the dti Medium-Term Strategic Plan 2011-2014 Presentation to the Select Committee on Trade and International Relations Date : 12 April 2011

Key Interventions for 2011/12 -2013/14 Allocated Budget Contents Strategic Overview: the dti’s vision; Mission; Strategic Objectives; and Clusters Key Interventions for 2011/12 -2013/14 Allocated Budget Legislative programme Strategic Risks

Strategic Overview

the dti’s vision Mission “A dynamic industrial, globally competitive South African economy, characterised by inclusive growth and development, decent employment and equity, built on the full potential of all citizens”. Mission the dti’s Mission is to: Promote structural transformation, towards a dynamic industrial and globally competitive economy; Provide a predictable, competitive, equitable and socially responsible environment, conducive to investment, trade and enterprise development; Broaden participation in the economy to strengthen economic development; and Continually improve the skills and capabilities of the dti to effectively deliver on its mandate and respond to the needs of South Africa’s economic citizens.

Strategic Objectives Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery

the dti Clusters The work of the dti is organised in terms of the following clusters:- Industrial Development – development of policies & strategies that promote sector competitiveness, growth, job creation & efficient administration of support measures Trade, Investment and Exports - strengthening trade & investment links with key economies; & fostering African development, including through regional and continental integration & development co-operation in line with the New Partnership for African’s Development (NEPAD) Broadening Participation - developing interventions & strategies that promote enterprise growth, empowerment & equity Regulation - development & implementation of coherent, predictable & transparent regulatory solutions that facilitate easy access to redress and efficient regulatory services for economic citizens. Administration and Co-ordination - effective co-ordination of departmental programmes and provision of necessary support for efficient implementation.

Key Interventions for For 2011/12 MTEF Period

Key Interventions – Industrial Development Strategic Objective 1: Facilitate transformation of the economy, to promote industrial development, investment, competitiveness and employment creation Industrial Competitiveness Upscale industrial policy by tabling the annual rolling Industrial Policy Action Plan to Cabinet. Key focus areas for the IPAP 2 2011-12 are: Skills Innovation & technology Procurement Industrial financing – expanding concessional financing to manufacturing sector Developmental trade policies – locking out unsafe imports and creating market access for SA’s exports Sector designation templates completed and submitted to the National Treasury for local procurement. Six (6) sectors/sub-sectors Key focus of IPAP2.1 will be on skills, 8 8

Key Interventions – Industrial Development Strategic Objective 1: Facilitate transformation of the economy, to promote industrial development, investment, competitiveness and employment creation National Industrial Participation Programme (NIPP) Guidelines reviewed and implemented Table in Cabinet the review of NIPP guidelines Technical skills to support industrial development facilitated through the Tooling and Foundry Initiative Training 420 Level 1 apprenticeship students and; Training 150 workers on the Industrial Skills Upgrading Programme

Key Interventions – Industrial Development Industrial financing Launch the Green Enterprise Competitiveness Programme (GEMP) Critical Infrastructure Programme (CIP) – support eight (8) enterprises worth R4bn Revise Guidelines on Capital Project Feasibility Programme ( CFPP), Automotive Investment Scheme (AIS), and Cooperative Incentive Scheme (CIS) Support 10 projects through the Business Process Services (BPS) Support 60 Films productions under the Film and TV Productions Develop Industrial Development Zones (IDZ) Policy, Action plan and Funding Model Name of incentive scheme Value of investment Projected no. of jobs supported BPS R350 m 5000 Film R1,5 bn TSP R 4 bn 5 600 AIS R 5,1bn 2 500 12i R 8bn 2 000 MIP R 6bn 8400

Key Interventions – Industrial Development Industrial financing Incentive scheme No of enterprises supported EMIA 435 Sector Specific Assistance Scheme Project Funding (SSAS PF) 8 Sector Specific Assistance Scheme Emerging Exporters (SSAS EE) 350 Capital Project Feasibility Programme (CPFP) Industrial Competitiveness and Upgrading Programme (ICUP) 220 EIP: Tourism Support Programme 260

Key Interventions – Trade, Investment & Exports Strategic Objective 2: Build mutually beneficial regional and global relations, to advance South Africa’s trade, industrial policy and economic development objectives Consolidate South African Development Community (SADC) Free Trade Agreement ( FTA) Achieve 90% target of tariffs at 0% 40% of Non tariff barrier (NTB) addressed Implement Southern African Customs Union (SACU) 5 point plan Report on agreed work plan for regional industrial intervention Concluded Trilateral SADC-East African Community (EAC) - Common Market for Eastern and Southern Africa (COMESA) FTA Reports on SA and SACU negotiating positions

