1. Department of Small Business Development STRATEGIC PLAN 2015/16 – 2019/20 ANNUAL PERFORMANCE PLAN 2016/17 15 March 2016

2. Outline 2  Strategic overview  Legislative and other mandates  Situational Analysis  Strategic Goals and Objectives  Programmes  APP 2016/17  Way forward

3. Mandate The department will lead an integrated approach to the promotion and development of small businesses and cooperatives through a focus on the economic and legislative drivers that stimulate entrepreneurship to contribute to radical economic transformation. 3

4. 2015 | 4 It is necessary to recognise the tension in the mandate and strategic focus between supporting dynamic established SMMEs with growth-focussed efforts and poverty alleviation, which focuses on the poorest of the poor. Growth-focussed Support -Established SMMEs with scope to grow -Greater employment multiplier -Greater ROI and sustainability for financing activities -Long-term higher impact on overall mandate -Establishment of black industrialists -Eg Gazelles programme Poverty Alleviation -Focus on micro and informal enterprises -Priority is sustainable livelihoods for the poorest in society (incl rural areas and priority groups – women, youth, people with disabilities) -Focuses resources on the areas of greatest need -Lower impact, lower employment multiplier While the breadth of the mandate means that DSBD does not have the luxury of focussing purely one or the other, a balance must be found that ultimately prioritises the highest impact opportunities. 1 Mandate…

5. Strategic Overview 5 A radically transformed economy through effective development and increased participation of SMMEs and cooperatives in the mainstream economy To create a conducive environment for the development and growth of small businesses and cooperatives through the provision of enhanced financial and non-financial support services, and leveraging on public and private procurement Integrity Professionalism Accessibility Commitment Mission Why we are here Vision Where we want to be Values How we want to behave STRATEGIC GOALS AND INITIATIVES What we are going to do INDIVIDUAL PERFORMANCE How we manage our individual performance ORGANISATIONAL PERFORMANCE How we manage collective performance

6. Legislative and other mandates Constitutional Mandate: Section 22 – Every citizen has the right to choose their trade, occupation or profession freely. The practice of a trade, occupation or profession may be regulated by law. Section 217: 1) When an organ of state contracts for goods and services, it must do so in accordance with a system which is fair equitable, transparent, competitive and cost effective; 2) It does not prevent the organs of state from implementing a procurement policy providing for the protection or advancement or persons or categories of persons disadvantaged by unfair discrimination 6

7. Legislative and other mandates Policy mandates The National Development Plan – Vision 2030 developed on the basis that South Africa needs an economy that is more inclusive, more dynamic and in which the fruits of growth are shared more equitably The DSBD plays a major and direct role in implementing Chapters 3 and 6 of the NDP that deal with the economy and employment and rural inclusive growth, respectively. The NDP builds on the government’s New Growth Path that aims to create 5 million jobs by 2020 and bring about a new more inclusive, labour-intensive and efficient economy. 7

8. Legislative and other mandates… Policy mandates (cont) Creating decent work, eliminating poverty and reducing inequality can only happen through a new economic growth path founded on restructuring the South African economy to improve its performance in terms of labour absorption and the composition and rate of growth The Medium Term Strategic Framework (MTSF) 2014-19 is the first 5-year implementation plan of the NDP The department is tasked to contribute to two outcomes of the Medium Term Strategic Framework, namely, Outcome 4: Decent employment through inclusive growth, and Outcome 7: Rural development. 8

9. Legislative and other mandates… Policy mandates (cont) During the 2014 and 2015 State of the Nation Addresses, the President emphasised the role that small business can play in jump-starting the economy and under the “small business is big business” theme, he emphasised the need for the economy to prioritise support to small businesses, cooperatives and informal businesses. In the 2015 State of the Nation Address, the President announced that “Government will set-aside 30% of appropriate categories of State procurement for purchasing from SMMEs, co-operatives as well as township and rural enterprises”. 9

10. Legislative and other mandates… Planned Policy Reviews Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprise National Small Business Act, 1996 as amended 10

