1. Economic Development Department APP 2014/15 Presentation to Select Committee July 2014 2015/07/021

2. 2 BACKGROUND THE CONTEXT OF THE APP 2014/15

3. CONTEXT Policy and planning Legislation Framework established/anchored in the 4 th term - NDP: development vision - NGP: Economic Policy - IPAP: Industrialisation Implementation plan - Infrastructure Development Bill Growth Drivers Identified Lessons of Experience drawn from the infrastructure Delivery programmes 2015/07/023

4. 4 GROWTH DRIVERS

5. SIP 1: Opening the Northern Mining Belt SIP 2: Logistics and development corridor from Durban to Gauteng SIPs 3, 4, 5: Unlock economic opportunities on South East coast and the West Coast and in North West SIP 6, 7 and 11: Municipal infrastructure in 23 worst-served municipal districts, agro logistics and integrated urban planning including BRT systems SIPs 8, 9, 10: Energy security SIPs 12, 13, 14: schools, hospitals and universities SIP 15, 16: Information and Communication technologies and SKA SIP 17: African regional development SIP 18: Water and sanitation 2015/07/025 INFRASTRUCTURE

6. 2015/07/026 LESSONS LEARNT FROM PICC LESSONS LEARN FROM INFRASTRUCTURE

7. Silos Broken Focus on Outcome Mechanisms of monitoring and evaluation Mechanism of unblocking implementation, policy, legislative and bureaucratic constraints Long range pipe line planning- feasibility, financing, skilling and technology. Vertical and horizon. co-ord. within Govt Spheres Social dialogues and partnerships 13-Sep-257 LESSONS

8. 2015/07/028 THE APP 2014/15 DIFFERENCE

9. Context outlined above Lessons of experience drawn from infrastructure Approach in the 5 th term: “Radical Economic Transformation” Radical change informed by clear vision, objectives, Outcomes and outputs achieved through appropriately set KPIs Lift up political and managerial oversight 13-Sep-259 WHAT MAKES THE 2014/15 APP DIFFERENT?

10. 2015/07/0210 WHAT INFORMS THE APP 2014/15

11. The planning System seek to achieve NDP Vision NGP, NIP and IPAP are main plans for NDP The MTSF sets key targets for 5 years through outcomes. EDD is responsible for outcome 4: inclusive growth and 6: Infrastructure The MTSF allocates tasks that shape the 2014/15 APP 2015/07/0211 1. THE ECONOMIC PLANNING SYSTEM

12. NDP: 20 Years Vision MTSF: 5 years Goal EDD STRATEGIC PLAN: Department 5 year plan The APP : identify Annual targets. : Provide basis for Legislative Accountability – implementation and voted monies. 2015/07/0212 ACCOUNTABILITY

13. DISCLAIMER: Lessons of experience are economic environment is not static. EDD may be expected to deviate in the interest of economic stability and growth, when economic environment dictate otherwise from the current situation. 2015/07/0213 ACCOUNTABILITY

14. APP has been revised to reflect MTSF approved by Cabinet The revised MTSF call for few adjustments in the strategic plan In order to comply with relevant regulations, The revision of the Strategic Plan will only be presented during the course of 2014/15 2015/07/0214 LEGAL MANDATE COMPLIANCE

15. The Infrastructure Development Act (2014) : EDD Secretariat to ensure outcomes are realised IDC Act (1940): Financing inclusive industrialisation. Competition Act (1998): deals with uncompetitive behaviours The ITAC Act (2002): Regulate international trade 2015/07/0215 LEGAL MANDATE COMPLIANCE

16. 4 core business organisational components - Economic Policy development - Economic planning and Co-ordination - Social Dialogue, and - The PICC Technical Unit Components are allocated KPIs to lead through collaboration across their programmes 2015/07/0216 Organisational Structuring

17. 2015/07/0217 THE DEPARTMENTAL 2014/15 APP

18. ID priorities for: job creation, Inclusive Growth and Industrialisation Align state effort towards realisation of the above Oversee and provide strategic direction to DFIs Oversee and Provide Strategic direction on competition policy and Trade Administration matters 13-Sep-2518 EDD MANDATE

19. 1.Established ministry for policy integration work – 2009 2.Co-ordinated response global economic crisis 2009-11 3.Complete Development New Growth Path 2010 4. 6 Public entities transferred to EDD (2010) 5.Established a functioning Department by 2013 2015/07/0219 KEY MILESTONES OF EDD

20. 6.Developed capacity to monitor key economic trends 7.Aligned government work to NGP, with focus on Job drivers by 2012 8.Refocused IDC, competition and Trade commission on jobs (2011 -14) 9.Social Accords on key NGP areas by 2013 10.Launch Infrastructure plan and support PICC by 2011 2015/07/0220 KEY MILESTONES OF EDD

21. Cabinet and Cabinet clusters Outcome 4 co-ordinating Departments Economic Sector and Infrastructure Cluster (ESID) PICC structures: Council – Manco –Secretariat MinMECs 2015/07/0221 Co-ordination and alignment

