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STRATEGY 2006 – 2009
Briefing to the Portfolio Committee on Trade and Industry and the Select
Committee on Economic and Foreign Affairs
15 March 2006
STRATEGY 2006 – 2009
Contents
Context
Strategic Objectives
Progress on 2005/06 Deliverables
Strategic Goals for 2006 to 2009
Budget
Structure
Regulatory Programme
STRATEGY 2006 – 2009
Context
The MTSF is informed by:
The Accelerated and Shared Growth Initiative
Achieving and sustaining higher GDP
Need to increase Job Creation
Need to increase Investment
Need to increase Exports
Broadening of Economic participation through
BBBEE and Enterprise Development
Record levels of consumer and business confidence
STRATEGY 2006 – 2009
Context
Low inflation and interest rates
Lowest budget deficit in years
Volatility & level of the currency
Cost, efficiency & capacity of the national logistics system
Shortage of capacity, skilled labour & leadership
Cost effects on labour of apartheid spatial patterns
Constraints on small & medium businesses
STRATEGY 2006 – 2009
Strategic Objectives Promoting coordinated implementation of the accelerated &
shared growth initiative Promoting direct investment & growth in the industrial &
services economy, with particular focus on employment
creation Contributing towards the development & regional integration
of the African Continent within the Nepad framework Promoting broader participation, equity & redress in the
economy Raising the level of exports and promote equitable global
trade
STRATEGY 2006 – 2009
2005/06 DeliverablesProgress on Key Deliverables for 2005/06 National Consumer Credit Bill proclaimed and regulations
published for comment Consumer Bill approved by Cabinet Draft Companies Bill discussed with local and international
reference team Competition Policy Review document finalised 500 consumer complaints, 17 company complaints and 52
intellectual property complaints resolved.
STRATEGY 2006 – 2009
2005/06 DeliverablesProgress on Key Deliverables for 2005/06 Effective participation in 6th WTO Ministerial Conference Instrumental in formation of industrial trade lobby group in
WTO at Hong Kong Negotiations with EFTA concluded Ongoing engagement between SACU and US on possible FTA Operationalisation of the Permanent Trade Forum Exploratory talks with India 13 Investment Protection Agreements and Bilateral
cooperation agreements concluded 23 technical and trade missions to African countries
STRATEGY 2006 – 2009
2005/06 DeliverablesProgress on Key Deliverables for 2005/06
80 BEE projects valued R160m supported through Industrial
Innovation
927 researches and 2250 students assisted through
Technology for Human Resources ( 53% black women)
98 new standard accreditation done on facilities
Apex fund launched in five provinces
Cooperative scheme scoped 20 mega projects in 9 provinces
Finalised Codes of Good Practice
STRATEGY 2006 – 2009
2005/06 DeliverablesProgress on Key Deliverables for 2005/06
Investment incentives Small Medium Enterprise Development Programme
1 791 new projects approved R13,9b investment, 39 122 new jobs created
Strategic Industrial Projects (SIP) 5 New projects approved R11,12b investment by approved projects, 778 direct jobs, 31 481 indirect jobs
Critical Infrastructure Programme (CIP) 8 New Projects approved R1,6b investment in infrastructure, R8,5b investment in projects
STRATEGY 2006 – 2009
2005/06 DeliverablesProgress on Key Deliverables for 2005/06
Investment incentives – cont. Film & Television Production Rebate Scheme
15 Productions approved Investment: R732m, Rebate amount R124m
Export Marketing and Investment Assistance Scheme 523 New Projects approved (R33,7m)
Individual Exhibitions: 458 Enterprises (R20.8m) Primary Market Research: 39 Enterprises (R1m) Sector Specific Assistance Scheme: 23 Projects
(R11.7m) Claims R15,4m
STRATEGY 2006 – 2009
2005/06 DeliverablesProgress on Key Deliverables for 2005/06Black Business Supplier Development Programme (BBSDP)
545 New projects approved/ Enterprises assisted Value of projects R27,4m Claims paid: R15,5m
In the first two quarters R1.4bn of foreign direct investment
was facilitated.
STRATEGY 2006 – 2009
2005/06 DeliverablesProgress on Key Deliverables for 2005/06 5506 exporters assisted and advised
50% of EMIA recipients were SMME’s, 21% were
black and women owned enterprises
29 national pavilions were held generating R324,8m in
export sales for participating enterprises
83 inward investment and buying missions
46 outward buying missions
STRATEGY 2006 – 2009
2005/06 DeliverablesProgress on Key Deliverables for 2005/06
11 Sector Development Strategies & Programmes in various stages of
development. Of these 8 (i.e., Textiles and clothing, and Footwear &
leather, Metals, Agro-processing, Craft and film, Marine and rail,
Automotives, Electro-technical, Capital equipment) have been developed
& to be considered by the Executive Board of the dti for approval &
public comments, 3 (i.e., Business Process Outsourcing, Tourism,
Chemicals) was approved by the Executive Board and published for
comments.
