Download - Briefing to the Select Committee on Economic and Foreign Affairs 23 May 2007 MTSF 2007 - 2010
Briefing to the Select Committee on Economic and Foreign Affairs
23 May 2007
MTSF 2007 - 2010MTSF 2007 - 2010
Presentation covers:Presentation covers:
Part One - Context & Strategic Objectives
Part Two - 2006/07 Key Outputs
Part Three - 2007 -2010 Strategic Deliverables
Part Four - Challenges
Part Five - Resourcing the Strategy
Part Six - Economic Cluster
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CONTEXT & STRATEGIC CONTEXT & STRATEGIC OBJECTIVESOBJECTIVES
PART ONEPART ONE
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ECONOMIC CONTEXTECONOMIC CONTEXT
Step change in economy towards a higher growth path well established, with GDP growth of 5% in 2006
Key drivers have been robust consumer spending & increased fixed investment by both public & private sector
Leading growth sectors: construction (13.2%), finance & business services (7.9%), trade (6.9%), transport & communication (5.6)
Business confidence high, despite rising inflation, interest rates & import competition
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ECONOMIC CONTEXTECONOMIC CONTEXT
Unemployment rate: 31.2 (2003), 27.9 (2004), 26.5 (2005), 25.6 (2006)
1993 - 2001 2001 - 2005 2006
GDP 2.9 4 4.9
Private consumption 3.6 5.2 7+
Fixed investment 4.7 7.2 11.8
GDE 2.7 6 8.2
Annual growth %Annual growth %
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ECONOMIC CONTEXTECONOMIC CONTEXT
Challenges Increased imports exerting pressure on trade
balance Unemployment still high despite improving job
creation Exports & FDI performance modest Millions still on economic margins & poverty
stricken Economy’s fortunes tied to global economic
developments (e.g oil price), although prospects positive
MTSF 2007 - 2010MTSF 2007 - 2010
ECONOMIC CONTEXTECONOMIC CONTEXT
Policy & Strategy Responses Asgisa introduced; identifies key binding
constraints & interventions to address them the dti key in Asgisa conception & dti MTSF is
informed by Asgisa aims the dti plays lead role in Economic Cluster’s
implementation of Asgisa Economic Cluster POA 2007-2009 to focus on:
Increasing economic efficienciesPromoting dynamic sectorsIntegrated small enterprise service delivery
MTSF 2007 - 2010MTSF 2007 - 2010
STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVES
Promoting co-ordinated implementation of the accelerated & shared growth initiative
Promoting direct investment & growth in the industrial & service economy, with particular focus on employment creation
Contributing towards the development & regional integration of the African Continent within the Nepad framework
Promoting broader participation, equity & redress in the economy
Raising the level of exports & promote equitable global trade
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KEY OUTPUTS – 2006/07KEY OUTPUTS – 2006/07
PART TWOPART TWO
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KEY OUTPUTS IN 2006/07KEY OUTPUTS IN 2006/07
This section will broadly cover the following areasThis section will broadly cover the following areas::
Enterprise & Industry Support & DevelopmentEnterprise & Industry Support & Development
Consumer & Corporate RegulationConsumer & Corporate Regulation
International Trade & InvestmentInternational Trade & Investment
Marketing & CommunicationMarketing & Communication
Resource ManagementResource Management
MTSF 2007 - 2010MTSF 2007 - 2010
2006/07 DELIVERABLES2006/07 DELIVERABLES
ASGI-SA identified need to develop a robust industrial policy to promote diversification, competitiveness & labour-absorption
The National Industrial Policy Framework finalized & approved by Cabinet with directive to implement immediately
Implementation being planned, focusing on priority sectors and key interventions
As the key part of the NIPF the Regional Industrial Development Strategy (RIDS) being finalised to stimulate growth in slower growing provinces, towns & rural areas so as to deal with regional disparities
MTSF 2007 - 2010MTSF 2007 - 2010Enterprise & industry support & developmentEnterprise & industry support & development
2006/07 DELIVERABLES2006/07 DELIVERABLES
Strategies in the following key sectors in advanced stage:• Capital Equipment, Metals• Automotives & Aerospace• Agro-processing, forestry• Clothing & Textiles• Chemicals, Plastics & Pharmaceuticals• ICT/Electro technical• BPO & Services• Cultural Industries
