Briefing to the Portfolio Committee on Trade and Industry 14 March 2007 MTSF 2007 - 2010.

Briefing to the Portfolio Committee on Trade and Industry

14 March 2007

MTSF 2007 - 2010MTSF 2007 - 2010

Presentation covers:Presentation covers:

Part One - Context & Strategic Objectives

Part Two - 2006/07 Key Outputs

Part Three - 2007 -2010 Strategic Deliverables

Part Four - Challenges

Part Five - Resourcing the Strategy

Part Six - Economic Cluster

MTSF 2007 - 2010MTSF 2007 - 2010

CONTEXT & STRATEGIC CONTEXT & STRATEGIC OBJECTIVESOBJECTIVES

PART ONEPART ONE

MTSF 2007 - 2010MTSF 2007 - 2010

ECONOMIC CONTEXTECONOMIC CONTEXT

Step change in economy towards a higher growth path well established, with GDP growth of 5% in 2006

Key drivers have been robust consumer spending & increased fixed investment by both public & private sector

Leading growth sectors: construction (13.2%), finance & business services (7.9%), trade (6.9%), transport & communication (5.6)

Business confidence high, despite rising inflation, interest rates & import competition


Unemployment rate: 31.2 (2003), 27.9 (2004), 26.5 (2005), 25.6 (2006)

1993 - 2001 2001 - 2005 2006

GDP 2.9 4 4.9

Private consumption 3.6 5.2 7+

Fixed investment 4.7 7.2 11.8

GDE 2.7 6 8.2

Annual growth %Annual growth %

MTSF 2007 - 2010MTSF 2007 - 2010


Challenges Increased imports exerting pressure in trade

balance Unemployment still high despite improving job

creation Exports & FDI performance modest Millions still on economic margins & poverty

stricken Economy’s fortunes tied to global economic

developments (e.g oil price), although prospects positive


Policy & Strategy Responses Asgisa introduced; identifies key binding

constraints & interventions to address them dti key in Asgisa conception & dti MTSF is

informed by Asgisa aims & plays lead role in Economic Cluster’s implementation of Asgisa

Economic Cluster POA 2007-2009 to focus on:Increasing economic efficienciesPromoting dynamic sectorsIntegrated small enterprise service delivery

STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVES

Promoting co-ordinated implementation of the accelerated & shared growth initiative

Promoting direct investment & growth in the industrial & service economy, with particular focus on employment creation

Contributing towards the development & regional integration of the African Continent within the Nepad framework

Promoting broader participation, equity & redress in the economy

Raising the level of exports & promote equitable global trade

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KEY OUTPUTS – 2006/07KEY OUTPUTS – 2006/07

PART TWOPART TWO

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KEY OUTPUTS IN 2006/07KEY OUTPUTS IN 2006/07

This section will broadly cover the following areasThis section will broadly cover the following areas::

Enterprise & Industry Support & DevelopmentEnterprise & Industry Support & Development

Consumer & Corporate RegulationConsumer & Corporate Regulation

International Trade & InvestmentInternational Trade & Investment

Marketing & CommunicationMarketing & Communication

Resource ManagementResource Management

MTSF 2007 - 2010MTSF 2007 - 2010

2006/07 DELIVERABLES2006/07 DELIVERABLES

ASGI-SA identified need to develop a robust industrial policy to promote diversification, competitiveness & labour-absorption

The National Industrial Policy Framework finalized & approved by Cabinet with directive to implement immediately

Implementation being planned, focusing on priority sectors and key interventions strategies in the following key sectors in advanced stage:

• Capital Equipment, Metals, Rail• Automotives & Aerospace• Agro-processing, forestry• Clothing & Textiles• Chemicals, Plastics & Pharmaceuticals• ICT/Electro technical• BPO & Services• Cultural Industries

Finalisation of Regional Industrial Development Strategy (RIDS) to stimulate growth in slower growing provinces, towns & rural areas so as to deal with regional disparities

MTSF 2007 - 2010MTSF 2007 - 2010Enterprise & industry support & developmentEnterprise & industry support & development


