Transcript Economic Development Department (EDD)

Economic Development Department
2014/15 Annual Report
Presentation to the National Council of Provinces
27-October-2015
1
Introduction
•The Annual Report of the EDD present
performance against the Annual
Performance Plan
• Tabled in Parliament at the end of
September 2015.
•Highlights a few areas covered in the
Report - not a detailed account of
activities.
2
Context at start and during year
 Annual Report period 1 April 2014 to 31 March
2015.
 Transition between Administrations
 Global context: growth slowed down
 China’s demand for resources declined
 Developed markets growth lackluster
 Energy shortages
 Impact of industrial action
 While, Investor confidence in SA was still positive
3
Context: The commodity boom and growth
• Hence the government’s 9-point
plan 2015/16
Index of mineral prices
iron ore
coal
gold
platinum
1,800
1,635
1,600
1,400
January 1994=100
• The fell of our top four Exports
signalled the end of the commodity
boom
• Make progress on jobs more
difficult
• Sending negative multiplier of the
mining industry on the rest of the
economy
1,200
1,000
800
600
544
472
400
286
200
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
-
209
4
The APP
 The APP provides basis for audit against
pre-determined objectives
 It does not include all the work of the EDD
 As required by the Auditor General, the
tables in the published Annual Report
provide an overview of the number of
achievements and reasons for variation
5
Performance Overview for the 2014/15
Overall Performance Level
Budget Programmes
Total
indicators
Indicators met
against targets
Indicators
exceeded
against
targets
Indicators
not met
against
targets
Economic Policy Development
4
2
2
-
Economic Planning and Coordination
13
5
8
-
Economic Development and Social Dialogue
5
4
1
-
Total
22
11
11
-
 EDD had 154 targets for its frontline work, and achieved 209 deliverables
 For the financial year under consideration, the Department spent 99.7%
of its allocated budget, met all its targets and exceeded its targets for
50% of the indicators included in its Annual Performance Plan (APP) for
2014/15.
 For the year under consideration the EDD and all its agencies received
unqualified audit reports.
6
Economic Highlights: Jobs
405 000

Jobs grew by

Total employment
of 15.5 million by March 2015
 Women’s employment grew by 111 000 (total women in
employment 6.8 million)

The number of jobs
6.2 million)
for youth increased by

Since adoption of the New Growth Path in October 2010, employment
233 000 (total youth jobs:
grew by 1.8 million
7
Other economic Highlights
 GDP is now R3,8 trillion for the year and growth rate was
1.6%
 Investment grew by R47 billion
 Government infrastructure
spending was R254 billion
 Agricultural value add grew by R5 billion or 7.5%
 Manufacturing value add declined by R1.1 billion
or 0.3%
8
EDD interventions for the reporting period
EDD’s focus in this period was on 8 key interventions:
1. Infrastructure
2. Industrialisation and investment
3. Trade measures
4. Competition measures
5. Provincial interventions
6. Social dialogue
7. Coordination
8. Equitable growth
9
Institutional Highlights
 By March 2015, PICC monitored infrastructure
projects spending had reached R1 trillion
 R880 million was received from the Competition
Commission for fines and penalties imposed by the
Tribunal
 39 mergers with employment and other public
interest conditions that were imposed by the
Competition Commission
 ITAC tariff increases on 9 products
 ITAC tariff rebates (reductions) on 7 products
10
Infrastructure & Investment
 EDD monitored spending
patterns across the three
spheres of government
and provided feedback to
Cabinet, Premiers and
Metro mayors through the
PICC
 R 254 billion spent over
the 12 months
 Highest spend yet in SA
 Lays the foundation for
higher growth and
development
11
Intevention 1: Infrastructure
work done ncludes:
Operationalisation
of
the
Infrastructure
Development Act including appointment of
members of governance structures (Secretariat,
Manco and Council)
Monitoring 18 Strategic Integrated Projects (SIPs)
for Cabinet to provide high-quality, credible
information for policy-making
Resulting in 72 progress reports to Cabinet
Tracking projects worth R1 trillion to monitor
spending patterns
12
Infrastructure
 EDD convened and provided assistance to PICC
