Transcript 2005/6 annual report - Amazon Web Services

2005/6 Annual Report
to
1
the Portfolio Committee on
Trade and Industry
By:
Director General, Tshediso Matona
November 2006
CONTENTS
2005/6 ANNUAL REPORT

Economic Context

dti Strategic objectives

Summary of Key Outputs 2005/06

Spending trends

Breakdown of the budget

Proposed interventions
ECONOMIC CONTEXT

Increased manufacturing confidence (BER report),
underpinned by:
– A increase in domestic investment
– A increase in foreign investment
– Strong performance in key industrial sectors:autos
production up 11.6%
Economic/investment
growth
GDP
4.9%
Investment
8%
Employment elasticity
Increase to 0.8% relative to
GDP growth
3
=
=
Conditions
created for a
more robust
industrial policy
Growth in manufacturing 4.1%

Employment growth of 540 000 in
past year
Challenge: Trade deficit : strong currency has resulted in widening trade deficit –
challenge is to increase value added exports.
STRATEGIC OBJECTIVES
2006-2009
 Promote co-coordinated implementation of
accelerated & shared growth initiative
 Raise the level of exports and promote equitable
global trade
 Promote direct investment and growth in the
industrial and services economy, with particular
focus on employment creation
 Contribute towards the development and regional
integration of the African Continent within the
NEPAD Framework
 Promote broader participation, equity and
redress in the economy
KEY OUTPUTS IN 2005/06
2005/6 ANNUAL REPORT

This section will cover high level outputs in the following areas:
 Enterprise & industry support & development which will
encompass:o Policy & Strategy
o Financial support
 International Trade & Economic Development
 Legislation & Regulation
 HR & Governance
KEY OUTPUTS IN 2005/06
2005/6 ANNUAL REPORT
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT

Policy & Strategy
 ASGISA – contributed to framework & leads key interventions eg.
Sectors (BPO), Small Business, etc.
 National Industrial Policy Framework – undertook consultations &
research towards draft policy
 Other Sector Policy initiatives - Clothing & Textiles, Chemicals,
Metals, Agro-processing, automotives, Forestry & Wood, Pulp &
Paper, Film and Services
 Integrated Small Business Strategy & Co-ops strategy finalised &
SEDA roll out launched
 Regional Industrial Development Strategy - undertook consultations
& research towards draft policy
KEY OUTPUTS IN 2005/06
2005/6 ANNUAL REPORT
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT

Policy & Strategy
 Broad Based Black Economic Empowerment – finalised phase 1 &
launched phase 2 of codes
 Import Parity Pricing policy finalised
 Policy Reviews
 Incentives, incl. IDZ’s
 Competition Policy
 Export & Investment Strategies
 Draft strategic framework on Gender & Women’s Economic
Empowerment completed
KEY OUTPUTS IN 2005/06
2005/6 ANNUAL REPORT
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT
Financial support
 9 Strategic Infrastructure Programs (SIP) approved with projected
778 direct & 31 481 indirect jobs
 10 new infrastructure projects (CIP) were approved with project
investment of R8,5b

1 924 SMEDP incentives were approved with expected investment
of R14,7b & the creation of 41 873 jobs. R733m claims paid during
the period.
 Assisted 577 firms (900 applications) through the BBSDP scheme to
the value of R29m
 10 Film incentives were approved, productions of which will result
in investment of R360m
KEY OUTPUTS IN 2005/06
2005/6 ANNUAL REPORT
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT

Financial support – cont.
 EMIA assisted 267 companies to exhibit at foreign national
pavilions, 547 firms (882 applied) for other export initiatives & 86
companies participated in local pavilions & 41 outward-bound trade
missions to 23 countries, with expected export sales of R5,6b
 NEF financed 66 deals with a total value of R467m
 Khula approved R462m worth of transactions and disbursed R316m,
whilst approving 334 business plans. 56% went to financing black
businesses, 32% to women & 35% to poorer provinces

