Economic Development DepartmentAnnual Report 2011/12

Presentation to the

Select Committee

v1

November 2012

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Presentation Outline1. Mission

2. Context

3. Challenges Going Forward

4. Significant Developments

5. Highlights: Some Case Studies

6. Key Performance Indicators

7. Corporate Services

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Vision and Mission

• Vision– Decent work through meaningful economic transformation and

inclusive growth

• Mission - EDD aims to:– Coordinate the contributions of government departments, state

entities and civil society on economic development;– Contribute to efforts that ensure alignment between the

economic policies and plans of the state and its agencies and government’s political objectives and mandate; and

– Promote government’s goals of advancing economic development with decent work opportunities.

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Success indicators

• Outcomes to be measured against the targets of the New Growth Path and Outcome 4

• Main indicators:– Employment creation

• 300 000 new employment opportunities created in 2011/12• Above target, but disproportionately in the public sector

– Most evidence suggests inequality has not improved– The economy grew by 2,8% in the 2011 fiscal year

compared to the 2010 fiscal year

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Context• EDD is 3 years old• Focus on implementation

– National Infrastructure Plan

– Alignment within the state– Refocusing of the IDC – Accords (social partners

unblock projects)

• Consolidation of programmes and internal systems

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2011-2012: Reform of small business entities

From policy development to implementation…

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2009: Establishment of a Ministry for policy integration work

2009-2010: Coordinate response to recession/global economic crisis that started

in 2008

2010: Transfer six public entities to EDD and begin process of mandate alignment

on jobs

2010: Finalisation of the New Growth Path (NGP)

2009-2010: Establish a functioning Department with strong governance systems

2011-2012: Work with other departments and spheres of government to align

economic policy around the NGP and refocusing of the IDC

2011-2012: Dialogue to develop social accords on key NGP areas

2011-2012: Support development and implementation of National Infrastructure

Plan

Challenges going forward• External

– Slow economy in 2011/12, with a threat now of downturn in Europe and possibly the US and China

– Pressure appearing especially in terms of exports and financing for the infrastructure plan

• In South Africa: Persistent inequalities lead to conflict (workplace and outside)

• Internal (within EDD): – Shortage of high-level personnel reflected in staffing challenges

– Establishing new systems

• We have mitigation strategies for all of these • The Portfolio Committee can play a key role in coordinating

parliamentary inputs across ministries and departments

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IMPORTANT DEVELOPMENTS2011/12

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The National Infrastructure Plan

Support for the Secretariat to the PICC in the development and coordinated implementation of the National Infrastructure Plan

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Funding development

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• Alignment of the IDC’s activities with the New Growth Path and a major increase in its resourcing of development projects

• The consolidation of samaf, Khula, and the small business lending operations of the IDC into sefa– Doubling of the resources available – Expansion in kinds of funding

provided and the provincial footprint of activities

Support for investment and employment• Engagements

around the takeover of Massmart by Walmart ensuring sensitivity to employment

• Kansai intervention led to job guarantees and commitment for additional industrial capacity

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Social Accords• The National Skills Accord (13 July 2011) sets targets for

government, SOEs and the private sector to expand training and internships and to support SETAs and the FET sector.

• The Basic Education Accord (13 July 2011) provides for stakeholders to support individual schools in poor communities in line with agreed guidelines.

• The Local Procurement Accord (31 October 2011) commits government, state-owned enterprises and the private sector to expanding procurement of locally produced goods and services so as to maximise employment creation and deepen industrial capacity, with a target of 75% local procurement.

• The Green Economy Accord (17 November 2011) promotes the greening of the economy, including increased production of renewable energy, the installation of solar water heaters on a mass scale and energy efficiency, through appropriate regulations, investments and collective action by the stakeholders.

