1. Quarter 4 Performance Report 2012/13
Presentation to the Portfolio Committee on Economic Development
11 June 2013

2. Introduction
The Annual Performance Plan of the EDD reflects its strategic outcome-orientated goal of creating decent work and inclusive growth opportunities:
by integrating its work around other outcomes (particularly on infrastructure)
to ensure participatory, coherent and coordinated economic policy, planning and dialogue for the benefit for all South Africans.
EDD has performed well against the predetermined fourth quarterly targets of the 2012/13 APP. The overall quarterly performance is summarised in the next slide.

3. Overall Fourth Quarter Performance for 2012/13
Total Planned Q4 Targets
Total Q4 Targets Achieved
Target met, exceeded (+), under-achieved (-)
Programme 1 9 25
+16
Programme 2 10 20
+10
Programme 3 16 21 +5
Programme 4 11 19 +8
TOTAL PERFORMANCE LEVEL) 46 85 39

4. Quarter 4 Report – will be discussed in the following format: Programme 1 Performance Report Programme 1 Expenditure Report Programme 2 Performance Report Programme 2 Expenditure Report Programme 3 Performance Report Programme 3 Expenditure Report Programme 4 Performance Report Programme 4 Expenditure Report

5. +4 Programme 1 Strategic Objective Performance indicator
Target (2012/13)
Target Q4
Actual
Deviation from Planned to Actual Q4 Target 2012/13
Comment on deviation
Provide strategic support and administrative services to the Ministry
Achieved
Provide strategic support and administrative services to the Director General
Number of management meetings 16 4 11 +7
More strategic meetings held to improve governance, review quarterly reports, performance information evidence files, and signing of accords.
Provide operational and administrative support to EDD
Audit reports submitted 6 1 +5
Number of new staff employed by EDD (net) 13 8 +4
Need for staff exceeded the planned new staff target
 Total staff employed
142
Total Staff 139 -3
The funded post establishment was 142 for the financial year, so following the appointments and terminations, there were still three funded vacancies as the Department had three staff appointed in addition to the establishment, due to unavailability of posts at the required levels. Of the appointments made, eight staff members assumed duties during April 2013.
Projected expenditure (R thousand)
Initial budget
R672 732
Adjusted Budget R696518 R R
-R25 975
Expenditure was exceeded because of additional new projects.
Align per project and GFS.

6. Performance indicator Target (2012/13) Target Q4 Actual
PROGRAMME 2: ECONOMIC POLICY DEVELOPMENT
Strategic Objective
Performance indicator
Target (2012/13)
Target Q4
Actual
Deviation from Planned to Actual Q4 Target 2012/13
Comment on deviation
Co-ordinate and monitor the implementation of the New Growth Path
Regular survey of public sector (with DPME) 2 - 1 +1
A survey was conducted on employment in construction activities financed by the state
Impact of state actions on employment assessed through modeling
Additional work done on the impact of trade with Africa on employment (including a modeling exercise)
RIA process reviewed to ensure alignment with NGP
Workshops held on assessing employment impact of the state +2
A training workshop was held with Gauteng Provincial government on 12 February 2013 highlighting the impact of all government departments, provinces and agencies on employment. A similar workshop was held in the Western Cape, which also discussed the Socio-Economic Impact Assessment System Guidelines

7. Performance indicator Target (2012/13) Target Q4 Actual
Programme 2
Strategic Objective
Performance indicator
Target (2012/13)
Target Q4
Actual
Deviation from Planned to Actual Q4 Target 2012/13
Comment on deviation
SA Development Index approved and then monitored 1 - +1
A pilot SA Development Index was approved and is now monitored in its test phase.
Outcome 4 outcomes reviewed regularly 4
Annual in-depth analysis of trends in employment, inequality and growth
Provided a detailed presentation to the Cabinet Lekgotla to evaluate progress on NGP targets with key action plans to improve outcomes achievement.
EDD Conference held with high-level inputs
 This conference was held in Q1
Develop and implement inclusive growth strategies
Sector methodologies developed and applied 2
Competition Act amended and regularly reviewed
 The competition Amendment Act was reviewed, so that S6 be brought into effect.
Other policy interventions identified and appropriate amendments proposed 3 +2
 Additional interventions were required by the Ministry based on developments in infrastructure, industrial development and industrial relations.
Policy platforms

8. Performance indicator Target (2012/13) Target Q4 Actual
Strategic Objective
Performance indicator
Target (2012/13)
Target Q4
Actual
Deviation from Planned to Actual Q4 Target 2012/13
Comment on deviation
Policy advice to support Cluster
Impact of BBBEE on NGP targets analysed and modifications proposed as required 1 - +1
In addition to planned research, a submission was made to the Minister on the amendments to the BBBEE Codes
Platforms on BBBEE and NGP 2
There were opportunities to advance the EDD goals with additional platforms held within budget.
Ensure regular engagement on policy issues
Gender strategy adopted and reviewed
Youth employment strategy adopted and reviewed
Strategy on micro enterprises, livelihoods and the social economy adopted and reviewed
Economic Development Institute established
 Two high level sessions were held in the 2nd and 3rd Quarters towards the establishment of the Institute

