Presentation to the Portfolio Committee Economic Development

Presentation to the Portfolio Committee Economic Development
EDD Performance against 2014/15 Annual Performance Plan (APP) 3rd and 4th Quarter 2014/15 Presentation to the Portfolio Committee Economic Development 4 August 2015

Structure of the report Third and fourth quarter performance
Presentation Outline Structure of the report Third and fourth quarter performance Third quarter financials 2014/15 Fourth quarter financials 2014/15

Structure of the report
This presentation covers the work that was performed in the 3rd and 4th Quarters, covering the APP that was tabled on the 27th June 2014 for the 2014/15 financial year The APP tabled in June 2014 had a total of 22 KPIs. This report covers work against KPI’s where quarterly targets were set for the quarter or where outputs were delivered against a KPI where there was no quarterly target. KPIs 11, 12, 16, 17, 18 and 19 had no targets or planned outputs for the third quarter. KPI’s 2 and 4 had no targets or planned outputs for the fourth quarter.

Summary of Performance
Target Actual Quarter 3 38 54 Quarter 4 52 57 Total 90 111 2018/11/12

Performance on KPI 1 Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Coordinate and support implementation of selected jobs drivers , through development of monitoring dashboards, collation of data on performance, aligning activities with overall government plans and unblocking obstacles to implementation 1 2 Work completed in Q3: EDD coordinated a steering committee on township economies, with SALGA, National Treasury, the dti, the Department of Small Business, the Department of Rural Development and Land Reform, the Department of Public Works, the IDC, the Gauteng Department of Economic Development, the Department of Cooperative Governance, the CSIR, the Sustainable Livelihood Foundation, South African Cities Networks. The aim of the steering committee’s work is to: Promote the integration of the work on township economies. Integrate township economies with the main urban economic centres through infrastructure development and other economic and social development centres. Collect and collate information on programmatic activities on township economies. Hold bilateral engagements with a number of departments and agencies to discuss and determine specific interventions needing the support of the department. 2018/11/12

Performance on KPI 1 Work completed in Q3:
The integration of the work on township economy through EDD’s intervention, led to a report that highlighted the following: The National Development Partnership Grant managed by National Treasury approved 260 project plans to the value of R3.9 billion; 81 projects in construction were funded in February by the National Development Partnership Grant; sefa developed a toolkit for cooperatives to assist them in applying for loans; The Gauteng Department of Economic Development conducted 64 road shows between July and September As many as 500 entrepreneurs attended some of the road shows. 2018/11/12

Mpumalanga Mapping Report. EDD completed a mapping report on agro- processing opportunities in Mpumalanga, providing information and a needs analysis on agro-processing projects in 18 local municipalities. The report contained an analysis of the Mpumalanga economy, as well as the contribution of the agricultural sector. The objective of the mapping was to firstly understand from each local municipality the extent of agro-processing activities in their own localities. Secondly, the mapping process would help assist functional projects with financial and infrastructure assistance where necessary. For example: The Noble Resources project focuses on crushing soya beans to produce oil in the Lekwa Local. (EDD had assisted in unblocking energy and water challenges as well as the transfer of municipal land to Noble Resources to facilitate the operation of this investment). The project’s on going support needs include – training for emerging farmers and the need to upgrade electricity capacity. 2018/11/12

2. The social economy jobs drivers work under the New Growth Path was coordinated with the following outputs for the quarter: EDD signed an MOU creating a partnership of agreement with the ILO for the development of the Social Economy in South Africa. This also includes co-hosting of the Social and Solidarity Economy Academy in 2015. EDD held a research round table on township economies on 24 February This was convened in partnership with the SA Cities Network and attended by government institutions, research organisations and academia. The round table took stock of existing research on township economies as a basis to support policy and planning. Research was presented and discussion was held a variety of topics including: Townships as domestic tourism destinations The growth of property markets and property prices in Kaya Sands Informal banking and saving systems operated by foreign owned stores and how they acted as a catalysts for growth of those operations 2018/11/12

Performance on KPI 2 Work completed in Q3
Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Participation in Cluster and Outcome 4 processes within government to facilitate achievement of economic outcomes of the MTSF 2 1 Work completed in Q3 Participated in the development of a five-point plan as part of a Technical Implementation War-room to explore interventions to improve energy supply. Work completed in Q4: Support for Outcome 4. Coordinated and compiled reports for Outcome 4 together with the dti for the 3rd quarter cycle report to Cabinet. 2. Coordinated and compiled reports for Outcome 6 together with DPE for the 3rd quarter cycle report to Cabinet.

