1. Presentation to the Portfolio Committee on Trade and Industry – the dti’s 2012/13 Annual Report and the Second Quarter Report Date : 20 September 2013 Director-General Mr Lionel October

2. Members of the Delegation  Jodi Scholtz – Group COO.  Zodwa Ntuli – DDG: CCRD.  Garth Strachan – Acting DDG: Industrial Development.  Shabeer Khan – CFO.  Tumelo Chipfupa – DDG: Incentive Administration. 2

3. 3 Presentation Outline  Economic Context  Strategic Goals  Achievements against planned targets  Industrial Development  Trade, Investment & Exports  Broadening Participation  Regulation  Administration & Co-ordination  Targets Partially Achieved  Financial Management  Adjustment Estimates  MTEF Budget  Second Quarter Report - highlights  Challenges  Annexures 3

4. 4 Economic Trends Global Economic Developments  The 2012 global economic recovery has been led by emerging economies in Asia, Africa and Latin America.  The emerging economies contributed 6,3% to global growth in 2011 and 5,1% in 2012 compared to 1,6% and 1,3% by the advanced economies over the same period.  The International Monetary Fund (IMF) expected global growth to accelerate modestly from 3,2% in 2012 to 3,5% in 2013. The IMF also projected that emerging economies would grow by a healthy 5,5% in 2013, but did not expect growth to rebound to 2010/11 levels due to the continued weakness of the advanced economies which was dampening demand. 4

5. 5 Economic Trends SA Gross Domestic Product Trends  The economy grew by an annualised rate of 2,1% in the fourth quarter of 2012, almost double the rate of 1,2% recorded in the third quarter.  The main sources of growth included manufacturing; finance, real-estate and business services; general government services; agriculture, forestry and fishing; wholesale, retail and motor trade; catering and accommodation; and the transport, storage and communication industry. 5

6. 6 Economic Trends 6 Figure 1 Quarter-on-quarter growth 2006-2012 Source: South African Reserve Bank

7. 7 Economic Trends  Real output growth increased from 1,2% in the third quarter to 5,0% in the fourth quarter of 2012.  This made the manufacturing sector the biggest contributor to the 2,1% GDP growth in the fourth quarter.  Manufacturing production grew by 5,6% between 2010 and 2012 (underpinned by the following sectors: petroleum, chemical products, rubber and plastics, which grew by 5,2%; motor vehicles, parts and accessories and other transport by 2,3%; and food and beverages by 2,1%).  Overall, the sluggish economic recovery necessitated additional proactive interventions by Government.  Key interventions introduced to enhance manufacturing competitiveness included the launch of the MCEP and Designations for local procurement by Government. 7

8. 8 Economic Trends  Growth was supported by an increase of 126 000 jobs in community and social services, 65 000 in finance and other business services, and 55 000 jobs in agriculture. However, these gains were offset by the shedding of jobs in other sectors, led by the trade sector, which shed 139 000 jobs. 8

9. 9 Economic Trends Source: QLFS quarter 4:2012 Total Employment 2008 - 2012

10. 10 Economic Trends  Real gross fixed capital formation by general government accelerated from 7,7% in the third quarter of 2011 to 23,4% in the third quarter of 2012.  South Africa’s total merchandise exports (excluding gold) increased from R150.9 billion in the first quarter of 2012 to R170.4 billion in the fourth quarter of 2012.  Exports were boosted by growth in manufacturing of precious metals, base metals, steel, coal and motor vehicles.  This led to an increase in imports of transport equipment, chemicals, plastics and rubber and vehicle components in the first nine months of the year. 10

11. 11 Economic Trends  The ‘Great Recession’ and the Eurozone crisis demanded that the dti scale-up its efforts to diversify South Africa’s trade and investment markets, with priority focus falling on the fast- growing, emerging markets in Africa, South-East Asia, the Middle East and South America.  Export volumes to emerging economies in Asia and Africa have been growing more than volumes to the Americas.  Trade with BRICS is about 10% of total South African exports.  The top manufactured exports to BRICS were basic chemicals, basic iron and steel, basic non-ferrous metal and motor vehicles, parts and accessories. 11

12. Economic Trends Total quarterly exports and imports 2006-2012 12 Source: the dti

13. 13 The structure of the dti’s work the dti’s work is organised in terms of the following clusters:  Industrial development;  Trade, Investment and Exports;  Broadening participation;  Regulation, and  Administration and co-ordination

14. 14 Achievements against planned targets

15. 15  Chinese automotive company, First Automobile Works (FAW) has commenced with the construction of a truck plant at the Coega IDZ in the Eastern Cape Province.  Beijing Automotive Works (BAW) invested R196 million in a taxi assembly plant for the South African/sub-Saharan markets.  The Minister approved the Electric Vehicle (EV) Roadmap in early 2013.  Toyota SA opened its new Ses'fikile taxi assembly line in Durban and a new R363 million parts distribution warehouse (Africa's largest). Industrial Development

16. 16  The development of the Clothing and Textiles Competitiveness Programme (CTCP) marked an important incentive development phase for the dti through the introduction of a production and competitiveness enhancement incentive which encourages production and job creation activities more directly.  Approximately 12 205 new, decent permanent jobs have been created in the sector as a direct result of the CTCP.  Conditions in the footwear sector also improved and, after years of decline, the sector now projects an increase in the quantity of shoes produced, from 52 million to 100 million in the next three years. Industrial Development

17. 17  Facilitated the establishment and launch of a Small-Scale Milling plant by Kuvusa Pty (Ltd) in Durban, intended to reduce the price of maize meal by up to 20% for South African households.  Energy-Efficiency Training Centre was established at the National Cleaner Production Centre with the first 600 students accepted for training, while a Radiation Training Facility has been established at the South African Nuclear Energy Corporation.  Approval of the Aquaculture Development and Enhancement Programme (ADEP) incentive to increase investments in the sector, enhance competitiveness and grow employment. Industrial Development

18. 18  Manufacturing Competitiveness Enhancement Programme launched in May 2012; 189 enterprises approved for grants valued at R999,2 m and 33 551 jobs expected to be retained.  Supported 12I projects with the project investment value of R10.2 bn and 1 357 projected jobs.  Four (4) sector/subsector designation templates completed and approved. (furniture, pharmaceuticals, solar water heaters and power and telecoms cable)  Support Programme for Industrial Innovation (SPII) approved for 53 projects to the total value of support of R203.5m.  1506 students and 1 135 researchers approved for Technology and Human Resources for Industry Programme (THRIP) funding. Industrial Development

