2012/13 Annual Report

Presentation to the Select Committee

05 November 2013

11st DRAFT

EDD Vision is to create decent work for all through meaningful economic transformation and inclusive growth.

EDD Mission is to: co-ordinate the contributions of government departments, state entities and civil

society to effect economic development; improve alignment between economic policies, plans of the State, its agencies,

government’s political and economic objectives and mandate; and promote government’s goal of advancing economic development via the creation

of decent work opportunities.

EDD upholds the following values: Promotion of decent work for all citizens (opportunity of work & quality of

employment); Social partnership and dialogue; Equity and development; and Sustainability (environmental, social and economic)

VISION, MISSION AND VALUES

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Promote decent work through meaningful economic transformation and inclusive growth

Provide participatory, coherent and coordinated economic policy, planning and dialogue for the benefit for all citizens

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STRATEGIC OUTCOME ORIENTATED GOALS

ENTITIES REPORTING TO MINISTER

[1] Competition Commission

[2] Competition Tribunal

[3] International Trade Administration Commission (ITAC)

[4] Industrial Development Corporation (IDC)

[5] Small Enterprise Finance Agency (sefa)

In implementing the NGP, the department develops strategies & implementation plans in cooperation with relevant government departments & agencies. These include:

Coordinating the implementation of the National Infrastructure PlanSupporting inclusion of historically marginalised & vulnerable groupsSupporting strategic implementation of competition policies to encourage inclusive, sustainable economic developmentIdentifying & supporting catalytic projectsAligning work of the IDC and sefa to support dynamic and inclusive growth, and economic diversification

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STRATEGIC ROLE OF EDD

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POLICY AND OTHER MANDATESPOLICY FRAMEWORK State of Nation of Address (SONA) annually New Growth Path October 2010 (strategy)National Infrastructure Plan February 2012 (jobs driver)National Development Plan November 2012 (policy)Industrial Policy Action Plan 2 April 2013 (jobs driver)Outcome 4, 5, 6, 7 delivery agreementsOutcome 4: Decent employment through inclusive economic growthOutcome 5: Skilled and capable workforce to support inclusive growthOutcome 6: Efficient, competitive and responsive infrastructure Outcome 7: Vibrant, equitable, sustainable rural communities Framework for South Africa’s response to the international economic crisis

POLICY FRAMEWORK State of Nation of Address (SONA) annually New Growth Path October 2010 (strategy)National Infrastructure Plan February 2012 (jobs driver)National Development Plan November 2012 (policy)Industrial Policy Action Plan 2 April 2013 (jobs driver)Outcome 4, 5, 6, 7 delivery agreementsOutcome 4: Decent employment through inclusive economic growthOutcome 5: Skilled and capable workforce to support inclusive growthOutcome 6: Efficient, competitive and responsive infrastructure Outcome 7: Vibrant, equitable, sustainable rural communities Framework for South Africa’s response to the international economic crisis

ACCORDS THE DEPARTMENT FACILITATED AND MONITORS: Basic Education Accord National Skills Accord Local Procurement Accord Green Economy October 2012 Social Accord Youth Employment Accord

ACCORDS THE DEPARTMENT FACILITATED AND MONITORS: Basic Education Accord National Skills Accord Local Procurement Accord Green Economy October 2012 Social Accord Youth Employment Accord

PRESIDENTIAL INFRASTRUCTURE CO-ORDINATING COMMISSION Minister of Economic Development as head of the PICC Secretariat: EDD co-ordinates, integrates and provides secretariat services to the PICC

PRESIDENTIAL INFRASTRUCTURE CO-ORDINATING COMMISSION Minister of Economic Development as head of the PICC Secretariat: EDD co-ordinates, integrates and provides secretariat services to the PICC

LEGISLATIVE FRAMEWORKExisting acts –• Industrial Development Corporation Act, 1940• The Competition Act, 1998• Competition Amendment Act S16 (2008) s16

promulgated 2013• International Trade Administration Act, 2002

LEGISLATIVE FRAMEWORKExisting acts –• Industrial Development Corporation Act, 1940• The Competition Act, 1998• Competition Amendment Act S16 (2008) s16

promulgated 2013• International Trade Administration Act, 2002

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ECONOMY HIGHLIGHTSAnnual employment grew by 199 000 new jobs

