PRESENTATION TO THE SELECT COMMITTEE
ON TRADE AND INTERNATIONAL RELATIONS
ON THE DTI 2010 ANNUAL REPORT
Date : 13 October 2010
Director-General
Mr Tshediso Matona
1
Presentation Outline
 Economic Context
 Strategic Objectives
 Achievements against planned targets
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Industrial Development
Trade, Investment & Exports
Broadening Participation
Regulation
Administration & Co-ordination
 Expenditure against Budget
 Challenges
2
Economic Context
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In the reporting period, 2009/10, the overarching focus and thrust of the
dti’s work has been to take decisive actions to address some of the binding
constraints that are impeding the economy’s growth and employment
potential, and its diversification and value-adding capacity.
Specifically, the dti finalised the next phase of the Industrial Policy
Implementation Plan (IPAP 2).
Although the economy’s positive growth rate reached a post-1994 peak of
5% pa in the period 2004/07 (see figure 1), this did not significantly reduce
unemployment which never fell below 22.8%.
This growth has been driven mainly by international commodity price
increases; credit-induced consumption; and therefore not sufficiently
underpinned by growth of the production sectors of the economy, was an
indication of a deep-seated structural problem facing our economy.
The economy’s growth went into reverse during 2008/09 due to the global
recession, reaching a low of 1.8% in 2009.
However, the economy quickly recovered in 2009/10, recording a rate of
3.2% in the fourth quarter of 2009 and 4.6% and 3.2% in the first and
second quarters of 2010, respectively.
3
Economic Context
Data received from Stats SA, dti graph
4
Economic Context
 This recovery was led by the primary sector
although the secondary sector also showed
solid performance, growing by 7%, a decline
from 8.1% in the last quarter of 2009, and led
by manufacturing with 8.4% growth in the first
quarter of 2010. (Source: Reserve Bank
Quarterly Bulletin, June 2010)
5
Economic Context
Manufacturing performance
 Key sub sectors driving the manufacturing sector include the
manufacturing of motor vehicles, components and other
transport equipment driven by firmer domestic and foreign
demand.
 Also showing some improvement were other tradable goods
such as chemical products and basic metals and steel.
International Trade performance
 Export volumes declined by 3.3% in the first quarter of 2010 and
that can be attributed to weaker macro-economic conditions in
certain European countries as well as the strength of the rand
which impeded the competitiveness of the South African
products in the international markets.
6
Economic Context
 The most negatively affected sectors include Machinery and
Electrical equipment; Agricultural products and Transport
equipment destined for Europe.
 The decline further exacerbated the pressure on the balance of
payments.
 The current account showed a deficit of R12.9 billion in the first
quarter of 2010, a deterioration from a surplus of R24.9 in the last
quarter of 2009.
7
Economic Context
 Investment performance
 Real gross fixed capital formation increased marginally at an
annualized growth rate of 0.2% in the first quarter of 2010 following
three consecutive declines of 2.5% in the second quarter, 6.5% in
the third and 0.9% in the fourth quarter of 2009, respectively. This
growth was a result of investment by public corporations while
investment by private business enterprises declined by 0.7%
preceded by 4 consecutive declines in 2009.
 Employment performance
 Formal non-agricultural employment declined by 3% in 2009, after
increasing by 1.8% and 2.9% in 2008 and 2009 respectively.
 For the private sector the decline was even higher at 4.8% in 2009,
although there was a 1.2% increase in the last quarter.
 This decline was mitigated by an increase of 3.7% in public sector
employment for the same period.
8
Economic Context

Major job loses in 2009 were in:
 manufacturing sector losing 87 000 jobs
 construction losing 38 000 jobs;
 non-gold mining losing 22 500;
 trade, catering and accommodation losing 66 900;
 finance and insurance losing 90 200.
(Source: Reserve Bank Quarterly Review, June 2010)
9
Strategic Objectives
10
Strategic Objectives
the dti’s strategic objectives for the period under review were:

Promoting the coordinated and accelerated implementation
of government’s economic vision and priorities;
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Promoting direct investment and growth in the industrial and
services economy, with particular focus on employment
creation;
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Raising the level of exports and promoting equitable global
trade;
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Promoting broader participation, equity and redress in the
economy; and

