1 / 45

Medium Term Strategic Framework 2009 - 2012

PRESENTATION TO THE SELECT COMMITTEE ON TRADE AND INTERNATIONAL COOPERATION. Medium Term Strategic Framework 2009 - 2012. 26 June 2009. 1. CONTENTS. the dti’s Vision, Mission & Strategic Objectives Overview of the Economy Overview of the dti Strategy – Key Interventions

cree
Download Presentation

Medium Term Strategic Framework 2009 - 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PRESENTATION TO THE SELECT COMMITTEE ON TRADE AND INTERNATIONAL COOPERATION Medium Term Strategic Framework 2009 - 2012 26 June 2009 1

  2. CONTENTS the dti’s Vision, Mission & Strategic Objectives Overview of the Economy Overview of the dti Strategy – Key Interventions Allocated resources Challenges Annexure Additional information on institutional mechanisms 2009 - 2012 MTSF 2

  3. VISION 2009 - 2012 MTSF The Department of Trade and Industry’s vision is of a South Africa that has a vibrant economy, characterised by growth, employment and equity, built on the full potential of all citizens. To this end the dti seeks to be an outwardly focussed, customer-centric organisation.

  4. MISSION 2009 - 2012 MTSF • Provide leadership to the SA economy through its understanding of the economy, its ability to identify economic opportunities and potential, and its contribution to government’s economic priorities. • Act as a catalyst for the transformation and development of the economy and respond to the challenges and opportunities of the economic citizens, in order to support the government's economic goals of growth, employment and equity to support the government’s strategic objectives. • Provide a predictable, competitive, equitable and socially responsible environment for investment, enterprise and trade.

  5. STRATEGIC OBJECTIVES 2009-2012 MTSF • Promoting the co-ordinated and accelerated implementation of the government’s economic vision and priorities; • Promoting direct investment and growth in the industrial and services economy, with particular focus on employment creation; • Raising the level of exports and promoting equitable global trade; • Promoting broader participation, equity and redress in the economy; and • Contributing to Africa’s development and regional integration within the New Partnership for African Development (NEPAD).

  6. 2009-2012 MTSF OVERVIEW OF THE ECONOMYthe dti’s Challenges and Response 6

  7. OVERVIEW OF THE ECONOMY 2009 - 2012 MTSF • The current economic environment is shaped overwhelmingly by the prevailing global economic crisis. • While the crisis first appeared in the financial sector, it has now become a deep real economy and jobs crisis, which threatens to severely damage economies in the developed and developing world • Domestic economy is in recession GDP contracted by 6.4% in Q1 2009, on an annualised basis • The crisis threatens South Africa’s industrial base: • - Manufacturing production decreased by 11,7% in March ‘09 • - 23 of 39 industrial subsectors experienced output declines, including in basic steel products (-24,1%), autos (-26.8%), chemicals (-8,8%) 7

  8. OVERVIEW OF THE ECONOMY 2009-2012 MTSF • Labour-intensive sectors (wood products, leather and clothing & textiles) also declined • Feb’09: manufacturing capacity utilisation dropped from 84,6% to 78,6% • Mining production decreased by 12.8% in March 2009. The decline was driven by PGM (-17,1%) and diamonds (-52,2%) • Company liquidations in Q1 2009 increased by 46,7% (from 687 to 1008) and Quarterly Labour Force Survey indicated that a total of 208 000 South Africans lost their jobs between Q1 2009 and Q1 2008 8

  9. OVERVIEW OF THE ECONOMY Response to the Crisis 2009 - 2012 MTSF • On February 19 2009, government and social partners in Nedlac agreed on a “Framework for SA’s response to the international crisis” • The framework outlines:- • Defensive measures aimed to protect our economy and society in the face of the economic crisis. The cluster, together with our social partners, need to urgently expedite implementation of the framework agreement • Transformative measures to deal with the long standing structural economic problems • Specifically the focus areas will be: • Maintaining high levels of public investment in infrastructure to support private and public job preservation and creation • Deploying macroeconomic policies in combination and aggressively, where required, to address the economic crisis 9

