4-5 Years Develop, review and monitor implementation of policies and processes Availability of adequate resources Delay in policy approvals Setting up Policy Review Committee Digitalisation and automation of processes Quick adaptation to change Delay in implementation Technology change Pre-engagement and training Development of Staff Skills Training Availability of resources Adoption Recognition Curbing Staff turnover Availability of resources High labour market competition Staff incentives Establishment of Monitoring and Evaluation Plan of programs and projects Timely release of resources Cooperation from the stakeholders Lack of cooperation from implementing partners False reporting Conduct field visits regularly for verification Introduction of Overlay Services to support functions Availability of Resources Market competition Leveraging on strategic Partnerships Optimisation of Resource Utilisation Competitiveness Drastic market changes Contracting Real time reporting Programme 2: Agricultural Production Outcome 2: Improved Agricultural Production and productivity Government of Zimbabwe, 2020 Strategic Plan Guidelines 19 | P a g e Budget Year 2022 Acceleration of Irrigation Infrastructure Development. Availability of financing Availability of irrigation infrastructure supplies Supply chain disruptions Sourcing from alternate financiers Establish a revolving fund to finance projects Hiring of irrigation equipment Farmer Capacitation Buy-in from the Schemes Resource constraints Extensive engagement of all stakeholders Implementation of conservation Agriculture (Mechanised Minimum Tillage) Availability of Mechanised Minimum Tillage Equipment Changes in stakeholder priorities Lobbying and engagement Creation of hub and spoke value chain models Availability of financing Lack of collateral security Establishment of a revolving fund Land Clearance and Development Availability of adequate resources Reliance on third party service providers Acquisition of own equipment Establishment of beneficial synergies Stakeholder support Value Chain actors inefficiencies Policy shift Lean value chains Scenario based planning Maintenance of strategic adequate input reserves Adequate funding Availability of inputs Stock lose value Pilferage Scenario based planning Value addition and beneficiation Availability of adequate funding Obsolete equipment Research and development 2-3 Years Acceleration of Irrigation Infrastructure Development. Availability of financing Availability of irrigation infrastructure supplies Supply chain disruptions Establish a revolving fund to finance projects Hiring of irrigation equipment Land Clearance and Development Availability of adequate resources Reliance on third party service providers Acquisition of own equipment Implementation of GAP Certification Availability of adequate funding Policy shifts Disruptions in supply chain Scenario based planning Technology adoption Acceleration of Irrigation Infrastructure Development. Availability of financing Availability of irrigation infrastructure supplies Supply chain disruptions Sourcing from alternate financiers Establish a revolving fund to finance projects Hiring of irrigation equipment Maintenance of strategic adequate input reserves Adequate funding Availability of inputs Stock lose value Pilferage Scenario based planning Value addition and beneficiation Availability of adequate funding Obsolete equipment Research and development 4-5 Years Acceleration of Irrigation Infrastructure Development. Availability of financing Availability of irrigation infrastructure supplies Supply chain disruptions Establish a revolving fund to finance projects Hiring of irrigation equipment Government of Zimbabwe, 2020 Strategic Plan Guidelines 20 | P a g e Land Clearance and Development Availability of adequate resources Reliance