MTSF 2007 - 2010MTSF 2007 - 2010Enterprise & industry support & developmentEnterprise & industry support & development
2006/07 DELIVERABLES2006/07 DELIVERABLES
National Industrial Participation created over 12 000 direct jobs
150 projects, US$7,5b investment, sales & exports, implemented since 1996 from investments made & exports generated
Roll out of Seda with a network of 47 offices across the country
Rollout of SAMAF progressing well through network of 38 institutions country wide having 4 346 borrowers & 14 353 savers over 15 month period
MTSF 2007 - 2010MTSF 2007 - 2010
Enterprise & industry support & developmentEnterprise & industry support & development
2006/07 DELIVERABLES2006/07 DELIVERABLES
Support for Enterprise Development Established National Small Business Advisory Council Khula loans & advances increased from R34m(2002) to
R137m (2006); three new funds launched & capitalised at R300m
Products for targeted procurement by Government Departments (set asides) have been identified and will be implemented
IDC approved investments anticipated to be in excess of R6b Co-operatives
15 co-operatives from 6 provinces (Eastern Cape, KZN, Gauteng, North West, Northern Cape & Limpopo) supported financially benefiting 205 youth & 188 women
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Enterprise & industry support & developmentEnterprise & industry support & development
2006/07 DELIVERABLES2006/07 DELIVERABLES
Support for Enterprise Development – cont. Investment Incentives
o Small Medium Enterprise Development Programme:• Since inception 2000 to date: 11 309 approved projects with
incentive value of R 13.9 billion and R 2.49 billion has been disbursed.
• 01 April 2006 to date: 3 337 approved projects with a projected qualifying investment of R17.2 billion. The value of incentives approved is R 3.8 billion and R 676.5 million has been disbursed.
o Strategic Industrial Projects (SIP)• 45 projects approved with qualifying investment value of
R28,7 billion. 22 projects have established with actual investment value R10 billion
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Enterprise & industry support & developmentEnterprise & industry support & development
2006/07 DELIVERABLES2006/07 DELIVERABLES
Support for Enterprise Development – cont.o Critical Infrastructure Program (CIP)
• 19 projects approved to date with qualifying investment value of R32 billion and infrastructure investment of R9.2 billlion
The following Technology Support delivered SPII Projects worth R52m Technology & Human Resources for Industry Programme –
746 researchers, 3 178 students & 371 industry partners assisted
SANAS accredited 134 facilities Standards South Africa (STANSA), division of SABS
developed & revised 639 standards
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Enterprise & industry support & developmentEnterprise & industry support & development
2006/07 DELIVERABLES2006/07 DELIVERABLES
Support for Enterprise Development – cont. Film & TV production rebate
Since inception 01 August 2004 : Approved 31 productions. Value of Qualifying South African Production Expenditure (QSAPE) is R1,8 billion. To date 17 productions have been completed and received rebate of R122 million
Since 01 April 2006 to date : Approved 19 productions and value of QSAPE R1.17 billion
Industrial Development Zones Investment in infrastructure of R1,07 billion Facilitated investment to the value of over R28 billion
Export marketing and Investment assistance• 405 projects approved to the value of R218 million. R 10 million
disbursed during the year. Top 3 sectors supported : Agro-processing, Electro-technical, Metals.
Sector Specific Assistance Scheme 28 projects approved to the value R13 million
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Enterprise & industry support & developmentEnterprise & industry support & development
2006/07 DELIVERABLES2006/07 DELIVERABLES
Broad Based Black Economic EmpowermentThe codes of good practice gazetted.BEE Advisory Council to be established which will
oversee & monitor implementationNational Empowerment Fund has disbursed
R424m from approved investment of R590m Black Business Supplier Development Programme
891 projects approved to the value of R46.9 million. R25 million disbursed during the year.
