1 the dti Medium-Term Strategic Plan 2011-2014 Presentation to the Select Committee on Trade and...

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the dti Medium-Term Strategic Plan 2011-2014

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

Date : 12 April 2011Date : 12 April 2011

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ContentsContentsStrategic Overview:the dti’s vision;Mission;Strategic Objectives; andClusters

Key Interventions for 2011/12 -2013/14Allocated BudgetLegislative programmeStrategic Risks

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Strategic Overview

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the dti’s visionthe dti’s vision

“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”.

MissionMissionthe dti’s Mission is to:

Promote structural transformation, towards a dynamic industrial and globally competitive economy;

Provide a predictable, competitive, equitable and socially responsible environment, conducive to investment, trade and enterprise development;

Broaden participation in the economy to strengthen economic development; and

Continually improve the skills and capabilities of the dti to effectively deliver on its mandate and respond to the needs of South Africa’s economic citizens.

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Strategic ObjectivesStrategic ObjectivesFacilitate 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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the dti Clustersthe dti ClustersThe work of the dti is organised in terms of the following

clusters:-

Industrial Development – development of policies & strategies that promote sector competitiveness, growth, job creation & efficient administration of support measures

Trade, Investment and Exports - strengthening trade & investment links with key economies; & fostering African development, including through regional and continental integration & development co-operation in line with the New Partnership for African’s Development (NEPAD)

Broadening Participation - developing interventions & strategies that promote enterprise growth, empowerment & equity

Regulation - development & implementation of coherent, predictable & 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 Interventions for

For 2011/12 MTEF Period

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Key Interventions – Industrial Key Interventions – Industrial DevelopmentDevelopment

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

Industrial CompetitivenessUpscale industrial policy by tabling the annual rolling Industrial Policy Action Plan to Cabinet. Key focus areas for the IPAP 2 2011-12 are:

SkillsInnovation & technologyProcurementIndustrial financing – expanding concessional financing to manufacturing sectorDevelopmental trade policies – locking out unsafe imports and creating market access

for SA’s exports

Sector designation templates completed and submitted to the National Treasury for local procurement.

Six (6) sectors/sub-sectors

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

National Industrial Participation Programme (NIPP) Guidelines reviewed and implemented

Table in Cabinet the review of NIPP guidelines

Technical skills to support industrial development facilitated through the Tooling and Foundry Initiative

Training 420 Level 1 apprenticeship students and; Training 150 workers on the Industrial Skills Upgrading Programme

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Industrial financingIndustrial financing

Launch the Green Enterprise Competitiveness Programme (GEMP)Critical Infrastructure Programme (CIP) – support eight (8) enterprises worth R4bn Revise Guidelines on Capital Project Feasibility Programme ( CFPP), Automotive

Investment Scheme (AIS), and Cooperative Incentive Scheme (CIS)

Support 10 projects through the Business Process Services (BPS) Support 60 Films productions under the Film and TV ProductionsDevelop Industrial Development Zones (IDZ) Policy, Action plan and Funding Model

Name of incentive scheme

Value of investment Projected no. of jobs supported

BPS R350 m 5000

Film R1,5 bn

TSP R 4 bn 5 600

AIS R 5,1bn 2 500

12i R 8bn 2 000

MIP R 6bn 8400

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Industrial financingIndustrial financing

Incentive scheme No of enterprises supported

EMIA 435

Sector Specific Assistance Scheme Project Funding (SSAS PF)

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Sector Specific Assistance Scheme Emerging Exporters (SSAS EE)

350

Capital Project Feasibility Programme (CPFP) 8

Industrial Competitiveness and Upgrading Programme (ICUP)

220

EIP: Tourism Support Programme 260

Key Interventions – Trade, Key Interventions – Trade, Investment & ExportsInvestment & Exports

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

Consolidate South African Development Community (SADC) Free Trade Agreement ( FTA) Achieve 90% target of tariffs at 0%40% of Non tariff barrier (NTB) addressed

Implement Southern African Customs Union (SACU) 5 point plan Report on agreed work plan for regional industrial intervention

Concluded Trilateral SADC-East African Community (EAC) - Common Market for Eastern and Southern Africa (COMESA) FTA

Reports on SA and SACU negotiating positions

Key Interventions – Trade, Investment Key Interventions – Trade, Investment & Exports& Exports


SA positions on SACU-USA TIDCA on Technical Barriers to Trade (TBTs), SPS and Customs developed

Develop SACU positions on TBT & Customs Cooperation

Extend, expand and deepen Africa Growth and Opportunity Act (AGOA)Lobby for expansion of product coverage. Single stage transformation for