Total employment 13,62 million

Jobs held by women 5,96 million

Jobs held by youth 5,77 million

GDP annual growth R240 billion

Size of GDP R3,2 trillion

Infrastructure spending (estimate) R204 billion

Investment grew by R50 billion (year on year)

Factory output grew by R14 billion (year on year)

Agricultural production grew by R7,6 billion (year on year)

Agricultural jobs grew by 83 000 jobs

Employment growth since adoption of NGP 647 000 jobs

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EDD AND AGENCY HIGHLIGHTSIDC funding approvals R13,1 billionIDC funding approvals for BBBEE companies R4,4 billionIDC funding disbursements R15,9 billion – up by 87%Jobs created /saved through IDC funding 22 872 jobsReduction in IDC project approval times (non-complex) 37%sefa facilitated funding approvals R432 millionPenalties imposed by the competition authorities R731 millionCompetition penalties grew by 33%Mergers where employment conditions were imposed 10 mergersAccords concluded 2EDD staff numbers increased by 21%EDD budget spent (incl. transfers) 96,7%

Jobs on PICC projects 180 000PICC monitored infrastructure projects (value) R807 billionITAC tariff increases 10

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NATIONAL INFRASTRUCTURE PLAN HIGHLIGHTS National Infrastructure Plan adopted in February 2012, providing guidelines for integrated

infrastructure provision to transform economic landscape, create jobs directly and indirectly, strengthen service delivery and advance regional integration

Promotes productive investment through local procurement, improved logistics, water and electricity for both emerging and established enterprises

Aims to create economic opportunities in underdeveloped areas through improved roads, rail, ports and broadband as well as water and energy

In financial year, estimated (unaudited) spending on infrastructure across the state was more than R200 billion

This administration is expected spend about R1 trillion , doubling the achievement of the previous administration & 2.3 times higher in any five year period in more than 40 years

Construction of infrastructure monitored by the PICC sustained about 180 000 direct jobs Eighteen strategic integrated projects (SIPs) developed to integrate more than 150 individual

infrastructure project clusters In April 2012, EDD Annual Conference provided a platform for launching the National

Infrastructure Plan The SIPS cover social and economic infrastructure across all nine provinces, with an emphasis on

poorer regions. Over the past financial year, 16 SIPs were formally launched In October 2012, EDD facilitated the National Infrastructure Investment Conference of the PICC In February 2013, Infrastructure Development Bill was published for comment, and is currently

under review for processing through Cabinet

IDC approved funding to the value of R13,1b, while disbursements amounted to R15,9b – an increase of 87% - enhancing industrialisation, local manufacturing, job saving or creating

Improved alignment of state efforts to support small businesses was realised in the first year of sefa’s operation, doubling the value of approved funding from its predecessors (Khula and samaf) in 2011/12

According to sefa records, 47 000 SMME’s were assisted and maintaining 53 700 jobs

Competition authorities launched an comprehensive investigation into collusive behaviour in key sectors – construction, infrastructure, telecommunications – leading to penalties worth R1,4b against colluders in the construction and infrastructure sector and R650m in the telecommunications (part of which was finalised in after the end of the financial year)

Competition Appeals Court judgement in Walmart-Massmart settlement raised public profile and interest in role of jobs and local industrial capacity in mergers and acquisitions. The settlement led to establishment of R240m fund to support local suppliers.

HIGHLIGHTS OF ENTITIES PERFORMANCE

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Pioneer competition settlement led to R250m worth of penalties earmarked for bringing new entrants into agri-processing; thus creating jobs and expanding production.

ITAC conducted 55 tariff investigations, aiding domestic competitiveness in goods such as set-top boxes, windscreens, taps, television antennas , frozen chickens.

