1 the dti Strategic Plan 2012-2017 & Annual Performance Plan 2012-2015 Presentation to the Portfolio Committee on Trade and Industry Date : 16 March 2012.

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the dti Strategic Plan 2012-2017 & Annual Performance Plan 2012-2015

Presentation to the Portfolio Presentation to the Portfolio Committee on Trade and IndustryCommittee on Trade and Industry

Date : 16 March 2012Date : 16 March 2012

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CONTENTSCONTENTSthe dti’s Vision, Mission and Strategic Oriented Outcomes Goals

Key achievements for the 2011/12 financial year

Key Interventions for 2012/13

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 FOCUS STRATEGIC FOCUS • 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 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 and Co-ordination - effective co-ordination of departmental programmes and provision of necessary support for efficient implementation.

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KEY ACHIEVEMENTS FOR 2011/12KEY ACHIEVEMENTS FOR 2011/12

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Key AchievementsKey Achievements

SO1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation

Designation of 5 sectors and promulgation of the amended PPPFA Regulations (Buses, Canned Vegetables, Textile and Clothing, Leather and Footwear, Power Pylons and Rail Rolling Stock)

Passenger Railway Agency of South Africa (PRASA) agreement on 40% local content for rail signaling in Western Cape and Durban

91 projects supported through the Automotive Incentive Scheme (AIS) with the value of investment leveraged being R4,7 bn

The Energy Efficient Building Regulations launched by the Minister in October 2011

Launched the South African Renewable Initiative (SARi) and the CleanTech Awards

Launched the Industrial Energy Efficiency Programme in November 2011

Industrial DevelopmentIndustrial Development

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Key AchievementsKey Achievements

SO1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation

67 Film and TV productions supported with the value of investment leveraged being R2 bn

The Manufacturing Competitiveness Enhancement Programme (MCEP) being finalised with the National Treasury

2 projects with the value of R3,5 bn investment have been approved under CIP with projected direct jobs of 645

In the Automotive sector R15 bn has been secured in investment commitments from assemblers and component suppliers. FAW has committed a further $100 mn for a truck and car assembly plant

In Business Process Services, R4bn new investment has been facilitated with the potential of 2 690 jobs

Industrial DevelopmentIndustrial Development

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Overview of Industrial Overview of Industrial Development Incentives Development Incentives

Description

Actual

Number of firms/projects supported

Investment leveraged

AIS 91 R4 ,7 bnBPS 23 projects R4 bn (3years)

Film & Television 67 Film productions R2 bn12 I 13 projects R21,1 bn

Trade, Investment & ExportsTrade, Investment & ExportsSO2: Build mutually beneficial regional and global relations to SO2: Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic advance South Africa’s trade, industrial policy and economic development objectivedevelopment objective

Supported 896 companies through EMIA

Investment Pipeline of potential investment projects of R 34,4 bn e.g. Nestle and Unilever

43 trade missions and 20 National Pavilions undertaken

Facilitated business delegations and fora to emerging markets, e.g. Mozambique, Benin, Cameroon, Turkey and UAE and Oman

Facilitated SA Exports in Beijing and Shanghai – more than 70 companies participated

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Trade, Investment & ExportsTrade, Investment & ExportsSO2: Build mutually beneficial regional & global relations to advance SO2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development South Africa’s trade, industrial policy & economic development objectiveobjective

Submitted a revised list to China on value added exports to and investment from China

High level in-principle paper on Regional Industrial Development Policy finalised with regards to the SACU 5 point plan.

Organised and participated in the Angola-South Africa Spatial Development Initiative meeting in Angola in conjunction with South African Development Finance Institutions.

Participated in the 8th WTO Ministerial Conference in Geneva.

