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Explore the economic evolution of Africa and its potential for growth; learn about regional trade agreements and workforce development.
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DIRCO2013/2014 Annual Report Presentation to the Portfolio Committee on International Relations and Cooperation 16 October 2014
Introduction • This Annual Report concludes the Medium Term Strategic Framework 2009-2014 and the Delivery Agreement for Outcome 11 (2009-2014) • Since 2000, there has been significant and sustained growth across the continent, driven, in part, by the prolonged commodity boom and growth in retail, agriculture, services, transport and telecommunications • Political conflicts have declined, economic growth is robust and economic management, governance and political stability have improved • All of the above have contributed to a marked shift in global perception of the continent, from pessimism to a sense of enormous potential, with both traditional and new economic powers clamouring to offer their partnership. The continent has been hailed as the next frontier for opportunity and a potential global growth pole • This evolving order presents Africa with opportunities that, if met by effective interventions, could lead to substantial socio-economic and political transformation on the continent. The key challenge for African countries today is how to design and implement effective policies to promote industrialization and economic transformation
Introduction (cont) • Increased efforts are being directed towards integrating the various economies in Africa through, for example, the Common Market of Eastern and Southern Africa (COMESA), East African Community (EAC) and Southern African Development Community (SADC) Tripartite Agreement • The African Union’s (AU) New Partnership for African Development (NEPAD) is the primary vehicle through which the AU is implementing its socio-economic development agenda. In this regard, the shift from a poverty-reduction paradigm to a growth-expansion paradigm is key in consolidating the African Agenda and forms a central part of the strategic framework of NEPAD. • Considerable progress is being made in various AU/NEPAD programmes, such as the Programme for Infrastructure Development in Africa, the Presidential Infrastructure Championing Initiative and the Comprehensive Africa Agriculture Development Programme • Africa has some of the World’s fastest growing economies over the last decade, led by Angola, Nigeria, Ethiopia, Mozambique, Ghana
Introduction (cont) • Factors contributing to growth include global demand for commodities, improved regulatory frameworks in countries and growth in the services industry, e.g. ICT and business technology • Consumer spending is anticipated to rise from USD 860 billion in 2008 to USD 1.4 trillion in 2020 ( McKinsey Global Institute) • Rapidly growing market for air travel • Value of continental trade has increased from US$27.9 billion in 1995 to US$148.9 billion in 2012 • Africa now has the fastest-growing middle class in the world. Stable middle class currently at 123 million, 13% of the total African population. By 2060, the number of middle-class Africans will grow to 1.1 billion (42% of the predicted population) (African Development Bank);
Introduction (cont) • The continental strategy of pursuing intra-regional trade by means of consolidating Regional Economic Communities (RECs), through regional integration, paying dividends with COMESA (East Africa) enjoying the highest level of intra-regional trade (23.1%), followed by SADC (16.4%) and ECOWAS (14.2%) • Improved intra-regional trade has become a primary focus area for all Regional Economic Communities (RECs)
Share of Exports from 2000-2014 …..the share of exports to EU has been falling from 33% in 2005 to 23% currently. The EU is traditionally major export destination for manufactured and agricultural exports Increased focus on regional market will increase manufactured exports … increased share to China is mainly in commodities
Tourism arrivals:1994-2013(source: SA Tourism 2014)(Total arrivals in millions)
Programme 1 : Administration • Human Resources • Corporate Services • Diplomatic Training, Research and Development (DTRD)
HUMAN RESOURCES • Employment and vacancies by salary band as at 31 March 2014 • Employment Equity status as at 31 March 2014 • Mitigation For Inequalities • Human Resources Management and Development • Organisational Functionality Assessment (OFA)
EMPLOYMENT AND VACANCIES BY SALARY BAND AS AT 31 MARCH 2014 # Number of posts filled excludes the three Political Officer Bearers and 39 Interns *The vacancy rate of 13.3% is calculated disregarding the 66 employees carried additional to the establishment (these are employees who are either on leave without pay to accompany their spouses/partners whilst stationed abroad and Heads of Mission in transit). Taking this 66 employees additional to the establishment into consideration, the vacancy rate is 11.8 %.
