Transcript Economic Development Department 2013/14 Annual Report

Economic Development Department
2015/16 Annual Report
Presentation to the Select Committee on Economic and
Business Development
DATE 8 November 2016
Tabled at Select Committee
1
Introduction
•The Annual Report period is 1 April 2015
to 31 March 2016.
•The Annual Report sets out the details of
activities undertaken and performance of
the Department against the Annual
Performance Plan.
2
Introduction
•EDD spent 99.8% of its allocated budget
and met its performance target from 23
indicators included in the APP.
•Planned target for the year were 164 and
these were achieved and an additional
68 targets were met.
3
Outline of Presentation
Economic
context
EDD’s objective’s
underpin
6 I’s
Highlights
of EDD’s
work
Integration
Investment
Financial
Performance
& AG Report
Innovation
Inclusion
Org Structure
& HR
Infrastructure
Industrialisation
APP
4
Context: Aggregate Jobs in 2015/16
• Total jobs at the end of 2015/16 were 15,6 million
• Employment grew by 204 000
• Jobs held by women 6,8 million
• Youth jobs 6.2 million
• GDP growth 1.3% (2015 calendar year)
• Investment grew by 5.7% (2015 calendar year)
• Total infrastructure spend R 269 billion
• Manufacturing value add R 475.5 billion (2015
calendar year)
• Agricultural value add R 85.1 billion (2015 calendar
year)
5
The South African Economy in 2015
• Real GDP grew by 1.3% in 2015
• Growth has slowed in 2014 and 2015 and is lower
than needed to achieve developmental outcomes
Real GDP % Change
GDP in 2015:
R 4 trillion
2011
2012
2013
2014
2015
3.3
2.2
2.3
1.6
1.3
• 3 industries: agriculture, utilities and manufacturing, contracted in 2015
Real % Growth Rate by Industry, 2015
6
Context: South African Economy in 2015
2015 inward FDI:
R22.6 billion
2015 total value of trade: R
Includes
2.1 trillion
Exports R1 trillion
• 2014 and 2015 net FDI trends were negative
• 2015 FDI inward value is the lowest for the period 2008-2015
• Both exports and imports declined as share of GDP from 2014 to 2015
Inward, Outward and NET FDI 2008-2015 Current R’ billion
7
Context: South African Labour Market 2008-2015
8
The 6 I’s
• We need to create more jobs and raise growth through:






Infrastructure,
Industrialisation
Innovation
Investment
Inclusion
Integration
And, work more effectively through the institution-building
and implementation.
• This is how we implement the NDP and the Nine Point Plan.
9
EDD Strategic Objectives Underpin the 6 I’s
The 6 I’s
Infrastructure
Innovation
Integration
Investment
Inclusion
Industrialisation
EDD Strategic Objectives in Support of Job Creation, Industrialisation and Social
Inclusion
Administration
Coordination of jobs drivers &
implementation of NGP
Social dialogue & social
accords
Coordination of
infrastructure
development
Promoting investment,
industrial funding &
entrepreneurship
Promoting competition,
trade and economic
regulation
This presentation highlights work on key areas covered in
the Annual Report and is not a detailed account of activities.
10
Outline of Presentation
Economic
context
EDD’s objective’s
underpin
6 I’s
Highlights
of EDD’s
work
Integration
Investment
Financial
Performance
& AG Report
Innovation
Inclusion
Org Structure
& HR
Infrastructure
Industrialisation
APP
11
Infrastructure – PICC Objectives
To create jobs and grow the economy government spent
R269 billion infrastructure during the reporting period
PICC monitored 312 infrastructure projects
Its objective: Implement the Infrastructure Development Act to:
• Monitor & report on infrastructure projects to PICC structures
& Cabinet
• Enhance planning frameworks & alignment in government
• Accelerate regulatory approvals
• Promote localisation, skills development, BBBEE (including
women), youth employment, small business, green economy
and rural development
• Provide for the maintenance of assets
• Advance anti-corruption measures
12
Infrastructure - Highlights
PICC highlights from the year:
R269 billion spent
During the reporting period on the infrastructure
investment program. This is the largest in South Africa’s
history and for any country on the African continent.
R1 billion per
working day
Spent on infrastructure projects – boosting growth and
jobs.
191 142 jobs
In PICC-monitored projects
312
PICC monitored infrastructure projects
13
Infrastructure - Highlights
PICC highlights from the year:
72
30
8
7
3
Progress reports to Cabinet
Council, Secretariat and MANCO meetings
Cabinet decisions implemented
Augmentation of bulk water supplies to seven Provinces
Improved transport links in three Provinces
14
Infrastructure - Legislation
Criminal Matters Amendment Bill
EDD worked with lawyers, the NPA,
PICC Secretariat, Security Cluster and
the Department of Justice to identify
proposed legislation to address cable
and metal theft on the public
infrastructure programme.
This resulted in a Criminal Matters
Amendment Bill which has stricter
provisions for the granting of bail, and
the sentencing of offenders (a
minimum of 15 years).
15
Infrastructure - Unblocking
In
the last year,
22
successful
unblocking interventions were made
by PICC
BRICS New Development Bank (NDB):
EDD and PICC worked with NDB to
facilitate the approval of a USD $180
million loan from the NDB for Eskom to
fund transmission lines.
Significance of Work: Unblocking
implementation of infrastructure projects
and building relationship with NBD
9
• Environmental Impact
Assessment
8
• Water Use Licence
Application
4
1
22
• Projects
• Air Emissions Licence
• Total
PICC worked with DWS &
DEA to facilitate the
granting of various SIP
Water Use Licences and
Environmental
Authorisations
16
Infrastructure - Unblocking
WULA
Kusile Station: Geotech
Studies
Dedisa Grass field 400kv
Transmission line
EIA
Kendal Power station,
Mpumalanga Province
Kusile power station,
Mpumalanga Province
PROJECT-SPECIFIC
AIR EMISSION
LICENCE (AEL)
AEL: Medupi Power
Station
Bophelong HospitalElectrification
Mzimvubu water project – Roads EDD Minister engaged with
private sector on the
Wittekleibosch Diep Rivier
opportunities and requirements
132kv
for financing long term
infrastructure projects.
