Presentation to the Select Committee
on Trade and International Relations
the dti’s 2013/14-2015/2016 Annual Performance Plan
Date: 08 May 2013
Director-General
Lionel October
1
CONTENTS
the dti’s Vision, Mission and Strategic Goals
Key achievements 2012/13
Key interventions for 2013/14
Allocated resources
Challenges
2
VISION
“A dynamic industrial, globally competitive South African
economy, characterised by inclusive growth and development,
decent employment and equity, built on the full potential of all
citizens”
3
STRATEGIC GOALS
 Facilitate transformation of the economy to promote industrial
development, investment, competitiveness and employment
creation.
 Build mutually beneficial regional and global relations to advance
South Africa’s trade, industrial policy and economic development
objectives.
 Facilitate broad-based economic participation through targeted
interventions to achieve more inclusive growth.
 Create a fair regulatory environment that enables investment, trade
and enterprise development in an equitable and socially
responsible manner.
 Promote a professional, ethical, dynamic, competitive and
customer-focused working environment that ensures effective and
efficient service delivery.
4
CORE PROGRAMMES AND CLUSTERS
Industrial Development – the development of policies and
strategies that promote sector competitiveness, growth, job creation
and efficient administration of support measures.
Trade, Investment and Exports – the strengthening trade and
investment links with key economies and fostering African
development, including through regional and continental integration
and development co-operation in line with the New Partnership for
African’s Development (NEPAD).
Broadening Participation - the development of interventions and
strategies that promote enterprise growth, empowerment and
equity
Regulation – the development and implementation of coherent,
predictable and transparent regulatory solutions that facilitate easy
access to redress and efficient regulatory services for economic
citizens.
Administrationeffective
co-ordination
of
departmental
programmes and provision of necessary support for efficient
implementation.
5
KEY ACHIEVEMENTS 2012/13: IPAP
6
Industrial Development
Achievements on IPAP 2 (cont…)
•
4 sectors have been designated for local production.
•
National Industrial Participation Programme (NIPP) - Adopted by Cabinet and
fully aligned with the Competitive Supplier Development Programme (CSDP)
•
The 12I Tax Incentive has supported large manufacturing investments worth
R6.8 bn, with 1,115 jobs expected to be created
•
Manufacturing Competitiveness Enhancement Programme (MCEP) - Launched
in May 2012; 189 applications have been approved for grants valued at R4,2bn
•
R5.5 bn committed for investment in the Green Economy
•
Localisation in the renewable energy generation programme
Key Achievements
7
Industrial Development
Achievements on IPAP 2 …cont
•
Finalisation of the transition from the Motor Industry Development Programme
(MIDP) to the Automotive Production and Development Programme (APDP)
•
People-Carrier Automotive Incentive Scheme (P-AIS) launched
•
Clothing and Textiles Competitiveness Programme (CTCP) has stabilised
sectoral production and employment – supporting 49,888 jobs
•
Aquaculture Development and Enhancement Programme (ADEP), an incentive
scheme to increase investments in the sector, enhancing competitiveness and
growing employment
•
Review of port tariffs for manufactured exports
Key Achievements
8
OVERVIEW OF the dti’s
KEY PLANNED INTERVENTIONS
OVER 2013/14
9
KEY INTERVENTIONS – INDUSTRIAL
DEVELOPMENT
Upscale industrial policy by tabling the annual rolling Industrial Policy
Action Plan (IPAP) to Cabinet and produce quarterly implementation
reports.
Three (3) sector specific action plans developed to influence and
respond to the changing economic environment to enhance
manufacturing potential.
Complete and submit designation templates to the National Treasury for
two (2) subsector/sectors for local procurement.
Two (2) key research projects will be undertaken to facilitate development
of interventions to expand value-added activities in existing and new
sectors of the economy including beneficiation.
10
KEY INTERVENTIONS – INDUSTRIAL
DEVELOPMENT
Finalisation and Implementation of the Special Economic Zone (SEZ)
Act
 Special Economic Zone (SEZ) policy and Bill approved by Cabinet and
endorsed by Parliament
Enhanced technological competencies by supporting 1 350 students and
700 researchers via the Technology and Human Resources for Industry
(THRIP).
Support Programme for Industrial Innovation (SPII) implemented by
creating 20 new projects valued at R43m
11
12
KEY INTERVENTIONS – INDUSTRIAL
DEVELOPMENT
Tool-making apprentice programme
 Support 385 students enrolled for the Tool Making Apprentice
Programme
Industrial upgrading programme
 Support 220* workers trained through the industrial upgrading
programme
940 enterprises approved to participate in the Export Marketing and
Investment Assistance (EMIA) scheme
51 companies supported
Programme (WCP)
through
the
Workplace
Challenge
*There is a misprint on the target of 20 on the Annual
Performance Plan 2013-2016. It should read 220.