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STRATEGIC SUPPORT FOR INDUSTRIAL DEVELOPMENT

IDC approved funding of R13,1 billion and disbursed funding of about R16 billion, with disbursements almost 90% higher than the previous year

Approvals are estimated to support the creation of 18 900 new jobs and saved 4000 IDC co-funding a number of strategic industries across the provinces Northern Cape: construction of the world’s largest manganese sinter plant to produce 2,4 million

tons a year and create an estimated 800 jobs in the sinter plant and manganese mine Eastern Cape: a number of green economy manufacturing projects, to create over 200 jobs,

including in manufacturing of Solar PV panels at the East London IDZ and towers for wind turbines in the Coega IDZ

Western Cape: expansion of Cape Town Film Studios with a new water-tank facility for production of ocean scenes, creating a further 500 jobs

Mpumalanga: small farmers will supply a new state of art oilseed crushing facility in Standerton KwaZulu-Natal: new factory in Durban for manufacturing plastic moulded components for motor

vehicles, create 450 job Limpopo: upgrading of sawmill near Tzaneen retaining 449 existing jobs• Gauteng: semi-automated material recycling facility able to process over 6 000 tons of waste

per month• Free State, R308 million mining project to re-develop a diamond mine in the Kroonstad area,

creating 159 jobs• North West, R6 million from the Green Energy Efficiency Fund (GEEF) to assist in funding a R11

million co-generation project close to Leeudoringstad.

Provinces 2009 - 2013 2004 – 2008 Percentage change

Eastern Cape 4 883 3 961 23%

Free State 675 243 178%

Gauteng 14 962 8 719 72%

Kwa-Zulu Natal 4 445 2 754 61%

Limpopo 4 668 1 246 275%

Mpumalanga 1 845 1 132 63%

North West 4 744 2 675 77%

Northern Cape 10 368 645 1 507%

Western Cape 4 445 1 721 158%

Outside South Africa 4 427 2 672 66%

Value of IDC funding approvals by province (R’ million)

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For the period beginning on 1 April 2009 and ending of 31 March 2013, the IDC’s loans are expected to create and save 151 907 jobs on an approval of R55.5 billion, this works out to an average cost of R362 064 per job created. In the preceding period between 2004 and 2008, the IDC created 117 997 jobs on an approval of R25.8 billion, on an average cost of R218 650 per job created. Increased focus on the chemical, green and ICT sector which are capital intensive is likely to have increased the cost of jobs created.

For the period beginning on 1 April 2009 and ending of 31 March 2013, the IDC’s loans are expected to create and save 151 907 jobs on an approval of R55.5 billion, this works out to an average cost of R362 064 per job created. In the preceding period between 2004 and 2008, the IDC created 117 997 jobs on an approval of R25.8 billion, on an average cost of R218 650 per job created. Increased focus on the chemical, green and ICT sector which are capital intensive is likely to have increased the cost of jobs created.

Provincial Job numbers 2009 - 2013

Eastern Cape 10 415

Free State 2 106

Gauteng 47 042

Kwa-Zulu Natal 20 608

Limpopo 9 224

Mpumalanga 15 662

North West 20 504

Northern Cape 13 671

Western Cape 20 875

Value of IDC funding approvals by province (R’ million) Cont...

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Province 2012/13 Approvals 2012/13 Disbursements

Eastern Cape 9 355 472 6 528 228

Free State 32 193 413 15 487 221

Gauteng 207 376 294 51 641 118

Kwa-Zulu Natal 7 132 602 17 936 331

Limpopo 48 509 169 5 220 992

Mpumalanga 13 472 265 22 599 499

North West 15 934 628 7 762 439

Northern Cape 37 415 066 755 879

Western Cape 68 164 765 72 041 655

Total 439 553 675 199 973 363

Provincial Spread of sefa

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BUILDING CAPACITY: ECONOMY/ECONOMIC GOVERNANCE

EDD has developed a virtual Economic Development Institute capacity, which in its first phase refers to major research projects undertaken in collaboration with experts from academia and outside of government, as well as supporting high-level roundtables and workshops

Roundtable on industrialisation in Africa in conjunction with the International Economics Association (organised with the Nobel Prize-winning economist Professor Joseph Stiglitz and the World Bank past-Chief Economist Justin Lin)

Research project on financialisation in South Africa, in collaboration with the UN Department of Economic and Social Affairs