9. PROGRAMME 3: ECONOMIC PLANNING AND COORDINATION Strategic Objective
Performance indicator
Target (2012/13)
Target Q4
Actual
Deviation from Planned to Actual Q4 Target 2012/13
Comment on deviation
Develop and or review Infrastructure, Sector, Spatial and National Economic Plans
Number of engagements with provincial and local govt 8 2 3 +1
Demand exceeded planned target.
Number of sector and or infrastructure plans produced or reviewed per year 1
An implementation plan framework was developed for distressed mining communities (driven by EDD in conjunction with Presidency)
Number of spatial and or infrastructure plans produced or reviewed per year 7
Promote Investment for Economic Development
Number of strategic engagements with DFIs 6
The launch of sefa required additional engagements with DFIs.
Promote Competitiveness and Trade for Decent Work
Number of strategic engagements with ERBs
Number of engagement forums to foster alignment of SOEs and PICC’s investment decisions with that of the state
The pace of PICC work required additional engagements with public entities.

10. PROGRAMME 3: ECONOMIC PLANNING AND COORDINATION Strategic Objective
Performance indicator
Target (2012/13)
Target Q4
Actual
Deviation from Planned to Actual Q4 Target 2012/13
Comment on deviation
Leverage financing and procurement processes (Rm/ number of intervention)
Value of special financing facilitated for small businesses, targeted growth sectors and companies in distress [R billion]
R5bn
R1.25bn
R4.49bn
+R3.24bn
The IDC expanded its lending and funding based on additional investment-ready projects in its pipeline.
Sefa improved on the historical lending levels of its predecessors.
Number of interventions promoting economic development through leveraging state expenditure and procurement 10 2
Grow the Green Economy
Number of reports on the implementation of the Green Economy Strategy 1
Number of interventions to grow the green economy 3 4 +1
The growing commitment to the green economy enabled EDD to exceed this target

11. PROGRAMME 4: ECONOMIC DEVELOPMENT AND DIALOGUE Strategic Objective
Performance indicator
Target (2012/
13)
Target Q4
Actual
Deviation from Planned to Actual Q4 Target 2012/13
Comment on deviation
National Social Dialogue and Strategic Frameworks
Number of social dialogue and capacity building engagements held 10 3 6 +3
Success with the Accords increased the demand for capacity building.
Sectoral and Workplace Dialogue
Number of economic development agreements (sectoral, workplace and national) facilitated with social partners per year 2 - 1 +1
More agreements were signed due to progress on the implementation of the Local procurement Accord
Number of interventions to save or create new jobs 4
Opportunities to save jobs exceeded the original target.
Number of reports on the implementation of the framework agreements and social pacts
Capacity Building for Economic Development
Number of Economic Advisory Panel meetings
 A Ministerial Economic Advisory Panel meeting was held in Q1
Number of knowledge networks
Number of capacity building engagements (for organised labour and other social partners)
Demand for capacity-building exceeded the original target.
Productivity, Entrepreneurship and Innovation
National/sectoral engagements on productivity
4 value chain competitiveness workshops were held
Research reports on productivity
Productivity Month - October

12. Q4 Financial Performance
Expenditure Overview
The information is based on March 2013 IYM reports or section 40(4)of PFMA reports
Signed by the Accounting Officer and sent to National Treasury
Total adjusted budget was R million for the quarter
Expenditure for the quarter was R million or 90% of the adjusted appropriation
Expenditure excluding transfers for the 4th quarter of 2012/13 is R51.3 million or 56% of the adjusted appropriation of R 92.4 million
Commitments as at 31 March 2013 amounted to R 2.2 million

13. Q4 Financial Performance
Expenditure Overview continued…
The APP was based on the original quarterly appropriation of R152.5 million
Adjusted budget of R198.4 million for the quarter included an additional R30 million for Economic Regulatory matters allocated during the AENE process
Variance in Compensation of employees is due to vacancies mainly at senior management
Variance in Goods & Services is due to outstanding commitments and additional allocation for Economic Regulatory matters
Slow spending in capital assets is mainly attributed to delays experienced in the procurement processes.

14. Financial Performance per programme

15. Financial Performance per classification

16. Financial Performance
Overview of Revenue for quarter 4
Revenue collection for the 4th quarter of 2012/13 is R 111 million or 71% of adjusted estimated revenue of R million
Main revenue generator is fines from penalties from Competition Commission and dividends from IDC

17. Revenue Performance
1: Received from Competition Commission For fines and penalties instituted against companies flouting Competition rules/ Act In 2012/13
2: Received on an investment of 1,392,969,357 shares held in IDC in March 2013 for a dividend declared in June 2012

18. .
Siyabonga