13
Industrial Development Incentives
Description
Industrial Financing
Automotive Incentive Scheme
(AIS)
Passenger Automotive
Incentive Scheme (PAIS)
Business Process Services
(BPS)
Film and Television
Planned 2013/14
Number of firms/projects
Potential jobs supported
supported
Investment
leveraged
25
550
R1,6bn
5
-
R500m
8
3000
R400m
65
3000
R1,8bn
12 I tax allowance
10
2 200
R10bn
Critical Infrastructure
Programme (CIP)
Manufacturing Competitiveness
Enhancement Programme
(MCEP): Production Incentive
12
4 000
R6bn
300
2 500
-
14
KEY INTERVENTIONS – TRADE,
INVESTMENT and EXPORTS
Africa regional development programme implemented-progress
report to be produced on implementation of agreed programme and
projects for priority development areas in SACU, SADC-FTA and
SDI infrastructure projects.
Conclusion of Economic Partnership Agreement (EPA) trade
negotiations with the European Union (EU), Southern African
Customs Union (SACU) India Preferential Trade Agreement (PTA),
Southern African Development Communities (SADC)- East African
Community (EAC)- Common Market For Eastern and Southern
Africa (COMESA) Free Trade Agreement (FTA) –Tripartite-Free
Trade Agreement (T-FTA): Status report to be produced on
progress towards conclusion of trade negotiations.
15
KEY INTERVENTIONS – TRADE,
INVESTMENT and EXPORTS
Increased manufactured exports under EMIA by increasing the
value of exports to R900 m
Investment facilitation in targeted sectors- R50bn
16
Provincial Spread: Manufacturing Incentives – past
performance 2012/13
North West:
12I: 1
AIS: 1
CIP: 2
Gauteng:
Limpopo:
12I: 4
AIS: 7
CIP: 0
12I: 0
AIS: 0
CIP: 0
Provincial Spread
Mpumalanga:
12I: 0
AIS: 0
CIP:2
Northern Cape:
12I: 0
AIS: 0
CIP 0
Kwa Zulu Natal:
12I: 3
AIS: 8
CIP 0
Free State:
12I: 1
AIS: 0
CIP 0
Western Cape:
12I: 1
AIS: 1
CIP:1
Eastern Cape:
12I: 2
AIS: 12
CIP: 1
17
Provincial Spread: Services Incentives – past
performance 2012/13
North West:
BPS: 0
Film: 0
Gauteng:
Limpopo:
BPS: 4
Film: 46
BPS: 0
Film: 0
Provincial Spread
Mpumalanga:
BPS: 0
Film: 0
Northern Cape:
BPS: 0
Film: 0
Kwa Zulu Natal:
BPS: 5
Film: 2
Free State:
BPS: 0
Film: 0
Western Cape:
BPS: 3
Film: 22
Eastern Cape:
BPS: 0
Film: 0
18
Provincial Spread: Competitiveness Incentives – past
performance 2012/13
North West:
MCEP: 1
EMIA: 35
Gauteng:
Limpopo:
MCEP: 69
EMIA: 626
MCEP: 4
EMIA: 17
Provincial Spread
Mpumalanga:
MCEP: 4
EMIA: 47
Northern Cape:
MCEP: 1
EMIA: 4
Kwa Zulu Natal:
MCEP: 31
EMIA: 107
Free State:
MCEP: 2
EMIA: 19
Western Cape:
MCEP: 61
EMIA: 167
Eastern Cape:
MCEP: 16
EMIA: 62
19
KEY INTERVENTIONS – BROADENING
PARTICIPATION
seda Technology Support Programme (stp)
 Disburse R119 m to seda for the establishment of new incubators and
support of existing incubators; and support of Small Micro and Medium
Enterprises (SMMEs).
 Performance monitoring reports on seda technology programme to be
produced.
Implementation of Co-operative Amendment Act

Approval of business case for the establishment of the Co-operative
Development Agency with phased-in implementation.

Approval of business case for the establishment of the Co-operative
Tribunal with phased-in implementation .