on third party service providers Acquisition of own equipment Regional Expansion Stakeholder support Inadequate foreign currency funding Implementing Foreign currency generating initiatives Maintenance of strategic adequate input reserves Adequate funding Availability of inputs Stock lose value Pilferage Scenario based planning Value addition and beneficiation Availability of adequate funding Obsolete equipment Research and development Budget Year Investment in Irrigation, Property and Plant There shall be adequate resources to support the investment process. Unavailability of spares specific to the acquired equipment. Fluctuations in exchange rate in the parallel market. Maintenance of adequate spares reserves Forex generating initiatives Extension and establishment of Irrigation Schemes Stakeholder support Inadequate funding Alternate funding through loan financing Establishment of a revolving fund Technology Deployment Adequate funding Technology may become obsolete Extensive Research and Development 2-3 Years Further Investment in Machinery and Equipment Adequate resources to support the investment process. Unavailability of spares specific to the acquired equipment. Fluctuations in exchange rate in the parallel market. Maintenance of adequate spares reserves Forex generating initiatives Extension and establishment of irrigation schemes Stakeholder support Inadequate funding Alternate funding through loan financing Establishment of a revolving fund Government of Zimbabwe, 2020 Strategic Plan Guidelines 21 | P a g e 4-5 Years Further Investment in Machinery and Equipment Adequate resources to support the investment process. Unavailability of spares specific to the acquired equipment. Fluctuations in exchange rate in the parallel market. Maintenance of adequate spares reserves Forex generating initiatives Budget Year Innovations and New Product Development Availability of adequate funding Stakeholder resistance Brand awareness and customer education Establishment of New Markets and expansion of existing Markets Stakeholder support Barriers to entry Market Research Strategic Partnerships Rebranding Availability of adequate funding Stakeholder buy-in Culture change Change management Product Differentiation Availability of technical capacity Lack of speed of execution Failure to hear the bell when it rings Agility 2-3 Years Innovations and New Product Development Availability of adequate funding Stakeholder resistance Brand awareness and customer education Establishment of New Markets and expansion of existing Markets Stakeholder support Barriers to entry Market Research Strategic Partnerships Product Differentiation Availability of technical capacity Lack of speed of execution Failure to hear the bell when it rings Agility 4-5 Years Innovations and New Product Development Availability of adequate funding Stakeholder resistance Brand awareness and customer education Establishment of New Markets and expansion of existing Markets Stakeholder support Barriers to entry Market Research Strategic Partnerships Product Differentiation Availability of technical capacity Lack of speed of execution Failure to hear the bell when it rings Agility SECTION B: PERFORMANCE FRAMEWORK FOR THE AGENCY 16. Programme Performance Framework 16.a Outcome Performance Framework R ef Outcome Description KPI: Measurem ent Criterion (time;$;rat e;etc) Baseline TARGETS 2021 2022 2023 2024 2025 Year Value T AV T ALV T ALV T ALV T ALV 1 Trading Profit Margin % 2018 15% ±2.5 % 30% ±3% 30% ±3% 30% ±3% Government of Zimbabwe, 2020 Strategic Plan Guidelines 22 | P a g e Improved Organisation al Performance Client Satisfactio n Level 65% 65 % ±7.5% 80% ±8% 85% ±8.5% 90% ±9% 95% ±9.5% 2 Improved Agricultural Production Percentag e Proportion of five year Target :Maize % 2021 16.3% 16. 