Key Interventions – Trade, Investment & Exports Strategic Objective 2: Build mutually beneficial regional and global relations, to advance South Africa’s trade, industrial policy and economic development objectives SA positions on SACU-USA TIDCA on Technical Barriers to Trade (TBTs), SPS and Customs developed Develop SACU positions on TBT & Customs Cooperation Extend, expand and deepen Africa Growth and Opportunity Act (AGOA) Lobby for expansion of product coverage. Single stage transformation for SA. Engagement to extend AGOA Conclude SACU-India Preferential Trade Agreement Report on the 6th round of SACU-India Preferential Trade Agreement negotiations Conclude Economic Partnership Agreement (EPA) acceptable to RSA Progress report produced

Key Interventions – Trade, Investment & Exports: Trade Policy Strategic Objective 2: Build mutually beneficial regional and global relations, to advance South Africa’s trade, industrial policy and economic development objectives Define Trade aspects of BRICS arrangement Initiate research on South African position on trade aspects of BRICS Intra-IBSA trade Increase in value by US$ 17 billion 40% Republic of South Africa (RSA) contribution Report on identified and resolved NTBs with Brazil and India Implement Cabinet decision on Investment Treaty Policy Written proposal to re-negotiate or terminate existing Bilateral Investment Treaties (BITs) Further Development of Trade Policy and Strategy Framework Policy Papers prepared

Key Interventions – Trade, Investment & Exports: Trade policy Strategic Objective 2: Build mutually beneficial regional and global relations, to advance South Africa’s trade, industrial policy and economic development objectives Implement trade aspects of Comprehensive Strategic Partnership Agreement (CSPA) with China Obtain written response from China on South Africa’s product request list SA position on the trade aspects of climate change negotiations Final position paper on the trade aspects of climate change for COP 17 Develop 4 infrastructure projects through spatial development initiatives (SDIs) 3-5 functioning SDIs Report on four (4) SDI projects prepared to the value of R2 to R4 billion and implement 1 R1bn SDI project

Key Interventions – Trade, Investment & Exports: Investment & Exports Strategic Objective 2: Build mutually beneficial regional and global relations, to advance South Africa’s trade, industrial policy and economic development objectives Implement National exporter development programme Train 500 new companies Project Investment Emerging Market and Investment Assistance (EMIA) Export to the value of R800 million Promote RSA products in targeted high-growth markets Through 18 national pavilions Assisting 310 companies financially Undertake 40 trade missions

Key Interventions – Trade, Investment & Exports: Investment & Exports Strategic Objective 2: Build mutually beneficial regional and global relations, to advance South Africa’s trade, industrial policy and economic development objectives Develop regional export promotion strategies and action plans for high growth markets based on market intelligence 6 International Trade Initiatives Investment in targeted sectors Increased to R40bn Recommendations on work permits viz. capital waivers Corporate permits Inter-company transfers Visa facilitations 230 recommendations to facilitate investor entry into South Africa

Key Interventions – Broadening Participation Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Implement recommendations of the SMMEs initiatives review report Implement CIS and BBSDP CIS: support 130 enterprises BBSDP: support 1455 enterprises Projected Jobs to be supported under CIS & BBSDP CIS: 650 and BBSDP: 1 700 Identify and approve spatial development project One (1) project 18

Key Interventions – Broadening Participation Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Programme focused publications 8 programme publications Targeted integrated multimedia awareness campaigns Conduct 6 campaigns User-friendly and effective access points for the dti’s clients and stakeholders by providing 100% operational and up to date website 19

Key Interventions – Broadening Participation Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Enterprise development & financing Implement Support Programme for Industrial Innovation (SPII) Total value of R40m (SPII contribution R20m and industry contribution R20m) Support 20 new projects Support technological competencies via the Technology and Human Resources for Industry (THRIP) Support 2 100 students and 700 researchers in chemical, ICT, Metal and minerals, Agriculture and Biotech and energy The provincial spread as follows: Gauteng 140 projects ; Northwest 25 projects ; Limpopo 1 project ; KZN 20 projects; Eastern Cape 23 projects ; Western Cape 74 projects ; Free state 10 projects 20

Key Interventions – Broadening Participation Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Co-operatives Co-operative Development Agency or equivalent established Finalise business case for the development of Co-operative Development Agency Submit a Co-ops Bill to Cabinet Support the establishment of small scale cooperatives in IPAP priority sectors 120 small scale cooperatives Gender and Women’s Economic Empowerment Approve of the National Strategic Framework on Gender and Women Empowerment Finance through Isivande Women’s Fund (IWF) Support 50 new projects 21

Key Interventions – Broadening Participation Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Enterprise Finance and Technology Support Support the seda Technology Programme (stp) Establish 244 new SMMEs and create 1155 jobs Expanded Centre for Entrepreneurship Roll-out of one (1) centre Financial support for the Foundation of African Business and Consumer Services (FABCOS) Academy Train and mentor 960 enterprises 22

