Date : 20 September 2013 Director-General Mr Lionel October

Presentation to the Portfolio Committee on Presentation to the Portfolio Committee on Trade and Industry – the dti’s 2012/13 Annual Trade and Industry – the dti’s 2012/13 Annual

Report and the Second Quarter Report Report and the Second Quarter Report

Date : 20 September 2013Date : 20 September 2013Director-GeneralDirector-General

Mr Lionel OctoberMr Lionel October

Members of the Delegation Jodi Scholtz – Group COO.

Zodwa Ntuli – DDG: CCRD.

Garth Strachan – Acting DDG: Industrial Development.

Shabeer Khan – CFO.

Tumelo Chipfupa – DDG: Incentive Administration.

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Presentation OutlinePresentation Outline Economic Context Strategic Goals Achievements against planned targets

Industrial Development Trade, Investment & Exports Broadening Participation Regulation Administration & Co-ordination

Targets Partially Achieved Financial Management Adjustment Estimates MTEF Budget Second Quarter Report - highlights Challenges Annexures

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Economic TrendsEconomic TrendsGlobal Economic Developments

The 2012 global economic recovery has been led by emerging economies in Asia, Africa and Latin America.

The emerging economies contributed 6,3% to global growth in 2011 and 5,1% in 2012 compared to 1,6% and 1,3% by the advanced economies over the same period.

The International Monetary Fund (IMF) expected global growth to accelerate modestly from 3,2% in 2012 to 3,5% in 2013. The IMF also projected that emerging economies would grow by a healthy 5,5% in 2013, but did not expect growth to rebound to 2010/11 levels due to the continued weakness of the advanced economies which was dampening demand.

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Economic TrendsEconomic Trends

SA Gross Domestic Product Trends

The economy grew by an annualised rate of 2,1% in the fourth quarter of 2012, almost double the rate of 1,2% recorded in the third quarter.

The main sources of growth included manufacturing; finance, real-estate and business services; general government services; agriculture, forestry and fishing; wholesale, retail and motor trade; catering and accommodation; and the transport, storage and communication industry.

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Figure 1 Quarter-on-quarter growth 2006-2012

Source: South African Reserve Bank

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Economic TrendsEconomic Trends Real output growth increased from 1,2% in the third quarter to

5,0% in the fourth quarter of 2012. This made the manufacturing sector the biggest contributor to

the 2,1% GDP growth in the fourth quarter. Manufacturing production grew by 5,6% between 2010 and

2012 (underpinned by the following sectors: petroleum, chemical products, rubber and plastics, which grew by 5,2%; motor vehicles, parts and accessories and other transport by 2,3%; and food and beverages by 2,1%).

Overall, the sluggish economic recovery necessitated additional proactive interventions by Government.

Key interventions introduced to enhance manufacturing competitiveness included the launch of the MCEP and Designations for local procurement by Government.

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Economic TrendsEconomic Trends Growth was supported by an increase of 126 000 jobs in

community and social services, 65 000 in finance and other business services, and 55 000 jobs in agriculture. However, these gains were offset by the shedding of jobs in other sectors, led by the trade sector, which shed 139 000 jobs.

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Source: QLFS quarter 4:2012

Total Employment 2008 - 2012

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Real gross fixed capital formation by general government accelerated from 7,7% in the third quarter of 2011 to 23,4% in the third quarter of 2012.

South Africa’s total merchandise exports (excluding gold) increased from R150.9 billion in the first quarter of 2012 to R170.4 billion in the fourth quarter of 2012.

Exports were boosted by growth in manufacturing of precious metals, base metals, steel, coal and motor vehicles.

This led to an increase in imports of transport equipment, chemicals, plastics and rubber and vehicle components in the first nine months of the year.

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Economic TrendsEconomic Trends The ‘Great Recession’ and the Eurozone crisis demanded that

the dti scale-up its efforts to diversify South Africa’s trade and investment markets, with priority focus falling on the fast-growing, emerging markets in Africa, South-East Asia, the Middle East and South America.

Export volumes to emerging economies in Asia and Africa have been growing more than volumes to the Americas.

Trade with BRICS is about 10% of total South African exports.

The top manufactured exports to BRICS were basic chemicals, basic iron and steel, basic non-ferrous metal and motor vehicles, parts and accessories.

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Total quarterly exports and imports 2006-2012

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Source: the dti

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The structure of the dti’s work The structure of the dti’s work

the dti’s work is organised in terms of the following clusters:

Industrial development; Trade, Investment and Exports; Broadening participation; Regulation, and Administration and co-ordination

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Achievements against Achievements against planned targetsplanned targets

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Chinese automotive company, First Automobile Works (FAW) has commenced with the construction of a truck plant at the Coega IDZ in the Eastern Cape Province.

Beijing Automotive Works (BAW) invested R196 million in a taxi assembly plant for the South African/sub-Saharan markets.

The Minister approved the Electric Vehicle (EV) Roadmap in early 2013.

Toyota SA opened its new Ses'fikile taxi assembly line in Durban and a new R363 million parts distribution warehouse (Africa's largest).

Industrial DevelopmentIndustrial Development

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The development of the Clothing and Textiles Competitiveness Programme (CTCP) marked an important incentive development phase for the dti through the introduction of a production and competitiveness enhancement incentive which encourages production and job creation activities more directly.

Approximately 12 205 new, decent permanent jobs have been created in the sector as a direct result of the CTCP.

Conditions in the footwear sector also improved and, after years of

decline, the sector now projects an increase in the quantity of shoes produced, from 52 million to 100 million in the next three years.


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Facilitated the establishment and launch of a Small-Scale Milling plant by Kuvusa Pty (Ltd) in Durban, intended to reduce the price of maize meal by up to 20% for South African households.

Energy-Efficiency Training Centre was established at the National Cleaner Production Centre with the first 600 students accepted for training, while a Radiation Training Facility has been established at the South African Nuclear Energy Corporation.

Approval of the Aquaculture Development and Enhancement Programme (ADEP) incentive to increase investments in the sector, enhance competitiveness and grow employment.


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Manufacturing Competitiveness Enhancement Programme launched in May 2012; 189 enterprises approved for grants valued at R999,2 m and 33 551 jobs expected to be retained.

Supported 12I projects with the project investment value of R10.2 bn and 1 357 projected jobs.

Four (4) sector/subsector designation templates completed and approved. (furniture, pharmaceuticals, solar water heaters and power and telecoms cable)

Support Programme for Industrial Innovation (SPII) approved

for 53 projects to the total value of support of R203.5m.