National Industrial Participation created over 12 000 direct jobs

150 projects, US$7,5b investment, sales & exports, implemented since 1996 from investments made & exports generated

Launched SEDA & SAMAF provincial offices to widen reach & improve access to services

Rollout of SAMAF progressing well through network of 30 institutions country wide having 2 600 borrowers & 9 000 savers over 3 year period

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Enterprise & industry support & developmentEnterprise & industry support & development


Support for Enterprise Development Established National Small Business Advisory Council Khula loans & advances increased from R34m(2002) to

R137m (2006); three new funds launched & capitalised at R300m

Products for targeted procurement by Government Departments (set asides) have been identified and will be implemented

IDC approved investments anticipated to be in excess of R6b Co-operatives

15 co-operatives from 6 provinces (Eastern Cape, KZN, Gauteng, North West, Northern Cape & Limpopo) supported financially benefiting 205 youth & 188 women

MTSF 2007 - 2010MTSF 2007 - 2010



Support for Enterprise Development – cont. Investment Incentives

o Small Medium Enterprise Development Programme:• Since Inception 2000 to date: 11 309 approved projects with

incentive value of R 12.7 billion and R 2.3 billion has been disbursed.

• 01 April 2006 to date: 2 501 approved projects with a projected qualifying investment of R13.4 billion. The value of incentives approved is R 2.96 billion and R 598 million has been disbursed.

o Strategic Industrial Projects (SIP)• 45 projects approved with qualifying investment value of

R28,7 billion. 22 projects have established with actual investment value R10 billion

MTSF 2007 - 2010MTSF 2007 - 2010



Support for Enterprise Development – cont.o Critical Infrastructure Program (CIP)

• 19 projects approved to date with qualifying investment value of R32 billion and infrastructure investment of R9.2 billlion

The following Technology Support delivered SPII Projects worth R52m Technology & Human Resources for Industry Programme –

746 researchers, 3 178 students & 371 industry partners assisted

SANAS accredited 134 facilities Standards South Africa (STANSA), division of SABS

developed & revised 639 standards

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Support for Enterprise Development – cont. Film & TV production rebate

Since Inception 01 August 2004 : Approved 31 productions. Value of Qualifying South African Production Expenditure (QSAPE) is R1,8 billion. To date the 17 productions have been completed and received rebate of R122 million

Since Inception 01 April 2006 to date : Approved 16 productions and value of QSAPE R1.07 billion

Industrial Development Zones Investment in infrastructure of R1,07 billion Facilitated investment to the value of over R28 billion

Export marketing and Investment assistance• 438 projects approved to the value of R 29 million. R 15.8 million

disbursed during the year. Top 3 sectors supported : Agro-processing, Electro-technical, Metals.

Sector Specific Assistance Scheme 28 projects approved to the value R13 million

MTSF 2007 - 2010MTSF 2007 - 2010



Broad Based Black Economic EmpowermentThe codes of good practice were gazetted.BEE Advisory Council to be established which will

oversee & monitor implementationNational Empowerment Fund has disbursed

R424m from approved investment of R590m Black Business Supplier Development Programme

854 projects approved to the value of R46 million. R25 million disbursed during the year.

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CONSUMER & CORPORATE REGULATIONSCONSUMER & CORPORATE REGULATIONS Corporate Law Reform:Corporate Law Reform: New Companies bill approved by Cabinet & published for New Companies bill approved by Cabinet & published for

comment. Expected to increase investment in firms by reducing regulatory & comment. Expected to increase investment in firms by reducing regulatory & administrative burden on small & medium size firmsadministrative burden on small & medium size firms

Consumer Law Reform:Consumer Law Reform: New consumer protection bill subjected to 12 months of New consumer protection bill subjected to 12 months of consultation & amended to reflect public inputs & will revert to cabinet in March consultation & amended to reflect public inputs & will revert to cabinet in March 2007. Bill will promote a fair & competitive market place for consumers2007. Bill will promote a fair & competitive market place for consumers

Credit Law Reform:Credit Law Reform: Act proclaimed & regulation published for implementation. Act proclaimed & regulation published for implementation. Will improve consumer protection, remove discrimination & create single market Will improve consumer protection, remove discrimination & create single market for credit. Will remove adverse data for approx. 1,7m consumers for credit. Will remove adverse data for approx. 1,7m consumers

Competition Policy ReviewCompetition Policy Review: Review completed & amendments to be drafted. Will : Review completed & amendments to be drafted. Will improve competitiveness of concentrated sectors & address ant-competitive improve competitiveness of concentrated sectors & address ant-competitive behaviour.behaviour.

