strategy 2006 – 2009

STRATEGY 2006 – 2009

Briefing to the Portfolio Committee on Trade and Industry and the Select

Committee on Economic and Foreign Affairs

15 March 2006


Contents

Context

Strategic Objectives

Progress on 2005/06 Deliverables

Strategic Goals for 2006 to 2009

Budget

Structure

Regulatory Programme


Context

The MTSF is informed by:

The Accelerated and Shared Growth Initiative

Achieving and sustaining higher GDP

Need to increase Job Creation

Need to increase Investment

Need to increase Exports

Broadening of Economic participation through

BBBEE and Enterprise Development

Record levels of consumer and business confidence


Context

Low inflation and interest rates

Lowest budget deficit in years

Volatility & level of the currency

Cost, efficiency & capacity of the national logistics system

Shortage of capacity, skilled labour & leadership

Cost effects on labour of apartheid spatial patterns

Constraints on small & medium businesses


Strategic Objectives Promoting coordinated implementation of the accelerated &

shared growth initiative Promoting direct investment & growth in the industrial &

services 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 and promote equitable global

trade


2005/06 DeliverablesProgress on Key Deliverables for 2005/06 National Consumer Credit Bill proclaimed and regulations

published for comment Consumer Bill approved by Cabinet Draft Companies Bill discussed with local and international

reference team Competition Policy Review document finalised 500 consumer complaints, 17 company complaints and 52

intellectual property complaints resolved.


2005/06 DeliverablesProgress on Key Deliverables for 2005/06 Effective participation in 6th WTO Ministerial Conference Instrumental in formation of industrial trade lobby group in

WTO at Hong Kong Negotiations with EFTA concluded Ongoing engagement between SACU and US on possible FTA Operationalisation of the Permanent Trade Forum Exploratory talks with India 13 Investment Protection Agreements and Bilateral

cooperation agreements concluded 23 technical and trade missions to African countries


2005/06 DeliverablesProgress on Key Deliverables for 2005/06

80 BEE projects valued R160m supported through Industrial

Innovation

927 researches and 2250 students assisted through

Technology for Human Resources ( 53% black women)

98 new standard accreditation done on facilities

Apex fund launched in five provinces

Cooperative scheme scoped 20 mega projects in 9 provinces

Finalised Codes of Good Practice



Investment incentives Small Medium Enterprise Development Programme

1 791 new projects approved R13,9b investment, 39 122 new jobs created

Strategic Industrial Projects (SIP) 5 New projects approved R11,12b investment by approved projects, 778 direct jobs, 31 481 indirect jobs

Critical Infrastructure Programme (CIP) 8 New Projects approved R1,6b investment in infrastructure, R8,5b investment in projects



Investment incentives – cont. Film & Television Production Rebate Scheme

15 Productions approved Investment: R732m, Rebate amount R124m

Export Marketing and Investment Assistance Scheme 523 New Projects approved (R33,7m)

Individual Exhibitions: 458 Enterprises (R20.8m) Primary Market Research: 39 Enterprises (R1m) Sector Specific Assistance Scheme: 23 Projects

(R11.7m) Claims R15,4m


2005/06 DeliverablesProgress on Key Deliverables for 2005/06Black Business Supplier Development Programme (BBSDP)

545 New projects approved/ Enterprises assisted Value of projects R27,4m Claims paid: R15,5m

In the first two quarters R1.4bn of foreign direct investment

was facilitated.


2005/06 DeliverablesProgress on Key Deliverables for 2005/06 5506 exporters assisted and advised

50% of EMIA recipients were SMME’s, 21% were

black and women owned enterprises

29 national pavilions were held generating R324,8m in

export sales for participating enterprises

83 inward investment and buying missions

46 outward buying missions



11 Sector Development Strategies & Programmes in various stages of

development. Of these 8 (i.e., Textiles and clothing, and Footwear &

leather, Metals, Agro-processing, Craft and film, Marine and rail,

Automotives, Electro-technical, Capital equipment) have been developed

& to be considered by the Executive Board of the dti for approval &

public comments, 3 (i.e., Business Process Outsourcing, Tourism,

Chemicals) was approved by the Executive Board and published for

comments.


