BUDGET PRESENTATION March 2003 Dr Alistair Ruiters Director-General

The South African Economy Assumptions underlying the MTSF   South Africa has an open economy - international economic strategy is critical  South Africa’s growth and development is intertwined with Africa’s growth and development   The state has an activist role in ensuring that economic growth and development benefits all South Africans  The linkage between economic growth and greater levels of employment and equity are not automatic - the state must develop and strengthen these linkages  The state can leverage greater outcomes and impact through partnerships with other economic actors

The South African Economy Assumptions underlying the MTSF The manufacturing sector can leverage economic growth and development across the economy  South Africa must grow the size of the market for its products and services  - domestic, regional, global Fair, competitive, and efficient markets are critical in providing a conducive environment for economic growth and development  Raising investment levels in the economy is the primary driver of economic growth The South African economy is dualistic in nature 

the dti’s Strategic Goals Accelerate economic growth Create new employment opportunities Reduce economic inequalities

Key Performance Areas Increase in economic output Increase in employment Increase in the contribution of small enterprises to GDP Progress in achieving broad-based BEE, with emphasis on black women More equitable geographic spread of economic activities Increase in direct investment, with emphasis on investment in priority sectors Increase in the value and volume of exports, with emphasis on priority sectors Increase in investment in the drivers of South Africa’s future competitiveness - skills, technology and infrastructure  

Implementing the Strategy Types of dti offerings Policy Legislation and regulation Finance Procurement Information Partnerships

the dti House Enterprise and Industry Development Division Trade and Investment South Africa Executive Management Unit External Relations & Policy Co-ordination Unit International Trade Development Division Marketing Division The Enterprise Organisation Consumer and Corporate Regulation Division Group Systems and Support Services Division

Offerings, Projects and Programmes Implementation strategy The dti Strategy Growth Employment Equity Vision 2014 Increased Output Increased Investment Increased Jobs Increased BEE Increased WE Increased geographic spread Increased competitiveness Key Performance Areas Offerings, Projects and Programmes Policies Legislation and regulation Finance Procurement 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 R2.6bn SWEEEP PPPs 1013 posts IMPACT OUTCOMES OUTPUTS PROCESSES INPUTS

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

Allocation of funds per programme Including transfer payments

The 3 year outreach in support of strategy

Highlights of the 2003/04 budget Allocation of R44m to operationalise ITAC Continued support for Proudly SA - R4m New contribution for Co-operatives development - R3,5m per year for the next 3 years NAMAC - increase of R62m (344%) for BRAIN and MAC roll-out programme Continued support for SAWEN - R2m Allocation of R6m for TWIB CIPRO - additional R9m to support trading entity until self-sustaining

Highlights of the 2003/04 budget Additional R5m to Khula to ensure business development IDZ - increase of R86m (72%) to a total of R205m for projects including John Ross, Coega, JHB Int Airport Reduction in SDI’s as Provincial Governments become main drivers of the process TISA S21 integration into the dti EMIA increase of R5m from R135m to R140m for exporter assistance Enterprise development increased by R25m to R256m

Highlights of the 2003/04 budget MDP incentives reduced by R60m as part of phasing out of old scheme Competitiveness Fund increased by R15m in support of IMS Contribution of R9m to MFRC to regularise the micro finance industry Allocation of R49m for marketing, awareness and customer care Allocation of R30m for the dti 1-stop campus and ICT PPP

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