1506 students and 1 135 researchers approved for Technology and Human Resources for Industry Programme (THRIP) funding.


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Approved 70 Film productions.

The successful and growing impact of industry demand resulted in the Monyetla Work-Readiness Programme training 3 819 learners as Business Process Services (BPS) agents (3 233 agents and 586 team leaders trained) and a total of 2 120 competent learners being placed in various sectors of employment.

Investments worth R1.3 billion were secured from the BPS Incentive Programme and 4 500 jobs are expected to be created over the next three years.

Due to the dti’s support of the BPS sector, SA was named Off-Shoring Destination of the Year in the 2012 United Kingdom (UK) National Outsourcing Association Awards.


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Overview of Incentive SchemesOverview of Incentive SchemesDescription

Actual

Number of firms/projects supported

Potential jobs supported

Industrial Financing

EIP- MIP 548 12 269

EIP-TSP 122 1 357

AIS 28 767

BPS 12 3 936

Film & Television 70 -

12i 12 1 357

CIP 6 -

MCEP 189 -

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Overview of Incentive SchemesOverview of Incentive SchemesDescription

Actual

Number of firms/projects supported

Broadening Participation

CIS 314

BBSDP 1 212

SPII 53

Trade, Investment & Exports

EMIA 1 082

Trade, Investment & ExportsTrade, Investment & ExportsInvestment and Export Promotion Exports of R53.5 billion were achieved.

Five Investment and Trade Initiatives (ITIs) were organised in Brazil, India, Russia and Zimbabwe and the Democratic Republic of Congo.

Financially assisted 259 emerging exporters with access to export markets.

R3.88 billion in potential investment projects was facilitated, in which Europe accounted for 19%, Africa and Middle East contributed 13%, Asia contributed 61%, Latin America 2% and North American Free Trade (NAFTA) 5%.

Financial assistance provided to 1082 enterprises participating in Exporting, Marketing and Investment Assistance (EMIA) scheme.

Organised the South African Expos in Beijing and Shanghai, China, in November 2012 in which 61 South African companies participated. Exports generated 6 months after event amounted to R35 million.

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Trade, Investment & ExportsTrade, Investment & Exports

Multilateral: The Third BRICS Trade Ministers’ Meeting was successfully held in

Durban resulting in the adoption of the BRICS Trade and Investment Co-operation Framework.

Participated in Third Contact Group on Economic and Trade Issues (CGETI) meeting in New Delhi, India to refine the Terms of Reference (TOR) and action plans for BRICS work programme on economic and trade issues.

Significant advances were made in Economic Partnership Agreement (EPA) negotiations on tariff exchange, outstanding legal provisions and cooperation on new trade-related issues with European Union (EU).

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Trade, Investment & ExportsTrade, Investment & ExportsAfricaSouth African Development Community (SADC) Summit approved the

approach to strengthening regional economic integration through the Tripartite Initiative, drawing together SADC, Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC).

The Summit also approved the launch of negotiations in SADC on trade in services.

Led the process of co-ordinating a unified Southern African Customs Union (SACU) position during participation in the Tripartite Free Trade Area

(T-FTA) negotiations.

Contributed to the complementary work on infrastructure development under the T-FTA by leading the negotiations on the conclusion of the Memorandum of Understanding (MoU) for the North-South Corridor.

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Trade, Investment & ExportsTrade, Investment & Exports

Bilateral:

17 Bilateral engagements concluded, notably with China, Brazil, Cuba, Indonesia and Japan.

11 Technical business missions conducted (Angola, Democratic Republic of Congo, Zambia, Ethiopia, Zimbabwe, Cameroon, Gabon, Kenya, Sudan, Mauritius and Egypt).

43 Trade missions were organised.

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Broadening ParticipationBroadening ParticipationEnterprise Development

Seda Technology Programme (stp) – 8 new incubators were established; 1 514 Small, Medium, Micro Enterprises (SMMEs) supported and 376 new SMMEs approved for assistance.

42 Incubation Centres countrywide supporting SMMEs in various economic sectors such as biotechnology, mining, agro-processing, construction, jewellery, automotives, metals and renewable energy.

Women and Youth Empowerment

The National Strategic Framework on Gender and Women Economic Empowerment was endorsed by ExBo and awaiting presentation to Cabinet.

The Isivande Women’s Fund (IWF) supported 22 projects.

The Youth Enterprise Development Strategy (YEDS) has been drafted and consultations with key stakeholders were at an advanced stage.

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Broadening ParticipationBroadening ParticipationCo-operatives

Workplace Challenge (WPC) extended its scope to 80 co-operatives in rural areas, KwaZulu-Natal Province (68) and Western Cape Province (12).

83 new contracts with new companies participating in the WPC. Eastern Cape (1), Gauteng (9), KwaZulu-Natal (56), North West Province (3), Western Cape (14).

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Legislation and RegulationLegislation and RegulationPolicy and legislative development

Four draft Policy Frameworks developed for approval by Cabinet (Intellectual Property, Licensing of Business, Lotteries, Business Reform Registration and National Credit).

Three Bills developed for approval by Cabinet (Licensing of Business Bill, Lotteries Amendment Bill, Business Reform Registration and National Credit Amendment Bill ).

Special Economic Zones (SEZ) Bill introduced in Parliament.

The Co-operatives Amendment Bill also introduced into Parliament.

The B-BBEE Amendment Bill was approved by Cabinet and consultation process was undertaken.

Legal Metrology Bill approved by Cabinet for public consultations

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AdministrationAdministration

Vacancy rate has been reduced to 8% by 31 March 2013.

The percentage of persons with disability status is 2.8% against an annual target of 2.4%.

The percentage of women in Senior Management Service (SMS) is at 43%.

All eligible creditors’ payments have been processed within 30 days.

Policy Framework on Governance and Oversight approved by Minister to strengthen the relations between the dti and its entities.

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Targets partially Targets partially achieved during achieved during

2012/13 FY2012/13 FY

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Summary of Achievement of Targets for Summary of Achievement of Targets for 2012/13 Financial Year2012/13 Financial Year

Strategic Goal (SG) Total APP Target per Strategic Goal

Targets Achieved Partially Achieved

SG 1 20 13 7

SG 2 5 5 0

SG 3 20 9 11

SG 4 2 1 1

SG 5 9 8 1

TOTALTOTAL 5656 36 36 2020

The calculation by the AG focuses on 100% of targets being achieved without taking into account substantive work already

concluded. Good progress has been made on all partially achieved targets.