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Strengthen implementation of the New Growth Path as part of achieving the National Development Plan goals by 2030 1 2 Work completed in Q3: A paper on South Africa’s trade flows over the last few years focusing on manufacturing sectors broadly and catalytic converters in particular was produced. The paper highlights, amongst others, that South Africa is the third largest exporter of catalytic converters in the world and in 2012 sustained thousands of direct and indirect jobs. EDD compiled a progress report on BBBEE with specific reference to the impact of transformation policy on Ownership and Procurement. The authors estimated that R600 billion worth of BEE transactions had taken place up to 2013 and the black business supplier development programme launched by the dti in 2010 have approved applications worth R797 million. Black owned SMMEs have been supported to the tune of R451 million in the 2012/13 financial year. EDD also held a BBBEE workshop with stakeholders from government, private sector and state agencies on the 12th December 2014 on the impact of transformation policies.

EDD hosted a Conference on Aligning Economic Planning and Development across the State on 13-14th March 2015 which was attended by senior officials from national and provincial government and some metro municipalities. The conference addressed the following issues: Integrated economic development planning across the state to ensure that national policies, strategies and plans find expression at the provincial and local level, taking into account the specific context of the different regions. Closer collaboration and support between the different spheres of government The importance of the green economy as a driver of economic growth and the challenges to be addressed for the sector to grow The work of the DST and the dti on the knowledge economy could be further leveraged by the provinces and industry to start new industries and enhance productivity The social economy needs further development – challenges of information, regulatory support and alignment were identified 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Spatial, local and/or provincial initiatives completed to support inclusive growth and job creation, national economic priorities and promote greater accountability 2 3 Work completed in Q3: Support to Provincial economic development. Reviewed the Provincial Growth and Development Plans of the Free State and the North West with recommendations for both Provinces. An engagement with the Free State on integrated economic development planning and implementation took place in October 2014, which was led by the Deputy Minister and supported by the DFI’s. 2. The concept and implementation plan for the Alexandra fresh produce market was finalised and will proceed to the implementation stage. The establishment of a market will enable informal fruit and vegetable traders to buy produce there and be able to store their produce overnight in that facility.

1. The following support was provided to Eastern Cape, Limpopo and Mpumalanga: a) Engagement with the Eastern Cape Provincial department of economic development on integrated economic planning and alignment of provincial economic plans to the National economic development priorities in February 2015 led by the Deputy Minister. b) Supported the Limpopo Department of Economic Development, Environment and Tourism (LEDET) with their strategic planning in January in reviewing of their APP and Strategic plan. c) EDD supported the Strategic Planning Workshop convened by Mpumalanga Department of Economic Development and Tourism in January 2015 and provided guidance in how projects should be aligned to the national policies such as the National Development Plan, Industrial Policy Action Plan and New Growth Path. 2018/11/12

Performance on KPI 4 2. Support on local economic development:
EDD assessed and produced a report with recommendations on the Vhembe Local Economic Development Strategy. b) Engaged the Vhembe District Municipality on integration of economic interventions. The Department of Water and Sanitation was enlisted to provide technical support to resolve water issues for Cooperatives (Maketse Shava’s, Pfukani Youth Development and Mhinga Xikundu Agriculture Co-operative). Alexandra Renewal project: Following the development of the Innovation Hub in Alexandra, EDD partnered in the Alexandra Start Up Weekend event was held on 27 to 29 March 2015 by providing advisory, marketing and communication support for the event. Thirty young entrepreneurs from the Greater Alexandra Municipality took part in the event. Three winners were also selected to be part of the incubation programme under the Innovation Hub. 2018/11/12