11. Situational analysis THE GLOBAL PERSPECTIVE Globally, Small, Medium and Micro Enterprises (SMMEs) are key drivers of growth and job creation in better performing and more stable economies Small businesses represent over 95% of total businesses and employ between 60% and 85% of the total work force in countries such as Germany, India, Malaysia, the People’s Republic of China and Taiwan The contribution and participation of small business in the South African economy is far below its potential Currently, small businesses represent 98% of the businesses and employ 47% of the total workforce 11

12. Situational analysis … THE SOUTH AFRICAN PERSPECTIVE According to Colin Coleman, “South Africa can achieve 5% growth over the next five years if Government and the Private sector together invest R12bn in 300 000 new small businesses every year in the next five years.” Realising this potential, the DSBD is embarking on a process of mobilising all spheres of government and private sector to redefine the policy, legislative and regulatory environment to capacitate small businesses to turn the economy around Government has committed to provide greater opportunities for SMMEs to access the public procurement system through legislative reform, which includes the revision of the Small Business Act and the Preferential Procurement Policy Framework Act 12

13. Situational analysis… THE SOUTH AFRICAN PERSPECTIVE The 2015 Public Sector Supply Chain Review procurement confirmed that in 2013/14 government spent R500 billion on the procurement of goods and services as well as construction works If a portion of that money were to be directed to SMMEs, it would make a significant contribution to the sustainability and growth of SMMEs Through the Nine-point Plan, government has shown its commitment to “unlock the potential of SMMEs, cooperatives, township and rural enterprises” in an effort to ensure that the goal of radical economic transformation is achieved The DSBD is at the forefront of leading and coordinating the concerted effort to advance the development of small businesses 13

14. SWOT Analysis 14 STRENGTHS 1.Stable leadership 2.Corporate governance 3.Financial management 4.Integrated Strategic planning (with entities) 5.Change management 6.Space for innovation WEAKNESSES 1.Financial constraints 2.Human resources constraints 3.Integrated planning with provinces 4.Small establishment, big mandate 5.Accommodation infrastructure 6.Lack of identity THREATS 1.Economic slow down 2.Rising fiscal debt burden – debt service 9.9% 3.Limited private sector investment 4.Unemployment: 25% 5.Rising Inflation, Interest rates OPPORTUNITIES 1.Supportive stakeholder network 2.Supportive national policies, plans (NDP, NDGP, MTSF) 3.Counter-cyclical monetary & fiscal macroeconomic policies 4.Established entities 5.High demand for products and services from SMME/Cooperatives

15. Strategic outcome orientated goals 15 S TRATEGIC GOAL 1. A N EFFECTIVE AND EFFICIENT ADMINISTRATION G OAL STATEMENT To create a stable public service organisation as reflected by efficient service delivery, policy implementation, sound governance and systems and processes to ensure the effective utilisation and leveraging of resources. S TRATEGIC GOAL 2. A N ENABLING ENVIRONMENT FOR COMPETITIVE SMALL BUSINESSES AND COOPERATIVES G OAL STATEMENT To promote integrated planning and the review of existing legislation and policies to create a simplified environment for the development and promotion of small businesses. S TRATEGIC GOAL 3. S USTAINABLE SMALL BUSINESSES AND COOPERATIVES IN RURAL & TOWNSHIP COMMUNITIES. G OAL STATEMENT To provide business support services to small businesses and cooperatives in township and rural areas in particular, to stimulate jobs and wealth creation.

16. Strategic goals, objectives & budget 16 Strategic Goal 1:Strategic Goal 2:Strategic Goal 3: Strategic Objectives (R118 mil – 9%) Strategic Objectives (R26.1 mil – 2%) Strategic Objectives (R1 181 mil – 89%) 1.1 To promote compliance and good governance 2.1 To conducive legislative and policy environment for SMMEs and cooperatives 3.1 To design and implement targeted programmes to support new and existing small and medium enterprises in townships and rural towns 1.2 To drive sound financial management and controls 2.2 To drive integrated planning and monitoring for SMMEs and cooperatives development 3.2 To increase participation of SMMEs and Cooperatives in the mainstream economy 1.3 To maintain a sound performance planning, reporting and monitoring and evaluation system 2.3 To drive a comprehensive research agenda 3.3 To coordinate and maximise support for SMMEs and cooperatives through public and private partnerships 1.4 To build human resource capability and promote culture of high performance 2.4 To develop and implement a relevant international relations strategy 1.5 To promote external and internal communication on the work of the department

