Economic Development Department APP 2014/15

Presentation to Select Committee

July 2014

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BACKGROUND

THE CONTEXT OF THE APP 2014/15

CONTEXT

• Policy and planning Legislation Framework established/anchored in the 4th term

- NDP: development vision

- NGP: Economic Policy

- IPAP: Industrialisation Implementation plan

- Infrastructure Development Bill• Growth Drivers Identified• Lessons of Experience drawn from the infrastructure

Delivery programmes

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GROWTH DRIVERS

GROWTH DRIVERS

• SIP 1: Opening the Northern Mining Belt• SIP 2: Logistics and development corridor from Durban to

Gauteng• SIPs 3, 4, 5: Unlock economic opportunities on South East

coast and the West Coast and in North West• SIP 6, 7 and 11: Municipal infrastructure in 23 worst-served

municipal districts, agro logistics and integrated urban planning including BRT systems

• SIPs 8, 9, 10: Energy security• SIPs 12, 13, 14: schools, hospitals and universities• SIP 15, 16: Information and Communication technologies and

SKA• SIP 17: African regional development• SIP 18: Water and sanitation

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INFRASTRUCTURE

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LESSONS LEARNT FROM PICC

LESSONS LEARN FROM INFRASTRUCTURE

• Silos Broken• Focus on Outcome• Mechanisms of monitoring and evaluation• Mechanism of unblocking implementation, policy,

legislative and bureaucratic constraints• Long range pipe line planning- feasibility, financing,

skilling and technology.• Vertical and horizon. co-ord. within Govt Spheres• Social dialogues and partnerships

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LESSONS

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THE APP 2014/15 DIFFERENCE

• Context outlined above• Lessons of experience drawn from infrastructure• Approach in the 5th term:

“Radical Economic Transformation”• Radical change informed by clear vision, objectives,

Outcomes and outputs achieved through appropriately set KPIs

• Lift up political and managerial oversight

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WHAT MAKES THE 2014/15 APP DIFFERENT?

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WHAT INFORMS THE APP 2014/15

• The planning System seek to achieve NDP Vision• NGP, NIP and IPAP are main plans for NDP• The MTSF sets key targets for 5 years through

outcomes.• EDD is responsible for outcome 4: inclusive growth and

6: Infrastructure• The MTSF allocates tasks that shape the 2014/15 APP

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1. THE ECONOMIC PLANNING SYSTEM

• NDP: 20 Years Vision• MTSF: 5 years Goal• EDD STRATEGIC PLAN: Department 5 year plan• The APP : identify Annual targets.

: Provide basis for Legislative Accountability – implementation and voted monies.

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ACCOUNTABILITY

DISCLAIMER: Lessons of experience are economic environment is not static. EDD may be expected to deviate in the interest of economic stability and growth, when economic environment dictate otherwise from the current situation.

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ACCOUNTABILITY

• APP has been revised to reflect MTSF approved by Cabinet

• The revised MTSF call for few adjustments in the strategic plan

• In order to comply with relevant regulations, The revision of the Strategic Plan will only be presented during the course of 2014/15

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LEGAL MANDATE COMPLIANCE

• The Infrastructure Development Act (2014) : EDD Secretariat to ensure outcomes are realised

• IDC Act (1940): Financing inclusive industrialisation.• Competition Act (1998): deals with uncompetitive

behaviours• The ITAC Act (2002): Regulate international trade

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LEGAL MANDATE COMPLIANCE

• 4 core business organisational components

- Economic Policy development

- Economic planning and Co-ordination

- Social Dialogue, and

- The PICC Technical Unit• Components are allocated KPIs to lead through

collaboration across their programmes

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Organisational Structuring

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THE DEPARTMENTAL 2014/15 APP

• ID priorities for: job creation, Inclusive Growth and Industrialisation

• Align state effort towards realisation of the above• Oversee and provide strategic direction to DFIs• Oversee and Provide Strategic direction on competition

policy and Trade Administration matters

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EDD MANDATE

1. Established ministry for policy integration work – 2009

2. Co-ordinated response global economic crisis 2009-11

3. Complete Development New Growth Path 2010

4. 6 Public entities transferred to EDD (2010)

5. Established a functioning Department by 2013

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KEY MILESTONES OF EDD

6. Developed capacity to monitor key economic trends

7. Aligned government work to NGP, with focus on Job drivers by 2012

8. Refocused IDC, competition and Trade commission on jobs (2011 -14)

9. Social Accords on key NGP areas by 2013

10.Launch Infrastructure plan and support PICC by 2011

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KEY MILESTONES OF EDD

• Cabinet and Cabinet clusters• Outcome 4 co-ordinating Departments• Economic Sector and Infrastructure Cluster (ESID)• PICC structures: Council – Manco –Secretariat• MinMECs