Contributing to Africa's development and regional integration
within the NEPAD framework
11
The structure of the dti‘s
work
the dti’s work is organised in terms of the following
clusters:
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Industrial development;
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Trade, Investment and Exports;
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Broadening participation;
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Regulation, and
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Administration and co-ordination
12
ACHIEVEMENTS AGAINST
PLANNED TARGETS
13
Industrial Development
Work here entailed sectoral strategies and implementation of key action
programmes targeting identified constraints, including through financial
and other support, regulations, research etc. In this context the
highlights are as follows:
 Industrial Policy Action Plan 2 (IPAP2) finalised
 The implementation of the Framework to SA Response to the Global
Economic crisis, focusing on the IDC fund of R6,2 billion for distressed
firms
 In response to the energy crisis, the dti participated in the National
Energy Response Team (NERT) and Electricity Growth Management
(EGM) task team and developed criteria for New Large Electricity
Connections.
14
Industrial Development
Sector interventions

In the Automotives sector, a new Automotive Investment Scheme
(AIS) was finalised. A multi-year Supplier Development Programme for
the automotive sector has also been finalised.

Draft strategy developed for the Agro-Industrial sector

In the BPO sector, working with the Business Trust and the Department
of Labour, the dti completed its pilot project for Monyetla resulting in
about 90% of learners being gainfully employed, and exceeding the
target from a planned 1000 learners to 1307 learners being trained.
Time extensions were also granted to a number of Business
Outsourcing and Off-shoring (BPO&O) projects with regards to meeting
investment and employment targets.
15
Industrial Development
Sector interventions

In the Forestry, Timber, Paper and Pulp Sector, work has been
undertaken on skills and technology upgrading for small scale sawmillers; the development of furniture clusters and support for the
establishment of charcoal plants in rural areas.

In the furniture industry, the dti launched the R20 million Mthatha
furniture incubation centre.
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In the Tourism Sector, the dti played a supportive role in the broader
national tourism strategy of the Department of Environmental Affairs and
Tourism, primarily with respect to the development of niche tourism
strategies and the groundwork for the establishment of a private sector
driven Tourism Export Council.
16
Industrial Development
Sector interventions

Within the creative industry sector, the establishment of craft hubs is
underway and the business plan for the high-end retail concept of
Mzansi was completed.

In the Plastics, Pharmaceuticals and Chemicals Sector, scoping
studies were undertaken, including a study into potential downstream
polypropylene products which was used for investment promotion
campaigns abroad. Additional work was done to enable expanded local
production in local vaccines and antigens.

In the Bio-fuels sector, a feasibility study was completed for the
investment and project plan required for a biodiesel refinery as well as
work to enable the appropriate regulatory environment for the industry.
17
Industrial Development
 In the Metals sector, a proposal on the introduction of an export
tax on scrap metal has been completed and submitted to National
Treasury for further assessment.
 In addition work was undertaken to enable the identification of
fleet programmes to leverage government procurement; a
Competitive Financing Programme for suppliers into the public
sector capex programmes; benchmarking and matchmaking for
OEM’s in specific supply chains and the National Tooling Initiative
designed to rehabilitate the tool, die and mould making industry.
 In the Clothing and Textiles Competitiveness Programme
(CTCP) was established and is administered by the IDC. the dti
worked closely with SARS to coordinate efforts to ensure increased
capacity and intervention to clamp down on illegal imports. Further
work is underway to finalise the architecture of a production
incentive scheme for this sector.
18
Industrial Development
 “Green industries”
Ground work undertaken to lay the basis for rapid up scaling of the
‘green’ industries and to lay the basis for the plans set out in IPAP2
on Solar Water Heating; Concentrated Solar Thermal; the
development of an industrial energy efficiency programme and
water efficiency standards as well as sector strategies for wind and
biomass energy generation and recycling.
19
Industrial Development
Regulation
 On Modernising the South African Technical Infrastructure (SQAM) A Technical Infrastructure (SQAM) strategy was drafted and a task team
established. Considerable progress has been registered in efforts to
upscale the technical and operational capacity of the SQAM institutions
to ensure that they can meet the demands of an ever changing global
trade environment and the targets set out in the IPAP2.
 Draft regulations for the National Regulator for Compulsory
Specifications Act have been developed by the dti and NRCS and
consultation workshops with industry stakeholders were held.
20
Industrial Development
Industrial financing
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Substantial work was undertaken to align industrial financing with industrial
policy objectives and the dti completed the development of the revised
guidelines for the Enterprise Investment Programme, the Automotive Investment
Scheme (AIS) as well as the development of Section 12i Tax Allowance
Regulations in collaboration with National Treasury.
463 enterprises with capital investment projects valued at R18.1 billion were
approved under the three main investment support programmes, namely, the
Critical Infrastructure Programme, Enterprise Investment Programme and
the Business Process Outsourcing and Offshoring Programme. These
investments are in the following sectors: Mining, Energy, Manufacturing and
Chemicals. As a result, it is projected that 33444 jobs will be created over the next
three years.
Under the BPO & O incentive 11 enterprises were supported, leveraging an
investment of R796.8 million; which is expected to create 11852 jobs over the
medium term period, 1534 of which have already been created.
21
Industrial Development
Industrial financing
 Under the Film and Television incentive programme, 55 productions
were approved which included 45 South African productions and coproductions as well as 10 foreign productions with Qualifying South
African Production Expenditure (QSAPE) of R1.3 billion. Two films
supported by the incentive, namely, District 9 and Invictus have been
nominated for Golden Globe and Oscar awards.