MTSF 2007 - 2010MTSF 2007 - 2010


Contributed to Jan 2007 resumption of WTO Doha Round Led development of position on industrial tariffs in Doha Led development of SADC negotiating position on

Economic Partnership Agreement with EU/aligned to SA-EU TDCA

SACU-EFTA FTA ratified Dec 2006: on entry into force, duty free quota free market access for SACU industrial exports

New SA-EU Agreement on Auto trade in force in Dec 2006: Will encourage new investment in SA and increased auto exports to the EU

Implemented SA-China MOU on economic co-operation to provide relief to textiles and clothing sectors

Annexes on SACU tariff board & national body adopted by SACU Council in December 2006

MTSF 2007 - 2010MTSF 2007 - 2010International Trade & InvestmentInternational Trade & Investment


Export Promotion activities undertaken: 3 International Trade initiatives supporting 79 companies 33 National Pavillions generating R589 million in exports 42 Trade missions to 36 countries and from 6 countries

Export Development assistance given to exporters 577 verified trade leads 1 400 customers advised on the export process 4 000 publications distributed

Investment Promotion activities undertaken: 5 Investment seminars 5 Investment pavilions 18 Sector specific presentations and 31 briefs 2 Presidential International Investor’s Council meetings

MTSF 2007 - 2010MTSF 2007 - 2010International Trade & InvestmentInternational Trade & Investment


Various road shows and workshops were held to make communities aware of the services of the dti

The customer contact centre has been in-sourced which resulted in large cost savings & better accountability

MTSF 2007 - 2010MTSF 2007 - 2010Marketing & Communication interventionsMarketing & Communication interventions

RESOURCE MANAGEMENTRESOURCE MANAGEMENT

Human Resources Targeted filling of 150 vacancies by 31 Jan. Filled 135 =

90%

Launched special recruitment project on identified posts via a recruitment agency

Establishment reflects a 25,8% vacancy rate at 28 February 2007

Extensive training provided via bursaries, in-house training, internships, Adult Basic Education & Training programs & Regional Trade & Investment Capacity building programs

Department certified for Employment Equity Act compliance

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Finance

Unqualified audit report for 2005/06

Auditor General’s interim audit for 2006/07 – no major issues

Payment of suppliers – minimum 7 days and maximum 14 days

Yearly spending trend reflected in attached graph which reflects an average of 95% spending of allocated budget over the past four years

MTSF 2007 - 2010MTSF 2007 - 2010

0

1,000,000

2,000,000

3,000,000

4,000,000

R'0

0

Budget

Expenditure

Unspent

% Unspent

Budget 2,344,686 2,245,427 2,280,062 2,554,826 2,796,350 3,623,291 3,907,420

Expenditure 1,827,025 2,159,821 2,015,888 2,495,504 2,659,342 3,424,138 3,631,304

Unspent 517,661 85,606 264,174 59,322 137,008 199,153 276,116

% Unspent 22% 4% 12% 2% 5% 5% 7%

1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06

the dti SPENDING TRENDSthe dti SPENDING TRENDS

7 YEAR7 YEAR EXPENDITURE TRENDS EXPENDITURE TRENDS

MTSF 2007 - 2010MTSF 2007 - 2010

REASONS FORREASONS FORUNDER-EXPENDITUREUNDER-EXPENDITURE

Over the past three years the under-expenditure was largely due to Over the past three years the under-expenditure was largely due to limited spending on critical infrastructure resulting from the nature of limited spending on critical infrastructure resulting from the nature of the incentive scheme which requires:-the incentive scheme which requires:-

Payment to be made only after expenditure is incurredPayment to be made only after expenditure is incurred