17. Organisational Structure 17 M INISTER D EPUTY M INISTER D IRECTOR -G ENERAL C HIEF F INANCIAL O FFICER DDG: A DMINISTRATION DDG: P OLICY AND R ESEARCH DDG: P ROGRAMME D ESIGN & S UPPORT O FFICE OF THE DG I NTERNAL A UDIT

18. Programme Structure 18 PROGRAMMESUB-PROGRAMME 1. ADMINISTRATION 1.1 Ministry 1.2 Departmental Management 1.3 Corporate Services 1.4 Financial Management 1.5 Communications 2. SMMEs & COOPERATIVES: POLICY AND RESEARCH 2.1 Policy and Research 2.2 Monitoring and Evaluations 2.3 International Relations 3. SMMEs & COOPERATIVES: PROGRAMME DESIGN AND SUPPORT 3.1 Competitiveness Support 3.2 Enterprise Development 3.3 Market Development and Stakeholder Relations 3.4 Cooperative Development 3.5 SMME Development Finance

19. Total Expenditure Allocations 19 Programme Audited outcome Adjusted appropriation MTEF 2012/132013/142014/152015/162016/172017/182018/19 Administration 9 52613 45245 030 81 387 118 080 121 532 125 059 SMMEs and Co- operatives Policy and Research10 44513 52712 158 11 711 26 105 26 243 29 104 SMMEs and Co- operatives Programme Design and Support821 6141 012 5691 027 380 1 034 422 1 181 254 1 311 678 1 385 816 Total 841 5851 039 5481 084 568 1 127 520 1 325 439 1 459 453 1 539 979

20. QUARTERLY TARGETS: Programme 1 20 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 1. Clean Audit report New indicator Unqualified audit outcome for 2015/16 --- 2. Maintain <5% over or under- expenditure on annual budget New indicator Maintain <5% over or under-expenditure on annual budget 3. 100% of payments to eligible creditors processed within 30 Days 4.Annual Performance Plans tabled Annually2017/18 APP tabled in Parliament ---2017/18 APP tabled in Parliament

21. QUARTERLY TARGETS: Programme 1 21 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 5. Service Delivery Improvement Plan approved New indicator SDIP approved --- 6. Quarterly performance reports submitted to DPME at end of each quarter New indicator 4 Quarterly performance reports submitted to DPME at end of each quarter Q4 2015/16 performance report submitted to DPME Q1 2016/17 performance report submitted to DPME Q2 2016/17 performance report submitted to DPME Q3 2016/17 performance report submitted to DPME 7. Annual reports tabled New indicator DSBD Annual Report 2015/16 approved and tabled - -- 8. Maintain a <10% vacancy rate To maintain a <15% vacancy rate Maintain a <10% vacancy rate 9.50% Women employed at SMS level 45% Women employed at SMS level 50% Women employed at SMS level

22. QUARTERLY TARGETS: Programme 1 22 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 10. 2% People with disabilities 3.2% People with disabilities 2% People with disabilities 2% People with disabilities 11. Project Profiles of Best Practices None 12 projects profiled3 projects profiled 12. Stakeholder Engagements New indicator 8 Stakeholder Engagements 2 Stakeholder Engagements 13. Number of media engagements New indicator 35 media engagements 5 media engagements 10 media engagements 14Proactive Awareness Campaigns None12 Awareness Campaigns 3 Awareness Campaigns

23. Expenditure performance: Programme 1 23 Performance and expenditure trends for Programme 1: Administration The spending focus over the medium term for Programme 1: Administration will be on the sub-programmes Management, Corporate Services, Financial Management, and Communications. The bulk of the budget (40%) is allocated for the Corporate Services such as Human Resources Management and Supply Chain Management. Under economic classification, compensation of employees and goods and services make up the most of the budget with 54.9% and 42.7% respectively. The personnel numbers are expected to increase in the medium term with the filling of critical vacant positions to ensure strong leadership, management and support functions to the Minister, Deputy Minister, Director-General and the Department.