19. 19  Approved 70 Film productions.  The successful and growing impact of industry demand resulted in the Monyetla Work-Readiness Programme training 3 819 learners as Business Process Services (BPS) agents (3 233 agents and 586 team leaders trained) and a total of 2 120 competent learners being placed in various sectors of employment.  Investments worth R1.3 billion were secured from the BPS Incentive Programme and 4 500 jobs are expected to be created over the next three years.  Due to the dti’s support of the BPS sector, SA was named Off- Shoring Destination of the Year in the 2012 United Kingdom (UK) National Outsourcing Association Awards. Industrial Development

20. 20 Overview of Incentive Schemes Description Actual Number of firms/projects supported Potential jobs supported Industrial Financing EIP- MIP54812 269 EIP-TSP1221 357 AIS28767 BPS123 936 Film & Television70- 12i121 357 CIP6- MCEP189-

21. 21 Overview of Incentive Schemes Description Actual Number of firms/projects supported Broadening Participation CIS314 BBSDP1 212 SPII53 Trade, Investment & Exports EMIA1 082

22. Trade, Investment & Exports Investment and Export Promotion  Exports of R53.5 billion were achieved.  Five Investment and Trade Initiatives (ITIs) were organised in Brazil, India, Russia and Zimbabwe and the Democratic Republic of Congo.  Financially assisted 259 emerging exporters with access to export markets.  R3.88 billion in potential investment projects was facilitated, in which Europe accounted for 19%, Africa and Middle East contributed 13%, Asia contributed 61%, Latin America 2% and North American Free Trade (NAFTA) 5%.  Financial assistance provided to 1082 enterprises participating in Exporting, Marketing and Investment Assistance (EMIA) scheme.  Organised the South African Expos in Beijing and Shanghai, China, in November 2012 in which 61 South African companies participated. Exports generated 6 months after event amounted to R35 million. 22

23. Trade, Investment & Exports Multilateral:  The Third BRICS Trade Ministers’ Meeting was successfully held in Durban resulting in the adoption of the BRICS Trade and Investment Co-operation Framework.  Participated in Third Contact Group on Economic and Trade Issues (CGETI) meeting in New Delhi, India to refine the Terms of Reference (TOR) and action plans for BRICS work programme on economic and trade issues.  Significant advances were made in Economic Partnership Agreement (EPA) negotiations on tariff exchange, outstanding legal provisions and cooperation on new trade-related issues with European Union (EU). 23

24. Trade, Investment & Exports Africa  South African Development Community (SADC) Summit approved the approach to strengthening regional economic integration through the Tripartite Initiative, drawing together SADC, Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC).  The Summit also approved the launch of negotiations in SADC on trade in services.  Led the process of co-ordinating a unified Southern African Customs Union (SACU) position during participation in the Tripartite Free Trade Area (T-FTA) negotiations.  Contributed to the complementary work on infrastructure development under the T-FTA by leading the negotiations on the conclusion of the Memorandum of Understanding (MoU) for the North-South Corridor. 24

25. Trade, Investment & Exports Bilateral:  17 Bilateral engagements concluded, notably with China, Brazil, Cuba, Indonesia and Japan.  11 Technical business missions conducted (Angola, Democratic Republic of Congo, Zambia, Ethiopia, Zimbabwe, Cameroon, Gabon, Kenya, Sudan, Mauritius and Egypt).  43 Trade missions were organised. 25

26. Broadening Participation Enterprise Development  Seda Technology Programme (stp) – 8 new incubators were established; 1 514 Small, Medium, Micro Enterprises (SMMEs) supported and 376 new SMMEs approved for assistance.  42 Incubation Centres countrywide supporting SMMEs in various economic sectors such as biotechnology, mining, agro-processing, construction, jewellery, automotives, metals and renewable energy. Women and Youth Empowerment  The National Strategic Framework on Gender and Women Economic Empowerment was endorsed by ExBo and awaiting presentation to Cabinet.  The Isivande Women’s Fund (IWF) supported 22 projects.  The Youth Enterprise Development Strategy (YEDS) has been drafted and consultations with key stakeholders were at an advanced stage. 26

27. Broadening Participation Co-operatives  Workplace Challenge (WPC) extended its scope to 80 co-operatives in rural areas, KwaZulu-Natal Province (68) and Western Cape Province (12).  83 new contracts with new companies participating in the WPC. Eastern Cape (1), Gauteng (9), KwaZulu-Natal (56), North West Province (3), Western Cape (14). 27

28. Legislation and Regulation Policy and legislative development  Four draft Policy Frameworks developed for approval by Cabinet (Intellectual Property, Licensing of Business, Lotteries, Business Reform Registration and National Credit).  Three Bills developed for approval by Cabinet (Licensing of Business Bill, Lotteries Amendment Bill, Business Reform Registration and National Credit Amendment Bill ).  Special Economic Zones (SEZ) Bill introduced in Parliament.  The Co-operatives Amendment Bill also introduced into Parliament.  The B-BBEE Amendment Bill was approved by Cabinet and consultation process was undertaken.  Legal Metrology Bill approved by Cabinet for public consultations 28

29. Administration  Vacancy rate has been reduced to 8% by 31 March 2013.  The percentage of persons with disability status is 2.8% against an annual target of 2.4%.  The percentage of women in Senior Management Service (SMS) is at 43%.  All eligible creditors’ payments have been processed within 30 days.  Policy Framework on Governance and Oversight approved by Minister to strengthen the relations between the dti and its entities. 29

30. 30 Targets partially achieved during 2012/13 FY

31. 31 Summary of Achievement of Targets for 2012/13 Financial Year Strategic Goal (SG)Total APP Target per Strategic Goal Targets AchievedPartially Achieved SG 120137 SG 2550 SG 320911 SG 4211 SG 5981 TOTAL563620 The calculation by the AG focuses on 100% of targets being achieved without taking into account substantive work already concluded. Good progress has been made on all partially achieved targets.

