1. Date: 23 April 2013 Director-General Lionel October
Presentation to the Portfolio Committee on Trade and Industry- the dti’s 2013/ /2016 Annual Performance Plan
Date: 23 April 2013
Director-General
Lionel October

2. CONTENTS the dti’s Vision, Mission and Strategic Goals
Key interventions for 2013/14
Allocated resources
Challenges

3. VISION
“A dynamic industrial, globally competitive South African economy, characterised by inclusive growth and development, decent employment and equity, built on the full potential of all citizens”

4. STRATEGIC GOALS
Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation.
Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives.
Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth.
Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner.
Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery.

5. CORE PROGRAMMES AND CLUSTERS
Industrial Development – the development of policies and strategies that promote sector competitiveness, growth, job creation and efficient administration of support measures.
Trade, Investment and Exports – the strengthening trade and investment links with key economies and fostering African development, including through regional and continental integration and development co-operation in line with the New Partnership for African’s Development (NEPAD).
Broadening Participation - the development of interventions and strategies that promote enterprise growth, empowerment and equity
Regulation – the development and implementation of coherent, predictable and transparent regulatory solutions that facilitate easy access to redress and efficient regulatory services for economic citizens.
Administration- effective co-ordination of departmental programmes and provision of necessary support for efficient implementation.

6. OVERVIEW OF the dti’s KEY PLANNED INTERVENTIONS OVER 2013/14

7. KEY INTERVENTIONS – INDUSTRIAL DEVELOPMENT
Upscale industrial policy by tabling the annual rolling Industrial Policy Action Plan (IPAP) to Cabinet and produce quarterly implementation reports.
Three (3) sector specific action plans developed to influence and respond to the changing economic environment to enhance manufacturing potential.
Complete and submit designation templates to the National Treasury for two (2) subsector/sectors for local procurement.
Two (2) key research projects will be undertaken to facilitate development of interventions to expand value-added activities in existing and new sectors of the economy including beneficiation.

8. KEY INTERVENTIONS – INDUSTRIAL DEVELOPMENT
Finalisation and Implementation of the Special Economic Zone (SEZ) Act
Special Economic Zone (SEZ) policy and Bill approved by Cabinet and endorsed by Parliament
Enhanced technological competencies by supporting students and 700 researchers via the Technology and Human Resources for Industry (THRIP).
Support Programme Industrial Innovation (SPII) implemented by supporting 20 new projects valued at R43m

9. KEY INTERVENTIONS – INDUSTRIAL DEVELOPMENT
Tool-making apprentice programme
Support 385 students enrolled for the tool making apprentice programme
Industrial upgrading programme
Support 220* workers trained through the industrial upgrading programme
940 enterprises approved to participate in the Export Marketing and Investment Assistance (EMIA) scheme
51 companies supported through the Workplace Challenge Programme (WCP)
*There is a misprint on the target of 20 on the Annual Performance Plan It should read 220.

10. Industrial Development Incentives
Description
Planned 2013/14
Number of firms/projects supported
Potential jobs supported
Investment
leveraged
Industrial Financing
Automotive Incentive Scheme (AIS) 25
550
R1,6bn
Passenger Automotive Incentive Scheme (PAIS) 5 -
R500m
Business Process Services (BPS) 8
3000
R400m
Film and Television 65
R1,8bn
12 I tax allowance 10
2 200
R10bn
Critical Infrastructure Programme (CIP) 12
4 000
R6bn
Manufacturing Competitiveness Enhancement Programme (MCEP): Production Incentive
300
2 500

11. KEY INTERVENTIONS – TRADE, INVESTMENT and EXPORTS
Africa regional development programme implemented-progress report to be produced on implementation of agreed programme and projects for priority development areas in SACU, SADC-FTA and SDI infrastructure projects.
Conclusion of Economic Partnership Agreement (EPA) trade negotiations with the European Union (EU), Southern African Customs Union (SACU) India Preferential Trade Agreement (PTA), Southern African Development Communities (SADC)- East African Community (EAC)- Common Market For Eastern and Southern Africa (COMESA) Free Trade Agreement (FTA) –Tripartite-Free Trade Agreement (T-FTA): Status report to be produced on progress towards conclusion of trade negotiations.