Secretariat and Manco meetings, including
• meeting packs, documentation and discussion documents on key
issues
• Identifying key blockages for consideration by the PICC
• Developing a records of decisions for Cabinet and follow up of
decisions
• Provided Support for an innovative system:
2016-04-11
the PICC
13
Infrastructure
Maintaining large-scale infrastructure spending
boosts growth and jobs
- 200 000 jobs in PICC-monitored projects
- Substantial gains made for both large projects and at a
community level, though much remains to be done. Examples -
- 160 000 new houses connected with electricity
- Cities building new bus lanes for BRT
- BRT operational in three cities with thousands of users
- Tshwane every bus has free Wi-Fi, useful to students
14
Infrastructure
Examples of work done by EDD on infrastructure includes (cont..):
 Completed project on skills
for infrastructure with DHET
 After obtaining inputs from relevant departments, EDD drafted a
discussion document on
how infrastructure supports
inclusive growth,
with a review of some key trade-offs,
opportunities and risks
 At Dirco’s Heads of Mission Conference on 25 August
2014, the Minister presented a strategic vision on how South Africa’s
missions abroad can support domestic economic development through
efforts with infrastructure and industrialisation
– The focus was on expanding markets for South African products as well as
accessing technology and capital from abroad as appropriate
– The presentation had reference to the National Infrastructure Plan
15
Infrastructure
Examples of work done by EDD on infrastructure includes (cont..):
 Cable and Metal Theft, PICC recommendations on cable and
metal theft were approved by the PICC Council at its 11th December 2014
meeting.
 EDD coordinates and participates in the Presidential
Business
Work group: Infrastructure Technical Task Team.
The work covers the following.
a) Create early visibility of government’s infrastructure build programme
b) Maintaining & upgrading municipal infrastructure
c) Strengthen mechanisms of incorporating and effective execution of
developmental targets in programme and project procurement designs
d) Strengthen / optimise infrastructure procurement systems
d) Unlock private sector investment in and funding of infrastructure
16
Infrastructure
 Provided Support for President’s role as champion on
infrastructure in the African Union which includes
unlocking key corridors, water and energy projects for the
continent
 The President also engaged with global business at the
World Economic Forum meeting in January 2015 in
Davos, Switzerland on African infrastructure.
17
Infrastructure
EDD engages pro-actively
behalf of the PICC
to unblock projects on
 Case study: Hobhouse in Mantsopa in the Free State
– A site visit was conducted by the PICC
– It helped to unblock efforts to finalise a bucket eradication project
– The technical quality of the system requires further work
 Case study: Ngobi in Moretele in the North West
– This is a Presidential Nodal Point Project identified as part of water and
sanitation hotspots under SIP 18 by the PICC
– The PICC mobilised Eskom to connect electricity to boreholes.
– The boreholes have been commissioned and are functional
 Case study: Gibson Bay Wind Farm in the Eastern Cape
– The wind farm will involve an investment of over R2 billion as part of
the renewable energy independent power producer drive
– It required authorisation under the Subdivision of Agricultural Land Act
– The PICC, with support from DAFF, unblocked the application, enabling
the wind farm to go ahead
18
Infrastructure
 Case study: Mokolo Crocodile Water Augmentation Project
Phase 2 (MCWAP2)
- Conditional National Treasury approval for the increase in
the pipeline was obtained.
 Case study” Olifants River Water Resource Development
Programme (ORWRDP Phase 2)
- The directive for ORWRDP Phase 2D and other subsequent
phases has been issued to the National Water Resource
Infrastructure to implement the project and the Trans-Caledon
Tunnel Authority (TCTA ) to provide technical support.
19
Infrastructure
• Promoting transformation: the competition
probe into cartels operating in the
infrastructure space is intended to open the
market to new entrants, including bringing black
construction companies into the infrastructure
mainstream, thus promoting transformation and
economic development.
