USAASA & USAF Strategic Plans Annual Performance Plans 2017/2018 Presentation to Portfolio Committee on Telecommunications & Postal Services “Universal Access and Service to ICT for All” 09th May 2017

Table of Contents Mission, Vision & Values Legislative Mandate of USAASA and USAF Legislative Mandate and Policy mandate Policy Mandate Linking Outcomes and Goal/Objectives to DTPS USAASA Programme Performance Indicators & Annual Targets for 2017/18 USAASA Detailed reconciliation of Performance Targets with the Budget and MTEF USAF’s Funding Activities in the Broadband Infrastructure Building Blocks USAF Programme Performance Indicators & Annual Targets for 2017/2018 USAF Detailed reconciliation of Performance Targets with the Budget and MTEF Conclusion

Vision, Mission & Values To facilitate the rollout of adequate Information and Communication Technology (ICT) infrastructure to enable universal access to under-serviced areas in South Africa. To facilitate ICT service to under-serviced areas and thereby contributing to the reduction of poverty and unemployment in South Africa. To promote and pursue the goal of Universal Access and Services and contribute to the sharing and preservation of information in order to build South Africa’s sustainable knowledge society. Mission: Batho Pele – We believe in providing excellent, efficient and effective service to all customers and stakeholders. Integrity – We uphold high standards of trust; condemn bribery and corruption; and uphold honesty and respect in all interactions with stakeholders. Accountability – We foster employee ownership and responsibility in ensuring quality service. Innovation – We support employee creativity in delivering all our services. Transparency – We encourage openness in all our activities. Teamwork – We strive to create a harmonious work environment, where all employees and contributors are respected. Values: Vision: “Universal Access and Service to ICT for All”.

Legislative Mandate of USAASA NDP In line with the NDP, USAASA through USAF projects provides broadband infrastructure and ICT connectivity in the underserved SA Connect Provides guidance on building an access or core network, coordinates building programmes for efficiency, and promote universal access through efficient spectrum allocation, and focuses on driving uptake and usage through the provision of affordable services and devices, using the government as an anchor tenant for the core network SIP 15 USAASA always ensures the alignment of the USAF projects to the SIP 15 goal of “ 100% access to digital ICTs to all South Africans by 2020 as a driver of new economic opportunities and digital equity” USAASA Mandate strive to promote the goal of universal access and universal service; foster the adoption and use of new methods of attaining universal access and universal service conduct research into and keep abreast of developments in the Republic and elsewhere on information communication technology, electronic communications services and electronic communications facilities manage the Universal Service and Access Fund (USAF) in accordance with the provisions of the Act provide incentives to network licensees to construct operate and maintain networks in under-serviced areas. MTSF Outcome 9 Point Plan Outcome 1 Quality basic education Applicable to broadband roll-out. Nr 7. Unlocking potential of SMME’s; Cooperatives; townships and rural enterprises Nr 8. Reform & boosting of the role of SOE’s ICT or broadband infrastructure rollout Outcome 2 A long and healthy life for all Outcome 3 Decent employment through inclusive economic growth Outcome 4 Skilled and capable workforce to support an inclusive growth path Outcome 5 An efficient, competitive and responsive economic infrastructure network South Africa Connect Policy Target International Measurements Broadband access in Mbps user experience 90% at 5Mbps 50% at 100Mbps WEF Ranking = 48 (70) World Economic Forum Global Competitiveness Index 2016-2017 ITU Ranking 88 ICT Development Index 2016

The Legislative Mandate Legislative Mandate & Policy Mandate The Legislative Mandate The Constitution Constitution: “… improve the quality of life of all citizens and free the potential of each person” and, in doing so, enables equality in the rights, privileges and benefits of citizenship, including the guarantees of freedom of expression and association in the Bill of Rights in digital world. “ Public Finance Management Act, 1999 Recognises USAASA & USAF as a schedule 3A public entity under the guidance of the Accounting Authority established in terms of section 49 of the PFMA South Africa Connect Policy, 2013 To present a vision, strategy and a long-term plan that is immediately implementable and that will catalyse broadband connectivity in South Africa: robust and cost effective broadband solution to universal, affordable broadband access market structure and associated regulatory regime required to induce sufficient public and private investment. mechanisms for greater co-ordination at all tiers of government, to enable more equitable access to broadband and to manage the removal of impediments to broadband network extension. co-ordination between state owned entities through clear role definition, integration of planning, monitoring and evaluation. Facilitate infrastructure planning through the mapping of existing broadband networks, co-ordination of deployment plans of operators and infrastructure sharing in order to limit the duplication of civil works. vision, model and plan towards a world class open-access national broadband network and harnessing public and private sector contributions, capabilities and resources.