EMPLOYMENT EQUITY STATUS 31 MARCH 2014 • FEMALE SMS MEMBERS = 38% PEOPLE WITH DISABILITIES = 1.8% • THE ABOVE TABLE REFLECTS THE NUMBER OF 2373 EMPLOYEES WHICH EXCLUDES THE 3 POBS AS WELL AS THE EMPLOYEES EMPLOYED ADDITIONAL TO THE ESTABLISHMENT, I.E 39 INTERNS • ELEMENTARY OCCUPATIONS ARE EMPLOYEES WHO ARE MACHINE OPERATORS, DRIVERS, CLEANERS ETC.
MITIGATION FOR INEQUALITIES • The Department has developed an Employment Equity Plan (EE Plan) with Affirmative Action Measures to address the imbalances • The Departmental recruitment processes including job advertisements take into consideration the EE Targets stipulated in the EE Plan • Quarterly and Annual Reports are developed and presented to management to inform them of the EE gaps within their respective branches • The Departmental Employment Equity Committee monitors implementation of the Employment Equity Plan to ensure transformation of the department in line with the EE requirements
HUMAN RESORCES MANAGEMENT AND DEVELOPMENT • The performance management and development system was successfully implemented. A total of 2 429 employees file their Performance Agreements which is 99% (including SMS members). A total of 2 295 employees’ Performance Appraisals were conducted which is 95%(including SMS members). • The Employee Wellness Centre provided support services to 585 referrals within 24-hour of receipt to all DIRCO employees and their family members at Head Office and Missions. • The employer-employee relationship in the Department remains a challenge. Of the 16 disciplinary cases that were initiated during the period under review, only 50% were finalised within the prescribed period of 90 days. With regard to grievances, of the 47 cases lodged, only 9% were finalised within the prescribed 30 days. The capacity of management to address grievances as well as handling disciplinary cases is still a major challenge. The Departmental Bargaining Chamber is functioning well although there is still a challenge in respect of scope and jurisdictional matters.
ORGANISATIONAL FUNCTIONALITY ASSESSMENT (OFA) • The current DIRCO structure was approved on 12 December 2008. Due to the expansion in DIRCO’s mandate, a need arose to review the existing structure • During the 2013/14 Financial Year DIRCO piloted the Organisational Functionality Assessment (OFA) toolset in collaboration with the DPSA aimed at diagnosing organisational challenges and improve functionality of departments. • As a result of the outcome of the OFA, the Department embarked upon an organisational structure review. • The proposed draft structure has been finalised and submitted to the Minister of Public Service and Administration for concurrence before implementation in terms of the applicable legislation.
Corporate Services • The 2013/14 budget was allocated to all the programmes; however the department overspent its appropriation by more than 2% due to the foreign exchange fluctuation. • The 2013/14 Annual Financial Statements were prepared and submitted to Auditor General and National Treasury. The department received a qualified audit opinion due to repeated findings on management of assets. • The department submitted a demand management plan as per National Treasury’s requirement. • Regarding payment of service providers within 30 days, DIRCO significantly improved from 72% in the 2012/13 Financial Yearto 85.2% in 2013/14 • Renovations and upgrading of Chancery (Washington) and Official Residence (Tokyo) were completed; • 183 vetting fieldwork investigations completed • 36 327 documents were legalised within the committed time frame which amounted to a 24% increase; and • 98% of global network availability was achieved.