SA. Engagement to extend AGOA

Conclude SACU-India Preferential Trade AgreementReport on the 6th round of SACU-India Preferential Trade Agreement

negotiations

Conclude Economic Partnership Agreement (EPA) acceptable to RSA Progress report produced

Key Interventions – Trade, Investment Key Interventions – Trade, Investment & Exports: Trade Policy& Exports: Trade Policy


Define Trade aspects of BRICS arrangementInitiate research on South African position on trade aspects of BRICS

Intra-IBSA trade Increase in value by US$ 17 billion 40% Republic of South Africa (RSA) contributionReport on identified and resolved NTBs with Brazil and India

Implement Cabinet decision on Investment Treaty PolicyWritten proposal to re-negotiate or terminate existing Bilateral Investment

Treaties (BITs)

Further Development of Trade Policy and Strategy Framework

Policy Papers prepared

Key Interventions – Trade, Key Interventions – Trade, Investment & Exports: Trade policyInvestment & Exports: Trade policy


Implement trade aspects of Comprehensive Strategic Partnership Agreement (CSPA) with China

Obtain written response from China on South Africa’s product request list

SA position on the trade aspects of climate change negotiationsFinal position paper on the trade aspects of climate change for COP 17

Develop 4 infrastructure projects through spatial development initiatives (SDIs) 3-5 functioning SDIs

Report on four (4) SDI projects prepared to the value of R2 to R4 billion and implement 1 R1bn SDI project

Key Interventions – Trade, Investment Key Interventions – Trade, Investment & Exports: Investment & Exports& Exports: Investment & Exports


Implement National exporter development programmeTrain 500 new companies

Project Investment Emerging Market and Investment Assistance (EMIA)Export to the value of R800 million

Promote RSA products in targeted high-growth markets Through 18 national pavilions Assisting 310 companies financially Undertake 40 trade missions

Key Interventions – Trade, Investment Key Interventions – Trade, Investment & Exports: Investment & Exports& Exports: Investment & Exports


Develop regional export promotion strategies and action plans for high growth markets based on market intelligence

6 International Trade Initiatives

Investment in targeted sectors Increased to R40bn

Recommendations on work permits viz. capital waivers Corporate permits Inter-company transfers Visa facilitations

230 recommendations to facilitate investor entry into South Africa

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Key Interventions – Broadening Key Interventions – Broadening ParticipationParticipation

Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth

Implement recommendations of the SMMEs initiatives review reportImplement CIS and BBSDP

CIS: support 130 enterprises BBSDP: support 1455 enterprises

Projected Jobs to be supported under CIS & BBSDP CIS: 650 and BBSDP: 1 700

Identify and approve spatial development projectOne (1) project

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Programme focused publications

8 programme publications

Targeted integrated multimedia awareness campaigns

Conduct 6 campaigns

User-friendly and effective access points for the dti’s clients and stakeholders by providing

100% operational and up to date website

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Enterprise development & financing

Implement Support Programme for Industrial Innovation (SPII) Total value of R40m (SPII contribution R20m and industry contribution R20m) Support 20 new projects

Support technological competencies via the Technology and Human Resources for Industry (THRIP)

Support 2 100 students and 700 researchers in chemical, ICT, Metal and minerals, Agriculture and Biotech and energy

The provincial spread as follows: Gauteng 140 projects ; Northwest 25 projects ; Limpopo 1 project ; KZN 20 projects; Eastern Cape 23 projects ; Western Cape 74 projects ; Free state 10 projects

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Co-operatives

Co-operative Development Agency or equivalent established Finalise business case for the development of Co-operative Development AgencySubmit a Co-ops Bill to Cabinet

Support the establishment of small scale cooperatives in IPAP priority sectors 120 small scale cooperatives

Gender and Women’s Economic Empowerment

Approve of the National Strategic Framework on Gender and Women Empowerment

Finance through Isivande Women’s Fund (IWF)Support 50 new projects

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Enterprise Finance and Technology Support

Support the seda Technology Programme (stp)

Establish 244 new SMMEs and create 1155 jobs

Expanded Centre for Entrepreneurship Roll-out of one (1) centre

Financial support for the Foundation of African Business and Consumer Services (FABCOS) Academy

Train and mentor 960 enterprises

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Enterprise Finance and Technology Support

Revised Workplace Challenge Programme 300 companies participating Assess feasibility of 3 new industrial clusters, 100 unemployed graduates placed

Broad Based Black Economic Empowerment

Develop Draft amendment BBBEE Bill and implementation of the reviewed Codes of Good Practice for BBBEE