Mzimvubu water scheme Duvha Minerva Line
Electricity Generation and
Deviation WUL
associated infrastructure
Amendment
Mzimvubu water project Ministry engaged SA project
Ntabelanga-Laleni
conjunctive
managers in the private and
Rockdale
scheme
and
associated
public sectors on the needs of
substation and 400kV
infrastructure
National Infrastructure Plan skills
loop in power lines
requirements. (SACPCMP)
Royal Elangeni Substation Kathu Solar Park
NMPP Spill Basin 2
Firegrove substation
Majuba continued ash disposal
facility
Camden ash disposal facilities
extension
Saldanha SEZ
NDB loans for transmission lines
17
Infrastructure - Mergers
Vodacom & Neotel
 Vodacom sought to buy Neotel in order to obtain control of its spectrum that is
used to carry cell-phone call, data and email traffic and to acquire its landlines for
telephone services.
 Competition Commission recommended that the transaction be approved,
subject to a two-year delay in the use of the spectrum.
 Minister commissioned a study by an independent expert on the implications of the
merger.
 Access to Neotel’s spectrum would, in the opinion of the experts, have
entrenched Vodacom’s dominance in the market and given it an insurmountable
advantage against competitors.
 It would have limited opportunities for new entrants in the market. This could have
had a harmful effect on consumers, competitors and other businesses.
 Together with the Minister of Telecommunications and Postal Services, the EDD
objected and requested that the spectrum either be available on fair terms to all
competitors or be returned to the regulator; or that the transaction be prohibited.
 Objections resulted in Vodacom first offering a new proposal and then
subsequently withdrawing the transaction and its attempted acquisition of Neotel.
Significance of Work: The outcome will help to ensure competition on this sector.
18
Outline of Presentation
Economic
context
EDD’s objective’s
underpin
6 I’s
Highlights
of EDD’s
work
Integration
Investment
Financial
Performance
& AG Report
Innovation
Inclusion
Org Structure
& HR
Infrastructure
Industrialisation
APP
19
Innovation
• EDD introduced a producer of an innovative product to
reduces the risk of fires in informal dwellings, to a major
retailer: The company manufactures an ethanol based gel
product to reduce fuel costs and emissions from one plate
burner stoves. The company is 100 % black owned
manufacturer of Chafer dish cooking gel. They employ 8 people
and are based in Silverton, Pretoria. Their product is an import
replacement.
• Cape Ray (Pty) Ltd received funding from IDC to develop
the breast cancer diagnostic machine. This machine is
undergoing clinical trials and has an advantage of being
implemented in rural clinics hence reducing the diagnostic costs
and times. It uses 3D imaging and takes multiple X-ray images
from different angles.
20
Outline of Presentation
Economic
context
EDD’s objective’s
underpin
6 I’s
Highlights
of EDD’s
work
Integration
Investment
Financial
Performance
& AG Report
Innovation
Inclusion
Org Structure
& HR
Infrastructure
Industrialisation
APP
21
Integration
• This report highlights EDD’s activities on integration
including work on trade and trade policy.
• Focused work on trade promotes jobs through
integration with a specific focus on regional integration.
• Total value of trade (exports plus imports) in 2015
was R 2.1 trillion – of that exports were R1 trillion and
imports were R1.1 trillion.
• Exports make up 31% of SA’s GDP, and imports are
equivalent to 32% of SA’s GDP.
22
Integration - Trade Overview
 Top exports to rest of Africa
in 2015 are: petroleum, trucks,
coal, iron and steel products
and diamonds
 Top imports from Africa in
2015 are: crude oil, petroleum
gas, food mixes, sugar,
electricity.
Top 5 Countries Exported to
and Share of Total Export Value
1. China (9.1%)
2. USA ( 7.6%)
3. Germany (6.6%)
4. Namibia (5.1%)
5. Botswana (5.1%)
Top 5 Countries Imported from
and Share of Total Import Value
1. China (18.3%)
2. Germany (11.3%)
3. USA (7.0%)
4. India (5.0%)
5. Japan (3.7%)
23
Integration - Africa
 IDC took equity in Alpha-Min-BISIS Mining
 This is tin mining company in Eastern DRC
 The project was viable as tin is now a substitute
for lead in electronic devices resulting
significantly higher prices for tin.
 The project is managed by South African
mining engineers.
 USD 60 million of capital will be spent in South
Africa for equipment and engineering services.
24
Integration – BRICS
BRICS Competition Conference (10-13 November 2015, Durban
ICC)
 Co-hosted a BRICS Competition Conference together with the
Competition Commission on “Competition and Inclusive Growth”.
 First major conference globally that placed employment at the heart of
competition policy.
 The conference brought together 508 delegates from competition
agencies, practitioners and stakeholders from BRICS and other
African countries as well as experts from the US and EU, led to
rich discussion on the specific challenges faced in the global
south.
Significance of Work: Strengthened Economic Regulators within the
BRICS Group and in the rest of Africa.
25
Outline of Presentation
Economic
context
EDD’s objective’s
underpin
6 I’s
Highlights
of EDD’s
work
Integration
Investment
Financial
Performance
& AG Report
Innovation
Inclusion
Org Structure
& HR
Infrastructure
Industrialisation
APP
26
Investment
Objective: Interventions to support the development of
opportunities for continued industrialisation, higher
levels of private investment and industrial funding and
localisation in the economy. These included:
1.
2.
3.
4.
5.
6.
Addressing investor meetings and related challenges
Supporting efforts to maintain high levels of IDC funding
Supporting localisation and local procurement
Promoting the development of new sectors
Unblocking and where possible fast tracking investment
Stabilizing distressed manufacturing companies
27
Investment - IDC
EDD provided oversight and strategic guidance to IDC during the
year through engagements with the Board, management and
potential investors.
Highlights are:
•
•
•
•
R14.5 billion approved of 180 transactions
R11.4 billion disbursed
15 272 jobs supported
Approved R4.9 billion for black empowered businesses
including black industrialists
• R970 million for youth empowered enterprises
• Approved R1.2 billion for women empowered business
28
Investment - IDC
Two important agreements signed:
 R10 billion pledge by the China Construction Bank
initiated through an EDD Ministerial engagement during
China state visit.
 Beijing Automotive International Group (BAIC) to
establish an automobile plant in South Africa, which,
when it meets its feasibility study criteria, will be the first
new light passenger assembly plant to be built in
South Africa in more than 40 years, with an initial
capacity to produce about 50 000 cars, trucks and Sport
Utility Vehicles (SUVs).
Significance of Work: Increased foreign direct investment,
boosting auto assembly and component suppliers capability
and, deepening BRICS investment.