Performance on KPIs 5 & 6 Work completed in Q3:
Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual KPI 5: Cabinet – level quarterly progress reports on Strategic Integrated Projects 15 18 KPI 6: Infrastructure projects unblocked, fast-tracked or facilitated 2 5 4 Work completed in Q3: KPI 5: 18 SIP reports reviewed for Cabinet. KPI 6: EDD facilitated the unblocking of the following Water Use Licence Applications (WULAS): Loeriesfontein 2 Wind farm Khobab Wind Farm Sanral Barberspan & Groenfontein WULA – part of the upgrading of the N14 Delareyville to Sannieshoff in the NW province

Performance on KPIs 5 & 6 Work completed in Q3: 4. R37 Modikwa Mine to Bargersville WULA – upgrading of the R37 between 117 kms to 143 kms from Modikwa to Burgersfort, widening of a bridge and construction of a new small bridge 5. Sibongindawo Primary School, part of CSI of Kusile Power Station involves the relocation of a rural school that will benefit 235 learners and uses innovative building technology for the construction.

Performance on KPIs 5 & 6 Work completed in Q4:
KPI 5: 18 SIP reports populated and analysed for Cabinet KPI 6: The following infrastructure projects were unblocked, fast-tracked or facilitated: Durban container terminal – deepening, lengthening and widening of berth / harbour 203 – 205 in Pier 2 (EIA) Swaziland rail link – Davel to Nerston section - proposed upgrade and construction (EIA) Manganese export facility - infrastructure associated in the Coega Industrial IDZ in the Port of Ngqura (EIA) Ngwedi Substation – Northern grid loop construction of a 57 kms new 400kv transmission line, capacity expansion (WULA) 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Implementation of Cabinet and PICC strategic decisions on infrastructure (including policy, funding, users, development impact or capacity-development areas) 1 3 2 Work completed in Q3: Mokolo Crocodile Water Augmentation Project Phase 2 (MCWAP2) Conditional National Treasury approval for the increase in the pipeline was obtained. 2. Olifants River Water Resource Development Programme (ORWRDP Phase 2). The directive for ORWRDP Phase 2D and other subsequent phases has been issued to the National Water Resource Infrastructure to implement the project and the Trans-Caledon Tunnel Authority (TCTA ) to provide technical support. 3. Cable and Metal Theft, PICC recommendations on cable and metal theft were approved by the PICC Council at its 11th December 2014 meeting. 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Provide a secretariat and coordination function for PICC (Council, Secretariat, Manco and Coordinators meetings) 5 14 6 9 Work completed in Q3: The following meetings were held in the quarter:- 1 x PICC council meeting (11th Dec 2014) 4 x PICC Manco (2nd, 22nd Oct 2014 and 7th, 20th Nov 2014) 7 x PICC secretariat meetings (1st, 23rd, 30th Oct 2014; 6th, 13th Nov 2014, and 3rd, 11th Dec 2014) 2 x SIPS coordinators forums (31st Oct 2014 and 28th Nov 2014) Work completed in Q4: 1. 6 x PICC Secretariat meetings (13 & 27 Jan; 19 Feb; 5, 12, 26 Mar) 2. 3 x PICC Manco meetings (16 Jan; 4 & 24 Mar)

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Facilitate, fast track and/or unblock investment initiatives 2 3 1 Work completed in Q3: Facilitated loan payment by sefa to BTT Construction after resolving issues related to the terms and conditions of the loan. Fast-tracked the competition process for the buy-out by Lewis Furniture of 63 Beares Furnishers (the Lewis offer to purchase was time bound). The intervention avoided the liquidation of these stores and resulted in the saving of 352 jobs, with the potential for the creation of 93 additional jobs EDD’s intervention facilitated the decision by the Ekurhuleni Metro Municipality to provide the required energy for the construction of a R350 million plant by Mpact to recycle plastic bottles. Work completed in Q4: Pulp United Company – Resolved a dispute between the IDC and the uMhlathuze municipality on the price for the purchase of municipal land. This resulted in the IDC taking a decision to do a feasibility study for an investment in a pulp factory valued at US$250 million.

Performance on KPI 10 Work completed in Q4
Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Improve the efficiencies of DFIs and ensure world-class institutions through strategic guidance and Departmental work 1 2 Work completed in Q4 1. Various engagements with the IDC Appointment of the Board of the IDC after considering the skills mix required, identifying suitable candidates and consulted with Cabinet on the appointments Minister engaged IDC on its Corporate Plan as a follow up to the engagement held in Q2. Follow up report to measure improvements in turnaround times for loans by IDC and sefa.