  10. Utilising industrial and trade policies to rebuild local industrial capacity and avoid the erosion of the country's manufacturing base Utilising a combination of measures on public employment, private sector initiatives, including training, to avoid massive job loses Scaling up social interventions to address the jobs challenge and ensure social protection Leveraging DFI and SOEs more effectively OVERVIEW OF THE ECONOMY Response to the Crisis 2009-2012 MTSF 10

  11. OVERVIEW OF THE ECONOMYthe dti response to the crisis 2009-2012 MTSF • For its part in the response, the dti will focus on: • Improving access to finance; • Addressing under invoicing, dumping and illegal imports; • Leveraging the capital expenditure programme and broader government procurement to stimulate demand and support the local manufacturing base; • Improving competitiveness of local industries by intensifying awareness campaigns on the suite of incentives on offer; as well as strengthening the fight against cartels; • Addressing growing global protectionism through active participation in trade negotiations; and • Promoting diversification of South Africa’s exports markets to emerging economies which are still recording positive growth and are forecast to recover earlier from the crisis.

  12. 2009-2012 MTSF Overview of the dti’s strategyKey interventions over the MTSF period 12

  13. KEY INTERVENTIONS 2009 - 2012 MTSF The work of the dti is organised in terms of the following themes:- • Industrial development; • Trade, Investment and Exports; • Broadening participation; • Regulation, and • Administration and co-ordination 13

  14. MISSION 2009 - 2012 MTSF The work of the dti is organised in terms of the following themes:- • Industrial Development – development of policies & strategies that promote sector competitiveness, growth, job creation & efficient administration of support measures • Trade, Investment and Exports- strengthening trade & investment links with key economies; & fostering African development, including through regional and continental integration & development co-operation in line with the New Partnership for African’s Development (NEPAD) • Broadening Participation- developing interventions & strategies that promote enterprise growth, empowerment & equity • Regulation- development & implementation of coherent, predictable & transparent regulatory solutions that facilitate easy access to redress and efficient regulatory services for economic citizens. • Administration and Co-ordination - effective co-ordination of departmental programmes and provision of necessary support for efficient implementation.

  15. KEY INTERVENTIONS INDUSTRIAL DEVELOPMENT 2009 - 2012 MTSF • Grow and diversify manufacturing and tradable services by facilitating and monitoring the implementation of the industrial policy action plan over the next 3 years. • Foster an enabling environment for industrial upgrading and support for sustainable development by developing and implementing a technical infrastructure strategy (including standards, quality, assurance, accreditation and metrology). The agencies such as South African Bureau of Standards (SABS), National Metrology Institute of South Africa (NMISA), South African National Accreditation System (SANAS), National Regulator for Compulsory Specifications (NRCS) • Strengthen regional industrial development and cooperation by collaborating with regional economic communities to harmonise business laws and develop strategies on continental norms for agricultural, industrial and environmental standards 15

  16. KEY INTERVENTIONS INDUSTRIAL DEVELOPMENT 2009 - 2012 MTSF • Providing following incentives to support, enterprise development, competitiveness, investment, job creation & exports • Export market and investment assistance programme • Business process out-sourcing and off-shoring • Black business supplier development programme • Enterprise development programme • Enterprise investment programme • Co-operatives incentive scheme • Critical infrastructure programme • Tax incentive • Automotive Investment Allowance • Amend incentive rules to accommodate approved firms in distress • Review industrial financing policy framework • Utilisation of the COEGA, East London & Richard Bay IDZs to attract new foreign & local investment and the creation of jobs 16

  17. KEY INTERVENTIONS INDUSTRIAL DEVELOPMENT 2009 - 2012 MTSF • Develop new institutional, governance and financing framework for IDZs • Support industrial development and retention jobs by leveraging government procurement through the national industrial participation programme • Respond to the impact of climate change by developing and implementing an industrial climate change response plan and launching cleaner production initiatives. • Improve administrative efficiency and improve turnaround times on project approvals and claims payments & make administrative requirements for incentives more user friendly • Implement a monitoring and evaluation system to: • Assess the impact of incentives • Continuously evaluate alignment with NIPF priorities 17