24. Expenditure estimates: Programme 1 24 ProgrammesAudited outcome Adjusted appropriation Medium-term expenditure estimate 2012/132013/142014/15 2015/162016/172017/182018/19 R ‘ 000 Ministry 9 526 13 452 45 03030 89626 13326 65227 056 Departmental Management 21 18718 95019 71019 613 Corporate Services 29 30447 02747 78749 595 Financial Management 14 97216 13016 807 Communications 10 99811 25311 988 TOTAL 9 526 13 452 45 030 81 387118 080121 533125 059

25. Expenditure estimates: Programme 1… 25 ProgrammesAudited outcome Adjusted appropriation Medium-term expenditure estimate 2012/132013/142014/15 2015/162016/172017/182018/19 R ‘ 000 Compensation of employees 3 0583 83721 141 44 57464 76567 639 67 698 Goods & services 6 3788 70219 857 34 98150 47552 70356 258 Transfers and subsidies 39- Payments for capital assets519134 032 1 8322 8401 1901 103 TOTAL9 52613 45245 030 81 387118 080121 532125 059

26. QUARTERLY TARGETS: Programme 2 26 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 15. Conduct consultation stakeholder engagements on the amendments of the Small Business Act of 2004 Consultative stakeholder engagements Targeted stakeholder consultations on the amendment of the National Small Business Act of 1996 as amended Stakeholder consultations Drafting of proposed amendments to existing legislation Proposed amendments submitted to the Minister for consideration 16. Reviewed and approved Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises None Reviewed Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises Scoping report/analysis (areas to be amended, statistics, data) Consultations with relevant stakeholders Consultations with relavant stakeholders Report on stakeholder consultations Framework approved by Executive Authority 17.Research report on legislative and regulatory protocols impeding SMMEs and Cooperatives concluded Institutionalis ation of Red Tape Reduction Guidelines Research report on legislative and regulatory protocols impeding SMMEs concluded Inception report on legislative and regulatory protocols impeding SMMEs concluded Draft report on legislative and regulatory protocols impeding SMMEs concluded Preliminary report on legislative and regulatory protocols impeding SMMEs concluded Final report on legislative and regulatory protocols impeding SMMEs concluded

27. QUARTERLY TARGETS: Programme 2 27 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 18. A monitoring framework to monitor SMMEs and Cooperatives support, in terms of 30% public sector procurement programme, developed None Develop and implement a Monitoring framework to monitor SMMEs and Cooperatives support, in terms of 30% public sector procurement programme Develop the Monitoring framework to monitor SMMEs and Cooperatives support, in terms of 30% public sector procurement programme Test and pilot the Monitoring framework to monitor SMMEs and Cooperatives support, in terms of 30% public sector procurement programme Implement the Monitoring framework to monitor SMMEs and Cooperatives support, in terms of 30% public sector procurement programme Implement the Monitoring framework to monitor SMMEs and Cooperatives support, in terms of 30% public sector procurement programme 19. 50% of total number enterprises supported are women-owned None 50% of total number of enterprises supported are women-owned 20.30% of total number enterprises supported are youth-owned None30% of total number of enterprises supported are youth-owned

28. QUARTERLY TARGETS: Programme 2 28 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 21. 50% of total number of enterprises supported are from townships None 50% of total number of enterprises supported are from townships 22. 30% total number of enterprises supported are from rural areas None 30% total number of enterprises supported are from rural areas 23.Research reports on SMMEs and Co- operatives key areas of support None2 Research reports on key areas of support to SMMEs and Co-operatives Terms of Reference issued Research initiated Draft research report on key areas of support considered Present report key findings and recommendations to Executive Authority

29. QUARTERLY TARGETS: Programme 2 29 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 24. Programme Evaluation reports on the planning, design and implementation of SMMEs and Cooperatives programmes None 1 programme evaluated Develop a programme evaluation plan Draft evaluation report on programmes planning, design and implementation Preliminary evaluation report on programmes planning, design and implementatio n Final evaluation report on programmes planning, design and implementation 25.Approved international relations strategy NoneApproved international relations strategy Preliminary research on best international relations strategies conducted Consultation with public and private sectors Draft strategy on international relations compiled Further consultations Strategy on international relations approved by Exco and Executive Authority