Project to identify the potential for regional value chains, in with research entity at University of the Witwatersrand

PICC initiated work to quantify the skills required to roll out the 20 year Infrastructure Plan - critical and scarce skills categories and develop action plans to address gaps

EDD with Graduate School of Public and Development Management (PDM) at Wits University implemented training course for 91 municipal officials

EDD partnered with South African Institute of Chartered Accountants to train graduates to assist smaller enterprises with accounting and financial services

Partnership agreement with the University of Johannesburg to develop technical capacity of regulatory bodies

EDD undertook capacity building programmes with social partners and provincial stakeholders, including workshops on measuring the impact of state activities on job creation, supply-chain issues to support small business, and knowledge of policy frameworks to allow provincial and local plans to be aligned with the national plans

EDD worked with a task team of the Human Resources Development Council of South Africa to align skills planning with NGP

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REPORT BY AUDITOR –GENERAL The department obtained an unqualified audit report with one emphasis of

matter relating to the restatement of corresponding figures Commitments on addressing Audit Issues• A consolidated ‘heat map’ reflecting all audit issues that have been identified has

been compiled with responsible persons and timeframes to rectify these• Biweekly meetings to track progress on implementation of mitigation plans• Internal Audit to review evidence for adequacy as per the audit coverage plan• Progress reports to be presented to the Audit Committee, Executive Authority,

DG and EXCO

Performance Overview for the 2012/13

Overall Performance Level Number of Targets

Total Number of Targets 42

Targets Exceeded 19

Targets met 22

Targets under-achieved 1

Overall Performance Per Programme

Programme 1

Total number of Targets 4

Targets exceeded 1

Targets met 2

Targets underachieved 1

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Overall Performance Per Programme Continued

Programme 2 Number of Targets

Total Number of Targets 18

Targets exceeded 6

Targets met 12

Targets under-achieved 0

Programme 3 Number of Targets

Total number of Targets 10

Targets exceeded 8

Targets met 2

Targets under-achieved 0

Programme 4 Number of Targets

Total number of Targets 10

Targets exceeded 4

Targets met 6

Targets under-achieved 0

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52.4% of targets met

2.3% of targets under achieved

Percentage of targets achieved

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. Purpose: to coordinate and render effective, efficient, strategic support and administrative services to the Minister, Deputy Minister, Director General, the Department itself, and its agencies

MINISTERIAL ACTIVITIES

Meetings of Cabinet, Cabinet Committees, Presidentially-coordinated Councils and structures (PICC, HRD Council, Anti-Poverty IMC, BBBEE Council), Inter-Ministerial Committees, Ministerial Cluster meetings and MinMEC meetings

PICC Secretariat and support of work of the PICC Manco Presentations on infrastructure, and NGP to two Cabinet Makgotla (September

2012 and February 2013) Engagement with investors and social partners at home and abroad, and with a

range of international institutions and business delegations - including the World Economic Forum in Davos in January 2013, BRICS Summits in eThekwini, South Africa (March 2013)

Community engagements and meetings with workers including at trade union congresses (Cosatu, Numsa, Nehawu, Saccawu and Sactwu) and with union leaders (Fedusa and Nactu) as well as with youth structures, women’s organisations, civic structures and other community representatives

Programme 1: Administration

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Programme 1 … continued

Community and workplace meetings or visits were undertaken, including in Mqwangqweni Village, Mitchells Plain, Lephalale, Rosslyn, Elsies River, Midrand, Doringbaai, Vredendal, Kyalami, Claremont and Kuils River

Visits to vulnerable communities and municipalities, including KwaDolwane, Nongoma, Alexandra, Diepsloot and Saldanha Bay. The areas visited included poor , rural municipalities, economically depressed inner city communities and areas lying around farms.