Diplomatic Training, Research and Development (DTRD) • DIRCO continued to allocate a substantial portion of its budget to reskill its foreign service to advance SA’s national interest, with particular attention to Economic Diplomacy, which has resulted in increased investment, trade, joint ventures etc. for the country • Pursuant to its objective to advance the African Agenda, the department provided training to 105 senior diplomats, mainly from Africa, on Post-Conflict Reconstruction and Development and Conflict Resolution, Negotiation, Mediation and Constitution Drafting. • DIRCO offered the following programmes to reskill its diplomats: 110 training programmes in line with the Workplace Skills Plan, 33 language training programmes (French, Spanish, Portuguese, Arabic and English) to equip officials with the requisite language skills to enhance their participation in global affairs 88 protocol and etiquette training programmes for the three spheres of government
Diplomatic Training, Research and Development (DTRD)(cont) • In order to improve the department’s analytical and research capabilities and to assist officials in taking informed positions on global issues, the Policy Research and Analysis Unit (PRAU) arranged 35 stakeholder engagements, briefing sessions and workshops • It also produced the following 4 research papers: - Discussion Paper: A South African Strategy on Economic Diplomacy - Revised Chapter Seven of the National Development Plan - South Africa’s Participation in CIVETS+/SSDCD – a Strategic Approach for Engagement in a Changing Global Environment - South Africa-Nordic : Proposal for a Roadmap to a future Strategic Partnership
Detail per programme 1 - ADMINISTRATION for the year ended 31 March 2014
Programme 2 : International Relations Structured Bilaterals • The department is the main coordinator of SA’s structured bilaterals, which have become one of the main instruments to advance South Africa’s national priorities, inclusive of increasing value-added exports, attracting foreign direct investment into priority sectors, promoting inbound tourism and seeking development cooperation opportunities abroad • During the reporting year, SA advanced our national priorities, the African Agenda and the Agenda of the South through close to 50 Structured Bilateral Mechanisms • BNCs have been established with regional countries, inter alia, Botswana, DRC, Namibia, Tanzania and Mozambique, to strengthen bilateral relations and to support greater regional integration
Programme 2 : International Relations Summits SA hosted: • The 6th SA-EU Summit in Pretoria on 18 July 2013 • The Informal Consultations of Heads of State and Government on the African Capacity for Immediate Response to Crises (ACIRC) in November 2013, and the • SADC-International Conference on the Great Lakes Region (ICGLR) Summit in November 2013 SA participated in: • International Contact Group on Central African Republic (CAR) held in Brazzaville: May 2013 and • Donors' Conference on the African-led International Support Mission in the Central African Republic (MISCA) held in Addis Ababa: 1 February 2014
Programme 2 : International Relations International Engagements The scope and depth of South Africa’s bilateral relations are also mirrored by the large number of high-level incoming and outgoing visits facilitated by the department during the course of the reporting year Africa • The branch arranged 12 incoming and outgoing visits from and to the region Americas • There were 9 incoming and outgoing visits from and to the region during the period under review Asia and the Middle East • The branch arranged 9 incoming and outgoing visits from and to the region Europe • The branch was involved in preparations for 10 incoming and outgoing visits from and to the region
Programme 2 : International Relations • The outcome of these bilateral engagements included the signing of Agreements and MoUs, such as: - the Grand-Inga Hydro Power Project, - the 2nd Phase of the Lesotho Highlands Water Project; and - the JointPermanent Commission on Defence and Security with Zimbabwe on the purpose of cross border and regional security which leads to opportunities for job creation, skills development and vocational education and training • The concept was established of featuring SA in the annual calendar of priorities of foreign countries, such as the successful “SA Seasons” in France and the present “SA in China”, that also coincides with the 15 year anniversary of the establishment of formal diplomatic relations
Programme 2 : International Relations • SA continued to advocate for the seeking of a permanent resolution to the conflict in Palestine, as well as supporting the inalienable right of the Saharawi people to self-determination and independence. • South Africa continued to play a leading role with regard to the implementation of the SADC Roadmap for Madagascar’s return to constitutionality, that eventually led to new elections in Madagascar in late 2013 and the installation of a democratically elected Government • President Zuma Appointed Deputy President Ramaphosa as Special Envoy to South Sudan and Sri Lanka to foster peace and reconciliation in those countries • Presidential Envoys travelled from and to the East African region (Uganda, Kenya and Burundi) during 2013/14 so as to update President Zuma on the political, economic, and security situation in the Region