3% ±1.6% 15% ±1.5 % 20% ±2% 22.3% ±2.2% 26.4% ±2.6% Percentag e Proportion of five year target: Sorghum % 2021 3.2% 3.2 % ±0.32 % 1% ±0.0 1 28.6% ±2.9% 29.2% ±2.9% 32.2% ±3.2% Percentag e Proportion of five year target: Wheat % 2021 34.23% 10 % ±0.1% 18% ±1.. 8% 20% ±0.2% 22% ±2.2% 26.7% ±2.7% Percentag e Proportion of five year target: Soya Bean % 2021 16.7% 16. 7% ±1.7% 3.3% 0 18.3% ±0.18 % 39.5% ±4% 56.7% ±5.7% Percentag e Proportion of five year target: Sunflower % 2021 0.5% 0.5 % ±0.1% 2% ±0.2 % 29.9% ±3% 31.9% ±3.2% 35.7% ±3.6% Percentag e Proportion of five year target: Cotton % 2021 0.8% 0.8 % ±0.1% 1.2% 0 31.8% ±3.2% 32.8% ±3.3% 33.3% ±3.3% Yield per Ha: Maize Tons 2015 2 6 ±0.6 7 ±0.7 8 ±8 10 ±1 10 ±1 Yield per Ha: Sorghum Tons 2015 1 2.5 ±0.25 3 ±0.3 3.4 ±0.34 3.9 ±0.39 3.9 ±0.39 Yield per Ha: Wheat Tons 2015 1 4.5 ±0.45 5 ±0.5 5.4 ±0.54 6 ±0.6 6 ±0.6 Yield per Ha: Soya Bean Tons 2015 0.5 1.8 ±0.18 1.9 ±0.1 9 2 ±0.2 2.1 ±0.21 2.1 ±0.21 Yield per Ha: Sunflower Tons 2015 0.8 ±0 0.9 ±0 1 ±0.1 1.1 ±0.11 1.1 ±0.11 Yield per Ha: Cotton Tons 2015 0.4 0.9 ±0 1 ±0.1 1.1 ±0.11 1.2 ±0.12 1.2 ±0.12 Yield per Ha:Hybrid Seed Maize Tons 2020 4 4 ±0.4 4 ±0.4 4 ±0.4 4 ±0.4 4 ±0.4 Yield per Ha:Open Pollinated Seed Maize Tons 2020 3 3 ±0.3 3 ±0.3 3 ±0.3 3 ±0.3 3 ±0.3 Yield per Ha:Orange Seed Maize Tons 2020 2 2 ±0.2 2 ±0.2 2 ±0.2 2 ±0.2 2 ±0.2 Government of Zimbabwe, 2020 Strategic Plan Guidelines 23 | P a g e Yield per Ha: Seed Sorghum Tons 2020 2 2 ±0.2 2 ±0.2 2 ±0.2 2 ±0.2 2 ±0.2 Yield per Ha: Seed Wheat Tons 2020 5 5 ±0.5 5 ±0.5 5 ±0.5 5 ±0.5 5 ±0.5 Yield per Ha: Seed Soya Bean Tons 2020 1.5 2 ±0.2 2 ±0.2 2 ±0.2 2 ±0.2 2 ±0.2 Yield per Ha: Seed Sunflower Tons 0.5 ±0 0.5 ±0 0.5 ±0 0.5 ±0 Percentag e Proportion to 5 Year Target:Hyb rid Seed Maize % 2021 9.05% 14. 1% ±1.41 % 15.4% ±1.5 4% 19.2% ±1.92 % 25.6% ±2.56 % 25.6% ±2.56 % Percentag e Proportion to 5 Year Target:Op en Pollinated Seed Maize % 2021 16.21% 35 % ±0.35 % 14% ±0.1 4% 17.5% ±0.18 % 19.9% ±0.2% 23.4% ±2.34 % Percentag e Proportion to 5 Year Target: Seed Sorghum % 2021 2.24% 20 % ±2% 20% ±2% 20% ±2% 20% ±2% 20% ±2% Percentag e Proportion to 5 Year Target: Seed Wheat % 2021 2.35% 17. 6% ±1.76 % 17.6% ±1.7 6% 17.6% ±1.76 % 23.5% ±2.35 % 23.5% ±2.35 % Percentag e Proportion to 5 Year Target: Seed Soya Bean % 2021 0.82% 13. 6% ±1.36 % 18.2% ±1.8 2% 22.7% ±2.27 % 22.7% ±2.27 % 22.7% ±2.27 % Percentag e Proportion to 5 Year Target: Seed Sunflower % 2021 0% 0% 0 0.4% 0 32.3% ±0.32 % 32.3% ±0.32 % 32.7% ±0.37 % Percentag e Proportion to 5 Year Target: Poultry Produced % 2021 0% 0% 0 2.8% ±0.0 3% 13.9% ±1.4% 27.8% ±2.8% 55.6% ±5.5% Percentag e Proportion to 5 Year Target: Milk Produced % 2021 0.21% 0.3 % 0 6.2% ±0.6 % 15.5% ±1.5% 31.1% ±3.1% 46.6% ±4.6% Percentag e Proportion % 2021 7.11% 16. 4% ±1.6% 5.9% ±0.6 % 18.1% ±1.81 % 20.9% ±2.1% 38.7% ±3.9% Government of Zimbabwe, 2020 Strategic Plan Guidelines 24 | P a g e to 5 Year Target: Land Cleared Percentag e Proportion to 5 Year Target:Lan d Irrigated % 2021 1.25% 1.3 % ±0.1% 6.9% ±0.7 % 22.2% ±2.2% 27.8% ±2.8% 35.3% ±3.5% Percentag e Proportion to 5 Year Target: Revenue Generated % 2021 36.13% 0% 0 22.8% ±2.3 % 24% ±2.4% 25.6% ±2.6% 27.6% ±2.8% T = Target; ALV = Allowable Variance Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 25 | P a g e 17. Outputs Performance Framework No. & Prog. Code Outputs 5 Year target Baseline Previous Year Current Year Targets 2021 2022 2023 2024 2025 Value Year T A AV T ALV T ALV T ALV T ALV Programme: Policy and Administration OUC 1: Improved organisational performance OP 1.1 Policies Formulated/Reviewed 21 2 2021 2 2 0 10 ±1 5 0 12 ±1 4 ±0 OP 1.2 Board Meetings Convened 25 4 2021 4 4 0 5 1 5 1 5 1 5 1 OP 1.3 Processes Automated 72 1 2021 1 1 0 10 ±1 12 ±1 20 ±2 29 ±3 OP 1.4 Human Capital capacitated 80% 60% 10% 50% ±5 60% ±6% 70% ±7% 80% ±8% OP 1.5 Processes