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  • Celebrating

    Years 20of Prudent Financial Management

    Annual Report2013/2014

    economic development

  • Gauteng Department of Economic Developmentvote 3

    In terms of the Public Management Act Rule, 9.4 (1) of the Gauteng Legislature Standing Rules

    PR223/2014ISBN: 978-0-621-42922-0

  • list of Abbrev

    iAtions

    AFI -AfricanFashionInternationalAG -AuditorGeneralAIDC -AutomotiveIndustryDevelopmentCentreASP -AutomotiveSupplierParkBBBEE -Broad-BasedBlackEconomicEmpowermentBDS -BusinessDevelopmentServicesBEC -BidEvaluationCommitteeBPO -BusinessProcessOutsourcingCAD -ComputerAidedDesignCAP -Co-operativeAssistanceProgrammeCIC -ClimateInnovationCentreCIPS -CharteredInstituteofPurchasingandSupplyCOGTA -DepartmentofCooperativeGovernanceand TraditionalAffairsCOH/D -CradleofHumankind/DinokengCoJ -CityofJoburgConHill -ConstitutionHillCSI -CorporateSocialInvestmentCSIR -CouncilforScientificandIndustrialResearchDDI -DomesticDirectInvestmentDED -GautengDepartmentofEconomic DevelopmentDEVCO -DevelopmentCompanyDTI -DepartmentofTradeandIndustryECMS -ElectronicComplaintsManagementSystemEEC -EkurhuleniEastCollegeEOI -ExpressionofInterestEOR -EconomicOpportunitiesRoadshowsEXCO -ExecutiveCouncilFABLAB-FabricationLaboratoryFDI -ForeignDirectInvestmentGAP -GautengAcceleratorProgrammeGCR -GlobalCityRegionGDARD -GautengDepartmentofAgricultureand RuralDevelopmentGDED -GautengDepartmentofEconomic DevelopmentGDF -GautengDepartmentofFinanceGDID -GautengDepartmentofInfrastructure DevelopmentGDRT -GautengDepartmentofRoadsandTransportGEDA -GautengEconomicDevelopmentAgencyGEGDS -GautengEmployment,Growthand DevelopmentStrategyGEP -GautengEnterprisePropellerGEYODI -Gender,YouthandDisabilityGFA -GautengFundingAgencyGFTC -GautengFoundryTrainingCentreGGB -GautengGamblingBoardGGDA -GautengGrowthandDevelopmentAgencyGIA -GlobalICTAdvisorGIC -GautengInvestmentCentreGIC -GautengInnovationCompetitionGIPF -GautengIndustrialPolicyFrameworkGLB -GautengLiquorBoardGPG -GautengProvincialGovernmentGTA -GautengTourismAgencyHOD -HeadofDepartmentIASP -InternationalAssociationofScienceParksICT -InformationandCommunicationsTechnologyIDZ -IndustrialDevelopmentZoneIDZDEVCO-IDZDevelopmentCompanyIEDS -IntegratedEconomicDevelopmentServices

    IGR -Inter-GovernmentalRelationsIPAP -IndustrialPolicyActionPlanJMP -JewelleryManufacturingPrecinctLED -LocalEconomicDevelopmentMAFISA -MicroAgriculturalFinancialInstitutionof SouthAfricaMBP -MasterBluePrintMBPDP -MasterBluePrintDevelopmentPlanMEC -MemberoftheExecutiveCouncilMerSETA-Manufacturing,EngineeringandRelated ServicesSectorEducationand TrainingAuthorityMFMA -MunicipalFinanceManagementActMoU -MemorandumofUnderstandingMTEF -MediumTermExpenditureFrameworkMTSF -MediumTermStrategicFrameworkNCOP -NationalCouncilofProvincesNCV -NationalCerticifateVocationalNDA -NationalDevelopmentAgencyNEET -N??Employment,EducationandTrainingNFTN -NationalFoundryTechnologyNetworkNGOs -NonGovernmentalOrganisationNGP -NewGrowthPathOISE -OpenInnovationsSolutionExchangeORTIA -OliverReginaldTamboInternationalAirportPAIA -PromotationofAccesstoInformationActPAJA -PromotionofAdministrativeJusticeActPFMA -PublicFinanceManagementActPHRAG -ProvincialHeritageResourcesAuthority GautengPMO -ProjectManagementOfficePoA -ProgrammeofActionPP -PreferentialProcurementPPP -PublicPrivatePartnershipPPPFA -PreferentialProcurementPolicyFrameworkActPwD -PeoplewithDisabilityRFI -RequestforInformationRFP -RequestforProposalRFQ -RequestforQuotationRSA -RepublicofSouthAfricaSALGA -SouthAfricanLocalGovernmentAssociationSAPS -SouthAfricanPoliceServiceSCM -SupplyChainManagementSETA -SectorEducationandTrainingAuthoritySEZ -SpecialEconomicZoneSHE -SafetyHealthandEnvironmentSIPF -SharedIndustrialProductionFacilitySMMEs -SmallMediumandMicroEnterprisesSMS -SeniorManagementServicesSOE -StateOwnedEnterprisesSPDC -SupplierParkDevelopmentCompanySACR -DepartmentofSport,Arts,Cultureand RecreationSWH -SolarWaterHeaterTBR -TownshipBusinessRenewalTIH -TheInnovationHubTIHMC -TheInnovationHubManagementCompanyUNESCO-UnitedNationsEducationalScientificand CulturalOrganisationVIC -VisitorInformationCentreVUT -VaalUniversityofTechnologyWHS -WorldHeritageSiteYEP -YouthEmploymentProgramme