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Spatial Development

• Work with the DRDLR and other departments to identify key projects in the worst-served 23 municipal districts

• Work with the DRDLR to develop a coherent, integrated spatial approach to development

• Training programme on economic development established for officials from municipalities and provinces

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Conferences and platforms

• In May 2011, a Conference on the New Growth Path, bringing together Cabinet Ministers and Members of Parliament with high-level experts, officials and stakeholders to reflect on, and debate about, a number of key issues in the NGP

• Draft discussion document on Inequality formed the basis for a high-level platform held in May 2012 addressed by the Minister, Deborah Hargreaves of the UK High Pay Commission, Zwelinzima Vavi of COSATU and Bobby Godsell of BUSA

• Conference on Assets and Inequality held in conjunction with Studies in Poverty and Inequality Institute

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Examples of achievements

• Over 262 000 solar water heaters rolled out

• The IDC created 45 900 jobs from investments and loans

• The IDC supported Innowind which won bids for 3 wind farms to be implemented in the former Transkei and Ciskei

• The EDD supported RiseUp Cooperative Bakeries in the Western Cape, contributing to empowerment, food security and jobs

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KEY PERFORMANCE INDICATORS FROM THE APP

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Main challenges

• A challenge for EDD is that the targets in the APP often do not adequately reflect new tasks that arise as conditions change during the year

• Work on the PICC in particular was not foreseen in the APP for 2010/11, due to Cabinet resolving on the matter in July 2011

• The audited outcomes in this year’s report therefore somewhat understate our achievements

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Programme Structure

Taskteam to support the PICC

Support for the PICC

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The PICC and the APP

• The PICC is critical for implementation of the NGP

• But the PICC was only established in the second half of 2011, as a result of work on implementation of the NGP

• It is therefore not included as a separate programme in the APP or the budget

• Some PICC achievements are included as part of Branch work, but here provide a more holistic overview

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Support for the PICC• Based on EDD proposals, PICC established in 2011 –

President heads the Commission and members are relevant Ministers

• Minister of Economic Development chairs the Secretariat, which consists of Ministers and Deputy Ministers

• Technical secretariat of experts from SOEs and departments

• EDD staff provide various key supports– Assist with conceptualisation and planning– Logistics and co-ordination– Monitoring and evaluation

• Staff are both employed directly for the PICC work and seconded full time or part time from branches

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Key achievements

• Work with PICC structures to develop the National Infrastructure Plan, which was adopted in the first quarter of 2012– Development of an integrated needs assessment

– Identification of existing projects as well as gaps and potential for synergy and ways to increase developmental impact

– Process required intensive collaboration across spheres and departments

– EDD helped to co-ordinate expertise from relevant functions across the state

• EDD work resulted in:– 17 SIPs being identified

– More than 150 projects identified and documented in an infrastructure book

– Costing of key programmes

– Skills audit on engineers and other scarce skills in the public sector

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Key achievements (2)

• Initiation of work on financing and skills plans to implement the National Infrastructure Plan

• Management and launch models developed for SIPs, leading to launches through the first half of the 2012 fiscal year

• Development of monitoring and evaluation framework to track progress on SIPs

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Economic Policy Development

Purpose: To strengthen the economic development policy

capacity of government

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APP objectives and measures • Monitor implementation of the NGP and produce

quarterly reports• Issue policy papers• Convene policy platforms• Provide analytical data on the real economy• Establish an economic development index• Develop BBBEE policy frameworks• Establish Economic Development Institute• Develop, implement, monitor and evaluate strategies for

youth employment, gender and the second economy

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Policy: AchievementsMonitor NGP progress

• Regular analyses of key economic trends, risks and opportunities provided as part of the Outcome 4 quarterly reports, in collaboration with the National Treasury and the dti

• Detailed assessment of progress on the New Growth Path supplied for the July 2011 Cabinet lekgotla, which contributed to the adoption of critical interventions by Cabinet, including the establishment of the PICC

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Policy: Achievements Monitor NGP progress• Two surveys conducted on the impact on employment of

state activity by all national and provincial departments, in collaboration with the DPME

• Surveys were backed up by a detailed research paper commissioned from the Development Policy Research Unit of the University of Cape Town on the role of the state in employment creation

• Reports were made to Cabinet makgotla on findings

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Policy: AchievementsPolicy inputs and analyses