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Measure and expand the level of industrial funding available across government and DFIs 1 Work completed in Q4: EDD compiled a report on Industrial funding for the 4th Quarter which reflected the following key findings: The IDC Funding during the Quarter was Value of funds disbursed: R2,3 billion Value of funds approved: R3,8 billion sefa funding during the Quarter was Value of funds disbursed: R111 million Value of funds approved: R147 million 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Monitor and facilitate the improvement of the jobs impact of industrial funding, administered through DFIs and/or government department 2 Work completed in Q4: Report on impact on jobs by the dti industrial funding, specifically related to the 12i tax allowance incentive. Engagements by the Minister with the IDC to address the impact of industrial funding on key national development goals. (This work was done throughout the year and concluded for the financial year during Q4.) 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Measure and facilitate the improvement of the achievement of developmental goals through industrial funding (including women, youth, small business, black industrialists, township enterprises, rural development 1 2 Work completed in Q3: Baseline report for funding for development categories, was completed covering the IDC, sefa and the dti’s Incentive Scheme Funding Initiatives / Programmes Report on funding improvement for Rural enterprises. Work completed in Q4: A review of funding to youth by the IDC and sefa were as follows: IDC approvals 2013/14: Grow E-youth and other schemes - R105.2m sefa youth funding - R157.4m

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Strengthen administrative efficiency of trade and competition authorities and ensure world-class institutions through strategic guidance and Departmental work 1 Work completed in Q3: Engagements with legal advisors on a legal challenge against the scrap metal export price preference by a scrap metal dealer as part of the work that commenced in Q2. Work completed in Q4: EDD reviewed and amended the APP and Strategic Plans for ITAC and Competition Authorities to provide guidance and strategic oversight.

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual KPI 15: Evaluate and strengthen the jobs, inclusive growth and developmental impact of economic regulators 1 2 Work completed in Q3: (a) EDD finalised the study on Competition Authorities’ impact. Key findings include an increase in the number of mergers and referrals to the Tribunal from 106 between 2004 – 2008 to 186 between ; the amended corporate leniency policy led to an increase in the number of cartels being uncovered; the size of administrative penalties levied increased from R579 million between – 2008 to R4.2 billion between 2009 – 2013. (b) The bulletin identifying progress made by the Competition Authorities and ITAC in Quarter 2 was reported on in Quarter 3. Highlights include the Competition Authorities imposition of penalties of R36 million; and the removal of exclusive clauses in lease agreements between Irene Mall and Pick and Pay that is preventing small business from renting space in malls; the conclusion of the anti-dumping investigation on frozen chips and imposing anti-dumping duties to protect against unfair trade.

In 2011, EDD had engaged the Competition Authorities in relation to public interest issues and the Kansai acquisition of Plascon Paints (Freeworld). In November 2014, it was reported that there were no merger-related retrenchments for 3 years; that Kansai had continued to manufacture all of its proprietary coatings using Freeworld technology locally as required by the conditions set by the Competition Authorities; and that it had maintained its decorative and automotive coating operations in SA.

EDD finalised the study on Competition Authorities’ impact on the 3rd quarter performance in the 4th quarter. Key findings include an increase in the number of mergers and referrals by 20% compared to the pervious quarter. The Commission fast- tracked the sale of 63 Beares stores to Lewis to prevent liquidation; the Competition Tribunal imposed fines of R140 million and heard 70 cases. ITAC finalised 7 amendment applications – 2 for custom duty reduction, 2 for increases and 3 for rebate of duty applications. These cover sectors ranging from helical springs for beds, wire products, fine paper and chemicals. The Minister had engagements with a number of stakeholders on a range of competition issues including Telkom, the Private Health Care enquiry, cartels and the competition authorities’ impact on the economy. EDD compiled a report on the public interest clauses in mergers and acquisitions. Findings showed that in 2012 conditions imposed addressed potential job loss and in the conditions addressed the ability of small and medium size enterprises to compete in relevant markets as well as job loss concerns.

