1. South African Parliamentary Committee on Foreign Affairs Department of Foreign Affairs 2006-07 pre-Budget briefing South African Institute of International Affairs (SAIIA) Wednesday May 17 2006

2. 2 Briefing objective To assess alignment & consistency between: To assess alignment & consistency between: DFA Strategic Plans DFA Strategic Plans Annual Reports Annual Reports Budgets Budgets To identify variance To identify variance To identify blockages To identify blockages Highlight other areas Highlight other areas

3. 3 DFA peculiarities Increasingly ambitious programme Increasingly ambitious programme DFA mandate is broad, multi-faceted DFA mandate is broad, multi-faceted DFA activities are global and increasingly complex DFA activities are global and increasingly complex Performance measurement difficult Performance measurement difficult Key variables out of control of DFA Key variables out of control of DFA 2/3 of budget in foreign currency 2/3 of budget in foreign currency Department has experienced flux Department has experienced flux

4. 4 Strategic plan part 1 Message from Minister Message from Minister Foreword by DG Foreword by DG Mandate of Department Mandate of Department Definition of SA’s foreign policy Definition of SA’s foreign policy SA’s regional and multilateral interests SA’s regional and multilateral interests ‘Shortened’ from 127 to 112 pages ‘Shortened’ from 127 to 112 pages

5. 5 Strategic Plan part 2 Key performance areas Key performance areas –Medium-term priorities and objectives –Service delivery improvement plan –Resource allocations per Departmental Programme

6. 6 Key performance areas Consolidation of African agenda Consolidation of African agenda South-south co-operation South-south co-operation Bilateral relations Bilateral relations Global governance Global governance –Politics and security –Socio-economic

7. 7 Service delivery improvement plan Priorities Priorities Objectives Objectives Performance indicators Performance indicators Critical issues Critical issues

8. 8 Resource allocations per departmental programme Administration Administration Foreign relations Foreign relations Diplomatic & protocol services Diplomatic & protocol services International transfers International transfers

9. 9 Strategic Plan Part 3 Asset management plan Asset management plan ICT plan ICT plan Foreign Service Institute & HR Foreign Service Institute & HR

10. 10 Areas of DFA consistency Prioritisation and consolidation of the African Agenda (with caveats) Prioritisation and consolidation of the African Agenda (with caveats) Multilateralism Multilateralism Middle East & Asia Middle East & Asia Employment equity Employment equity Recruitment and skills development (with caveats) Recruitment and skills development (with caveats)

11. 11 DFA SP – MDGs & South- South co-operation

12. 12 Questions of DFA SP Part one succinct overview of SAFP, but… Part one succinct overview of SAFP, but… –Longer-term, macro, globalisation framework? –Globalisation and BRICs? –How and why has SP been adjusted? –Much repetition with no clear indication of progress –Need to highlight what is new –‘Critical issues’ sometimes vague and read as a wish list

13. 13 DFA SP & global developments

14. 14 DFA SP and emerging powers

15. 15 DFA skills audit Positive and welcome initiative, but… Positive and welcome initiative, but… What evaluative criteria were used? What evaluative criteria were used? How were skills and qualifications assessed? How were skills and qualifications assessed? What was the outcome of the audit? What was the outcome of the audit? Steps taken to raise skills – language, economics, trade, managerial, budgeting? Steps taken to raise skills – language, economics, trade, managerial, budgeting? Identification of new or future skills sets? Identification of new or future skills sets? In-depth analysis of ‘new’ FSI In-depth analysis of ‘new’ FSI

16. 16 Issue of concern Secondment of DFA personnel Secondment of DFA personnel –To AU and SADC –Clarity needed on terms of secondment –Temporary skills loss to DFA –Measures in place to plug personnel & skills gap –Measures in place to re-integrate & maximise experience of seconded staff?

17. 17 Case study of concern - SADC “The Department’s goals for the Continent are therefore the resolution of conflict and the building of a framework within which socio- economic development can take place. The entry points for achieving these goals are provided by SADC, the AU and NEPAD” – DFA SP 2005/2008 “The Department’s goals for the Continent are therefore the resolution of conflict and the building of a framework within which socio- economic development can take place. The entry points for achieving these goals are provided by SADC, the AU and NEPAD” – DFA SP 2005/2008

18. 18 SADC priority ctd. “Within the region, the SADC remains the primary vehicle for South African policy and action to achieve regional integration and development within all priority development sectors”. DFA SP 2005/2008 “Within the region, the SADC remains the primary vehicle for South African policy and action to achieve regional integration and development within all priority development sectors”. DFA SP 2005/2008