Implementation of the reviewed Codes of Good Practice for BBBEE

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Key Interventions – Regulation: Law Key Interventions – Regulation: Law reformreform

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

Impact of regulation on business and economic citizens assessed Produce three (3) reports for Regulatory Impact Assessment (RIA) for the National

Credit Act, Liquor Act and Companies Act Regulations

Conducted legislative audit to harmonise and align legislationCo-ordinate legislation audit for assessment, and review for alignment and produce a

report

Policy & legislation developed and reviewed1 policy developed and submitted to cabinet (IP) Develop and publish 4 regulations (Gambling, National Credit Act, Estate Agency

Affairs Board and National Lotteries) Develop 2 bills for Estate Agency Affairs Board & National Lottery

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Key Interventions – RegulationsKey Interventions – RegulationsStrategic Objective 4: Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner

Policy and legislative developed and reviewed

Develop 2 bills for Estate Agency Affairs Board & National Lottery

Created a more efficient registration system Develop the automated liquor registration system

Enhanced stakeholder interaction Develop Stakeholder management strategy.

Produce policy positions and treaties for publication 4 policy positions

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Key Interventions – Administration Key Interventions – Administration & Coordination& Coordination

Strategic Objective 5: To create a professional, competitive and customer-focussed working environment that ensures effective and efficient service delivery

Annual HR Plan

Full implementation of the Annual HR related Plans (100%)

Reduction of the vacancy rate

Reduction of the staff turnover to 9%

Employment of People With Disability increased to 2.3%

Employment of Women employed in senior management positions increased to 42%

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Upgraded ICT infrastructure implemented

Full implementation of Phase 2 of ICT Infrastructure Plan 100%

80% Implementation of ICT Security Plan

Financial management

92% of payments to suppliers made within 21 days

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Service delivery Improvement

Implement and review Service Delivery Improvement Plan (SDIP)

Risk management and Fraud prevention

Full implementation of Annual Fraud Prevention Plan (100%)

Full implementation of Ethics Management Plan (100%)

Agency ManagementEffective oversight of public entities

Approval and implementation of the Governance Framework

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Allocated BudgetAllocated Budget

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MTEF BudgetMTEF Budget2011/12 2012/13 2013/14

R Million Medium-Term Estimates

Programmes Medium-Term Expenditure Framework (MTEF)

Administration

466,270 499,423 558,780International Trade and Economic Development

129,679 132,595 139,934

Empowerment and Development

839,695 863,124 909,349

Industrial Development

1,266,895 1,487,194 1,490,974 Consumer and Corporate Regulation

231,671 242,109 256,712

The Enterprise Organisation

3,469,114 3,743,267 3,795,792

Trade and Investment

306,131 315,115 332,080 Communication and Marketing

77,441 84,077 88,816

TOTAL FOR PROGRAMMES

6,786,896 7,366,904 7,572,537

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Amount in R’000

Industrial Development 4,591,306

Trade, Investment & Exports 435,810

Broadening Participation 984,398

Regulation 231,671

Administration & Co-ordination 543,711

Total 6,786,896

2011-12 Budget Allocation per 2011-12 Budget Allocation per Cluster Cluster

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the dti’s 5 year spending trend

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Legislative ProgrammeLegislative Programme

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Legislative ProgrammeLegislative ProgrammeCo-operatives Amendment Bill

The Strategy and legislation was gazetted on 21 January 2011 and the dti aims to introduce this Bill in June 2011.

Estate Agents Amendment Bill

The Policy and Law Review was taken to Cabinet in November 2010. The introduction of this Bill will be determined by the outcome of the consultation between the Ministers of Human Settlements and Trade and Industry.

National Credit Amendment Bill

The Bill aims to amend certain provisions of the principal Act aligned to policy development - which will enhance the effectiveness of the debt review, debt counseling and restructuring process. The Department aims to introduce this Bill in September 2011.

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Legislative ProgrammeLegislative Programme

Broad-based Black Economic Empowerment Amendment Bill

The legislative work done by the dti was handed over to the Advisory Council for review and discussion. the dti aims to introduce this Bill in September 2011.

Lotteries Amendment Bill

The aim of the Bill is to streamline the administration of the Lottery in order to ensure efficiency. the dti aims to introduce this Bill in August 2011.

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Strategic Risks Strategic Risks

andand

ChallengesChallenges

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Strategic Risks & ChallengesStrategic Risks & Challenges

Intra-departmental coordination

Monitoring & evaluation of programmes

Agency management

Inconsistent service delivery standards

Pace of regulatory reform - Promulgation of PPPFA regulations, Export tax on scrap metals

Insufficient human resource capacity within the dti and in the foreign offices

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Thank youThank you

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