National Development Plan (NDP): Policy Mandate National Development Plan (NDP): The ICT sector by 2030 will underpin the development of a dynamic and connected information society and a vibrant knowledge economy that is more inclusive and prosperous. A seamless information infrastructure will… New Growth Path: One of the job creation drivers identified as part of the New Growth Path, the national 5-year economic plan for the country, is the element of the knowledge economy – an economy that is underpinned by access to affordable high speed broadband… Nine Point Intervention Plan: Among the Nine-Point Plan priorities of Government aimed at igniting growth, is that the State reform and boosting the role of state-owned companies; ICT infrastructure or broadband roll-out; water, sanitation and transport infrastructure. Another is Operation Phakisa (a programme aimed at accelerate implementation of the NDP). Operation Phakisa in Education is envisaged to, amongst other things, address the need to train and prepare teachers to integrate ICT in their classrooms and change their teaching practices aligned to the ICT resources. SIP-15: Expanding Access to Communication Technology : AIM: 100% access to digital ICTs to all South Africans by 2020 as a driver of new economic opportunities and digital equity. Interim implementing agencies include: Sentech, Broadband Infraco, Telkom, SANRAL, Eskom, Transnet, USAASA, and the private sector.

Linking Outcomes and Goal/Objectives to DTPS MTSF Outcomes/ DTPS Goals 9 Point Plan USAASA Strategic Goals & Objectives Outcome 4 Outcome 4 Optimally functional Department and SOCs that effectively deliver on their respective mandates Optimally functional Department and SOCs that effectively deliver on their respective mandates SG 1: Optimal organizational functioning towards the achievement of a Clean Audit SO 1: Improved audit outcomes SO 2: Improved risk maturity profile SO 3: Improved organizational efficacy through integrated business process and automated systems SO 4: Improved employee performance SO 5: Increased efficacy (efficiency and effectiveness) of legal services SO 6: Improved brand and reputation of USAASA   DTPS DTPS SO 4.1 Improve performance of SOC’s through proactive and stringent oversight SO 4.1 Improve performance of SOC’s through proactive and stringent oversight Outcome 2 Outcome 2 South Africa has a modern, sustainable and competitive postal and telecommunications sector South Africa has a modern, sustainable and competitive postal and telecommunications sector SG 2: Increased USAASA capability as an information hub on universal service issues SO 7: Increased evidence –based planning SO 8: Improved quality, reliability and integrity of performance information DTPS DTPS SO 2.1 Develop and implement ICT policy and legislation aimed at improving access and affordability of ICTs SG 2: Increased USAASA capability as an information hub on universal service issues SO 9: Improved quality of research and evaluation outputs Outcome 3 An Inclusive Information Society and Knowledge Economy driven through a comprehensive e-Strategy and access to Government services DTPS SO 3.1 Develop a National e- Strategy that will give priority to e-Government Services

USAASA Programme Performance Indicators & Annual Targets for 2017/18 Programme 1: Business Support The indicators in this programme are directed towards performance improvement and development, compliance, accountability and sound financial systems. Strengthening of key processes will have commenced in 2016/2017 and will continue during the 2017/2018 period to increase the Agency’s efficacy Strategic Objectives Performance Indicators Annual Target 2017-2018 Quarterly Targets Quarter1 Quarter2 Quarter3 Quarter4 Improved audit outcomes Percentage compliance with the PFMA and Treasury Regulations 100% Percentage implementation of the AG audit action plan Number of repeat AG findings detailed in the audit action plan Improved risk maturity profile Percentage completion of quarterly risk management activities as per the approved risk management plan Improved organisational efficacy through integrated business processes and automated systems Percentage availability of SAP/ERP system to support USAASA/ USAF business processes and operations 98% - 95% Improved employee performance Percentage implementation of the Annual Training Plan, to enhance individual and organisational performance through training interventions 90% 0% 30% 60%

USAASA Programme Performance Indicators & Annual Targets for 2017/18 Programme 1: Business Support The indicators in this programme are directed towards performance improvement and development, compliance, accountability and sound financial systems. Strengthening of key processes will have commenced in 2016/2017 and will continue during the 2017/2018 period to increase the Agency’s efficacy Strategic Objectives Performance Indicators Annual Target 2017-2018 Quarterly Targets Quarter1 Quarter2 Quarter3 Quarter4 Improved employee performance Percentage of signed Performance Agreements (PA's) calibrated to support the organisational goals and objectives and APP and Employee Performance Assessments (EPA's)moderated within the stipulated timeframes in accordance with the Performance Management Policy 100% - Percentage implementation of climate survey action plans 10% 40% 60% Increased efficacy (efficiency and effectiveness) of legal services Percentage of legal services (contracts and legal opinions) in compliance with the approved quality metrics