• Sector inputs amongst others on iron and steel; the Eastern Cape auto industry; scrap metals; the retail industry; infrastructure inputs; elements of the mining value chain in the Eastern Cape, Limpopo and the Northern Cape; the production of rolling stock; and the dairy industry

• Assessment of the Broad-based BEE Codes from the standpoint of the NGP leading to specific proposals for strengthening incentives for employment creation, enterprise development and local procurement

• Research commissioned on the impact of the BEE Codes on listed companies

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Policy: Achievements Policy inputs and analyses (2)

• Draft document on a multi-pronged strategy for youth employment discussed in the Cluster at the end of 2011 and tabled in NEDLAC for preliminary discussions with stakeholders early in 2012

• Data analyses finalised on gender and the NGP and on inequality, with several presentations to stakeholders inside and outside of government

• Initial study towards the establishment of an Economic Development Index by staff members and TIPS

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Policy: Achievements Policy inputs and analyses (3)

• Development of guidelines for socio-economic impact assessment system (SEIAS) with Presidency and Treasury

• Terms of reference developed for an organisational study of the Economic Development Institute

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Policy: AchievementsPlatforms

• First Annual Development Conference held in May 2011, on the New Growth Path

• Preparations for second Annual Development Conference, on the National Infrastructure Plan, from late 2011 – Conference was held in April 2012

• Conference on Inequality and Asset Ownership held jointly with SPII

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Programme 2: Economic Policy and DevelopmentStrategic Objective: Number of papers and policy proposals developed on the National Growth Path (NGP)

Indicator: Development of reporting system for state departments and agencies in collaboration with DPME and ILO

Annual Target: 3

Quarter 1 Quarter 2

A customised template for employment reporting was developed in collaboration with DPME and ILO for departments and agencies including:EDD, DTI, DMR, DAFF, DAFF, DRDLR, Labour, DST, Tourism, Environmental Affairs, DACHuman Development & Social Protection ClustersInfrastructure ClusterGovernment Administration ClusterJCPS ClusterICTS ClusterProvincial governments

An initial survey was conducted and a summary

submitted to the July Cabinet lekgotla.

The survey revealed that most departments are

unable to evaluate the impact of their regulations,

production of goods and services, or

procurement practices on employment .

Policy: Achievements Provincial and Local Engagements

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Programme 2: Economic Policy and Development

Strategic Objective: Number of papers and policy proposals developed on the National Growth Path (NGP)

Indicator: Development of reporting system for state departments and agencies in collaboration with DPME and ILO

Annual Target: 3

Quarter 3 Quarter 4

A second survey was conducted and revealed a

need to improve systems for assessing the impact

of government actions, especially regulations and

services, on employment.

The second round of department reports completed with the DPME, and work on improving capacity building with provinces and departments began.

Work commenced on initiating the modelling of employment impacts with the ILO. Additionally, work was completed on guidelines for the impact assessment system with the Cabinet Office.

Policy: Achievements Provincial and Local Engagements

Economic Planning and Coordination

Purpose: To develop economic planning proposals and the green economy, as well as

provide oversight over DFIs and ERBs

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APP objectives and measures• Submit proposals to the National Planning Commission,

Cabinet and the provinces• Coordinate and develop sector plans for key sectors• Develop proposals for harmonising national, provincial

and local economic development plans• Develop spatial economic development action plans• Exercise policy, strategy and budgetary oversight over

DFIs and ERBs• Develop a strategy to enhance investment for economic

development

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APP objectives and measures (2)• Develop papers on leveraging procurement and expenditure

to enhance government’s developmental priorities• Promote South Africa’s international relations strategy and

economic development by engaging with regional and international agencies and multilateral institutions

• Grow the Green Economy through coordinating government and private sector players, including by establishing a dedicated fund

• Grow the agro-processing sector by coordinating government and private sector players, including by establishing a dedicated fund to support enhanced competitiveness

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Planning: Achievements Development finance and SMME support