30. Expenditure performance: Programme 2 30 Performance and expenditure trends for Programme 2: SMMEs and Cooperatives Policy and Research Programme 2 has an allocation of R81.5 million over the medium-term The Policy, Research and Legislation sub-programme has 71.8% (R58.5 million) of the budget Monitoring and Evaluation – allocated the rest of the budget (R23.0 million) The spending focus over the medium term for the SMMEs and Cooperatives Policy and Research programme (Programme 2) will be on Reviewing the Strategy for SMME development and entrepreneurship Research on inhibitive legislative and regulatory protocols Collaborative and Integrated planning with provinces and local governments Developing the International Relations Strategy

31. Expenditure estimates: Programme 2 31 ProgrammesAudited outcome Adjusted appropriation Medium-term expenditure estimate 2012/132013/142014/15 2015/162016/172017/182018/19 R ‘ 000 Policy, Research and Legislation 10 445 13 527 12 158 11 71118 53618 69821 226 Monitoring and Evaluation 7 5697 5457 878 Total 10 445 13 527 12 158 11 711 26 10526 24329 104

32. Expenditure estimates: Programme 2… 32 ProgrammesAudited outcome Adjusted appropriation Medium-term expenditure estimate 2012/132013/142014/15 2015/162016/172017/182018/19 R ‘ 000 Compensation of employees 6 569 7 801 10 253 9 545 14 18614 18415 896 Goods & services 3 662 5 636 1 857 2 074 11 58911 71412 833 Transfers and subsidies 103 55 3 Payments for capital assets 111 35 45 92 330345375 TOTAL 10 445 13 527 12 158 11 71126 10526 24329 104

33. 33 QUARTERLY TARGETS: Programme 3 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 26. Informal businesses supported through the IMEDP 1000 informal businesses supported through the IMEDP 7000 informal businesses supported through the IMEDP Recruitment of beneficiaries and sites for IMEDP roll-out 2000 informal businesses supported through the IMEDP 2500 informal businesses supported through the IMEDP 27. Informal Business Infrastructure through Seif 5 informal Business Infrastructures through Seif 6 informal Business Infrastructure through Seif Finalization of applications and approval of sites for the year 2 informal Business Infrastructure through Seif 3 informal Business Infrastructure through Seif 1 informal Business Infrastructure through Seif 28.Rescue Strategy developed Draft Concept document on business rescue strategy for Small Enterprises and Co-operatives developed Rescue Strategy for small enterprises and co-operatives developed Scoping report on available financial and non-financial support at national as well as provincial level. Consultations and gap analysis report. Framework for Rescue Strategy developed and approved by Exco Draft strategy approved Executive Authority

34. 34 QUARTERLY TARGETS: Programme 3 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 29.Established CDANone Established CDA Refine and re-table the business case Alignment process with DSBD business processes Establishment of the CDA Launch/ public awareness 30. Co-operatives supported through CIS 350 co- operatives supported through the CIS 370 co-operatives supported through CIS 85 co-operatives supported through CIS 115 co- operatives supported through CIS 125 co- operatives supported through CIS 45 co- operatives supported through CIS 31.Co-operatives supported through training 200 co- operatives supported through training 250 co-operatives supported through training 50 co-operatives supported through training 75 co-operatives supported through training 75 co-operatives supported through training 50 co- operatives supported through training

35. 35 QUARTERLY TARGETS: Programme 3 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 32 Small and medium enterprises supported through financial and non-financial support 480 small and medium enterprises supported through the BBSDP 600 small and medium enterprises supported through the BBSDP 100 small and medium enterprises supported through the BBSDP 160 small and medium enterprises supported through the BBSDP 200 small and medium enterprises supported through the BBSDP 140 small and medium enterprises supported through the BBSDP 33. Incubators supported through the Enterprise Incubation Programme None 7 incubators supported through the Enterprise Incubation Programme Conceptual document and guidelines approved by Exco and EA 2 incubators supported through the Enterprise Incubation Programme 3 incubators supported through the Enterprise Incubation Programme 3 incubators supported through the Enterprise Incubation Programme 34.Partnership agreements entered into to support SMMEs and Co- operatives 3 partnership agreements entered into to support SMMEs and co-operatives 10 partnership agreements entered into to support SMMEs and Co-operatives 1 partnership formalised 3 partnerships formalised 3 partnerships formalized