32. 32 Financial management

33. Five Year Comparison of budget vs Expenditure – R’000 33

34. Overview of the expenditure for the 2012/13 The expenditure based on the final appropriation of R8,351 billion is 99.23% or R8,286 billion, implying an under- spending of R65 million (0.77%) Overview of expenditure per programme: 34 ProgrammeFinal Appropriation Actual ExpenditureVariance in R’000Variance as a % of Final Appropriation R’000 % Administration710,393705,4254,9680.7% International Trade and Economic Development 133,116132,7054110.3% Broadening Participation940,319929,69410,6251.1% Industrial Development1,508,2251,505,0903,1350.2% Consumer and Corporate Regulations230,841223,5687,2733.2% Industrial Development: Incentive Administration 4,551,3564,514,55136,8050.8% Trade and Investment South Africa276,836275,3951,4410.5% Total 8,351,0868,286,42864,6580.8%

35. Overview of the expenditure for the 2012/13 35 Economic ClassificationFinal Appropriation Actual Expenditure Variance in R’000Variance as a % of Final Appropriation R’000 % Current payments Compensation of Employees675,319671,5503,7690.6% Goods and Services600,656592,8387,8181.3% Interest and rent on land49248751.0% Transfer and subsidies Departmental agencies and accounts1,128,6951,127,9957000.1% Universities and technikons32,60432,60040.1% Foreign government and international organisations 38,04037,3446960.5% Public corporations and private enterprises 5,700,4015,671,75428,6471.8% Non-profit institutions23,900 -0.0% Households5,7405,3344067.1% Payment for capital assets Machinery and equipment40,81136,6324,17910.2% Software and other intangible assets21,9753,86318,11282.4% Payment for financial assets82,45382,1313220.4% Total 8,351,0868,286,42864,6580.8% Overview of expenditure per economic classification:

36. 36 2012/13 audit outcome and interventions to address the AG’s findings

37. Audit outcomes For the 2012/13 financial year, the department has received a financially unqualified audit opinion from the Auditor-General (AG). Both the areas of non-compliance reported by the AG relate to supply chain management. 37

38. 38 FindingManagement interventions Certain goods and services with a transaction value below R500k were procured without obtaining the required price quotations. The accounting officer did not take steps to prevent irregular expenditure. These relate to transactions where three quotations could not be obtained and the delegations of authority did not specifically provide for these deviations. The delegations have since been amended to include the deviations. The following additional measures will be implemented: Clear communication via financial circulars on the procurement requirements of transactions less than R500,000 will be sent to all staff. Targeted training interventions with procurement staff and divisional advisors on the department’s procurement policies and procedures and SCM legislation. Irregular expenditure transactions have been analysed per Division and letters will be issued to the relevant managers to take appropriate action. Interventions to address AG’s Audit Findings

39. Key Challenges The economic slowdown in traditional markets limits export growth. Building support from big business to form partnerships with township business, small scale black farmers and the informal sector. Creating buy-in for local procurement. 39

40. 40 Adjusted estimates – 2013/14 FY (Refer to Annexure B)

41. Adjusted estimates 2013/14 FY  The department is currently busy with the adjusted estimates process. All inputs need to be submitted to National Treasury by the 10 October 2013.  The database and AENE chapter was submitted to National Treasury on the 17 September 2013. This includes the reprioritisation between the different programmes and economic classifications.  All the shifting/virement of funds between transfer payments is subject to National Treasury’s approval.  There were no additional funds requested for unforeseeable and unavoidable expenditure.  The slide that follows includes a high level overview of the adjustments made. 41

42. Adjusted Estimates 2013/14 FY 42 ProgrammeOriginalAdjustmentsRevised Budget R’000 Administration 690,079 35,950 726,029 International Trade and Economic Development 138,638 3,000 141,638 Broadening Participation 968,307 41,900 1,010,207 Industrial Development 1 606,524 (9,850) 1,596,674 Consumer and Corporate Regulations 256,157 - Industrial Development: Incentive Administration 5,543,134 (50,000) 5,493,134 Trade and Investment South Africa 369,741 (28,100) 341,641 Total 9,572,580 (7,100)9,565,480 Overview of the adjustments per programme:

43. 43 MTEF - 2014/15 FY (Refer to Annexure C)

44. MTEF 2014/15 FY  The department submitted its MTEF inputs to National Treasury on the 17 July 2013.  There was a request for additional funds over the MTEF period for the department and its agencies'.  There was also a request for new priorities i.e. funding for the establishment of the Co-operative Tribunal, Co-Operative Development Agency and Support to the Co-Operative Apex Organisation.  The slide that follows includes a high level overview of the funds requested and the motivation for such requests is included in the annexures. 44

45. Budget allocations for 2014/15 FY 45 Programme BaselineAdditional funds requested Revised based line R’000 Administration 705,24980,628785,877 International Trade and Economic Development 148,324- Broadening Participation 1,007,3871,100,0032,107,390 Industrial Development 1,768,217- Consumer and Corporate Regulations 274,383110,181384,564 Industrial Development: Incentive Administration 5,642,036- Trade and Investment South Africa 412,43320,000432,433 Total 9,958,0291,310,81211,268,841 Overview of additional funds requested per programme:

46. 46 Second Quarter Report - Key Highlights (Refer to Annexure D)

47. 47 Key Achievements SG SG 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  Launch of the SABS Local Content Verification Office and verification done on the framework for the verification of local production of busses and rail rolling stock and Verification of Johannesburg: Rea Vaya BRT Busses for Phase 1B Route has started.  Part of the 2013-2014 Family Planning tender (all SA-made contraceptives) worth est. R 100 million has been designated. Preliminary data show that 70% of the 2013-2014 anti-TB tender worth R 850 million has been won by SA manufacturers (in the absence of designation).  Instruction Notes for Power and Telecom Cables, and Solar Water Heaters (SWHs) were published by the National Treasury during the period under review.  Launch of the Solar PV Localisation Roadmap in conjunction with the Solar PV Industry Association.  Establishment of the Mr Price Footwear and Leather Goods Cluster which will see the low end market being supplied with locally manufactured goods. Industrial Development

48. 48 Key Achievements SG SG 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  The Pan African Quality Infrastructure (PAQI) was launched in Kenya on 30 August 2013. South Africa, through SANAS, NMISA and SABS holds the secretariats for 3 of the 4 PAQI structures, namely AFRAC, AFRIMETS and AFSEC as well as the Chairmanship of AFRAC.  The Workplace Challenge Programme (WCP) -13 new companies participating.  64 projects with the investment value of R2,4 billion have been supported under MIP incentive; 7 projects supported under AIS.  13 projects supported under the Film incentive.  87 projects supported under the MCEP incentive.  20 new projects under SPII approved to the value of R 58.96 million. Industrial Development

