Transcript Construction Charter - Amazon Web Services

Accelerated and Shared Growth
Initiative - South Africa (ASGISA)
Presentation to Public Works Portfolio
Committee
13 June 2006
Challenge: Meeting objectives set
by Government
• Halve poverty from above one third of
households in 2004 to less that one-sixth
of households in 2014;
• Halve unemployment from about 30% IN
2004 to lower than 15% by 2014
• This requires growth averaging over 5%
between 2004 and 2014.
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ASGISA Task Teams
• Strategy project driven by Minister of
Finance reported on parameters of
strategy in July 2005 Lekgotla;
• President appointed a team to transform
strategy into an initiative:
- led by Deputy President;
- including Minister of Finance, Trade & Industry and
Public Enterprise, Premiers of Gauteng &
Eastern Cape and Mayor of Johannesburg.
3
ASGISA Task Teams contd …..
• Objective: not a new economic policy, but
initiatives to sustain higher and share
growth.
4
Building on firm foundations
• GDP Growth in first decade of Freedom
averaged about 3% per year
• Since 2004 it has averaged over 4%
• Reasonable strong employment growth in recent
years
• Trend towards significant reduction of poverty
since 2000
• Strong commodity prices and capital inflows.
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But growth is somewhat
unbalanced
• First imbalance is growth profile
- Strong commodity prices and capital inflows lead to
strengthening of the rand;
- Trade deficit of 4.3% of GDP in 2005.
• Second imbalance is the fact that one-third
of the population cannot directly benefit
from the stronger growth – the second
economy remains largely excluded except
through social grants.
6
Need to focus on key issues and
implementation modalities
• Approach of identifying the “binding
constraints” which, if removed, would have
a considerable effect on accelerating and
sharing growth in the short to medium
term
• The key innovations of ASGISA are to
focus on key initiatives and provide strong
coordinating and monitoring structures
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To accelerate growth
• Overall government plans for infrastructure
spending total R370bn over the current
MTEF:
- Spread in all spheres of government, SOEs, PPPs,
DFIs
• Considerable second economy benefits:
- Developmental opportunities: employment,
enterprise development, BBBEE;
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Sector (Industrial) Strategies
• Focus of sectors with potential for high
growth, employment creation, enterprise
development
- Tourism, agriculture / agro-processing:
biofuels, timber, food production and
processing
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DPW Contribution to ASGISA
• Scale up EPWP in infrastructure and
social sectors
• Pool EPWP recourses to ensure
maximum impact
• Improve maintenance of public
infrastructure
• Prioritise the construction industry as a
growth industry
10
DPW Contribution to ASGISA
• Ensure that capital budgets are spent
without rollovers
• Address scarce skills issue (JIPSA)
• Expand SMME sector with emphasis on
BBBEE
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DPW Contribution to ASGISA
• Placement initiative as a sub-programme
of JIPSA :
- skills development in the construction, finance and
-
-
hospitality industries
currently targeting women in these sectors
unemployed graduates, professionals, business
women
programme started with placements in UAE
12
Progress with DPW ASGISA
Initiatives
• Scaling up the EPWP in access roads:
– Plan produced to scale up EPWP in roads
sector, with dedicated funding
– Recently obtained agreement with National
Treasury regarding process for funding from
2006/2007
– Now working with DOT and provincial roads
departments to develop provincial plans for
funding from 2006/2007 (led by DOT)
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Progress with DPW ASGISA
Initiatives contd
• Scaling up the EPWP in the social sector:
– National Treasury allocated substantial additional
funding to provinces from the current financial year
– Expansion of Early Childhood Dev and Home
Community Based Care led by DSD, Health and
Education
– DPW and Business Trust providing support to
provinces to put in place capacity and management
systems, and working with relevant SETAs
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Progress with DPW ASGISA
Initiatives contd
• Infrastructure maintenance strategy:
– Draft national infrastructure maintenance
strategy produced in collaboration with CIDB
and CSIR
– Currently obtaining final comments from other
infrastructure departments
– Intend to submit the strategy to Cabinet
15
Progress with DPW ASGISA
Initiatives contd
• CIDB and DPW developed document on
positioning the construction industry as a
growth industry in ASGISA
• DTI using that document, working with
DPW and CIDB, to include sections on the
construction industry in the national
industrial strategy
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Progress with DPW ASGISA
Initiatives contd
• Ensuring that capital budgets are spent without
rollovers:
– IDIP being implemented in national DPW and all
provincial DPW’s
• Addressing scarce skills issues in the
construction industry under JIPSA:
– CIDB, DPW and DPE collaborating on study to
determine skills shortages over time
– CIDB and DPW carrying out feasibility study on
creation of ESDLA to address skills gaps
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Progress with DPW ASGISA
Initiatives contd
• Expand SMME sector with emphasis on
BBBEE:
– Contractor Incubator Programme
– Realigned ECDP
– Vuk’uphile
– CIDB contractor development initiative
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Progress with DPW ASGISA
Initiatives contd
• Progress on the placement initiative:
- recruitment of candidates (over 500 applicants and
-
123 selected)
negotiations underway for placements in:
>
UAE, South Africa, India, Japan, China,
Malaysia
• Programme to be expanded to other
countries in the future.
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Thank you..
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