1. Presentation to the Portfolio Committee on Trade and Industry – the dti’s 2011/12 Third Quarter Report Date : 15 February 2012

2. 2 Presentation Outline  Strategic Objectives  Key Achievements  Departmental expenditure versus budget  Key challenges 2

3. Strategic Objectives 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 3

4. 44 Key Achievements

5. 5 SO1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  Designation of 5 sectors and promulgation of the amended PPPFA Regulations (Buses, Canned Vegetables, Textile and Clothing, Leather and Footwear, Power Pylons and Rail Rolling Stock)  Passenger Railway Agency of South Africa (PRASA) agreement on 40% local content for rail signaling in Western Cape & Durban  84 projects supported through the Automotive Incentive Scheme (AIS) with the value of investment leveraged being R4,4 billion  The Energy Efficient Building Regulations launched by the Minister in October 2011  Obtained Cabinet approval for the Action Plan on iron ore and steel value chain and endorsement of an interdepartmental task team report on iron ore and steel  Launched the South African Renewable Initiative (SARi) and the CleanTech Awards. Industrial Development – Industrial Policy 5

6. 6 Key Achievements SO1: Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation  Draft Solar and Wind Energy industrial strategy was finalized. Final strategy will be launched in the 2012/13 financial year  Launched the Industrial Energy Efficiency Programme in November 2011  The Special Economic Zones Policy and Bill presented to Parliament  53 Film and TV productions supported with the value of investment leveraged being R1,5 billion  The Manufacturing Competitiveness Enhancement Programme (MCEP) being finalised with the National Treasury  The CTCIP has approved R112 million for 105 enterprises resulting in big retailers significantly moving from imported goods to locally manufactured garments and footwear Industrial Development – Industrial Policy 6

7. 7 Overview of Industrial Development Incentives Description Actual Number of firms/projects supported Investment leveraged AIS84R4,4 billion BPS19 projectsR3,6 billion Film & Television53 Film productionsR1,5 billion 12 I10 projectsR11 billion

8. Trade, Investment & Exports SO2: Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objective  Supported 808 companies through EMIA  Investment Pipeline of potential investment projects of R 34,4 billion e.g. Nestle and Unilever  39 trade missions and 18 National Pavilions undertaken  Facilitated business delegations and fora to emerging markets, e.g. Mozambique, Benin, Cameroon, Turkey and UAE and Oman  Facilitated SA Exports in Beijing and Shanghai – more than 70 companies participated 8

9. Trade, Investment & Exports SO2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development objective  Submitted a revised list to China on value added exports to and investment from China  Terms of Reference (TOR) for drafting of Investment Act finalised and approved  High level in-principle paper on Regional Industrial Development Policy finalised with regards to the SACU 5 point plan.  Organised and participated in the Angola-South Africa Spatial Development Initiative meeting in Angola in conjunction with South African Development Finance Institutions participated.  Participated in the 8 th WTO Ministerial Conference in Geneva. 9

10. Broadening Participation SO3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth  Final SMME Review Report completed and presented at SMME Summit  Co-operatives Amendment Bill submitted to Cabinet & Business Case to National Treasury (NT)  Facilitated the establishment of 79 new small scale Co-operatives  B-BBEE Amendment Act approved by Cabinet and issued for public comment  Reviewed Codes of Good Practice and ready to be gazetted pending Presidential Council endorsement 10

11. Broadening Participation SO3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth  Feasibility study for the proposed Saldahna IDZ completed and out for public comment  198 Cooperatives supported through Cooperative Incentives Scheme  112 Enterprises supported through the BBSDP  401 SMMEs supported through EIP and investment leveraged to the value of R7,7 billion 11

12. Regulation SO4: Create a fair regulatory environment that enables investment, trade & enterprise development in an equitable & socially responsible manner  Launched the National Consumer Commission in terms of the Consumer Protection Act, 2008  Established new institutions in terms of the Companies Act, 2008, such as the Companies and Intellectual Property Commission (CIPC), Companies Tribunal, and the Financial Reporting Standards Council (FRSC) as well as the Takeover Regulation Panel  IP Amendment Bill for Protection of Traditional Knowledge adopted by National Assembly 12

13. Regulation SO4: Create a fair regulatory environment that enables investment, trade & enterprise development in an equitable & socially responsible manner  dti/Contralesa launched the MoA to formalise relations  Draft Regulatory Impact Assessment (RIA) reports produced on the National Credit Act, the Liquor Act & the National Lotteries Act  Estate Agency Affairs Policy Framework & Bill drafted for approval  National Lotteries Policy Framework and Bill drafted for approval 13

14. Administration & Co-ordination SO5: Promote a professional, ethical, dynamic, competitive & customer-focused working environment that ensures effective & efficient service delivery  Vacancy rate as at 31 March 2011 was 16.9%. Reduced to 11.2% as at 31 December 2011.  Achieved targets of 42.18% of women in SMS and 2.17% of persons with disabilities.  92% of all creditors payments made within 10 days, 8% of all creditors payments made within 14 days  ICT Infrastructure being upgraded to enable web-based application and claims process, e.g. EIP and BBSDP.  Policy Framework on Governance endorsed by the dti to improve oversight of Public Entities.  Various interventions put in place to deal with challenges that are experienced by the entities under the dti 14

15. 15 Departmental expenditure versus budget

16. Expenditure as at 31 December 2011  Year to date (YTD) expenditure of the department is 98,22% of the YTD budget  Only 23,05% of the annual allocation is available for the last quarter of the year  Expenditure for the same period in the last financial year was R3,8 billion compared to R5,3 billion in the current financial year  Projected expenditure at financial year is not expected to be less that 98% of the allocated budget 16

17. Budget vs. expenditure for the 2011/12 financial year – per programme 17 Programme (R’000) *Adjusted Budget 2011/12 R’000 Year-to-date (YTD) Available budget R’000 % Budget available YTD Budget R’000 YTD Expenditure R’000 Variance (Budget less expenditure) R’000 % Variance R’000 Administration583,646379,739369,7539,9862.63%213,89336.65% International Trade & Economic Development144,80595,55589,8645,6915.96%54,94137.94% Empowerment and Enterprise Development867,772723,453712,57010,8831.50%155,20217.89% Industrial Development1,312,7291,178,3751,169,0479,3280.79%143,68210.95% Consumer & Corporate Regulation229,671206,558180,13526,42312.79%49,53621.57% The Enterprise Organization3,320,8622,537,4732,500,94736,5261.44%819,91524.69% Trade & Investment SA345,147213,625213,641-16-0.01%131,50638.10% Communication and Marketing71,88152,34955,210-2,861-5.46%16,67123.19% Total6,876,5135,387,1275,291,16695,9611.78%1,585,34723.05%

18. Graphical presentation on YTD projection vs. expenditure 18 Figures expressed in R’000

19. Year-on-year comparison 19 Figures expressed in R’000

20. Key challenges  High administrative prices especially electricity and port charges  Lack of rail and port infrastructure affecting investment and exports  The protracted slowdown in the global economy which has a negative impact on domestic economy  Business support for the informal sector and township enterprises  Strengthening corporate governance of some agencies  Slow SITA procurement processes 20

21. 21 Thank you