1. 1 the dti Strategic Plan 2012-2017 & Annual Performance Plan 2012-2015 Presentation to the Portfolio Committee on Trade and Industry Date : 16 March 2012

2. 2 CONTENTS the dti’s Vision, Mission and Strategic Oriented Outcomes Goals Key achievements for the 2011/12 financial year Key Interventions for 2012/13 Allocated resources Challenges

3. 3 VISION “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”.

4. 4 STRATEGIC FOCUS STRATEGIC FOCUS 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.

5. 5 CORE PROGRAMMES AND CLUSTERS Industrial Development – the development of policies and strategies that promote sector competitiveness, growth, job creation and efficient administration of support measures. Trade, Investment and Exports – the strengthening trade and investment links with key economies and fostering African development, including through regional and continental integration and development co-operation in line with the New Partnership for African’s Development (NEPAD). Broadening Participation - the development of interventions and strategies that promote enterprise growth, empowerment and equity Regulation – the development and implementation of coherent, predictable and 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.

6. 6 KEY ACHIEVEMENTS FOR 2011/12

7. 7 Key Achievements SO1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  Designation of 5 sectors and promulgation of the amended PPPFA Regulations (Buses, Canned Vegetables, Textile and Clothing, Leather and Footwear, Power Pylons and Rail Rolling Stock)  Passenger Railway Agency of South Africa (PRASA) agreement on 40% local content for rail signaling in Western Cape and Durban  91 projects supported through the Automotive Incentive Scheme (AIS) with the value of investment leveraged being R4,7 bn  The Energy Efficient Building Regulations launched by the Minister in October 2011  Launched the South African Renewable Initiative (SARi) and the CleanTech Awards  Launched the Industrial Energy Efficiency Programme in November 2011 Industrial Development 7

8. 8 Key Achievements SO1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  67 Film and TV productions supported with the value of investment leveraged being R2 bn  The Manufacturing Competitiveness Enhancement Programme (MCEP) being finalised with the National Treasury  2 projects with the value of R3,5 bn investment have been approved under CIP with projected direct jobs of 645  In the Automotive sector R15 bn has been secured in investment commitments from assemblers and component suppliers. FAW has committed a further $100 mn for a truck and car assembly plant  In Business Process Services, R4bn new investment has been facilitated with the potential of 2 690 jobs Industrial Development

9. 9 Overview of Industrial Development Incentives Description Actual Number of firms/projects supported Investment leveraged AIS91R4,7 bn BPS23 projectsR4 bn (3years) Film & Television67 Film productionsR2 bn 12 I13 projectsR21,1 bn

10. Trade, Investment & Exports SO2: Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objective  Supported 896 companies through EMIA  Investment Pipeline of potential investment projects of R 34,4 bn e.g. Nestle and Unilever  43 trade missions and 20 National Pavilions undertaken  Facilitated business delegations and fora to emerging markets, e.g. Mozambique, Benin, Cameroon, Turkey and UAE and Oman  Facilitated SA Exports in Beijing and Shanghai – more than 70 companies participated 10

11. Trade, Investment & Exports SO2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development objective  Submitted a revised list to China on value added exports to and investment from China  High level in-principle paper on Regional Industrial Development Policy finalised with regards to the SACU 5 point plan.  Organised and participated in the Angola-South Africa Spatial Development Initiative meeting in Angola in conjunction with South African Development Finance Institutions.  Participated in the 8 th WTO Ministerial Conference in Geneva. 11

12. Broadening Participation SO3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth  Final SMME Review Report completed and presented at SMME Summit  Facilitated the establishment of 180 new small scale Co-operatives  Reviewed Codes of Good Practice and ready to be gazetted pending Presidential Council endorsement  Feasibility study for the proposed Saldahna IDZ completed and out for public comment  689 SMMEs projects supported through the Enterprise Investment Programme (EIP) with the value of investment leveraged being R8,9 bn and 15 000 potential jobs being created  175 Cooperatives supported through Cooperative Incentives Scheme  269 Enterprises supported through the BBSDP 12

13. Regulation SO4: Create a fair regulatory environment that enables investment, trade & enterprise development in an equitable & socially responsible manner  First draft of Investment Act completed as well as policy discussion paper on Foreign Direct Investment Act. Tabled for discussion at next IMC meeting  Co-operatives Amendment Bill submitted to Cabinet and Business Case to National Treasury (NT)  B-BBEE Amendment Bill approved by Cabinet and issued for public comment  SEZ policy & bill approved by cabinet for public comment 13

14. Regulation SO4: Create a fair regulatory environment that enables investment, trade & enterprise development in an equitable & socially responsible manner  IP Amendment Bill for Protection of Traditional Knowledge adopted by National Assembly  National Lotteries Policy Framework and Bill drafted for approval  Finalized the Gambling Review process and the review of the Gambling Act  Established and launched the Companies Tribunal  Reviewed and developed the policy on the National Credit Act (NCA)  Developed a Policy and started the drafting of the Businesses Act 14

15. Administration & Co-ordination SO5: Promote a professional, ethical, dynamic, competitive & customer-focused working environment that ensures effective & efficient service delivery  Vacancy rate as at 31 March 2011 was 16.9%. Reduced to 8.45% as at 29 February 2012.  Achieved targets of 43.11% for women in SMS and 2.34% of persons with disabilities.  92% of all creditors payments made within 10 days, 8% of all creditors payments made within 14 days 15

16. 16 Overview of the dti’s key planned interventions over the 2012/13 period

17. 17 KEY INTERVENTIONS – INDUSTRIAL DEVELOPMENT Sector interventions Upscale industrial policy by tabling the annual rolling Industrial Policy Action Plan to Cabinet and implementation carried out. Complete and submit designation templates to the National Treasury for three (3) subsector/sectors for local procurement. Support technological competencies via the Technology and Human Resources for Industry (THRIP), by supporting 2 200 students and 850 researchers in Chemical, ICT, Metal and Minerals, Agriculture and Biotech and Energy. Support 20 new projects to the total value of R36m (SPII contribution R20m and industry contribution R16m) through the Support Programme for Industrial Innovation (SPII).