20
KEY INTERVENTIONS – BROADENING
PARTICIPATION
Implement the National Strategic Framework on Gender and
Women Empowerment
 National Strategic Framework on Gender and Women
Empowerment to be submitted to Cabinet for approval and a
phased-in implementation report to be produced
Isivande Women Fund
 Approve 18 new projects
Implement B-BBEE Amendment Act and Revised B-BBEE Codes
of Good Practice
 Approval of B-BBEE Amendment Act
 Approval of revised B-BBEE Codes of Good Practice
21
KEY INTERVENTIONS – BROADENING
PARTICIPATION
1 560 enterprises approved for
Development Programme (BBSDP)
Black
Business
Supplier
Finalisation and implementation of Informal Sector Strategy
Finalisation and implementation of Youth Enterprise Development
Strategy (YEDS)
22
Provincial Spread: Broadening Participation
Incentives – past performance 2012/13
North West:
BBSDP: 34
CIS: 19
EIP: 16
ISP: R 0
Gauteng:
Limpopo:
BBSDP: 429
CIS: 63
EIP: 217
ISP: 5
BBSDP: 196
CIS: 63
EIP: 35
Provincial Spread
ISP: 0
Mpumalanga:
BBSDP:84
CIS: 18
EIP: 30
ISP: 0
Northern Cape:
BBSDP: 7
CIS: 6
EIP: 15
ISP: R 0
Kwa Zulu Natal:
BBSDP: 185
CIS: 23
EIP: 111
ISP: 4
Free State:
BBSDP: 30
CIS: 28
EIP: 22
ISP: 1
Western Cape:
BBSDP: 71
CIS: 15
EIP: 135
ISP: 0
Eastern Cape:
BBSDP: 114
CIS: 79
EIP: 76
ISP: 4
23
Broadening Participation Incentives
Planned 2013/14
Number of firms/projects
supported
Potential jobs supported
Investment
leveraged
Enterprise Incentive
Programme (EIP):
Manufacturing Incentive
Programme (MIP)
235
4 200
R3,5bn
Aquaculture Development
Enhancement Programme
(ADEP) - (New Incentive)
Cooperative Incentive Scheme
(CIS)
10
220
R75m
375
-
-
50
540
R800m
Description
Incubator Support Programme
(ISP) (New Incentive)
24
KEY INTERVENTIONS - REGULATION
Impact assessment of regulation on business and economic
citizens
 Two (2) Regulatory Impact Assessment Reports
recommendations for approval on Liquor and Gambling.
with
Policies, Bills and Regulations to enforce fair business practices
Develop:
 Two (2) policies for approval on Intellectual Property and Gambling
Act.
 Four (4) Bills for approval on National Credit Act, Lottery, Liquor and
Business Acts.
 Two (2) regulations for publication.
25
KEY INTERVENTIONS – ADMINISTRATION
Attract, develop and retain professional and skilled officials
 Reduction of the vacancy rate to 7%.
 Reduction of the staff turnover rate to 7%.
 Employment of People With Disability increased to 2.9% .
 Employment of Women in senior management positions increased
to 43.8% .
Creditors’ payments made in
requirements made within 30 days.
accordance
with
legislative
Service Delivery Improvement Plan - Report produced on the
implementation of 2012-2015 Service Delivery Improvement Plan
(SDIP).
26
KEY INTERVENTIONS – ADMINISTRATION
Public Awareness Platforms and Events
 Conduct 12 programme-focused publications to improve the
public awareness.
 Conduct 14 multimedia awareness campaigns.
Conduct 80 events, outreach engagements and exhibitions
 20 Events
 40 Outreach engagements
 20 Exhibitions
27
“taking the dti to the people” –planned
campaigns
2013/14
Gauteng: 7
Limpopo: 7
North West: 2
Provincial Spread
Mpumalanga: 6
Northern Cape:
3
Kwa-Zulu Natal: 5
Free State: 3
Western Cape: 2
Eastern Cape: 5
28
ALLOCATED BUDGET
29
Medium Term Expenditure Framework
2013/14
2014/15
2015/16
Medium-Term Estimates (R ’000)
Programmes
Medium-Term Expenditure Framework (MTEF)
Administration
690,1
720,6
748,3
International Trade and Economic
Development
138,1
R 150,7
156,9
Broadening Participation
968,3
1 004,0
1 054,9
1 606,5
1 771,3
2 049,8
256,2
248,2
258,3
Industrial Development: Incentive
Administration
5 543,1
5 645,7
6 704,1
Trade and Investment South Africa
369,7
417,4
432,4
9 572,6
9 958,0
11 404,7
Industrial Development: Policy
Development
Consumer and Corporate
Regulation
TOTAL FOR PROGRAMMES
30
Alignment of the Budget to the Strategic Goals
Strategic Goal
Alignment with Govt Outcomes
Budget Allocation
per Strategic Goal
R’000
1. Facilitate transformation of the economy to
promote industrial development, investment,
competitiveness and employment creation.
Decent employment through
inclusive growth
2. Build mutually beneficial regional and global
relations to advance South Africa’s trade,
industrial policy and economic development
objectives.
Create a better South Africa, a
better Africa and a better world
3. Facilitate broad-based economic participation
through targeted interventions to achieve more
inclusive growth.
Decent employment through
inclusive growth
1 135 784
4. Create a fair regulatory environment that
enables investment, trade and enterprise
development in an equitable and socially
responsible manner.
Decent employment through
inclusive growth
256 157
5. Promote a professional, ethical, dynamic,
competitive and customer-focused working
environment that ensures effective and efficient
service delivery.
An efficient, effective and
development- oriented public
service and an empowered, fair
and inclusive citizenship
690 079
6 982 181
508 379
31
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.
32
THANK YOU
QUESTIONS ?
33