29
Investment – enterprise examples
1. Micawber 803 (Pty) Ltd (Noodle factory – Cape Town – Western
Cape): Received grant funding to improve its competitiveness and
now supplies to Massmart and Shoprite
2. New Film Studio - Sky Rink Studio: Supported in Johannesburg to
strengthen the country’s appeal as a film-making location
3. Bulk Water Transfer Pipes - Tender, Sedibeng Water SoC,
Northern Cape: Rewritten to ensure that tender specifications were
aligned to local pipe manufacturing capacity.
4. Ashton Canning Company Ltd, Langeberg – Western Cape:
Supported to obtain sufficient electricity during power shortages to
maintain operations. Intervention saved canning operations, fruit
produce and crops and 2 000 seasonal jobs.
 Significance of Work: Unblocking, stimulating local manufacturing
and job creation.
30
Investment - Provincial Interventions
Focus areas:
• Align provincial development priorities
to:
• National Development Plan
• Nine Point Plan
• Prioritise jobs
• Coordinate work with provinces
31
Investment – Mpumalanga Case Study
 3 interventions undertaken that supported
employment, empowerment and development
including supporting the Province to develop
plans and align them to the MTSF.
 Support provided to Mpumalanga Provincial
Government Economic Cluster Departments
to identify priority projects and sectors that
have a high impact on economic growth,
poverty alleviation and job creation, has now
been taken to municipal level.
 EDD assisted with planning and participation
in the Nkangala District Municipality’s
Investment Summit and ensured that targeted
projects for investment were clear in terms of
their economic impact (job creation, growth and
poverty alleviation) and alignment between
municipal plans as well as the Revitalisation of
the Mining Towns Programme.
Snapshot of Mpumulanga
Population(2016): 4.3 million
GDP (2014): R 286 bn (7.5% of
SA GDP)
Employed: 1 160 000
Unemployment rate (Q4
2015/16): 29.8 %
32
Investment – Limpopo Case Studies
Workshop with DST on 9 Point Plan (16 November
2015) in Mpumulanga and Limpopo. The interventions
were in response to the challenges of unemployment and
low economic activity in the communities.
Outcomes: Mpumulanga
• Intervention with eMalahleni
local municipality
(Nkangala district) contributed to reviving the local
economic development forum. The work is continuing
with the municipality and EDD on planning for the
Investment Summit in the Nkangala district in April
2016.
Outcomes: Limpopo
• Intervention with Ba-Phalaborwa local municipality
(Mopane district) involved work done by IDC to
support investment in industrialisation and local
economic development
• The investment was to increase capacity, using
technology improvements,
of an iron production
plant and support Ba-Phalaborwa cooper mining plant
upgrade.
Snap Shot of Limpopo
Population (2016): 5.8 million
GDP:
R 272 billion in 2014 (7.1% of SA
GDP)
Employed:
1 355 000
(Q4 2015/16)
Unemployment Rate : 18.3% (Q4
2015/16)
Agriculture employment:
115 000
Agro processing employment:
32 000
33
Investment- Free State Case Study
Stakeholder Forum on 29 February 2016, Bloemfontein,
to ensure impact of industrial funding in Province
 Participants from Free State Department of Economic,
Small Business Development, Tourism and Environmental
Affairs, Industrial Development Corporation (IDC), Small
Enterprise Finance Agency and National Empowerment
Fund.
 Constraints to investment were:


Lack of alignment of criteria or standards set by DFI’s particularly
when evaluating business plans and
Long timeframes for funding approval.
Outcome:
 Agreement that DFI’s, EDD and the dti to participate in the
existing provincial Business Assessment Committee (BAC)
which monitors progress of applications and unblocks
project funding challenges.
Snapshot of Free
State
Population (2016):
2.9 million
GDP (2014): R 190
billion (5.0% of SA
GDP)
Employed: 790 000
Unemployment rate
(Q4 2015/16): 33.9
%
34
INPUTS FOR THE ANNUAL REPORT
Priority sectors per province
Black Industrialist
Province
Priority sectors
Source of information
Limpopo
Agriculture and agro-processing; Mining and
Beneficiation(PGM’s ,iron and steel); Tourism.
Limpopo Development Plan
and Draft APP 2017/18
North West
Agriculture, Culture and Tourism , plus tributary
sectors(renewable energy, mining, mineral
beneficiation, ICT), plus township economies
North West Development Plan
, draft APP 2016/17
Western Cape
Oil and gas service industry, Manufacturing (agroprocessing), visitor economy ,Renewable energy
plus ICT, Financial and professional services
(Including BPO)
Draft APP 2017/18
Eastern Cape
Manufacturing(agro processing, capital, auto sector)
,Green Economy, Tourism, Oceans economy(oil and
gas)
Provincial Industrial
Development Strategy and
Draft APP (2017/18
Mpumalanga
Tourism, Agriculture and Forestry,
manufacturing(agro-processing, mineral
beneficiation), Mining
Draft APP20-17/18,
Mpumalanga industrial
development Plan
INPUTS FOR THE ANNUAL REPORT (NCOP)
Priority sectors per province
Black Industrialist
Province
Priority sectors
Source of information
Northern Cape
Green Energy , Agriculture, Manufacturing (Agroprocessing), Tourism and Oceans economy
Draft APP 2017/18
Gauteng
Tourism, Manufacturing(auto and allied sectors),
Green and Knowledge economies and township
economies.
Draft APP 2017/18 and 16/17
KwaZulu-Natal
Agriculture (Agri Hubs), Tourism, Oceans
Economy(Maritime), green economy , automotive focusing on industrial hubs and the aerotropolis
KZN Development Plan and
Draft APP 2017/18
Free State
Manufacturing(agro-processing), Mining , Tourism
Township economy.
Draft APP 2016/18
Provincial Employment, Q2 2016
% Share of Total Jobs,
Q2 2016
% Share of Total
Unemployed, Q2 2016
37
Provincial Employment: What Happened in 2015/16?
Change in Employed and Unemployed, 2015/16
Job Gains / Losses
Increase / Decrease
in Unemployed
Limpopo
146 000
- 2000
Western Cape
95 000
22 000
North West
12 000
- 1000
Eastern Cape
9 000
- 24 000
Mpumalanga
6 000
35 000
Northern Cape
5 000
- 38 000
Free State
- 12 000
55 000
Gauteng
- 16 000
170 000
KZN
- 31 000
- 27 000
38
Provincial Employment: What Happened in 2015/16?