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Enterprise & industry support & developmentEnterprise & industry support & development
2006/07 DELIVERABLES2006/07 DELIVERABLES
CONSUMER & CORPORATE REGULATIONSCONSUMER & CORPORATE REGULATIONS Corporate Law Reform:Corporate Law Reform: New Companies bill approved by Cabinet & published New Companies bill approved by Cabinet & published
for comment. Expected to increase investment in firms by reducing regulatory for comment. Expected to increase investment in firms by reducing regulatory & administrative burden on small & medium size firms& administrative burden on small & medium size firms
Consumer Law Reform:Consumer Law Reform: New consumer protection bill subject to public New consumer protection bill subject to public consultation & inputs being incorporated. Bill will promote a fair & consultation & inputs being incorporated. Bill will promote a fair & competitive market place for consumerscompetitive market place for consumers
Credit Law Reform:Credit Law Reform: Act proclaimed & National Credit Regulator established. Act proclaimed & National Credit Regulator established. Will improve consumer protection, remove discrimination & create single Will improve consumer protection, remove discrimination & create single market for credit. Will remove adverse data for approx. 1,7m consumers market for credit. Will remove adverse data for approx. 1,7m consumers
Competition Policy ReviewCompetition Policy Review: Review completed & amendments to be drafted. : Review completed & amendments to be drafted. Will address anti-competitive behaviour in concentrated sectors.Will address anti-competitive behaviour in concentrated sectors.
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2006/07 DELIVERABLES2006/07 DELIVERABLES
Contributed to Jan 2007 resumption of WTO Doha Round Led development of position on industrial tariffs in Doha Led development of SADC negotiating position on
Economic Partnership Agreement with EU/aligned to SA-EU TDCA
SACU-EFTA FTA ratified Dec 2006: on entry into force, duty free quota free market access for SACU industrial exports
New SA-EU Agreement on Auto trade in force in Dec 2006: Will encourage new investment in SA and increased auto exports to the EU
Implemented SA-China MOU on economic co-operation to provide relief to textiles and clothing sectors
Annexes on SACU tariff board & national bodies adopted by SACU Council in December 2006
MTSF 2007 - 2010MTSF 2007 - 2010International Trade & InvestmentInternational Trade & Investment
2006/07 DELIVERABLES2006/07 DELIVERABLES
Export Promotion activities undertaken: 3 International Trade initiatives supporting 79 companies 33 National Pavillions generating R589 million in exports 42 Trade missions to 36 countries and from 6 countries
Export Development assistance given to exporters 577 verified trade leads 1 400 customers advised on the export process 4 000 publications distributed
Investment Promotion activities undertaken: 5 Investment seminars 5 Investment pavilions 18 Sector specific presentations and 31 briefs 2 Presidential International Investor’s Council meetings
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2006/07 DELIVERABLES2006/07 DELIVERABLES
Various road shows and workshops were held to make communities aware of the services of the dti
The customer contact centre has been in-sourced which resulted in large cost savings & better accountability
Several publications disseminated
MTSF 2007 - 2010MTSF 2007 - 2010Marketing & Communication interventionsMarketing & Communication interventions
RESOURCE MANAGEMENTRESOURCE MANAGEMENT
Human Resources Targeted filling of 150 vacancies by 31 Jan. Filled 135 =
90%
Launched special recruitment project on identified posts via a recruitment agency
Establishment reflects a 25,8% vacancy rate at 28 February 2007
Extensive training provided via bursaries, in-house training, internships, Adult Basic Education & Training programs & Regional Trade & Investment Capacity building programs
Department certified for Employment Equity Act compliance
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RESOURCE MANAGEMENTRESOURCE MANAGEMENT
Finance
Unqualified audit report for 2005/06
Auditor General’s interim audit for 2006/07 – no major issues
Payment of suppliers – minimum 7 days and maximum 14 days
Yearly spending trend reflected in attached graph which reflects an average of 95% spending of allocated budget over the past four years
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6 YEAR6 YEAR EXPENDITURE TRENDS EXPENDITURE TRENDS
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0
1,000,000
2,000,000
3,000,000
4,000,000
R'0
00
Budget
Expenditure
Unspent
% Unspent
Budget 2,280,062 2,554,826 2,796,350 3,623,291 3,907,420 3,942,028
Expenditure 2,015,888 2,495,504 2,659,342 3,424,138 3,631,304 3,804,720
Unspent 264,174 59,322 137,008 199,153 276,116 137,308
% Unspent 12% 2% 5% 5% 7% 3%
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