20
Case Study: Infrastructure & local procurement
Through the PICC, the department supported efforts to localise the
manufacture of components and rolling stock for the National Infrastructure
Plan. New and expanded factories directly supplying components for rolling stock
infrastructure include:
• Thin-film solar experimental plant in Stellenbosch
• Wind-towers plant in Coega
• Large truck factory in Coega, with 450 new jobs
• Factory to assemble and laminate solar panels in Epping
• Truck and bus plant in Pretoria , with 350 new jobs initially
• Factory making solar inverters in Cape Town
• Majority black-owned factory in Blackheath that supplies buses to
municipalities
• Expansion in locomotive-furbishing capacity
• 200 new jobs in Atlantis in a further wind tower plant
21
Intervention 2: Industrialisation and Investment
1. EDD interventions supported the development of opportunities for
industrialisation, higher levels of private investment and
industrial funding and localisation in the economy. These included
- addressing investor meetings and addressing challenges
- supporting efforts to maintain high levels of IDC funding
- supporting localisation and local procurement
- promoting the development of new sectors
- unblocking, fast tracking investment
2. The IDC approved investment projects with private investor partners worth
R36,8 billion with the IDC committing R11,5 billion of its resources
3.sefa’s R1 billion supported the development of small businesses and
cooperatives
22
Case Study: Building renewable energy industry
 Minister issued a
industry
Directive to the IDC
to develop a renewable energy
 IDC invested R14 billion in solar, wind and renewable projects
 During the year: opening of the Kaxu Solar Plant in Pofadder in N Cape
 The plant brings 100 MW of solar energy onto the grid
 By March 2015, South Africa generated 1 730 MW of energy from the sun,
wind and water.
23
Industrialisation and Investment
 Facilitated,
fast-tracked
and/or
unblocked
13
investment initiatives
 Sectors included forestry, agro-processing, biofuels, pulp
and paper, chemicals, textiles, construction, green energy
and steel
 Unblocking included:
•
•
•
•
•
•
•
•
securing land and finalising lease agreements
facilitating access to financing
mobilising trade measures
addressing energy challenges
helping secure pricing that promotes local manufacturing
supporting with social dialogue
measures to deal with illegal imports
fast tracking administrative processes to save jobs
24
Industrialisation and Investment
Examples of Unblocking
1. Potato processing industry: The potato processing
industry was destabilised by a surge in imports. EDD facilitated
interaction with ITAC to fast-track consideration of an
application for increased duty. Based on the evidence before it,
ITAC decided to increase the duty. The IDC offered a loan to a
processing company in the Eastern Cape to expand production to
supply Spur. The result was an expansion of local productive
capacity.
2.
Nestle complained of water and electricity
cuts in Babelegi near Tshwane as a result of cable theft, which led
to R47 million losses in the period from January to 5 March 2014.
EDD convened a meeting of COGTA, the dti and Eskom in July
2014 to discuss the challenges. As a result of the intervention,
mitigation measures were put in place in the area, including better
policing of hot spots.
25
Industrialisation and Investment
Examples of Unblocking
buy-out by Lewis
Furniture of 68 Beares Furnishers (the Lewis offer to
3. Fast-tracked the competition process for the
purchase was time bound). The intervention avoided the liquidation of
these stores and resulted in the saving of 393 jobs, with the potential
for the creation of 126 additional jobs
4. EDD’s intervention facilitated the decision by the Ekurhuleni Metro
Municipality to provide the required energy for the construction of a
R350 million plant by Mpact to recycle plastic bottles
5. Pulp United Company – Resolved a dispute between
the
IDC and the uMhlathuze municipality on the price for the purchase of
municipal land. This resulted in the IDC taking a decision to do a
feasibility study for an investment in a pulp factory valued at US$250
million
26
Industrialisation and Investment
Examples of Unblocking
6
7
8
Facilitated that Hall Longmore, a steel pipe company in KZN, could
secure a competitive price to secure order to manufacture locally
steel pipes for the Greytown water treatment works, which instead
was to be delivered from China.
Subsequent to the successful sales of Lodox Machines to the
Gauteng Provincial Department of Health, EDD assisted Lodox in
finding markets in the other Provinces. EDD introduced Lodox to the
KZN Department of Health. Four Lodox Scanners were sold to the
Provincial Department of Health in KZN.