MINISTERIAL ACTIVITIES

OFFICE OF DIRECTOR GENERAL

Ensured Department functioned effectively in the Economic Sectorsand Employment Cluster, and as a coordinating Department in Outcome 4, setting of the 4 Technical MinMEC and MinMEC meetings, in coordination with the dti as the co-chairs

Regular meetings with the corporate services of the entities were held by the DG and senior managers

Dashboard was established to enhance accountability of entities. Several management meetings held to achieve improvement in service delivery

and achievement of APP targets

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Purpose: to strengthen the economic development policy capacity of government; review, develop and propose the alignment of economic policies; and develop policies aimed at broadening participation in the economy and creating decent work opportunities Quarterly reviews of progress on Outcome 4 An annual in-depth assessment of progress on the NGP and Jobs Drivers - an

extensive and detailed submission to Cabinet, leading to a number of practical action plans to strengthen implementation

Biannual surveys conducted of departments on their employment impact Capacity-building sessions with departments and provinces on how to evaluate

their overall effect on employment; Worked with the Department of Performance Monitoring and Evaluation and the

Cabinet Office to ensure that regulatory impact assessments take employment and inclusion systematically into account

EDD worked with the Department of Higher Education and Training (DHET), the HRD Council of South Africa on alignment of skills planning systems with the NGP and National Infrastructure Plan

Programme 2: Economic Policy Development

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Programme 2 continued

EDD developed a ‘virtual institute research capacity’ to undertake, sponsor or coordinate work on various matters by drawing local and global experts together - including financialisation of SA economy and African regional development and industrialisation

EDD provided research to support engagements around iron and steel pricing, electricity, the green economy, access to broadband, skills development and the provision and pricing of economic infrastructure, amongst others.

Support for the Youth Employment Accord Various research on - improving the environment for SMMEs, proposals for

strengthening the incentives for employment creation and local procurement in Codes of Good Practice for broad-based BEE, women in the economy

Number of policy platforms included issues around - gender, African industrialisation, impact of BBBEE and financialisation.

EDD Conference which was held on 19-20 April 2012, with the theme of infrastructure and development.

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Programme 3: Economic Planning and Coordination

Technical support for implementation of the National Infrastructure Plan through its work with the Secretariat and Technical Task Team of the PICC :

• - liaison with external public agencies to ensure the development of business plans for seven SIPs and assisted in the development of the Master Water Plan (SIP 18) together with DWA, TCTA and the regional water boards

• - Launch of inter-governmental forums for several SIPs.• Management of drafting of Infrastructure Development Bill, (gazetted for

comments on the 8 February 2001)• Worked with DRDLR and the CSIR to develop an improved understanding of

economic potential of the rural space economy • To add value to the development of SIP 6, initiated a process to identify

functional economic regions as the basis for establishing a more spatially integrated economy

Purpose : to align economic planning across the state, including support to PICC ; provide policy guidelines and oversight for the development finance institutions and economic regulatory bodies under the EDD; and drive catalytic projects

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Programme 3: CONTINUED

Technical support for implementation of the National Infrastructure Plan through its work with the Secretariat and Technical Task Team of the PICC :

• Compile d quarterly construction updates for Cabinet with an analysis of expenditure trends, construction progress, number of jobs created and local procurement percentages against targets, as well as identification of key constraints and blockages

• Facilitated signing of MOU between Transnet, Eskom and the IDC to cooperate on accelerated SIP implementation, as well as an MOU with social partners on infrastructure, and with the Engineering Council of South Africa on capacity support

Oversight, guidance and support for the agencies - IDC, sefa, ITAC and the Competition Commission

Facilitation of major productive investments; and back up for local procurement drive

Establishment of team to ‘unblock’ significant projects that faced regulatory delays or required other kinds of support

Number of catalytic projects facilitated (examples - major soya crushing plant in Mpumalanga and biofuels processors)

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Programme 3 …. continued• EDD worked closely with the dti and National Treasury to increase local

procurement by state, business and public ( partnership with Proudly South Africa , supported procurement by government agencies of locally produced stationery and uniforms,)

• IDC established a localisation project office to identify opportunities for local suppliers across all 18 SIPs in the National infrastructure Plan.