Only 30% of the expenditure to be reimbursed, which has not provenOnly 30% of the expenditure to be reimbursed, which has not proven

optimal in attracting investment in infrastructureoptimal in attracting investment in infrastructure

The under expenditure in 2005/06 was largely due to:The under expenditure in 2005/06 was largely due to:

R50m on APEX fund which only became operational on 01 April 2006R50m on APEX fund which only became operational on 01 April 2006

R166m on critical infrastructure for reasons mentioned aboveR166m on critical infrastructure for reasons mentioned above

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2007 - 20102007 - 2010STRATEGIC DeliverablesSTRATEGIC Deliverables

PART THREEPART THREE

MTSF 2007 - 2010MTSF 2007 - 2010

2007 - 20102007 - 2010STRATEGIC DELIVERABLESSTRATEGIC DELIVERABLES

This section will broadly cover the following areas:This section will broadly cover the following areas:

Enterprise & Industry Support & DevelopmentEnterprise & Industry Support & Development

Consumer & Corporate RegulationConsumer & Corporate Regulation

International Trade & InvestmentInternational Trade & Investment

Marketing & CommunicationMarketing & Communication

MTSF 2007 - 2010MTSF 2007 - 2010


ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENTENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT

Implementation of National Industrial Policy Framework (NIPF)Implementation of National Industrial Policy Framework (NIPF)

Continue Sector Strategy development in alignment with NIPF & Continue Sector Strategy development in alignment with NIPF & implementation of key sector initiatives (eg, BPO & Tourism)implementation of key sector initiatives (eg, BPO & Tourism)

Over 40% of budget to support enterprise through incentivesOver 40% of budget to support enterprise through incentives

Develop a human capital strategy to support critical skills areas, including Develop a human capital strategy to support critical skills areas, including industrial centres of excellence to develop, design & engineering capabilitiesindustrial centres of excellence to develop, design & engineering capabilities

Continue technology support to enterprises via current schemesContinue technology support to enterprises via current schemes

Finalise regional growth support strategies, including IDZ’sFinalise regional growth support strategies, including IDZ’s

Increase targetted support for women owned enterprisesIncrease targetted support for women owned enterprises

Implementation & Monitoring of BBBEE strategy focusing on Codes of Good Implementation & Monitoring of BBBEE strategy focusing on Codes of Good Practice and Advisory CouncilPractice and Advisory Council

MTSF 2007 - 2010MTSF 2007 - 2010


ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENTENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT Increase financial support of the BBBEE through the DFI’sIncrease financial support of the BBBEE through the DFI’s

Increase financial support for small business through Khula, including Increase financial support for small business through Khula, including repositioning the agencyrepositioning the agency

Continue with financial support for co-operatives through the co-operatives Continue with financial support for co-operatives through the co-operatives fundfund

Finalise & implement review of current incentive schemes to support NIPF & Finalise & implement review of current incentive schemes to support NIPF & customised sector interventions customised sector interventions

MTSF 2007 - 2010MTSF 2007 - 2010


ENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENTENTERPRISE & INDUSTRY SUPPORT & DEVELOPMENT Continue & step up non-financial enterprise development support through Continue & step up non-financial enterprise development support through

effective SEDA service delivery network providing the following:effective SEDA service delivery network providing the following:

Export readiness for SMEsExport readiness for SMEs

Training & mentorshipTraining & mentorship

Manufacturing supportManufacturing support

Information & advice to businessesInformation & advice to businesses

Continue & step up roll out of micro finance through SAMAF:Continue & step up roll out of micro finance through SAMAF:

Average of R62m disbursements per annumAverage of R62m disbursements per annum

Average Increase of 2 000 borrowers per annumAverage Increase of 2 000 borrowers per annum

Average Increase of 2 000 savers per annumAverage Increase of 2 000 savers per annum

A minimum of 50 partner organisation for 2007/08A minimum of 50 partner organisation for 2007/08

MTSF 2007 - 2010MTSF 2007 - 2010


CONSUMER & CORPORATE REGULATIONSCONSUMER & CORPORATE REGULATIONS Corporate governance & company formation enhanced through enactment Corporate governance & company formation enhanced through enactment

of new Companies Bill & institutional frameworkof new Companies Bill & institutional framework

