Transcript KEY INTERVENTIONS - Amazon Web Services

Presentation to the Select Committee on Trade and
International Relations
the dti’s 2014/15-2016/17 Annual Performance Plan
Date: 09 July 2014
Director-General
Mr Lionel October
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CONTENTS
the dti’s Vision, Mission and Strategic Goals
Key Interventions for 2014/15
Allocated resources
Challenges
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VISION
“A dynamic industrial, globally competitive South African
economy, characterised by inclusive growth and development,
decent employment and equity, built on the full potential of all
citizens”
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STRATEGIC GOALS
 Facilitate transformation of the economy to promote industrial
development, investment, competitiveness and employment
creation.
 Build mutually beneficial regional and global relations to advance
South Africa’s trade, industrial policy and economic development
objectives.
 Facilitate broad-based economic participation through targeted
interventions to achieve more inclusive growth.
 Create a fair regulatory environment that enables investment, trade
and enterprise development in an equitable and socially
responsible manner.
 Promote a professional, ethical, dynamic, competitive and
customer-focused working environment that ensures effective and
efficient service delivery.
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PROGRAMMES OF the dti
• Programme 1: Administration (Ministry, Office of the DG &
GSSSD)
• Programme 2: International Trade and Economic
Development
• Programme 3: Broadening Participation
• Programme 4: Industrial Development
• Programme 5: Consumer and Corporate Regulation
• Programme 6: Incentive Development and Administration
• Programme 7: Trade and Investment South Africa
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CORE PROGRAMMES AND CLUSTERS
Industrial Development – the development of policies and
strategies that promote sector competitiveness, growth, job creation
and efficient administration of support measures.
Trade, Investment and Exports – the strengthening trade and
investment links with key economies and fostering African
development, including through regional and continental integration
and development co-operation in line with the New Partnership for
African’s Development (NEPAD).
Broadening Participation - the development of interventions and
strategies that promote enterprise growth, empowerment and
equity.
Regulation – the development and implementation of coherent,
predictable and transparent regulatory solutions that facilitate easy
access to redress and efficient regulatory services for economic
citizens.
Administration – effective co-ordination of departmental
programmes and provision of necessary support for efficient
implementation.
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Global Economic Context
• Global growth strengthening but still at best moderate.
• US recovery is surprisingly strong, largely on the back of the shale gas
impact on US manufacturing and President Obama’s focus on ‘reshoring’.
• China’s growth after softening in 2013, now appears to be responding
to stimulus package from Government.
• European Union
– Recovery in ‘core’ uneven with UK and Germany strong but France and Italy weak.
– Periphery emerging unevenly from recession.
• BRICS
– Brazil, Russia and SA weak.
– India and China strengthening.
• Africa
– Sub-Saharan Africa still strong.
• Across the globe, Q1 2014 growth was disappointing.
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Economic overview – GDP
• Gross Domestic Product (GDP) seasonally adjusted and
annualised quarter-on-quarter (q-o-q) contracted by 0.6% in Q1
2014.
• The contraction of the SA economy in Q1 2014 is primarily due to
the substantial loss of production in the platinum industry due to the
long-running wage strike.
–
–
–
–
–
Mining and Quarrying sector contracted by 24.7%.
Manufacturing sector declined by a more modest 4.4%.
Construction sector grew substantially at a rate of 4.9%.
Agriculture sector grew by 2.5%.
Electricity, Gas and Water sector was stable with growth of just 0.1%.
• Concerning as any contraction in GDP is, quarterly data is volatile
and has been annualised (essentially multiplied by 4). The actual
contraction was just 0.15%.
• SA GDP in Q1 2014 is 1.8% higher than in Q1 2013.
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Economic overview - GDP
Source: StatsSA
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Economic Overview - Employment
• Non-agriculture employment increased by 9,000 from 8,498,000 in
Dec 2013 to 8,507,000 in March 2014.
• About 50,000 jobs were created in community services, 7,000 in
finance and 5,000 in construction.
• Employment declined the most in the trade sector (-34,000),
followed by mining (-13,000).
• Manufacturing employment declined by 3 000.