Top 3 Job-Creating Industries, by Province, 2015/16
1.
2.
3.
Limpopo
Government (64 000)
Trade (31 000)
Construction (19 000)
Western Cape
Business Services (66 000)
Trade (47 000)
Construction (23 000)
North West
Mining (17 000)
Trade (13 000)
Transport (13 000)
Eastern Cape
Agriculture
(23 000)
Government
(17 000)
Pvt. Households
(3 000)
Mpumalanga
Agriculture (17 000)
Government
(16 000)
Mining (9 000)
Northern Cape
Construction (10 000)
Manufacturing (6 000)
Government (5 000)
Free State
Private Households (24 000)
Government (2 000)
/
Gauteng
Government (90 000)
Construction (39 000)
Business Services (36 000)
KZN
Trade (83 000)
Government (35 000)
Pvt. Households (3 000)
39
Provincial Employment: What Happened in 2015/16?
Top 3 Job-Loss Industries, by Province, 2015/16
1.
2.
3.
Limpopo
Agriculture (- 8000)
Transport (- 1000)
/
Western Cape
Agriculture (-24 000)
Manufacturing (-21 000)
Utilities (- 5000)
North West
Government (- 7000)
Business Services (- 6000)
Utilities (- 6000)
Eastern Cape
Business Services (- 18 000)
Manufacturing (-12 000)
Construction (- 8000)
Mpumalanga
Manufacturing (-14 000)
Business Services (-12 000) Utilities (-11 000)
Northern Cape
Mining (-10 000)
Trade (- 8000)
Utilities (- 2000)
Free State
Business Services (- 14 000)
Manufacturing (-12 000)
Agriculture (-10 000)
Gauteng
Pvt. Households (- 74 000)
Trade (-55 000)
Manufacturing (-33 000)
KZN
Manufacturing (- 57 000)
Construction (- 42 000)
Agriculture (-23 000)
40
Western Cape
Biggest
employment gainer
in last 12 months
was Manufacturing
with 44 000
additional jobs
Biggest
employment loser
in last 12 months
was Trade with
34 000 lost jobs
Biggest
employment gainer
in last 6 months was
Private Households
with 6 000
additional jobs
2017-03-21
Biggest
employment loser
in last 6 months
was Agriculture
with 28 000 lost
jobs
41
Eastern Cape
Biggest
employment gainer
in last 12 months
was Agriculture
with 16 000
additional jobs
Biggest
employment loser
in last 12 months
was Trade with 33
000 lost jobs
Biggest
employment gainer
in last 6 months was
Manufacturing with
15 000 additional
jobs
2017-03-21
Biggest
employment loser
in last 6 months
was Trade with
42 000 lost jobs
42
Kwa-Zulu Natal
Biggest
employment gainer
in last 12 months
was Trade with
33 000 additional
jobs
Biggest
employment loser
in last 12 months
was Construction
with 42 000 lost
jobs
Biggest
employment gainer
in last 6 months was
Private Households
with 24 000
additional jobs
Biggest
employment loser
in last 6 months
was Government
with 48 000 lost
jobs
Employment by Sector for KZN for Q2 2015, Q4 2015 & Q2 2016
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Community
and social
services
Trade
Manufacturing
Finance
Private
households
Jun-15
Construction
Dec-15
2017-03-21
Transport
Agriculture
Utilities
Mining
Jun-16
43
North West
Biggest
employment gainer
in last 12 months
was Trade with
23 000 additional
jobs
Biggest
employment loser
in last 12 months
was Business
Services with 27
000 jobs lost
Biggest
employment gainer
in last 6 months was
Trade with 25 000
additional jobs
Biggest
employment loser
in last 6 months
was Mining with
33 000 lost jobs
Employment by sector for NW for Q2 2015, Q4 2015 & Q2 2016
250,000
200,000
150,000
100,000
50,000
0
Community
and social
services
Trade
Mining
Finance
Private
households
Jun-15
Dec-15
2017-03-21
Construction
Manufacturing
Agriculture
Transport
Utilities
Jun-16
44
Gauteng
Biggest
employment gainer
in last 12 months
was Business
Services with 44
000 additional jobs
Biggest
employment loser
in last 12 months
was Transport with
50 000 lost jobs
Biggest
employment gainer
in last 6 months was
Business Services
with 16 000
additional jobs
2017-03-21
Biggest
employment loser
in last 6 months
was Trade with
82 000 lost jobs
45
Mpumalanga
Biggest
employment gainer
in last 12 months
was Construction
with 19 000
additional jobs
Biggest
employment loser
in last 12 months
was Manufacturing
with 20 000 lost
jobs
Biggest
employment gainer
in last 6 months was
Agriculture with 13
000 additional jobs
2017-03-21
Biggest
employment loser
in last 6 months
was Government
with 15 000 lost
jobs
46
Limpopo
Biggest employment
gainer in last 12
months was
Government with 44
000 additional jobs
Biggest
employment loser
in last 12 months
was Agriculture
with 22 000 lost
jobs
Biggest
employment gainer
in last 6 months was
Trade with 22 000
additional jobs
2017-03-21
Biggest
employment loser
in last 6 months
was Transport with
12 000 lost jobs
47
Outline of Presentation
Economic
context
EDD’s objective’s
underpin
6 I’s
Highlights
of EDD’s
work
Integration
Investment
Financial
Performance
& AG Report
Innovation
Inclusion
Org Structure
& HR
Infrastructure
Industrialisation
APP
48
Inclusion – Public Interest
 28 mergers with employment and other public
interest conditions that were imposed by the CC.
Some of which are:
 Telkom SoC Ltd and Business Connexion Group Ltd
(Employment: restriction on the number of job losses)
 Hebei Iron and Steel Group Co Ltd and Duferco International
Trading
Holding
SA
(Employment:
moratorium
on
retrenchments)
 Sibanye Platinum Ltd and Aquarius Platinum Ltd
(Employment: restriction on retrenchments)
 Sibanye Platinum Ltd and Rustenburg Mines Ltd
(Employment: restriction on retrenchments)
49
Inclusion – Public Interest
In the 2015/16 financial year, the Competition
Commission imposed employment related
merger conditions resulted in the saving of 7 857
existing jobs and the creation of 3 137 new jobs.
However, 1 399 jobs were lost in mergers reviewed
during this period.