• Establishment of Business Hub for SMMEs with SAICA

• Meetings with the dti and Treasury and workshops with departments on 30-day payment deadline for SMMEs

• Initial meetings with the PIC on targeted support for developmental investments

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Planning: Achievements

Development finance and SMME support (2)• Quarterly meetings with entities overseen by

EDD and targeted meetings with the IDC• Establishment of sefa (samaf, Khula and IDC

small business lending unit)– Workshops and documentation (overview, business

case, due diligence, risk assessment report)– Available resources doubled, thus more kinds of

funding provided to SMMEs, and the provincial footprint expanded

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Planning: Achievements Special Financing

• IDC:– Approvals increased from R11,5 billion in FY2010 to

R18,8 billion in FY2012– Disbursement increased from R6,5 billion to R8,5

billion– Created or saved 45 000 jobs

• Transfers to samaf and Khula: R223 million• UIF/IDC bond for companies in distress: R343

million• Raised jobs bond of R2 billion

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Planning: AchievementsSpatial development

• Support for the PICC– Assistance with co-ordination of SIPs 6 and 11 – Work with DRDLR and CSIR on defining and operationalising

economic regions

• Work with DRDLR on identifying priority projects in the 23 worst-served districts

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Planning: AchievementsSpatial development (2)• Reviews of the Socio-Economic Development Strategy of the King

Sabata Dalindyebo Presidential Initiative; the Northern Cape Provincial Growth and Development Strategy; and the Integrated Development Plan of the Renosterberg Local Municipality in the Northern Cape.

• Review of the Standerton (Lekwa Municipality) area, with the view to facilitate the establishment of a soy bean and sunseed oil crushing plant by a private investor in that municipality.

• Support for the spatial action plan for the Doringbaai-Matzikama Municipality

• Support for RiseUp Bakery cooperatives on the West Coast• Draft framework for the revitalisation of Atlantis

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Planning: AchievementsThe Economic Development MinMEC

• At 25 July 2011 Technical MinMEC, DBSA presented on the Jobs Fund.

• At the 18-19 August 2011 Technical MinMEC, key national departments highlighted actions taken to eliminate provincial blockages.

• MinMEC on 12 September 2011 adopted a detailed work programme aimed at aligning provincial work programme to the 12 action plans adopted at the 2011 July Cabinet Lekgotla as well as unlocking blockages projects.

• MinMECs were also held as follows:– Technical MinMECs on 17 May, 21 June (on the employment impact survey) and

17 October (response to blockages) in 2011– MinMECs on 10 June and 1 July 2011

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Planning: AchievementsLocal procurement

• Engagement with the dti and Treasury leading to adoption of regulations to support local procurement and first-round designations

• Industry forum on 22 September 2011 to discuss the designation process and the type of commitments required by the different sectors

• Meetings with SABS leading to development of a technical standard, SATS 1286, for local  content, which was published for comment on 23 November 2011.

• Agreement with Proudly South African (PSA) to expand its efforts

• Increased local procurement of stationery by EDD

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Planning: AchievementsThe green economy• The Director-General led a government-wide steering committee to ensure

implementation of the target of installing one million solar water heaters by 2014

• Work with the IDC to support business financing for renewable energy generation in terms of the targets set in the Integrated Resource Plan

• Collaboration with the IDC and the DBSA on the publication of the Green Jobs Report in November 2011.

• Work with the government team at COP17 in late 2011.

• Workshops with Western Cape and Gauteng agencies on the green economy

• Inputs and comments on the Autocatalytic Converters and Diesel Particulate Filters Implementation Plan

• EDD convened several inter-departmental meetings on the Green Economy with the Department of Environmental Affairs, the dti, the Department of Energy and others.