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Financial Financial managementmanagement

Five Year Comparison of budget Five Year Comparison of budget vs Expenditure – R’000vs Expenditure – R’000

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2008/09 2009/10 2010/11 2011/12 2012/13

Budget 5 126 893 6 402 076 6 194 208 6 876 513 8 351 086

Expenditure 5 057 064 6 237 955 5 796 741 6 800 980 8 286 428

Unspent 69 829 164 121 397 467 75 533 64 658

% Unspent 1.36% 2.56% 6.42% 1.10% 0.77%

0

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

9 000 000

Budget

Expenditure

Unspent

% Unspent

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Overview of the expenditure for the 2012/13The expenditure based on the final appropriation of R8,351 billion is 99.23% or R8,286 billion, implying an under-spending of R65 million (0.77%)

Overview of expenditure per programme:

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Programme Final

AppropriationActual Expenditure Variance in R’000 Variance as a % of

Final Appropriation

R’000 R’000 R’000 %

Administration 710,393 705,425 4,968 0.7%

International Trade and Economic Development

133,116 132,705 411 0.3%

Broadening Participation 940,319 929,694 10,625 1.1%

Industrial Development 1,508,225 1,505,090 3,135 0.2%

Consumer and Corporate Regulations 230,841 223,568 7,273 3.2%

Industrial Development: Incentive Administration

4,551,356 4,514,551 36,805 0.8%

Trade and Investment South Africa 276,836 275,395 1,441 0.5%

Total 8,351,086 8,286,428 64,658 0.8%

Overview of the expenditure for the 2012/13

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Economic Classification Final

AppropriationActual

ExpenditureVariance in R’000 Variance as a %

of Final Appropriation

R’000 R’000 R’000 %

Current payments

Compensation of Employees 675,319 671,550 3,769 0.6%

Goods and Services 600,656 592,838 7,818 1.3%

Interest and rent on land 492 487 5 1.0%

Transfer and subsidies Departmental agencies and accounts 1,128,695 1,127,995 700 0.1%

Universities and technikons 32,604 32,600 4 0.1%

Foreign government and international organisations

38,040 37,344 696 0.5%

Public corporations and private enterprises

5,700,401 5,671,754 28,647 1.8%

Non-profit institutions 23,900 23,900 - 0.0%

Households 5,740 5,334 406 7.1%

Payment for capital assets

Machinery and equipment 40,811 36,632 4,179 10.2%

Software and other intangible assets 21,975 3,863 18,112 82.4%

Payment for financial assets 82,453 82,131 322 0.4%

Total 8,351,086 8,286,428 64,658 0.8%

Overview of expenditure per economic classification:

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2012/13 audit outcome 2012/13 audit outcome and interventions to and interventions to

address the AG’s findingsaddress the AG’s findings

Audit outcomesFor the 2012/13 financial year, the department has received a financially unqualified audit opinion from the Auditor-General (AG). Both the areas of non-compliance reported by the AG relate to supply chain management.

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Fincial statements

12/13

11/12

10/11

Audit outcomes

LegendNo findings

Findings

Findings on predetermined objectives

Findings on areas of non-compliance

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Finding Management interventions• Certain goods and services with a

transaction value below R500k were procured without obtaining the required price quotations.

• The accounting officer did not take steps to prevent irregular expenditure.

These relate to transactions where three quotations could not be obtained and the delegations of authority did not specifically provide for these deviations. The delegations have since been amended to include the deviations. The following additional measures will be implemented:

•Clear communication via financial circulars on the procurement requirements of transactions less than R500,000 will be sent to all staff.•Targeted training interventions with procurement staff and divisional advisors on the department’s procurement policies and procedures and SCM legislation.•Irregular expenditure transactions have been analysed per Division and letters will be issued to the relevant managers to take appropriate action.

Interventions to address AG’s Audit FindingsInterventions to address AG’s Audit Findings

Key ChallengesKey Challenges

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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Adjusted estimates – Adjusted estimates – 2013/14 FY2013/14 FY

(Refer to Annexure B)(Refer to Annexure B)

Adjusted estimates 2013/14 FYAdjusted estimates 2013/14 FY

The department is currently busy with the adjusted estimates process. All inputs need to be submitted to National Treasury by the 10 October 2013.

The database and AENE chapter was submitted to National Treasury on the 17 September 2013. This includes the reprioritisation between the different programmes and economic classifications.

All the shifting/virement of funds between transfer payments is subject to National Treasury’s approval.

There were no additional funds requested for unforeseeable and unavoidable expenditure.

The slide that follows includes a high level overview of the adjustments made.

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Adjusted Estimates 2013/14 FY

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Programme Original Adjustments Revised Budget

R’000 R’000 R’000

Administration

690,079 35,950 726,029


138,638

3,000 141,638


968,307

41,900 1,010,207

Industrial Development

1 606,524

(9,850) 1,596,674

Consumer and Corporate Regulations

256,157

- 256,157


5,543,134

(50,000) 5,493,134

Trade and Investment South Africa

369,741

(28,100) 341,641

Total

9,572,580 (7,100) 9,565,480

Overview of the adjustments per programme:

4343

MTEF - 2014/15 FYMTEF - 2014/15 FY

(Refer to Annexure (Refer to Annexure C)C)

MTEF 2014/15 FYMTEF 2014/15 FY

The department submitted its MTEF inputs to National Treasury on the 17 July 2013.

There was a request for additional funds over the MTEF period for the department and its agencies'.

There was also a request for new priorities i.e. funding for the establishment of the Co-operative Tribunal, Co-Operative Development Agency and Support to the Co-Operative Apex Organisation.

The slide that follows includes a high level overview of the funds requested and the motivation for such requests is included in the annexures.

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Budget allocations for 2014/15 FY

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Programme Baseline Additional funds

requestedRevised based line

R’000 R’000 R’000

Administration 705,249 80,628 785,877


148,324 - 148,324

Broadening Participation 1,007,387 1,100,003 2,107,390

Industrial Development 1,768,217 - 1,768,217

Consumer and Corporate Regulations 274,383 110,181 384,564


5,642,036 - 5,642,036

Trade and Investment South Africa 412,433 20,000 432,433

Total 9,958,029 1,310,812 11,268,841

Overview of additional funds requested per programme:

4646

Second Quarter Report Second Quarter Report - Key Highlights - Key Highlights

(Refer to Annexure D)(Refer to Annexure D)

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Key AchievementsKey Achievements

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

Launch of the SABS Local Content Verification Office and verification done on the framework for the verification of local production of busses and rail rolling stock and Verification of Johannesburg: Rea Vaya BRT Busses for Phase 1B Route has started.