implemented and reviewed 149 8 8 0 20 ±2 25 ±2 40 ±4 60 ±6 OP 1.6 Business Continuity Plan Maintained 1 1 2021 1 1 0 1 0 1 0 1 0 1 0 OP 1.7 Goods and services procured to Total Revenue 30% ±3% 30% ±3% 30% ±3% 30% ±3% OP 1.8 Monitoring and Evaluation Implemented 120 0 2020 24 ±2 24 ±2 24 ±2 24 ±2 OP 1.12 Audit conducted 5 1 2021 1 2 1 1 0 1 0 1 0 1 0 OP 1.14 Non-Current Assets acquired 50 10 ±1 10 ±1 10 ±1 10 ±1 OP 1.15 Illegal settlers evicted 70% 10% ±1% 15% ±1.5% 20% ±2% 25% ±2.5% OP 1.16 Legal Cases Handled to reported Cases 50% 30% ±3% 35% ±3% 45% ±4% 50% ±5% OP 1.17 ICT Infrastructure Constructed/Rehabilitated 9 1 2021 1 1 0 3 0 2 0 2 0 1 0 Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 26 | P a g e No. & Prog. Code Outputs 5 Year target Baseline Previous Year Current Year Targets 2021 2022 2023 2024 2025 Value Year T A AV T ALV T ALV T ALV T ALV OP 1.17 Software and Systems Upgraded 12 1 2021 1 1 0 4 0 2 0 2 0 3 0 T = Target A = Actual AV = Actual Variance ALV = Allowable Variance L-Low Risk M-Moderater Risk S-Significant H-High Risk Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 27 | P a g e No. & Prog. Code Outputs 5-year target Baseline Current Year Budget Year Targets 2021 2022 2023 2024 2025 Value Year T A AV T ALV T ALV T ALV T ALV Programme 2: Agricultural Production OUC 1: Improved Agricultural Production OP 2.1 Maize Produced 200,000[T] 5226 2021 32600 5226 27,374 30000 ±3000 40000 ±4000 44571 ±5057 52829 ±5983 OP 2.2 Sorghum Produced 100,000[T] 5578 2021 3160 5578 2418 1000 ±100 28600 ±2860 29204 ±2920 32216 ±2922 OP 2.3 Wheat Produced 100,000[T] 3674 2021 10000 13323 3323 18000 ±1800 20000 ±2000 22000 ±2200 26677 ±2667 OP 2.4 Soya Bean Produced 30,000[T] 7100 2021 5000 7100 2100 1000 ±100 5484 ±548 11846 ±1185 17000 ±1700 0P 2.5 Sunflower Produced 70,000[T] 48 2021 375 48 327 1388 ±138.8 20921 ±2092 22326 ±2233 24990 ±2500 OP 2.6 Cotton Produced 50,000[T] 1000 2021 400 1000 600 600 ±60 15922 ±1592 16421 ±1642 16657 ±1666 OP 2.7 Hybrid Seed Maize Produced 15,600[T] 1412 2021 2200 1412 788 2400 ±240 3000 ±300 4000 ±400 4000 ±400 OP 2.8 Open Pollinated Seed Maize Produced 856[T] 316 2021 300 316 16 120 ±12 150 ±15 170 ±17 200 ±20 OP 2.9 Sorghum Seed Produced 5,000[T] 112 2021 1000 112 888 1000 ±100 1000 ±100 1000 ±100 1000 ±100 OP 2.10 Wheat Seed Produced 8,500[T] 200 2021 1500 200 1300 1500 ±150 1500 ±150 2000 ±200 2000 ±200 OP 2.11 Soya Bean Seed Produced 4,400[T] 36 2021 600 36 564 800 ±80 1000 ±100 1000 ±100 1000 ±100 OP 2.12 Sunflower Seed Produced 2,325[T] 0 2021 0 0 10 ±7.5 750 ±75 750 ±75 760 ±76 OP 2.13 Poultry Produced 360[T] 0 2021 0 10 ±1 50 ±5 100 ±10 200 ±20 OP 2.14 Milk Produced 3,220,370,[L] 20,370.2 2021 10,000 20,370.2 10,370.2 200,000 ±20,000 500,000 ±50,000 1,000,000 ±10,000 1,500,,000 ±150000 OP 2.15 Land Cleared[Ha] 16,883[Ha] 1200 2021 2775 936 1,000 ±292.5 3,048 ±304.8 3525 ±353 6,535 ±461 Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 28 | P a g e 18. Programme Budget Programme Programme Outputs Budget Last Year Budget Current Year 2021 Budget Year 1 2022 Budget Year 2 2023 Budget Year 3 2024 Budget Year 4 2025 Budget Year 5 2026 Programme 1: Policy and Administration Sub-Prog 1. Board Chair and CEO’s Office Audit conducted 23,407,453.09 33,940,806.97 45,820,089.41 57,275,111.77 71,593,889.71 Sub-Prog 2 Finance Services 14,188,704.17 20,573,621.05 27,77488.42 34,717,985.53 4397,481.91 Sub-Prog 3 Human Resources , Administration and Procurement Management Unit Policies formulated Human Capital capacitated 421,019,422.69 809,088,019.93 1,119,711,524.4 1 1,562,092,998.4 6 1,821,526,400.23 Business Continuity Plan implemented Goods and services procured ICT infrastructure constructed/ rehabilitated OP 2.16 Land Irrigated[Ha] 14,400 [Ha] 180 2021 180 180 0 1,000 ±𝟐𝟒𝟖 3,200 ±𝟑𝟐𝟎 4,000 ±𝟒𝟎𝟎 5,080 ±508 Service Centres