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Planning: Achievements African regional development

• Support for the Tripartite Summit between the regional economic communities of the Southern African Development Community (SADC), the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) from 8 to 12 June 2011 aiming to establish a Tripartite Free Trade Agreement (FTA)

• Minister Patel acted as programme director at the launch of the Free Trade Agreement (FTA) talks

• Participation in development of infrastructure within the North-South Corridor, a regional initiative chaired by President Zuma

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Programme 3: Economic Planning and CoordinationStrategic Objective: Develop Spatial, Sector and National Economic PlansIndicator: Number of engagements with provincial and local govtAnnual Target: 10

Quarter 1 Quarter 2 16 May 2011: meeting with Ekurhuleni Metro on alignment of their

economic development plan with the New Growth Path (NGP).

20 May 2011: engagement with the Mpumalanga Provincial

Department of Economic Development, Environment and Tourism on

the draft Mpumalanga Growth & Development Plan.

27 May 2011: engagement with the Ethekwini Metro’s learning

institute (MILE) on NGP and its relevance for Metros

31 May 2011: presentation to Gauteng Department of Economic

Development and its agencies on the NGP

5 June 2011: follow-up session with the Gauteng Economic

Development Department the portfolio of priority projects in Gauteng.

17 June 2011: engagement with the Lekwa Local Council on land

tenure, bulk infrastructure (water, electricity) and local economic

development implications of the project for the community in the

Lekwa municipal area.

1 August 2011: engagement with the North West Department of

Economic Development on alignment of the Provincial Growth and

Development Strategy with the NGP and areas where EDD could assist

with unblocking obstacles to priority projects.

Planning: Achievements Provincial and Local Engagements

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Programme 3: Economic Planning and CoordinationStrategic Objective: Develop Spatial, Sector and National Economic PlansIndicator: Number of spatial plans produced or reviewed per year Annual Target: 12

Quarter 1 Quarter 2

A review was conducted on the NC Provincial Growth and

Development Strategy as well as the IDP of the Renosterberg Local

Municipality as a contribution to the Anti-Poverty Campaign in the

Northern Cape.

Engagement with the Mpumalanga Provincial Department of

Economic Development to  review the Lekwa Municipality to

facilitate the establishment of a Soyabean and Sunseed Oil Crushing

Plant  (by global and local investor grouping: Noble Resources and

Altius Investment Holdings)

Spatial Action Plan for Doringbaai- Matzikamma Municipality: the IDC

approved financial assistance of R2 million to Noordebaai Vissers, a

small black-owned fishing company operating along the West Coast.

R1,9 million was provided to the company on 2 June 2011.

EDD assisted RiseUp Bakery Holdings, also in the Matzikamma

Municipality, to apply for government funding through the dti's

Cooperative Incentive Scheme.

A draft framework for the Revitalisation of Atlantis was completed.

EDD assisted with the unblocking of the DAFF processes to secure

approval by DG DAFF to appoint Matzikama Local municipality as the

implementing agent for the Doringbaai aquaculture project by mid

September 2011. The Value of EPWP grant is R475 million.

An updated spatial plan review for the King Sabata Dalindyebo (KSD)

Presidential Initiative was submitted on 8 September as part of the KSD

Provincial Working Group outputs. The updated spatial plan review was

in support of the presidential visit to KSD on the 29 September 2011.

Planning: Achievements Provincial and Local Engagements

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Programme 3: Economic Planning and Coordination

Strategic Objective: Develop Spatial, Sector and National Economic Plans

Indicator: Number of engagements with provincial and local govt

Annual Target: 10

Quarter 3 Quarter 4 8 October 2011: EDD accompanied Deputy President Mr

Kgalema Motlanthe on Anti-Poverty Campaign visit to Ga-Kgatla Village, Blouberg Local Municipality, in Limpopo Province

14 November 2011: presentation on NGP to KZN Province at the KZN RLED Summit

12 December 2011: presentation on the EDD Strategy to the Limpopo Department of Economic Development, Environment and Tourism strategic planning session.

2 December 2011: presentation at Free State LED summit on the NGP priorities and alignment of LED Plans

7 December 2011: meeting with MEC Winde (Western Cape) on

the alignment of the Western Cape economic development policies and plans with the implementation of the NGP.