Part of the 2013-2014 Family Planning tender (all SA-made contraceptives) worth est. R 100 million has been designated. Preliminary data show that 70% of the 2013-2014 anti-TB tender worth R 850 million has been won by SA manufacturers (in the absence of designation).

Instruction Notes for Power and Telecom Cables, and Solar Water Heaters (SWHs) were published by the National Treasury during the period under review.

Launch of the Solar PV Localisation Roadmap in conjunction with the Solar PV Industry Association.Establishment of the Mr Price Footwear and Leather Goods Cluster which will see the low end market being supplied with locally manufactured goods.


4848



The Pan African Quality Infrastructure (PAQI) was launched in Kenya on 30 August 2013. South Africa, through SANAS, NMISA and SABS holds the secretariats for 3 of the 4 PAQI structures, namely AFRAC, AFRIMETS and AFSEC as well as the Chairmanship of AFRAC.

The Workplace Challenge Programme (WCP) -13 new companies participating.

64 projects with the investment value of R2,4 billion have been supported under MIP incentive; 7 projects supported under AIS.

13 projects supported under the Film incentive.

87 projects supported under the MCEP incentive.

20 new projects under SPII approved to the value of R 58.96 million.


Trade, Investment & ExportsTrade, Investment & ExportsSG 2: Build mutually beneficial regional & global relations to advance SA’s trade, industrial policy & economic development objective Facilitated Exports to the value of R1 198 million. Achieved R11.5 billion pipeline of investment in Renewable Energy

projects. Trained 341 companies under the Programme to raise awareness on

Export Processes.

2002 SACU Agreement amended to establish SACU Summit.

SADC Model Bilateral Investment Treaty Template approved by MTF aligned to SA position.

South Africa registered its position in support of the extension of AGOA beyond 2015 and pressed for the need for the country’s continued retention in AGOA as a beneficiary during the AGOA Forum held in Addis Ababa, Ethiopia, 9-13 August 2013.

Progress Report on NTBs with respect to Brazil concluded.

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Broadening ParticipationBroadening ParticipationSG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth

Draft Government-Wide Action Plan presented at the recent Cabinet Lekgotla.

Public comments on the B-BBEE Codes of Good Practice submitted to the Minister for consideration.

Launched the Bachelor of Economic Development Degree offered through the University of Western Cape.

30 incubators have been approved under the Incubation Support Programme.

Supported 10 projects under the ISP incentive.

Supported 64 projects under the CIS incentive.

Supported 263 projects under the BBSDP incentive.

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Legislation and RegulationLegislation and RegulationSG 4: Create a fair regulatory environment that enables investment, trade & enterprise development in an equitable & socially responsible manner Co-operatives Amendment Act, 2013 assented to by the President.

B-BBBE Amendment Bill classified as Section 76 and consulted with Provinces.Policy Framework and Licensing of Business Bill developed and public consultations conducted. Policy Framework and Lotteries Amendment Bill developed and public consultations conducted. Currently being debated in Parliament.Policy framework and National Credit Amendment Bill developed and approved by Cabinet for public consultations.Impact Assessment Study on the Liquor Act and Draft Policy developed.Final Policy Framework on Intellectual Property presented and approved by Cabinet for public consultations.

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Summary of Expenditure vs Projections as at 31/08/13

The expenditure based on the year to date projections of R3,870 billion, is 85.1% or R3,323 billion, implying an under-spending of R547 million (14.1%).


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Programme

Revised budget 2013/14

R’000

YTD projection

R'000

YTD expenditure

R'000

Variance

Available Budget

R'000Value

R'000%

Administration 694,029 271,855 276,940 (5,085) (1.87%) 417,089 International Trade and Economic Development

138,638 45,024 46,834 (1,810) (4.02%) 91,804

Broadening Participation 964,807 426,915 419,234 7,681 1.80% 545,573 Industrial Development 1,606,074 888,506 847,123 41,383 4.66% 758,951 Consumer and Corporate Regulations

256,157 132,821 120,887 11,934 8.99% 135,270


5,543,134 1,934,668 1,465,922 468,746 24.23% 4,077,212


369,741 170,959 146,499 24,460 14.31% 223,242

TOTAL 9,572,580 3,870,748 3,323,439 547,309 14.14% 6,249,141

5353

Thank you

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Annexures OutlineAnnexures Outline

Annexure A – Targets partially achieved

Annexure B – Adjusted Estimates: 2013/14 FY

Annexure C – MTEF 2014/15 FY

Annexure D – Q2 report: Key Highlights

Annexure E – Acronyms and Abbreviations

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5555

Annexure A: Annexure A:

Targets partially Targets partially achievedachieved

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Targets partially achievedTargets partially achieved cont… cont…Strategic Objective 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation

Output Targets Actual Achievement

Reasons for Variance

Automotive Incentive Scheme (AIS) and 12I tax allowance

Number of enterprises approved for incentives: AIS:54

28Variance (26)

High-value projects were supported. No new original equipment manufacturers were introduced impacting on jobs projection

Value of projected investments from projects approved: AIS:R2bn

R1.8 bnVariance (R200 mn)

Initial research at the introduction of the AIS, based on information from industry, indicated higher numbers for applications to be submitted, investment and jobs to be facilitated. No new models were introduced by OEMs in 2012/2013.

Number of new jobs projected from projects approved:AIS:2 300

767 Variance (1 533)

Initial research at the introduction of the AIS, based on information from industry, indicated higher numbers for applications to be submitted, investment and jobs to be facilitated. No new models were introduced by OEMs in 2012/2013.

Automotive Incentive Scheme (AIS) and 12I tax allowance

Number of new jobs projected from projects approved 12I :2000

1357 Variance (643)

The objective of the scheme is investment hence approved projects were more capital intensive not labour intensive.

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Targets partially achieved cont…Strategic Objective 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation

Output Target Actual Achievement Reasons for Variance

Critical Infrastructure Programme ( CIP) implemented

12 enterprises financially supported worth R6bn

6Variance (6)

The majority of targeted projects were renewable energy projects, which could not be approved due to the bidding process managed by DOE. the dti is still awaiting clarity in terms of how CIP could support such projects.