49. Trade, Investment & Exports SG 2: Build mutually beneficial regional & global relations to advance SA’s trade, industrial policy & economic development objective  Facilitated Exports to the value of R1 198 million.  Achieved R11.5 billion pipeline of investment in Renewable Energy projects.  Trained 341 companies under the Programme to raise awareness on Export Processes.  2002 SACU Agreement amended to establish SACU Summit.  SADC Model Bilateral Investment Treaty Template approved by MTF aligned to SA position.  South Africa registered its position in support of the extension of AGOA beyond 2015 and pressed for the need for the country’s continued retention in AGOA as a beneficiary during the AGOA Forum held in Addis Ababa, Ethiopia, 9-13 August 2013.  Progress Report on NTBs with respect to Brazil concluded. 49

50. Broadening Participation SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth  Draft Government-Wide Action Plan presented at the recent Cabinet Lekgotla.  Public comments on the B-BBEE Codes of Good Practice submitted to the Minister for consideration.  Launched the Bachelor of Economic Development Degree offered through the University of Western Cape.  30 incubators have been approved under the Incubation Support Programme.  Supported 10 projects under the ISP incentive.  Supported 64 projects under the CIS incentive.  Supported 263 projects under the BBSDP incentive. 50

51. Legislation and Regulation SG 4: Create a fair regulatory environment that enables investment, trade & enterprise development in an equitable & socially responsible manner  Co-operatives Amendment Act, 2013 assented to by the President.  B-BBBE Amendment Bill classified as Section 76 and consulted with Provinces.  Policy Framework and Licensing of Business Bill developed and public consultations conducted.  Policy Framework and Lotteries Amendment Bill developed and public consultations conducted. Currently being debated in Parliament.  Policy framework and National Credit Amendment Bill developed and approved by Cabinet for public consultations.  Impact Assessment Study on the Liquor Act and Draft Policy developed.  Final Policy Framework on Intellectual Property presented and approved by Cabinet for public consultations. 51

52. Summary of Expenditure vs Projections as at 31/08/13 The expenditure based on the year to date projections of R3,870 billion, is 85.1% or R3,323 billion, implying an under-spending of R547 million (14.1%). Overview of expenditure per programme: 52 Programme Revised budget 2013/14 R’000 YTD projection R'000 YTD expenditure R'000 Variance Available Budget R'000 Value R'000 % Administration 694,029271,855276,940(5,085)(1.87%)417,089 International Trade and Economic Development 138,63845,02446,834(1,810)(4.02%)91,804 Broadening Participation 964,807426,915419,2347,6811.80%545,573 Industrial Development 1,606,074888,506847,12341,3834.66%758,951 Consumer and Corporate Regulations 256,157132,821120,88711,9348.99%135,270 Industrial Development: Incentive Administration 5,543,1341,934,6681,465,922468,74624.23%4,077,212 Trade and Investment South Africa 369,741170,959146,49924,46014.31%223,242 TOTAL 9,572,5803,870,7483,323,439547,30914.14%6,249,141

53. 53 Thank you

54. 54 Annexures Outline  Annexure A – Targets partially achieved  Annexure B – Adjusted Estimates: 2013/14 FY  Annexure C – MTEF 2014/15 FY  Annexure D – Q2 report: Key Highlights  Annexure E – Acronyms and Abbreviations 54

55. 55 Annexure A: Targets partially achieved

56. 56 Targets partially achieved cont… Strategic Objective 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation OutputTargetsActual Achievement Reasons for Variance Automotive Incentive Scheme (AIS) and 12I tax allowance Number of enterprises approved for incentives: AIS:54 28 Variance (26) High-value projects were supported. No new original equipment manufacturers were introduced impacting on jobs projection Value of projected investments from projects approved: AIS:R2bn R1.8 bn Variance (R200 mn) Initial research at the introduction of the AIS, based on information from industry, indicated higher numbers for applications to be submitted, investment and jobs to be facilitated. No new models were introduced by OEMs in 2012/2013. Number of new jobs projected from projects approved:AIS:2 300 767 Variance (1 533) Initial research at the introduction of the AIS, based on information from industry, indicated higher numbers for applications to be submitted, investment and jobs to be facilitated. No new models were introduced by OEMs in 2012/2013. Automotive Incentive Scheme (AIS) and 12I tax allowance Number of new jobs projected from projects approved 12I :2000 1357 Variance (643) The objective of the scheme is investment hence approved projects were more capital intensive not labour intensive.

57. 57 Targets partially achieved cont… Strategic Objective 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation OutputTargetActual AchievementReasons for Variance Critical Infrastructure Programme ( CIP) implemented 12 enterprises financially supported worth R6bn 6 Variance (6) The majority of targeted projects were renewable energy projects, which could not be approved due to the bidding process managed by DOE. the dti is still awaiting clarity in terms of how CIP could support such projects. Business Process Services (BPS), Film and TV Production 15 BPS projects approved12 Variance (3) The programme performance dropped in 2012/13 due to global economic slowdown. Number of Projected jobs from applications for BPS grant :6000 3936 Variance (2064) The target of the jobs was not achieved due to most of the jobs being realized in the year 2011/12 and sufficient skills pool being built to provide for BPS demand

58. 58 Targets partially achieved cont… Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth. OutputTargetActual AchievementReasons for Variance Implementation of the enterprise investment programme ( EIP) Number of SMEs approved for EIP (MIP and TSP) Incentive:EIP-TSP:300 122 Variance (178) The TSP product line was terminated mid-way of the financial year under review, hence fewer projects than anticipated. Value of projected investments from projects approved: EIP- TSP:R4.2bn R1.5 bn Variance (R2.7 bn) Number of new projected jobs from approved projects :EIP- TSP: 6 160 1357 Variance (4803) Recommendatio n for the SMME review report implemented Approved action plan emanating from the SMME review report Draft Action Plan developed. Variance – no approval Approval of Action plan not obtained Implemented the Ten set- aside products Agreement with National Treasury on the implementation of the Ten set- aside products Deliberations with National Treasury took place. Variance – No agreement reached 10 set-aside products still in deliberations with NT. An agreement was reached on reviewing the proposed ten set aside measures in light of the designation of sectors as a way of increasing market access. CIS and BBSDP programme Number of enterprises approved for CIS and BBSDP grants:CIS:490 314 Variance (176) The business model was improved in order to clear the applications backlog, but due to capacity constraints the target was not met.

