the dti Medium-Term Strategic Framework

1. the dtiMedium-Term Strategic Framework Presentation to Portfolio Committee Date : 19 March 2010 1

2. CONTENTS • Overview of the Economic Context • Key Achievements for 2009/10 • Overview of the MTSF – key interventions • Industrial Development • Trade, Investment & Exports • Broadening Participation • Regulation • Administration & coordination • Financial Information • Challenges

3. OVERVIEW OF THE ECONOMIC CONTEXT • Based on emerging data, the economic outlook has improved compared to 2008 when the credit crunch became a real economy crisis • The domestic economy began to show some signs of recovery during the last two quarters of 2009 with: • GDP growth rate of 0.9% in Q3 and 3.2% by Q4 which was higher than expected • Employment increasing by 89 000 during the last quarter of 2009 • Company liquidation decreased by 23% in Jan 2010 compared to Jan 2009

4. OVERVIEW OF THE ECONOMIC CONTEXT • The recovery is only just beginning, risks remain and sustained government interventions and support is required, in partnership with social partners • Need to build on The Framework Response to the International Economic Crisis and carve a new growth path for the economy • Industrial Policy and IPAP2 in particular will be a critical pillar of government’s strategy for economic growth and the creation of decent work

5. Key highlights for 2009/10

6. KEY HIGHLIGHTS – INDUSTRIAL DEVELOPMENT • Upscaled industrial policy – launched IPAP ii • Developed implementation guidelines for the APDP • Developed new support package for the Clothing and Textiles sector • Completed consultation process on modernising South Africa’s Technical Infrastructure Strategy (SQAM) • Continued to roll-out new incentive schemes, e.g. EIP, BPO and Film

7. KEY HIGHLIGHTS- TRADE, INVESTMENT & EXPORTS • Finalised Trade Policy and Strategy Review document • A range of bilateral engagements were undertaken including Investment Protection Treaty with Zimbabwe, SDI’s (Spatial Development Initiatives) with Namibia & Angola, & MoU’s with Zambia & Senegal • Focused on consolidating SADC FTA, extending it to services sector, whilst developing approach to advance the SADC-EAC-COMESA trilateral trade arrangement • Developed common approach with SACU on trade links with the South, e.g. Mercosur, India, China and also US • Continued to engage in the SADC-EU EPA process

8. KEY HIGHLIGHTS- TRADE, INVESTMENT & EXPORTS • Continued to engage in the WTO Doha Round to secure developmental outcome • Undertaken various trade and investment promotion activities e.g. SA business delegations to Angola (120), Zambia (80), Brazil (60), Nigeria (50) and the UK (210) in support of State visits • Facilitated key investments e.g. Ford, BMW

9. KEY HIGHLIGHTS – BROADENING PARTICIPATION • Enterprise Development • Work undertaken on a business case for KhulaDirect Lending model • Seda stabilised and now delivering services, including launch of the call centre for SMME payments • Finalised strategy to strengthen cooperatives development initiatives • Review of women enterprise development programmes • BBBEE • Gazetting of sector charters • Launch of Advisory Council

10. KEY HIGHLIGHTS – REGULATION • Implementation of Acts passed in 2008/09 • Companies, Competition and Consumer Protection via regulation, new public entities and awareness campaigns • New Law Reform and Policy Initiatives • Estate Agents • National Lottery • Gambling and Liquor • Intellectual Property (IP)

11. KEY HIGHLIGHTS – ADMINISTRATION & COORDINATION • Recruitment strategy to fill senior managerial posts • Initiatives to review post-graduate programmes and Cadet programme • Project initiated to upgrade IT Infrastructure • Conducted training and awareness campaigns on fraud & corruption prevention

12. Overview of the dti’s strategyKey interventions over the MTSF period

13. INDUSTRIAL DEVELOPMENT • Ongoing upscaling of industrial policy through the development and implementation of an annual three year rolling Industrial Policy Action Plan (IPAP) which includes: • Development and implementation of policies, strategies and programmes for manufacturing and related sectors of the economy, to contribute to direct and indirect creation of decent jobs, value-addition, and competitiveness in both domestic and export markets • Strengthening the conditionalities and impact associated with on-budget incentives and improve the impact of incentive programmes, by implementing a monitoring and evaluation system