the dti SPENDING TRENDSthe dti SPENDING TRENDS
REASONS FORREASONS FORUNDER-EXPENDITUREUNDER-EXPENDITURE
Over the past three years the under-expenditure was largely due toOver the past three years the under-expenditure was largely due tolimited spending on critical infrastructure resulting from the nature limited spending on critical infrastructure resulting from the nature of the incentive scheme which requires:-of the incentive scheme which requires:-
• Payment to be made only after expenditure is incurredPayment to be made only after expenditure is incurred
• Only 30% of the expenditure to be reimbursed, which has not provenOnly 30% of the expenditure to be reimbursed, which has not proven
optimal in attracting investment in infrastructureoptimal in attracting investment in infrastructure
The under expenditure in 2006/07 was largely due to:The under expenditure in 2006/07 was largely due to:
• R20m i.r.o. the joint dti/ Dept. of Health Staple Food Fortification R20m i.r.o. the joint dti/ Dept. of Health Staple Food Fortification project delayedproject delayed
• R70m i.r.o. the BPO&O project (project scheduling constraints)R70m i.r.o. the BPO&O project (project scheduling constraints)
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2007 - 20102007 - 2010STRATEGIC DeliverablesSTRATEGIC Deliverables
PART THREEPART THREE
MTSF 2007 - 2010MTSF 2007 - 2010
2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
This section will broadly cover the following areas:This section will broadly cover the following areas:
Enterprise & Industry Support & DevelopmentEnterprise & Industry Support & Development
Consumer & Corporate RegulationConsumer & Corporate Regulation
International Trade & InvestmentInternational Trade & Investment
Marketing & CommunicationMarketing & Communication
MTSF 2007 - 2010MTSF 2007 - 2010
2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENTENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT
Implementation of National Industrial Policy Implementation of National Industrial Policy Framework (NIPF)Framework (NIPF)
Over 40% of budget to support enterprise through Over 40% of budget to support enterprise through incentivesincentives
Develop a human capital strategy to support critical Develop a human capital strategy to support critical skills areas, including industrial centres of excellence skills areas, including industrial centres of excellence to develop, design & engineering capabilitiesto develop, design & engineering capabilities
MTSF 2007 - 2010MTSF 2007 - 2010
Continue Sector Strategy development in alignment with Continue Sector Strategy development in alignment with NIPF & implementation of key sector initiativesNIPF & implementation of key sector initiatives
•BPO & Tourism•Metals•Chemicals•Clothing & Textiles•Capital Equipment•Agro-processing•Creative Industries & Craft, including Film & TV
2006/07 DELIVERABLES2006/07 DELIVERABLES
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2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENTENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT
Over 40% of budget to support enterprise through Over 40% of budget to support enterprise through incentivesincentives
Develop a human capital strategy to support critical Develop a human capital strategy to support critical skills areas, including industrial centres of excellence skills areas, including industrial centres of excellence to develop, design & engineering capabilitiesto develop, design & engineering capabilities
MTSF 2007 - 2010MTSF 2007 - 2010
2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENTENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT
Continue technology support to enterprises via Continue technology support to enterprises via current schemescurrent schemes
Finalise regional growth support strategies, Finalise regional growth support strategies, including IDZsincluding IDZs
Increase targetted support for women owned Increase targetted support for women owned enterprisesenterprises
Implementation & monitoring of BBBEE strategy Implementation & monitoring of BBBEE strategy focusing on Codes of Good Practice and Advisory focusing on Codes of Good Practice and Advisory CouncilCouncil
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2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENTENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT
Increase financial support of the BBBEE through Increase financial support of the BBBEE through the DFIsthe DFIs
Increase financial support for small business Increase financial support for small business through Khula, including repositioning the agencythrough Khula, including repositioning the agency
Continue with financial support for co-operatives Continue with financial support for co-operatives through the co-operatives fundthrough the co-operatives fund
Finalise & implement review of current incentive Finalise & implement review of current incentive schemes to support NIPF & customised sector schemes to support NIPF & customised sector interventionsinterventions