Net number of jobs created and saved was 9
595.
50
Inclusion - Mergers
AB InBev acquisition of SABMiller - Activities in reporting period
 Two largest beer brewers globally are AB InBev (Belgium) and SAB
Miller (UK).
 During 2015, AB InBev made an offer to take control of SAB Miller. In
scope, it would be one of the largest global mergers ever and by far the
largest merger in SA corporate history.
• The Ministry actively participated in the merger negotiations with the
objective to safeguard South African jobs and additional investment
in upstream and downstream activities.
• AB Inbev committed to a R 1 billion fund to support emerging
businesses.
 Significance of Work: The public interest intervention in this reporting
period is to protect jobs and ensure investment in both upstream and
downstream activities in the brewing industry.
 Note: This mergers are also boost to investment and industrialisation
51
Inclusion - Mergers
Merger of three Coca-Cola Bottling Plants – Activities in reporting
period
 In the case of the merger of three bottling operations for Coca-Cola to form
the largest bottling companying Africa, the EDD’s engagement with the
parties contributed to commitments on employment and localisation
of the purchase of production inputs as well as a new Fund to support
emerging farmers.
 The Ministry actively participated in the merger negotiations with the
objective to safeguard South African jobs and additional investment in
upstream and downstream activities.
 Coca Cola committed to employment, localisation and to set up a fund for
emerging farmers.
Significance of Work: The public interest intervention is to protect jobs and
ensure investment in both upstream and downstream activities in the
agriculture sector
Note: This mergers are also boost to investment and industrialisation
52
Inclusion - Mergers
AFGRI Agreement – Activities in reporting period
 EDD’s engagement with merger parties resulted in the establishment of a
R90 million fund for emerging farmers when AgriGroupe acquired AFGRI Group
in February 2014.
 Key public interest results achieved during the report period are:
‒ R28 million of the R60 million of the farmer development programme
being spent training 98 farming entities from Danhouse, Hammanskraal,
Krugersdorp, Mamelodi, Marble Hall, Maubane and Rust-de-Winter.
‒ Around 254 members benefitted from this training.
‒ In addition, 255 micro farming entities (that is farming less than 100
hectares) were supported.
‒ R10.4 million of the R30 million for projects was spent on projects including
13 educational centres, eight poverty alleviation projects, water and food
security at eight schools and nine employee community initiatives.
‒ Eleven farming entities have taken up the Land Bank facilities to the value of
R29.6 million. Lastly, storage discounts of R42 000 have been used.
Significance of Work: To protect jobs and ensure investment in both upstream and
downstream activities in the agriculture sector
53
Inclusion - Social Dialogue
Objective: To support social dialogue to strengthen
support for national priorities and build a broad
consensus in addressing key challenges
Focus areas:
 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
54
Inclusion - Social Accords
 EDD contributed to monitoring and implementation of the Youth
Employment Accord, including:
• Cabinet Memorandum completed on progress on the
implementation of the Youth Employment Accord (YEA). The
Accord was signed by Government and its social partners on
18 April 2013.
 The report highlighted the following achievements on the YEA since the
signing to Q2 2015:
• Youth employment increased in 8 provinces
• Provinces with the highest increases in the number of youth
employed since the YEA were Limpopo, Gauteng, Western Cape
and North West
• Youth unemployment decreased in 6 provinces
• Provinces with the highest decline in numbers of unemployed
since the YEA are Mpumalanga, KZN and Western Cape
55
Inclusion - Social Economy
Global Academy on Solidarity and
Social Economy (SSE)
 EDD hosted a Global Academy on
Solidarity and Social Economy in
Johannesburg from 27 to 31 July
2015 with the International Labour
Organisation (ILO) and lead on a
number
of
policy
discussion
sessions during the Academy.
 120 participants attended including
international participants, from 42
countries and 4 continents.
There is no globally accepted
definition for the “social
economy”. ILO defines it as
including:
• enterprises & organisations
(cooperatives, mutual benefit
societies, associations,
foundations & social
enterprises)
• producing goods, services &
knowledge
• Pursuing both economic and
social aims and fostering
solidarity.
56
Inclusion - Social Economy
A Memorandum of Understanding between EDD and the ILO
was signed in a previous reporting period, to promote cooperation
on the development of the social economy in SA.
Work done during this reporting period:
• EDD had engagements with the Government of Flanders and
ILO to close an agreement to develop a policy framework for the
social economy.
• Government of Flanders committed to €368 616 (R5,8
million) towards the development of the project.
• EDD will implement project with technical assistance of ILO and
financial contributions from the Government of Flanders.
• The project is expected to be implemented over the next 3 years,
from 2016 to 2019.
57
Inclusion - Equitable Growth
Surveys on township enterprises
EDD conducted surveys on 28 township
enterprises to ascertain their real challenges on the
ground and to develop interventions in support of
township enterprises.
The survey focused on township enterprises that
have received both financial and incentive
support from Government and Development
Finance Institutions, and its purpose was to
measure the impact of sefa, IDC and NEF
Funding.
58
Inclusion - Equitable Growth
Township Business Training Workshop
EDD in partnership with City of Tshwane and Hand-In-Hand
Southern Africa (UN funded NPO) hosted a Township
Business Training Workshop in Mamelodi on the 29th and
30th September 2015. 65 beneficiaries were trained in the
following:
 Business Marketing
 Finance
 Self Help Groups and Networking
Participants received certificates of competence in Financial
Literacy and Business Marketing Management in November
2015 in an official ceremony.
59
Inclusion - Entrepreneurship
 Indaba on social entrepreneurship held in the Free State
from 31 August 2015 to 02 September 2015 and attended
by 300 participants from social entrepreneurs, policy
makers, academics and civil society.
 Outcomes:
• Access to funding for social enterprises remains a challenge.
• To entrench social entrepreneurship as part of the curriculum in
schools (primary and high school level).
• Skills development is key in building and sustaining social
enterprises.
• Community engagement is critical in establishing strong support and
relations in driving social entrepreneurship and community buy-in.
• Leadership and excellence were emphasised as fundamental
attributes in building successful and impactful social enterprises.
60
Inclusion - Entrepreneurship
• The Indigenous Chicken
Booklet which is meant to assist
rural small scale chicken
farmers has now been
translated to Tshivenda.