Business Process Services (BPS), Film and TV Production

15 BPS projects approved 12 Variance (3)

The programme performance dropped in 2012/13 due to global economic slowdown.

Number of Projected jobs from applications for BPS grant :6000

3936Variance (2064)

The target of the jobs was not achieved due to most of the jobs being realized in the year 2011/12 and sufficient skills pool being built to provide for BPS demand

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Targets partially achieved cont…Targets partially achieved cont…Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth.

Output Target Actual Achievement Reasons for Variance

Implementation of the enterprise investment programme ( EIP)

Number of SMEs approved for EIP (MIP and TSP) Incentive:EIP-TSP:300

122Variance (178)

The TSP product line was terminated mid-way of the financial year under review, hence fewer projects than anticipated.Value of projected

investments from projects approved: EIP-TSP:R4.2bn

R1.5 bnVariance (R2.7 bn)

Number of new projected jobs from approved projects :EIP-TSP: 6 160

1357Variance (4803)

Recommendation for the SMME review report implemented

Approved action plan emanating from the SMME review report

Draft Action Plan developed.Variance – no approval

Approval of Action plan not obtained

Implemented the Ten set-aside products

Agreement with National Treasury on the implementation of the Ten set-aside products

Deliberations with National Treasury took place. Variance – No agreement reached

10 set-aside products still in deliberations with NT. An agreement was reached on reviewing the proposed ten set aside measures in light of the designation of sectors as a way of increasing market access.

CIS and BBSDP programme

Number of enterprises approved for CIS and BBSDP grants:CIS:490

314Variance (176)

The business model was improved in order to clear the applications backlog, but due to capacity constraints the target was not met.

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Targets partially achieved cont…Targets partially achieved cont…Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth.

Output Target Not Achieved

Actual Achievement Reasons for Variance

B-BBEE Act and Codes of Good Practice for B-BBEE

Release of the approvedAmended B-BBEE Act forimplementation

The B-BBEE Bill was approved by Cabinet and introduced in Parliament – Variance - no implementation

Consultation process took longer than anticipated

Release of amended Codes of good practice for implementation

Revised Codes of good Practice were gazetted for 60 days to allow public consultation.Variance – no implementation


Developed and implemented the National Strategic Framework on Gender and Women Empowerment

National Strategic Framework on Gender and Women Empowerment finalized and submitted to Cabinet for approval

National Strategic Framework on Gender and Women Empowerment was endorsed by dti’s EXBO.Variance – approval by Cabinet not obtained.


CIS and BBSDP programme

Number of enterprises approved for CIS and BBSDP grants:CIS:490

314Variance (716)

The business model was improved in order to clear the applications backlog, but due to capacity constraint the target was not met.

Developed and Implemented the Youth Enterprise Development Strategy

Finalise Youth Enterprise Development Strategy and submit to Cabinet for approval

Finalise Youth Enterprise Development Strategy supported/endorsed by the dti’s Exbo.Variance –no Cabinet approval

The process was changed to focus on the development of a Programme of Action and its submission to the Minister.

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Targets partially achieved cont…Targets partially achieved cont…Strategic Objective 4: Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner.

Output Target Actual Achievement


Policies, Bills, Regulations to enforce fair business practices developed

One draft Bill on IP

Not achieved. Three other Bills developed for approval.

Variance – the IP Bill was not developed

Intellectual Property Bill not developed as it is awaiting adoption of Policy by Cabinet. The other 3 Bills were prioritised as per Cabinet request.

61

Targets partially achieved cont…Targets partially achieved cont…Strategic objective 5: Promote a professional, ethical, dynamic, competitive & customer-focused working environment that ensures effective & efficient service delivery

Output Target Actual Achievement


Annual Adjusted HR Plan

Percentage (%) of vacancy rate: 5%

8%Variance (3%)

New positions were created late in the financial year. However, year-on-year improvement evident.

6262

Annexure B Annexure B

Adjusted estimates – Adjusted estimates – 2013/14 FY2013/14 FY

Adjusted estimates 2013/14 FYAdjusted estimates 2013/14 FY

The department is currently busy with the adjusted estimates process. All inputs need to be submitted to National Treasury by the 10 October 2013.

The database and AENE chapter was submitted to National Treasury on the 17 September 2013. This includes the reprioritisation between the different programmes and economic classifications.

All the shifting/virement of funds between transfer payments is subject to National Treasury’s approval.

There were no additional funds requested for unforeseeable and unavoidable expenditure.

The slides that follow includes a high level overview of the adjustments made.

63


64

Programme Original Adjustments Revised Budget

R’000 R’000 R’000

Administration

690,079 35,950

726,029


138,638

3,000

141,638


968,307

41,900 1,010,207

Industrial Development 1 606,524

(9,850)

1,596,674

Consumer and Corporate Regulations

256,157

-

256,157


5,543,134

(50,000)

5,493,134


369,741

(28,100)

341,641

Total

9,572,580 (7,100) 9,565,480

Overview of the adjustments per programme:

Adjusted Estimates 2013/14 FY FY

65

Economic Classification Original Adjustments Revised Budget

R’000 R’000 R’000Current payments Compensation of Employees 854,246 (34,539) 819,707 Goods and Services 639,053 66,976 706,029 Interest and rent on landTransfer and subsidies Departmental agencies and accounts

1,234,727 50,995 1,285,722

Universities and technikons 12,834 - 12,834 Foreign government and international organisations

39,738 (35,200) 34,538

Public corporations and private enterprises

6,751,175 (77,730) 6,636,445

Non-profit institutions 18,885 8,900 27,785 Households 1,900 759 2,659 Payment for capital assets

Machinery and equipment 10,867 2,496 13,363 Software and other intangible assets

9,155 15,190 24,345

Payment for financial assets - 1 1Total 9,572,580 (7,100) 9,565,480

Overview of the adjustments per economic classification:


66

Programme Item Amount R’000

Motivation

Programme 4: Industrial Development: Policy Development

Transfer Payment: IDC: Clothing & Textile Production Incentive 75,825

Redirected between the Clothing & Textiles Production Incentive Programme (PIP) and the Clothing & Textiles Competitiveness Improvement Programme (CIP). This amounts to 10% of the PIP budget which is redirected in support of national cluster activities.

