MPUMALANGA ECONOMIC GROWTH AND DEVELOPMENT PATH “TOWARDS A MORE EQUITABLE AND INCLUSIVE ECONOMY” PREMIERS DIALOGUE WITH SETAs INGWENYAMA LODGE WHITE RIVER 02-03 MAY 2013

PRESENTATION OUTLINE MEGDP PROCESS ALIGNMENT WITH OTHER FRAMEWORKS TARGETS OF MEGDP CONSULTATIONS PROJECTS ROLE OF SETAS IN MP

MEGDP PROCESS

GROWTH PATH Oct 2010: National Growth Path Adopted (National Gvt) Milestones Oct 2010: National Growth Path Adopted (National Gvt) Dec 2010: Provincial Retreat for Mpumalanga Economic Growth and Development Path i.e. MEGDP framework Mar-Oct 2011: Stakeholder consultation on draft MEGDP framework Nov 2011: Mpumalanga Economic Growth and Development Path adopted (Provincial Gvt) 2012: National Development Plan (National Gvt)

ALIGNMENT

GOVERNMENT PRIORITY OUTCOMES 4. Decent Employment through inclusive growth 5. A skilled and capable workforce to support an inclusive growth path 6. An efficient, competitive and responsive economic infrastructure network 7. Vibrant, equitable and sustainable rural communities with food security for all 10:Environmental Assets and Natural Resources that are well protected and continually enhanced

National Developmental Growth Path NEW GROWTH PATH Key Elements To improve the labour absorption of the economy (the jobs yields of each billion rand of investment and each one percent of growth in GDP), to reduce carbon emissions and to strengthen the link between science and technology on the one hand and growth and jobs on the other. National Developmental Growth Path Key Drivers Infrastructure Development Climate Change & the Green Economy Agriculture & Agro Processing Minerals & Beneficiation Manufacturing Knowledge Based Sectors Tourism & Business Services The Social Economy Public Sector Regional Economy 7

ACCORDS Through social dialogue, committments have been signed at national level with social partners in the following accords: National Skills Accord Basic Education and partnership with schools Local Procurement Accord Green Economy Accord 8

INDUSTRIAL POLICY ACTION PLAN IPAP Sectors agro-processing, bio-fuels, forestry, tourism, cultural industries, aquaculture Nuclear, advanced material, aerospace & ICT industries Promotion of Green & Energy Efficient goods & services Downstream mineral beneficiation Linking tourism & cultural industries Stronger integration between sector strategies, skills development plans & commercialisation Substantial contribution to the creation of decent jobs Rural Development 9

Linking the National Development Plan to the MEGDP CREATE JOBS EXPAND INFRASTRUCTURE TRANSITION TO LOW CARBON ECONOMY TRANSFORM URBAN AND RURAL SPACES EDUCATION AND TRAINING PROVIDE QUALITY HEALTHCARE BUILD A CAPABLE STATE FIGHT CORRUPTION TRANSFORMATION AND UNITY MEGDP 10

TARGETS OF MEGDP

MPUMALANGA IN THE NEXT TEN YEARS Target: reduce unemployment by 15% to 2020 Move from 890 000 employed in 2010 to 1.6mil employed in 2020 Create 719 000 new jobs *Condition: Provincial economy needs to grow at a rate between 5 & 7 percent per annum

PRINCIPLES UNDERPINNING DEVELOPMENTAL INITIATIVES MEGDP principles BBBEE Co-operatives SMEs Access to funding Beneficiation & agro-processing Community-driven development Youth focused jobs and development 14

INFORMATION INTELLIGENCE PERFORMANCE MONITORING MEGDP: COMPONENTS IMPLEMENTATION FORUM INFORMATION INTELLIGENCE PERFORMANCE MONITORING Human Capital Development Rural Development Beneficiation /Production Infrastructure INFRASTRUCTURE & WATER MASTER PLANS INDUSTRIAL PLAN + TRADE & INVESTMENT PLAN CRDP STRATEGY HRDS Agriculture & Forestry Mining Manufacturing Tourism Energy &Green Economy ICT POA JOBS Youth, PDI’s SMME’s Co-ops Large Industry Youth, PDI’s SMME’s Co-ops Youth, PDI’s SMME’s Co-ops Large Industry Youth, PDI’s SMME’s Co-ops Large Industry SPATIAL FRAMEWORK + ENVIRONMENTAL MANAGEMENT FRAMEWORK & BDCP MEGDP FRAMEWORK 15 15 15

CONSULTATIONS

SUMMARY OF ISSUES RAISED Skills: Need to focus principally on trade and artisan skills on a mass scale Immediate intervention is to upgrade FET’s to produce skills that are aligned to the needs of the economy The proposed University as a longer term intervention Private sector willing to assist/participate in skills training ( i.e. community training, municipal technicians) Basic education needs major improvement to lay proper foundation for further training

PROJECTS

19 Future Projects PROJECT Main Sectors Participating in Project Key Pillars Addressed 1. Fresh Produce Market Agriculture/Agro-processing/Transport & Logistics Rural Dev Production + Beneficiation Infrastructure 2 Lowveld Food Technology Centre Agriculture/Agro-processing-Manufacturing Human Capital Development/ Beneficiation + Production 3 Forestry Technical Training Forestry Human Capital Development 4 Wood SMME Incubator Production + Beneficiation/Human Capital Development/ Rural Dev 5 Maths, Science & Technology Academy Mining 6 Entrepreneur Development Centre Production+ Beneficiation 7 Water Infrastructure Mining/ Energy Rural Development 8 Water Reclamation 9 Energy Efficiency-Retrofitting Energy & Green Economy 10 Tourism Infrastructure Tourism 11 ICC & Tourism Dev Node 12 High Altitude Training Centre Cultural Industries 13 Cultural Hub Infrastructue 14 Mpumalanga University All Sectors 15 Komatipoort Dry Port Agro-Forestry-Transport-ICT

20 PRIORITY PROJECTS: 2013-14 (SOPA feb 2013) Water Infrastructure (Lead: MEGA) Maths, Science & Technology Academy (Lead: Dept of Education) Mpumalanga International Fresh Produce Market (Lead: Dept. of Agriculture, Rural Dev & Land Admin) University (Lead: Dept. Of Higher Education & Training) Cultural & Creative Hub (Lead: Dept of Culture, Sport & Recreation) High Altitude Training Centre(Lead: Dept of Culture, Sport & Recreation)

ROLE OF SETAs

PARTNERSHIPS(IMPLIMENTING MEGDP) Main areas of cooperation are: Human Capital Development Maths, science and Technology Academy (to improve the capacity of educators in these learning areas and increase the uptake of learners in maths and science based degrees). Bursaries to assist high performing leaners in Maths and Science, particularly from previously disadvantaged High Tech Centre of Excellency (To increase the skills-base in the province, prioritising artisan and agricultural skills Mpumalanga University ( Provide support to the establishment of the Mpumalanga University)

PARTNERSHIPS(IMPLIMENTING MEGDP) 2. Enterprise development (local procurement, Incubation Centre) 3. Urban Renewal ( Social and Economic Infrastructure) 4. Sustainable development and environment

Role of SETAs: Support and Facilitation for provision of: Human Capital Development (Pillar1) **Co-Develop, Commit to and Implement a PARTNERSHIP AGREEMENT with stakeholders for the development of appropriate skills in support of the MEGDP

THANK YOU 25