The Tourism Support Programme (TSP) supported 164 projects with
projected investment of R 2.3 billion and 4 770 projected jobs.

The Manufacturing Investment Programme (MIP) has supported 290
projects leveraging investment of R6.1 billion which is expected to create
11 336 jobs.
22
Industrial Development
Industrial Development Zones
 Coega IDZ – Signed 4 investors with an estimated combined
investment of R 1.7 billion and 192 direct jobs. Exports from
enterprises operating at Coega were valued at R135.7 million for the
first 3 quarters of 2009/10 financial year.
 East London IDZ - Secured 6 investors with estimated investment of
R 309 million and estimated 2 050 direct jobs.
 Richards Bay IDZ - Operator Permit was approved by the Minister of
Trade and Industry in November 2009.
 Saldanha Bay - Assisted in terms of preparations for IDZ designation
and partially funded their feasibility study.
 Gauteng - Assisted province on OR Tambo application.
23
Trade, Investment & Exports

Economic cooperation agreements signed with Angola, Nigeria, Zambia,
Egypt, Senegal; BIT with Zimbabwe; agreements with Ethiopia, Uganda and
Burundi await signature.

Ongoing consolidation of the SADC FTA, whilst developing an approach to
advance the SADC-EAC-COMESA Tripartite FTA.

SADC Services Protocol adopted.

Facilitated consensus on the focus areas for SACU’s new strategic vision.

Participated in the SADC-EU EPA and forestalled implementation that would
undermine SACU.

Re-established management of the RISDP unit at the DBSA and undertook
work on Spatial Development Initiatives with Namibia and Angola.
24
Trade, Investment & Exports
South-South:

SACU-Mercosur PTA submitted to Parliament for ratification.

SACU-India PTA negotiations ongoing; preparing to explore modalities
for a SACU-Mercosur-India trilateral trade arrangement.

Trade policy support provided to Ministers under the IBSA framework.

MOU on trade and economic partnership signed with Brazil.
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Continued engagement with the People’s Republic of China on the
Partnership for Growth and Development (PGD), to be incorporated in
the Comprehensive Strategic Partnership Agreement (CSPA).
25
Trade, Investment & Exports
North:

Advanced positions for extending AGOA’s third country fabric provision
to SA to ensure common application to the region and that the extension
of benefits to LDCs is balanced.

Facilitated first technical session and work programme for the Trade,
Investment, Development and Cooperation Agreement with USA.

SA-EU Enlargement Protocol signed, extending TDCA preferences to
Bulgaria and Romania.
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SA-EU Cheese Agreement implemented.

Economic Cooperation Agreement signed with Hungary.
26
Trade, Investment & Exports
Multilateral:

Continued engagement in WTO Doha Round to secure developmental
outcome and led preparation for 7th WTO Ministerial Conference.
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Participated in SACU WTO Trade Policy Review.
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Supported government’s participation in the G20 process.
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Shaped investment policy dialogue in the G8+5 process.
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Facilitated SA/Africa sessions in the World Economic Forum programmes.
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Developed initial position on trade aspects of climate change negotiations.
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Developed common African positions in FOCAC, India-Africa, EU-Africa,
South America-Africa engagement and TICAD with Japan.
27
Trade, Investment & Exports
Trade Policy and Legal:

Strengthened consultations in Nedlac and International Cooperation
Trade and Security Cluster.