2005/06 DeliverablesProgress on Key Deliverables for 2005/06 Expanded outreach to clients and customers:

A total of 1,485, 200 website hits were recorded 65 once-off, or specialised publications, brochures &

pamphlets were published

In total 60 events and exhibitions were successfully

managed & executed

Over 40 000 economic citizens visited the dti to enquire on

various services such as incentives, registration of companies

98% of all escalated queries are resolved within 48 hours


Strategic Goals

Strategic goals of the Department will be addressed in the following categories:

Policies & Strategies

Legislation & Regulation

Enterprise & Industrial Finance

International Trade

Support for the Strategy


Strategic GoalsPolicies & strategies to be finalised include: Industrial Policy framework Competition policy review Intellectual Property Law Reform Policy Export Promotion & Investment strategies National Services strategy framework Business Process Outsourcing strategy Regional Industrial Development Strategy Manufacturing Skills Strategy Gender & Women’s Empowerment strategy Trade policy incl. WTO, Bilaterals & Africa/Nepad


Strategic GoalsPolicies & strategies to be finalised include:

Review of Estate Agents regulatory framework

In line with the State of the Nation Address of 2005 and 2006,

8 Sector Development Strategies And Programmes (i.e.,

Textiles and clothing, & Footwear and leather, Metals, Agro-

processing, Craft and film, Marine & rail, Automotives,

Electro-technical, Capital equipment) to be published


Strategic Goals

Legislation and regulation will include: Amendments to:

The National Gambling Act (Horse Racing) The National Lotteries Act Counterfeit Goods Act Companies Act IDZ Regulations

Regional Industrial Development Support Measures Bill New Enterprise Development Bill

Gender & Women’s Empowerment strategy African Economic Development Strategy


Strategic Goals

Legislation and regulation – cont. Consumer Protection Bill Amendments to the Competition Act Corporate Law Reform Bill Technical, Regulatory Framework: Accreditation, Metrology,

Conformity Assessment & Good Laboratory Practice Bill Measurement Standards Bill BBBEE Codes of Good Practice & Co-operatives regulations

will be adopted


Strategic GoalsEnterprise & Industrial Finance One-third of budget in the MTSF period will be utilised to support enterprise Existing Incentive Schemes to be reviewed & aligned with Industrial Policy New Incentive Schemes will be launched incl. schemes to support:-

Co-operative Enterprises Women Owned Enterprises Business Process Outsourcing

Apex Fund to become operational in 2006/07 Finance Agencies to launch new products for small business


Strategic GoalsSupport for the Implementation of the Strategy Establish and participate in forums to ensure alignment within

government Seek to leverage strategic partnerships with relevant

stakeholders Provide increased emphasis on monitoring, evaluation &

impact assessment of the dti and COTTI work to ensure

alignment with the dti objectives Greater focus on recruiting, developing and retention of skills

and capacity

Economic Classification

2006/07

R’000

2007/08

R’000

2008/09

R’000

Current payments

Compensation of employees 300 929 315 205 331 410

Goods and services 468 940 483 851 492 925

Transfers & subsidies 2 887 190 3 148 934 3 493 250

Payment for capital assets 8 853 9 593 9 779

Total 3 665 912 3 957 583 4 327 364


Budgets


Budgets

Budget - 7 year comparison

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Budget 1,944,315 1,977,185 2,257,075 2,473,336 3,274,965 3,332,556 3,665,912

2000-2001 2001-2002 2002-2003 2003-2004 2004/05 2005/06 2006/07

From 2002/03 to 2008/9, the budget increased at an average of 11,5%

Programme

Budget

R’000 Percentage

Administration 326 800 8,9%

International Trade & Economic Dev. 129 200 3,5%

Enterprise & Industry Development 1 235 000 33,7%

Consumer & Corporate Regulation 146 400 4,0%

The Enterprise Organisation 1 420 000 38,7%

Trade and Investment South Africa 322 300 8,8%

Marketing 86 200 2,4%

Total 3 665 900 100%


Budgets 2006/07

Activities R’000

National Empowerment Fund 409 480

SEDA 171 426

Apex Fund 80 000

Enterprise Development 598 636

BPO 70 000

Film & Television 72 400

IDZ’s 422 012


Budgets 2006/07Contributions of Budget to Key Areas


Structure

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

19 Agencies

Group Systems and

Support Services

Strategic Goals

•Corporate law amendment Bill For review

•Consumer protection Bill June 2006

•Enterprise Development Bill June 2006

•Intellectual property Amendment Bill August 2006

•Sugar Bill August 2006

•Competition Amendment Bill July 2006

•Lotteries Amendment Bill July 2006

•Accreditation Conformity Assessment Bill April 2006

•Measurement and Units and Standards Bill April 2006

•Standards Bill July 2006

•Compulsory Specifications of Standards Bill July 2006

Legislative Programme

QUESTIONS

&

COMMENTS

strategy 2006 – 2009

Documents