date: 08 may 2013 director-general lionel october

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Presentation to the Select Committee Presentation to the Select Committee on Trade and International Relationson Trade and International Relations

the dti’s 2013/14-2015/2016 Annual Performance Planthe dti’s 2013/14-2015/2016 Annual Performance Plan

Date: 08 May 2013Date: 08 May 2013Director-GeneralDirector-GeneralLionel OctoberLionel October

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CONTENTSCONTENTS

the dti’s Vision, Mission and Strategic Goals

Key achievements 2012/13

Key interventions for 2013/14

Allocated resources

Challenges

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VISIONVISION

“A dynamic industrial, globally competitive South African

economy, characterised by inclusive growth and development,

decent employment and equity, built on the full potential of all

citizens”

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STRATEGIC GOALS STRATEGIC GOALS Facilitate transformation of the economy to promote industrial

development, investment, competitiveness and employment creation.

Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives.

Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth.

Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner.

Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery.

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CORE PROGRAMMES AND CLUSTERSCORE PROGRAMMES AND CLUSTERS

Industrial Development – the development of policies and strategies that promote sector competitiveness, growth, job creation and efficient administration of support measures.Trade, Investment and Exports – the strengthening trade and investment links with key economies and fostering African development, including through regional and continental integration and development co-operation in line with the New Partnership for African’s Development (NEPAD).Broadening Participation - the development of interventions and strategies that promote enterprise growth, empowerment and equityRegulation – the development and implementation of coherent, predictable and transparent regulatory solutions that facilitate easy access to redress and efficient regulatory services for economic citizens.Administration- effective co-ordination of departmental programmes and provision of necessary support for efficient implementation.

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KEY ACHIEVEMENTS 2012/13: KEY ACHIEVEMENTS 2012/13: IPAP

Key AchievementsKey Achievements

Achievements on IPAP 2 (cont…)

• 4 sectors have been designated for local production.

• National Industrial Participation Programme (NIPP) - Adopted by Cabinet and fully aligned with the Competitive Supplier Development Programme (CSDP)

• The 12I Tax Incentive has supported large manufacturing investments worth R6.8 bn, with 1,115 jobs expected to be created

• Manufacturing Competitiveness Enhancement Programme (MCEP) - Launched in May 2012; 189 applications have been approved for grants valued at R4,2bn

• R5.5 bn committed for investment in the Green Economy

• Localisation in the renewable energy generation programme

Industrial DevelopmentIndustrial Development

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Key AchievementsKey Achievements

Achievements on IPAP 2 …cont

• Finalisation of the transition from the Motor Industry Development Programme (MIDP) to the Automotive Production and Development Programme (APDP)

• People-Carrier Automotive Incentive Scheme (P-AIS) launched

• Clothing and Textiles Competitiveness Programme (CTCP) has stabilised sectoral production and employment – supporting 49,888 jobs

• Aquaculture Development and Enhancement Programme (ADEP), an incentive scheme to increase investments in the sector, enhancing competitiveness and growing employment

• Review of port tariffs for manufactured exports

Industrial DevelopmentIndustrial Development

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OVERVIEW OF the dti’s KEY PLANNED INTERVENTIONS

OVER 2013/14

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KEY INTERVENTIONS – INDUSTRIAL KEY INTERVENTIONS – INDUSTRIAL DEVELOPMENTDEVELOPMENT

Upscale industrial policy by tabling the annual rolling Industrial Policy Action Plan (IPAP) to Cabinet and produce quarterly implementation reports.

Three (3) sector specific action plans developed to influence and respond to the changing economic environment to enhance manufacturing potential.

Complete and submit designation templates to the National Treasury for two (2) subsector/sectors for local procurement.

Two (2) key research projects will be undertaken to facilitate development of interventions to expand value-added activities in existing and new sectors of the economy including beneficiation.

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Finalisation and Implementation of the Special Economic Zone (SEZ) Act

Special Economic Zone (SEZ) policy and Bill approved by Cabinet and endorsed by Parliament

Enhanced technological competencies by supporting 1 350 students and 700 researchers via the Technology and Human Resources for Industry (THRIP).

Support Programme for Industrial Innovation (SPII) implemented by creating 20 new projects valued at R43m

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Tool-making apprentice programme Support 385 students enrolled for the Tool Making Apprentice

Programme

Industrial upgrading programme Support 220* workers trained through the industrial upgrading

programme

940 enterprises approved to participate in the Export Marketing and Investment Assistance (EMIA) scheme

51 companies supported through the Workplace Challenge Programme (WCP)

*There is a misprint on the target of 20 on the Annual Performance Plan 2013-2016. It should read 220.