Trade Policy and Strategy Framework (TPSF) and Review of Bilateral
Investment Treaties approved by Cabinet.

Provided guidance to SA legal team on the Italian arbitration case.
28
Trade, Investment & Exports

International Trade and Investment Initiatives were facilitated to Brazil,
China and DRC.

23 National and 1 Local Pavilion as well as 49 Group Trade Missions
were undertaken.

Facilitated the participation of business people in delegations on State
visits to the following countries i.e. Angola (120), Zambia (80), Brazil
(60), Nigeria (50), UK (210) Uganda (40).

Facilitated the T6 Puma expansion programme at Ford resulting in new
component suppliers such as Magnetto from Italy, Motherson and KLT
from India. This represents new investments of R570 million and 350
jobs.
29
Trade, Investment & Exports

Facilitated the roll out of the Heineken Brewery and the Proctor and
Gamble and Kimberly Clark establishment of new manufacturing plants.

The annual Africa Dialogue Trade and Investment conference was also
held in Gauteng which brought potential investors from around the globe
i.e USA, Turkey, Iran, China, Pakistan, UAE, UK, India, Uganda,
Senegal, Mozambique, Ghana, Portugal, Zimbabwe and Namibia.

Facilitated South Africa’s participation at the 7th US Corporate Council
on Africa where decision-makers engaged on African policy matters as
well as measures for partnerships with the US and Africa.
30
Trade, Investment & Exports

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Under the Small Exporters Development Programme, 365 emerging
exporters were trained in partnership with Seda (target was 200)
Export Marketing & Investment Assistance (EMIA):
 Approved 508 projects, Sector Specific Assistance Scheme
(SSAS) has approved 18 projects and Capital Projects
Feasibility Programme (CPFP) has approved 5 projects.
183 new small exporters were assisted to promote their products in
international markets through missions to UK, Portugal, Brazil, Zambia,
Chicago, China, USA, Germany & Jamaica.
12 high quality trade lead bulletins were created and distributed to
(potential) SMME exporters to ensure that they have access to export
opportunities from abroad.
the dti established new economic offices as part of the South African
Missions in Harare, Zimbabwe; Kinshasa, the DRC; and Tehran, Iran.
31
Broadening Participation
Enterprise Development
 the dti finalised a policy proposal for preferential procurement from
SMMEs (of ten products)
 The SMME payment hotline was successfully launched in September
2009.
 SMME information toolkit agreement has been finalised and signed
between the dti and business partners
 Furthermore, the National SMME Directory has been finalised
incorporating SMME support programmes from the public, private
sector and donor funded programmes.
 To further strengthen support to SMMEs, the Centre of Excellence
for Entrepreneurship was launched in collaboration with Wits
Business School.
32
Broadening Participation
Co-operatives
 Legislative amendment of 2005 Cooperatives Act completed and
submitted to cabinet for approval.
 Notable success in the Cooperatives area was the establishment of
100
youth-owned
e-cooperatives
and
20
women
owned
cooperatives. In addition, they were assisted to obtain funding from
CIS.
 Cooperatives Development strategy approved by NEDLAC and will
be submitted to parliament for approval in the 2010/11 financial year.
33
Broadening Participation
Gender and Women’s Economic Empowerment
the dti’s Isivande Women’s Fund is now operational and has seen the
first approvals to assist women entrepreneurs especially those in rural and
peri-urban areas through an affordable and highly subsidized financial tool.
The roll-out of Bavumile programme has benefited 120 women in
Limpopo and North West in the current financial year.
Sawen has been strengthened to deepen the participation of women on
both the policy and development issues.
34
Broadening Participation
Enterprise Finance and Technology Support

Business Supplier Development Programme (BBSDP)
The programme has been redesigned to align financing with transformation objectives.
To this end the programme guidelines were amended to increase access of black
enterprises to the grant. Under the BBSDP 4008 enterprises (1602 were woman owned)
were assisted to procure business development services.

Cooperatives Incentive Scheme (CIS)
Two hundred and sixty four (246) co-operatives, mostly in rural provinces, were
supported and R34 million disbursed to acquire machinery and equipment as well as
working capital.

