Economic Development Department Organisational structure Presentation to the Portfolio Committee 06 April 2011

Presentation outline Regulatory framework Process for finalising the approved organisational structure Organisational structure Funding of structure Funded posts Staff complement Equity status Recruitment process Concluding remarks

Regulatory framework Chapter III.B.2 of the Public Service Regulations Subject to regulation B.2A, an executing authority shall, based on the strategic plan of the department- (a) determine, after consultation with the Minister, the department’s organisational structure in terms of its core and support functions; (b) define the posts necessary to perform the relevant functions while remaining within the current budget and medium-term expenditure framework of the department, and the posts so defined shall constitute the department’s approved establishment; (c) grade proposed new jobs according to the job evaluation system referred to in Part IV; and (d) engage in the human resource planning in accordance with regulation III D with a view to meeting the resulting human resource needs.

Regulatory framework, cont Chapter III.B.2A of the Public Service Regulations Directives issued in terms of section 3(3)(e) of the Act, shall specify which determinations on the organisational structure of the department, shall be subject to consultation with the Minister. For purpose of such consultation, the information to be supplied shall be set out in such directive.

Process for finalising the structure Drafted the Strategic Plan (May-June 2009) Developed an organisational structure aligned to Strategic Plan (September 2009) The approved structure consists of 265 posts Minister consulted with MPSA and approved organisational structure (December 2009)

Organisational Structure Director General Office of the Director General Branch: Economic Policy Development Branch: Economic Planning & Coordination Branch: Economic Development Social Dialogue Chief Directorate: Corporate Services Office of the Chief Financial Officer Director: Internal Audit

Programme 1 – Administration Overview of functions: Provide strategic support and administrative service to the Minister and Deputy Minister Engagements with Cabinet, Parliament, government at national, provincial and local level, government entities and SOEs Engagements with international economic agencies, foreign economic representatives Stakeholders including social partners, communities, the media and the public Provide strategic support and administrative service to the Director-General Strategic advice and support on legislation, policies, policy alignment and coordination Ensure compliance regarding planning and reporting requirements Support the Department’s participation in the Cluster system Support to Ministry and branches on operational and administrative matters Ensure effective document flow Provide internal audit and risk management services Provide operational and administrative support to the Department Legal services, human resource management, information technology services, financial management and related services, communication and events management services

Programme 1 – Administration To render an effective efficient support and administration to the Minister, Deputy Minister and Department ___________ Administration Purpose: Ministry Office of the Director-General Office of the CFO Corporate Services Directorate: Internal Audit

Programme 2 – Economic Policy Development Overview of functions: Coordinate the implementation of the Growth Path Develop papers and policy proposals, hold policy platforms Consult with departments, municipalities, entities and SOEs Develop economic policies and sector strategies Identify macro and micro economic policy options Outline and analyse future paths of the economy Quantitatively analyse the likely impact of policy options Promote broad-based BEE Work to ensure the meaningful participation of the majority Transform and mainstream the second economy Develop policies to transform second economy activities Establish an Economic Development Institute Provide a platform for economic researchers and practitioners Provide analysis of data collected by the state and other institutions

Programme 2 – Economic Policy Development ___________________________ To develop economic policy Purpose: Growth Path and the Creation of Decent Work Economic Policy Broad-based Black Economic Empowerment Second economy Economic Development Institute and Research

Programme 3 – Economic Planning & Coordination Overview of functions: Develop sector, spatial and national economic plans Develop economic plans for SA Promote the development of economic development action plans, particularly for key and distressed areas Build the coherence of provincial and local economic development plans Promote economic development in the major sectors of the economy Promote investment for economic development Provide oversight and strategic direction to DFIs Channel and direct public, and where feasible and appropriate, private investment into economic development

Programme 3 – Economic Planning & Coordination Overview of functions, cont Promote competitiveness for trade and decent work Oversight of and policy and strategic direction to the ERBs Promote African and regional economic development Engage with international agencies and multilateral institutions Pursue economic opportunities with major economic groupings including BRICS, EU and USA Leverage state budgeting, financing and procurement processes Undertake research and analysis on the government’s developmental programmes and processes to ensure alignment with NGP To identify opportunities for improving local procurement and production Grow the Green Economy Identify, develop and support projects, incentives and other measures to promote industries that create jobs and have lower or no carbon emissions in energy, agriculture, manufacturing and service sectors, especially tourism