  18. KEY INTERVENTIONS INDUSTRIAL DEVELOPMENT 2009 - 2012 MTSF • Increased reliance for industrial financing will be placed on the IDC in this area of work, particularly with respect to addressing the current economic crisis • To increase its impact the IDC will continue with the establishing its presence in every province & to more effectively serve clients in them 18

  19. KEY INTERVENTIONS TRADE, INVESTMENT & EXPORTS 2009 - 2012 MTSF • Manage South Africa’s integration to global economy to explicitly support industrial development objectives and create conditions to facilitate export of higher value added goods • Intensify work programme to deepen links with dynamic and still growing economies of the South – China, India, Brazil • Consolidate trade and investment relations with countries of the North (sources of investment, trade, technology) including through continued engagement with EU under the TDCA/EPA and with the US under AGOA • Ensure compliance with international non-proliferation treaties by monitoring production and trade in relevant industries. • Conclude bilateral trade and investment agreements and MoUs 19

  20. KEY INTERVENTIONS TRADE, INVESTMENT & EXPORTS 2009 - 2012 MTSF • Strengthen continental integration and development through negotiated frameworks in the AU and NEPAD • Support development in Africa at bilateral level by building investment, trade and infrastructure programmes, including Spatial Development Initiatives (SDIs) • Continued importance of regional markets and integration, but we need to rationalise integration agenda in SADC around FTA and in SACU due to EPA • Develop and implement work programme for strengthened economic links under ANSA Framework (Angola, Namibia and South Africa) built on SDIs • Advance a developmental outcome in the Doha Round to protect industrial and employment objectives 20

  21. KEY INTERVENTIONS TRADE, INVESTMENT & EXPORTS 2009 - 2012 MTSF • Conclude PTA negotiations with India • Develop and advance national positions on Trilateral FTA with SADC-EAC-COMESA • Conclude trade and investment policy reviews • Promoting awareness of investment opportunities in South Africa through international invest. Conferences and pavilions, ministerial, presidential & technical missions • Improve the capacity of new exporters by training small exporters, identifying customers & distribution of publications • Promote South African products in targeted high growth market by conducting international trade initiatives, pavilions & funding trade missions amongst others through the export council and provincial investment promotion agencies 21

  22. KEY INTERVENTIONS TRADE, INVESTMENT & EXPORTS 2009 - 2012 MTSF • The Export Credit Insurance Corporation (ECIC) will also support the export initiatives by underwriting new capital goods and services export projects & by developing new products for small transactions • Further, the International Trade Administration Commission of South Africa (ITAC) will continue with proactive management of South Africa’s tariff regime (ie. tariffs, trade remedies, import and export controls, and duty credit certificates) to control both import & exports 22

  23. KEY INTERVENTIONS BROADENING PARTICIPATION 2009 - 2012 MTSF • Forster the growth of SMMEs and cooperatives by creating an enabling environment and overseeing the support provided by agencies such as Khula, the Small Enterprise Development Agency and the South African Micro-finance Apex Fund (all of whom have presence in the Provinces) to increase the number of SMMEs & cooperatives • Facilitate access to government procurement opportunities by SMMEs and cooperatives through overseeing the implementation of the 10 approved products • Facilitate the increased participation of black people in business and business transactions through promoting empowerment and equity policies by facilitating the effective implementation of BBBEE holistically including Sector Charters. 23

  24. KEY INTERVENTIONS BROADENING PARTICIPATION 2009 - 2012 MTSF • Continue to utilise the Technology and Human Resources for Industry Programme(THRIP), Support Programme for Industrial Innovation (SPII) & seda Technology Programme to support SMME’s & BEE enterprises. 24

  25. KEY INTERVENTIONS REGULATION 2009 - 2012 MTSF • Increase access to economic opportunities for historically disadvantaged individuals by overseeing the department’s regulating entities • Establish the Companies Commission, to enforce and implement the newly signed Companies Act which seeks, among others, to introduce corporate governance culture in companies & reduce regulatory burden on SMMEs • Establish the National Consumer Commission, to implement the newly signed Consumer Protection Act and enforce consumer rights contained in the Act • Introduce the Intellectual Property Laws Amendment Act and publish a policy document on intellectual property reform for public comment in 2009/10, which aims to align and harmonize IP Laws and national policies related to IP 25