Small and Medium Enterprise Development Programme (SMEDP)
Performance requirements with regards to turnover, financial equity and
employment were relaxed for approved Small and Medium Enterprises
to assist them to cope with the negative effects of the recession.
35
Industrial Development
Enterprise Finance and Technology Support
 The Technology transfer programme supported 66 SMMEs to
acquire technology that will enhance the competitiveness of
their businesses. On quality, 1052 SMMEs have been trained
on the different quality standards, (ISO 9000, HACCP
and GMP).
 The TechnoGirl Program has benefited 10 schools in the
current year with 100 learners benefiting and the winning
schools being awarded high-tech prizes.
36
Industrial Development
Enterprise Finance and Technology Support

The Technology and Human Resources for Industry Programme
(THRIP)
Leveraged R227 million from the private sector for new technology
development and supported 298 enterprises (64% of which are SMME’s)
in 2009/10. This has resulted in 2187 students and 685 researchers
being supported.

The Support Programme for Industrial Innovation (SPII) Recorded
sales of R237 million, of which R103 million were export sales for new
products and processes. The programme provided 176 shop floor jobs
and 57 new projects were supported against a target of 80 projects

seda’s Technology Programme
Supported 29 incubators which resulted in the creation of 243 new
SMME’s , 675 SMMEs supported, (39% women and 90 % black owned)
and 6 778 jobs were created.
37
Broadening Participation
Enterprise Finance and Technology Support
 SSAS has approved 18 projects and CPFP has approved 5
projects.
 The Draft Human Capital Strategy Framework has also been
finalised and is ready for discussion with relevant stakeholders.
Communication & Marketing
 A successful marketing and communications campaign on
BBBEE was undertaken in all provinces which attracted 3200
business entities from different sectors.
38
Broadening Participation

The B-BBEE Advisory Council was launched in December 2009.

Verification regime being rolled out, with 35 accredited BEE Verification
agencies to date. A new framework to create more capacity in the
Verification space has been approved and ready to be implemented.

Seventeen district municipalities were supported to develop LED strategies.

Published the draft Preferential Procurement Regulations in partnership
with National Treasury to align PPPFA and BBBEE Act.