Programme 6: Industrial Development: Incentive Administration

Transfer payment: Manufacturing Development Incentives (Automotive Production and Development)

265,000

The expected applications and claims are based on the Light Motor Vehicle Manufacturer production cycle, for example when they are introducing a new model or a face-lift/upgrade. The applications for Component manufacturers are influenced and the volumes determined by this.

The following below are the key items that were reprioritised during the adjusted budget process

Adjustments from:


67

Programme Item Amount R’000 Motivation

Programme 4: Industrial Development: Policy Development

Industrial Development Corporation: Customised Sector Programme

72,325

Redirected between the Clothing & Textiles Production Incentive Programme (PIP) and the Clothing & Textiles Competitiveness Improvement Programme (CIP). This amounts to 10% of the PIP budget which is redirected in support of national cluster activities.

Programme 3: Broadening Participation

Small Enterprise Development Agency

40,920

The Department of Trade and Industry has mandated Small Enterprise Development Agency (Seda) to provide non-financial support services to small, medium and micro enterprises (SMMEs) through-out the country. Over the years, Seda has been diligent in delivering a variety of programmes to SMMEs.

Programme 6: Industrial Development: Incentive Administration

Broadening Participation Development Incentive

220,000

To date since re-launching of the revised program 1 508 projects have been approved, with projects for enterprise improvement worth over R500 million and approximately R250 million paid as grants to approved applicants.

Adjustments to:

6868

Annexure CAnnexure C

MTEF - 2014/15 FYMTEF - 2014/15 FY

MTEF 2014/15 FYMTEF 2014/15 FY

The department submitted its MTEF inputs to National Treasury on the 17 July 2013.

There was a request for additional funds over the MTEF period for the department and its agencies'.

There was also a request for new priorities i.e. funding for the establishment of the Co-operative Tribunal, Co-Operative Development Agency and Support to the Co-Operative Apex Organisation.

The slides that follow includes a high level overview of the funds requested and the motivation for such requests.

69


70

Programme Baseline Additional

funds requested

Revised based line

R’000 R’000 R’000

Administration 705,249 80,628 785,877

International Trade and Economic Development 148,324 - 148,324

Broadening Participation 1,007,387 1,100,003 2,107,390

Industrial Development 1,768,217 - 1,768,217

Consumer and Corporate Regulations 274,383 110,181 384,564

Industrial Development: Incentive Administration 5,642,036 - 5,642,036

Trade and Investment South Africa 412,433 20,000 432,433

Total 9,958,029 1,310,812 11,268,841

Overview of additional funds requested per programme:


71

Economic Classification Baseline Additional funds

requestedRevised based

line R’000 R’000 R’000Current payments 1,542,577 100,628 1,643,205 Compensation of Employees 915,033 915,033 Goods and Services 627,544 100,628 728,172

Interest and rent on land

Transfer and subsidies 8,388,188 1,210,184 9,598,372

Departmental agencies and accounts 1,343,622 1,210,184 2,553,806

Universities and technikons 15,751 15,751 Foreign government and international organisations 35,642 35,642

Public corporations and private enterprises 6,927,103 6,927,103 Non-profit institutions 64,320 64,320

Households 1,750 1,750

Payment for capital assets 27,264 27,264

Machinery and equipment 18,553 18,553

Software and other intangible assets 8,711 8,711

Payment for financial assets

Total9,958,029 1,310,812 11,268,841

Overview of additional funds requested per economic classification:

MTEF 2014/15 FY

72

Item Descriptions

2014/15 2015/16 2016/17 Total MTEF

PERIOD

Motivations

R’000 R’000 R’000 R’000

Office Accommodation 80,628 116,565 108,030 305,223

The request is for additional funds is for the DTI Campus contractual commitments under the PPP (R33.2m), rental of The Fields (Seda) (R18.5m) and the rental and facilities management for Block G (R31.5m).

TISA Foreign mission office 20,000 25,000 75,000 75,000

The spending pressure under programme seven is as a result of a need to define the dti’s global footprint through the establishment of additional foreign offices as indicated on the letter from the speaker of the National Assembly date 11 June 2013.

Totals 100,628 141,565 183,030 425,223

Motivation for the additional funds requested for the Department:

MTEF 2014/15 FY

73

Item Descriptions 2014/15 2015/16 2016/17

Total MTEF

PERIOD

Motivations

R’000 R’000 R’000

Companies Tribunal

10,000 14,092

21,989 46,081

For ICT strategy implementation plan for the effective functioning of the Tribunal.

National Credit Regulator

37,286 25,755 27,380 90,421Funds are require for acquisition of new building: National Credit Regulator occupied their current premises since the inception of the NCR in July 2006.

National Consumer Tribunal

8,51013,610

20,430 42,550

There are currently amendments proposed to the National Credit Act (NCA) that will impact on and expand the mandate of the NCT substantially with concomitant cost implications.

National Consumer Commission

40,085 53,475 - 93,560

It is necessary for the NCC to have an ICT strategy implementation plan for the effective functioning of the entity. Additional funds are also requested for the design and hosting of the NCC website

National Gambling Board

14,300 6,100

5,700 26,100

The NGB has been allocated a budget which does not fully fund the legislative mandate of the Board in terms of what the Act requires.

Export Credit Insurance Corporation

- 269,740

136,564 406,304

Funding, of interest make up transfers existing and pipeline export credit projects supported by ECIC.

National Empowerment Fund

1,100,000 1,100,000 1,100,000 3,300,000

The NEF is now at a growth stage where significant additional capital will be required to fund the rapidly increasing programme transaction pipeline which has been developed directly in line with Government’s programme of economic development.

Totals 1,210,181 1,482,772 1,312,063 4,005,016

Motivation for the additional funds requested for the entities:

MTEF 2014/15 FY

74

Item Descriptions

2014/15 2015/16 2016/17 Total MTEF

PERIOD

Motivations

R’000 R’000 R’000 R’000

Co-operative Tribunal 1 14,345

15,265

29,611

The Co-operatives Amendment Bill was approved by both houses of Parliament, i.e. National Assembly in November 2012 and National Council of Provinces (NCOP) in May 2013

Co-Operative Development Agency

1 46,200 62,000 108,201

Support to the Co-Operative Apex Organisation

1 4,717 5,417 10,135

Totals 3 65,262 85,682 147,947

Funds requested for new priorities

7575

Annexure DAnnexure D

Second Quarter Report Second Quarter Report - Key Highlights - Key Highlights

7676



Industrial Policy Action Plan (IPAP) Annual Report prepared and approved by DG and Minister.