19th/21st November 2011 & 20th November and 6th December 2011: engagement with 22 rural districts in line with the Cabinet Lekgotla Action Plan to scale up land reform led by the DRDLR, focussing on high impact projects

28 November 2011: planning meeting for a Presidential Intervention in the Diyatalawa and Makgolokoeng municipalities in the Free State Province.

9 March 2012: presentation to 22 District municipalities on the functional regions approach to planning for infrastructure investment

6 March 2012: Economies of Regions learning network focussing on key city-regions, provinces and national role-players to share ideas and approaches to planning.

Engagements with Eastern Cape authorities on three green energy projects.

Training of local government officials from five municipalities at WITS University to build municipal capacity in economic development.

Planning: Achievements Provincial and Local Engagements

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Programme 3: Economic Planning and CoordinationStrategic Objective: Develop Spatial, Sector and National Economic PlansIndicator: Number of spatial plans produced or reviewed per year Annual Target: 12

Quarter 3 Quarter 4

The Employment Creation Fund approved funding for

Rise Up Cooperative Bakeries. A pilot took place in

Matzikama municipality, which includes Doringbaai -

a key distressed area.

The Branch facilitates individual projects as part of its

spatial interventions. Individual projects were

facilitated in the Eastern Cape and Western Cape.

National level spatial planning and Infrastructure Plan of

the PICC was the focus of this quarter.

Planning: Achievements Provincial and Local Engagements

Economic Development and Dialogue

Purpose: To promote social dialogue and build capacity

among social partners, as well as implement strategic frameworks (accords)

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APP objectives and measures• Convene national social dialogue forums• Facilitate social pacts at the national level in the

workplace and within sectors.• Facilitate, monitor and report on the implementation

of framework agreements and social pacts• Host learning events for economic development

learning networks• Host an annual Economic Development Conference

(with Policy Branch)• Convene the Economic Advisory Panel

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Dialogue: AchievementsNational Accords

• Four social accords under auspices of NEDLAC, with negotiations led by a team of Ministers convened by Minister of Economic Development

• EDD Officials supported the negotiations through secretariat services and developed implementation frameworks

• Parties to the National Skills Accord reported on implementation in a workshop with the Department of Higher Education and Training on 29 February 2012 with a report on progress and proposals for addressing blockages

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Dialogue: AchievementsNational Accords (2)

• Participation in the Port Elizabeth Factory Tour in July 2011

• Report to Minister Patel in September 2011 on implementation of the National Response to the Global Economic Crisis

• Presentation at ILO/Labour Jobs Pact Workshop on 10 December 2011

• Training Layoff Scheme Task Team meeting held on 3 May 2011

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Dialogue: Achievements Capacity building

• Workshops on the NGP and social accords were conducted with business, labour and community representatives in seven provinces in February and March 2012

• Four capacity building workshops on the Social Accords for labour were held in four provinces between October and November 2011

• Participation in a panel on jobs at the FEDUSA Congress in November 2011.

• Initial work was undertaken on setting up knowledge networks for the EDD

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Dialogue: AchievementsSectoral and workplace

• Support for the Western Cape Furniture Industry Pilot Project

• Meetings with Western Cape provincial representatives and stakeholders on ways to support the clothing industry in the second half of 2011

• Support for the Isithebe Plan to set up a garment factory in KwaZulu-Natal

• A social dialogue and capacity building engagement workshop with the Metals and Engineering Industry Bargaining Council (MEIBC)

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Dialogue: AchievementsSectoral and workplace (2)

• Support for the Dimbaza Foundry, which is one of the few remaining factories at the industrial site, including obtaining funding for a feasibility study and engagements with relevant officials and stakeholders

• An intervention to save jobs at a major company in the forestry value chain, where initially more than 1200 jobs were at risk of being shed, involved meetings with the CCMA, stakeholders and officials and saved half the jobs at risk

• An intervention was also undertaken that secured more affordable leather for a cooperative that manufactures school shoes for needy children

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Dialogue: Achievements Productivity

• Draft productivity concept document developed• MOU signed with Productivity SA on 21 September

2011 to strengthen collaboration and cooperation so as to fast track government’s productivity initiatives.