• EDD worked with South African Institute of Chartered Accountants to establish a business hub and training programme to improve practical accounting skills of accounting graduates while improving services for smaller enterprises

• Supporting more integrated spatial development, EDD offered advice on development plans for a number of provincial and local governments, working with stakeholders in KwaZulu-Natal to establish an integrated strategy for the Umhlatuze-Llembe corridor

• Supporting the green economy, the EDD facilitated investments in renewable energy and biofuels, while supporting the rollout of solar water

• Support was provided for multilateral and bilateral economic engagements, including -support for BRICS Summit, bilateral meetings with Peoples Republic of China, work on North-South Corridor for African development

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Programme 4: Economic Development and Social Dialogue

Two new national Accords were completed In October 2012, an Accord, with business and labour to address workplace conflict in the

platinum belt as well as the global downturn, was finalised In quarter one of 2013, Minister supported engagements with the NEDLAC constituencies and

youth organisations, leading to approval of core elements of a Youth Accord by Cabinet in February 2013 (Youth Employment Accord was signed on 18 April 2013)

EDD monitored implementation of the national accords finalised in previous budget year on Green Economy, Skills, Basic Education and Local Procurement, in order to identify actions required to improve outcomes

Publication produced collating key outcomes of the Accords Sector and workplace dialogue and interventions (included work on poultry industry, action on

complaints about illegal imports at trade fairs, procurement in footwear industry and research into iron and steel industry) lead to gazetting of new regulations on scrap metal exports

Establishment of knowledge networks improved government access to expertise - on small business, spatial planning, space economy , regional and local economic development

Range of capacity building workshops were held at district level across three provinces, and value chain competitiveness workshops in four province

Purpose: to promote social dialogue; implement strategic frameworks; build capacity among social partners; and promote productivity, entrepreneurship and innovation in the workplace

Financial Performance per Programme

Programmes

2012/13 2011/12Annual Budget Expenses Variance Annual

Budget Expenses Variance

R'000 R'000 R'000 % R'000 R'000 R'000 %

Administration 62 931 55 394 7 537 88.0% 57 646 50 822 6 824 88.2%

Economic Policy Development 19 197 11 575 7 622 60.3%

16 160 12 498 3 662 77.3%

Economic Planning and Coordination 601 824 597 523 4 301 99.3%

503 277 501 013 2 264 99.6%

Economic Development and Dialogue 12 565 8 981 3 584 71.5%

21 276 13 269 8 007 62.4%

Total 696 518 673 473 23 045 96.7%

598 359 577 602 20 757 96.5%

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Year on Year Performance per Programme

Programmes 2012/13 2011/12 Variance

Administration 88.0% 88.2% -0.2%

Economic Policy Development 60.3% 77.3% -17.0%

Economic Planning and Coordination 99.3% 99.6% -0.3%

Economic Development and Dialogue 71.5% 62.4% 9.1%

Total 96.7% 96.5% 0.2%

Total (R’000) 673 473 577 602 95 871

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Financial Performance per Economic Classification

Programmes

2012/13 2011/12Annual Budget Expenses Variance Annual

Budget Expenses Variance

R'000 R'000 R'000 % R'000 R'000 R'000 %

Compensation 70 399 62 074 8 325 88.2% 56 172 48 347 7 825 86.1%

Goods & services 69 562 58 544 11 018 84.2% 47 694 39 960 7 734 83.8%

Departmental Agencies 249 220 249 220 0 100 % 301 911 301 911 0 100 % Universities & Technikons 12 280 12 280 0 100% 5 510

5 510 0 100%

Public Corporations 289 328 289 327 1 100% 180 443 180 444 -1 100 %

Households 223 222 1 99.6%

134

131 3 97.8%

Machinery & equipment 5 506 1 806 3 700 32.8% 6 495

1 299 5 196 20%

Totals 696 518 673 473 23 045 96.7% 598 359 577 602 20 757 96.5%

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Financial Performance per Economic Classification

Programmes 2012/13 2011/12 Variance

Compensation of Employees 88.2% 86.1% 2.1%

Goods & services 84.2% 83.8% 0.4%

Departmental Agencies 100 % 100 % 0%

Universities & Technikons 100 % 100% 0%

Public Corporations 100% 100% 0%

Households 99.6% 97.8% 1.8%

Machinery & equipment 32.8% 20.0% 12.8%

Totals 96.7% 96.5% 0.2%

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Reasons for Under Expenditure