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Industrial Development IncentivesIndustrial Development IncentivesDescription

Planned 2013/14Number of firms/projects

supportedPotential jobs supported Investment

leveragedIndustrial FinancingAutomotive Incentive Scheme (AIS)

25 550 R1,6bn

Passenger Automotive Incentive Scheme (PAIS)

5 - R500m

Business Process Services (BPS)

8 3000 R400m

Film and Television 65 3000 R1,8bn12 I tax allowance 10 2 200 R10bnCritical Infrastructure Programme (CIP)

12 4 000 R6bn

Manufacturing Competitiveness Enhancement Programme (MCEP): Production Incentive

300 2 500 -

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Africa regional development programme implemented-progress report to be produced on implementation of agreed programme and projects for priority development areas in SACU, SADC-FTA and SDI infrastructure projects.

Conclusion of Economic Partnership Agreement (EPA) trade negotiations with the European Union (EU), Southern African Customs Union (SACU) India Preferential Trade Agreement (PTA), Southern African Development Communities (SADC)- East African Community (EAC)- Common Market For Eastern and Southern Africa (COMESA) Free Trade Agreement (FTA) –Tripartite-Free Trade Agreement (T-FTA): Status report to be produced on progress towards conclusion of trade negotiations.

KEY INTERVENTIONS – TRADE, KEY INTERVENTIONS – TRADE, INVESTMENT and EXPORTSINVESTMENT and EXPORTS

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Increased manufactured exports under EMIA by increasing the value of exports to R900 m

Investment facilitation in targeted sectors- R50bn

KEY INTERVENTIONS – TRADE, KEY INTERVENTIONS – TRADE, INVESTMENT and EXPORTSINVESTMENT and EXPORTS

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Provincial SpreadNorth West:12I: 1AIS: 1CIP: 2

Northern Cape:12I: 0AIS: 0CIP 0

Western Cape:12I: 1AIS: 1CIP:1

Eastern Cape:12I: 2AIS: 12CIP: 1

Kwa Zulu Natal:12I: 3AIS: 8CIP 0

Mpumalanga:12I: 0AIS: 0CIP:2

Limpopo:12I: 0AIS: 0CIP: 0

Gauteng:12I: 4AIS: 7CIP: 0

Free State:12I: 1AIS: 0CIP 0

Provincial Spread: Manufacturing Incentives – past performance 2012/13

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Provincial SpreadNorth West:BPS: 0Film: 0

Northern Cape:BPS: 0Film: 0

Western Cape:BPS: 3Film: 22

Eastern Cape:BPS: 0Film: 0

Kwa Zulu Natal:BPS: 5Film: 2

Mpumalanga:BPS: 0Film: 0

Limpopo:BPS: 0Film: 0

Gauteng:BPS: 4Film: 46

Free State:BPS: 0Film: 0

Provincial Spread: Services Incentives – past performance 2012/13

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Provincial SpreadNorth West:MCEP: 1EMIA: 35

Northern Cape:MCEP: 1EMIA: 4

Western Cape:MCEP: 61EMIA: 167

Eastern Cape:MCEP: 16EMIA: 62

Kwa Zulu Natal:MCEP: 31EMIA: 107

Mpumalanga:MCEP: 4EMIA: 47

Limpopo:MCEP: 4EMIA: 17

Gauteng:MCEP: 69EMIA: 626

Free State:MCEP: 2EMIA: 19

Provincial Spread: Competitiveness Incentives – past performance 2012/13

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seda Technology Support Programme (stp)

Disburse R119 m to seda for the establishment of new incubators and support of existing incubators; and support of Small Micro and Medium Enterprises (SMMEs).

Performance monitoring reports on seda technology programme to be produced.

Implementation of Co-operative Amendment Act

Approval of business case for the establishment of the Co-operative Development Agency with phased-in implementation.

Approval of business case for the establishment of the Co-operative Tribunal with phased-in implementation .

KEY INTERVENTIONS – BROADENING KEY INTERVENTIONS – BROADENING PARTICIPATIONPARTICIPATION

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Implement the National Strategic Framework on Gender and Women Empowerment

National Strategic Framework on Gender and Women Empowerment to be submitted to Cabinet for approval and a phased-in implementation report to be produced

Isivande Women Fund Approve 18 new projects

Implement B-BBEE Amendment Act and Revised B-BBEE Codes of Good Practice

Approval of B-BBEE Amendment Act Approval of revised B-BBEE Codes of Good Practice


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1 560 enterprises approved for Black Business Supplier Development Programme (BBSDP)

Finalisation and implementation of Informal Sector Strategy

Finalisation and implementation of Youth Enterprise Development Strategy (YEDS)


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Provincial SpreadNorth West:BBSDP: 34CIS: 19EIP: 16ISP: R 0