Consumer rights & redress strengthened through enactment of new Consumer rights & redress strengthened through enactment of new Consumer Bill & institutional framework, as well as review of regulation of Consumer Bill & institutional framework, as well as review of regulation of Estate AgentsEstate Agents

Innovation & protection IP rights holders promoted by reviewing & Innovation & protection IP rights holders promoted by reviewing & reforming regulatory framework for intellectual property rightsreforming regulatory framework for intellectual property rights

Improving competition in concentrated sectors & reducing harm to Improving competition in concentrated sectors & reducing harm to downstream industries by strengthening Competition law & institutionsdownstream industries by strengthening Competition law & institutions

Assessing effectiveness of existing regulation in areas of Liquor & Lotteries Assessing effectiveness of existing regulation in areas of Liquor & Lotteries

MTSF 2007 - 2010MTSF 2007 - 2010


International Trade & InvestmentInternational Trade & Investment Pursue successful development outcome in WTOPursue successful development outcome in WTO Deepen regional integration/cooperation in Africa under NEPAD Framework, Deepen regional integration/cooperation in Africa under NEPAD Framework,

notably SADC and SACUnotably SADC and SACU Review customs union options following SADC Summit, Oct 2006Review customs union options following SADC Summit, Oct 2006 Pursue common policies and institutional development in SACUPursue common policies and institutional development in SACU Strengthen investment and trade links with dynamic emerging markets (key Strengthen investment and trade links with dynamic emerging markets (key

African countries, India, Brazil, China, Gulf). African countries, India, Brazil, China, Gulf). Develop 100 emerging exporters through a Small Exporter Development Develop 100 emerging exporters through a Small Exporter Development

Programme Programme Advance trade cooperation under IBSAAdvance trade cooperation under IBSA Align SA-EU TDCA/SADC-EU economic partnership agreementsAlign SA-EU TDCA/SADC-EU economic partnership agreements Implement SACU-EFTA FTA and raise awareness of its opportunities to Implement SACU-EFTA FTA and raise awareness of its opportunities to

businessbusiness Pursue Trade and Investment Development Cooperation with USPursue Trade and Investment Development Cooperation with US Implement revised Export and Investment strategies in alignment with NIPF Implement revised Export and Investment strategies in alignment with NIPF

and sector prioritiesand sector priorities Review the strategic alignment of Foreign Office network to enhance trade Review the strategic alignment of Foreign Office network to enhance trade

and investment facilitationand investment facilitation

MTSF 2007 - 2010MTSF 2007 - 2010


Marketing & CommunicationsMarketing & CommunicationsIntensify its communication and outreach efforts focusing on major policy initiatives & offerings with particular emphasis on second economyBuild a positive profile, effectively manage perceptions and

protect its reputation

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CHALLENGESCHALLENGES

PART FOURPART FOUR

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INSTITUTIONALINSTITUTIONALCHALLENGESCHALLENGES

Recruiting and retaining requisite capacity & requisite skillsRecruiting and retaining requisite capacity & requisite skills

Ensuring continued good Corporate GovernanceEnsuring continued good Corporate Governance

Ensuring continued sound financial managementEnsuring continued sound financial management

Oversight over agenciesOversight over agencies

Increase the budget to support the dti’s new & expanding mandateIncrease the budget to support the dti’s new & expanding mandate

MTSF 2007 - 2010MTSF 2007 - 2010


PART FIVEPART FIVE

MTSF 2007 - 2010MTSF 2007 - 2010


Reducing the level of vacancies to less than 15%Reducing the level of vacancies to less than 15%

HR development & capacity buildingHR development & capacity building

Dedicated HRD strategyDedicated HRD strategy

Competency enhancement & developmentCompetency enhancement & development

Programme on investors in peopleProgramme on investors in people

University network – bursary programmeUniversity network – bursary programme

Development of supportive Development of supportive dti organisationaldti organisational culture culture

Maintain and improve best practice Corporate Governance, including agenciesMaintain and improve best practice Corporate Governance, including agencies