36. 36 QUARTERLY TARGETS: Programme 3 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 35. National Co- location Programme implemented 25 co- location points established National Co-location Programme concept document and implementation plan approved. 10 National co-location points established National Co-location Programme concept document and implementation plan approved. 3 National Co- location points established 4 National Co- location points established 36.Functional Inter- Departmental Small business and Co-operatives Development Coordinating Committee. Develop integrated planning framework with national departments NoneFunctional Inter- Departmental Small business and Co- operatives Development Coordinating Committee. Develop integrated planning framework with national departments National Inter- Departmental Small business and Co- operatives Development Coordinating Committee established. Quarterly reports prepared based on the implementation of recommendations. Develop integrated planning framework with national departments Quarterly reports prepared based on the implementation of recommendations. Quarterly reports prepared based on the implementation of recommendations.

37. 37 QUARTERLY TARGETS: Programme 3 Performance Indicator Baseline 2015/16 Annual Target 2016/17 Quarterly Targets 1 st 2 nd 3 rd 4 th 37. Develop integrated planning framework with provincial departments 3 Quarterly Inter- Provincial Coordination Committee meetings held and reports produced Develop and implement integrated planning framework with provincial departments Develop integrated planning framework with provincial departments Quarterly Inter- Provincial Coordination report produced 38.Integrated planning engagements with Local government departments through LED forums and reports produced None15 Integrated planning engagements with Local government departments through LED forums and reports produced 4 Integrated planning engagements with Local government departments through LED forums and reports produced 5 Integrated planning engagements with Local government departments through LED forums and reports produced 3 Integrated planning engagement s with Local government departments through LED forums and reports produced 3 Integrated planning engagements with Local government departments through LED forums and reports produced

38. Expenditure performance: Programme 3 38 Performance and expenditure trends for Programme 3: SMMEs and Cooperatives Programme Design and Support The programme has an allocation of R3.88 billion over the medium-term expenditure framework The bulk of the estimated expenditure (94.2% or R3.65 billion) is allocated for transfers and subsidies to the department’s entities that provide financial and non-financial small business support services. The agencies are funded under the Enterprise Development and SMME Development Finance sub-programmes. Compensation of employees is allocated R174.5 million (4.5%) and the remaining 1.3% of the budget allocated to payments for capital assets.

39. Expenditure estimates: Programme 3 39 ProgrammesAudited outcome Adjusted appropriation Medium-term expenditure estimate 2012/132013/142014/15 2015/162016/172017/182018/19 R ‘ 000 Competitiveness Support 13 271 16 866 19 349 19 322108 657110 665114 7778 Enterprise Development 632 092 682 414 675 593 686 052656 918766 543812 164 Cooperatives Development - - 3 393 4 8418 2848 3598 653 Market Development and Stakeholder Relations - - - 10862 56266 17671 711 SMMEs Development Finance 176 251 313 289 329 045 324 099344 833359 935378 510 Total 821 614 1 012 569 1 027 380 1 034 422 1 181 2541 311 6781 385 816

40. Expenditure estimates: Programme 3 40 ProgrammesAudited outcome Adjusted appropriation Medium-term expenditure estimate 2012/132013/142014/15 2015/162016/172017/182018/19 R ‘ 000 Compensation of employees 37 426 43 694 52 563 57 413 57 73057 237 59 506 Goods & services 18 821 17 433 25 051 17 938 16 72815 69416 803 Transfers and subsidies 765 022 951 357 949 160 958 372 1 105 7861 237 7031 308 379 Payments for capital assets 345 85 606 699 1 0101 0441 128 Total 821 614 1 012 569 1 027 380 1 034 422 1 181 2541 311 6781 385 816

41. Monitoring & evaluation of entities Signing of Shareholder Compacts Assessment of performance against compact and corporate plans Regular site visits as part of the monitoring and evaluation systems Quarterly meetings between the department and its entities 41

42. WAY FORWARD Submit tabled APP to DPME 42