USAASA Programme Performance Indicators & Annual Targets for 2017/18 Programme 1: Business Support The indicators in this programme are directed towards performance improvement and development, compliance, accountability and sound financial systems. Strengthening of key processes will have commenced in 2016/2017 and will continue during the 2017/2018 period to increase the Agency’s efficacy Strategic Objectives Performance Indicators Annual Target 2017-2018 Quarterly Targets Quarter1 Quarter2 Quarter3 Quarter4 Improved brand and reputation of USAASA Number of annual industry review symposiums conducted by target date 1 - Beneficiary brand awareness level 40% Stakeholder satisfaction level 50% Number of digital summits held in established Smart Communities bringing stakeholders to practically showcase value adding systems and deliverables Increased support to SMME and BBBEE development Number of SMME engagement sessions held to develop and educate suppliers 2 SMME open days concluded Percentage of budget spent on SMMEs and BBBEE in support of USAF project delivery 80%

USAASA Programme Performance Indicators & Annual Targets for 2017/18 Programme 1: Business Support The indicators in this programme are directed towards performance improvement and development, compliance, accountability and sound financial systems. Strengthening of key processes will have commenced in 2016/2017 and will continue during the 2017/2018 period to increase the Agency’s efficacy Strategic Objectives Performance Indicators Annual Target 2017-2018 Quarterly Targets Quarter1 Quarter2 Quarter3 Quarter4 Increased support to SMME and BBBEE development Percentage utilisation of local skills and service providers by awarded bidder 50% Programme 2: Business Intelligence Increased USAASA capability as an information and knowledge hub on universal access and universal service issues Strategic Objectives Performance Indicators Annual Target 2017-2018 Quarterly Targets Quarter1 Quarter2 Quarter3 Quarter4 Increased evidence-based planning Board Approved Strategic and Annual Performance Plans submitted by target date Final 2018/19 plans submitted on January 2018 1st draft plans submitted by 31 August 2017 2nd draft plans submitted by 30 November 2017 Final plans submitted by January 2018 Improved quality, reliability and integrity of performance information Percentage compliance with performance information standards: Compliance Accuracy Usefulness Evidence based 100%

USAASA Programme Performance Indicators & Annual Targets for 2017/18 Programme 2: Business Intelligence Increased USAASA capability as an information and knowledge hub on universal access and universal service issues Strategic Objectives Performance Indicators Annual Target 2017-2018 Quarterly Targets Quarter1 Quarter2 Quarter3 Quarter4 Improved quality, reliability and integrity of performance information Number of material AG audit findings and significant Internal Audit findings on the reliability and usefulness of the reported performance Improved quality of research and evaluation outputs Number of research papers produced on national and global ICT trends approved by board 1 Conceptual Framework and Business Case developed on Digital Development Fund Bill by target date 1Conceptual Framework and 1 Business Case 1 Conceptual Framework Number of impact evaluation studies conducted Smart Communities Masterplan developed on smart communities developed by target date 1 Concept Document by 31 March 2018 1 Concept Document Baseline of economic activities in the established smart communities to measure impact of digitisation

Communication and branding USAASA Detailed reconciliation of Performance Targets with the Budget and MTEF   Programme 1: Business Support Audited Outcomes Estimated Expenditure Medium - Term Expenditure Estimate (R’000) 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 1. Percentage compliance with the PFMA and Treasury Regulations - Employee costs Percentage implementation of the AG audit action plan 3. Number of repeat findings detailed in the AG audit action plan 4. Percentage completion of quarterly risk management activities as per the approved Risk Management Plan Percentage availability of SAP/ERP system to support USAASA/USAF business processes and operations Percentage implementation of the Annual Training Plan and Reports (ATR), to enhance individual and organisational performance through training intervention 7. Percentage signed PA calibrated and EPAs moderated 8. Percentage implementation of Climate Survey plans 9. Percentage of legal services in compliance with the approved quality metrics Legal services Legal services 10. Number of annual industry review symposiums Communication and branding 11. Beneficiary brand awareness level 12. Stakeholder satisfaction level 13. Number of digital summits held 14. Number of SMME engagement sessions Finance and SCM 15. Percentage of contracts awarded to SMME and BBBEE budget spent 16.Percentage utilisation of local skills and service providers Total expenses : 65 191 76 745 67 695 73 980 78 314 82 763

