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

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

3. 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 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.

4. 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

5. 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 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

6. 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)

8. Localization Forums

9. Inudstry Associations – SPX Centre Relationship

11. Buyer-side process toward localization

12. 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

13. 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

14. Main Topic Thank You Situation within Enterprise Development Sector
For Enquiries Contact:
Marcel Newsome
Regional UNIDO SPX Chief Technical Advisor
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