Select Committee on Trade and International Relations Seda Annual Report 2010/11 Presentation to: Select Committee on Trade and International Relations H. Lupuwana, CEO 2 November 2011

Contents 1 Delegation details Acronyms 2010/2011 Management Report from the Auditor-General 2010/2011 Auditor-General Opinion Performance Highlights Performance Trends (key indicators) Provincial Analysis

Contents 2 Statement of financial performance Seda and Stp Vote 36 funding Development Areas Future plans Funds leveraged from Provincial Partners Co-location points STP – involvement of Provincial Partners CPPP – Involvement of Provincial Partners

Delegation Details 3 Name Designation Mr L Mngomezulu Board Chairperson Ms H Lupuwana Chief Executive Officer Ms M Hogendoorn Chief Financial Officer Mr K Slabbert Chief Operations Officer Mr R Alummoottil Executive Manager: Seda Technology Programme Mr L Njenge Senior Manager: Strategy and Organisational Performance Management

Acronyms 4 CPPP Community Public Private Partnership DM District Municipality dti Department of Trade and Industry IT Information Technology LM Local Municipality MTEF Medium Term Expenditure Framework Seda Small Enterprise Development Agency SMME Small Medium and Micro Enterprise Stp Seda Technology Programme

2010/2011 Management Report from the Auditor-General 5 No matters reported that affect the Audit Opinion. No exceptions were reported by the IT Auditors. Management has addressed the majority of the issues that were raised in the prior year’s Management Report. No matters reported under lack of Service Delivery.

2010/2011 Auditor-General Opinion 6 Unqualified Audit Opinion on Annual Financial Statements sustained for three consecutive years. No emphasis of matter. Unqualified Opinion expressed on Performance Information. No non-compliance with laws and regulations. No matters to report under Supply Chain Management. No significant deficiencies in internal control.

Performance Highlights 7 Service delivery achievements (target in brackets) 93% (80%) client satisfaction levels with quality of Seda services. 37% (35%) of assisted clients indicated an increase in turnover. 27% (25%) of assisted clients indicated an increase in number of people employed. Payments worth R198 million facilitated by the SMME Payment Assistance Hotline. TradePoint assisted in excess of 200 small businesses.

Performance Highlights 8 Service delivery achievements (target in brackets) 1,479 (500) clients supported by the Seda Technology Programme (Stp). 893 (1,000) direct jobs created Stp. 26 (10) small businesses assisted with technology transfer support, a further 56 assessed and referred to other institutions. 129 (125) small businesses supported through conformity assessments and product testing. Improvement in media reporting with a 194: 4 ratio (target 5:1). Efficient financial management– 98.7% of approved funds utilised.

Performance Trends – Key Indicators 9

Performance Trends – Key Indicators 10 More focus on Impact

Provincial analysis 11 Conversion above targeted 40% i.e. 42% of new clients attracted to clients registered, and 47% of clients registered to clients working with

Statement of Financial Performance 12 Revenue 2010/2011 (R mil) 2009/2010 (R mil) MTEF funding 461.1 409.5 External earnings 23.0 61.3 Interest received 11.7 13.9 TOTAL REVENUE 495.8 484.7 TOTAL EXPENSES (509.3) (521.4) DEFICIT FOR THE YEAR (13.5) (36.7)

Vote 36: Seda & Stp funding 13 Vote 36: Seda & Stp funding INCOME FY 11/12 (R mil) Year on year increase FY 12/13 FY 13/14 FY 14/15 Seda – dti from MTEF budget 413,3 2.5% 423,6 5.5% 446,9 6.0% 473,8 Stp – dti from MTEF budget 110,0 2.7% 113,0 119,2 126,4 TOTAL 523,3 536,6 566,1 600,2

Development Areas 14 Ensuring that Seda has sufficient funding to service the 20% market and implement other key programmes. Attracting and retaining key, skilled staff. Skills levels of key staff especially in operations/service delivery. More stringent criteria for SMME business development service provider selection and management. Elevating the SMME agenda at a national and political level.

Future Plans 15 Strengthening of existing and creation of new partnerships. Upscaling of the incubation programme and other key programmes. Focused support in priority sectors. Proactively identifying and working with small and medium enterprises (20% market). Continued rural enterprise development support, focusing on large scale projects (Coops and CPPP).

Funds leveraged from Provincial Partners 16 Funds leveraged from Provincial Partners Funds committed Funds received and service provision costs covered Number of local and district municipalities and other institutions working with Eastern Cape R3,035,000 R1,600,000 5 institutions Free State R67,000 1 institution Gauteng - KwaZulu Natal R1,392,042 R1,576,150 8 institutions Limpopo R736,998 R552,011 2 institutions Mpumalanga R2,000,000 Northern Cape R1,161,820 9 institutions North West R74,000 Western Cape R189,350 TOTAL R8,466,860 R7,146,331

Co-location points 17 Province Number of Co-location Points Eastern Cape 19 Free State Gauteng KwaZulu Natal 15 Limpopo 3 Mpumalanga 13 Northern Cape 8 North West Western Cape TOTAL 58

Seda Technology Programme 18 Incubators Provincial and local government involvement Eastern Cape 6 ECDC and Alfred Nzo DM involved in Furniture Incubator, Nelson Mandela Bay Metro involved in Construction and ICT Incubator. Working with Alfred Nzo DM towards establishing a new Incubator in Mt Ayliff. Free State 1 Incubator funded by Seda, no local and provincial government involvement . Gauteng 8 City of Tshwane involved in Manufacturing and Automotive Incubators. Ekurhuleni Metro involved in Lepharo Incubator . KwaZulu Natal Umzinyathi DM involved in Construction as well as Agri-skills Incubator. eThekwini Metro involved in Furniture and Construction. Limpopo 2 Provincial Agriculture department involved in bio-fuels incubator . Mpumalanga 5 Stainless Steel Incubator has infrastructure support from Mpumalanga Economic Growth Agency . Northern Cape Talks with Sol Plaaitjie DM to establish an incubator. North West Invest Northwest and Bojanala West DM involved in Platinum Incubator. Western Cape Incubators funded by Seda, no local and provincial government involvement . TOTAL 31

CPPP 19 Provincial and local government involvement Eastern Cape Working with ECDC,ASGISA-EC, Amathole Development Agency, Intinga Development Agency and provincial government departments on establishing cooperatives. Free State A Cooperatives Forum comprising development institutions, provincial and local government has been established in the province. Seda working with members on developing and sustaining cooperatives. Gauteng Working with the City of Tshwane, Ekurhuleni Metro, Sedibeng DM, Randfontein LM and Westonaria LM on establishing cooperatives. KwaZulu Natal Working with Ithala Bank, TIKZN, Ezemvelo KZN Wildlife, uGu DM, uMzimkhulu LM and Ezinqoleni LM, provincial government departments on establishing cooperatives. Limpopo Working with Vhembe DM, Mopani DM, and Greater Tzaneen Economic Development Agency on establishing cooperatives. Mpumalanga Working with provincial Dept of Economic Development Environment and Tourism, provincial Dept of Public Works and Mpumalanga Economic Growth Agency on establishing cooperatives. Northern Cape Working with Siyanda DM, Namakwa DM and Pixley ka Seme DM, as well as provincial Department of Agriculture on establishing cooperatives . North West Working with Ditsobotla LM, Lekwe Teemane LM and Ramotshere Moiloa LM on establishing cooperatives. Western Cape A Cooperatives Forum comprising development institutions, provincial and local government has been established in the province. Seda working with members on developing and sustaining cooperatives. Discussions with the Theewaterskloof LM on establishing recycling cooperatives.

20 Thank you