• 3 000 copies have been
produced which will be
distributed to Provincial and
Metro Economic Departments
61
Inclusion - Entrepreneurship
Training in Broiler Breeder Management
EDD facilitated training for two young ladies by South
African Poultry Association (SAPA) from Lochvaal
Farm, who aspire to be chicken broiler breeder farmers,
to acquire skills in Broiler Breeder Management.
The Broiler Breeder Management Training was a
combination of course work as well as practical (e.g.
dissecting chickens, cracking different types of eggs,
weighing chickens, etc).
The training was funded by DAFF and SAPA.
62
Outline of Presentation
Economic
context
EDD’s objective’s
underpin
6 I’s
Highlights
of EDD’s
work
Integration
Investment
Financial
Performance
& AG Report
Innovation
Inclusion
Org Structure
& HR
Infrastructure
Industrialisation
APP
63
Industrialisation - Legislation
Amended Competition Act
 EDD conducted significant research and consulted on
proposed amendments to the Amended Competition Act.
 A Memorandum was produced for the President as a
result of the work undertaken, on 1 May 2016, the
government gazetted a Presidential Proclamation
that brought into effect certain sections of the
Competition Amendment Act.
 It makes it a criminal offence for directors or
managers of a firm to collude with their competitors
or fix prices, divide markets among themselves or
collude in tenders or to acquiesce in collusion.
Significance of Work: If found guilty of anti-competitive
behaviour, directors expose themselves to the risk of up to
10 years in jail.
64
Industrialisation - Excessive Pricing
Workshop (23 March 2016)
 EDD convened a workshop on excessive pricing with economic
regulators to address the abuse of market power through competition
actions by assessing excessive pricing in order to improve and
streamline economic regulation.
 Economic regulators that participated included the Competition Commission,
Competition Tribunal, National Energy Regulator (NERSA), Independent
Communications Authority of South Africa (ICASA), as well as the Centre for
Competition, Regulation and Economic Development (CCRED) and Genesis
Analytics.
Significance of Work:
 Regulators would coordinate activities, and to share experiences, knowledge
and best practices to mitigate against excessive pricing.
 Deepen the development of a common approach by regulators on what
constitute economic value of a product or service in order to address the
interpretive difficulty in the concept of excessive pricing.
65
Industrialisation - Coordination
Objective: Participate in coordination 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:
• Industrial Policy Action Plan (IPAP), Inter-Ministerial
Committee (IMC)
• Outcome 4 activities in the Economic Sector, Employment
and Infrastructure Development Cluster ( ESEID Cluster)
and War Room on Electricity
66
Industrialisation - The Work of ITAC
In the period under review:
• The Ministry managed the appointment of six new commissioners and reappointed three serving commissioners to form a new ITAC Commission.
• Amended tariff regulation regulations
• Amended export control regulations
ITAC activities finalised during the period:
• 6 products had tariff increases
• 5 products had tariff rebates
• 2 anti dumping duties investigations finalised
and duties imposed (Cement and Wheelbarrows)
• Safeguard duties imposed (Hot rolled steel)
• 17 188 import permits issued
• 14 657 export permits issued
• Legal support for ITAC decisions
• Tariff investigative regulations amended
Tariff Increases on galvanised/coated
and painted steel, large bore pipes,
polyurethane pre-polymers, wire rod
and reinforcing bar, structural steel,
semi-finished steel, steel plates, cold
rolled steel and steel sections
Significance of Work: Stability to steel
industry and other manufacturers.
Tariff rebates onbare panels for raised
access flooring, components used in
manufacture of electricity meters,
knitted pile polyester fabrics for
manufacture of furnishing articles,
acrylic sheet used acrylic sanitary ware)
and temporary rebates of full antidumping duty bone-in cuts (poultry)
imported from USA,.
Significance of Work: Stability and
certainty to manufacturers
67
Industrialisation - Trade Regulations
Amended Tariff Investigation Regulations
• EDD:
– Reviewed and gazetted the amended Tariff Investigation
Regulations.
– Initiated a process to increase capacity of inspectorate at ITAC.
• The Minister consulted widely on changes to the Tariff
Investigation
Regulations
and
after
extensive
discussions between the Minister, the Department and
ITAC, changes were made to the Regulations to ensure
improved implementation thereof.
• Funding of R 4 million was provided for the four
inspectors to be employed over a two year period
68
Industrialisation - Trade Case Study
SA Metal Group (Pty) Ltd
 SA Metal Group (Pty) Ltd, one of the largest scrap
dealers in South Africa, was refused export permits to
export scrap metal from South Africa by ITAC
 As a result it brought a court application to have the
decision set aside and substituted with a decision that
granted it export permits
 The Minister and ITAC opposed the application and
successfully defended the price preference system in
the Western Cape High Court in the court action
brought by the SA Metal Group
Objective of Work: Support the local industry and
promote beneficiation and value addition.
69
Industrialisation - Trade Case Study
Steel Industry
 Key challenge facing SA was effect of the global over-supply of steel production on local
companies
 A balance has to be maintained between securing primary steel manufacturing capabilities in
South Africa and avoiding ruinous price increases on downstream producers
 In response to the challenges, EDD in collaboration with the dti and stakeholders in the
sector developed a comprehensive package of measures to support South Africa’s steel value
chain
 Key interventions included:
o Ministerial meetings with stakeholders and establishment of inter-governmental task team
on a developmental price for steel
o An increase in the rate of customs duty to 10% implemented for 10 primary steel products:
Semi-finished steel, steel plates, cold-rolled steel and steel sections
o Engagement on a set of principles for flat steel pricing in SA that is priced appropriately to
ensure that steel-dependent industries are competitive while at the same time ensuring
that the upstream steel mills remain sustainable
o On-going measures to support better access to domestic scrap metal including the
continued implementation of the Price Preference System
o Measures to increase tariffs to provide improved support for downstream sectors
Significance of Work: To achieve stability of the steel value chain
70
Industrialisation - Trade Case Study
Furniture Sector
 ITAC introduced a rebate provision for knitted pile polyester fabric
used for the manufacture of certain furnishing articles
 The rebate provision provides for a rebate on certain fabrics not
manufactured domestically to enable home textile manufactured
to import intermediate inputs at free of duties.