Established 13 0 5 0 2 0 2 0 4 0 Milk Collection Centres Re established 22 0 10 0 4 0 5 0 5 0 Irrigation Schemes Onboarded 450 28 2021 28 28 0 200 50 100 100 OP 2.17 Sales Generated 837,401,880 75,108,661 2019 191,011,420 ±19,101,142 201,091,420 ±20,109,142 214,195,420 ±21,419,542 231,230,620 ±23,123,062 Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 29 | P a g e Non-current assets acquired Income generated from Property rentals Properties refurbished Sub-Prog 4 Internal Audit Risk and Loss Control Processes implemented and reviewed 27,741,279.05 40,224,854.62 5403,553.74 67,879,442.17 84,84902.71 Risk established Sub-Prog 5 Strategy, Research, Monitoring and Evaluation Processes automated 11,931,759.00 1701,050.55 2356,418.24 29,195,522.80 36,494,403.50 Monitoring and evaluation implementation done Overlay Services Established Sub-Prog 6 Legal services Illegal settlers evicted 277,080.24 3,446,766.35 4,653,134.57 5,816,418.21 7,270,522.77 legal cases handled Total Programme Budget 500,665,698.24 924,575,119.48 1,275,619,108 .79 1,756,977,478 .94 2,065,132,000. 83 Programme 2: Agricultural Production Sub-Prog 1. Crop and Livestock production Maize Produced 1,126,770,199.71 1,926,871,739.09 2,664,12061.01 3,603,286,473.4 4 435,823,061.90 Sorghum Produced Wheat Produced Soya Bean Produced Sun Flower Produced Cotton Produced Meat Produced Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 30 | P a g e Milk Produced Sub-Prog 2 Seed production Hybrid Seed Maize Produced 1,125,757,197.73 1,540,018,040.46 2,057,565,007.1 4 2,674,834,509.2 8 3,477,284,862.06 Open Pollinated Seed Maize Produced Orange Maize Seed Produced Sorghum Seed Produced Wheat Seed Produced Soya Bean Seed Produced Sunflower Seed Produced Sub-Prog 3 Farmer training and development services 2,510,165.66 4,080,995.36 5,650,831.68 7,544,897.96 9,230,450.50 Sub-Prog 4 Commercial Business Services Sales Revenue Generated 178,52476.03 324,773,921.01 448,264,645.37 61510,459.96 726,433,946.05 Turnover Total Programme Budget 2,433,561,939.13 3,795,744,695.9 3 5,175,600,845 .20 6,900,97640.6 4 8,548,77220.51 Sub-Prog 5. Agricultural Engineering and Farm Infrastructure Land Cleared 1,920,210,118.63 2,897,928,493.46 4,022,012,786 5,261,216,218 6,60785,844 Land Irrigated Master Plans Developed Total Sub-Programme Budget 1,920,210,118.63 2,897,928,493 4,022,012,786 5,261,216,21 6,60785,844 TOTAL AGENCY BUDGET 4,854,437,756.00 7,618,24808 10,473,232,74 13,919,170,03 17,221,290,166 19. Human Resources for the Strategic Period. Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 31 | P a g e No. Category Programme 1 Programme 2 Programme 3 Agency Total Personnel Requirements by Category 1 Top Management 8 11 1 20 2 Middle Management 14 24 7 45 3 Supervisory Management 6 499 25 530 4 Operational and Support staff 8 266 120 394 5 Total 37 806 156 999 20. Other Resources 7. Materials, Equipment and ICTs Materials/ Equipment /ICT 2021 2022 2023 2024 2025 Quantit y Cost Quantit y Cost Quantity Cost Quanti ty Cost Quan tity Cost Motor Vehicle 0 0 9 104,400,000 9 104,400,000 9 104,400,000 9 104,400,000 Laptops 0 0 25 5,400,000 25 5,400,000 25 5,400,000 25 5,400,000 Camping tents 0 0 70 205,800 70 205,800 70 205,800 70 205,800 Servers 0 0 4 3,600,000 4 3,600,000 4 3,600,000 4 3,600,000 Server room Equipment 0 0 1 628,850 1 628,850 1 628,850 1 628,850 Mobile Phones 0 0 25 394,000 25 394,000 25 394,000 25 394,000 ERP System 0 0 1 24,858,000 1 24,858,000 1 24,858,000 1 24,858,000 Printers 0 0 2 1,580,000 2 1,580,000 2 1,580,000 2 1,580,000 Video Conferencing kit 0 0 1 970,000 1 970,000 1 970,000 1 970,000 Digital Camera 0 0 1 130,000 1 130,000 1 130,000 1 130,000 Mobile Grain Dryers 0 0 1 2,400,000 1 2,400,000 1 2,400,000 1 2,400,000 Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 32 | P a g e Mobile Shellers 0 0 2 