18. 18 Support to enterprises through Automotive Incentive Scheme (AIS) and 12I tax allowance  AIS: 54 enterprises; Value of investment: R2bn; and projected jobs: 2 300  12I: 12 enterprises; Value of investment: R10bn; and projected jobs: 2 000 Critical Infrastructure Programme (CIP) – support twelve (12) enterprises worth R6bn. Business Process Services (BPS), Film and TV Production-support 15 BPS projects, 63 Film productions worth R400m and R1.8bn respectively. Business Process Services (BPS), support 6000 jobs projected from applications for BPS grants. Export Market and Investment Assistance (EMIA)-support 860 enterprises to participate in the EMIA Scheme. Green Enterprise Competitiveness (GEC)- to support 140 enterprises Launch the Manufacturing Competiveness Enhancement Programme (MCEP) Legal Metrology Bill to be processed KEY INTERVENTIONS – INDUSTRIAL DEVELOPMENT

19. 19 Africa regional development programme implemented-report on implementation of agreed programme and projects for priority development areas in SACU, SADC-FTA and SDI infrastructure projects. Conclusion of EPA trade negotiations with the EU, SACU-EAC- COMESA (T-FTA) - Report on conclusion of trade negotiations. Increased manufactured exports under EMIA by increasing the value of exports to R850 m Investment facilitation in targeted sectors to R45bn KEY INTERVENTIONS – TRADE, INVESTMENT & EXPORTS

20. 20 seda Technology Support Programme (stp)  Establish 44 incubators  Approve 40 technology transfer interventions.  Support 268 SMMEs Implement Enterprise Investment Programme (EIP)  Enterprises Supported  Approve 450 SMMEs for MIP (Manufacturing Incentive Programme)  Approve 300 SMMEs for TSP (Tourism Support Programme)  Value of projected investments  MIP-R6.3bn  TSP-R4.2bn  Number of new jobs projected  MIP- 9 240  TSP- 6 160 KEY INTERVENTIONS – BROADENING PARTICIPATION

21. 21 Implement approved action plan emanating from the SMME review report. Implement the agreement with National Treasury on the Ten-set aside products. Support 30 new contracts with companies to participate in the Workplace challenge programme. Release the approved amended B-BBEE Act for implementation Release the amended Codes of Good Practice for B-BBEE implementation. KEY INTERVENTIONS – BROADENING PARTICIPATION

22. 22 Finalise the National Strategic Framework on Gender and Women Economic Empowerment. Support 60 new projects through the Isivande Women’s Fund. Cooperative Incentive Scheme (CIS) and Black Business Supplier Development Programme (BBSDP)  Support 490 enterprises through CIS  Support 700 enterprises through BBSDP Release the approved amended Co-operatives Act for implementation Finalise Informal Sector Strategy Finalise Youth Enterprise Development Strategy. KEY INTERVENTIONS – BROADENING PARTICIPATION

23. 23 KEY INTERVENTIONS - REGULATION Ensuring the submission of three (3) reports on Regulatory Impact Assessment (RIA) for regulation on business and economic citizens. Development of the National Credit Act (NCA) policy. Development of two (2) Regulations on Intellectual Property for the protection of Indigenous Knowledge (IK) and the National Lotteries Board. Special Economic Zones Bill to be processed Businesses Amendment Bill to be processed

24. 24 KEY INTERVENTIONS – ADMINISTRATION & COORDINATION Attract, develop & retain professional and skilled officials Reduction of the vacancy rate to 5% Reduction of the staff turnover rate to 9% Employment of People With Disability increased to 2.4% Employment of Women in senior management positions increased to 43% Financial Management All eligible creditors’ payments to suppliers made within 30 days Service Delivery Improvement The Service Delivery Improvement Plan (SDIP) 2012-2015 approved and implemented.

25. 25 KEY INTERVENTIONS – ADMINISTRATION & COORDINATION Public Awareness Platforms and Events Conduct 12 programme-focused publications to improve the public awareness. Conduct 6 multimedia awareness campaigns. Conduct 80 outreach initiatives.

26. 26 ALLOCATED RESOURCES

27. 27 MTEF BUDGET 2012/132013/142014/15 R’000 Medium-Term Estimates ProgrammesMedium-Term Expenditure Framework(MTEF) Administration608,742690,473722,213 International Trade and Economic Development133,462137,804 149,851 Broadening Participation 879,891 928,362985,588 Industrial Development: Policy Development 1,482,856 1,535,8731,673,178 Consumer and Corporate Regulation244,713259,580248,490 Industrial Development: Incentive Administration5,437,5656,472,0836,960,512 Trade and Investment (SA)304,826328,173378,308 TOTAL FOR PROGRAMMES 9,092,05510,352,34811,118,134

28. CHALLENGES The prolonged global recession especially in relation to South Africa’s traditional trading partners, which had a negative impact on the domestic economy, The high cost of capital for productive sectors, Steeply escalating administered prices, especially electricity and ports charges, Skills shortages in critical areas. 28

29. 29 THANK YOU QUESTIONS ? QUESTIONS ?