1. PRESENTATION TO THE PORTFOLIO COMMITTEE DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERVICES FIRST QUARTER PERFORMANCE 2015/16 FINANCIAL YEAR 04 August 2015

2. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development INTRODUCTION Presentation on the Department’s Performance for the period 01 April to 30 June 2015 focusing on:  Significant Achievements  Quarter 1 performance against each 2015/16 Target as identified in the 2015/16 Annual Performance Plan;  Status of progress per quarter 1 target (Achieved, Delayed or No/Minimal Progress)  Reasons for delays or no/minimal progress;  Cross-cutting Challenges  Financial performance as at 30 June 2015 2

3. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development BACKGROUND The Department conducts quarterly monitoring and evaluation against the quarterly targets as committed to in the 2015/16 Annual Performance Plan. Management conducted an assessment of the Quarter 1 Performance where the following observations were made in terms of challenges than need urgent attention:  Prolonged supply chain management processes through the introduction of vetting requirements.  Prolonged recruitment processes through the introduction of vetting requirements.  Dependency on external stakeholders including other Government Departments.  Human Resource constraints in certain Branches. 3

4. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development SIGNIFICANT ACHIEVEMENTS (1)  In an effort to address the high cost to communicate, the Department developed a draft Policy Direction on data pricing.  As part of its Postal Policy Programme, the Department:  Developed a draft benchmark report on the National Address System;  Developed a concept paper on the National Address System;  Developed a draft Philatelic Strategy.  In order to implement SA Connect, a Project Office has been set up to manage the Digital Development.  In terms of Cybersecurity:  Engagements with SOCs, on development of their Cybersecurity strategies, has commenced;  A Cybersecurity Awareness Implementation Plan and Media Strategy has been developed and approved. 4

5. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development SIGNIFICANT ACHIEVEMENTS (2)  With regards to preparations for WRC-15, a draft SA Position and Proposal have been developed, following benchmarking with SADC Positions.  As part of its focus on youth and children, the Department:  Implemented child online protection awareness programmes in 3 Provinces;  Implemented e-Social Cohesion Programmes in 3 Provinces.  As part of its SOC Oversight functions, the Department:  Developed the Terms of Reference to review the mandates and funding models of both SITA and Sentech;  Secured the consent of both the Minister of Finance and the Minister of DPSA with regards to the establishment of iNeSI as a legal entity;  Facilitated the finalization and Cabinet approval of the SAPO Strategic Turnaround Plan and monitored its implementation. 5

6. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development SIGNIFICANT ACHIEVEMENTS (3)  As part of its Bilateral engagements, the Department developed e-Government Exchange Programmes and engaged with China, Russia and India in this regard.  In an effort to upgrade the IT infrastructure, the Department revised its IT and Knowledge Management Strategy.  In a move towards achieving clean administration, the Department has developed a revised Internal Control Framework. 6

7. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development PROGRAMME 1: ADMINISTRATION FIRST QUARTER PERFORMANCE 7

8. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Administration 2015/16 TARGET: IT & KIM Strategic Plan and Enterprise Architecture, aligned to the strategic objectives of the Department, approved and Phase one implemented Q1 TARGET: Draft IT & KIM strategy approvedAchieved  Revised IT&KIM Strategy was developed and approved Q1 TARGET: Phase 1: Business Architecture developedDelayed  Enterprise Architecture (EA) Business Case as well as TOR and Memo for the EA as developed. Reasons: Delays in the appointment of a Service provider 2015/16 TARGET: Internal Control Framework developed, approved and implemented Q1 TARGET: Internal Control Framework approvedAchieved  Internal Control Framework was developed and approved by the Director-General 8

9. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development PROGRAMME 2:INTERNATIONAL AFFAIRS FIRST QUARTER PERFORMANCE 9

10. International Affairs (1) 2015/16 TARGET: Bilateral exchange programmes, focused on e-Government facilitated with identified countries Q1 TARGET: Draft e.gov Exchange Programme finalised and presented for stakeholder consultation Achieved  Draft e-Government Exchange Programme was developed and engaged with China, Russia and India 2015/16 TARGET: Bilateral Agreement(s) facilitated with neighbouring countries and harmonization of frequency spectrum coordinated in the region Q1 TARGET: Propose Bilateral Agreements with neighbouring member- states developed and facilitated Achieved  Proposed Bilateral Agreements developed, with input and comments from DTPS Legal Unit.  The draft Bilateral Agreements incorporate SADC MOU guidelines on Cross Border Coordination. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 10