• Six sessions held with NEDLAC constituencies to ascertain their views on productivity

• Workshop on 21 October 2011 with the International Labour Organisation (ILO), Proudly South African, organised labour and community to follow-up the initial sessions

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Programme 4: Economic Development and Dialogue

Strategic Objective: National Social Dialogue and Strategic Frameworks

Indicator: Number of social dialogue and capacity building engagements held

Annual Target: 10

Quarter 1 Quarter 2

An NGP presentation on skills development was given at

an interdepartmental meeting at the Department of Home

Affairs.

19 April 2011: A social dialogue and capacity building

engagement was held in the form of a workshop with the

metals and engineering industry bargaining council

(MEIBC).

30 June 2011: A meeting was held with IDC managers to

share information about the Training Layoff Scheme and to

give effect to the proposed MOU between EDD, the IDC

and the CCMA.

25- 27 July 2011: A meeting and tour with a Port Elizabeth

Factory was held to discuss the nature of production and

details of the enterprise, challenges facing manufactures in

that region and steps taken to improve competitive positions.

13 July 2011: The New Growth Path- social dialogue was held

with leaders of business, organised labour and community

constituency. The items under discussion included the

infrastructure investment and the draft accords on local

procurement and the green economy.

26 August 2011: The New Growth Path- social dialogue was

held with leaders of business, organised labour and community

constituency.

Planning: Achievements Provincial and Local Engagements

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Programme 4: Economic Development and Dialogue

Strategic Objective: National Social Dialogue and Strategic Frameworks

Indicator: Number of social dialogue and capacity building engagements held

Annual Target: 10

Quarter 3 Quarter 4

A presentation on the Implementation of the Framework

Agreement was conducted in 4 provinces during the Labour

Capacity Building Workshops. Training in: Kwa-Zulu Natal (18-19

October’11), Eastern Cape (25-26 October’11), Northern Cape

(01-02 November’11) and Polokwane (08-09 November’11).

27 October 2011: EDD Social Dialogue Branch met with the

community constituency to discuss a joint working programme

with stakeholders.

21 November 2011: the Dimbaza presentation was made in the

Eastern Cape to explain the turn-around strategy for the Dimbaza

Foundry in detail. Discussions were also focussed on the

finalization of cash flow projections. The strategy would allow the

foundry to continue its operations without losing jobs.

The NGP and four accords were presented at provincial capacity

building workshops conducted between February and March 2012 in

7 provinces and attended by all social partners (business, labour,

provincial government and community organisations.(The final two

provincial workshops were held after the 4th quarter.)

Planning: Achievements Provincial and Local Engagements

CORPORATE SERVICES

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Corporate governance

• All reporting requirements met

• Good audit results

• Regular meetings of Manco, Exco and internal audit committee

• Continued development of corporate governance systems and policies, including on human resources, fruitless and wasteful expenditure, entertainment, the use of mobile phones and communication devices, petty cash, subsistence and travel allowance and facilities management

• Workshops held for strategic planning, risk management and fraud control

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Human resources

• As of 31 March 2012, – 107 officials had been appointed– 8 had accepted offers of employment

• Vacancy rates:– The overall vacancy rate was 13,2%

• Representivity: – 60% of senior managers and three quarters of senior

professionals and middle management were African– 28% of senior managers and 45% of senior professionals and

middle management were women– The department had one disabled employee (1% of total)

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Staff complement as at 31 March 2012

By the 31 March 2012, 107 officials had been appointed and a further 8 had accepted offers of employment from EDD (start date 1 April 2012) 63

Representivity

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Conclusion

• Employment creation and growth were on track in the last fiscal year, but new risks have emerged internationally and locally

• EDD’s activities contributed to core achievements by government

• In 2012/13, we will accelerate efforts– To respond to the global crisis especially through the National

Infrastructure Plan and regional development

– To address inequality especially in the workplace as well as through employment creation

• EDD’s focus will continue to shift from policy development to supporting and coordinating implementation

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