This initiative has leveraged South African medical technology
developed through the
commercialisation of an IDC
project
27
Industrialisation and Investment
 The Minister engaged with companies in the labour-intensive clothing and textiles
 Engagements took place with both employers and workers at
Trade Core Investments Apparel (TCIA), Colibri, Peter Blond, Impahla Clothing
and House of Monatic
 Focus of engagement
• Assess the impact of IDC and government support in the
sector,
• Identify export opportunities and assess import penetration
• Investment and incentive support by government and its agencies was
R5,1
billion in the sector over the past five years
• Took Action on illegal imports – in three years, government
confiscated R1,8 billion in clothing and textiles imported
illegally into SA
28
Industrialisation and Investment
 The Minister launched the development of a R25-million
design
centre at TCIA in Cape Town, part of a focus on improving fashion
innovation in South Africa
 EDD obtained a legal opinion on the pricing of mineral products
under the MPRDA amendments, which entailed a Ministerial level meeting
with legal advisors as well as engagement with DMR, the dti and NT
 EDD drafted a report for the Presidency on migrant
labour in the
platinum belt and how it relates to workplace conflict, in collaboration
with TIPS and SWOP
 Numerous engagements had taken place Steel,
Finance, Tourism,
Agro-processing, Retail, Telecommunications and
other sectors in order stabilise sectors where required, attract
investment, promote industrialisation and localisation, etc.
 Minister addressed global investors in Davos, London, New York,
Indonesia to share the South African infrastructure and investment narrative
29
Industrialisation: IDC Investment
EDD
provided
oversight
and
strategic guidance to the IDC during
the year through engagements with
Board, management and potential
investors
30
Industrialisation: IDC Investment
IDC highlights in the past year, in tough circumstances
• R11.5 billion approved
• R10.9 billion disbursed
• 20 388 jobs supported
• Approved R5.2 billion for manufacturing industry
• Approved R5.9 billion for black empowered
businesses
• Approved
business
R756 million for women empowered
• R36.8 billion total investment including counterparty investment
31
Institutional Highlights
IDC
highlights
– Investment approvals of R11.5
billion
– Funding disbursements of R10.9 billion
– R5.9 billion in black-empowered and owned companies in 85
transactions
– 20 388 jobs supported
Sefa
highlights
– R1 billion funding approved
– R924 million set aside for youth-owned enterprises over 3
years
32
Industrialisation: IDC Provincial Investment
 IDC investments are situated
across South Africa, providing
local jobs and supporting local
economies.
 Of the R9.7 billion funding
approvals within South Africa,
46% went to transactions in
targeted provinces.
 The funding allocated to these
provinces also accounted for
42% of jobs IDC expects to
create/save.
 Of the priority provinces, the
Eastern Cape is the largest
beneficiary in terms of number
of projects, with 19 projects
that are worth R50 million and
above, across 9 sectors.
33
Examples of IDC projects
 Case study: Greening the Manufacturing
Sector
- Since 2011, the IDC has worked with an
enterprise that produces sports and leisure
wear for an international brand. The company is
South Africa’s first carbon-neutral clothing
company. It has increased its employment from
190 to 431 in the past three years.
- In the 2014/15 financial year the IDC approved
a R2-million facility to be utilised for asset
and working capital for the establishment of new
manufacturing lines.
34
Examples of IDC projects
 Case study: Chic Shoes
- The Minister conducted a site visit to Chic Shoes, a
major shoe factory, and opened its new premises on
16 September 2014, as part of the EDD’s work to
support job creation and evaluate the
impact of government measures.
- The company was started by a black woman in 2004
and now employs 300 workers, with plans to
expand to over 500 in the coming two
years.
