Annual Performance Plan 01 April 2013 – 31 March 2014

1. Annual Performance Plan01 April 2013 – 31 March 2014 26 March 2013 Commissioner Shan Ramburuth

2. Objective of the Commission • The objective of the Commission is to promote competition in the economy in order to: • promote the efficiency, adaptability and development of the economy; • provide consumers with competitive prices and product choices; • promote employment and advance the social and economic welfare of South Africans; • expand opportunities for South African participation in world markets and recognize the role of foreign competition in South Africa; • ensure that small and medium-sized enterprises have an equitable opportunity to participate in the economy; and • promote a greater spread of ownership, in particular to increase the ownership stakes of historically disadvantaged persons.

3. Overview of the planning process of the Commission

4. 1st Generation Strategic Plan Environmental Factors and Strategic Priorities

5. Alignment with EDD’s outcome 4 (Decent employment through growth) Towards a fair and efficient economy for all

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7. Situational analysis • Legislative mandate: Promulgation of Competition Amendment Act in 2012 / 2013 • President Jacob Zuma has determined that section 6 of section of the Competition Amendment Act 1 of 2009 (2009 Amendment), will come into effect on 01 April 2013, this provides the Competition Commission (“Commission”) with formal powers to conduct market inquiries. • Stakeholder engagement • Opportunity for Commission to make input into industrial and economic policy processes; • Facilitating participation of wider stakeholders • The role of economic law and policy as a catalyst in bringing about economic transformation Increased focus on outcomes that impacts on the economy. • Adverse Court Decisions: impact on ability to initiate and investigate complaints. • Constitutional Court decisions and implications

8. Competition law and policy embedded in SA’s economic realities

9. Advocacy for pro-competitive outcomes We encourage a culture of fair competition in markets by educating, influencing, advising, informing, monitoring and supporting the Competition Commission’s stakeholders • Key functions • Policy advice to government departments & legislators • Case resolution through advocacy • Education and compliance training • External relations • International learning and dissemination of SA insights • Thought leadership on competition policy • Recent developments • Market enquiry tool for in-depth analysis of markets • Key projects 2013/14 • Stakeholder management framework for the Commission • Market Enquiries – guidelines & implementation • Government in markets (impact on competition) – analytical piece and guidelines • Public interest in mergers – beyond employment issues • ICN Cartel workshop 2013 • African Competition Forum – research & capacity building across the continent • Social media presence

10. Prioritisation optimises resources • Current priority sectors for investigation and advocacy • food and agro-processing; • infrastructure and construction; • intermediate industrial products and energy; • construction services; and • Banking • Proactive measures optimise resources • screening key value chains • initiations and investigations in as poultry, bread, wheat and milling, animal feed, steel, polymers, fertiliser, cement, concrete pipes and bricks • increase in the number of abuse of dominance investigations Future priority sectors for next planning cycle under discussion

11. The internal operating environment • New professional staff • Staff retention • Uncertainties in leadership issues • Implementation of reviewed Human Resources policies • Market inquiry into the Healthcare sectors • Internal audit findings were in the following areas and this will form part of the focus areas for 2013. • Internal audit findings were rated as medium impact. • Procurement • Supplier database • Appointment of Legal Counsel • IT Governance • Case pipeline • Performance information review • Fines process Towards a fair and efficient economy for all

12. Construction Bid Rigging • Finalising the Construction Fast Track Settlement Process • Pursuing further investigations for projects which were not declared. Towards a fair and efficient economy for all

13. Competition Amendment Act 2009 • Interpretation and Application of this Chapter 43A. • In this Chapter, ‘‘market enquiry’’ means a formal study of the general state of competition in a market for particular goods or services, without exclusive reference to the conduct or activities of any particular named firm. • Formal Inquiry • Commission’s own ‘initiative’ or request from a Minister. • Not less than 20 days publish Notice in Gazette: Terms of Reference (in timeframes) and invitation to public • Report in Gazette and to Min with/ without recommendations. • Market inquiry provisions effective 1 April 2013 • Devising and implementing market inquiry into private healthcare costs Towards a fair and efficient economy for all

14. Corporate Governance

15. THANK YOU Tel: 012 – 394 3332 Fax: 012 – 394 3332 Email: shanr@compcom.co.za Website: www.compcom.co.za