  26. KEY INTERVENTIONS REGULATION 2009 - 2012 MTSF • Develop regulations in terms of the Companies Act of 2008 and the Consumer Protection Bill • Promote competitive and socially responsible business by: • implementing amendments to the Competition Act (1998) by developing regulations which will strengthen cartel enforcement & empower Competition Authorities to proactively investigate markets to ensure market transparency • reviewing the Lotteries Act (1997) which regulates distribution of lottery funds; & the Estate Agency Affairs Act (1976) which mainly regulates estate agents activities in order to protect consumers. • finalise regulations necessary for implementation of the Interactive Gambling Amendment Act of 2008 26

  27. KEY INTERVENTIONS REGULATION 2009 - 2012 MTSF • Intensify the work of the Competition Commission & Competition Tribunal in investing & prosecuting firms that contravene the act, timeous investigation and hearing on mergers • The National Gambling Board will continue monitoring licensees to ensure compliance with legislation & license conditions and increase public education to minimise negative impact of gambling • The National Lotteries Board willreview & improve systems for the regulation of the lottery (particularly the termination of illegal lotteries/competitions) and the National Lotteries Distribution Trust Fund 27

  28. KEY INTERVENTIONS REGULATION 2009 - 2012 MTSF • To enhance the protection of consumers the:- • National Credit Regulator will continue with registration of credit providers & debt counsellors, establish a national register of credit agreements and increase national awareness of specific protective measures contained in the National Credit Act and • National Consumer Tribunal will ensure a consistent & coherent application of the National Credit Act & National Consumer Protection Act by timeous adjudicating of matters brought before it • The Companies and Intellectual Property Registration Office (CIPRO) is an important institution responsible for registration of businesses. To increase its impact and efficiency the decentralising of its services to the provinces will continue over the MTEF period. • CIPRO’s systems will also be improved to safeguard & provide reliable and accurate information 28

  29. KEY INTERVENTIONS REGULATION 2009 - 2012 MTSF • Over the MTEF the Estate Agency Affairs Board (EAAB) will focus on • Raising the profile of the estate agency profession through raising the qualification standards of estate agents • Empowering the consumer through education campaigns on the role and functions of the registered estate agents • Establishment of an inspectorate capability to carry out inspections to ensure compliance to the Act • Continued support to transform the profession through education programs and support of Estate Agents Transformation Charter 29

  30. KEY INTERVENTIONS ADMINISTRATION AND CO-ORDINATION 2009 - 2012 MTSF • Attract, develop & retain professional and skilled officials: • Implementation of Human Resource Development Strategy • Implementation of Human Resource Retention Strategy; • Implementation of the reviewed Performance Management System • Reduction in the vacancy and staff turnover rates • Implement transformation through employment equity and broad based black economic empowerment: • More people with disability appointed • Implementation of the Disability Management Strategy • More women appointed in senior management positions • Accelerated training and development programmes for women • More HDI’s empowered through procurement spend 30

  31. KEY INTERVENTIONS ADMINISTRATION AND CO-ORDINATION 2009 - 2012 MTSF • Ensure value adding business resource management that enhances efficiency: • Information Security Strategy • Master Information System Plan • Office Space Planning Strategy • Strengthen the dti’s corporate governance: • Fraud Prevention Plan • SMS & MMS training on corporate & enterprise risk management • Intensify Communication & Marketing to raise the profile of the the dti’s work and to increase awareness, facilitate access, and promote the dti’s offerings 31

  32. 2009 - 2012 MTSF Allocated resources 32

  33. MTEF BUDGET 2009 - 2012 MTSF 33

  34. ANALYSIS OF CURRENT MTEF 2009 - 2012 MTSF On average, the allocation of the budget over the MTEF period is as follows: • 7,8% to compensation • 9,4% to goods and services • 20,4% to agencies • 61,0% to incentive payments • 1% to capital payments 34

  35. FIVE YEAR COMPARISON OFBUDGET VS EXPENDITURE 2009 - 2012 MTSF 35

  36. CHALLENGES Challenges are to enhance the impact of the dti through ensuring Effective programme & project performance; Stronger strategic & operational management; Greater integration of work, including that of agencies; Adequate financial resources for extensive dti programmes; HR challenge of recruitment, retention and development; and Improved cluster co-ordination 2009 - 2012 MTSF 36