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Reduce red-tape and unnecessary restrictions on enterprises and/or improve impact assessment of government/ regulatory measures 1 Work completed in Q4: 1. The signing of an MOU between EDD, DPME and the Nelson Mandela Bay Metro for the Red tape reduction plan on selected city by-laws and approval processes had been agreed to in principle. The Metro also approved the inclusion of SIAS (on which EDD staff provide training for various government institutions) in the City’s Policy Development Framework. This should assist in reducing red tape and promote the ability of the Metro to identify growth opportunities for enterprises. 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Build regulatory capacity and effectiveness across the state, including through improved training of regulators and where necessary, consolidating regulatory institutions and administration/ amendment of legislation 1 Work completed in Q4: 1. In partnership with the University of Johannesburg, a regulatory entities capacity building programme was developed and training provided. A range of entities attended the training including ICASA, the Competition Commission, Nersa, National Treasury, the Ports Regulator, the Department of Energy. The training addressed areas including economics, finance and law for regulators. The close out report was finalised during the 2014/15 financial year. 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Support local procurement of goods and services and/or implementation of the Procurement Accord 1 2 Work completed in Q4: 1. Hall Longmore, a steel pipe company in KZN, complained that Greytown water treatment works was in the process of procuring steel pipes from a Chinese Company. EDD held discussions with ArcelorMittal South Africa (AMSA) who provided raw steel at a discounted price to Hall Longmore. In order to provide a competitive pricing, Hall Longmore also reduced their profit margins. 2. Subsequent to the successful sales of Lodox Machines to the Gauteng Provincial Department of Health, EDD assisted Lodox in finding markets in the other Provinces. EDD introduced Lodox to the KZN Department of Health. Four Lodox Scanners were sold to the Provincial Department of Health in KZN. This initiative has leveraged South African medical technology developed through the commercialisation of an IDC project. 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Support the development of the green economy and green jobs and/or implementation of the Green Economy Accord 1 Work completed in Q4: 1. EDD completed its Draft Annual Report on the Progress towards the Implementation of the Green Economy Accord. The report showed significant progress in the achievement of government targets on the Green Economy Accord. These included: By March 2015 the IDC had provided funding to the Green Energy Sector of R17.6 bn, facilitating the creation of an additional jobs A total of Solar Water Geysers had been rolled out since the start of the DoE SWH programme– the majority of which were low pressure systems Designation of SWG of 70% local content was done in August 2014 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Enhance skills development and/or implementation of the National Skills Accord 1 Work completed in Q3: In Q1 EDD had compiled an English version of a user friendly guide to produce indigenous chickens for small scale farming. In Q3 (October 2014), the Zulu version of the indigenous toolkit/guide was published. Work completed in Q4: 1. EDD and DHET completed a SIP Skills booklet to inform education and training planners of the occupations in demand for SIPS. The report outlines scare skills for SIPS and the steps that need to be taken if the projected scarcities are to be addressed. 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual Enhance youth empowerment (employment, skills or entrepreneurship) and/or implementation of the Youth Employment Accord 1 Work completed in Q4: EDD presented at the Youth Entrepreneurship workshop hosted by the DSBD in the Free State. It informed the province on: The work being done on the national skills accord, the youth employment accord, the green economy accord, and the local procurement accord; Requested provinces to report on progress on a quarterly basis; Provided a framework for provinces to report; How to improve reporting on enterprise development from the Provinces. 2018/11/12

Key Performance Indicator Q3 Target Q3 Actual Q4 Target Q4 Actual National, sector and workplace economic development partnerships facilitated with social partners, covering commitments to work together on economic goals, improve social equity and productivity, reduce workplace conflict, and/or promote greater innovation/ entrepreneurship 1 2 3 Work completed in Q3: EDD coordinates and participates in the Presidential Business Work group: Infrastructure Technical Task Team. The work covers the following. a) Create early visibility of government’s infrastructure build programme b) Maintaining & upgrading municipal infrastructure c) Strengthen mechanisms of incorporating and effective execution of developmental targets in programme and project procurement designs Strengthen / optimise infrastructure procurement systems Unlock private sector investment in and funding of infrastructure projects 2018/11/12

Performance on KPI 22 Work completed in Q3: - cont.
f) Improve impact of labour relations on implementation of infrastructure investment g) Strengthen capacity-building programmes & initiatives within business & public sector. 2018/11/12