Programme 2 : International Relations • Contributing towards the national priority of creating jobs and decent work, DIRCO and its Missions undertook economic diplomacy activities to increase value-added exports, attract foreign direct investment to priority sectors and to promote tourism, thereby reducing poverty and underdevelopment • DIRCO, in conjuction with the dti and other government departments, achieved the following: • 154 Trade and Investment Seminars • 57 engagements with Chambers of Commerce • 72 engagements with targeted Government Ministries and potential investors
Detail per programme 2 – INTERNATIONAL RELATIONS for the year ended 31 March 2014
Programme 3: International Cooperation Global System of Governance: UN General Assembly (UNGA) • SA contributed to the reshaping of the negotiations on the post-2015 development agenda & co-facilitated with Ireland the UN High Level Event on the MDGs in September 2013 in New York. The outcome of the High Level Event determined that: • Member States will decide on the Development Agenda beyond 2015 in an intergovernmental negotiations process that will commence at UNGA69 in September 2014; and • The Development Agenda will build on the MDGs –”unfinished business” and all the Rio Principles will be followed, which includes Common but Differentiated Responsibilities (CBDR) • At UNGA68, SA initiated the resolution on the Proclamation of the International Decade for People of African Descent in the Diaspora. The Working Group is one of the follow-up mechanisms of the World Conference Against Racism, Racial Discrimination, Xenophobia and Related Intolerance (WCAR), hosted in Durban in 2001. SA, in its capacity, both as host of the WCAR and lead negotiator for the racism issue at the level of Geneva and New York, has ensured that the outcomes of the WCAR are followed up, including a recommendation for the proclamation of the International Decade of People of African Descent, which was subsequently done by UNGA
Programme 3: International Cooperation UN General Assembly (UNGA) (cont) • South Africa continued in partnership with Brazil, Ireland, Mexico, Egypt and New Zealand to push for the implementation of Nuclear Disarmament Commitments. In terms of development, the balanced implementation of the NPT under its 3 mutually-reinforcing pillars is critical given the selective focus of the nuclear-weapon States and some western countries (technology-holders) on the non-proliferation provisions of the NPT which has negatively impacted on the inalienable right of States to access, develop and use advanced nuclear technology for peaceful purposes, including for nuclear power generation and other applications in the area of human health, agriculture and food production etc. • Given South Africa’s unique position as the first country to have voluntarily dismantled its nuclear weapons programme, it has assumed a critical leadership and bridging role in this area • South Africa’s status as a responsible producer, possessor and trader of defence-related products and advanced technologies was reinforced when SA signed the Arms Trade Treaty in September 2013
Programme 3: International Cooperation (cont.) UN General Assembly (UNGA) – Cont. • SA continued to lead in the global dialogue on Cyber security and Cybercrime by advocating for an international, legally binding instrument for Cybercrime at the UN. The adoption of the Agreement will enhance SA’s information security • SA, as Chair of the Kimberly Process, tabled a UN resolution that was adopted in December 2013 on the Role of Diamonds in Fueling Conflict: Breaking the link between the Illicit transaction of Rough Diamonds and Armed Conflict as a Contribution to Prevention and Settlement of Conflicts, which is one of our key foreign policy principles UN Economic and Social Council (ECOSOC) • Continuing its participation in the leadership of global governance structures, 2013 marked the first year of SA‘s three year membership of ECOSOC, which allowed for the follow-up on the outcomes of all major UN Conferences in the economic, social and environmental fields, including the post-2015 development agenda • South Africa played a leading role in the 20-year review of the Programme of Action of the International Conference on Population and Development (ICPD) by promoting comprehensive Sexual and Reproductive Health and Rights for all andaddressing gender inequalities, lack of empowerment of women and girls, and gender-based violence
Programme 3: International Cooperation UN Economic and Social Council (ECOSOC) (cont) • In line with our domestic priorities, SA participated in the 58th Session of the Commission on the Status of Women as part of its continued drive to advance gender equality and empowerment of women • SA continued to provide a leadership role in the United Nations Framework Convention on Climate Change (UNFCCC) on the basis of the Durban Plan for Enhanced Action (ADP) to advance national and continental interests and particpated in COP 19/CPM9 where it was agreed to set up a new international mechanism to help developing countries to deal with extreme and slow-onset climatic conditions Human Rights Council (HRC) • Since its return to the HRC in November 2013 (which means that SA has the right to draft, present, promote and vote on Resolutions), SA contributed to the debates onthe Maximum Protection of Human Rights and addressing violations of such rights, which included the provision of adequate remedies in areas such as human rights defenders, peaceful protests, and right to adequate housing and non-discrimination • SA continues to pursue the promotion and protection of all human rights and fundamental freedoms through its participation in the sessions of the HRC where it supported and negotiated various resolutions