Three Equity Equivalent Investment Programs have been approved,
totaling R 500 million.
39
Regulation
Law Reform Processes Completed as follows:
 Completed 3 reform processes which culminated in the following
legislation signed by the President
 Consumer Protection Act 68 of 2008 to enhance the economic
welfare of consumers and confidence in markets.
 Companies Act no 71 of 2008 reduce regulatory burden and simplify
the registration process, with a key feature being the business
rescue and corporate governance provisions.
 Competition Amendment Act to strengthen the enforcement powers
of the competition authorities.
 The Intellectual Property Amendment Bill was also introduced to
Parliament and public hearings were expected to commence in May
2010 but delayed - The proposed Bill seeks to introduce changes to the
IP laws to protect indigenous/traditional knowledge.
40
Regulation
• Regulations were developed and published in the following
areas
– The Companies Act – parallel to this process, a Rectification Bill
on the Companies Act was initiated to correct grammatical and
syntax errors
– Regulations to give effect to the Consumer Protection Act for
initial consultation with stakeholders
– Control of liquor to ensure smooth application processes for the
World Cup 2010
– Unlawful selling of tickets specifically for the World Cup 2010 to
protect consumers
– Give effect to the Gambling Amendment Act that introduces the
regulation of interactive gambling
– To provide guidance for improved distribution of the National
Lottery Distribution Fund
41
Regulation
• Legislative/Policy Reviews were conducted in the following
areas:
– Estate Agency Affairs Policy Review to effectively address the
phenomenal growth of the industry, corrupt activities and transformation.
The Act has not had a significant review since its passing in 1976 and
serious gaps exist in regard to protection and redress to consumers
– National Lottery Policy Review was conducted in order to address gaps
and challenges that undermine the effective and optimal distribution of
funds to good cause, as well as governance and accountability
measures to enhance the integrity of the funding processes.
– Gambling Review Commission was established by Minister to review the
gambling industry with specific focus on the socio economic impact,
proliferation of gambling, the effect of technological development, as well
as the impact on the poor – the review commenced and the report has
since been delivered to the Minister and will be tabled in Parliament
42
Regulation
•
Research conducted and completed on:
– Intellectual Property covering aspects of access to medicine, access to
educational material, interface of IP and competition law, consumers and
IP and exceptions – the research will inform the Policy Review on
Intellectual Property
– Effect of advertising in the Gambling and Liquor Industries, specifically
looking at whether advertising increases liquor consumption or
stimulation of gambling.
– Greyhound/Dog Racing to look at the extent and prevalence of this
activity in South Africa – the findings will also form part of the Gambling
Review process.
– Shareholder Activism to assess legislation that enhances shareholder
activism in South Africa in comparison to other jurisdiction and the
importance thereof in increasing accountability and governance of
companies.
43
Regulation
•
Education and Awareness Activities as follows:
– More than 50 campaigns were conducted across the country on
consumer protection, company regulation, intellectual property and
liquor regulation - through workshops, presentations, outreach
programs, radio, print media and television – this aimed to simplify
legislation for the public to understand and to assist business in
compliance.
– A campaign on Liquor was launched by the Minister in Bloemfontein and
rolled out in provinces through the National Liquor Regulators Forum – 3
campaigns were conducted in conjunction with industry players reaching
1555 learners
– 5 campaigns were launched on Consumer Protection which included
radio adverts in all South African languages and a TV advert reaching 11
000 people directly and over 23 million indirectly – brochures developed
in 5 languages
– Various awareness campaigns on SMME opportunities for the World
Cup 2010 in provinces – with pamphlets distributed on IP matters
44
Regulation
•
Enforcement action through inspections were enhanced in the year
under review:
– 109 focused inspections were conducted at retail level across the
country for compliance with the Country of Origin Labeling Notice and to
deal with the influx of sub-standard goods that find their way into SA
shores
– 82 inspections were conducted on IP and Counterfeit Goods, with 32
search and seizures, in partnership with SARS and SAPS – Counterfeit
goods and pirated material continue to be marketed and sold in SA
despite laws prohibiting same – fines in the region of R12 million were
levied
– 106 inspections were conducted in conjunction with SAPS on liquor
regulations to enforce compliance with liquor regulations – with 137
compliance notices were issued in the year under review
45
Regulation
• Regulatory Agencies responsible for implementation
of the laws:
– The work of 8 regulatory agencies are reported
separately in the annual report of the agencies, with
notable challenges in debt counseling for NCR,
distribution of funds at NLB and procurement gaps at
CIPRO.
– Two new agencies being established i.e. Companies
and Intellectual Property Commission and National
