Presentation to the Select Committee

on Trade and International Relations

the dti’s 2013/14-2015/2016 Annual Performance Plan

Date: 08 May 2013

Director-General
Lionel October

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 CONTENTS

the dti’s Vision, Mission and Strategic Goals

Key achievements 2012/13

Key interventions for 2013/14

Allocated resources

Challenges

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 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”

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 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.

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 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.

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KEY ACHIEVEMENTS 2012/13: IPAP

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 Industrial Development
Achievements on IPAP 2 (cont…)

• 4 sectors have been designated for local production.

Key Achievements
• National Industrial Participation Programme (NIPP) - Adopted by Cabinet and
fully aligned with the Competitive Supplier Development Programme (CSDP)

• The 12I Tax Incentive has supported large manufacturing investments worth
R6.8 bn, with 1,115 jobs expected to be created

• Manufacturing Competitiveness Enhancement Programme (MCEP) - Launched

in May 2012; 189 applications have been approved for grants valued at R4,2bn

• R5.5 bn committed for investment in the Green Economy

• Localisation in the renewable energy generation programme

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 Industrial Development
Achievements on IPAP 2 …cont

• Finalisation of the transition from the Motor Industry Development Programme

(MIDP) to the Automotive Production and Development Programme (APDP)

•
Key Achievements
People-Carrier Automotive Incentive Scheme (P-AIS) launched

• Clothing and Textiles Competitiveness Programme (CTCP) has stabilised

sectoral production and employment – supporting 49,888 jobs

• Aquaculture Development and Enhancement Programme (ADEP), an incentive

scheme to increase investments in the sector, enhancing competitiveness and
growing employment

• Review of port tariffs for manufactured exports

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

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 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.

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 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 1 350 students and

700 researchers via the Technology and Human Resources for Industry
(THRIP).

Support Programme for Industrial Innovation (SPII) implemented by

creating 20 new projects valued at R43m

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 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 2013-2016. It should read 220.
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 Industrial Development Incentives
Planned 2013/14
Description Number of firms/projects Potential jobs supported Investment
supported leveraged

Industrial Financing
Automotive Incentive Scheme 25 550 R1,6bn
(AIS)
Passenger Automotive 5 - R500m
Incentive Scheme (PAIS)
Business Process Services 8 3000 R400m
(BPS)
Film and Television 65 3000 R1,8bn
12 I tax allowance 10 2 200 R10bn
Critical Infrastructure 12 4 000 R6bn
Programme (CIP)
Manufacturing Competitiveness 300 2 500 -
Enhancement Programme
(MCEP): Production Incentive

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 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.

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 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

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 Provincial Spread: Manufacturing Incentives – past
performance 2012/13
Gauteng: Limpopo:
12I: 4 12I: 0
Provincial Spread
AIS: 7 AIS: 0
North West: CIP: 0 CIP: 0
12I: 1
AIS: 1
CIP: 2

Mpumalanga:
12I: 0
AIS: 0
Northern Cape:
12I: 0 CIP:2
AIS: 0
CIP 0

Kwa Zulu Natal:

12I: 3
AIS: 8
CIP 0

Free State:
Western Cape: 12I: 1
12I: 1 AIS: 0
AIS: 1 CIP 0
CIP:1

Eastern Cape:
12I: 2
AIS: 12
CIP: 1
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 Provincial Spread: Services Incentives – past
performance 2012/13
Gauteng: Limpopo:
BPS: 4 BPS: 0
Provincial Spread
Film: 46 Film: 0
North West:
BPS: 0
Film: 0

Mpumalanga:
BPS: 0
Film: 0
Northern Cape:
BPS: 0
Film: 0

Kwa Zulu Natal:

BPS: 5
Film: 2

Free State:
Western Cape: BPS: 0
BPS: 3 Film: 0
Film: 22

Eastern Cape:
BPS: 0
Film: 0
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 Provincial Spread: Competitiveness Incentives – past
performance 2012/13
Gauteng: Limpopo:
MCEP: 69 MCEP: 4
Provincial Spread
EMIA: 626 EMIA: 17
North West:
MCEP: 1
EMIA: 35

Mpumalanga:
MCEP: 4
EMIA: 47
Northern Cape:
MCEP: 1
EMIA: 4

Kwa Zulu Natal:

MCEP: 31
EMIA: 107

Free State:
Western Cape: MCEP: 2
MCEP: 61 EMIA: 19
EMIA: 167

Eastern Cape:
MCEP: 16
EMIA: 62
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 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 with phased-in implementation.

