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

2. 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/ /14
Allocated Budget
Legislative programme
Strategic Risks

3. Strategic Overview

4. 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.

5. 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

6. 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.

7. Key Interventions for For 2011/12 MTEF Period

8. 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 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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 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

21. 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

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
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

23. 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

24. 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

25. 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

26. 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%

27. 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

28. 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

29. Allocated Budget

30. 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

31. 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

32. the dti’s 5 year spending trend32

33. Legislative Programme

34. 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 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.

35. 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.

36. Strategic Risks
and
Challenges

37. 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

38. Thank you
Questions ?