1,200,000 2 1,200,000 2 1,200,000 2 1,200,000 Filing cabinets 0 0 3 3 3 3 Electric gate for Head Office 0 0 1 1,080,000 1 1,080,000 1 1,080,000 1 1,080,000 CCTV 0 0 1 1,620,000 1 1,620,000 1 1,620,000 1 1,620,000 Builders and Carpenter equipment 0 0 1 904,860 1 904,860 1 904,860 1 904,860 Microwave 0 0 2 54,000 2 54,000 2 54,000 2 54,000 Office Furniture 0 0 11 1,709,675 11 1,709,675 11 1,709,675 11 1,709,675 Guest house Furniture and electrics 0 0 7,600,500 7,600,500 7,600,500 7,600,500 Survey Equipment 0 0 1 3,690,000 1 3,690,000 1 3,690,000 1 3,690,000 Laboratory Equipment and setup 0 0 1 42,840,000 1 42,840,000 1 42,840,000 1 42,840,000 Drone technology 0 0 1 20,196,000 1 20,196,000 1 20,196,000 1 20,196,000 Irrigation infrastructure 0 0 936,000,000 120,480,000 297,600,000 2,124,000,00 Land Development 0 0 540,000,000 681,210,000 988,200,000 945,000,000 Premises fencing 0 0 90,000,000 215,856,000 398,160,000 306,000,000 Lowbed Trailer 30t 0 0 1 4,860,000 1 4,860,000 1 4,860,000 1 4,860,000 Truck horse 0 0 5 40,500,000 5 40,500,000 5 40,500,000 10 tonne truck 0 0 2 4,500,000 4,500,000 4,500,000 4,500,000 5 tonne truck 0 0 2 5,400,000 2 5,400,000 2 5,400,000 Back hoe 0 0 3 16,200,000 32,400,000 32,400,000 32,400,000 Excavators 0 0 2 64,800,000 2 64,800,000 2 64,800,000 2 64,800,000 Tipper trucks 0 0 5 90,000,000 5 90,000,000 5 90,000,000 5 90,000,000 Bulkside Trailer 30t 0 0 5 13,500,000 5 13,500,000 5 13,500,000 5 13,500,000 Dozer D6 0 0 2 90,000,000 2 90,000,000 2 90,000,000 2 90,000,000 Dozer D7 0 0 2 108,000,000 2 108,000,000 2 108,000,000 2 108,000,000 Dam Scooper 0 0 4 3,600,000 4 3,600,000 4 3,600,000 Land Planner 0 0 6 1,296,000 6 1,296,000 6 1,296,000 Motor bikes 0 0 4 1,080,000 Front end loader 0 0 2 36,000,000 2 36,000,000 2 36,000,000 Motorised Grader 0 0 3 21,600,000 43,200,000 43,200,000 43,200,000 Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 33 | P a g e 8. Space Requirements Location 2021 2022 2023 2024 2025 Roller (Smooth and Sheep Foot) 0 0 1 4,500,000 1 4,500,000 1 4,500,000 1 4,500,000 Water Bowser 0 0 2 8,280,000 2 8,280,000 2 8,280,000 Portable Concrete Mixer 0 0 2 720,000 2 720,000 2 720,000 Canopy 0 0 6 1,620,000 6 1,620,000 6 1,620,000 6 1,620,000 200hp Tractor 0 0 5 108,000,000 5 108,000,000 5 108,000,000 5 108,000,000 Case Combine Harvester 0 0 5 90,000,000 5 90,000,000 5 90,000,000 5 90,000,000 Bin Trailer 0 0 10 13,500,000 10 13,500,000 10 13,500,000 10 13,500,000 Rom Disc(20 Discs) 0 0 20 16,200,000 20 16,200,000 20 16,200,000 20 16,200,000 Field Roller 0 0 10 3,600,000 10 3,600,000 10 3,600,000 10 3,600,000 3 disc plough 0 0 20 9,000,000 20 9,000,000 20 9,000,000 20 9,000,000 Chisel Plough 0 0 10 5,400,000 10 5,400,000 10 5,400,000 10 5,400,000 Boom Spray 0 0 10 8,100,000 10 8,100,000 10 8,100,000 10 8,100,000 Crane Truck 0 0 2 108,000,000 2 108,000,000 2 108,000,000 Work bench 0 0 4 3,600,000 4 3,600,000 4 3,600,000 Compressor - 100lt 0 0 3 972,000 3 972,000 3 972,000 3 972,000 Welding Machine 0 0 3 162,000 3 162,000 3 162,000 3 162,000 Heavy Duty Drill 0 0 3 81,000 3 81,000 3 81,000 3 81,000 Heavy Duty Toolbox 0 0 12 864,000 12 864,000 12 864,000 12 864,000 Heavy duty grease gun 0 0 12 216,000 12 216,000 12 216,000 12 216,000 Row bar, real bumper, and front bumper 0 0 6 1,296,000 6 1,296,000 6 1,296,000 6 1,296,000 Vehicle Rubberising 0 0 6 378,000 6 378,000 6 378,000 6 378,000 GPS Device- Tractors and combines 0 0 70 2,520,000 70 2,520,000 70 2,520,000 70 2,520,000 Kitchen Utensils 0 0 27,000 27,000 27,000 27,000 Fire Extinguisher 0 0 10 180,000 10 180,000 10 180,000 10 180,000 Hand held GPS 0 0 10 900,000 10 900,000 10 900,000 10 900,000 Gas bottles- set 0 0 4 720,000 4 720,000 4 720,000 4 720,000 Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 34 | P a g e Quantity (m2) Cost Quantity (m2) Cost Quantity (m2) Cost Quantity (m2) Cost Quanti ty (m2) Cost Head Office 0 0 0 0 3000 81,00,000 0 0 0 Bulawayo 0 0 3000 54,000,000 0 0 0 0 0 Masvingo 0 0 0 0 0 0 3000 54,000,000 0 0 Mutare 0 0 0 0 0 0 0 3000 54,000,000 TURNAROUND STRATEGY Business Turnaround Strategies Strategy 1: Adoption of the V-30 accelerator model + Industrialization Ensure Rural irrigation schemes to farm as a business and be profitable. Through the provision of a scheme business manager whose role is to provide all technical support, manage finances, facilitate profit sharing and ensure all debts are paid. Agriculture will drive rural industrialization; rural industrialization will promote rural development and rural development will result in the attainment of the Government's vision 2030 goal of becoming an upper middle income and prosperous society by year 2030. Hub & Spoke Industrialization model leveraging on expertise at our Estates to drive Rural Industrialization to ensure that no one and no place shall be left behind in development. Strategy 2: Reviving ARDA Estates In the past ARDA used to administer farming through partnerships but now we are Leading by Farming through the revival of our Estates. This will lead to maximum utilization of land and productivity for the attainment of our mandate. Strategy 3: Value Addition and Beneficiation Centres The establishment of Agro-processing plants in strategic locations will gear the Authority towards guaranteeing markets and promote value addition and beneficiation of produce. This will ensure development and industrialization of marginalized rural communities. Strategy 4: Acquisition of Capital Equipment and Machinery Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 35 | P a g e The attainment of capital equipment and machinery will assist in timeously supporting farming operations. The hiring out of out excess capacity allows for the generation of additional revenue to sustain the organization’s plans. Strategy 5: Strategic Inputs Reserve (Lead time at least 3months) Successful farming is hinged on timeous availability of inputs (Seed and Fertilizers) to meet planting dates that encourage maximum yields across ARDA Estates and Rural Irrigation schemes. The creation of a revolving fund will guarantee procurement of inputs and sustenance of on the ground operations Strategy 6: Rebranding The repositioning of ARDA in the market through rebranding and restructuring enables the business to address its brand equity through realignment of its Vision and Mandate. This allows for the transformation of stakeholders mindsets and stereotypes Strategy 7: Introduction of Commercial Services Division Introduction of the commercial services division will support the institutions anchor pillars through vertically integrating the Agriculture value chain and introduce revenue generating initiatives to ensure self-sustenance. Strategy 8: Cost Leadership During our production process there is need for cost- leadership so that there is a competitive advantage and easy market penetration without compromising quality. Strategy 9: Recruitment and Retention of Skilled Human Capital As ARDA in order for us to achieve our mandate and attain the vision we need qualified and skilled personal that is aligned with the organisational direction and can execute their duties in the best interest of the authority. Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 36 | P a g e Strategy 10: Manage Synergies (ZINWA, Department of Irrigation etc) The success of the Authority is also dependent on the synergies that we have with other government organizations. There is need to monitor and maintain relationships for the quick execution of our duties and responsibilities. Strategy 11: Technology Deployment Technology deployment will improve both internal and external operational efficiencies. In addition, this will see farmers benefiting from increased quality yield output, value addition and access to markets at competitive pricing. This stimulates economic growth in associated processing and downstream industries. Strategy 12: Exports ARDA’s establishment of export market products will give access the authority foreign currency to expand productivity and will contribute to the countries Balance of Payments Strategy 13: Vertical Integration Through vertical integration ARDA will be able to streamline its operations by taking direct ownership of the different stages of the agricultural value chain which will lead to productivity and efficiency. Key Performance Ratios Year 2021 2022 2023 2024 2025 2026 Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 37 | P a g e Profitability: Measures how the Authority has effectively used the investment in the Authority to generate profits Gross Profit Margin 64% 60% 60% 60% 60% 60% Net Profit Margin 45% 20% 30% 30% 30% 30% Assets Turnover Ratio 117% 366% 243% 230% 231% 195% Overheads to Total Income Ratio 35% 53% 30% 30% 30% 30% Gross Profit Margin ' the percentage of sales revenue the Authority keeps after covering all direct costs associated with crop and livestock production. The gross profit margin is expected to be maintained over the 5 year period at 60% as the Authority production increases.' Net profit margin ' the percentage shows how much profit is generated from every dollar in income/sales after accounting for all expenses for the operation of the Authority. The Net profit margin is expected to grow as the Authority operations increases through increased productivity and value addition initiatives.' Assets Turnover Ratio' the ratio measures how the Authority will effectively use its existing and expected assets to generate revenues. As the Authority acquires assets it expects that the assets efficiency remains high showing the effective use of the assets.' Overheads to Total Income Ratio' the ratio represents the level of costs to total operating income. The cost to income ratio is expected to be higher in 2022 as the Authority expands its operations and expectations are that the ratio will remain at an acceptable rate in the years to come through both revenue maximisation and cost containment initiatives.' Liquidity Ratios: Measures the Authority's Ability to meet its liabilities as they fall due Current ratio 5:1 5:1 5:1 5:1 5:1 5:1 Acid test ratio 3:1 3:1 3:1 3:1 3:1 3:1 Current ratio' measures the Authority's ability to meet its short-term obligations or those due within year. The current ratio will be managed at 5:1 through cash generating, cost and capital expenditure management initiatives. Acid test ratio ' compares the Authority's quick assets (cash and receivables) to its current liabilities. It is used to determine short term liquidity and measures the ability to pay bills as they fall due. Therefore, the ratio excludes inventory. The ratio will be managed at 3:1 through cash generating, cost and capital expenditure management initiatives Results Based Budgeting (RBB) Technical Guidelines Government of Zimbabwe, 2020 Strategic Plan Guidelines 38 | P a g e Capital Structure Ratio: Measures the extent to which the Authority is Financed by borrowed funds Gearing Ratio 1% 20% 20% 23% 21% 23% Debt to Equity 1% 25% 25% 29% 27% 29% Gearing ratio ' measures to what degree the Authority's operations are funded by borrowings and not shareholders' funding. The gearing ratio is expected increase as the Authority capitalises its operations towards expansion of its operations and industrialisation.' The debt to equity ratio ' measures the extent to which the Authority is financed from debt rather than its own operations. The ratio will increase as the Authority increases its agricultural operations and industrialisation.'