Programme 3 - Economic Planning & Coordination To promote economic planning and coordination ___________________ Purpose: Spatial, Sector and National Economic Planning Investment for Economic Development Competitiveness for Trade and Decent Work Economic Development, State Budgeting and Financing and Procurement Processes Green economy

Programme 4 – Economic Development & Dialogue Overview of functions: Lead national social dialogue and implement strategic frameworks Consult on and coordinate government’s policy input and contributions to social dialogue on economic development matters Negotiate national economic development and decent work pacts Coordinate the implementation of framework agreements Engagement in sector and workplace dialogue Develop partnership agreements in key sectors and workplaces Support capacity building for economic development Promote research output and knowledge among social partners through the establishment and administration of a Social Partner Fund Periodically convene an Economic Advisory Panel Create and coordinate knowledge networks Convene an annual Economic Development Conference Foster productivity, entrepreneurship and innovation Develop a policy framework for the increasing productivity, enhancing innovation and entrepreneurship

Programme 4 – Economic Development & Dialogue Economic Development and Dialogue To foster economic development by promoting social dialogue _________________ Purpose: National Social Dialogue and Strategic Frameworks Sector and Workplace Social Dialogue Capacity Building for Economic Development Productivity, Entrepreneurship and Innovation

Summary of the structure per programme No of posts % Programme: Administration 86 32 Programme: Economic Policy Development 68 20 Programme: Economic Planning & Coordination 81 31 Programme: Economic Development & Social Dialogue 30 11 Total 265 Ratio of 2 line staff to 1 support staff

Funding the structure In December 2009 received medium-term allocation (excluding transfers) of approximately: Funding the approved structure would cost approximately R160m per year (personnel budget) FY 2010/11 2011/12 2012/13 Allocation R100m R130m R150m For personnel R60m R75m R90m

the medium term* Programme No of posts for 2010/11 Funded posts over the medium term* Programme No of posts for 2010/11 No of posts for 2011/12 No of posts for 2012/13 % Programme: Administration 54 62 44 Programme: Economic Policy Development 12 20 26 18 Programme: Economic Planning and Coordination 11 33 38 27 Programme: Economic Development and Social Dialogue 9 14 16 Total 98 129 142 *Please note: the figures are estimates and will vary according to the levels of staff recruited (Ratio closer to 1:1 Line function 56% vs Support staff 44%)

Staff complement as at 22 March 2011 Programme No of funded posts for 2010/11 No of posts filled - Permanently No of posts filled on contract Total Programme: Administration 54 28 20 48 Programme: Economic Policy Development 12 3 8 11 Programme: Economic Planning & Coordination 7 4 Programme: Economic Development Social Dialogue 9 6 98 41 38 79 In addition to the above13 staff members will join the Department on a permanent basis as from 1 April 2011

Staff complement per salary level Filled permanent Filled contract Total 16 1 - 15 14 10 7 17 13 4 8 12 5 2 11 9 3 6 42 37 79

Equity Status as at 22 March 2011

Recruitment process The recruitment process is actively in progress: Job evaluation process: Public Service Regulations directs that before a newly created post is filled, it must be evaluated to determine its level 96 positions have been evaluated through the assistance of DPSA Advertisement of posts: 28 positions in the line function have been advertised and are being filled (shortlisting, competency assessments, interviews, submission for approval) Recruitment Strategies: The Department embarked on Executive Search for critical posts Ministry of Women, Youth and Disabilities contacted regarding a database of People with Disabilities

Concluding remarks EDD has funding for 129 posts in the coming year Approved structure (265 posts) cannot be funded during the current MTEF without an increase in the baseline In filling posts EDD must consider the ratios of line to administrative staff and senior management to middle management Recruitment will continue apace, within budgetary constraints

Siyabonga