Co-operatives Support - Developed Incentives & obtained donor
funding
KEY OUTPUTS IN 2005/06
2005/6 ANNUAL REPORT
INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT
 Negotiations – WTO, EU, US, EFTA
 Implementing – SACU, EU, Mercosur
 Other Trade Initiatives – China, IBSA, Trade & Investment Protection
Agreements
 Africa/NEPAD – APRM, Trade & Technical Co-operation missions
KEY OUTPUTS IN 2005/06
2005/6 ANNUAL REPORT
LEGISLATION & REGULATIONS
Finalised Bills:
 Co-operatives Bill
 National Credit Bill
 Close Corporations Amendment Bill
 Patents Amendment Bill
 Interim Companies Amendment Bill
Outstanding Bills
 Consumer Protection Bill, Enterprise Development Bill, Intellectual
Property Amendment Bills, Sugar Bill
HR & Governance
2005/6 ANNUAL REPORT
TOTAL NO OF POSTS AS AT
1 APRIL 2006
1098
VACANCIES AS AT
1 APRIL 2006
332
APPOINTMENTS
1 APRIL 2006 – 30 SEPTEMBER 2006
94
TERMINATIONS
1 APRIL 2006 – 30 SEPTEMBER 2006
31
VACANCIES AS AT
30 SEPTEMBER 2006
269
HR & Governance
Appointment of CEO’s and DG

IDC

NEF

CIPRO
Appointment of Board of Directors

NEF

Khula

IDC

ECIC

SEDA
HR & Governance
Audits & Reports

Unqualified Audits for the dti & all COTII agencies except one

All COTII agencies tabled annual reports, incl. Programs such
THRIP & NIPP
7 YEAR
EXPENDITURE TRENDS
2005/6 ANNUAL REPORT
4,000,000
R'00
3,000,000
Budget
Expenditure
2,000,000
Unspent
% Unspent
1,000,000
0
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2,344,686
2,245,427 2,280,062
2,554,826 2,796,350
3,623,291 3,907,420
Expenditure 1,827,025
2,159,821 2,015,888
2,495,504 2,659,342
3,424,138 3,631,304
Budget
Unspent
% Unspent
517,661
85,606
264,174
59,322
137,008
199,153
276,116
22%
4%
12%
2%
5%
5%
7%
ANALYSIS OF MTEF
2005/6 ANNUAL REPORT
Total allocated budget
Less: Payment to agencies
Sub Total
Less: Compensation
Sub Total
Less: Incentives
Incentives capital
Other Incentives
Sub Total
Less: Goods & Services
Committed
Uncomitted
Sub Total
Less: Other payments
Less: Capital
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
B/A
D/C
F/A
G/A
H/A
J/A
K/A
L/A
N/A
O/A
2006/07
R'000
3,665,912
1,466,202
2,199,710
300,929
1,898,781
1,385,570
508,800
876,770
513,211
468,940
294,425
174,515
44,271
35,418
8,853
0
40.00%
13.68%
37.80%
13.88%
23.92%
12.79%
8.03%
4.76%
0.97%
0.24%
2007/08
R'000
3,957,583
1,524,652
2,432,931
315,205
2,117,726
1,587,346
719,237
868,109
530,380
483,851
312,090
171,761
46,529
36,936
9,593
0
38.52%
12.96%
40.11%
18.17%
21.94%
12.23%
7.89%
4.34%
0.93%
0.24%
2008/09
R'000
4,327,364
1,614,571
2,712,793
331,410
2,381,383
1,839,824
929,920
909,904
541,559
492,925
330,815
162,110
48,634
38,855
9,779
0
37.31%
12.22%
42.52%
21.49%
21.03%
11.39%
7.64%
3.75%
0.90%
0.23%
BREAKDOWN OF BUDGET
2005/6 ANNUAL REPORT
On average the structure of the budget allocation over the MTEF
period is:
 40% to agencies of the dti
 40% to incentive payments
 13% to compensation after deduction to agencies (8% of total budget)
 12% to goods & services, of which 8% is overhead commitments, leaving only
4% to fund projects/new initiatives
MTEF Preliminary Outcome
 Requested additional R8b over MTEF period but got allocated R1,3b
CONCLUSION
2005/6 ANNUAL REPORT
 Overall we have achieved our targets for the reporting period
 Could do more with additional financial resources
 Some challenges remain in respect of:
 Institutional development
 Skills & Training
 Inter-departmental/cluster co-ordination
THANK YOU