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Broadening ParticipationBroadening ParticipationSO3: SO3: Facilitate broad-based economic participation through targeted Facilitate broad-based economic participation through targeted interventions interventions to achieve more inclusive growthto achieve more inclusive growth

Final SMME Review Report completed and presented at SMME SummitFacilitated the establishment of 180 new small scale Co-operativesReviewed Codes of Good Practice and ready to be gazetted pending Presidential Council endorsementFeasibility study for the proposed Saldahna IDZ completed and out for public comment689 SMMEs projects supported through the Enterprise Investment Programme (EIP) with the value of investment leveraged being R8,9 bn and 15 000 potential jobs being created175 Cooperatives supported through Cooperative Incentives Scheme269 Enterprises supported through the BBSDP

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RegulationRegulationSO4: SO4: Create a fair regulatory environment that enables investment, Create a fair regulatory environment that enables investment, trade & enterprise development in an trade & enterprise development in an equitable & socially equitable & socially responsible manner responsible manner

First draft of Investment Act completed as well as policy discussion paper on Foreign Direct Investment Act. Tabled for discussion at next IMC meeting

Co-operatives Amendment Bill submitted to Cabinet and Business Case to National Treasury (NT)

B-BBEE Amendment Bill approved by Cabinet and issued for public comment

SEZ policy & bill approved by cabinet for public comment

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RegulationRegulationSO4: SO4: Create a fair regulatory environment that enables investment, Create a fair regulatory environment that enables investment, trade & enterprise development in an trade & enterprise development in an equitable & socially equitable & socially responsible manner responsible manner

IP Amendment Bill for Protection of Traditional Knowledge adopted by National Assembly

National Lotteries Policy Framework and Bill drafted for approval Finalized the Gambling Review process and the review of the

Gambling ActEstablished and launched the Companies TribunalReviewed and developed the policy on the National Credit Act

(NCA)Developed a Policy and started the drafting of the Businesses

Act

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Administration & Co-ordinationAdministration & Co-ordinationSO5: SO5: Promote a professional, ethical, dynamic, competitive & Promote a professional, ethical, dynamic, competitive & customer-focused working environment that customer-focused working environment that ensures effective & ensures effective & efficient service deliveryefficient service delivery

Vacancy rate as at 31 March 2011 was 16.9%. Reduced to 8.45% as at 29 February 2012.

Achieved targets of 43.11% for women in SMS and 2.34% of persons with disabilities.

92% of all creditors payments made within 10 days, 8% of all creditors payments made within 14 days

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Overview of the dti’s Overview of the dti’s key planned interventions over the 2012/13 key planned interventions over the 2012/13

periodperiod

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KEY INTERVENTIONS – KEY INTERVENTIONS – INDUSTRIAL DEVELOPMENTINDUSTRIAL DEVELOPMENT

Sector interventionsSector interventions

Upscale industrial policy by tabling the annual rolling Industrial Policy Action Plan to Cabinet and implementation carried out.

Complete and submit designation templates to the National Treasury for three (3) subsector/sectors for local procurement.

Support technological competencies via the Technology and Human Resources for Industry (THRIP), by supporting 2 200 students and 850 researchers in Chemical, ICT, Metal and Minerals, Agriculture and Biotech and Energy.

Support 20 new projects to the total value of R36m (SPII contribution R20m and industry contribution R16m) through the Support Programme for Industrial Innovation (SPII).

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Support to enterprises through Automotive Incentive Scheme (AIS) and 12I tax allowance AIS: 54 enterprises; Value of investment: R2bn; and projected jobs: 2 300 12I: 12 enterprises; Value of investment: R10bn; and projected jobs: 2 000

Critical Infrastructure Programme (CIP) – support twelve (12) enterprises worth R6bn.

Business Process Services (BPS), Film and TV Production-support 15 BPS projects, 63 Film productions worth R400m and R1.8bn respectively.

Business Process Services (BPS), support 6000 jobs projected from applications for BPS grants.

Export Market and Investment Assistance (EMIA)-support 860 enterprises to participate in the EMIA Scheme.

Green Enterprise Competitiveness (GEC)- to support 140 enterprises

Launch the Manufacturing Competiveness Enhancement Programme (MCEP)

Legal Metrology Bill to be processed

KEY INTERVENTIONS – KEY INTERVENTIONS – INDUSTRIAL DEVELOPMENTINDUSTRIAL DEVELOPMENT

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

Conclusion of EPA trade negotiations with the EU, SACU-EAC-COMESA (T-FTA) - Report on conclusion of trade negotiations.