59. 59 Targets partially achieved cont… Strategic Objective 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth. OutputTarget Not Achieved Actual AchievementReasons for Variance B-BBEE Act and Codes of Good Practice for B-BBEE Release of the approved Amended B-BBEE Act for implementation The B-BBEE Bill was approved by Cabinet and introduced in Parliament – Variance - no implementation Consultation process took longer than anticipated Release of amended Codes of good practice for implementation Revised Codes of good Practice were gazetted for 60 days to allow public consultation. Variance – no implementation Consultation process took longer than anticipated Developed and implemented the National Strategic Framework on Gender and Women Empowerment National Strategic Framework on Gender and Women Empowerment finalized and submitted to Cabinet for approval National Strategic Framework on Gender and Women Empowerment was endorsed by dti’s EXBO. Variance – approval by Cabinet not obtained. Consultation process took longer than anticipated CIS and BBSDP programme Number of enterprises approved for CIS and BBSDP grants:CIS:490 314 Variance (716) The business model was improved in order to clear the applications backlog, but due to capacity constraint the target was not met. Developed and Implemented the Youth Enterprise Development Strategy Finalise Youth Enterprise Development Strategy and submit to Cabinet for approval Finalise Youth Enterprise Development Strategy supported/endorsed by the dti’s Exbo. Variance –no Cabinet approval The process was changed to focus on the development of a Programme of Action and its submission to the Minister.

60. 60 Targets partially achieved cont… Strategic Objective 4: Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner. OutputTargetActual Achievement Reasons for Variance Policies, Bills, Regulations to enforce fair business practices developed One draft Bill on IP Not achieved. Three other Bills developed for approval. Variance – the IP Bill was not developed Intellectual Property Bill not developed as it is awaiting adoption of Policy by Cabinet. The other 3 Bills were prioritised as per Cabinet request.

61. 61 Targets partially achieved cont… Strategic objective 5: Promote a professional, ethical, dynamic, competitive & customer-focused working environment that ensures effective & efficient service delivery OutputTargetActual Achievement Reasons for Variance Annual Adjusted HR Plan Percentage (%) of vacancy rate: 5% 8% Variance (3%) New positions were created late in the financial year. However, year-on- year improvement evident.

62. 62 Annexure B Adjusted estimates – 2013/14 FY

63. Adjusted estimates 2013/14 FY  The department is currently busy with the adjusted estimates process. All inputs need to be submitted to National Treasury by the 10 October 2013.  The database and AENE chapter was submitted to National Treasury on the 17 September 2013. This includes the reprioritisation between the different programmes and economic classifications.  All the shifting/virement of funds between transfer payments is subject to National Treasury’s approval.  There were no additional funds requested for unforeseeable and unavoidable expenditure.  The slides that follow includes a high level overview of the adjustments made. 63

64. Adjusted Estimates 2013/14 FY 64 ProgrammeOriginalAdjustmentsRevised Budget R’000 Administration 690,079 35,950 726,029 International Trade and Economic Development 138,638 3,000 141,638 Broadening Participation 968,307 41,900 1,010,207 Industrial Development 1 606,524 (9,850) 1,596,674 Consumer and Corporate Regulations 256,157 - Industrial Development: Incentive Administration 5,543,134 (50,000) 5,493,134 Trade and Investment South Africa 369,741 (28,100) 341,641 Total 9,572,580 (7,100)9,565,480 Overview of the adjustments per programme:

65. FY Adjusted Estimates 2013/14 FY 65 Economic ClassificationOriginalAdjustmentsRevised Budget R’000 Current payments Compensation of Employees 854,246 (34,539) 819,707 Goods and Services 639,05366,976 706,029 Interest and rent on land Transfer and subsidies Departmental agencies and accounts 1,234,727 50,995 1,285,722 Universities and technikons 12,834 - Foreign government and international organisations 39,738(35,200) 34,538 Public corporations and private enterprises 6,751,175 (77,730) 6,636,445 Non-profit institutions 18,885 8,900 27,785 Households 1,900 759 2,659 Payment for capital assets Machinery and equipment 10,867 2,496 13,363 Software and other intangible assets 9,155 15,190 24,345 Payment for financial assets-11 Total 9,572,580 (7,100) 9,565,480 Overview of the adjustments per economic classification:

66. Adjusted Estimates 2013/14 FY 66 ProgrammeItemAmount R’000 Motivation Programme 4: Industrial Development: Policy Development Transfer Payment: IDC: Clothing & Textile Production Incentive 75,825 Redirected between the Clothing & Textiles Production Incentive Programme (PIP) and the Clothing & Textiles Competitiveness Improvement Programme (CIP). This amounts to 10% of the PIP budget which is redirected in support of national cluster activities. Programme 6: Industrial Development: Incentive Administration Transfer payment: Manufacturing Development Incentives (Automotive Production and Development) 265,000 The expected applications and claims are based on the Light Motor Vehicle Manufacturer production cycle, for example when they are introducing a new model or a face- lift/upgrade. The applications for Component manufacturers are influenced and the volumes determined by this. The following below are the key items that were reprioritised during the adjusted budget process Adjustments from:

67. Adjusted Estimates 2013/14 FY 67 ProgrammeItem Amount R’000 Motivation Programme 4: Industrial Development: Policy Development Industrial Development Corporation: Customised Sector Programme 72,325 Redirected between the Clothing & Textiles Production Incentive Programme (PIP) and the Clothing & Textiles Competitiveness Improvement Programme (CIP). This amounts to 10% of the PIP budget which is redirected in support of national cluster activities. Programme 3: Broadening Participation Small Enterprise Development Agency 40,920 The Department of Trade and Industry has mandated Small Enterprise Development Agency (Seda) to provide non-financial support services to small, medium and micro enterprises (SMMEs) through-out the country. Over the years, Seda has been diligent in delivering a variety of programmes to SMMEs. Programme 6: Industrial Development: Incentive Administration Broadening Participation Development Incentive 220,000 To date since re-launching of the revised program 1 508 projects have been approved, with projects for enterprise improvement worth over R500 million and approximately R250 million paid as grants to approved applicants. Adjustments to :

68. 68 Annexure C MTEF - 2014/15 FY

69. MTEF 2014/15 FY  The department submitted its MTEF inputs to National Treasury on the 17 July 2013.  There was a request for additional funds over the MTEF period for the department and its agencies'.  There was also a request for new priorities i.e. funding for the establishment of the Co-operative Tribunal, Co-Operative Development Agency and Support to the Co-Operative Apex Organisation.  The slides that follow includes a high level overview of the funds requested and the motivation for such requests. 69