- It has received support from the IDC as well as a
competitiveness grant
35
Industrialisation: sefa Investment case study
 EDD provided oversight of sefa for the year under review
sefa highlights
•
•
•
•
R1 billion approved
R1 294 million disbursed
Benefitted 51 460 SMMEs and cooperatives
Approved R437 million to women-owned
enterprises
• Approved R848 million to black-owned enterprises
• Approved R292 to youth-owned enterprises
• Developed a new innovative supplier credit scheme
to increase use of the Khula Credit Guarantee
Scheme
36
Industrialisation: sefa Investment case study
sefa highlights (Transformation)
• 74% of funds disbursed benefitted
black-owned business
• 49% enterprises in rural and periurban areas
• 37% to women-owned businesses
37
Intervention 3: Trade measures
Using trade measures to back
South African manufacturers in
tougher global conditions, through
trade remedies, tariffs, rebates and
policy measures to promote inputs
with a developmental impact/local use
of national inputs
38
Intervention 4: Competition measures
Challenging monopolies and
cartels in the economy through
competition
measures
to
improve the dynamism of local
industries and prevent abuse of
market dominance
39
Intervention 4: Competition measures
Competition measure highlights
• Investigations into cartel activity
• R880 million received from the Competition
Commission for fines and penalties imposed
by the Tribunal
• Dismantling the construction cartel
• Oversight of Funds
• Jobs emphasised in mergers and
acquisitions
• Health care enquiry and retail market enquiry
40
Oversight of Funds
 Walmart Supplier Development Fund
 Afgri Fund
 Agro Processing Competitiveness
Fund
41
An outcome of Competition measures
The Afgri agreement
 Agreement was reached with Afgri as part of the Competition
Commission’s review of a takeover by Agrigroupe, a foreign investor
 The agreement required Afgri to undertake a variety of support measures
for small farmers
 Since April 2014 Afgri has:
– Spent R9,8 million on training to 68 farming entities consisting of
170 people.
– On-lent R14 million to 13 entities from the Land Bank to
smallholder farmers (Afgri assumes risk on the loans)
– Provided 40% discount on storage to 213 farmers who stored
under ten tonnes of grain
– Purchased 14% of its poultry from smallholder
farmers, to whom it provides extension and veterinary services as
well as technical, feed and management support
42
Intervention 5: Working with provinces
Working with provinces to enhance their
capacity and increase their impact on local
economies
Highlights
• Engagement with provinces
• Working with provinces to align provincial
development priorities to NDP and to
prioritise jobs
• MinMecs coordination of work with provinces
• An analysis of employment, migration and
growth trends by province was undertaken
43
Real GDP by province at 2010 Prices
1,200,000
1,000,000
GDP (billions)
800,000
600,000
400,000
200,000
0
Western
Cape
Eastern Cape
Northern
Cape
Free State
KwaZuluNatal
North West
Gauteng
Mpumalanga
Limpopo
2009
363,271
206,749
58,634
143,544
419,444
175,018
905,981
197,503
196,796
2013
406,409
226,071
64,555
157,152
470,341
185,052
1,024,516
215,131
214,161
44
Employment by province since the adoption of the NGP
• Nationally, employment
has increased by 15%
since the adoption of
the NGP in the 3rd
quarter of 2010.
• Gauteng
(650),
Limpopo (357), WC
(267) and KZN (260)
had the largest gains in
employment numbers
over the NGP period.
• Limpopo (38%) and
Mpumalanga
(22%)
accounted
for
the
highest growth rates
since the adoption of
the NGP
Employed, in 000s
Region
Jul-Sep April - June
2010
2015
Change
in 000s
%
change
13 648
15 657
2 009
15
Western Cape
1 990
2 257
267
13
Eastern Cape
1 280
1 366
86
7
Northern Cape
286
297
11
4
Free State
762
798
36
5
2 296
2 556
260
11
806
940
134
17
4 320
4 969
650
15
Mpumalanga
971
1 180
209
22
Limpopo
936
1 293
357
38
South Africa
KwaZulu Natal
North West
Gauteng
45
2016-04-11
Job creation by province
change in 000s
% change
45%
40%
600
38%
35%
500
30%
400
25%
22%
20%
300
17%
15%
15%
13%
200
11%
10%
7%
100
5%
260
209
134
Limpopo
Western Cape
KwaZulu Natal
Mpumalanga
North West
86
36
4%
11
5%
0%
Northern Cape
267
Free State
357
Eastern Cape
650
Gauteng
-
percentage increase
change in employment in thousands
700
46
Working with provinces
• EDD provided strategic support to KwaZulu-Natal,
Mpumalanga and Limpopo at their respective strategic planning
sessions
• EDD helped identify how provincial plans could be better aligned with the
NGP and also take advantage of national programmes, including the
National Infrastructure Plan and the Spatial Development Zones
• The department hosted two small business knowledge network
sessions on unlocking the economic potential of townships in the
North West and Eastern Cape with civil society, government
officials and academics
• The meeting focused on the need to improve the integration of
township enterprises into formal value chains as well as to address
the constraints on their development (infrastructure, market
institutions, commercial and industrial sites)
• The department has received requests to provide capacity building on
township economy initiatives and locations; spatial planning alignment
support; and green economy implementation support.