 The company employs 36 employees and an additional 31 on
short term contract
Significance of Work: To achieve stability of the value chain in
furniture manufacturing
71
Outline of Presentation
Economic
context
EDD’s objective’s
underpin
6 I’s
Highlights
of EDD’s
work
Integration
Investment
Financial
Performance
& AG Report
Innovation
Inclusion
Org Structure
& HR
Infrastructure
Industrialisation
APP
72
Annual Performance Plan
 The Annual Performance Plan (APP)
provides basis for the annual audit against
pre-determined objectives
 It does not include all the work of the EDD
 The tables in the published Annual Report
provide an overview of the number of
achievements and reasons for variation
73
Annual Performance Plan: Overview
Overall Performance Level
Budget Programmes
Total
indicators
Indicators
met against
targets
Indicators
exceeded
against
targets
Indicators
not met
against
targets
Administration
2
2
0
-
Growth Path and Social
Dialogue
6
1
5
-
Investment, Competition
and Trade
15
4
11
-
Total
23
7
16
-
 EDD had 164 targets for its frontline work, and achieved
232 deliverables
74
Organisation Structure
 EDD continues to review its organisational
structure and will facilitate alignment
between the approved structure and the
reporting model.
 A draft structure has been submitted to
the DPSA for quality assurance and
consultations will begin in the third
quarter of 2016.
75
Human Resources: Employment Profile
76
Human Resources – vacancies
Staffing model uses 5 groups of staff to achieve the EDD objectives
1. Staff in EDD against posts on the establishment
2. Staff in EDD in addition to establishment
3. Staff employed through IDC for dedicated PICC work
4. Staff employed via other public entities for PICC work (eg SIP coordinators)
5. Staff on establishment of EDD entities (IDC, CC, CT, ITAC)
Staffing numbers 2015/16 – using top 3 categories
Total funded posts: 140
Staff employed per establishment posts: 116
Vacancy rate: 17%
Staff including additional to establishment: 118
Vacancy rate: 16%
Staff including on PICC work at IDC: 128
Vacancy rate 31 March 2016: 8,5%
Vacancy rate 30 June 2016: 6%
Vacancy rate: only staff against
establishment posts
2014/15
2015/16
Q1 2016/17
26%
17%
15%
Vacancy rate: with all staff available
to EDD (Wits and PICC core): 6%
Funding for staff
2016/17 R94m (2% reduction) funding about 118 staff at current average cost
2017/18 R91m funding, which will place pressure on existing staff numbers.
77
Staff turnover
2014/15: 22%
2015/16: 18%
1.
2.
3.
4.
5.
Human Resources
The Department implemented a staffing model that permitted
mobilisation of resources as required, using permanent
appointments, secondments of staff and using staff from other
agencies.
These measures have enabled the Department to deliver on its
strategic objectives through responsive and appropriately
resourced project teams.
EDD commissioned work through public institutions and
universities using Memoranda of Understanding (University of
Johannesburg – 9 October 2015).
The MoU has sourced additional intellectual expertise to
complement the role of EDD staff.
Fiscal constraints will require a further re-engineering of the
staffing model.
78
Financial Performance: Overview
• For the year under review EDD spent 99.77% of the
allocated budget as compared to 99.72% in 2014/15
• Under-spending has reduced from 0.28% to 0.23% in
2015/16.
• This constitutes a reduction of 0.05%.
79
Financial Performance: Per Programme
Programmes
2015/16
2014/15
Annual
Budget Expenditure
Annual
Budget Expenditure
Variance
Variance
R'000
R'000
R'000
%
R'000
R'000
R'000
%
83 223
83 144
79
0.09
88 077
87 419
658
0.75
0.42
22 284
22 042
242
1.09
Administration
Growth Path
and Social
Dialogue
Investment,
Competition
and Trade
27 889
26 705
1 184
774 666
773 884
782
0.10 586 500
585 452
1 048
0.18
Total
885 778
883 733
2 045
0.23 696 860
694 912
1 948
0.28
80
Financial Performance Per Economic Classification
Programmes
2015/16 (%)
2014/15 (%)
Variance (%)
Compensation of Employees
99.83
98.86
0.97
Goods & Services
96.25
97.54
-1.29
Departmental Agencies
100 .0
100 .0
0
Public Corporations
100.0
100.0
0
0
100.0
-100
100.0
100.0
0
100
0
100
99.77
99.72
0.05
Non-profit Institutions
Households
Payment for Capital Assets
Totals
81
Financial Performance: Revenue
Description
Sales of goods and services other than capital
assets
Fines, penalties and forfeits
2015/16
2014/15
R'000
R'000
35
85
0
0
Interest, dividends and rent on land
50 278
50 237
Transactions in financial assets and liabilities
Total
(17)
50 296
45
50 367
EDD no longer reports on penalties collected by the Competition Commission in line with
reporting requirements reflected in the Accounting Manual issued by OAG.
1. In 2015/16 R676 million was received from Competition Commission for fines and
penalties imposed by the Competition Tribunal which is no longer recognised as
Departmental Revenue. This was paid to the National Revenue Fund.
2. In 2014/15 R880 million was received and paid over to National Revenue Fund.
3. Dividends are received from Industrial Development Corporation
82
Transfers - agencies
1.
2.
3.
4.
5.
6.
Sefa appropriation was reduced from R406m in 2015/16 to R204m in
2016/17. The reason: the budget in 2015/16 included a final sum from
the Economic Competitiveness Support Programme, which was a special
grant that expired in that year.
Competition Commission and Tribunal have reserves accumulated in
part from filing fees that they charge, which were used to defray costs in
addition to budget.
For the Commission, a significant part of the higher 2014/15 Budget was
as a result of special allocations for Market Inquiries.
ITAC spent money from their reserves, in addition to their budgetary
allocation.
IDC transfers were for the special capacity it has created for the PICC
and not for IDC investments
Tighter controls will be put in place to address concerns raised by the
AGSA and FFC Reports in respect of public entities for transfer of monies
83
Auditor–General Report: Outcome
The Department obtained an
unqualified audit opinion
84
Auditor–General Report: Minister Meeting
Auditor-General (AG) drew attention to the APP predetermined objectives, as well as financial and
management gaps to be addressed.
Minister and EDD met with the AG on 26 July and 5 August
2016 to discuss the pre-determined objectives.
AG highlighted the need for the Department to ensure that:
1. Programme 2: Growth Path and Social Dialogue
important targets are more specific and measurable and
indicators be better defined.
2. Programme 3: Investment, competition and trade
important indicators are better defined.
85
Auditor-General Report
The Department acknowledged the concerns relating to financial controls
and systems contained in the final Audit report. Remedial actions have
been put in place.