70. Budget allocations for 2014/15 FY 70 ProgrammeBaselineAdditional funds requested Revised based line R’000 Administration705,24980,628785,877 International Trade and Economic Development 148,324- Broadening Participation1,007,3871,100,0032,107,390 Industrial Development1,768,217- Consumer and Corporate Regulations 274,383110,181384,564 Industrial Development: Incentive Administration 5,642,036- Trade and Investment South Africa 412,43320,000432,433 Total 9,958,0291,310,81211,268,841 Overview of additional funds requested per programme:

71. Budget allocations for 2014/15 FY 71 Economic ClassificationBaselineAdditional funds requested Revised based line R’000 Current payments1,542,577100,6281,643,205 Compensation of Employees915,033 Goods and Services627,544100,628728,172 Interest and rent on land Transfer and subsidies8,388,1881,210,1849,598,372 Departmental agencies and accounts1,343,6221,210,1842,553,806 Universities and technikons15,751 Foreign government and international organisations 35,642 Public corporations and private enterprises6,927,103 Non-profit institutions64,320 Households1,750 Payment for capital assets27,264 Machinery and equipment18,553 Software and other intangible assets8,711 Payment for financial assets Total 9,958,0291,310,81211,268,841 Overview of additional funds requested per economic classification:

72. MTEF 2014/15 FY 72 Item Descriptions 2014/152015/162016/17Total MTEF PERIOD Motivations R’000 Office Accommodation 80,628116,565108,030305,223 The request is for additional funds is for the DTI Campus contractual commitments under the PPP (R33.2m), rental of The Fields (Seda) (R18.5m) and the rental and facilities management for Block G (R31.5m). TISA Foreign mission office 20,00025,00075,000 The spending pressure under programme seven is as a result of a need to define the dti’s global footprint through the establishment of additional foreign offices as indicated on the letter from the speaker of the National Assembly date 11 June 2013. Totals 100,628141,565183,030425,223 Motivation for the additional funds requested for the Department:

73. MTEF 2014/15 FY 73 Item Descriptions 2014/152015/162016/17 Total MTEF PERIOD Motivations R’000 Companies Tribunal 10,00014,09221,98946,081 For ICT strategy implementation plan for the effective functioning of the Tribunal. National Credit Regulator 37,28625,75527,38090,421 Funds are require for acquisition of new building: National Credit Regulator occupied their current premises since the inception of the NCR in July 2006. National Consumer Tribunal 8,51013,61020,43042,550 There are currently amendments proposed to the National Credit Act (NCA) that will impact on and expand the mandate of the NCT substantially with concomitant cost implications. National Consumer Commission 40,08553,475-93,560 It is necessary for the NCC to have an ICT strategy implementation plan for the effective functioning of the entity. Additional funds are also requested for the design and hosting of the NCC website National Gambling Board 14,3006,1005,70026,100 The NGB has been allocated a budget which does not fully fund the legislative mandate of the Board in terms of what the Act requires. Export Credit Insurance Corporation -269,740136,564406,304 Funding, of interest make up transfers existing and pipeline export credit projects supported by ECIC. National Empowerment Fund 1,100,000 3,300,000 The NEF is now at a growth stage where significant additional capital will be required to fund the rapidly increasing programme transaction pipeline which has been developed directly in line with Government’s programme of economic development. Totals 1,210,1811,482,7721,312,063 4,005,016 Motivation for the additional funds requested for the entities:

74. MTEF 2014/15 FY 74 Item Descriptions 2014/152015/162016/17Total MTEF PERIOD Motivations R’000 Co-operative Tribunal114,34515,26529,611 The Co-operatives Amendment Bill was approved by both houses of Parliament, i.e. National Assembly in November 2012 and National Council of Provinces (NCOP) in May 2013 Co-Operative Development Agency 146,20062,000108,201 Support to the Co- Operative Apex Organisation 14,717 5,41710,135 Totals 365,26285,682147,947 Funds requested for new priorities

75. 75 Annexure D Second Quarter Report - Key Highlights

76. 76 Key Achievements SG SG 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  Industrial Policy Action Plan (IPAP) Annual Report prepared and approved by DG and Minister.  Key research project undertaken on smoke detectors study to indicate possibility of designation.  Part of the 2013-2014 Family Planning tender (all SA-made contraceptives) worth est. R 100 million has been designated. Preliminary data show that 70% of the 2013-2014 anti-TB tender worth R 850 million has been won by SA manufacturers (in the absence of designation).  Instruction Notes for Power and Telecom Cables, and Solar Water Heaters (SWHs) were published by the National Treasury during the period under review. Industrial Development

77. 77 Key Achievements SG SG 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  ITAC issued final regulations on scrap metals export controls in August 2013. The regulations calls for a Price Preferential System which will come into effect from 16 September 2013.  A draft instruction note submitted to National Treasury for the designation of Valves Products and Actuators and is currently being reviewed.  Practice Notes on Revised NIPP policy are currently being considered jointly by the dti and National Treasury.  Launch of the Solar PV Localisation Roadmap in conjunction with the Solar PV Industry Association.  APORDE Capacity Building Programme and parallel workshops conducted. Industrial Development

78. 78 Key Achievements SG SG 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  Significantly assisted EDD and ITAC in formulating Scrap Metal policy intervention which will create a significant cost advantage for local processing industries (i.e. steel mini-mills, foundries and secondary smelters).  Launch of the SABS Local Content Verification Office and verification done on the framework for the verification of local production of busses and rail rolling stock; and Johannesburg: Rea Vaya BRT Busses for Phase 1B Route has started.  Made substantive progress on tripartite negotiations on TBT Chapter.  The Pan African Quality Infrastructure (PAQI) was launched in Kenya on 30 August 2013. South Africa, through SANAS, NMISA and SABS holds the secretariats for 3 of the 4 PAQI structures, namely AFRAC, AFRIMETS and AFSEC as well as the Chairmanship of AFRAC. Industrial Development

79. 79 Key Achievements SG SG 1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  Establishment of the Mr Price Footwear and Leather Goods Cluster which will see the low end market being supplied with locally manufactured goods.  A combined approval to date of more than R2.1bn has been achieved and over R1.27bn has been disbursed to the participating enterprises from CIP and PIP respectively. Since inception 20 385 jobs have been created as a result of the support.  The Workplace Challenge Programme (WCP) -13 new companies participating.  64 projects with the investment value of R2,4 billion have been supported under MIP incentive.  7 projects supported under AIS.  13 projects supported under the Film incentive.  87 projects supported under the MCEP incentive. Industrial Development