• The productive sectors of the economy struggled to create
employment in Q1 2014. The decline in economic activity (in
particular low production and sales in the mining and quarrying
and manufacturing sectors) have contributed to lower employment
in the two sectors.
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Economic overview - Employment
Non-Agricultural Sector Employment
8.6
Number of employees (million)
8.5
8.4
8.3
8.2
8.1
8
7.9
7.8
Source: StatsSA
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OVERVIEW OF the dti’s
KEY PRIORITIES FOR 2014-2019
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Link to NDP, MTSF
The
Presidency
NDP
Impact
ESEI &
ICTS
Clusters of
Cabinet
5-year MSTF
Outcomes
Outcomes
the dti
IPAP
SP (5-year)
MTEF (3-year)
21 priorities
APP (3-year)
ENE (1-year)
Outputs
Activities
Inputs
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Priorities for 2014 - 2019
Government
the dti’s MTSF Interventions
outcomes
Linkage
Strategic
to
dti’s
the
Outcomes-
Orientated Goal
Outcome 4:
1.
Proclaim three SEZs
Facilitate transformation of
Decent employment
2.
All IPAP interventions implemented
the economy to promote
through inclusive
3.
250 investment projects facilitated
industrial development,
implemented
investment,
4.
IDC to fund 2 higher level beneficiation projects
competitiveness and
5.
Develop MBAP and incorporate into IPAP
employment creation
6.
Increase use of local metals in SA
growth
Manufacturing
7.
Increase localisation to 75% target
8.
Develop and cost options for stable and
competitive exchange rate
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Priorities for 2014 - 2019
Government
the dti’s MTSF Interventions
outcomes
Linkage to the dti’s
Strategic OutcomesOrientated Goal
Outcome 11:
1.
Export Council to develop African Export Markets
Build mutually
Create a better
2.
FDI investment pipeline R50bn
beneficial regional and
South Africa and a
3.
Economic diplomacy and pavilions
global relations to
better world
4.
7 investments and 5 trade promotion projects
advance South Africa’s
5.
SA position on SADC RISDP
trade, industrial policy
6.
SACU development integration
and economic
7.
Tripartite-Free Trade Agreement
development
8.
SA position on TFTA and CFTA
objectives
9.
26 bilateral co-operation agreements in Africa
10. 3-8 engagements on SDI projects
11. 59 bilaterals with countries of the South
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Priorities for 2014 - 2019
Government outcomes
the dti’s MTSF Interventions
Linkage to the dti’s
Strategic
Outcomes-
Orientated Goal
Outcome 4: Decent
1.
employment through
inclusive growth
2.
3.
National Rural investment
Facilitate broad-based
incentive
economic participation
Develop Supplier Development
through targeted
Incentive for procurement
interventions to achieve
5 investors per district municipality
more inclusive growth.
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KEY PLANNED INTERVENTIONS
FOR 2014/15 FINANCIAL YEAR
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KEY INTERVENTIONS – INDUSTRIAL
DEVELOPMENT
Upscale industrial policy by tabling the annual rolling Industrial Policy
Action Plan (IPAP) to Cabinet and produce quarterly implementation
reports.
Two (2) sector specific action plans (in support for local Manufacturing
arising from Broadband implementation and for Beneficiation in 5 value
chains) developed to influence and respond to the changing economic
environment to enhance manufacturing potential.
Two (2) key research projects (Fluorspar Beneficiation and Feasibility
Study for the establishment of a Syringe manufacturing plant in South
Africa) will be undertaken to facilitate development of interventions to
expand value-added activities in existing and new sectors of the economy
including beneficiation.
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KEY INTERVENTIONS – INDUSTRIAL
DEVELOPMENT
Two (2) key initiatives to promote regional industrial development
proposed by South Africa to deepen Regional Industrial development in
Africa.
Special Economic Zone (SEZ) Regulations approved, gazetted,
implemented and report produced to enact the Act SEZ Act and
Regulations approved promulgated.
Support technological competencies by supporting 1 458 students and
756 researchers via the Technology and Human Resources for Industry
(THRIP).