Key research project undertaken on smoke detectors study to indicate possibility of designation.

Part of the 2013-2014 Family Planning tender (all SA-made contraceptives) worth est. R 100 million has been designated. Preliminary data show that 70% of the 2013-2014 anti-TB tender worth R 850 million has been won by SA manufacturers (in the absence of designation).

Instruction Notes for Power and Telecom Cables, and Solar Water Heaters (SWHs) were published by the National Treasury during the period under review.


7777



ITAC issued final regulations on scrap metals export controls in August 2013. The regulations calls for a Price Preferential System which will come into effect from 16 September 2013.

A draft instruction note submitted to National Treasury for the designation of Valves Products and Actuators and is currently being reviewed.

Practice Notes on Revised NIPP policy are currently being considered jointly by the dti and National Treasury.

Launch of the Solar PV Localisation Roadmap in conjunction with the Solar PV Industry Association.

APORDE Capacity Building Programme and parallel workshops conducted.


7878


SG SG 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation Significantly assisted EDD and ITAC in formulating Scrap Metal policy

intervention which will create a significant cost advantage for local processing industries (i.e. steel mini-mills, foundries and secondary smelters).

Launch of the SABS Local Content Verification Office and verification done on the framework for the verification of local production of busses

and rail rolling stock; and Johannesburg: Rea Vaya BRT Busses for Phase 1B Route has started.

Made substantive progress on tripartite negotiations on TBT Chapter.

The Pan African Quality Infrastructure (PAQI) was launched in Kenya on 30 August 2013. South Africa, through SANAS, NMISA and SABS holds the secretariats for 3 of the 4 PAQI structures, namely AFRAC, AFRIMETS and AFSEC as well as the Chairmanship of AFRAC.


7979


SG SG 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation Establishment of the Mr Price Footwear and Leather Goods Cluster

which will see the low end market being supplied with locally manufactured goods.

A combined approval to date of more than R2.1bn has been achieved and over R1.27bn has been disbursed to the participating enterprises from CIP and PIP respectively. Since inception 20 385 jobs have been created as a result of the support.

The Workplace Challenge Programme (WCP) -13 new companies participating.

64 projects with the investment value of R2,4 billion have been supported under MIP incentive.

7 projects supported under AIS.

13 projects supported under the Film incentive.

87 projects supported under the MCEP incentive.


Trade, Investment & ExportsTrade, Investment & ExportsSG 2: Build mutually beneficial regional & global relations to advance SA’s trade, industrial policy & economic development objective

Developed and advanced SA/SACU negotiating positions for T-FTA.

Monitored the implementation of the SADC Trade Protocol commitments towards South Africa.

2002 SACU Agreement amended to establish SACU Summit.

Cab memo prepared on SA position to promote a development integration agenda in SACU aligned to SA’s regional integration approach.

Tariff modalities not re-opened and agreed modalities reflect SACU’s positions very well.

SADC Model Bilateral Investment Treaty Template approved by MTF aligned to SA position.

80

Trade, Investment & ExportsTrade, Investment & ExportsSG 2: Build mutually beneficial regional & global relations to advance SA’s trade, industrial policy & economic development objective

Cab memo on options of SA approach to SACU developed resulting in prioritisation of engagements with BLNS at Presidential level.

2 National Pavilions organised in 31 August 2013, namely: FILDA and FACIM

Bilateral meeting held with the Namibian Trade and Industry Minister in August 2013.

Facilitated a seminar on construction and tourism sectors during a visit by the Tunisian Minister of Tourism in August 2013.

81

Trade, Investment & ExportsTrade, Investment & ExportsSG 2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development objective South Africa registered its position in support of the extension of AGOA

beyond 2015 and pressed for the need for the country’s continued retention in AGOA as a beneficiary during the AGOA Forum held in Addis Ababa, Ethiopia, 9-13 August 2013.

Progress Report on NTBs with respect to Brazil concluded.

Successful 10th SA-UK Bilateral Forum, Sub Committee on Trade, Investment and Economic Issues held in Cape Town on 09-10 September 2013.

Task Team established and coordinated research and analysis for SA Country Chapter of BRICS Joint Trade Study.

82

Trade, Investment & ExportsTrade, Investment & ExportsSG 2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development objective

Facilitated the Swiss Business Forum in Cape Town in September.

Held six Government to Government Platforms.

Hosted seven Successful Technical and Business missions (Africa Bilateral).

Facilitated Exports to the tune of R1 198 million.

Achieved R11.5 billion pipeline of investment in Renewable Energy projects.

Trained 341 companies under the Programme to raise awareness on Export Processes.

83


Draft Broad-Based Black Economic Empowerment Act classified as Section 76. 8 public hearings conducted in 9 Provinces. Comments from public hearings have been incorporated.

Draft Government-Wide Action Plan presented at the recent Cabinet Lekgotla.

Public comments on the B-BBEE Codes of Good Practice submitted to the Minister for consideration.

Launched the Bachelor of Economic Development Degree offered through the University of Western Cape.

84


Establishment of Sector Specific Regional Industrial Clusters (1st cluster : Mpumalanga Stainless Steel Cluster).

Support Programme for Industrial Innovation (SPII) – 20 new projects approved to the value of R 58.96 million.

A total of 1135 researchers supported - Support Programme for Technology and Human Resources for Industrial Progamme (THRIP).

30 incubators have been approved under the Incubation Support Programme.

85


The President has assented to the Co-operatives Amendment Act, 2013. The Act has been published in the government gazette No. 36729 (Notice No. 558) of 05 August 2013.

Held the International Day of Co-operatives in Durban in July 2013.

Supported 10 projects under the ISP incentive.

Supported 64 projects under the CIS incentive.

Supported 263 projects under the BBSDP incentive.

86

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

Policy Framework and Licensing of Business Bill developed and public consultations conducted. Policy Framework and Lotteries Amendment Bill developed and public consultations conducted. Currently being debated in Parliament.Policy framework and National Credit Amendment Bill developed and approved by Cabinet for public consultations.Impact Assessment Study on the Liquor Act and Draft Policy developed.Final Policy Framework on Intellectual Property presented and approved by Cabinet for public consultations.Legal Metrology Bill was certified after engagements with State Law Advisers.