Information TechnologyInformation Technology

Continue with Implementation of Enterprise Content Management strategyContinue with Implementation of Enterprise Content Management strategy

Completion of Disaster Recovery projectCompletion of Disaster Recovery project

Strengthen Supply Chain Management Strengthen Supply Chain Management

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MTEF ALLOCATIONMTEF ALLOCATION

dti PROGRAMMES 2006/07 2007/08 2008/09 2009/10

1. Administration 323,069 361,367 366,901 383,863

2. International Trade & Economic Dev. 133,067 140,680 147,536 154,733

3. Enterprise & Industry Development 1,590,064 1,722,560 1,519,159 1,576,728

4. Consumer & Corporate Regulation 153,407 147,098 153,996 161,338

5. The Enterprise Organisation 1,466,169 2,082,806 2,062,195 2,576,353

6. Trade & Investment South africa 220,914 306,770 330,479 346,356

7. Marketing 55,338 84,302 87,098 92,052

Total 3,942,028 4,845,583 4,667,364 5,291,423

Year on Year % increase/Decrease 22.92% -3.68% 13.37%

R'thousands

MTSF 2007 - 2010MTSF 2007 - 2010

MTEF ALLOCATIONMTEF ALLOCATIONADDITIONAL FUNDINGADDITIONAL FUNDING

2007/08 2008/09 2009/10

Salary Adjustments – 1,000 3,000

Office of Chief Information Officer 8,000 5,000 5,000 SEDA 50,000 50,000 50,000 NEF 300,000 40,000 40,000 Co-operatives 10,000 10,000 30,000 NML 8,000 9,000 10,000 RIDS 7,000 – - Khula 40,000 35,000 30,000 Women Empowerment Fund 10,000 10,000 10,000 BPO 20,000 40,000 130,000 Staple Food Fortification 15,000 10,000 - Film & TV Programme 100,000 100,000 10,000 Sector Development Programme 10,000 20,000 30,000 CIP (ALCAN) 300,000 Investment & Exports 10,000 10,000 10,000

Total 888,000 340,000 358,000

MTSF 2007 - 2010MTSF 2007 - 2010

ANALYSIS OF CURRENT MTEFANALYSIS OF CURRENT MTEF

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2007/08 2008/09 2009/10R'000 R'000 R'000

Total allocated budget A 4,845,583 4,667,364 5,291,423Less: Payment to agencies B B/A 1,802,758 37.20% 1,608,479 34.46% 1,683,771 31.82%Sub Total C 3,042,825 3,058,885 3,607,652Less: Compensation D D/C 323,457 10.63% 343,223 11.22% 358,555 9.94%Sub Total E 2,719,368 2,715,662 3,249,097Less: Incentives F F/A 2,027,818 41.85% 2,002,810 42.91% 2,515,936 47.55%

Incentives capital G G/A 1,001,540 20.67% 911,361 19.53% 1,266,794 23.94% Other Incentives H H/A 1,026,278 21.18% 1,091,449 23.38% 1,249,142 23.61%Sub Total I 691,550 712,852 733,161Less: Goods & Services J J/A 548,371 11.32% 572,066 12.26% 595,046 11.25%Sub Total M 143,179 140,786 138,115Less: Other payments N N/A 125,587 2.59% 126,008 2.70% 120,849 2.28%Less: Capital O O/A 17,592 0.36% 14,778 0.32% 17,266 0.33%

0 0 0

ANALYSIS OF CURRENT MTEFANALYSIS OF CURRENT MTEF

On average the structure of the budget allocation over the MTEF On average the structure of the budget allocation over the MTEF period is:period is: 34% to agencies of 34% to agencies of the dtithe dti

44% to incentive payments44% to incentive payments

7% to compensation (11% after deduction to agencies)7% to compensation (11% after deduction to agencies)