  • tAble of contents

    section 1: executive summAry 61.1MessagefromMECforGautengDepartmentofEconomicDevelopment 81.2OverviewofDepartmentsperformancebytheHOD 10

    section 2: depArtmentAl overview 122.1MandateoftheDepartment 142.2PublicentitiesforwhichtheMECisresponsible 142.3Constitutional,NationalandProvincialLegislativeMandates 142.4GoodGovernanceandlegislativeresponsibilities 172.4.3Monitoringmechanismsandimplementationofthemandate 17

    section 3: A report on orgAnisAtionAl systems And resources AgAinst the delivery of services 20

    3.1VotedFunds 223.2AimoftheVote 223.3Vision,MissionandStrategicGoals 223.4CorefunctionsoftheDepartment 233.5OrganisationoftheDepartment 23

    section 4: report on the performAnce of progrAmmesAgAinst the Approved plAns 24

    4.1Programme1:Administration 264.2Programme2:IntegratedEconomicDevelopmentServices 304.3Programme3:TradeandSectorDevelopment 364.4Programme4:BusinessRegulationsandGovernance 544.5Programme5:EconomicPlanning 64

    section 5: gded AnnuAl finAnciAl reporting stAtements 68section 6: liquor boArd finAnciAl reporting 142section 7: humAn resource oversight report 176

    7.1HROversight:GautengDepartmentofEconomicDevelopment 1747.2HROversight:GautengLiquorBoard 222

    section 8: outlook for the coming yeAr 258section 9: other informAtion 264

    9.1LegislationproducedandadministeredbytheDepartment 2649.2ReferencesandSourcesusedAccountingforthesuccessratesandfailuresoftheDepartment 2649.3AccesstoInformation 264

  • DEPARTMENT OF ECONOMIC DEVELOPMENT

    executive summAry

  • section01

  • section01GAUTENGDEPARTMENTOFECONOMICDEVELOPMENT

    executive summAry

    2013/2014 ANNUALREPORTGautenG Department of economic Development8

    1.1 messAge from mec for gAuteng depArtment of economic development

    over the past twenty years we have laid a firm foundation for the future. true to our understanding that the true measure of democracy lies not only in universal franchise but fundamentally in the improvement of the material conditions of our people, we have laboured tirelessly to build a dynamic economy, boost investor confidence and offer support to the small business sector. the aspirations of the people, encapsulated in the battle against the apartheid regime have come to fruition under the democratic order.

    the fifth administration begins this term of office with a firm conviction that nothing short of radical steps will resolve the challenges confronting our society. We have adopted a three-pronged strategy to radically transform the economy, industrialise and modernise Gauteng.

    the question of wealth redistribution and bridging the gap between the rich and the poor assumes centre stage in this administration.

    this is largely because despite making giant strides in transforming the lives of the majority of South africans, the structure of the economy remains a sore sight - operating to the exclusion of the majority of our people.

    our economy largely depicts a picture of a racialised society in which the legacy of apartheid continues to harshly affect those who were at the receiving end of this inhumane system.

    Structural unemployment remains unacceptably high, especially amongst africans, women and young people.

    the apartheid wage gap is still intact with workers earning a pittance compared to the hefty salaries of executives companies and parastatals.

    income inequality between black and white persists with white-headed households earning six times the amount earned by african-headed households.

    the economy remains largely under white ownership and control. a handful of interconnected conglomerates dominate the South african economy in sectors like manufacturing, wholesale and retail, construction and transport.

    these conglomerates are vertically integrated and therefore limit entry into the economy by smaller firms and engage in all sorts of uncompetitive behavior like price fixing and forming cartels. We have also seen a rapid increase in foreign ownership of these conglomerates.

    under these circumstances, cash transfers to the poor through the social security system have empowered families with buying power to meet basic needs. these transfers have had an immense economic impact, stimulating demand in a period where unemployment is at astronomic levels.

    this demonstrates the fact that there is an umbilical cord connecting our efforts to grow the economy, create decent jobs and the provision of social security to millions of South africans. those who seek to demonise the interventions of the democratic state on the social security side completely miss this point.

    as students of history, we also know that state intervention is a common denominator in explaining the rise of some of the worlds biggest economies today. We cannot grow the Gauteng economy and create the much-needed jobs for our people unless we decisively intervene in the economy to change its structural makeup.

    the revitalisation of the township economy is but one element of this intervention. this lies at the centre of our efforts to transform the economy and bring millions of people who are on the fringes of economic development to the mainstream. it is intricately tied to affirming township entrepreneurs as producers of goods and services that are consumed by society. our approach to the township economy will be informed by six pillars namely: infrastructure provision, funding, training in entrepr