Briefing to the Select Committee on Economic and Foreign Affairs 23 May 2007

Briefing to the Select Committee on Economic and Foreign Affairs

23 May 2007

MTSF 2007 - 2010MTSF 2007 - 2010

Presentation covers:Presentation covers:Part One - Context & Strategic ObjectivesPart Two - 2006/07 Key OutputsPart Three - 2007 -2010 Strategic DeliverablesPart Four - ChallengesPart Five - Resourcing the StrategyPart 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

MTSF 2007 - 2010MTSF 2007 - 2010


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 on 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

MTSF 2007 - 2010MTSF 2007 - 2010


Policy & Strategy Responses Asgisa introduced; identifies key binding

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

informed by Asgisa aims the dti 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

MTSF 2007 - 2010MTSF 2007 - 2010

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

As the key part of the NIPF the Regional Industrial Development Strategy (RIDS) being finalised 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


Strategies in the following key sectors in advanced stage:• Capital Equipment, Metals• Automotives & Aerospace• Agro-processing, forestry• Clothing & Textiles• Chemicals, Plastics & Pharmaceuticals• ICT/Electro technical• BPO & Services• Cultural Industries

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

Roll out of Seda with a network of 47 offices across the country

Rollout of SAMAF progressing well through network of 38 institutions country wide having 4 346 borrowers & 14 353 savers over 15 month period

MTSF 2007 - 2010MTSF 2007 - 2010

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

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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 13.9 billion and R 2.49 billion has been disbursed.

• 01 April 2006 to date: 3 337 approved projects with a projected qualifying investment of R17.2 billion. The value of incentives approved is R 3.8 billion and R 676.5 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

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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

MTSF 2007 - 2010MTSF 2007 - 2010



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 17 productions have been completed and received rebate of R122 million

Since 01 April 2006 to date : Approved 19 productions and value of QSAPE R1.17 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• 405 projects approved to the value of R218 million. R 10 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 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

891 projects approved to the value of R46.9 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 New Companies bill approved by Cabinet & published

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

Consumer Law Reform:Consumer Law Reform: New consumer protection bill subject to public New consumer protection bill subject to public consultation & inputs being incorporated. Bill will promote a fair & consultation & inputs being incorporated. Bill will promote a fair & competitive market place for consumerscompetitive market place for consumers

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

Competition Policy ReviewCompetition Policy Review: Review completed & amendments to be drafted. : Review completed & amendments to be drafted. Will address anti-competitive behaviour in concentrated sectors.Will address anti-competitive behaviour in concentrated sectors.

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 bodies 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

Several publications disseminated

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

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6 YEAR6 YEAR EXPENDITURE TRENDS EXPENDITURE TRENDS

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0

1,000,000

2,000,000

3,000,000

4,000,000

R'0

00

Budget

Expenditure

Unspent

% Unspent

Budget 2,280,062 2,554,826 2,796,350 3,623,291 3,907,420 3,942,028

Expenditure 2,015,888 2,495,504 2,659,342 3,424,138 3,631,304 3,804,720

Unspent 264,174 59,322 137,008 199,153 276,116 137,308

% Unspent 12% 2% 5% 5% 7% 3%

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

the dti SPENDING TRENDSthe dti SPENDING TRENDS

REASONS FORREASONS FORUNDER-EXPENDITUREUNDER-EXPENDITURE

Over the past three years the under-expenditure was largely due toOver the past three years the under-expenditure was largely due tolimited spending on critical infrastructure resulting from the nature limited spending on critical infrastructure resulting from the nature of the incentive scheme which requires:-of 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 2006/07 was largely due to:The under expenditure in 2006/07 was largely due to:

• R20m i.r.o. the joint dti/ Dept. of Health Staple Food Fortification R20m i.r.o. the joint dti/ Dept. of Health Staple Food Fortification project delayedproject delayed

• R70m i.r.o. the BPO&O project (project scheduling constraints)R70m i.r.o. the BPO&O project (project scheduling constraints)

MTSF 2007 - 2010MTSF 2007 - 2010

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

Over 40% of budget to support enterprise through Over 40% of budget to support enterprise through incentivesincentives

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

MTSF 2007 - 2010MTSF 2007 - 2010

Continue Sector Strategy development in alignment with Continue Sector Strategy development in alignment with NIPF & implementation of key sector initiativesNIPF & implementation of key sector initiatives

•BPO & Tourism•Metals•Chemicals•Clothing & Textiles•Capital Equipment•Agro-processing•Creative Industries & Craft, including Film & TV


MTSF 2007 - 2010MTSF 2007 - 2010



Over 40% of budget to support enterprise through Over 40% of budget to support enterprise through incentivesincentives

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

MTSF 2007 - 2010MTSF 2007 - 2010



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

Finalise regional growth support strategies, Finalise regional growth support strategies, including IDZsincluding IDZs

Increase targetted support for women owned Increase targetted support for women owned enterprisesenterprises

Implementation & monitoring of BBBEE strategy Implementation & monitoring of BBBEE strategy focusing on Codes of Good Practice and Advisory focusing on Codes of Good Practice and Advisory CouncilCouncil

MTSF 2007 - 2010MTSF 2007 - 2010



Increase financial support of the BBBEE through Increase financial support of the BBBEE through the DFIsthe DFIs

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

Continue with financial support for co-operatives Continue with financial support for co-operatives through the co-operatives fundthrough the co-operatives fund