11. International Affairs (2) 2015/16 TARGET: Collaboration with the ITU and UPU to develop models to improve connectivity and financial services in rural and underserviced areas through the postal network facilitated Q1 TARGET: Framework for cooperation agreed upon and developed in conjunction with SAPO, ITU and UPU Delayed  Draft Framework for Cooperation developed.  ITU and UPU have agreed with DTPS on the way forward with an amendment to the proposed implementation of the project. Reason: Extension of scope of the project Work in progress: Finalisation of agreement between the parties 2015/16 TARGET: Implementation of UPU Quality of Service Fund projects to improve sub- regional postal services facilitated Q1 TARGET: Implementation of Postbus project, by SAPO and UPU facilitatedDelayed  Project terms of reference for the appointment of the consultant was approved by UPU Quality of Service Fund Trust. Reason: Challenges at SAPO. Work in progress: Appointment of the Project Manager and consultation with relevant government department on the operationalisation of the Postbus in Quarter 2. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 11

12. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development PROGRAMME 3: POLICY, RESEARCH AND CAPACITY DEVELOPMENT THIRD QUARTER PERFORMANCE 12

13. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Policy, Research and Capacity Development (1) 2015/16 TARGET: Rapid Deployment policy developed and approved Q1 TARGET: Rapid Deployment Policy developedDelayed  Service Provider appointed to assist DTPS in developing the Rapid Deployment Policy.  Inception Report and Project Plan developed Reason: Delays in appointment of the Service Provider delayed the initiation of the project Work in progress: Stakeholder engagement underway to finalise draft Policy by Quarter 2 2015/16 TARGET: Roaming Policy/Policy Direction developed and approved Q1 TARGET: Draft Roaming Policy direction developed Minimal Progress Reason: Delays in the appointment progress prevented the timely appointment of Service Provider Work in progress: process of appointment of Service provider to draft the Roaming Policy has been concluded and draft Policy direction to be developed by October 2015/16 TARGET: Policy Direction on data costs developed Q1 TARGET: Draft policy direction on data pricing developedAchieved  Draft policy direction on data pricing has been developed 13

14. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Policy, Research and Capacity Development (2) 2015/16 TARGET: Monitoring and evaluation framework developed and implemented to assess implementation of interventions to reduce the cost to communicate Q1 TARGET: Concept document for the Framework for Monitoring and Evaluation of policy implementation developed Achieved  The Department developed the Concept document for the Framework for Monitoring and Evaluation of policy Implementation 2015/16 TARGET: White Paper on National Integrated ICT Policy finalized and gazetted Q1 TARGET: Final White Paper on National Integrated ICT Policy approved and gazetted Delayed  ICT Policy Recommendations Report completed.  Extended PMO Research and Analysis team has been established  Additional areas of research have been identified, scoped and coordinated.  Approval obtained by the Accounting Officer in respect of sourcing external capacity to develop the SEIAs and the policy writer for the White Paper. Reason: Further research required on certain areas which the Panel could not make policy recommendations without detailed research. Work in progress: Major additional research is being undertaken to inform the policy provisions that will be incorporated in the White Paper in Quarter 2. 14

15. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Policy, Research and Capacity Development (3) 2015/16 TARGET: Dispute Resolution Regulations Amended to include additional second level domains (Phase1) Q1TARGET:Alternative Dispute Resolution Regulations finalizedAchieved  Alternative Dispute Resolution Regulations have been developed and finalised. 2015/16 TARGET: ICT B-BBEE Charter Council established and operationalised Q1 TARGET: ICT B-BBEE Charter Council established and resourcedDelayed  Recommendation made on nominees to sit on the Council Reason: Consultation on the criteria and sectorial representation of the Council members. Work in progress: Finalisation and appointment of Council members. 2015/16 TARGET: ICT B-BBEE Sector Code reviewed and aligned to the Generic Codes of Good Practice Q1 TARGET: The ICT B-BBEE Sector Code Series 000 – 300 aligned to the Generic Code of Good Practice Delayed  The aligned B-BBEE Sector Codes 000 - 300 was drafted for the consideration of the B- BBEE Council when established. Reason: The delays in the establishment of the Charter Council is impacting on the alignment of the ICT B-BBEE code. 15

16. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Policy, Research and Capacity Development (4) 2015/16 TARGET: National Address System Policy developed and approved Q1 TARGET: Benchmark report developed  Benchmark research was conducted and a draft benchmark report was developed on the National address System Achieved Q1 TARGET: Concept paper on National Address System developedAchieved  Concept paper on National Address System was developed and approved by the Social Protection, Community and Human Development Cluster 2015/16 TARGET: Philatelic Strategy and Annual and Commemorative Stamp Programme developed and approved Q1 TARGET: Research conducted and Draft Philatelic Strategy developedAchieved  Draft Philatelic Strategy was developed and being internally consulted. 2015/16 TARGET: Policy directive on the regulation of ETOEs and Re- mailing, developed and approved Q1 TARGET: International Benchmark report developedDelayed  Benchmark research was conducted and a draft benchmark report developed Work in progress: Benchmark report being in Quarter 2. 16

17. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Policy, Research and Capacity Development (5) 2015/16 TARGET: ICT Capacity building programmes developed and implemented focused on supporting community development, health and education sectors Q1 TARGET: ICT capacity building needs analysis conducted through consultation with the relevant stakeholders Achieved  Consultation with stakeholders; namely the NHI sites was conducted in April 2015.  Consultations with NEMISA & ISSA have taken place, to identify their areas of intervention in conducting skills development programmes for the NHI sites. 2015/16 TARGET: Information Ethics Programme implemented in NHI sites prioritising schools and health centers Q1 TARGET: Information Ethics Programme implemented in EC, FS & MPLMinimal Progress  In April 2015, consultative meetings were held with EC, FS, MP Provinces to present the Digital Opportunities Programme. Reason: Delays in the finalisation of the MOU Work in progress: Legal section is reviewing MOU 17

18. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Policy, Research and Capacity Development (6) 2015/16 TARGET: ICT and Children mainstreaming promoted through the implementation of Child Online Protection programmes across all Provinces Q1 TARGET: Child Online Protection Awareness Projects implemented in 3 provinces namely Eastern Cape, Free State and North West Achieved  The Child Online Protection Awareness Workshop:  Eastern Cape (Nongeke High School), March 2015  Free State (Steynrus High School), April 2015.  Western Cape (Desmond Mpilo Tutu Senior Secondary School), April 2015. 18

19. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Policy, Research and Capacity Development (7) 2015/16: TARGET: ICT and Youth mainstreaming promoted through the implementation of e-Social Cohesion Programme across all Provinces Q1 TARGET: e-Social Cohesion Programme focusing on youth implemented in NHI sites in 3 provinces (Eastern Cape, Free State and North West) Achieved  Concept on the e-Social Cohesion Program was developed and approved.  The cities within the NHI Sites were identified and the e-Social Cohesion Programme focusing on youth in NHI sites was implemented in 3 provinces. 2015/16 TARGET: ICT and Gender mainstreaming promoted through the implementation of the Mobinet and Techno Girl projects Q1 TARGET: Mobinet website updated and Mobinet Project reviewedAchieved  Mobinet website updated and projects under Phase 2 reviewed with in collaboration with Women’s Net. 19

20. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Policy, Research and Capacity Development (8) 2015/16 TARGET: Digital entrepreneurship programme to enhance ICT adoption and usage by SMMEs developed Q1 TARGET: Digital entrepreneurship capacity development Framework developed focusing on e-commerce and ICT applications, prioritizing NHI sites Minimal Progress  Consultative sessions were conducted with NHI Sites in April 2015 wherein the Digital Opportunities framework was presented. Reason: Digital entrepreneurship capacity development Framework has not as yet been developed as a structured governance structure needs to be established in the form of a Broadband Provincial Steering Committee. 2015/16 TARGET: Annual South African ICT Statistical Compendium produced Q1 TARGET: Data availability to support the ICT Indicators Compendium assessed and data gap determined Achieved  Data to support the ICT indicators Compendium was sourced and assessed with relevant stakeholders where the data gaps were determined a report developed in this regard. 20

21. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Policy, Research and Capacity Development (9) 2015/16 TARGET: ICT Research Framework developed focusing on competitiveness and innovation Q1 TARGET: Research Experts Reference Group establishedDelayed  ICT Research Group nominees finalised and Terms of Reference developed. Work in progress: finalisation and operationalisation of ICT Research Group underway. 2015/16 TARGET: National e-Strategy developed and approved Q1TARGET: Consultation with stakeholders conducted on the Draft National e-strategy No Progress  None Reason: Delay in the appointment of the Service Provider as proposals received were above R500 000 threshold. Work in progress: Department currently developing a consultation document, to be finalised August 2015 21

22. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development PROGRAMME 4: ICT ENTERPRISE DEVELOPMENT AND SOE OVERSIGHT FIRST QUARTER PERFORMANCE 22

23. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Enterprise Development and SOE Oversight (1 ) 2015/16 TARGET: Develop and implement the ICT SMME Support Programme Q1 TARGET: Draft the ICT SMME Support Programme developed and gazetted for public comments Delayed  Draft support programme developed.  International benchmarks with comparator countries has been completed.  Proposal for an international Benchmarking Tour to the selected countries was developed. Reason: Capacity constraints delayed the finalisation of the baseline report and support programme. Work in progress: Finalisation of the ICT SMME Support Programme, including international study tour to be concluded in Quarter 2. 23

24. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Enterprise Development and SOE Oversight (2 ) 2015/16 TARGET: Licensing of Postbank facilitated and coordinated Q1 TARGET: 1st Quarter progress report developed on licensing of PostbankAchieved  Monthly corporatization meetings held.  Corporatisation action plan developed and progress updated. 2015/16 TARGET: Appointment of Postbank Board members facilitated Q1 TARGET: Secure the concurrence of Minister of FinanceDelayed  List of approved candidates for fit and proper assessment approved by Minister and forwarded to the external auditors for the completion of the fit and proper assessments. Reason: The background checks of the participating candidates took longer than anticipated to complete as only 94% of the interviews and 78% of the background checks on all participating candidates have been completed. Work in progress: submit list of completed assessment to the South African Reserve Bank 24

25. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Enterprise Development and SOE Oversight (3 ) 2015/16 TARGET: Establishment of the Postbank Holding Company facilitated Q1 TARGET: Base Document developed on the establishment of the Postbank Controlling Minimal Progress  Engagements held with the SARB and NT on the Bank Controlling Company structure Reason: The decision on the Bank Controlling Company is still to be resolved. Work in progress: Working with NT on options for the BCC. In addition, the department in studying the exemptions provided in the Banks Act, will make recommendations on statutory clauses for the establishment of the Postbank Holding Company 25

26. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Enterprise Development and SOE Oversight (4 ) 2015/16 TARGET: Incorporation of the Postbank Company facilitated Q1 TARGET: Adoption and lodging of MOI facilitatedDelayed  Draft MOI was reviewed but not finalized as the actual lodging is depended on obtaining SARB’s decision on the request for authorization to establish the Bank and the Postbank Board appointments Reason: SARB’s decision on the request for authorization to establish the Bank is still awaited as it is dependant on the conclusion of the fit and proper assessment of the Postbank Board designates 2015/16 TARGET: Deployment of Post Offices/ Points of Presence (PoPs) infrastructure monitored Q1 TARGET: Quarter 1 progress report developed on roll-out of Post Offices/Points of Presence (PoPs) in line with SAPO roll-out plan Delayed  The Department engaged with SAPO requesting the submission of their Quarter 1 Progress report. (covering the period 01 April to 30 June 2015). Reason: Awaiting Quarter 1 performance report due 31 July 2015 26

27. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Enterprise Development and SOE Oversight (5 ) 2015/16 TARGET: Mandates and funding models for state owned companies reviewed (in line with the ICT Policy Review and SA Connect) Q1 TARGET: Terms of Reference developed for the review of Sentech’s mandate and funding model Achieved  TOR for the review of Sentech’s mandate and funding model developed Q1 TARGET: Terms of reference for reviewing SITA mandate finalised and concurred with key stakeholders Achieved  Terms of Reference to conduct a review of SITA mandate developed Q1 TARGET: A SITA review task team establishedDelayed  Task team members proposed Reason: Delays in the appointment Work in progress: Task team members have been appointed in July. 27

28. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Enterprise Development and SOE Oversight (6 ) Q1 TARGET: A consolidate Report developed on recommendations or proposal on the repositioning of USAASA Achieved  The report on alignment of USAASA projects with SA Connect Specification has been finalised. Q1 TARGET: Relevant stakeholders consulted and consent secured in the establishment of iNeSI as a legal entity Achieved  Minister of Finance Minster of DPSA consulted and consent secured in the establishment of iNeSI as a legal entity Q1 TARGET: Establishment of a task team to initiate a process of drafting an iNeSI Bill Achieved  The iNesi task team was established  The mandate and funding of NEMISA is being reviewed in the Business Case that has been developed as part of legalising iNeSI.  Relevant stakeholders and secure consent in the establishment of iNeSI as a legal entity consulted  Business Case submitted to the Portfolio Committee by DTPS and NEMISA 28

29. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Enterprise Development and SOE Oversight (7 ) Q1 TARGET: Implementation of SAPO’s Strategic Turnaround Plan facilitated and quarterly report developed Achieved  The Strategic Turnaround Plan was completed and finalised.  Progress report on SAPO’s implementation of short-term turnaround initiatives submitted to the Minister.  Strategic Turnaround Plan approved by Cabinet on 10 June 2015.  Progress report on implementation presented to the FOSAD on 24-27 June 2015 in preparation for the July Cabinet Lekgotla.  Engagements with SAPO is ongoing on the implementation plans. Q1 TARGET: Research on determining the economic value of SAPO commenced Delayed  The Department has developed the ToR for the appointment of a service provider. Reason: Change of approached adopted. Work in progress: Department pursuing alternative options 29

30. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Enterprise Development and SOE Oversight (8 ) 2015/16 TARGET: Oversight models for the state owned companies developed and approved Q1 TARGET: International and national benchmarking exercise on oversight models commenced No progress  None Work in progress: Work has commenced internally 30

31. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development PROGRAMME 5: ICT INFRASTRUCTURE SUPPORT FIRST QUARTER PERFORMANCE 31

32. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Infrastructure Support (1 ) 2015/16 TARGET: Phase 1 of Digital Development plan focused at providing connectivity to 1296 identified government institutions implemented Q1 TARGET: Project Management Office establishedAchieved  A Project Office has been established using available internal resources. Q1 TARGET: Implementing Agent appointedDelayed  Due process is being followed in terms of appointing the implementing agency. Work in progress: Consultation with relevant stakeholders Q1 TARGET: Procurement Strategy developedDelayed  The Department has developed a draft procurement strategy which will form the basis for the procurement plan Reason: prolonged process of engagement Work in progress: Finalisation of the procurement strategy underway 32

33. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Infrastructure Support (2 ) Q1 TARGET: Project Management Plan developedDelayed  A draft Project Management plan has been developed. Reason: The finalization of the project plan is dependent on the appointment of the implementing agency. 2015/16 TARGET: Implementation plan for phase 2 of Digital Development developed Q1 TARGET: Phase 2 business case developedDelayed  Gap analysis was completed and a draft business case document has been developed. Reason: Need to finalise costing based on different technologies. Work in progress: business cased completed and submitted to NT in July 2015 2015/16 TARGET: Roadmap for the establishment of a wholesale open access network developed Q1 TARGET: Transactional Advisor appointed for the establishment of a wholesale open access network and SOC Rationalisation Delayed  SOCs have been requested to evaluate their assets value to inform the rationalisation process Reason: A change in approach had to be adopted in terms of appointing TA Work in progress: Awaiting report due in August 33

34. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Infrastructure Support (3 ) 2015/16 TARGET: Policy direction on spectrum for broadband developed Q1 TARGET: Draft policy direction on spectrum for broadband developed and approved Delayed  The Draft policy direction on spectrum for broadband has been developed. Reason: Change of approach, department to develop a the Spectrum Policy 2015/16 TARGET: Virtual Cybersecurity Hub established and operationalised in support of a secure cyberspace in the interest of citizens, private and public sectors Q1 TARGET:Virtual Cybersecurity Hub commissioned and launchedDelayed  Virtual Cybersecurity Hub ICT Infrastructure has been reconfigured and relevant stakeholders consulted in support of Piloting. Pilot operations have been commissioned. Reason: Delays in finalising accommodation tender for the Virtual Cybersecurity Hub. Work in progress: Service provider appointed and refurbishment of building underway. Q1 TARGET: Draft policy direction on spectrum for broadband gazetted for public comment No Progress  The Draft policy direction on spectrum for broadband has been developed. Reason: Dependent on finalisation of Spectrum Policy. 34

35. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Infrastructure Support (4 ) Q1 TARGET: Development of SOC’s Cybersecurity strategies on securing government communications facilitated Achieved  Framework of Engagement with SOC's has been developed and initial engagement with stakeholders commenced.  SITA has developed their Draft Cybersecurity Strategy. 2015/16 TARGET: Cybersecurity Awareness implementation plan approved and implementation commenced Q1 TARGET: Cybersecurity Awareness implementation plan approvedAchieved  A Cybersecurity Awareness Implementation Plan and Media Strategy has been developed and approved. 2015/16 TARGET: Internet strategy developed and submitted to Cabinet for approval Q1 TARGET: Stakeholder consultation conducted on draft Internet strategyDelayed  Draft strategy developed Reason: Change in the consultation approach. Work in progress: Engagement with Government to be conducted. 35

36. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development ICT Infrastructure Support (5 ) 2015/16 TARGET:SA Positions and proposals for WRC-15 agenda items finalised and approved in line with participation plan and framework Q1 TARGET:Preliminary SA Positions and proposals developed, stemming from the Conference Preparatory Meeting (CPM) Report Achieved  Draft SA position and proposal developed.  SA Position also benchmarked with SADC positions. 36

37. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Addressing Crosscutting Challenges Over and above project specific challenges that have been identified, the Department has identified several cross-cutting challenges that need to be addressed:  In order to address the delays caused by the introduction of vetting requirements, the Department is exploring alternative vetting procedures/service providers which can yield quicker turn-around times. This will positively impact both the supply chain management as well as the recruitment processes.  Management is exploring all avenues to improve engagements and cooperation with external stakeholders including other Government Departments, with regards to targets that are dependent on such cooperation.  The Department is currently prioritizing the filling of key vacancies to address Human Resource constraints in certain Branches. 37

38. FINANCIAL INFORMATION Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 38

39. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 39 Departmental Appropriation

40. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 40 Departmental Operational Expenditure BudgetBudget %Expenditure to 30 June 2015 Available to year end % Spent Compensation of employees191 78814%45 207146 58124% Goods and services487 86335%49 211438 65210% Transfers728 61652%354 296374 31949% Payment of financial Assets00%393(393) Paymentof capital assets5 0610.36%1 4433 61829% Total1 413 328100%450 550962 77832%

41. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 41 Departmental Operational Expenditure Excluding Transfers BudgetExpenditure to 30 June 2015 Available to year end Compensation of employees 191 788 45 207 146 581 Goods and services 487 863 49 211 438 652 Payment of financial Assets - 393(393) Paymentof capital assets 5 061 1 443 3 618 Total 684 712 96 254 588 458

42. PROGRAMME BUDGET R'000 BUDGET % EXPENDITURE R'000 AVAILABLE TO YEAR END R'000 % Spent Administration 173 65012% 65 177108 47338% ICT International Affairs 43 4473% 3 98039 4689% Policy Research and Capacity Dev 105 5787% 15 35590 22315% ICT Enterprise Dev & SOC Oversight 447 88932% 181 527266 36241% Infrastructure Support 642 76445% 184 511458 25329% TOTAL 1 413 328100% 450 550962 77932% EXPENDITURE AS AT 30 JUNE 2015 A global leader in the development and use of Information and Communication Technologies for socio-economic development Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 42

43. 1 st QUARTER BUDGET vs EXPENDITURE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 43

44. BUDGET vs EXPENDITURE PER PROGRAMME Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 44

45. TRANSFERS AND SUBSIDIES AppropriationActual Transfers Available to year end % Spent Universal Service and Access Agency of South Africa262 429115 080147 34944% Universal Service and Access Fund233 540174 50459 03675% SA POST OFFICE64 85224 82040 03238% NEMISA36 60111 79024 81132% Sentech109 00028 00081 00026% Foreign Government / International Organisation22 194 - 0% TOTAL728 616354 194374 43249% Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 45

46. TRANSFERS AND SUBSIDIES Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 46

47. THANK YOU Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 47