Medium Term Budget Policy Statement Presentation to: Joint Budget Committee 17 November 2003

MTBPS CONTENTS Aim of the dti Strategic priorities Some outputs Measurable objectives Adjustment estimates

MTBPS The Aim of the dti: Provide leadership to the SA economy Act as catalyst for transformation and development Support the goals of growth, employment and equity Provide enabling environment for investment and trade Build an adaptive economy for accelerated growth, employment creation and greater equity by 2014

Strategic Priorities Integrated and advanced manufacturing sector Promotion and facilitation of international trade Regulation of enterprise environment Promoting diversification of export products Fair, competitive and efficient market-place Economic empowerment of hdi Economic development of all regions of SA, SADC and Africa

Strategy underpinning the dti budget a strategy map for the dti Growth Employment Equity Vision 2014 Small enterprises Investment Exports and Market Access Regulation Competitiveness platforms Move economy up the value-chain Key Performance Areas Offerings, Projects and Programmes Policies Legislation and regulation Finance Information Partnerships Projects International Trade Development Enterprise and Industry Development Consumer and Corporate Regulation The Enterprise Organisation Trade and Investment SA Implementation strategy Leadership, Policy Coherence and Certainty Institutional alignment Organisational efficiency and efficacy Executive Management External Relations and Policy Coordination Groups Systems and Support Services Marketing Resources R2.844bn SWEEEP PPPs 1013 posts IMPACTOUTCOMESOUTPUTSPROCESSESINPUTS

How the budget supports the strategy (1) R2.844bn is allocated as follows: 18% of the budget supports policy formulation and advocacy, coordination and leadership, trade negotiations, management of incentive schemes and marketing 50.1% supports incentives to address market failures 9.3% supports efficient regulatory services 5.8% state-led financing to address market failures 13.1 % supports specialist services such as technology development and innovation and small business support

How the budget supports the strategy (2) – programme allocations R2.844bn is allocated as follows: 3% for International Trade and Development 36% for Enterprise and Industry Development 4% for Consumer and Corporate Regulation 29% for The Enterprise Organisation 17% for Trade and Investment SA 3% for Marketing 8% for Administration, Research, and Executive Management

Output Targets Subprogramme ITED Output Increased market access Measure Conclusion of bilateral and multilateral agreements Target By early 2005, negotiate agreements with the USA, India, Mercosur, China, Nigeria, European Free Trade Area and the WTO

Output Targets Subprogramme technology Output technology and human resources for industry programme Measure number of researchers, students and enterprises supported Target 1045 researchers assisted students supported 315 enterprises supported

Adjusted Estimates No additional funding requested Rollovers approved Biggest movement to EIDD for: -R45 million for funding BEE projects - maintaining the incubators for start-up SMMEs

Adjusted Estimates No changes to the dti programme and objectives New line items for transfer purposes: -Regional Spatial Development Initiatives -Black Business Supplier Development Programme - Youth Internship Programme, etc - Export consultancy trust fund - International Finance Corporation - Marketing

Adjusted Estimates No additional appropriation requested because: Focus on strategic planning Focus on reprioritisation for synergies Scarce resources allocated to priorities Reprioritisation achieved through efficiencies “sweating the assets”

Increased efficiency Improvement in the alignment of budgeting, planning and implementation

THANK YOU

Progress in implementation of Vote /4 – some highlights (1) Financial closure on the PPP for the campus Establishment and launch of ITAC Commencement of US-SACU FTA negotiations Participation in the WTO Ministerial in Cancun Publication of BEE Strategy and tabling of BEE legislation in Parliament Amendment of National Small Business Act by Parliament Drafting of Cooperatives Policy and legislation Tabling of Liquor and Gambling Bills in Parliament the dti Business Express Phase 2

Progress in implementation of Vote /4 – some highlights (2) Approval of $22m IP investment credits Approval of $42m IP exports credits 726 enterprises benefited from SMEDP R22bn investment secured through SIP R776m infrastructure investment secured through CIF Launch of new Black Business Supplier Development Programme 3000 exporters assisted through EMIA