 Support 20 firms/projects under the Support Programme For Industrial
Innovation (SPII) with R46m investment.
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KEY INTERVENTIONS – INDUSTRIAL
DEVELOPMENT
Tool-making apprentice programme
 Support 250 students enrolled for the tool making apprentice
programme.
Industrial upgrading programme
 Support 200 workers trained through
programme.
the
industrial
upgrading
950 enterprises approved to participate in Exporting, Marketing and
Investment Assistance (EMIA) scheme.
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INDUSTRIAL DEVELOPMENT INCENTIVES
Number of firms/projects
supported
Planned
Potential jobs
supported
Investment
leveraged
25
550
R1.7bn
10
2 000
R600m
Film and Television
70
-
R1.9bn
12I
12
2 200
R12bn
Critical Infrastructure Programme
(CIP)
Manufacturing Competitiveness
Enhancement Programme
(MCEP)
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3 600
R6bn
350
99 600
-
Description
Industrial Financing
Automotive Incentive Scheme
(AIS)
Business Process Services (BPS)
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KEY INTERVENTIONS – TRADE,
INVESTMENT and EXPORTS
Africa regional development programme implemented-progress
report produced on implementation of agreed programme and
projects for priority development areas in SACU, SADC-FTA and
Spatial Development Initiatives (SDI) infrastructure projects.
Conclusion of Economic Partnership Agreement (EPA) trade
negotiations with the European Union (EU), Southern African
Customs Union (SACU) India Preferential Trade Agreement (PTA),
Southern African Development Communities (SADC)- East African
Community (EAC)- Common Market for Eastern and Southern
Africa (COMESA) Free Trade Agreement (FTA) –Tripartite-Free
Trade Agreement (T-FTA): Status report produced on progress
towards conclusion of trade negotiations.
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KEY INTERVENTIONS – TRADE,
INVESTMENT and EXPORTS
Increased manufactured exports under EMIA by increasing the
value of exports to R 3 billion.
Investment facilitation in targeted sectors - R 40 billion.
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KEY INTERVENTIONS – BROADENING
PARTICIPATION
Implement Broad-Based Black Economic Empowerment (B-BBEE)
Amendment Act and Code of Good Practice for B-BBEE.
 Phased-in operationalisation of the B-BBEE Commission.
Approve 90 incubators for the Incubator Support Programme (ISP)
incentive.
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BROADENING PARTICIPATION INCENTIVES
Planned
Description
Number of firms/projects
supported
Potential jobs supported
Investment
leveraged
Enterprise Incentive
Programme (EIP):
Manufacturing Incentive
Programme (MIP)
EIP: Aquaculture Development
Enhancement Programme
(ADEP)
10
4 500
R822 m
15
250
R150m
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Increasing up-take of incentives provincially
• Approximately 60% of the total dti budget is allocated to incentives
• Uptake of the incentives by some provinces higher than others
• To improve participation by all provinces the dti intends to:
– Request that honourable members identify qualifying companies
within their constituencies that can apply for funding
– Strengthen partnerships with under-represented provinces through
continuous engagement
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KEY INTERVENTIONS - REGULATION
Impact assessment of regulation on business and economic
citizens
 One (1) Regulatory Impact Assessment (RIA) Report on Intellectual
Property (IP) developed for approval by Minister.
Policies, Bills and Regulations to enforce fair business practices
 Three (3) policy frameworks on Liquor, Gambling (Refinement and
Finalisation) and Licensing of Businesses Bill developed for approval
by Minister.
 Six (6) Bills developed for approval by Minister on Promotion and
Protection of Investment, Copyright Amendment, Liquor Amendment,
Companies Amendment, Gambling Amendment and Licensing of
Businesses
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KEY INTERVENTIONS - REGULATION
Policies, Bills and Regulations to enforce fair business practices
 Three (3) policy frameworks on Liquor, Gambling (Refinement and
Finalisation); and
 SEZ Regulations finalised and gazetted.
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KEY INTERVENTIONS – ADMINISTRATION
Attract, develop and retain professional and skilled officials
 Reduction of the vacancy rate from 9.4% to 6%.