USAASA Detailed reconciliation of Performance Targets with the Budget and MTEF   Programme 2: Business Intelligence Audited Outcomes Estimated Expenditure Medium - Term Expenditure Estimate (R’000) 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 17. Board approved Strategic and APP submitted by target date - Planning and M&E Percentage compliance with Performance Information Standards 19. Number of material AG audit findings and significant Internal Audit findings 20. Number of research papers produced Research 21. Conceptual framework and Business Case developed on DDF Bill 22. Number of impact evaluation studies conducted 23. SMART Communities Masterplan developed 24. Baseline of economic activities in the established Smart Communities Total expenses : 1 350 1 703 1 760 1 795

The Universal Service & Access Fund A Schedule 3A Entity USAF The Universal Service & Access Fund A Schedule 3A Entity

Linking Outcomes and Goal/Objectives to DTPS MTSF Outcomes/ DTPS Goals 9 Point Plan USAF Strategic Goals & Objectives Outcome 1 Broadband connectivity that provides secure and affordable access for all citizens to education, health and other government services and stimulates socio-economic development No. 8 Reform & boosting of the role of SOE’s ICT or broadband infrastructure rollout. SG 1: increased connectivity to underserviced and un-served areas SO 1: Increased rollout of electronic communications infrastructure in underserviced areas. SO 2: Increased access to digital broadcasting services SO 3: Increased digital literacy to stimulate end – user demand through sustainable community broadband services. DTPS SO 1.1 Coordinate the Broadband connectivity to achieve 100% population coverage by 2020

USAF’s Funding Activities in the Broadband Infrastructure Building Blocks

Programme Performance Indicators USAF Programme Performance Indicators and Annual Targets for 2017/2018 Programme Performance Indicators Reporting Period 2017/2018 Annual Target Quarterly Targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 STRATEGIC OBJECTIVE: INCREASED DIGITAL LITERACY THROUGH THE ESTABLISHMENT OF SMART VILLAGES Number of smart communities established   Bi-annually 2 1 Number of ICT training programmes implemented to improve the digital literacy rate of targeted groups Annually 3 ICT training programmes 1 ICT training programme targeting youth 1 ICT training programme targeting women 1 ICT training programme targeting persons with disability 2. STRATEGIC OBJECTIVE: INCREASED ROLL OUT OF ELECTRONIC COMMUNICATION INFRASTRUCTURE IN UNDERSERVICED AREAS Number of underserviced local municipal areas with access to electronic communication infrastructure Quarterly 50% of network deployed 100% network deployed Network commissioned and signed off in the underserviced local municipal area Number of public institutions utilised as anchor clients to the broadband networks 4 Anchor Clients Anchor clients confirmed with Municipality Number of free public Wi-Fi hotspots deployed 40 Hotspots deployed 16 Hotspots deployed 24 hotspots deployed Number of existing sites with connectivity maintained 38 ICT centres 93 clinics 129 educational institutions 3. STRATEGIC OBJECTIVE: INCREASED ACCESS TO DIGITAL BROADCASTING SERVICES Number of set-top boxes and antennae procured 181 399 90 699 90 700 8. Percentage of set-top boxes and antennae distributed for registered users 60% 30%

USAF Detailed reconciliation of Performance Targets with the Budget and MTEF   Programme 1: Operations Audited Outcomes Estimated Expenditure Medium - Term Expenditure Estimate (R’000) 2014/15 2015/16 2016/17 2017/18 2018/19 2019/2020 Project Costs Allocation (R) 705 1.080 3 746   3 522 3 727 3 936 Number of smart communities established Number N/A 2 Allocation (R ) 1 000 1 056 1 115 Number of ICT training programs implemented to improve the digital literacy rate of targeted groups 3 2 000 2 112 2 230 Number of underserviced local municipal areas with access to electronic communication infrastructure (Broadband) 33 953 41 720 32 634 28 227 29 869 31 542 Number of public institutions utilized as anchor clients to the broadband networks 1 4 Number of free public Wi-Fi hotspots deployed ( Broadband) 63 39 40 Number of existing sites with connectivity maintained Number – ICT centres 153 38 Number – Clinics 104 93 197 246 296 Number of Educational institutions 149 127 184 22 547 14 367 18 776 19 865 21 017 22 194 Number of set-top boxes and antennae procured 1 500 000 58 460 181 399 191 920 202 667 9 664 4 267 589 384 79 098 287 880 304 001 Percentage of set-top boxes and antennae distributed for registered users 24% 35% 60% 75% 90% Total Expenditure ( R ) 70 126 61 434 644 540 133 712 345 661 365 018