Programme 3: International Cooperation International Law • Pursuant to its national interest, SA submitted its extended Continental Shelf claim to the United Nations which, if successful, will give it exclusive jurisdiction over marine territory and resources that spans more than 1.9 million square kilometres. This will enhance SA’s “Blue Economy” strategy • DIRCO submitted 1343 written legal opinions and certified 116 international agreements for the President’s authorization Organisation for the Prohibition of Chemical Weapons (OPCW) • South Africa played a key role in the OPCW in relation to the destruction of chemical weapons in Syria Group of 20 (G20) • In the G20, South Africa Co-chaired the Development Working Group (DWG) which continued to address development bottlenecks and to assist low income countries to achieve growth
Programme 3.2 : Continental Cooperation AU • Celebrated Golden Jubilee of the Organisation of African Unity/African Union (OAU/AU) from 24-27 May 2013 • At the 22nd Ordinary Session of the Assembly of the African Union, SA contributed to development of a common African position on post-2015 Agenda and contributed to the approval of AU Agenda 2063 • Participated in the Extraordinary Session of the Assembly of the AU on Africa’s relationship with the International Criminal Court (ICC) and the AU decision to fast-track the mandate of the African Court on Human and People’s Rights • Assisted in hosting 50th Anniversary of Pan African Women Organisation (PAWO) in contribution of the elimination of discrimination at DIRCO on 30 and 31 August 2013
Programme 3.2 : Continental Cooperation • South Africa participated in the SADC Election Observer Missions to the Zimbabwe Harmonised Elections (July 2013), Swaziland (September 2013), and Madagascar (October and December 2013). • South Africa continued to provide logistical and substance support to the Pan African Parliament (PAP) Sessions which were held in Midrand, South Africa in May 2013 and March 2014 respectively. • South Africa participated in the 20th Summit of the African Peer Review (APR) Forum in Addis Ababa on 29 January 2014. Key outcomes included the accession of the Republic of Equatorial Guinea to the APRM process and South Africa presenting its Third National APRM PoA Implementation Report. Since its inception, 34 African countries have acceded to the APRM, while reviews have been completed for 17 of those • The country participated in the 53rd Session of the African Commission on Human and Peoples’ Rights (ACHPR) held in the Gambia in April 2013. At this session, South Africa presented a National Statement on Human Rights issues in the country.
Programme 3.2 : Continental Cooperation (cont.) Peace and Security • SA hosted the Informal Consultations of Heads of State and Government on the African Capacity for Immediate Response to Crises (ACIRC) at DIRCO in November 2013, that culminated in the January 2014 AU Assembly decision to operationalise ACIRC • SADC-International Conference on the Great Lakes Region (ICGLR) Summit held at DIRCO in November 2013, where the report of the Joint SADC/ICGLR Ministerial Meeting on the Implementation of the Framework for Peace, Security and Cooperation for the DRC and the Region, was adopted • In January 2014 the AU Summit elected SA to the African Union Peace and Security Council for a two year-term, with effect from 1st April 2014 • Facilitated mediation efforts that resulted in elections in Zimbabwe and Madagascar. • Continued engaging with the Parties in DRC, CAR and the South Sudan
Programme 3.2 : Continental Cooperation (cont.) New Partnership for Africa’s Development (NEPAD) • President Zuma provided update report on progress made to NEPAD Heads of State and Government Organising Committee (29 January 2014) as Chair of Presidential Infrastructure Championing Initiative (PICI) and champion of the North-South Corridor. • In support of mobilizing strategic partners to help scale up and accelerate implementation of AU/NEPAD development priorities, objectives, programmes and projects: • Participated at the 5th TICAD Summit held in Yokohama, Japan from 1-3 June 2013, resulting in partners pledging USD32 billion, among other outcomes. SA participated in pre-Summit negotiation process. • As Co-Chair of FOCAC, SA participated in the 4th FOCAC Foreign Minister Political Consultation in New York (23 September), which reinforced implementation modalities under Beijing Action Plan. • Participated in 3rd Africa-Arab Summit in Kuwait (19-20 November 2013) and played a role in pre-Summit negotiation process, which led to concrete pledges from Kuwait and Saudi Arabia, among others.