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

MTSF 2007 - 2010MTSF 2007 - 2010



Continue & step up non-financial enterprise Continue & step up non-financial enterprise development support through effective SEDA development support through effective SEDA service delivery network providing the following:service delivery network providing the following:

Business ServicesBusiness Services Training & mentorshipTraining & mentorship Manufacturing supportManufacturing support Technology supportTechnology support Information & advice to businessesInformation & advice to businesses

MTSF 2007 - 2010MTSF 2007 - 2010



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

Average of R62m disbursements per annumAverage of R62m disbursements per annum Average increase of 2 000 borrowers per Average increase of 2 000 borrowers per

annumannum Average increase of 2 000 savers per annumAverage increase of 2 000 savers per annum A minimum of 50 partner organisation for A minimum of 50 partner organisation for

2007/082007/08

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CONSUMER & CORPORATE REGULATIONSCONSUMER & CORPORATE REGULATIONS Corporate governance & company formation to be enhanced Corporate governance & company formation to be enhanced

through enactment of new Companies Bill & institutional through enactment of new Companies Bill & institutional frameworkframework

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

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

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

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

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

under NEPAD Framework, notably SADC and under NEPAD Framework, notably SADC and SACUSACU

Review customs union options following SADC Review customs union options following SADC Summit, Oct 2006Summit, Oct 2006

Pursue common policies and institutional Pursue common policies and institutional development in SACUdevelopment in SACU

Strengthen investment and trade links with Strengthen investment and trade links with dynamic emerging markets (key African countries, dynamic emerging markets (key African countries, India, Brazil, China, Gulf). India, Brazil, China, Gulf).

Develop 100 emerging exporters through a Small Develop 100 emerging exporters through a Small Exporter Development Programme Exporter Development Programme

MTSF 2007 - 2010MTSF 2007 - 2010


International Trade & InvestmentInternational Trade & Investment Advance trade cooperation under IBSAAdvance trade cooperation under IBSA Align SA-EU TDCA/SADC-EU economic partnership Align SA-EU TDCA/SADC-EU economic partnership

agreementsagreements Implement SACU-EFTA FTA and raise awareness Implement SACU-EFTA FTA and raise awareness

of its opportunities to businessof its opportunities to business Pursue Trade and Investment Development Pursue Trade and Investment Development

Cooperation with USCooperation with US Implement revised Export and Investment Implement revised Export and Investment

strategies in alignment with NIPF and sector strategies in alignment with NIPF and sector prioritiespriorities

Review the strategic alignment of Foreign Office Review the strategic alignment of Foreign Office network to enhance trade and investment network to enhance trade and investment facilitationfacilitation

MTSF 2007 - 2010MTSF 2007 - 2010


Marketing & CommunicationsMarketing & Communications Intensify communication & outreach efforts Intensify communication & outreach efforts

focusing on major policy initiatives & offerings focusing on major policy initiatives & offerings with particular emphasis on second economywith particular emphasis on second economy

Build a positive profile, effectively manage Build a positive profile, effectively manage perceptions and protect reputation of the dtiperceptions and protect reputation of the dti

MTSF 2007 - 2010MTSF 2007 - 2010

CHALLENGESCHALLENGES

PART FOURPART FOURMTSF 2007 - 2010MTSF 2007 - 2010

INSTITUTIONALINSTITUTIONALCHALLENGESCHALLENGES

Recruiting and retaining requisite capacity & requisite Recruiting and retaining requisite capacity & requisite skillsskills

Ensuring continued good corporate governanceEnsuring continued good corporate governance Ensuring continued sound financial managementEnsuring continued sound financial management Oversight over dti agencies & their alignment to Oversight over dti agencies & their alignment to

prioritiespriorities Increase the budget to support the dti’s expanding Increase the budget to support the dti’s expanding

mandatemandate

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PART FIVEPART FIVE

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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

MTSF 2007 - 2010MTSF 2007 - 2010


Maintain and improve best practice corporate Maintain and improve best practice corporate governance, including agenciesgovernance, including agencies

Information TechnologyInformation Technology Continue with implementation of Enterprise Continue with implementation of Enterprise

Content Management strategyContent Management strategy Completion of Disaster Recovery projectCompletion of Disaster Recovery project

Strengthen Supply Chain ManagementStrengthen Supply Chain Management

MTSF 2007 - 2010MTSF 2007 - 2010

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

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ANALYSIS OF CURRENT MTEFANALYSIS OF CURRENT MTEF

MTSF 2007 - 2010MTSF 2007 - 20102007/08 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

MTSF 2007 - 2010MTSF 2007 - 2010

STRUCTURESTRUCTUREMTSF 2007 - 2010MTSF 2007 - 2010

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 CLUSTERMTSF 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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CONCLUSIONCONCLUSIONMTSF 2007 - 2010MTSF 2007 - 2010

The department will build on the considerable momentum already established i.t.o its The department will build on the considerable momentum already established i.t.o its strategic objectives, focusing on: strategic 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 to promote Implementation of sector strategies that have been completed to promote investment,investment, diversification and job creationdiversification 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 The implementation and enforcement of policy & legislation in the areas of companies,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 pengagement with and support of parliament and other stakeholdersarliament and other stakeholders

MTSF 2007 - 2010MTSF 2007 - 2010

THANK YOUTHANK YOU

Briefing to the Select Committee on Economic and Foreign Affairs 23 May 2007

Documents

Transcript of Briefing to the Select Committee on Economic and Foreign Affairs 23 May 2007