14. INDUSTRIAL DEVELOPMENT • Leveraging of economic benefits and development support of South African industries through government procurement • Strengthening market standards to support Industrial Development particularly with respect to dealing with unsafe and poor quality imports and promoting access to high value export markets • Responding to the commercial imperatives of climate change and environmental concerns and opportunities through the promotion of “Green Industries” and resource-efficiency

15. INDUSTRIAL DEVELOPMENT • Promoting co-ordination between the different spheres of government and other state institutions, by developing a new institutional and governance framework which is critical for the success of the industrial development zone programme

16. TRADE, INVESTMENT AND EXPORTS • Robust & focused bilateral engagements with key Africa economies to grow intra-African trade and investment, infrastructure development (including through Spatial Development Initiatives - SDIs) and technical cooperation • Continue regional integration efforts focusing on possible transformation of SACU, other arrangements and build on SADC, including pursuing Trilateral SADC-EAC-COMESA FTA 16

17. TRADE, INVESTMENT AND EXPORTS Identify complementarities in trade and investment relations with key countries of the South (Brazil, India, China) to support national industrial development and consolidate trade and investment relations with key countries in the North, including the US, the EU and Japan. Pursue developmental outcome in Doha negotiations and begin to identify trade aspects in climate change negotiations. Finalise trade and investment policy reviews, submit Zimbabwe-SA investment treaty and SACU-Mercosur trade agreement to Parliament for ratification 17

18. TRADE, INVESTMENT AND EXPORTS • Increase exports by fully implementing the dti’s export strategy by 2011 • Promote South African products in targeted high growth markets • The investment promotion activities will focus on the IPAP priority sectors

19. BROADENING PARTICIPATION • BBBEE • Policy refinement and amendment of legislation to address identified gaps • Finalise alignment of PPPFA to BBBEE Codes of Good Practice • Increase BEE verification capacity and refinement of the accreditation process • Support the work programme of BEE Advisory Council to advise on the key interventions and to monitor implementation of the policy

20. BROADENING PARTICIPATION • Cooperatives • Enhance the legislative and policy instruments aimed at promoting Cooperatives • Develop legal framework and administrative capacity for the proposed 3 institutions of Co-ops development • Improve the delivery of support

21. BROADENING PARTICIPATION • SMMEs • Ensure Seda improves service delivery to SMMEs and Cooperatives • Facilitating access to procurement opportunities for SMMEs & Co-ops through the targeted 10 products project • Implement strengthened youth and women enterprise development programmes

22. REGULATION • Maintain effective regulatory oversight on key markets and sectors • Finalise implementing regulations in respect of recently passed Acts and establish relevant new institutions, e.g Companies and Consumer Commissions • Complete implementation of New Law Reform and Policy Initiatives • Estate Agents • National Lottery • Gambling (e.g. Gambling Review Commission) • Liquor • Intellectual Property (IP) 22

23. REGULATION • Improve efficiencies and turnaround times in regards to services delivered by agencies: • National Lotteries Board • CIPRO/new Commission • National Credit Regulator • Consumer Tribunal • Estate Agency Affairs Board • National Liquor Authority • Increase awareness and educate stakeholders, consumers and the public 23

24. ADMINISTRATION AND COORDINATION • Implement Service Delivery Plan • Leverage ICT as a strategic resource • Strengthen management of Human Resources and skills • Align recruitment strategy with dti priorities • Implement Disability Management Strategy • Implement of revised Fraud Prevention Plan

25. ADMINISTRATION AND COORDINATION • Revamp dti’s website • Regular media engagements • Targeted campaigns • Review outreach channels • Consolidate and enhance customer contact points

26. Allocated resources

27. MTEF BUDGET

28. FIVE YEAR COMPARISON OF BUDGET VS EXPENDITURE 28

29. CHALLENGES • Impact of global recession • Transition to reorganised departments and enhanced M & E • Capacity Constraints: • Functional & technical skills, experience & limited skills pool • ICT services: • Antiquated infrastructure, inadequate governance & Skills • Empowerment of Women & People With Disabilities • Coordination amongst and between the three tiers of government

30. QUESTIONS ?