Programme 3.2 : Continental Cooperation • South Africa participated in the SADC Election Observer Missions to the Zimbabwe Harmonised Elections (July 2013), Swaziland (September 2013), and Madagascar (October and December 2013). • South Africa continued to provide logistical and substance support to the Pan African Parliament (PAP) Sessions which were held in Midrand, South Africa in May 2013 and March 2014 respectively. • South Africa participated in the 20th Summit of the African Peer Review (APR) Forum in Addis Ababa on 29 January 2014. Key outcomes included the accession of the Republic of Equatorial Guinea to the APRM process and South Africa presenting its Third National APRM PoA Implementation Report. • The country participated in the 53rd Session of the African Commission on Human and Peoples’ Rights (ACHPR) held in the Gambia in April 2013. At this session, South Africa, presented a National Statement on Human Rights issues in the country.
Programme 3.2 SADC • Responding to the need to place SA citizens in regional, continental and international organisations, Dr Thembinkosi Mhlongo was appointed as Deputy Executive Secretary responsible for Regional Integration at the SADC Secretariat • The 34th SADC Summit was held in Malawi from 10 to 18 August 2013. Key outcomes include an update on the Mid-term review of the Regional Indicative Strategic Development Plan (RISDP), the decision to negotiate a new Protocol on the SADC Tribunal and to address remaining outstanding technical issues on the establishment of the SADC Regional Development Fund (RDF) • As part of SA’s commitment to regional integration, participated at two COMESA-EAC-SADC Tri Partite Trade Negotiations Forums
Programme 3.3 South South Cooperation • As Chair of BRICS, SA ensured the full implementation of the eThekwini Declaration and the outcomes of the eThekwini Action Plan following the successful hosting of the Fifth BRICS Summit, March 2013 • Participated at the 13th Meeting of the IORA, November 2013 where SA tabled its intention to serve as vice chair of IORA from 2015-2017 and chair from 2017-2019 • Continue to participate in the meetings of the Coordinating Bureau of the NAM to enable SA to contribute to the development of common positions of the South and continue to engage the G77 + China to the extent that SA will be Chairing in 2016
Programme 3.4 North South Cooperation • Participated in the 12th SA-EU Ministerial Political Dialogue held in Brussels, June 2013, in the context of deepening the SA-EU Strategic Partnership • Development between SA and the EU further expanded to now include the establishment of the Human Rights Dialogue Forum and the creation of a Maritime Security Sub-committee • Hosted the 6th SA-EU Summit in Pretoria which resulted in the Agreement between SA and the European Atomic Energy Community for Cooperation and the Peaceful use of Nuclear Energy and a partnership in the area of rural electrification, with an initial target of 300 000 households in remote areas of SA
Detail per programme 3 – INTERNATIONAL COOPERATION for the year ended 31 March 2014
Programme 4 Public Diplomacy • To enhance South Africa’s foreign policy objectives and to promote a positive image of the country, both domestically and abroad, DIRCO launched a 24-hour online radio station, Ubuntu Radio, on 17 October 2013, which can be accessed worldwide • As part of domesticating SA’s foreign policy and understanding the need of ordinary South Africans, DIRCO organised 21 Public Participation Programmes to intensify its communication with ordinary citizens throughout the country • Diplomatic Chat, an in-house networking session aimed at bringing together various stakeholders within the international relations field was launched • Three Ambassador’s Forum events, attended by members of the resident Diplomatic Corps, were held where various topical issues, such as the National Development Plan, were discussed • The print run of the quarterly magazine, “Ubuntu” increased from 5 000 to 8 000 during the year • The introduction of various platforms and tools such as the “Director-General’s Forum (DGF) News” assists in informing employees of decisions taken in management meetings
Programme 4 State Protocol • Provided professional State Protocol Services at major events such as: SA-EU Summit SADC/ICGLR Summit BRICS NSA Ministerial Meeting State Funeral of Former President Nelson Mandela • New diplomatic offices established in RSA: Guyana, Haiti, Khazakstan and African Tax Forum. The establishment of these four offices increased foreign representation in SAto 326, second only to Washington, DC • Provided protocol services for: 9 international conferences 28 555 dignitaries at the three State Protocol Lounges 107 incoming and 95 outgoing visits for Principals 2 972 protocol ceremonial and hospitality services 214 incoming and outgoing international visits for provincial and local governments
FOREIGN REPRESENTATION IN RSA 2013/2014 326
Detail per programme 4 – PUBLIC DIPLOMACY AND PROTOCOL for the year ended 31 March 2014
Detail per programme 5 – INTERNATIONAL TRANSFERS for the year ended 31 March 2014