22. Approval of R 697 m R 534 m to agencies R 163 m to Departmental programmes: -Programme 1: Administration- R 79m -Programme 2: Economic Policy Development-R23m -Programme 3: Economic Planning and co-ordination – R45m -Programme 4: Socio-economic Dev. &Dialogue -R15m 2015/07/0222 WHAT ARE REQUESTING

23. Fulfil 5 strategic objectives by: -Implementing 22 KPIs -To realise 154 outcome/targets 2015/07/0223 THROUGH THESE PROGRAMMES

24. No KPI Focus on programme 1 that ensure well managed department Accounted for through clear regulated frameworks 2015/07/0224 Objective 1

25. OBJECTIVE 2: IMPLEMENTION OF NGP JOB DRIVERS, INCLUSIVE GROWTH PROGRAMMES, INDUSTRILISATION AND SOCIAL INCLUSION KPI 1: Develop information and monitoring data to enhance coordination and support for implementation of 2 job drivers KPI 2: Conduct 2 independent reviews of progress in the implementation outcome 4 KPI 3:Target 4 initiatives to strengthen implementation of NGP KPI 4: complete 6 spatial, provincial and local economic priorities 2015/07/0225 OBJECTIVE 2: IMPLEMENTION OF NGP JOB DRIVERS, INCLUSIVE GROWTH PROGRAMMES, INDUSTRILISATION AND SOCIAL INCLUSION

26. OBJECTIVE 3: CO-ORDINATE INFRASTRUCTURE FOR INCLUSIVE GROWTH, SERVICE DELIVERY, JOB CREATION INDUSTRIALISATION AND SOCIAL INCLUSION KPI 5: 60 quarterly progress reports on each SIPs to Cabinet KPI 6: unblock, Fas-track and facilitate 8 infrastructure projects KPI 7: coordinate Implementation of at least 4 cabinet decisions KPI 8: provide qualitative secretariat for the 20 meetings of the structures of the PICC 2015/07/0226

27. Strategic Objective 4: PROMOTE INVESTIMENT, EXPAND INDUSTRIALISATION AND SOCIAL INSOCIAL KPI 9: Facilitate, fast track and unblock 10 investment initiatives KPI 10: 4 initiatives to provide strategic guidance to improve the efficiencies of DFIs KPI 11: Initiate 2 processes to measure and expand industrial funding available across govt and DFIs KPI 12: initiate 2 processes to measure and facilitate the improvement of job impact of industrial funding by departments and DFIs KPI 13: 2 initiatives to measure and facilitate development goals through industrial funding for women, youth, women, small business, Black industrialists, township enterprises, rural development and entrepreneurs 2015/07/0227

28. OJECTIVE 5: PROMOTE COMPETITION, TRADE AND OTHE ECONOMIC REGULATIONS KPI 14: 3 initiatives to strengthen admin efficiency of trade and competition authorities KPI 15: 4 initiatives to evaluate and strengthen job creation, inclusive growth and developmental impact KPI 16: 2 initiatives to improve impact assessment of govt regulatory measures and reduce red tape and unnecessary restrictions on enterprises 2015/07/0228

29. KPI 17: initiate a process towards building regulatory capacity and effectiveness across the state N.B: MTSF requires EDD to conduct a review of all economic regulators and propose improvements. 2015/07/0229 Objective 5

30. OBJECTIVE 6; FACILITATED SOCIAL DIALOGUE AND IMPLEMENT SOCIAL ACCORDS KPI 18: 4 Interventions to support local procurement of goods and services KPI 19: 2 interventions to support the development of green economy KPI 20: 2 interventions to enhance skills development through implementation of national skills accord KPI 21: 4 interventions to enhance youth employment, skills and entrepreneurs KPI 22: 4 initiatives to facilitate social partnership for sector, work place economic development 2015/07/0230 OBJECTIVE 6; FACILITATED SOCIAL DIALOGUE AND IMPLEMENT SOCIAL ACCORDS

31. 7 Critical KPIs for provinces KPI 4: spatial, local and provincial initiatives to promote inclusive growth, job creation and KPI 5 and 6: on PICC KPI 9 unblocking investment initiatives KPI 16: Red tape and constraints reduction at provincial and local level KPI 18: On Local Procurement KPI 22: facilitate national, sectoral and workplace economic development partnership 2015/07/0231 PROVINCIAL IMPLICATIONS

32. 5 strategic objectives; 22KPIs and 154 targets Quality information + Better coordination Simple well targeted dashboards to monitor progress Unblocking and fast-tracking projects and investments Building strong partnerships Development of policies and plans to enhance implementation 2015/07/0232 Focus of APP

33. The APP covers 9 months Many strategic objectives and KPIs are new reflecting MTSF A new strategic plan for EDD will be according revised to reflect MTSF obligations It is a challenging programme for EDD, but relevant and critical for the needed inclusive growth and job creation 2015/07/0233 CONCLUSION

34. SIYABONGA