 Reduction of the staff turnover rate to 6.8%.
 Employment of People With Disability to increase from 2.7% to
2.8%.
 Employment of Women in senior management positions to
increase from 44% to 46.5%.
Creditors’ Payments made in accordance with legislative
requirements
 All eligible creditors’ payments to suppliers made within 30 days.
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KEY INTERVENTIONS – ADMINISTRATION
Public Awareness Platforms and Events
 Conduct 18 multimedia awareness campaigns: Incentive
Schemes, Film Promotion, National Liquor Authority, Buy local
Promotion and Export Promotion.
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“the dti sisebenza sonke campaign”
(the dti working with industry)
the dti engagements with industry role players on targeted
programmes
*Conduct 60 events and exhibitions
 30 sector specific workshops
 30 Exhibitions
 Facilitation of aftercare services for the dti beneficiaries
Showcase beneficiary enterprises
Provincial institutional mechanisms (MinMec, Gambling Policy
Council, Liquor Policy Council, “taking the dti to the people”
revised to “the dti engages industries”
* Some of these events and exhibitions are to be transferred to the Department of Small Business
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KEY INTERVENTIONS – ADMINISTRATION
Conduct 2 multi-year evaluations on key programmes: Isivande
Women’s Fund and the Workplace Challenge Programme.
Service Delivery Improvement Plan
 SDIP for 2012-2015 implementation monitored and a report
produced for 2013/14 financial year.
 Aim to improve turnaround times on Liquor Licenses and
Incentives.
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ALLOCATED BUDGET
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Medium Term Expenditure Framework
2014/15
2015/16
2016/17
Medium-Term Estimates (R ’000)
Programmes
Medium-Term Expenditure Framework (MTEF)
Administration
706 946
730 672
770 014
International Trade and Economic
Development
147 197
154 812
163 780
Broadening Participation
1 005 777
1 060 173
1 118 065
Industrial Development
1 796 824
2 078 505
2 192 547
277 256
286 939
300 754
5 540 281
6 246 470
7 050 814
360 748
370 094
387 554
9 835 029
10 927 665
11 983 528
Consumer and Corporate
Regulation
Incentive Development and
Administration
Trade and Investment South Africa
TOTAL FOR PROGRAMMES
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Conclusions
• Electricity: Eskom’s request to industrial customers to reduce electricity
consumption by 10% has a direct impact on production.
• Exchange rate volatility.
• Global recovery remains uneven with downside risks.
• However, SA Foreign Direct Investment (FDI) doubled to $8bn in 2013.
• Domestic auto sector investment is at a record R8bn.
• Growth outlook for Africa remains positive and SA is well-placed to
continue exporting value-added manufactured goods to the continent.
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THANK YOU
QUESTIONS ?
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SMALL BUSINESS
• Functions to be transferred to SBD
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KEY INTERVENTIONS – BROADENING
PARTICIPATION
Implementation of the seda Technology Programme (stp)
 6 new incubators established
 46 established incubators supported
 301 Small Micro and Medium Enterprises (SMMEs) created
 962 of SMMEs approved for assistance by seda
Implementation of Co-operative Amendment Act
 Phased-in operationalisation of the Co-operative Development
Agency and report produced.
 Phased-in operationalisation of the Cooperative Tribunal and report
produced.
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KEY INTERVENTIONS – BROADENING
PARTICIPATION
Finalisation and Implementation of Informal Sector Strategy
 Pilot implementation of the National Informal Business Upliftment
Strategy (NIBUS) and a report produced.
Finalisation and Implementation
Development Strategy (YEDS)
of
Youth
Enterprise
 Implementation report on YEDS produced.
 Finalise and re-submit the National Strategic Framework on
Gender and Women empowerment to Cabinet for approval.