 Approval of business case for the establishment of the Co-operative

Tribunal with phased-in implementation .

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 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

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 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)

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 Provincial Spread: Broadening Participation
Incentives – past performance 2012/13
Gauteng: Limpopo:
BBSDP: 429 BBSDP: 196
Provincial Spread
CIS: 63 CIS: 63
North West: EIP: 217 EIP: 35
BBSDP: 34 ISP: 5 ISP: 0
CIS: 19
EIP: 16
ISP: R 0
Mpumalanga:
BBSDP:84
CIS: 18
Northern Cape:
BBSDP: 7 EIP: 30
CIS: 6 ISP: 0
EIP: 15
ISP: R 0
Kwa Zulu Natal:
BBSDP: 185
CIS: 23
EIP: 111
ISP: 4

Free State:
Western Cape: BBSDP: 30
BBSDP: 71 CIS: 28
CIS: 15 EIP: 22
EIP: 135 ISP: 1
ISP: 0
Eastern Cape:
BBSDP: 114
CIS: 79
EIP: 76
ISP: 4
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 Broadening Participation Incentives
Planned 2013/14

Description Number of firms/projects Potential jobs supported Investment

supported leveraged

Enterprise Incentive 235 4 200 R3,5bn

Programme (EIP):
Manufacturing Incentive
Programme (MIP)
Aquaculture Development 10 220 R75m
Enhancement Programme
(ADEP) - (New Incentive)
Cooperative Incentive Scheme 375 - -
(CIS)

Incubator Support Programme 50 540 R800m

(ISP) (New Incentive)

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 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.

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 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 2012-2015 Service Delivery Improvement Plan
(SDIP).

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 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

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 “taking the dti to the people” –planned
campaigns
Gauteng: 7
2013/14
Limpopo: 7
North West: 2

Provincial Spread

Mpumalanga: 6

Northern Cape: 3
Kwa-Zulu Natal: 5

Free State: 3

Western Cape: 2

Eastern Cape: 5

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ALLOCATED BUDGET

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 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 138,1 R 150,7 156,9

Development
Broadening Participation 968,3 1 004,0 1 054,9

Industrial Development: Policy 1 606,5 1 771,3 2 049,8

Development
Consumer and Corporate 256,2 248,2 258,3
Regulation
Industrial Development: Incentive 5 543,1 5 645,7 6 704,1
Administration
Trade and Investment South Africa 369,7 417,4 432,4

TOTAL FOR PROGRAMMES 9 572,6 9 958,0 11 404,7

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 Alignment of the Budget to the Strategic Goals
Strategic Goal Alignment with Govt Outcomes Budget Allocation
per Strategic Goal
R’000
1. Facilitate transformation of the economy to Decent employment through 6 982 181
promote industrial development, investment, inclusive growth
competitiveness and employment creation.
2. Build mutually beneficial regional and global Create a better South Africa, a 508 379
relations to advance South Africa’s trade, better Africa and a better world
industrial policy and economic development
objectives.

3. Facilitate broad-based economic participation Decent employment through 1 135 784

through targeted interventions to achieve more inclusive growth
inclusive growth.
4. Create a fair regulatory environment that Decent employment through 256 157
enables investment, trade and enterprise inclusive growth
development in an equitable and socially
responsible manner.

5. Promote a professional, ethical, dynamic, An efficient, effective and 690 079

competitive and customer-focused working development- oriented public
environment that ensures effective and efficient service and an empowered, fair
service delivery. and inclusive citizenship

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 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.

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THANK YOU

QUESTIONS ?

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