For the year under review the department had spent 96,7% of the allocated budget. The reasons for the under expenditure largely relate to:-Compensation of Employees (R8m): due to vacancies during the year and at financial year endGoods & Services (R11m): this largely relates to R20m that was allocated during the Adjustments Estimate process for capacity building for the Economic Regulatory BodiesMachinery & Equipment (R3.7m): The vacancies and the delay in the procurement of a video conferencing largely contributed to this under expenditure

Revenue Performance

Description

2012/13 2011/12

R'000 R’000

Sales of goods and services other than capital assets 21 16

Fines, penalties and forfeits 619 994 538 285

Interest, dividends and rent on land 50 106 50 263

Transactions in financial assets and liabilities 1 191 4 340

Total 671 312 592 904

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Revenue collection increased from R593m to R671m and this was largely due to the increase in fines and penalties imposed by the Competition Commission.

Transfers to Agencies

Description

2012/13 2011/12

R'000 R’000

Industrial Development Corporation 109 000 34 000

Industrial Development Corporation: sefa 171 330 222 958

Competition Commission 157 211 126 595

Competition Tribunal 15 798 15 175

International Trade Administration 74 403 69 604

Total 527 742 468 332

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Transfers to Entities and Agencies

Programmes Purpose for Transfer

2012/13 2011/12

R'000 R’000

CSIR Research on Spatial Development Perspective- Functional Regions

1 808

0

SAICA Continuation and expansion of the Business hub and Training Programme 8 996

6 023

University of Witwatersrand Continuation of the Capacity Building Programme for Municipalities

2 280

5 510

University of Johannesburg Establishment of Economic Regulatory Course to train ERBs

10 000

0

Total

23 084

11 533

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Human Resources

At inception of EDD in 2009, 265 posts were approved – for filling on incremental basis over MTEF

Human Resource Planning Strategy to fill 166 funded posts over the MTSF period was developed

Annual targets for funded posts in 2011/12 was 129 and 142 in 2012/13

By 31 March 2013, 139 funded posts were filled Funded posts for remaining MTEF period was expanded to 166 posts EDD recruitment strategy was prioritised to enable the delivery of

targets forecast in Strategic Plan and APP In 2012/13, recruitment of appropriate staff decreased vacancy rate

to 2.1% by year end Difficulties were encountered around recruitment of staff with

specialised and critical skills, as well as women in senior management positions

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Human Resources Cont...

EDD achieved 45% of women employed in senior management posts

EDD achieved the national target of 2% for people with disabilities

Core staff complement ranges from 20 to 35 years An Employee Assistance Programme was implemented to

render a 24hr service to staff and their families, as well as a Health Promotion Programme to provide HIV/ AIDS counselling and testing in partnership with GEMS

Performance Management and Development system was implemented in 2012/13

In 2012/13, 14 governance policies were developed internally and approved

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Human Resources Action Plan 2013/14

Rationalisation and alignment of structure Head hunt strategic posts, specialists & senior levels Prioritise recruitment and selection processes – e.g. CD:

CM, PLO, D: HR, D: Strategic Management, D: Communications, DD: Planning and Reporting, DD: Security

Monthly Human Resource reports – constant monitoring and reporting to improve performance data

Staff complement as at 31 March 2013

Number of posts

Number of posts filled

Vacancy Rate

Additional to establishment

Administration 62 73 -17.7% 3

Economic Policy Development 26 14 46.2% 0Economic Planning and Coordination 38 39 -2.6% 0Economic Development and Dialogue 16 11 31.3% 0

TOTAL 142 136 4.2 3

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Staff complement as at 31 March 2013

Occupational Bands

Male Female

TotalAfrican Coloured Indian White African Coloured Indian White

Levels 13-16 17 2 4 5 10 2 1 7 48

Levels 9-12 11 0 0 1 20 2 1 1 36

Levels 1-8 17 1 0 0 33 3 0 1 55

Total 45 3 4 6 63 7 2 9 139

% 32% 2% 3% 4% 45% 5% 2% 7% 100%

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Group Number Percentage

African 108 78%

Coloured 10 7%

Indian 6 4%

White 15 11%

SIYABONGA

40DRAFT