Northern Cape:BBSDP: 7CIS: 6EIP: 15ISP: R 0

Western Cape:BBSDP: 71CIS: 15EIP: 135ISP: 0

Eastern Cape:BBSDP: 114CIS: 79EIP: 76ISP: 4

Kwa Zulu Natal:BBSDP: 185CIS: 23EIP: 111ISP: 4

Mpumalanga:BBSDP:84CIS: 18EIP: 30 ISP: 0

Limpopo:BBSDP: 196CIS: 63EIP: 35 ISP: 0

Gauteng:BBSDP: 429CIS: 63EIP: 217ISP: 5

Free State:BBSDP: 30CIS: 28EIP: 22ISP: 1

Provincial Spread: Broadening Participation Incentives – past performance 2012/13

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Broadening Participation IncentivesBroadening Participation Incentives

Description

Planned 2013/14

Number of firms/projects supported

Potential jobs supported Investment leveraged

Enterprise Incentive Programme (EIP): Manufacturing Incentive Programme (MIP)

235 4 200 R3,5bn

Aquaculture Development Enhancement Programme (ADEP) - (New Incentive)

10 220 R75m

Cooperative Incentive Scheme (CIS)

375 - -

Incubator Support Programme (ISP) (New Incentive)

50 540 R800m

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KEY INTERVENTIONS - REGULATIONKEY INTERVENTIONS - REGULATION

Impact assessment of regulation on business and economic citizens

Two (2) Regulatory Impact Assessment Reports with recommendations for approval on Liquor and Gambling.

Policies, Bills and Regulations to enforce fair business practicesDevelop: Two (2) policies for approval on Intellectual Property and Gambling

Act. Four (4) Bills for approval on National Credit Act, Lottery, Liquor and

Business Acts. Two (2) regulations for publication.

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KEY INTERVENTIONS – ADMINISTRATIONKEY INTERVENTIONS – ADMINISTRATION

Attract, develop and retain professional and skilled officials Reduction of the vacancy rate to 7%. Reduction of the staff turnover rate to 7%. Employment of People With Disability increased to 2.9% . Employment of Women in senior management positions increased to

43.8% .

Creditors’ payments made in accordance with legislative requirements made within 30 days.

Service Delivery Improvement Plan - Report produced on the implementation of 2012-2015 Service Delivery Improvement Plan (SDIP).

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KEY INTERVENTIONS – ADMINISTRATIONKEY INTERVENTIONS – ADMINISTRATION

Public Awareness Platforms and Events

Conduct 12 programme-focused publications to improve the public awareness.

Conduct 14 multimedia awareness campaigns.

Conduct 80 events, outreach engagements and exhibitions 20 Events 40 Outreach engagements 20 Exhibitions

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Provincial SpreadNorth West: 2

“taking the dti to the people” –planned campaigns 2013/14

Gauteng: 7Limpopo: 7

Mpumalanga: 6

Kwa-Zulu Natal: 5

Free State: 3

Eastern Cape: 5

Western Cape: 2

Northern Cape: 3

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ALLOCATED BUDGETALLOCATED BUDGET

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Medium Term Expenditure FrameworkMedium Term Expenditure Framework

2013/14 2014/15 2015/16

Medium-Term Estimates (R ’000)

Programmes Medium-Term Expenditure Framework (MTEF)

Administration 690,1 720,6 748,3

International Trade and Economic Development

138,1 R 150,7 156,9

Broadening Participation 968,3 1 004,0 1 054,9

Industrial Development: Policy Development

1 606,5 1 771,3 2 049,8

Consumer and Corporate Regulation

256,2 248,2 258,3

Industrial Development: Incentive Administration

5 543,1 5 645,7 6 704,1

Trade and Investment South Africa

369,7 417,4 432,4

TOTAL FOR PROGRAMMES 9 572,6 9 958,0 11 404,7

Alignment of the Budget to the Strategic Goals

Strategic Goal Alignment with Govt Outcomes Budget Allocation per Strategic Goal

R’000

1. Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation.

Decent employment through inclusive growth

6 982 181

2. Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives.

Create a better South Africa, a better Africa and a better world

508 379

3. Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth.


1 135 784

4. Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner.


256 157

5. Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery.

An efficient, effective and development- oriented public service and an empowered, fair and inclusive citizenship

690 079

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CHALLENGESCHALLENGES

The economic slowdown in traditional markets limits export growth.

Building support from big business to form partnerships with township business, small scale black farmers and the informal sector.

Creating buy-in for local procurement.

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THANK YOUTHANK YOU

QUESTIONS ?QUESTIONS ?

date: 08 may 2013 director-general lionel october

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