12% to goods & services, of which a large percentage are for committed12% to goods & services, of which a large percentage are for committed

expenditureexpenditure

3% to Capital & Other Payments3% to Capital & Other Payments

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STRUCTURESTRUCTURE

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Ministry

Office of the DG

Policy co-ordination

International Trade and Economic Development

Enterprise and Industry Development

Consumer and Corporate Regulation

The Enterprise Organisation

Trade and Investment South

Africa

Marketing

18 Agencies

ECONOMIC CLUSTERECONOMIC CLUSTER

PART SIXPART SIX

MTSF 2007 - 2010MTSF 2007 - 2010

ECONOMIC CLUSTERECONOMIC CLUSTER

MTSF 2007 - 2010MTSF 2007 - 2010

the dti chairs the Economic Cluster of Departments The Cluster’s three-year programme of action for 2007-2009 was adopted at the Cabinet Lekgotla in January 2007The programme of action focuses on:

- Increasing economic efficiencies- Promoting dynamic sectors- Integrating small and micro

enterprises

CLUSTER’S KEY INTERVENTIONSCLUSTER’S KEY INTERVENTIONS

(3) Integrate small- and micro-enterprises9. Integrated small enterprise service delivery (incl. comprehensive

procurement strategy, marketing cooperatives, business developmentsupport and access to finance)

10. Reduced SMME regulatory burdens (incl. by-laws)

(2) Promote dynamic growth sectors7. Implement industrial policy framework, focusing on key sectors and

leveraging public spending 8. Supportive macro-economic management (esp. competitive and stable

real effective exchange rate)

(1) Increase economic efficiencies 1. Strengthen economic regulator capacity in key industries2. Amend competition policy to support effective regulation 3. Increase access, uptake & usage of ICT infrastructure 4. Phased roll-out of overhauled public transport network 5. Monitor implementation & impact of infrastructure roll-out6. Coordinated NHRD, with focus on ASGI-SA priorities

MTSF 2007 - 2010MTSF 2007 - 2010

ADDITIONAL STRATEGIC CLUSTERADDITIONAL STRATEGIC CLUSTER

ICT Infrastructure, especially Broadband Critical to success of knowledge economy and integration of

marginalised households into the economy

Public transport Intervention that will support labour mobility and reduced cost of

living

Energy Economy needs more energy whilst rebalancing energy sources

Transformation of Second Economy Second Economy interventions are crucial to the achievement of the

2014 unemployment and poverty targets

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CONCLUSIONCONCLUSION

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The department will build on the considerable momentum already established i.t.o its strategic The department will build on the considerable momentum already established i.t.o its strategic objectives, focusing on: objectives, focusing on:

Coordinated implementation of Economic Cluster projects as per theCoordinated implementation of Economic Cluster projects as per the

three-year Cluster POA and the NIPFthree-year Cluster POA and the NIPF Implementation of sector strategies that have been completed (e.g. BPO, Clothing andImplementation of sector strategies that have been completed (e.g. BPO, Clothing and

Textiles, Tourism etc.) as a force forTextiles, Tourism etc.) as a force for

investment, diversification and job creationinvestment, diversification and job creation Strengthening of regional integration initiatives & support for NEPADStrengthening of regional integration initiatives & support for NEPAD Strengthening of enterprise development initiativesStrengthening of enterprise development initiatives The implementation and enforcement of policy & legislation in the areas of companies,The implementation and enforcement of policy & legislation in the areas of companies,

consumers, credit, competition & BBBEEconsumers, credit, competition & BBBEE Implementation of Export & Investments strategies and the pursuit ofImplementation of Export & Investments strategies and the pursuit of

developmental outcomes in both WTO & bilateral trade negotiationsdevelopmental outcomes in both WTO & bilateral trade negotiations

This will requires strengthened Monitoring and Evaluation, a technically skilled and highly This will requires strengthened Monitoring and Evaluation, a technically skilled and highly motivated workforce, continued improvements in government coordination, and continued motivated workforce, continued improvements in government coordination, and continued engagement with and support of Parliament and other stakeholdersengagement with and support of Parliament and other stakeholders

MTSF 2007 - 2010MTSF 2007 - 2010

THANK YOUTHANK YOU

Briefing to the Portfolio Committee on Trade and Industry 14 March 2007 MTSF 2007 - 2010.

Documents

Transcript of Briefing to the Portfolio Committee on Trade and Industry 14 March 2007 MTSF 2007 - 2010.