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2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENTENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT
Continue & step up non-financial enterprise Continue & step up non-financial enterprise development support through effective SEDA development support through effective SEDA service delivery network providing the following:service delivery network providing the following:
Business ServicesBusiness Services
Training & mentorshipTraining & mentorship
Manufacturing supportManufacturing support
Technology supportTechnology support
Information & advice to businessesInformation & advice to businesses
MTSF 2007 - 2010MTSF 2007 - 2010
2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENTENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT
Continue & step up roll out of micro finance Continue & step up roll out of micro finance through SAMAF:through SAMAF:
Average of R62m disbursements per annumAverage of R62m disbursements per annum
Average increase of 2 000 borrowers per Average increase of 2 000 borrowers per annumannum
Average increase of 2 000 savers per annumAverage increase of 2 000 savers per annum
A minimum of 50 partner organisation for A minimum of 50 partner organisation for 2007/082007/08
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2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
CONSUMER & CORPORATE REGULATIONSCONSUMER & CORPORATE REGULATIONS
Corporate governance & company formation to be enhanced Corporate governance & company formation to be enhanced through enactment of new Companies Bill & institutional through enactment of new Companies Bill & institutional frameworkframework
Consumer rights & redress to be strengthened through enactment Consumer rights & redress to be strengthened through enactment of new Consumer Bill & institutional framework, as well as review of new Consumer Bill & institutional framework, as well as review of regulation of Estate Agentsof regulation of Estate Agents
Innovation & IP protection to be promoted by reviewing & Innovation & IP protection to be promoted by reviewing & reforming regulatory framework for intellectual property rightsreforming regulatory framework for intellectual property rights
Improving competition in concentrated sectors & reducing harm Improving competition in concentrated sectors & reducing harm to downstream industries by strengthening Competition law & to downstream industries by strengthening Competition law & institutionsinstitutions
Assessing effectiveness of existing regulation in areas of Liquor Assessing effectiveness of existing regulation in areas of Liquor & Lotteries & Lotteries
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2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
International Trade & InvestmentInternational Trade & Investment Pursue successful development outcome in WTOPursue successful development outcome in WTO Deepen regional integration/cooperation in Africa Deepen regional integration/cooperation in Africa
under NEPAD Framework, notably SADC and under NEPAD Framework, notably SADC and SACUSACU
Review customs union options following SADC Review customs union options following SADC Summit, Oct 2006Summit, Oct 2006
Pursue common policies and institutional Pursue common policies and institutional development in SACUdevelopment in SACU
Strengthen investment and trade links with Strengthen investment and trade links with dynamic emerging markets (key African countries, dynamic emerging markets (key African countries, India, Brazil, China, Gulf). India, Brazil, China, Gulf).
Develop 100 emerging exporters through a Small Develop 100 emerging exporters through a Small Exporter Development Programme Exporter Development Programme
MTSF 2007 - 2010MTSF 2007 - 2010
2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
International Trade & InvestmentInternational Trade & Investment Advance trade cooperation under IBSAAdvance trade cooperation under IBSA Align SA-EU TDCA/SADC-EU economic partnership Align SA-EU TDCA/SADC-EU economic partnership
agreementsagreements Implement SACU-EFTA FTA and raise awareness Implement SACU-EFTA FTA and raise awareness
of its opportunities to businessof its opportunities to business Pursue Trade and Investment Development Pursue Trade and Investment Development
Cooperation with USCooperation with US Implement revised Export and Investment Implement revised Export and Investment
strategies in alignment with NIPF and sector strategies in alignment with NIPF and sector prioritiespriorities
Review the strategic alignment of Foreign Office Review the strategic alignment of Foreign Office network to enhance trade and investment network to enhance trade and investment facilitationfacilitation
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2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES
Marketing & CommunicationsMarketing & Communications Intensify communication & outreach efforts Intensify communication & outreach efforts
focusing on major policy initiatives & offerings focusing on major policy initiatives & offerings with particular emphasis on second economywith particular emphasis on second economy
Build a positive profile, effectively manage Build a positive profile, effectively manage perceptions and protect reputation of the dtiperceptions and protect reputation of the dti
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CHALLENGESCHALLENGES
PART FOURPART FOUR
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INSTITUTIONALINSTITUTIONALCHALLENGESCHALLENGES
Recruiting and retaining requisite capacity & requisite Recruiting and retaining requisite capacity & requisite skillsskills
Ensuring continued good corporate governanceEnsuring continued good corporate governance
Ensuring continued sound financial managementEnsuring continued sound financial management
Oversight over dti agencies & their alignment to Oversight over dti agencies & their alignment to prioritiespriorities
Increase the budget to support the dti’s expanding Increase the budget to support the dti’s expanding mandatemandate
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RESOURCE MANAGEMENTRESOURCE MANAGEMENT
PART FIVEPART FIVE
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RESOURCE MANAGEMENTRESOURCE MANAGEMENT
Reducing the level of vacancies to less than 15%Reducing the level of vacancies to less than 15%
HR development & capacity buildingHR development & capacity building
Dedicated HRD strategyDedicated HRD strategy
Competency enhancement & developmentCompetency enhancement & development
Programme on investors in peopleProgramme on investors in people
University network – bursary programmeUniversity network – bursary programme
Development of supportive Development of supportive dti organisationaldti organisational culture culture
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RESOURCE MANAGEMENTRESOURCE MANAGEMENT
Maintain and improve best practice corporate Maintain and improve best practice corporate governance, including agenciesgovernance, including agencies
Information TechnologyInformation Technology
Continue with implementation of Enterprise Continue with implementation of Enterprise Content Management strategyContent Management strategy
Completion of Disaster Recovery projectCompletion of Disaster Recovery project
Strengthen Supply Chain ManagementStrengthen Supply Chain Management
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MTEF ALLOCATIONMTEF ALLOCATION
dti PROGRAMMES 2006/07 2007/08 2008/09 2009/10
1. Administration 323,069 361,367 366,901 383,863
2. International Trade & Economic Dev. 133,067 140,680 147,536 154,733
3. Enterprise & Industry Development 1,590,064 1,722,560 1,519,159 1,576,728
4. Consumer & Corporate Regulation 153,407 147,098 153,996 161,338
5. The Enterprise Organisation 1,466,169 2,082,806 2,062,195 2,576,353
6. Trade & Investment South africa 220,914 306,770 330,479 346,356
7. Marketing 55,338 84,302 87,098 92,052
Total 3,942,028 4,845,583 4,667,364 5,291,423
Year on Year % increase/Decrease 22.92% -3.68% 13.37%
R'thousands
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MTEF ALLOCATIONMTEF ALLOCATIONADDITIONAL FUNDINGADDITIONAL FUNDING
2007/08 2008/09 2009/10
Salary Adjustments – 1,000 3,000
Office of Chief Information Officer 8,000 5,000 5,000 SEDA 50,000 50,000 50,000 NEF 300,000 40,000 40,000 Co-operatives 10,000 10,000 30,000 NML 8,000 9,000 10,000 RIDS 7,000 – - Khula 40,000 35,000 30,000 Women Empowerment Fund 10,000 10,000 10,000 BPO 20,000 40,000 130,000 Staple Food Fortification 15,000 10,000 - Film & TV Programme 100,000 100,000 10,000 Sector Development Programme 10,000 20,000 30,000 CIP (ALCAN) 300,000 Investment & Exports 10,000 10,000 10,000
Total 888,000 340,000 358,000
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ANALYSIS OF CURRENT MTEFANALYSIS OF CURRENT MTEF
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2007/08 2008/09 2009/10R'000 R'000 R'000
Total allocated budget A 4,845,583 4,667,364 5,291,423Less: Payment to agencies B B/A 1,802,758 37.20% 1,608,479 34.46% 1,683,771 31.82%Sub Total C 3,042,825 3,058,885 3,607,652Less: Compensation D D/C 323,457 10.63% 343,223 11.22% 358,555 9.94%Sub Total E 2,719,368 2,715,662 3,249,097Less: Incentives F F/A 2,027,818 41.85% 2,002,810 42.91% 2,515,936 47.55%
Incentives capital G G/A 1,001,540 20.67% 911,361 19.53% 1,266,794 23.94% Other Incentives H H/A 1,026,278 21.18% 1,091,449 23.38% 1,249,142 23.61%Sub Total I 691,550 712,852 733,161Less: Goods & Services J J/A 548,371 11.32% 572,066 12.26% 595,046 11.25%Sub Total M 143,179 140,786 138,115Less: Other payments N N/A 125,587 2.59% 126,008 2.70% 120,849 2.28%Less: Capital O O/A 17,592 0.36% 14,778 0.32% 17,266 0.33%
0 0 0
ANALYSIS OF CURRENT MTEFANALYSIS OF CURRENT MTEF