However, there were concerns regarding the findings on predetermined
objectives. In considering the feedback from the AGSA, the following
serves as context:
1. Nature of the department:
– It is not a line-function Department but one that seeks to align the work of
other departments and agencies to national policy frameworks.
2. Nature of its role in the economy:
– Reactive on economic challenges and proactive on policy
– Cannot always anticipate products and challenges ahead of time and thus
need to have a flexibly-phrased set of KPIs.
– Not a Department that builds schools or disburses subsidies and has a more
complex function.
86
Example Programme 2: Green economy
• Old KPI 27: Number of interventions to grow the Green economy and/or
reports on the implementation of the Green Economy Accord
• New KPI 5: Support the development of green economy and jobs through
implementing the Green Economy Accord
• Targets on KPI 5: Initiatives to support local production and/or diffusion of
green technologies
• AG concern that “Initiatives” cannot be clearly identified. The required level
of performance cannot be measured
• Dictionary meaning of initiatives is ‘an act or strategy intended to resolve a
difficulty or improve a situation; a fresh approach to something’
• Initiatives and interventions can have similar meaning, yet no concern raised
in previous audit on the use of ‘intervention’.
87
Example: Green economy
• Actuals:
– Product 1: Fashion industry Imbizo that resulted from Ministerial engagement
with industry and which covered: case-studies of new technologies showing
reduced company energy consumption and costs; Eskom load-shedding
schedules and reducing impact on industry; IDC highlighted funding of energyefficient technologies; sock manufacturer provided feedback on steps to retool
– Product 2: Departmental evaluation and Ministerial approval of a foreign
investment by a Polish recycling company in collecting plastic waste, in East
London, creating 3 000 jobs
– Product 3: Shift of an energy farmer to renewable energy, facilitated by the
Department
• Each of these actions completed by the Department refer to commitments in the
Green Economy Accord; the initiatives are each capable of being evaluated
• Product 1 came about because of the sudden, unexpected energy crisis in early
2015
• Product 2 a result of an investment opportunity that required evaluation and
approval.
88
Auditor-General Report – Response of Minister: Pre-determined
Objectives Example KPI 20
APP 2014/15
• Old KPI 21: Number of Ministerial oversight engagements with ERBs per year – 6
• Old KPI 22: Evaluation reports on jobs targets achieved by …Competition
Commission and Competition Tribunal - 4
– Problem is tick-box without outcome as the focus.
– To overcome tick-box approach with limited assessment of impact EDD
redesigned KPI’s for APP 2015/16
APP 2015/16
• New KPI 20: Strategic engagement to support the strengthening of economic
regulators through capacity-building, administrative efficiency and consolidation,
where needed
– To enhance its SMART component, the annual target is a report/initiative
comprising one capacity building initiative and one review of capacity and role of
regulators
– Product 1: BRICS Conference which helped to build capacity of SA regulators
– Product 2: Research review of capacity of regulators
– Product 3: A formal report with recommendations on training and a skills audit
89
Auditor-General Report Response of Minister: Predetermined Objectives Example KPI 21
APP 2014/15
• Old KPI 21: Number of Ministerial oversight engagements with ERBs per year – 6
• Old KPI 22: Evaluation reports on jobs targets achieved by the Competition Commission and
Commission Tribunal - 4
– Problem is tick-box without outcome as the focus
– To overcome tick-box approach with limited assessment of impact EDD redesigned KPI’s
for APP 2015/16
APP 2015/16
• New KPI 21: Ensure Competition Authorities address abuse of market power and support
employment, industrialisation and development objectives
– To enhance its SMART component, the annual actions are: 2 Reports on Strategic Action
by the Competition Authorities
– Report1 done by EDD: R250m agro-processing fund evaluation
– Report 2 done by EDD: R90m AFGRI Fund evaluations
• Examples of what was done in 2015/16 are:
– Vodacom/Neotel merger: R7 billion transaction
– Coke bottling plants: Committed to R800m fund plus 7 500 job opportunities protected for
three years; fridge-space opened for 117 000 stores; Appletiser localisation and 20% BEE
– ABInBev takeover of SAB Miller: Committed to R1 billion fund; save jobs for 5 years; 2 600
new jobs in farming
90
Audit: Actions after Minister Meeting
1.Management to provide feedback on the
implementation and progress and of action plans to
address poor audit outcomes during quarterly
reporting.
2.Management to provide quarterly feedback on status
of key controls.
3.Quarterly feedback on progress of filling vacancies at
EDD, CT and ITAC.
91
Auditor General Report: Compliance and Internal Control
Compliance and Internal Control - Implemented
• A consolidated ‘Heatmap’ to rectify the audit findings is compiled,
which reflects responsible persons and timeframes to rectify each
finding
• In the ‘Heatmap’ process, specific attention is given to the priority
areas of the AG findings but most importantly repeat findings.
• ‘Heatmap’ mitigation plans are being monitored every second
Friday at the progress meetings, attended by the process owners
& chaired by the CFO.
• Internal Audit attends these meetings and will audit the corrective
measures that have been implemented as part of the audit
coverage plan
• Progress reports on the implementation of corrective measures
are presented to the Audit Committee.
92
Auditor-General Report: APP 2016/17
A further engagement will be had with the AGSA to develop a better fit
between meaningful indicators audit concerns, for the 2017/18 APP.
Example: Pre-determined Objectives: Definitions 2017/18
EDD will finalise definitions to guide the preparation of the predetermined objectives in 2017/18 APP for example:
• Engagement: the process of encouraging people to be interested in
the work of an organisation
• Ensure: Make certain that something will occur be the case; make
sure that a problem does not occur
• Facilitate: Make something possible or easier
• Initiatives: Ability to assess and act or strategy to resolve a difficult or
improve a situation or advance a fresh approach
• Integrate: Combine two or more things in order to become more
effective
• Support: Give assistance to e.g. financially, resources, knowledge
• Strategic: Helping to achieve a plan
93
Is EDD A Net Contributor to Economic Development
1. The above is key question that needs to be
answered.
2. EDD receives an appropriation from Parliament.
3. In the coming year EDD will attempt to develop a
model to determine and if possible measure the
impact the appropriated funds have on economic
development of South Africa and rest of Africa. Eg:
-
value-add from IDC work
Additional value derived from competition settlements
Impact of trade measures on investment
New investments fostered by EDD work
94
THANK YOU
SIYABONGA
95