STRATEGY 2006 – 2009
2005/06 DeliverablesProgress on Key Deliverables for 2005/06 Expanded outreach to clients and customers:
A total of 1,485, 200 website hits were recorded 65 once-off, or specialised publications, brochures &
pamphlets were published
In total 60 events and exhibitions were successfully
managed & executed
Over 40 000 economic citizens visited the dti to enquire on
various services such as incentives, registration of companies
98% of all escalated queries are resolved within 48 hours
STRATEGY 2006 – 2009
Strategic Goals
Strategic goals of the Department will be addressed in the following categories:
Policies & Strategies
Legislation & Regulation
Enterprise & Industrial Finance
International Trade
Support for the Strategy
STRATEGY 2006 – 2009
Strategic GoalsPolicies & strategies to be finalised include: Industrial Policy framework Competition policy review Intellectual Property Law Reform Policy Export Promotion & Investment strategies National Services strategy framework Business Process Outsourcing strategy Regional Industrial Development Strategy Manufacturing Skills Strategy Gender & Women’s Empowerment strategy Trade policy incl. WTO, Bilaterals & Africa/Nepad
STRATEGY 2006 – 2009
Strategic GoalsPolicies & strategies to be finalised include:
Review of Estate Agents regulatory framework
In line with the State of the Nation Address of 2005 and 2006,
8 Sector Development Strategies And Programmes (i.e.,
Textiles and clothing, & Footwear and leather, Metals, Agro-
processing, Craft and film, Marine & rail, Automotives,
Electro-technical, Capital equipment) to be published
STRATEGY 2006 – 2009
Strategic Goals
Legislation and regulation will include: Amendments to:
The National Gambling Act (Horse Racing) The National Lotteries Act Counterfeit Goods Act Companies Act IDZ Regulations
Regional Industrial Development Support Measures Bill New Enterprise Development Bill
Gender & Women’s Empowerment strategy African Economic Development Strategy
STRATEGY 2006 – 2009
Strategic Goals
Legislation and regulation – cont. Consumer Protection Bill Amendments to the Competition Act Corporate Law Reform Bill Technical, Regulatory Framework: Accreditation, Metrology,
Conformity Assessment & Good Laboratory Practice Bill Measurement Standards Bill BBBEE Codes of Good Practice & Co-operatives regulations
will be adopted
STRATEGY 2006 – 2009
Strategic GoalsEnterprise & Industrial Finance One-third of budget in the MTSF period will be utilised to support enterprise Existing Incentive Schemes to be reviewed & aligned with Industrial Policy New Incentive Schemes will be launched incl. schemes to support:-
Co-operative Enterprises Women Owned Enterprises Business Process Outsourcing
Apex Fund to become operational in 2006/07 Finance Agencies to launch new products for small business
STRATEGY 2006 – 2009
Strategic GoalsSupport for the Implementation of the Strategy Establish and participate in forums to ensure alignment within
government Seek to leverage strategic partnerships with relevant
stakeholders Provide increased emphasis on monitoring, evaluation &
impact assessment of the dti and COTTI work to ensure
alignment with the dti objectives Greater focus on recruiting, developing and retention of skills
and capacity
Economic Classification
2006/07
R’000
2007/08
R’000
2008/09
R’000
Current payments
Compensation of employees 300 929 315 205 331 410
Goods and services 468 940 483 851 492 925
Transfers & subsidies 2 887 190 3 148 934 3 493 250
Payment for capital assets 8 853 9 593 9 779
Total 3 665 912 3 957 583 4 327 364
STRATEGY 2006 – 2009
Budgets
STRATEGY 2006 – 2009
Budgets
Budget - 7 year comparison
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
Budget 1,944,315 1,977,185 2,257,075 2,473,336 3,274,965 3,332,556 3,665,912
2000-2001 2001-2002 2002-2003 2003-2004 2004/05 2005/06 2006/07
From 2002/03 to 2008/9, the budget increased at an average of 11,5%
Programme
Budget
R’000 Percentage
Administration 326 800 8,9%
International Trade & Economic Dev. 129 200 3,5%
Enterprise & Industry Development 1 235 000 33,7%
Consumer & Corporate Regulation 146 400 4,0%
The Enterprise Organisation 1 420 000 38,7%
Trade and Investment South Africa 322 300 8,8%
Marketing 86 200 2,4%
Total 3 665 900 100%
STRATEGY 2006 – 2009
Budgets 2006/07
Activities R’000
National Empowerment Fund 409 480
SEDA 171 426
Apex Fund 80 000
Enterprise Development 598 636
BPO 70 000
Film & Television 72 400
IDZ’s 422 012
STRATEGY 2006 – 2009
Budgets 2006/07Contributions of Budget to Key Areas
STRATEGY 2006 – 2009
Structure
Ministry
Office of the DG
Policy co-ordination
International Trade and Economic Development
Enterprise and Industry Development
Consumer and Corporate Regulation
The Enterprise Organisation
Trade and Investment South
Africa
Marketing
19 Agencies
Group Systems and
Support Services
Strategic Goals
•Corporate law amendment Bill For review
•Consumer protection Bill June 2006
•Enterprise Development Bill June 2006
•Intellectual property Amendment Bill August 2006
•Sugar Bill August 2006
•Competition Amendment Bill July 2006
•Lotteries Amendment Bill July 2006
•Accreditation Conformity Assessment Bill April 2006
•Measurement and Units and Standards Bill April 2006
•Standards Bill July 2006
•Compulsory Specifications of Standards Bill July 2006
Legislative Programme
QUESTIONS
&
COMMENTS