On average the structure of the budget allocation over the MTEF On average the structure of the budget allocation over the MTEF period is:period is: 34% to agencies of 34% to agencies of the dtithe dti
44% to incentive payments44% to incentive payments
7% to compensation (11% after deduction to agencies)7% to compensation (11% after deduction to agencies)
12% to goods & services, of which a large percentage are for committed12% to goods & services, of which a large percentage are for committed
expenditureexpenditure
3% to Capital & Other Payments3% to Capital & Other Payments
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STRUCTURESTRUCTURE
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Ministry
Office of the DG
Policy co-ordination
International Trade and Economic Development
Enterprise and Industry Development
Consumer and Corporate Regulation
The Enterprise Organisation
Trade and Investment South
Africa
Marketing
18 Agencies
ECONOMIC CLUSTERECONOMIC CLUSTER
PART SIXPART SIX
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ECONOMIC CLUSTERECONOMIC CLUSTER
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the dti chairs the Economic Cluster of Departments The Cluster’s three-year programme of action for 2007-2009 was adopted at the Cabinet Lekgotla in January 2007The programme of action focuses on:
- Increasing economic efficiencies- Promoting dynamic sectors- Integrating small and micro
enterprises
CLUSTER’S KEY INTERVENTIONSCLUSTER’S KEY INTERVENTIONS
(3) Integrate small- and micro-enterprises9. Integrated small enterprise service delivery (incl. comprehensive
procurement strategy, marketing cooperatives, business developmentsupport and access to finance)
10. Reduced SMME regulatory burdens (incl. by-laws)
(2) Promote dynamic growth sectors7. Implement industrial policy framework, focusing on key sectors and
leveraging public spending 8. Supportive macro-economic management (esp. competitive and stable
real effective exchange rate)
(1) Increase economic efficiencies 1. Strengthen economic regulator capacity in key industries2. Amend competition policy to support effective regulation 3. Increase access, uptake & usage of ICT infrastructure 4. Phased roll-out of overhauled public transport network 5. Monitor implementation & impact of infrastructure roll-out6. Coordinated NHRD, with focus on ASGI-SA priorities
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ADDITIONAL STRATEGIC CLUSTERADDITIONAL STRATEGIC CLUSTER
ICT Infrastructure, especially Broadband Critical to success of knowledge economy and integration of
marginalised households into the economy
Public transport Intervention that will support labour mobility and reduced cost of
living
Energy Economy needs more energy whilst rebalancing energy sources
Transformation of Second Economy Second Economy interventions are crucial to the achievement of the
2014 unemployment and poverty targets
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CONCLUSIONCONCLUSION
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The department will build on the considerable momentum already established i.t.o its The department will build on the considerable momentum already established i.t.o its strategic objectives, focusing on: strategic objectives, focusing on:
Coordinated implementation of Economic Cluster projects as per theCoordinated implementation of Economic Cluster projects as per the
three-year Cluster POA and the NIPFthree-year Cluster POA and the NIPF Implementation of sector strategies that have been completed to promote Implementation of sector strategies that have been completed to promote investment,investment,
diversification and job creationdiversification and job creation Strengthening of regional integration initiatives & support for NEPADStrengthening of regional integration initiatives & support for NEPAD Strengthening of enterprise development initiativesStrengthening of enterprise development initiatives The implementation and enforcement of policy & legislation in the areas of The implementation and enforcement of policy & legislation in the areas of companies,companies,
consumers, credit, competition & BBBEEconsumers, credit, competition & BBBEE Implementation of Export & Investments strategies and the pursuit ofImplementation of Export & Investments strategies and the pursuit of
developmental outcomes in both WTO & bilateral trade negotiationsdevelopmental outcomes in both WTO & bilateral trade negotiations
This will requires strengthened monitoring and evaluation, a technically skilled and highly This will requires strengthened monitoring and evaluation, a technically skilled and highly motivated workforce, continued improvements in government coordination, and continued motivated workforce, continued improvements in government coordination, and continued engagement with and support of pengagement with and support of p
arliament and other stakeholdersarliament and other stakeholders
MTSF 2007 - 2010MTSF 2007 - 2010
THANK YOUTHANK YOU