Key Interventions – Broadening Participation Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth Enterprise Finance and Technology Support Revised Workplace Challenge Programme 300 companies participating Assess feasibility of 3 new industrial clusters, 100 unemployed graduates placed Broad Based Black Economic Empowerment Develop Draft amendment BBBEE Bill and implementation of the reviewed Codes of Good Practice for BBBEE Implementation of the reviewed Codes of Good Practice for BBBEE 23

Key Interventions – Regulation: Law reform Strategic Objective 4: Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner Impact of regulation on business and economic citizens assessed Produce three (3) reports for Regulatory Impact Assessment (RIA) for the National Credit Act, Liquor Act and Companies Act Regulations Conducted legislative audit to harmonise and align legislation Co-ordinate legislation audit for assessment, and review for alignment and produce a report Policy & legislation developed and reviewed 1 policy developed and submitted to cabinet (IP) Develop and publish 4 regulations (Gambling, National Credit Act, Estate Agency Affairs Board and National Lotteries) Develop 2 bills for Estate Agency Affairs Board & National Lottery

Key Interventions – Regulations Strategic Objective 4: Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner Policy and legislative developed and reviewed Develop 2 bills for Estate Agency Affairs Board & National Lottery Created a more efficient registration system Develop the automated liquor registration system Enhanced stakeholder interaction Develop Stakeholder management strategy. Produce policy positions and treaties for publication 4 policy positions

Key Interventions – Administration & Coordination Strategic Objective 5: To create a professional, competitive and customer-focussed working environment that ensures effective and efficient service delivery Annual HR Plan Full implementation of the Annual HR related Plans (100%) Reduction of the vacancy rate Reduction of the staff turnover to 9% Employment of People With Disability increased to 2.3% Employment of Women employed in senior management positions increased to 42%

Key Interventions – Administration & Coordination Strategic Objective 5: To create a professional, competitive and customer-focussed working environment that ensures effective and efficient service delivery Upgraded ICT infrastructure implemented Full implementation of Phase 2 of ICT Infrastructure Plan 100% 80% Implementation of ICT Security Plan Financial management 92% of payments to suppliers made within 21 days

Key Interventions – Administration & Coordination Strategic Objective 5: To create a professional, competitive and customer-focussed working environment that ensures effective and efficient service delivery Service delivery Improvement Implement and review Service Delivery Improvement Plan (SDIP) Risk management and Fraud prevention Full implementation of Annual Fraud Prevention Plan (100%) Full implementation of Ethics Management Plan (100%) Agency Management Effective oversight of public entities Approval and implementation of the Governance Framework

Allocated Budget

Medium-Term Estimates Medium-Term Expenditure Framework (MTEF) MTEF Budget 2011/12 2012/13 2013/14 R Million Medium-Term Estimates Programmes Medium-Term Expenditure Framework (MTEF) Administration 466,270 499,423 558,780 International Trade and Economic Development 129,679 132,595 139,934 Empowerment and Development 839,695 863,124 909,349 Industrial Development 1,266,895 1,487,194 1,490,974 Consumer and Corporate Regulation 231,671 242,109 256,712 The Enterprise Organisation 3,469,114 3,743,267 3,795,792 Trade and Investment 306,131 315,115 332,080 Communication and Marketing 77,441 84,077 88,816 TOTAL FOR PROGRAMMES 6,786,896 7,366,904 7,572,537

2011-12 Budget Allocation per Cluster Amount in R’000 Industrial Development 4,591,306 Trade, Investment & Exports 435,810 Broadening Participation 984,398 Regulation 231,671 Administration & Co-ordination 543,711 Total 6,786,896 31

the dti’s 5 year spending trend 32

Legislative Programme

Legislative Programme Co-operatives Amendment Bill The Strategy and legislation was gazetted on 21 January 2011 and the dti aims to introduce this Bill in June 2011. Estate Agents Amendment Bill The Policy and Law Review was taken to Cabinet in November 2010. The introduction of this Bill will be determined by the outcome of the consultation between the Ministers of Human Settlements and Trade and Industry. National Credit Amendment Bill The Bill aims to amend certain provisions of the principal Act aligned to policy development - which will enhance the effectiveness of the debt review, debt counseling and restructuring process. The Department aims to introduce this Bill in September 2011.

Legislative Programme Broad-based Black Economic Empowerment Amendment Bill The legislative work done by the dti was handed over to the Advisory Council for review and discussion. the dti aims to introduce this Bill in September 2011. Lotteries Amendment Bill The aim of the Bill is to streamline the administration of the Lottery in order to ensure efficiency. the dti aims to introduce this Bill in August 2011.

Strategic Risks and Challenges

Strategic Risks & Challenges Intra-departmental coordination Monitoring & evaluation of programmes Agency management Inconsistent service delivery standards Pace of regulatory reform - Promulgation of PPPFA regulations, Export tax on scrap metals Insufficient human resource capacity within the dti and in the foreign offices

Thank you Questions ?