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Co-ordination and alignment

• Approval of R 697 m• R 534 m to agencies• R 163 m to Departmental programmes:- Programme 1: Administration- R 79m- Programme 2: Economic Policy Development-R23m- Programme 3: Economic Planning and co-ordination –

R45m- Programme 4: Socio-economic Dev. &Dialogue -R15m

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WHAT ARE REQUESTING

• Fulfil 5 strategic objectives by:- Implementing 22 KPIs - To realise 154 outcome/targets

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THROUGH THESE PROGRAMMES

• No KPI• Focus on programme 1 that ensure well managed

department• Accounted for through clear regulated frameworks

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Objective 1

• OBJECTIVE 2: IMPLEMENTION OF NGP JOB DRIVERS, INCLUSIVE GROWTH PROGRAMMES, INDUSTRILISATION AND SOCIAL INCLUSION

KPI 1: Develop information and monitoring data to enhance coordination and support for implementation of 2 job drivers

KPI 2: Conduct 2 independent reviews of progress in the implementation outcome 4

KPI 3:Target 4 initiatives to strengthen implementation of NGP

KPI 4: complete 6 spatial, provincial and local economic priorities

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OBJECTIVE 2: IMPLEMENTION OF NGP JOB DRIVERS, INCLUSIVE GROWTH PROGRAMMES,

INDUSTRILISATION AND SOCIAL INCLUSION

• OBJECTIVE 3: CO-ORDINATE INFRASTRUCTURE FOR INCLUSIVE GROWTH, SERVICE DELIVERY, JOB CREATION INDUSTRIALISATION AND SOCIAL INCLUSION

• KPI 5: 60 quarterly progress reports on each SIPs to Cabinet

• KPI 6: unblock, Fas-track and facilitate 8 infrastructure projects

• KPI 7: coordinate Implementation of at least 4 cabinet decisions

• KPI 8: provide qualitative secretariat for the 20 meetings of the structures of the PICC

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• Strategic Objective 4: PROMOTE INVESTIMENT, EXPAND INDUSTRIALISATION AND SOCIAL INSOCIAL

• KPI 9: Facilitate, fast track and unblock 10 investment initiatives

• KPI 10: 4 initiatives to provide strategic guidance to improve the efficiencies of DFIs

• KPI 11: Initiate 2 processes to measure and expand industrial funding available across govt and DFIs

• KPI 12: initiate 2 processes to measure and facilitate the improvement of job impact of industrial funding by departments and DFIs

• KPI 13: 2 initiatives to measure and facilitate development goals through industrial funding for women, youth, women, small business, Black industrialists, township enterprises, rural development and entrepreneurs

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• OJECTIVE 5: PROMOTE COMPETITION, TRADE AND OTHE ECONOMIC REGULATIONS

• KPI 14: 3 initiatives to strengthen admin efficiency of trade and competition authorities

• KPI 15: 4 initiatives to evaluate and strengthen job creation, inclusive growth and developmental impact

• KPI 16: 2 initiatives to improve impact assessment of govt regulatory measures and reduce red tape and unnecessary restrictions on enterprises

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• KPI 17: initiate a process towards building regulatory capacity and effectiveness across the state

N.B: MTSF requires EDD to conduct a review of all economic regulators and propose improvements.

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Objective 5

• OBJECTIVE 6; FACILITATED SOCIAL DIALOGUE AND IMPLEMENT SOCIAL ACCORDS

• KPI 18: 4 Interventions to support local procurement of goods and services

• KPI 19: 2 interventions to support the development of green economy

• KPI 20: 2 interventions to enhance skills development through implementation of national skills accord

• KPI 21: 4 interventions to enhance youth employment, skills and entrepreneurs

• KPI 22: 4 initiatives to facilitate social partnership for sector, work place economic development

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OBJECTIVE 6; FACILITATED SOCIAL DIALOGUE AND IMPLEMENT SOCIAL ACCORDS

• 7 Critical KPIs for provinces• KPI 4: spatial, local and provincial initiatives to promote

inclusive growth, job creation and • KPI 5 and 6: on PICC• KPI 9 unblocking investment initiatives• KPI 16: Red tape and constraints reduction at provincial

and local level• KPI 18: On Local Procurement• KPI 22: facilitate national, sectoral and workplace

economic development partnership

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PROVINCIAL IMPLICATIONS

• 5 strategic objectives; 22KPIs and 154 targets• Quality information + Better coordination• Simple well targeted dashboards to monitor progress• Unblocking and fast-tracking projects and investments• Building strong partnerships• Development of policies and plans to enhance

implementation

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Focus of APP

• The APP covers 9 months• Many strategic objectives and KPIs are new reflecting

MTSF• A new strategic plan for EDD will be according revised to

reflect MTSF obligations • It is a challenging programme for EDD, but relevant and

critical for the needed inclusive growth and job creation

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CONCLUSION

SIYABONGA