47
Working with provinces
• EDD assessed five provincial APPs including
Gauteng, KwaZulu-Natal, Eastern Cape, Free
State and Mpumalanga
• The assessments include analysis of growth,
investment and employment trends
• Findings include:
– Most provincial APPs are aligned with the New Growth Path
and the National Development Plan at least conceptually
– They are not yet however aligned with Outcome 4 on
inclusive growth in the new MTSF
– They do not have many practical targets for inclusive growth
– EDD should explore developing some standard KPIs for this
purpose
48
Working with provinces
• In an example of the partnership approach EDD
is developing with the provinces,
• On 29 August 2014 the Minister with the Premier
of Gauteng launched an incubation hub in
Diepsloot
– The hub provides step-by-step support for small
companies, starting with rent-free facilities and business
support services, gradually building up to normal tenancy
in the site.
– It is an interesting example of a private-sector-led initiative
to support small business
– The Minister of Small Business Development and the
Mayor of Johannesburg also participated in the event
49
Working with provinces
• Deputy Minister has led series of engagements with the leadership of
the following provinces Mpumalanga, Free State, Eastern Cape,
Limpopo, KwaZulu-Natal on integrated economic planning and
alignment of provincial economic plans to national economic
development priorities
– These engagements revealed that most of the provincial strategic plans
and Provincial Growth and Development Strategies are beginning to focus
on the national growth and development priorities as articulated in our
NDP and NGP
– The implementation support for provincial and local economic
development remains a critical challenge which EDD has committed to
working with provinces in future
– While the local economic development capacity in the metros is fairly
established, more support required for the districts and local
municipalities.
– EDD is working with our provincial partners to play a bigger role in
supporting economic development initiatives at the local level
50
Working with provinces
EDD developed an integrated approach to supporting small business support across
government to guide the work of agencies reporting to the Minister
 It worked closely with sefa and the IDC to hold roadshows in every province
 The roadshows enabled SMMEs to engage with sefa, seda, IDC, provincial DFIs
and local business chambers to understand their products
 Roadshows were held in Mpumalanga, the Western Cape and Polokwane, and at
the ABSIO Youth Economic Indaba (Milpark)
 The Minister participated in the roadshow in Delft, where he also met with Women
in Construction to discuss opportunities arising out of the National Infrastructure
Plan
 A small business toolkit was produced by EDD and printed for a first-phase pilot
 The Minister convened a small business conference on 7 April 2014 that brought
together hundreds of new or small entrepreneurs to engage with public agencies
 The Minister opened the Shanduka Black Umbrella Enterprise Development
Awards, which facilitate private support for SMMEs, in Cape Town on 9 April 2014
51
Case Study Working with Provinces
 Deputy Minister engagements with provinces and municipalities
 Areas of work included:
• Economic development frameworks
• Alignment of provincial and local economic
development priorities to NDP
• Social accords
• Unblocking constraints to economic
Deputy Minister Madala Masuku, visits Bloemfontein Oct 2014
development at provincial and local levels.
 EDD hosted a conference on “Aligning Economic Planning and
Development across the state”. It:
• re-emphasised need for integrated economic development planning
• agreed on framework to ensure that national policies, strategies and
plans find expression at provincial and local level
52
Intervention 6: Social Dialogue
Supporting social dialogue to strengthen
support for national priorities and build a
broad consensus in addressing key
challenges
 social accords
 Engagements at Nedlac
on the National minimum wage and
industrial conflict
 Work in clusters to contribute to the development of
sectors and employment
 Workplace dialogue
53
Social Dialogue: Social Accords
 EDD has contributed to monitoring and implementation
 EDD completed its Draft Annual Report on the Progress
towards the Implementation of the Green Economy Accord.
 The report showed significant progress in achieving government
targets on the Green Economy Accord, including.