12. KEY INTERVENTIONS – TRADE, INVESTMENT and EXPORTS
Increased manufactured exports under EMIA by increasing the value of exports to R900 m
Investment facilitation in targeted sectors- R50bn

13. KEY INTERVENTIONS – BROADENING PARTICIPATION
seda Technology Support Programme (stp)
Disburse R119 m to seda for the establishment of new incubators and support of existing incubators; and support of Small Micro and Medium Enterprises (SMMEs).
Performance monitoring reports on seda technology programme to be produced.
Implementation of Co-operative Amendment Act
Approval of business case for the establishment of the Co-operative Development Agency and phased-in implementation.
Approval of business case for the establishment of the Co-operative Tribunal and phased-in implementation .

14. KEY INTERVENTIONS – BROADENING PARTICIPATION
Implement the National Strategic Framework on Gender and Women Empowerment
National Strategic Framework on Gender and Women empowerment to be submitted to Cabinet for approval and a phased-in implementation report to be produced
Isivande Women Fund
Approve 18 new projects
Implement B-BBEE Amendment Act and Revised B-BBEE Codes of Good Practice
Approval of B-BBEE Amendment Act
Approval of revised B-BBEE Codes of Good Practice

15. KEY INTERVENTIONS – BROADENING PARTICIPATION
1 560 enterprises approved for Black Business Supplier Development Programme (BBSDP)
Finalisation and implementation of Informal Sector Strategy
Finalisation and implementation of Youth Enterprise Development Strategy (YEDS)

16. Broadening Participation Incentives
Description
Planned 2013/14
Number of firms/projects supported
Potential jobs supported
Investment
leveraged
Enterprise Incentive Programme (EIP): Manufacturing Incentive Programme (MIP)
235
4 200
R3,5bn
EIP: Aquaculture Development Enhancement Programme (ADEP) - (New Incentive) 10
220
R75m
Cooperative Incentive Scheme (CIS)
375 -
Incubator Support Programme (ISP) (New Incentive) 50
540
R800m

17. KEY INTERVENTIONS - REGULATION
Impact assessment of regulation on business and economic citizens
Two (2) Regulatory Impact Assessment Reports with recommendations for approval on Liquor and Gambling.
Policies, Bills and Regulations to enforce fair business practices
Develop:
Two (2) policies for approval on Intellectual Property and Gambling Act.
Four (4) Bills for approval on National Credit Act, Lottery, Liquor and Business Acts.
Two (2) regulations for publication.

18. KEY INTERVENTIONS – ADMINISTRATION
Attract, develop and retain professional and skilled officials
Reduction of the vacancy rate to 7%.
Reduction of the staff turnover rate to 7%.
Employment of People With Disability increased to 2.9% .
Employment of Women in senior management positions increased to 43.8% .
Creditors’ payments made in accordance with legislative requirements made within 30 days.
Service Delivery Improvement Plan - Report produced on the implementation of Service Delivery Improvement Plan (SDIP). 18

19. KEY INTERVENTIONS – ADMINISTRATION
Public Awareness Platforms and Events
Conduct 12 programme-focused publications to improve the public awareness.
Conduct 14 multimedia awareness campaigns.
Conduct 80 events, outreach engagements and exhibitions
20 Events
40 Outreach engagements
20 Exhibitions 19

20. ALLOCATED BUDGET

21. Medium Term Expenditure Framework
2013/14
2014/15
2015/16
Medium-Term Estimates (R ’000)
Programmes
Medium-Term Expenditure Framework (MTEF)
Administration
690,1
720,6
748,3
International Trade and Economic Development
138,1
R 150,7
156,9
Broadening Participation
968,3
1 004,0
1 054,9
Industrial Development: Policy Development
1 606,5
1 771,3
2 049,8
Consumer and Corporate Regulation
256,2
248,2
258,3
Industrial Development: Incentive Administration
5 543,1
5 645,7
6 704,1
Trade and Investment South Africa
369,7
417,4
432,4
TOTAL FOR PROGRAMMES
9 572,6
9 958,0
11 404,7

22. Alignment of the Budget to the Strategic Goals
Alignment with Govt Outcomes
Budget Allocation per Strategic Goal
R’000
1. Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation.
Decent employment through inclusive growth
2. Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives.
Create a better South Africa, a better Africa and a better world
3. Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth.
4. Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner.
5. Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery.
An efficient, effective and development- oriented public service and an empowered, fair and inclusive citizenship

23. 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.

24. THANK YOU
QUESTIONS ?