19. 19 SADC structure & delivery “Although the restructuring exercise has been completed, the SADC has not been performing as expected, which has negatively affected the implementation of the RISDP”. “Although the restructuring exercise has been completed, the SADC has not been performing as expected, which has negatively affected the implementation of the RISDP”. “The main reasons for the under-performance are constraints in financial and human resources, which require immediate attention. In addition, the financial and human resources constraints at the Secretariat need to be addressed”. “The main reasons for the under-performance are constraints in financial and human resources, which require immediate attention. In addition, the financial and human resources constraints at the Secretariat need to be addressed”. DFA Annual Report 2004/2005 DFA Annual Report 2004/2005

20. 20 DFA SP 2006-2009 Service delivery improvement plan (Africa – multilateral) Priority Consolidation of the African Agenda Objective Promote integration and development through SADC & SACU Performance indicators Implementation of the RISDP and SIPO Implementation of the RISDP and SIPO Successful restructuring of the SADC Successful restructuring of the SADC Critical issues Conclude the restructuring of SADC Conclude the restructuring of SADC Strengthen governance and capacity in SADC, especially the Secretariat Strengthen governance and capacity in SADC, especially the Secretariat Work towards the full implementation of the RISDP Work towards the full implementation of the RISDP Facilitate SACU negotiations with India, China, the USA, EFTA and MERCUSOR Facilitate SACU negotiations with India, China, the USA, EFTA and MERCUSOR

21. 21 DFA budget 2006-07 Sub-programmeOutputMeasure/indicatorTarget Bilateral and Multilateral Relations Management Functional SADC structures Finalise the implementation of restructuring process of the SADC and its structures March 2007

22. 22 DFA 2006-07 budget statement “National departments are expected to begin implementing the (SADC) regional indicative strategic development plan.” “National departments are expected to begin implementing the (SADC) regional indicative strategic development plan.” Need to outline DFA role in this Need to outline DFA role in this

23. 23 DFA Budget 2006-07 Overview

24. 24 DFA budget 2006-07 Administration

25. 25 DFA budget 2006-07 Foreign Relations

26. 26 DFA Africa budgetary expenditure, transfers and subsidies R682m of R1.783bn i.e. 35% on Africa R682m of R1.783bn i.e. 35% on Africa R350m of R473m transfers and subsidies to Africa, i.e. 74% R350m of R473m transfers and subsidies to Africa, i.e. 74% SA share of AU budget from 8.2% to 15% SA share of AU budget from 8.2% to 15% Manpower secondment to AU = R155 million Manpower secondment to AU = R155 million African renaissance fund R150 million African renaissance fund R150 million NEPAD R30 million NEPAD R30 million SADC R12.6 million SADC R12.6 million

27. 27 DFA staff challenge Employment and vacancy rates by salary bands 31 March 2005 Salary band Number of posts Number of posts filled Vacancy rate Lower skilled 28422421 Skilled27114945 Highly skilled production 99644256 Highly skilled supervision 106485120 Senior management 23120611 Political office bearers 330 Total2849187534

28. 28 Key DFA personnel concern Employment and vacancies by critical occupation, 31 March 2005 Critical occupations Number of posts Number of posts filled Vacancy rate HOM1109414 Diplomatic Corps 78540548 Senior management 23420911 Total112970837

29. 29 DFA staff vacancy issues Reasons for continued and persistent high levels of staff vacancies despite active recruitment campaign? Reasons for continued and persistent high levels of staff vacancies despite active recruitment campaign? Exit interviews conducted? Exit interviews conducted? What emerges from exit interviews? What emerges from exit interviews? Steps taken to redress issues? Steps taken to redress issues? Timeline for closing personnel gaps? Timeline for closing personnel gaps?

30. 30 Proposed PCFA measures ctd. Need for a customers audit/survey Need for a customers audit/survey –What has experience of dealing with DFA been for: –Government Departments (IRPS) –SA citizens –Business –Visitors –Media

31. 31 Proposed PCFA measures  Request an annual DFA consistency and variance report  Strategic Plan adjustments  Key performance areas  Employment, skills, equity  Budget

32. 32 Proposed PCFA measures ctd. Request timeous and comprehensive feedback on measures taken to address previous variance before budget approval Request timeous and comprehensive feedback on measures taken to address previous variance before budget approval Reasons for continued variance Reasons for continued variance Reasons for adjustments Reasons for adjustments Reasons for failure to achieve performance Reasons for failure to achieve performance

33. 33 Possible pre-budget steps for PCFA Annual DFA consistency/variance analysis Annual DFA consistency/variance analysis DFA report-back on FCFA queries DFA report-back on FCFA queries Annual think tank analysis Annual think tank analysis Two weeks of Chief Directors briefings Two weeks of Chief Directors briefings Two weeks FCFA pre-budget preparation Two weeks FCFA pre-budget preparation

34. Thank you Questions and clarifications