• By March 2015 the IDC had provided funding to the Green
Energy Sector of R14bn, facilitating the creation of an
additional 7 733 jobs
• Approximately 500 000 Solar Water Geysers had been
rolled out since the start of the SWH programme – the majority
of which were low pressure systems
• Designation of SWG of 70% local content was done in
August 2014
54
Social Dialogue
 EDD contributed to monitoring and implementation of the
Youth Employment Accord, including:
• Briefing provinces on progress of the Youth Employment
Accord and explaining how they can provide information
required for monitoring
• EDD successfully organised the report back in the
Western Cape on for the Presidential Youth
Indaba, with over 400 delegates attending
 In addition, a report on the implementation of the other
social accords for the fourth quarter 2013/14 was
completed.
55
Social Dialogue: Cluster
 Case Study - facilitating
funding and operations
to create jobs
– EDD facilitated funding for and sits on the steering
committee of the Western Cape Furniture Cluster, which
brings together small furniture producers to improve training
and productivity.
– The Western Cape Furniture Quarterly Cluster Initiative
Steering Committee Meeting was held on 24 June 2014.
– The Cluster manages a training programme. Phase 1
commenced in June 2014 with a total of 147 people from
19 companies. It focused on compliance training which
included Occupational Health & Safety and Employment
Equity.
– The major output of the cluster process will be provision of
on-the-job skills training in the furniture industry for 200
workers.
56
Social Dialogue
 The Minister launched the Mitchells Plain Skills Centre
in April, following technical support and premises supplied
through EDD intervention.
• The centre will provide training in upholstering, baking,
gardening and entrepreneurship
• It also provides an enterprise incubator and co-ops training
• It has capacity to train 2
840 learners and support
32 businesses
 Concluded Partnership Agreements
with the Following
Partners:
1.TUGO Builds Pty(Ltd) – A construction toy company which had been
granted funds from the Support Programme for Industrial Innovation.
EDD signed an MOU to support social dialogue activities to promote
economic development, innovation, equity and reduce workplace
conflict.
57
Social Dialogue
Partnership Agreements with the Following Partners (cont.):
2. Conver–Tek Pty (Ltd) – EDD signed an MOU with the polymer
company to assist in establishing a forum for regular engagement.
3. Elungileyo Solutions Pty (Ltd) – The company is a Structural and
Thermal Construction Company. EDD signed an MOU with the company
to promote social dialogue activities to promote economic development,
innovation and reduce workplace conflict.
58
2016-04-11
Social Dialogue Case Study: Local Chicken Production
 EDD identified cooperative small scale farmers’
preferences.
 EDD arranged for Umthombo Agri-business Institute
to offer training on improving indigenous chicken
production processes and flock management
 This training was free of charge to small scale
farmers in Nkandla, KZN
 About 55 farmers, most of whom were members of
co-operatives attended the training.
 EDD developed “The Indigenous Chickens UserFriendly Guide for Small Scale Famers” together
with the Developing Poultry Farmers
 EDD paid for packaging and printing
 The guide has also been translated from English
and into Venda, Sepedi and Zulu and published
59
Intervention 7: Coordination
Coordinating efforts in the state to enhance outcomes
for the economy as a whole and catalyse projects
EDD participated in a 
number of forums that
aimed
to
improve
coordination of economic 
strategies across the state.
These
included
participation
in
the
Industrial Policy Action
Plan ( IPAP) , the Outcome 
4 processes, the Economic
Sector, Employment and
Infrastructure Development
Cluster ( ESEID Cluster )

The EDD contributed in the development of the five
point plan of the Electricity Technical Implementation
War Room to address challenges in the energy sector.
In 2014/15 the EDD undertook a range of activities
focused on coordination of government economic
development efforts and implementation of the NGP
and catalysing inclusive economic growth, participation
and job creation.
Reports were compiled against the targets set for
Outcome 4; Decent employment for inclusive growth,
and these reports were submitted to Cabinet in
collaboration with the dti and the National Treasury.
The reports noted key trends, tracked progress in
terms of employment, equity, growth and investment
as well as the resulting opportunities.
60
Coordination of Minmecs
Coordination

signing of an MOU between EDD, DPME
and the Nelson Mandela Bay Metro for the Red tape
The
reduction plan on selected city by-laws and approval processes had been
agreed to in principle.


The Metro also approved the inclusion of SEIAS (on which EDD
staff provide training for various government institutions) in the City’s Policy
Development Framework. This should assist in reducing red tape
and promote the ability of the Metro to identify growth opportunities for
enterprises.