Concluded Partnership Agreements with the Following Partners: 1. TUGO Builds Pty(Ltd) – A construction toy company which had been granted funds from the Support Programme for Industrial Innovation. EDD signed an MOU with the stakeholders to support social dialogue activities to promote economic development, innovation, equity and reduce workplace conflict. 2. Conver–Tek Pty (Ltd) – EDD signed an MOU with the polymer company to assist in establishing a forum for regular engagement. 3. Elungileyo Solutions Pty (Ltd) – The company is a Structural and Thermal Construction Company. EDD signed an MOU with the company to promote social dialogue activities to promote economic development, innovation and reduce workplace conflict. 2018/11/12

Programme 1: Administration
There are no indicators set in the APP for the administration programme. EDD Manco meets regularly and receives reports on financial expenditure, HR management, ICT implementation, Communication strategy, risk management, Internal Audit findings, security management, and the Audit Heat map process.

EDD FINANCIALS 3rd & 4th Quarter 2014/15 2018/11/12

Summary of Q3 Financial Performance
The Department spent R , made up in R in transfers and R in direct departmental expenditure This is 95% of the quarterly allocation of R The following tables reflect the expenditure against the budget per programme and per economic classification

Q3 Financial Performance per Programme
Programmes Q3 Projected Budget Actual Expenditure Variance % Spent R’000 % Administration 17 998 19 218 (1 220) 106% Economic Policy Development 5 822 3 066 2 756 53% Economic Planning and Coordination- baseline 10 906 4 969 5 937 54% Economic Planning and Coordination - transfers 100% Socio Economic Development and Social Dialogue 4 132 2 514 1 618 61% Total excluding Transfers 38 858 29 767 9 091 77% Total including Transfers 95% 2018/11/12

Q3 Financial Performance per Econ Classification
Expenditure per Economic Classification Q3 Projected Budget Actual Expenditure Variance % Spent R’000 % Compensation of Employees 26 918 20 043 6 875 74% Goods and Services 11 047 8 116 2 931 73% Transfers and Subsidies 100% Households 93 Payment of Capital Goods 800 1 515 (715) 189% Total expenditure 9 091 95%

Q3 Financial Performance: Reasons for Variances
Compensation of employees: Core vacant posts are being filled in line with the re-aligned Strategic Objectives and APP. Goods and services: Accruals (services rendered but not yet invoiced as at 31 December 2014), office accommodation; travel & accommodation, advanced payment for communications still to be accounted for. Capital assets: Reclassification of finance leases (photocopiers & cell phone contracts) for which expenditure was planned for under goods. Hence, the negative variance. Funds shifted during adjusted estimate.

Summary of Q4 Financial Performance
The Department spent R , made up of transfers of R to entities and R spend directly by the Department This is 120% of the quarterly allocation of R The following tables reflect the expenditure against the budget per programme and per economic classification

Q4 Financial Performance per Programme
Programmes Q4 Projected Budget Actual Expenditure Variance % Spent R’000 % Administration 21 142 33 155 157% Economic Policy Development 6 582 4 063 2 519 62% Economic Planning and Coordination 118% Socio Economic Development and Social Dialogue 3 557 2 140 1 417 60% Total including Transfers 120% Total excluding Transfers 42 409 34 842 7 567 82% 2018/11/12

Q4 Financial Performance per Econ Classification
Expenditure per Economic Classification Q4 Projected Budget Actual Expenditure Variance % Spent R’000 % Compensation of Employees 26 990 19 985 7 005 74% Goods and Services 14 707 14 935 -228 102% Departmental Agencies and Accounts 132% Payment of Capital Goods 712 -78 790 -11% Total including Transfers 120% Total excluding Transfers 42 409 34 842 7 567 82%

Q4 Financial Performance: Reasons for Variances
Compensation of Employees – spending in line with planned spending as aligned during AENE process. Goods and Services – Although the there is a negative variance for the quarter, the overall expenditure for the year is in line with the budget Transfers and Subsidies – spending is in line with the planned spending as per the payment schedule including the approved additional transfers to Entities for accommodation needs and sefa’s ESCP. Payments of Capital Assets – reclassification of finance leases from capital expenditure to goods and services as per OAG standards.

THANK YOU SIYABONGA REA LEBOHA!

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