1. TISA’S APPROACH AND PERFORMANCE Presentation to the Portfolio Committee on Trade and Industry Lungisa Magwentshu, CEO: TISA 18 June 2003

2. 2 Policy Background: Microeconomic Reform Strategy (MRS) The Microeconomic Reform Strategy (MRS), represents the integrated action plan of the economic, investment and employment cluster Macroeconomic stability is necessary but not sufficient for growth Therefore improvement of the business environment at the microeconomic level is necessary

3. 3 Policy Background: Microeconomic Reform Strategy (MRS) Key microeconomic improvement measures –Crosscutting issues: technology, human resource development, access to finance and infrastructure –Competitive input sectors: transport, telecommunications and energy –Prioritised growth sectors: export sectors, tourism, agriculture, ICTs and cultural industries –Equity and growth: BEE, small business development, employment and geographic spread

4. 4 Policy Background: Integrated Manufacturing Strategy The Integrated Manufacturing Strategy (IMS) is the DTI Group’s contribution to the MRS. It identifies eight areas of intervention –Market access –Regional production –Beneficiation and value-addition –Equity and economic participation –Knowledge-intensity and services integration –Integrated value matrices –Access to finance –Policy coherence

5. 5 Policy Background: Integrated Manufacturing Strategy The IMS is to be implemented through the following seven mechanisms –Customised sector programmes –Broad-based programmes / Standardised offerings –Competitive market access –Regulatory environment –Investment promotion –Access to finance –Policy coherence

6. 6 TISA’s role: Customised Sector Programmes TISA’s primary role: development and implementation of Customised Sector Programmes Integrated Value Matrices help identify constraints to, and opportunities for, development of Sectors, their sub-sectors and related industries Development of partnerships with industry, within DTI, and with other government departments and stakeholders is key to integrated actions to develop sectors

7. 7 TISA Structure and Key Functions

8. 8 Priority Sectors Agro-processing Automotives Aerospace, Rail and Marine Chemicals and Allied Industries Clothing, Textiles, Leather and Footwear Cultural Industries ICT & Electronics Metals and Mining Services (BPO, Project Management) Tourism

9. 9 Customised Sector Programmes 8 IMS SECTOR PROGRAMMES MONITOR & EVALUATE 1A) PRIORITISE SUB-SECTORS 1B) CHOOSE TARGETED LEVEL OF INDUSTRY UPGRADING = Evaluate Potential (Growth, Employment, Equity) = Evaluate Institutional Factors = Consult with Industry 2. RESEARCH SUB-SECTOR= Global (Quantitative, Qualitative, Industry Consultation) = Domestic (Quantitative, Qualitative, Industry Consultation) 3. INTERPRET RESEARCH= SWOT= Value Matrix Diagram = GAP Analysis = Critical Success Factors 4. FORMULATE SUB-SECTOR VISION / STRATEGIC OBJECTIVES = Consult DTI Divisions / Government Departments = Consult Industry + Related Stakeholders 5. IDENTIFY AND DEVELOP LEVERS= Consider all levers available to Government = Develop interventions 6. LEVERS: ECONOMIC / INSTITUTIONAL EVALUATION = Rank = Justify selection 7. GOVERNMENT STRATEGIC OBJECTIVES AND CHOICES: CSP + LEVERS = EXBO approval = Industry buy-in = Cabinet approval 8. IMPLEMENT CUSTOMISED SECTOR PROGRAMME = Strategic Partnerships: Industry, DTI, Govt Depts, S/holders = Apply Levers to achieve: - Competitiveness - Exports - Investment- Equity - Employment STAGES VISIONVISION LEVERSLEVERS IMPLE- MENT UPGRADE CSP’S

10. 10 TISA – Division of Work Policy development Leadership / Co-ordination Investment Promotion and Development Export Promotion and Development Internal Business Processes

11. 11 Conceptualising South Africa’s Sectors Labour intensive sectors –Agro cluster: Agriculture + Agro-processing = food, beverages, wood, paper … –High value agriculture / aquaculture –Clothing, Tourism, Cultural industries “Industrial” resource-based excl. agricultural –Minerals, Metals, Chemicals … Advanced manufactures –Auto’s, aerospace, electronics … Exportable services –BPO esp. Call Centres, Project management services

12. 12 TISA’s Sectoral Priorities Advanced manufacturing –Electro-technical –Aeronautics –Capital goods Labour intensive sectors –Agro-processing Food, beverages … –Clothing –High value agriculture –Aquaculture

13. 13 Key Sector Projects – 2003/4 Agro-processing –Establishment of food control unit (with NDA & DOH) –Development of national Aquaculture policy (with Marine & Coastal) –Regional Trade & Logistics Perishables Hub

14. 14 Key Sector Projects – 2003/4 Automotives –MIDC review: 2012 –Logistics supply chain “de-bottlenecking” –Taxi Recapitalisation Project –Strategic Investment Team –Benchmarking Aerospace, Rail and Marine –Develop Maritime Strategy –Develop Aerospace Strategy

15. 15 Key Sector Projects – 2003/4 Chemicals and Allied Industries –Establishment of Joint Action Groups in range of sub-sectors –Pharmaceuticals: tariff structure revision –Petro-chemicals hub Clothing, Textiles, Leather and Footwear –Establishment: Clothing Industry Development Council –Country of Origin Labeling –SACU-US trade negotiations

16. 16 Key Sector Projects – 2003/4 Clothing, Textiles, Leather and Footwear –Establishment: Clothing Industry Development Council –Country of Origin Labeling –SACU-US trade negotiations –Development of wool, mohair, cotton and ostrich leather pipelines –Electronic trading hub for CMTs

17. 17 Key Sector Projects – 2003/4 ICT & Electronics –ICT Development Council –Development of Electronics manufacturing strategy –Promotion of Business Process Outsourcing –Youth Internship Programme –SAVANT Website – international awareness –BEE company database

18. 18 Key Sector Projects – 2003/4 Metals and Mining –Address Import Parity Pricing –Scrap Export Regulations –Gold Financing Scheme –Pechiney –IFC Feasibility Study Funds

19. 19 Key Sector Projects – 2003/4 Tourism –National development and investment promotion strategy (with DEAT) –National Tourism Transformation Strategy (with DEAT) –National Tourism Development Team Cultural Industries –Government Cultural Industry Cluster –Cultural Industry Database

20. 20 TISA’s Performance 2002/3 Investments and Jobs by Sector

21. 21 TISA’s Performance 2002/3 Investments and Jobs by Province