Consumer Commission – process on track – business
cases developed and submitted to National Treasury
for approval and listing – the dti still awaits National
Treasury decision on Companies and IP Commission
46
Administration &
Co-ordination
Attract, develop & retain professional and skilled officials
 Strengthened the Human Resource Policy Framework
through the development and implementation of the Human
Resource Development Strategy, Human Resource Plan and
Revised Performance Management System.
 Reduced the baseline vacancy rate through the filling of key
and other positions.
 Sharpened the recruitment & selection process by cascading
competency assessment to middle management and
complementing interviews with written assignments based on
case studies.
 Appointment of board members to agencies
47
Administration &
Co-ordination
Empowerment of Women and People with Disability
 Women representation at senior management is at 42%, an
improvement from previous year’s 41% .
 The department has exceeded the 2% target for the employment
of People With Disabilities. Notable progress has also been
made to equip them with assistive devices in order to make their
work environment conducive.
Fraud & Corruption Prevention enhanced
 Ethics Management Framework adopted
 Implemented the revised fraud prevention plan
 Zero tolerance for fraud and corruption through decisive action
following disciplinary hearings
 DPSA: Minimum anti-corruption capacity audit (the dti came 2nd in
government with 86%, SARS had 87%)
48
Administration &
Co-ordination
Financial Management
 the dti’s sound financial management function has continued to
produce unqualified audit reports from the Auditor-General.
 The payment of service providers well within the 30 day period is
another indicator of the responsiveness of the department’s finance
unit.
Service Delivery Improvement
 A new Service Delivery Improvement Plan has been developed.
 ICT Infrastructure upgraded for a responsive network service.
49
Administration &
Co-ordination
Communication & Marketing
 Improvement in the relations with the media as a result of
improved turnaround times in response to media enquiries,
easy accessibility of the Minister, senior management and
departmental experts.
 Active engagement with the media resulted in six media site
visits to projects funded by the dti.
 the dti has started the process of revamping its website which
will be launched during the 2010/11 financial year.
 Taking the dti to the People
50
Administration &
Co-ordination
Intergovernmental and Stakeholder Coordination
• the dti is part of MINMEC which meets once a quarter to
coordinate work programmes
• Deputy Minister Ntuli’s provincial visits
• the dti is part of interdepartmental clusters (e.g. Economic,
International Relations, Governance)
• the dti interfaces regularly with business and labour
stakeholders via Nedlac and Industry/CEO forums with the
Minister
51
Provincial Spread
Broadening Participation – BBSDP & CIS
Provincial Spread
Gauteng:
North West:
BBSDP: 41.8%
BBSDP: 7.3%
CIS: 14%
Limpopo:
BBSDP:14.5%
CIS: 3%
CIS: 16%
Mpumalanga:
BBSDP: 6.0%
Northern Cape:
CIS: 4%
BBSDP: 2.0%
CIS: 10%
Kwa Zulu Natal:
BBSDP: 10.2%
CIS: 21%
Free State:
BBSDP: 5.2%
CIS: 1%
Western Cape:
BBSDP:7.4%
Eastern Cape:
CIS: 7%
BBSDP: 5.6%
CIS: 24%
52
Provincial Spread
Investment Incentives Uptake
Gauteng:
North West:
BPO:21%
BPO:3.5%
Film: 29%
Film: 3.2%
MIP: 27 %
MIP: 4 %
TSP: 22 %
Provincial Spread
Limpopo:
BPO: 3.5%
Film:0.8%
MIP: 5 %
TSP: 11 %
TSP: 12 %
Mpumalanga:
BPO:3.5%
Northern Cape:
Film: 3.5%
BPO: 3.5%
MIP: 3 %
Film:5%
TSP: 9 %
MIP: 2 %
TSP: 2 %
Kwa Zulu Natal:
BPO:21%
Film: 6%
MIP: 16 %
TSP: 9 %
Free State:
BPO: Zero
Film:0.3%
Western Cape:
MIP: 1 %
BPO:42.8%
Eastern Cape:
Film:49%
BPO: Zero
MIP: 28 %
Film:3.2%
TSP: 16 %
MIP: 13 %
TSP: 11 %
TSP: 9 %
53
Provincial Spread
Exports: EMIA
Provincial Spread
Gauteng:
North West:
EMIA:44.7%
Limpopo:
EMIA:0.3%
EMIA:0.3%
Mpumalanga:
EMIA: 2.9%
Northern Cape:
EMIA: 0.3%
Kwa Zulu Natal:
EMIA: 12.8%
Free State:
EMIA: 2.7%
Western Cape:
EMIA: 33.9%
Eastern Cape:
EMIA: 2.1%
54
Five Year Comparison of budget
vs Expenditure – R’000
7,000,000
6,000,000
Budget
5,000,000
Expenditure
4,000,000
3,000,000
Unspent
2,000,000
% Unspent
1,000,000
0
2005/06
2006/07
2007/08
2008/09
2009/10
Budget
3,907,420
3,942,028
5,479,433
5,126,893
6,402,076
Expenditure
3,631,304
3,804,720
5,295,250
5,057,064
6,237,955
276,116
137,308
184,183
69,829
164,121
7.07%
3.48%
3.36%
1.36%
2.56%
Unspent
% Unspent
55
Categories against which the
department’s expenditure had been
incurred
2009/10
R'000
2008/09
%
R'000
%
Total Allocated Budget
6,402,076
Less: Payments to agencies
1,440,308
22.5%
1,269,549
24.76%
445,577
7.0%
383,077
7.47%
3,762,528
58.8%
2,802,962
54.67%
Incentives capital
1,407,324
22.0%
983,507
19.18%
Other incentives
2,355,204
36.8%
1,819,455
35.49%
503,661
7.9%
524,101
10.22%
Less: Other Payments
60,230
0.9%
55,298
1.08%
Less: Capital
25,599
0.4%
22,077
0.43%
Total Unspent
164 121
2.56%
69,829
1.36%
Less: Compensation
Less: Incentives
Less: Goods & Services
5,126,893
56
Challenges
 Although the department has made achievements against
planned targets, the following were some of challenges
experience during the reporting period:
 The reorganisation of government entailed that many
departments had to review key areas of work;
 The effects of the recession;
 The need to enhance capacity, both financial and human
resources to deliver on the outcome of decent employment
through inclusive growth
57
THANK YOU
58