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Broadening Participation Incentives
Planned
Description
Cooperative Incentive Scheme (CIS)
Black Business Supplier Development Programme
(BBSDP)
Number of firms/projects supported
431
1 280
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Acronyms/Abbreviations
TERM
DEFINITION
TERM
DEFINITION
AIS
Automotive Investment Scheme
COTII
Council of Trade and Industry Institutions
ADEP
Aquaculture Development and Enhancement Programme
CRM
Customer Relationship Management
AGOA
African Growth Opportunity Act
CSIR
Council for Scientific and Industrial Research
B-BBEE
Broad-Based Black Economic Empowerment
CFTA
Continental Free Trade Area
BBSDP
Black Business Supplier Development Programme
CT
Companies Tribunal, a public entity reporting to the dti
BEE
Black Economic Empowerment
DBSA
Development Bank of Southern Africa
BPS
Business Process Services
DSBD
Department of Small Business Development
BRICS
Brazil, Russia, India, China and South Africa
DG
Director-General
CIP
Critical Infrastructure Programme
DFI
Development Finance Institution
CIPC
Companies and Intellectual Property Commission, a public entity
EA
Enterprise Architecture
reporting to the dti
CIS
Co-operative Incentive Scheme
EAC
East African Community
COMESA
Common Market for Eastern and Southern Africa
ECIC
Export Credit Insurance Corporation SOC Ltd, a public entity
reporting to the dti
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Acronyms/Abbreviations
TERM
DEFINITION
TERM
DEFINITION
EIP
Enterprise Investment Programme
IDZs
Industrial Development Zones
EMIA
Export, Marketing and Investment Assistance
IP
Intellectual Property
ENE
Estimates of National Expenditure
IPAP
Industrial Policy Action Plan
EPA
Economic Partnership Agreement
ISP
Incubation Support Programme
EU
European Union
MBAP
Mineral Beneficiation Action Plan
FDI
Foreign Direct Investment
MCEP
Manufacturing Competitiveness Enhancement Programme
FTA
Free Trade Agreement
MIP
Manufacturing Incentive Programme
GATT
General Agreement on Tariffs and Trade
MTEF
Medium-Term Expenditure Framework
GDP
Gross Domestic Product
MTSF
Medium-Term Strategic Framework
GSSSD
Group Systems and Support Services Division
MYECP
Mass Youth Enterprise Creation Programme
ICT
Information and Communication Technology
NCA
National Credit Act of 2005, as amended
IDC
Industrial Development Corporation, a public entity reporting to
NCC
National Consumer Commission, a public entity reporting to the dti
the Economic Development Department
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Acronyms/Abbreviations
TERM
DEFINITION
TERM
DEFINITION
NCR
National Credit Regulator, a public entity reporting to the dti
NLB
National Lotteries Board, a public reporting to the dti
NCT
National Consumer Tribunal, a public entity reporting to the dti
NMISA
National Metrology Institute of South Africa
NDP
National Development Plan
NRCS
National Regulator for Compulsory Specifications, a public entity
reporting to the dti
NEAC
National Export Advisory Council
OCIO
Office of the Chief Information Officer
NEDP
National Exporter Development Programme
ODG
Office of the Director-General
NEF
National Empowerment Fund, a public entity reporting to the dti
OEM
Original Equipment Manufacturers
NEPAD
New Partnership for Africa’s Development
P-AIS
People-Carrier Automotive Investment Scheme
NES
National Export Strategy
PPP
Public-Private Partnership
NGB
National Gambling Board, a public entity reporting to the dti
PTA
Preferential Trade Agreement
NGP
New Growth Path
RISDP
Regional Indicative Strategic Development Plan
NIBUS
National Informal Business Upliftment Strategy (previously known
REIPPP
Renewable Energy Independent Power Producer Procurement
as the Informal Sector Strategy)
NIPF
National Industrial Policy Framework
Programme
RIA
Regulatory Impact Assessment
44
Acronyms/Abbreviations
TERM
DEFINITION
stp
seda Technology Programme
TDCA
Trade, Development and Co-operation Agreement
TIFA
Trade and Investment Framework Agreement
T-FTA
Tripartite Free Trade Agreement
the dti
The Department of Trade and Industry
THRIP
Technology and Human Resources for Industry Programme
TSP
Tourism Support Programme
WCP
Workplace Challenge Programme
WIPO
World Intellectual Property Organisation
WTO
World Trade Organisation
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