UNIDO SPX CSDP PROGRAMME Situation within Enterprise Development Sector Central Topic UNIDO SPX CSDP PROGRAMME Presentation for Ports Conference 11 December 2009

Purpose for this presentation Present a case study on leveraging large scale infrastructure projects to spur local industrial supplier development

UNIDO Background and Purpose UNIDO Purpose is to improve the quality of life of the world’s poor by helping countries achieve sustainable industrial development Organization chartered by United Nations in 1966, with 173 Member States and programmes in 45 countries UNIDO Subcontractor and Procurement Exchange (SPX) Programme operating since 1981 with over 70 programmes in 45 countries focusing on linking local manufacturing companies to industrial buyers.

Programme Purpose (continued) UNIDO Background and Purpose (Cont.) Consolidate a range of industrial development experiences from around the world and help implement programmes relevant to the local context UNIDO entered South Africa - DTI invitation to help facilitate programmes to support sustainable local industrial supplier manufacturing sector (CSDP) CSDP Objectives – The purpose of the Competitive Supplier Development Programme is to encourage large-scale buyers to support South Africa industrial development through the increased purchase of locally produced industrial content

Support for purchase of locally produced content In 2007 South Africa DTI and DPE established national mandates for local industry to support import substitution by increasing the purchase of locally manufactured products – ASGISA, NIPP, CSDP In 2008 Transnet and Eskom implemented their Competitive Supplier Development Programme (CSDP) to leverage state spending on infrastructure such as their new rail, harbour and power plant projects to identify opportunities to link local suppliers to large capital expenditures such as the building of In 2008 Unido was requested to implement a series of tools and initiatives to help align and link local suppliers to key buyer networks in support of CSDP In mid 2009 SPX programme began collaboration with key local industrial associations to offer their network of suppliers access to key tools and assistance in the matchmaking process

Key South Africa Programme Partnerships Government Sponsorship Key Manufacturing sector Industrial Associations Department of Public Enterprise (DPE) NFTN (Foundry Sector) Department of Trade and Industry (DTI) NTIP (Tooling) SAISC (Steel Construction) Department of Science and Technology (DST) CDA (Copper Development) EEAIA (Electrical Engineering & Allied Industries) Key National Industry Companies NAACAM (Auto Suppliers Associations) NIASA (Nuclear Industry Association of South Africa) Transnet Freight Eskom SASSDA – Stainless Steel Association Sasol Pebble-Bed Modular Reactor CEEC (Capital equipment export) PetroSA SEIFSA (Steel & Engineering Industries Federation of South Africa – 36 associations) EMF – (Electro-mechanical forum)

Localization Forums

Inudstry Associations – SPX Centre Relationship

Buyer-side process toward localization

How we support Buyer Networks Pre-strategy Support Buyer programme orientation brief Understanding of local supplier environment Explanation of SOE linkage to UNIDO programme List of associations and contacts Identification of other industries and sectors for consideration Strategy Planning Support Access to local supplier databases Assist in review of imported items for localization Potential supplier pre-development Facilitate discussion forums with relevant associations Strategy Implementation Support Forwarding opportunities through associations to network of relevant suppliers Shortlist of relevant suppliers Integration with other relevant supplier development support services Results and impact reports

Key Programme Considerations and Parameters Programme does not bypass PFMA or other regulatory requirements Not intended to bypass standard buyer procurement processes Intended to facilitate competitive supplier support No requirement for buyer to use recommendations of the programme or contract developed suppliers Participants willing to sign individual and general NDAs Programme will ensure transparent Project is targeting manufacturing and inputs opportunities Programme does not work directly with individual suppliers but through associations linked to network of supliers

Main Topic Thank You Situation within Enterprise Development Sector For Enquiries Contact: Marcel Newsome Regional UNIDO SPX Chief Technical Advisor Mobile: 083 254 5883 Email: m.newsome@unido.org