In partnership with the University of Johannesburg, a regulatory entities
capacity building programme was developed and training
provided. A range of entities attended the training including ICASA, the
Competition Commission, Nersa, National Treasury, the Ports Regulator and
the Department of Energy. The training addressed areas including economics,
finance and law for regulators. The close out report was finalised during the
2014/15 financial year.
61
Intervention 8: Equitable growth
Supporting equitable
growth through integration
of marginalised groups into
the economy
62
Equitable growth
Conference on “Manufacturing-led growth for employment and equality”
 EDD hosted a conference on “Manufacturing-led
growth for employment and equality.” This is in line
with the EDD’s mandate to encourage a broad discussion on how
to foster inclusive growth
 The conference heard presentations on the theme from a number
of leading academics, officials and stakeholders,
including
– Professor Gabriel Palma, an internationally renowned Latin
American expert on industrial policy
– The EU Chief Economist, Dr Francesco Caballero-Sanz
– South African economists
63
Equitable growth
 The department hosted two
small business
knowledge network sessions on unlocking the
economic potential of townships in the North West and the
Eastern Cape with civil society, government officials and
academics
- The meeting focused on the need to improve the integration
of township enterprises into formal value chains as well as to
address the constraints on their development (infrastructure,
market institutions, commercial and industrial sites)
- Participants identified the main economic opportunities as
participating in the supply chains of the mining houses in the
North West and mohair producers in the Eastern Cape. The
sessions then explored ways to access these supply chains.
- Following the network sessions, the department has received
requests to provide capacity building on township economy
initiatives and locations; spatial planning alignment support;
and green economy implementation support.
64
Equitable growth
On 29 August 2014 the Minister with the Premier of
Gauteng launched an incubation hub in
Diepsloot.
– The hub provides step-by-step support for small
companies, starting with rent-free facilities and
business support services, gradually building up to
normal tenancy in the site.
– It is an interesting example of a private-sector-led
initiative to support small business
– The Minister of Small Business Development and
the Mayor of Johannesburg also participated in the
event
65
Equitable growth
 EDD compiled a progress report on BBBEE with
specific reference to the impact of transformation
policy on Ownership and Procurement. The authors
estimated that:
- R600 billion worth of BEE transactions had taken place up
to 2013
 EDD held a BBBEE workshop with stakeholders from
government, private sector and state agencies on the 12th
December 2014 on the impact of transformation policies
66
Equitable growth
• IDC youth funding approvals increased 73% from the
previous financial year to to R158 million
• sefa youth empowered businesses approvals
increased 86% from the previous financial year to
R292 million
• sefa disbursed R259 million to 403 women owned
smme’s
• IDC funding for women empowered businesses grew
from R71 million in 2011 to R756 million in 2015
67
ILO – social economy
 EDD developed a partnership
with the International Labour
Organisation (ILO) on
implementing social economy
initiatives.
 An MOU was signed, which
includes profiling and
determining priority sectors for
the Social Economy
 Some of the key issues in the
MOU
• Partnering on hosting a
global conference on the
social and solidarity
economy
• Establishment of a National
Steering Committee on the
Social Economy
• Determine Priority Sectors
68
Equitable growth
 EDD held a research round table on township economies on 24
February 2015. This was convened in partnership with the SA Cities
Network and attended by government institutions, research organisations
and academia. The round table took stock of existing research on
township economies as a basis to support policy and planning. Research
was presented and discussion was held a variety of topics
including:
• Townships as domestic tourism destinations
• The growth of property markets and property prices in an area in
Gauteng
• Informal banking and saving systems operated by foreign owned stores
and how they acted as a catalysts for growth of those operations
69
2016-04-11
2015/16 strong emphasis
 The IMF’s latest global growth forecast in October 2015 has
downgraded growth from the earlier July 2015 estimate by a
further 0.2%
 Declining commodity prices have been cited as a key constraint
on growth as have crisis legacies in some advanced economies
2015/16 sdtrong emphasis
 The 9 Point Plan, announced in SONA,
 Partnerships between government, the private sector and
organised labour need to be strengthened in the period ahead
70
THANK YOU
SIYABONGA
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