80. Trade, Investment & Exports SG 2: Build mutually beneficial regional & global relations to advance SA’s trade, industrial policy & economic development objective  Developed and advanced SA/SACU negotiating positions for T-FTA.  Monitored the implementation of the SADC Trade Protocol commitments towards South Africa.  2002 SACU Agreement amended to establish SACU Summit.  Cab memo prepared on SA position to promote a development integration agenda in SACU aligned to SA’s regional integration approach.  Tariff modalities not re-opened and agreed modalities reflect SACU’s positions very well.  SADC Model Bilateral Investment Treaty Template approved by MTF aligned to SA position. 80

81. Trade, Investment & Exports SG 2: Build mutually beneficial regional & global relations to advance SA’s trade, industrial policy & economic development objective  Cab memo on options of SA approach to SACU developed resulting in prioritisation of engagements with BLNS at Presidential level.  2 National Pavilions organised in 31 August 2013, namely: FILDA and FACIM  Bilateral meeting held with the Namibian Trade and Industry Minister in August 2013.  Facilitated a seminar on construction and tourism sectors during a visit by the Tunisian Minister of Tourism in August 2013. 81

82. Trade, Investment & Exports SG 2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development objective  South Africa registered its position in support of the extension of AGOA beyond 2015 and pressed for the need for the country’s continued retention in AGOA as a beneficiary during the AGOA Forum held in Addis Ababa, Ethiopia, 9-13 August 2013.  Progress Report on NTBs with respect to Brazil concluded.  Successful 10th SA-UK Bilateral Forum, Sub Committee on Trade, Investment and Economic Issues held in Cape Town on 09-10 September 2013.  Task Team established and coordinated research and analysis for SA Country Chapter of BRICS Joint Trade Study. 82

83. Trade, Investment & Exports SG 2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development objective  Facilitated the Swiss Business Forum in Cape Town in September.  Held six Government to Government Platforms.  Hosted seven Successful Technical and Business missions (Africa Bilateral).  Facilitated Exports to the tune of R1 198 million.  Achieved R11.5 billion pipeline of investment in Renewable Energy projects.  Trained 341 companies under the Programme to raise awareness on Export Processes. 83

84. Broadening Participation SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth  Draft Broad-Based Black Economic Empowerment Act classified as Section 76. 8 public hearings conducted in 9 Provinces. Comments from public hearings have been incorporated.  Draft Government-Wide Action Plan presented at the recent Cabinet Lekgotla.  Public comments on the B-BBEE Codes of Good Practice submitted to the Minister for consideration.  Launched the Bachelor of Economic Development Degree offered through the University of Western Cape. 84

85. Broadening Participation SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth  Establishment of Sector Specific Regional Industrial Clusters (1 st cluster : Mpumalanga Stainless Steel Cluster).  Support Programme for Industrial Innovation (SPII) – 20 new projects approved to the value of R 58.96 million.  A total of 1135 researchers supported - Support Programme for Technology and Human Resources for Industrial Progamme (THRIP).  30 incubators have been approved under the Incubation Support Programme. 85

86. Broadening Participation SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth  The President has assented to the Co-operatives Amendment Act, 2013. The Act has been published in the government gazette No. 36729 (Notice No. 558) of 05 August 2013.  Held the International Day of Co-operatives in Durban in July 2013.  Supported 10 projects under the ISP incentive.  Supported 64 projects under the CIS incentive.  Supported 263 projects under the BBSDP incentive. 86

87. Regulation SG 4: Create a fair regulatory environment that enables investment, trade & enterprise development in an equitable & socially responsible manner  Policy Framework and Licensing of Business Bill developed and public consultations conducted.  Policy Framework and Lotteries Amendment Bill developed and public consultations conducted. Currently being debated in Parliament.  Policy framework and National Credit Amendment Bill developed and approved by Cabinet for public consultations.  Impact Assessment Study on the Liquor Act and Draft Policy developed.  Final Policy Framework on Intellectual Property presented and approved by Cabinet for public consultations.  Legal Metrology Bill was certified after engagements with State Law Advisers. 87

88. Administration & Co-ordination SG 5: Promote a professional, ethical, dynamic, competitive & customer-focused working environment that ensures effective & efficient service delivery  Vacancy Rate is at 10.13% - increase was due to 52 new posts created since April 2013.  Statistics for women in Senior Management Service (SMS) positions is at 43.97% and the people with disability is at 2.52%.  Received Top Award for best government department in women empowerment.  All eligible creditors’ payments were processed within 30 days.  Launched the Small Business Connect newspaper  Launched the 2013 Big Break Legacy TV Show  18 exhibitions and outreach initiatives conducted 88

89. Summary of Expenditure vs Projections as at 31 August 2013 The expenditure based on the year to date projections of R3,870 billion, is 85.1% or R3,323 billion, implying an under-spending of R547 million (14.1%). Overview of expenditure per programme: 89 Programme Revised budget 2013/14 R’000 YTD projection R'000 YTD expenditure R'000 Variance Available Budget R'000 Value R'000 % Administration 694,029271,855276,940(5,085)(1.87%)417,089 International Trade and Economic Development 138,63845,02446,834(1,810)(4.02%)91,804 Broadening Participation 964,807426,915419,2347,6811.80%545,573 Industrial Development 1,606,074888,506847,12341,3834.66%758,951 Consumer and Corporate Regulations 256,157132,821120,88711,9348.99%135,270 Industrial Development: Incentive Administration 5,543,1341,934,6681,465,922468,74624.23%4,077,212 Trade and Investment South Africa 369,741170,959146,49924,46014.31%223,242 TOTAL 9,572,5803,870,7483,323,439547,30914.14%6,249,141

90. Summary of Expenditure vs Projections as at 31 August 2013 Overview of expenditure per economic classification: 90 Economic classification Revised budget 2012/13 R'000 YTD projection R'000 YTD expenditure R'000 Variance Available Budget R'000 Value R'000% Compensation of employees 854,246335,255308,69126,5647.92%545,555 Goods and services 636,767260,123239,22120,9028.04%397,546 Payments for Financial Assets 00604(604)0.00%(604) Payment for capital assets 22,1106,9745,3381,63623.46%16,772 Transfers & subsidies 8,059,4573,268,3962,769,586498,81015.26%5,289,871 TOTAL 9,572,5803,870,7483,323,439547,30914.14%6,249,141