87

Administration & Co-ordinationAdministration & Co-ordination

SG 5: Promote a professional, ethical, dynamic, competitive & customer-focused working environment that ensures effective & efficient service delivery

Vacancy Rate is at 10.13% - increase was due to 52 new posts created since April 2013.

Statistics for women in Senior Management Service (SMS) positions is at 43.97% and the people with disability is at 2.52%.

Received Top Award for best government department in women empowerment.

All eligible creditors’ payments were processed within 30 days.

Launched the Small Business Connect newspaper

Launched the 2013 Big Break Legacy TV Show

18 exhibitions and outreach initiatives conducted

88

Summary of Expenditure vs Projections as at 31 August 2013

The expenditure based on the year to date projections of R3,870 billion, is 85.1% or R3,323 billion, implying an under-spending of R547 million (14.1%).


89

Programme

Revised budget 2013/14R’000

YTD projection

R'000

YTD expenditure

R'000

Variance

Available Budget

R'000Value

R'000%

Administration 694,029 271,855 276,940 (5,085) (1.87%) 417,089 International Trade and Economic Development

138,638 45,024 46,834 (1,810) (4.02%) 91,804

Broadening Participation 964,807 426,915 419,234 7,681 1.80% 545,573 Industrial Development 1,606,074 888,506 847,123 41,383 4.66% 758,951 Consumer and Corporate Regulations

256,157 132,821 120,887 11,934 8.99% 135,270


5,543,134 1,934,668 1,465,922 468,746 24.23% 4,077,212


369,741 170,959 146,499 24,460 14.31% 223,242

TOTAL 9,572,580 3,870,748 3,323,439 547,309 14.14% 6,249,141

Summary of Expenditure vs Projections as at 31 August 2013

Overview of expenditure per economic classification:

90

Economic classificationRevised budget 2012/13

R'000

YTD projectionR'000

YTD expenditureR'000

VarianceAvailable

Budget

R'000

Value R'000 %

Compensation of employees

854,246 335,255 308,691 26,564 7.92% 545,555

Goods and services 636,767 260,123 239,221 20,902 8.04% 397,546

Payments for Financial Assets

0 0 604 (604) 0.00% (604)

Payment for capital assets

22,110 6,974 5,338 1,636 23.46% 16,772

Transfers & subsidies 8,059,457 3,268,396 2,769,586 498,810 15.26% 5,289,871

TOTAL 9,572,580 3,870,748 3,323,439 547,309 14.14% 6,249,141

Reasons for material expenditure varianceReasons for material expenditure variance

Reasons for material expenditure variance (continued)Reasons for material expenditure variance (continued)

Reasons for material expenditure variance (continued)Reasons for material expenditure variance (continued)

Item descriptionAmount (R’000) Reasons for under/(over) expenditure

Automotive Production and Development Programme

205,927

R205.9 million earmarked under the Automotive Production and Development Programme could not be disbursed as anticipated mainly due to the delay with the appointment of the consulting engineer as well as the production cycle.

Special Economic Zones: Investment Incentives 50,000

R50 million under the Special Economic Zones: Investment Incentives could not be disbursed as anticipated as the adjudication committee was not appointed. The first meeting is planned to take place during September 2013.

Export Market and Investment Assistance (20,901)

Over expenditure of R20,9 million under EMIA is due to more claims received and paid than anticipated. It should be noted that although the expenditure is more than the YTD projections it is still within the allocated budget.

Black Business Supplier Development Programme (37,914)

Over expenditure of R37.9 million under BBSDP is due to more claims received and paid than anticipated. It should be noted that although the expenditure is more than the YTD projections it is still within the allocated budget.

Co-Operatives Incentive Scheme (15,915)

Over expenditure of R15.9 million is due to more claims received and paid than anticipated. It should be noted that although the expenditure is more than the YTD projections it is still within the allocated budget.

Critical Infrastructure Programme 34,186

Funds earmarked under the Critical Infrastructure Programme could not be disbursed due to the introduction of a new requirement in the funding agreement, which requires auditors verification reports before clients submit claims.

9494

Annexure E:Annexure E:

Acronyms & Acronyms & AbbreviationsAbbreviations

Acronyms and Acronyms and AbbreviationsAbbreviationsTERM DEFINITION

AIS Automotive Investment SchemeACSA Airports company of South AfricaBAW Beijing Automotive Works B-BBEE Broad Based Black Economic EmpowermentBBSDP Black Business Supplier Development Programme

BITC Botswana Investment and Trade Centre

BPS Business Process ServicesBRICS Brazil, Russia, India, China and South AfricaCGETI Contact Group on economic and Trade Issues CIP Critical Infrastructure ProgrammeCIPA China Investment Promotion Agency

CIPC Companies and Intellectual Property CommissionCIPT Companies and Intellectual Property Tribunal;CIS Co-operative Incentive SchemeCTCP Clothing and Textiles Competitiveness ProgrammeCOMESA Common Market for Eastern and Southern Africa

95


EAC East African CommunityEPA Economic Partnership AgreementEIP Enterprise Investment ProgrammeEMIA Export, Marketing and Investment AssistanceEU European UnionEV Electric VehicleFAW First Automobile WorksFIFA Federation of International Football AssociationFTA Free Trade AgreementGDP Gross Domestic ProductIBMC-CAIT International Brand Management Centre – China Association of

International Trade IMF International Monetary FundIP Intellectual Property

IPAP Industrial Policy Action PlanITIs Investment and Trade InitiativesIWF Isivande Women’s Fund

96

Acronyms and Acronyms and AbbreviationsAbbreviations

TERM DEFINITIONMCEP Manufacturing Competitiveness Enhancement

ProgrammeMHVC Medium and Heavy Commercial VehicleMIP Manufacturing Incentive ProgrammeMoU Memorandum of UnderstandingNAFTA North American Free TradeNDP National Development PlanP-AIS People-Carrier Automotive Incentive Scheme SACU Southern African Customs UnionSADC Southern African Development CommunitySAGDA South African Graduate Development Associationseda Small Enterprise Development AgencySEZ Special Economic ZoneSMME Small, Medium and Micro EnterprisesSMS Senior Management ServiceSPII Support Programme for Industrial Innovationstp Seda Technology ProgrammeT-FTA Tripartite Free Trade Agreement

97


THRIP Technology and Human Resources for Industry Programme

TSP Tourism Support ProgrammeUN United NationsWCP Workplace Challenge ProgrammeYEDS Youth Enterprise Development Strategy

98

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Date : 20 September 2013 Director-General Mr Lionel October

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