Increased manufactured exports under EMIA by increasing the value of exports to R850 m

Investment facilitation in targeted sectors to R45bn

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

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seda Technology Support Programme (stp) Establish 44 incubators Approve 40 technology transfer interventions. Support 268 SMMEs

Implement Enterprise Investment Programme (EIP) Enterprises Supported

Approve 450 SMMEs for MIP (Manufacturing Incentive Programme) Approve 300 SMMEs for TSP (Tourism Support Programme)

Value of projected investments MIP-R6.3bn TSP-R4.2bn

Number of new jobs projected MIP- 9 240 TSP- 6 160

KEY INTERVENTIONS – BROADENING KEY INTERVENTIONS – BROADENING PARTICIPATIONPARTICIPATION

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Implement approved action plan emanating from the SMME review report.

Implement the agreement with National Treasury on the Ten-set aside products.

Support 30 new contracts with companies to participate in the Workplace challenge programme.

Release the approved amended B-BBEE Act for implementation

Release the amended Codes of Good Practice for B-BBEE

implementation.

KEY INTERVENTIONS – BROADENING KEY INTERVENTIONS – BROADENING PARTICIPATIONPARTICIPATION

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Finalise the National Strategic Framework on Gender and Women Economic Empowerment.

Support 60 new projects through the Isivande Women’s Fund.

Cooperative Incentive Scheme (CIS) and Black Business Supplier Development Programme (BBSDP) Support 490 enterprises through CIS Support 700 enterprises through BBSDP Release the approved amended Co-operatives Act for implementationFinalise Informal Sector Strategy

Finalise Youth Enterprise Development Strategy.

KEY INTERVENTIONS – BROADENING KEY INTERVENTIONS – BROADENING PARTICIPATIONPARTICIPATION

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KEY INTERVENTIONS - KEY INTERVENTIONS - REGULATIONREGULATION

Ensuring the submission of three (3) reports on Regulatory Impact Assessment (RIA) for regulation on business and economic citizens.

Development of the National Credit Act (NCA) policy.

Development of two (2) Regulations on Intellectual Property for the protection of Indigenous Knowledge (IK) and the National Lotteries Board.

Special Economic Zones Bill to be processed

Businesses Amendment Bill to be processed

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KEY INTERVENTIONS – KEY INTERVENTIONS – ADMINISTRATION & COORDINATIONADMINISTRATION & COORDINATION

Attract, develop & retain professional and skilled officialsAttract, develop & retain professional and skilled officials

Reduction of the vacancy rate to 5%

Reduction of the staff turnover rate to 9%

Employment of People With Disability increased to 2.4%

Employment of Women in senior management positions increased to 43%

Financial ManagementFinancial ManagementAll eligible creditors’ payments to suppliers made within 30 days

Service Delivery ImprovementService Delivery ImprovementThe Service Delivery Improvement Plan (SDIP) 2012-2015 approved and implemented.

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KEY INTERVENTIONS – KEY INTERVENTIONS – ADMINISTRATION & COORDINATIONADMINISTRATION & COORDINATION

Public Awareness Platforms and EventsPublic Awareness Platforms and Events

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

Conduct 6 multimedia awareness campaigns.

Conduct 80 outreach initiatives.

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ALLOCATED RESOURCESALLOCATED RESOURCES

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MTEF BUDGETMTEF BUDGET

2012/13 2013/14 2014/15

R’000 Medium-Term Estimates

Programmes Medium-Term Expenditure Framework(MTEF)

Administration 608,742 690,473 722,213International Trade and Economic Development 133,462 137,804 149,851

Broadening Participation 879,891 928,362 985,588

Industrial Development: Policy Development

1,482,856 1,535,873 1,673,178

Consumer and Corporate Regulation 244,713 259,580 248,490Industrial Development: Incentive Administration 5,437,565 6,472,083 6,960,512

Trade and Investment (SA) 304,826 328,173 378,308TOTAL FOR PROGRAMMES 9,092,055 10,352,348 11,118,134

CHALLENGESCHALLENGES

The prolonged global recession especially in relation to South Africa’s traditional trading partners, which had a negative impact on the domestic economy,The high cost of capital for productive sectors,Steeply escalating administered prices, especially electricity and ports charges,Skills shortages in critical areas.

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THANK YOUTHANK YOU

QUESTIONS ?QUESTIONS ?