91. Reasons for material expenditure variance Item description Amount (R’000)Reasons for under/(over) expenditure Compensation of employees 26,564 Under spending due to 144 (10%) vacant positions out of 1421 posts Good & Services 20,902 Under spending occurred largely on business and advisory consultants due to: Payment not made to Deloitte consultants due to deviations from payment schedule and SLA. The final report for the studies of the Optimal Economies of scale to support localization which was received late, payment is anticipated during September 2013 Encompassing study of BEE deals has been concluded, however, the final payment has not been made as the study had to be vetted by the Chief Economist. Payment will be made after final sign-off of the report. Under expenditure on travel is mainly due to outstanding foreign mission accounts Capital 1,636 The procurement of hardware and software for the Integrated Electronic Management System (IEMS) is in the process of being finalised by SITA. Transfer & subsidies Centurion Aerospace Village6,636 R6.6 million earmarked for the Centurion Aerospace Village could not be disbursed due to an outstanding business plan and Memorandum of Agreement INTSIMBI: National Tooling Initiative21,800 Payment of R21.8 million was submitted to Finance but could not be processed due to the unavailability of the BAS system CSIR: National Foundry Technology Network: Metals 7,065 Payment of R7 million was submitted to Finance but could not be processed due to unavailability of the BAS system

92. Reasons for material expenditure variance (continued) Item description Amount (R’000)Reasons for under/(over) expenditure National Consumer Commission 10,033 Payments are made on a monthly basis in line with the NCC’s spending pattern. Coega Development Corporation100,000 The under expenditure was as a result of a R100 million claim received but not submitted to Finance for payment due to compliance issues not met in terms of the funding agreement. Payment is anticipated to be made during September 2013. Small and Medium Enterprise Development Programme (2,839) Over expenditure of R2.8 million under SMEDP is due to more claims received and paid than anticipated.. It should be noted that although the expenditure is more than the YTD projections it is still within the allocated budget. Enterprise Investment Programme(123,641) Over expenditure of R123,6 million under EIP is due to more claims received and paid than anticipated. It should be noted that although the expenditure is more than the YTD projections it is still within the allocated budget. Manufacturing Competitiveness Enhancement Programme 252,188 R252.1 million under the Manufacturing Competitiveness Enhancement Programme could not be disbursed as a result of claiming procedures that were not yet in place. Business Processing Service Incentives(4,240) Over expenditure of R4.2 million under BPSI is due to more claims received and paid than anticipated. It should be noted that although the expenditure is more than the YTD projections it is still within the allocated budget. Film & TV Production Incentive18,884 R18,5 million under the Film and Television Production Incentive is due to outstanding Tax Clearance Certificates and the final ruling for co-productions.

93. Reasons for material expenditure variance (continued) Item description Amount (R’000)Reasons for under/(over) expenditure Automotive Production and Development Programme 205,927 R205.9 million earmarked under the Automotive Production and Development Programme could not be disbursed as anticipated mainly due to the delay with the appointment of the consulting engineer as well as the production cycle. Special Economic Zones: Investment Incentives50,000 R50 million under the Special Economic Zones: Investment Incentives could not be disbursed as anticipated as the adjudication committee was not appointed. The first meeting is planned to take place during September 2013. Export Market and Investment Assistance(20,901) Over expenditure of R20,9 million under EMIA is due to more claims received and paid than anticipated. It should be noted that although the expenditure is more than the YTD projections it is still within the allocated budget. Black Business Supplier Development Programme(37,914) Over expenditure of R37.9 million under BBSDP is due to more claims received and paid than anticipated. It should be noted that although the expenditure is more than the YTD projections it is still within the allocated budget. Co-Operatives Incentive Scheme(15,915) Over expenditure of R15.9 million is due to more claims received and paid than anticipated. It should be noted that although the expenditure is more than the YTD projections it is still within the allocated budget. Critical Infrastructure Programme34,186 Funds earmarked under the Critical Infrastructure Programme could not be disbursed due to the introduction of a new requirement in the funding agreement, which requires auditors verification reports before clients submit claims.

94. 94 Annexure E: Acronyms & Abbreviations

95. Acronyms and Abbreviations TERMDEFINITION AISAutomotive Investment Scheme ACSAAirports company of South Africa BAWBeijing Automotive Works B-BBEEBroad Based Black Economic Empowerment BBSDPBlack Business Supplier Development Programme BITCBotswana Investment and Trade Centre BPSBusiness Process Services BRICSBrazil, Russia, India, China and South Africa CGETIContact Group on economic and Trade Issues CIPCritical Infrastructure Programme CIPAChina Investment Promotion Agency CIPCCompanies and Intellectual Property Commission CIPTCompanies and Intellectual Property Tribunal; CISCo-operative Incentive Scheme CTCPClothing and Textiles Competitiveness Programme COMESACommon Market for Eastern and Southern Africa 95

96. Acronyms and Abbreviations TERMDEFINITION EACEast African Community EPAEconomic Partnership Agreement EIPEnterprise Investment Programme EMIAExport, Marketing and Investment Assistance EUEuropean Union EVElectric Vehicle FAWFirst Automobile Works FIFAFederation of International Football Association FTAFree Trade Agreement GDPGross Domestic Product IBMC-CAITInternational Brand Management Centre – China Association of International Trade IMFInternational Monetary Fund IPIntellectual Property IPAPIndustrial Policy Action Plan ITIsInvestment and Trade Initiatives IWFIsivande Women’s Fund 96

97. Acronyms and Abbreviations TERMDEFINITION MCEPManufacturing Competitiveness Enhancement Programme MHVCMedium and Heavy Commercial Vehicle MIPManufacturing Incentive Programme MoUMemorandum of Understanding NAFTANorth American Free Trade NDPNational Development Plan P-AISPeople-Carrier Automotive Incentive Scheme SACUSouthern African Customs Union SADCSouthern African Development Community SAGDASouth African Graduate Development Association sedaSmall Enterprise Development Agency SEZSpecial Economic Zone SMMESmall, Medium and Micro Enterprises SMSSenior Management Service SPIISupport Programme for Industrial Innovation stpSeda Technology Programme T-FTATripartite Free Trade Agreement 97

98. Acronyms and Abbreviations TERMDEFINITION THRIPTechnology and Human Resources for Industry Programme TSPTourism Support Programme UNUnited Nations WCPWorkplace Challenge Programme YEDSYouth Enterprise Development Strategy 98