  37. 2009-2012 MTSF QUESTIONS ? 37

  38. 2009-2012 MTSF ANNEXURE: ADDITIONAL INFORMATION ON INSTITUTIONAL MECHANISMS 38

  39. INSTITUTIONAL MECHANISMS the dti is structured into eight (8) programmes and 19 agencies [herein referred to as Council of Trade and Industry Institutions (COTII)] 2009-2012 MTSF 39

  40. INSTITUTIONAL ARRANGEMENTS 2009-2012 MTSF Programme 1: Administration • Provide strategic leadership to the department and its agencies, and facilitate the successful implementation of the department's mandate through sustainable and integrated resource solutions and services that are customer centric. Programme 2: International Trade and Economic Development • Provide leadership on trade policy in South Africa to promote economic development by: 1. working to build an equitable multilateral trading system that facilitates development, 2. strengthening trade and investment links with key economies, and 3. fostering African development including through regional and continental integration, and development cooperation in line with NEPAD. 40

  41. INSTITUTIONAL ARRANGEMENTS 2009-2012 MTSF Programme 3: Empowerment and Enterprise Development • Provide leadership in the development of policies and strategies that create an enabling environment for small, micro and medium enterprises, including cooperatives as well as enhance the competitiveness of local and provincial economies, to achieve inclusive shared equity, growth and job creation. Programme 4: IndustrialDevelopment • The purpose of the division is to create an enabling environment for the promotion of competitiveness, growth, job creation and retention in the sectors guided by the Industrial Policy. Programme 5: Consumer and Corporate Regulation • Develop and implement coherent, predictable and transparent regulatory solutions that facilitate easy access to redress and efficient regulation for economic citizens. 41

  42. INSTITUTIONAL ARRANGEMENTS 2009-2012 MTSF Programme 6: The Enterprise Organisation • Stimulate and facilitate the development of sustainable, competitive enterprises through the efficient provision of effective and accessible incentive measures that support national priorities. Programme 7: Trade and Investment South Africa • Increase export capacity and support direct investment flows through strategies for targeted markets and an effectively managed network of foreign trade offices. Programme 8: Communication and Marketing • Position the dti as a driver of economic development and growth to economic citizens by employing integrated marketing-communication techniques and systems aimed at intensifying awareness, uptake and access to its products and services. 42

  43. INSTITUTIONAL ARRANGEMENTS Agencies Industrial Development Corporation (IDC) Khula Enterprise Finance Ltd (Khula) National Empowerment Fund (NEF) Export Credit Insurance Corporation (ECIC) South African Micro-Apex Fund (SAMAF) Competition Commission Competition Tribunal National Gambling Board (NGB) National Lotteries Board (NLB) National Credit Regulator (NCR) National Consumer Tribunal (NCT) 2009-2012 MTSF 43

  44. INSTITUTIONAL ARRANGEMENTS Agencies – cont. Companies & Intellectual Property Registration Office (CIPRO) Estate Agency Affairs Board (EAAB) International Trade Administration Commission of South Africa (ITAC) Small Enterprise Development Agency (SEDA) South African Bureau of Standards (SABS) South African Accreditation System (SANAS) National Metrology Institute of South Africa (NMISA) National Regulator for Compulsory Specifications (NRCS) 2009-2012 MTSF 44

  45. Abbreviations • AGOA African Growth and Opportunity Act • COMESA Common Market for Eastern and Southern Africa • COTII Council of Trade and Industry Institutions • EAC East African Community • EPA Economic Partnership Agreement • FTA Free Trade Agreement • GDP Gross Domestic Products • HDI’s Historical Disadvantaged Individuals • IDZ Industrial Development Zone • LPM Limited Payout Machines • NEPAD New Partnership for African Development • NIPF National Industrial Policy Framework • NLDTF National Lotteries Distribution Trust Fund • SDIs Spatial Development Initiatives • SACU Southern African Customs Union • SADC Southern African Development Community • SMME Small, Medium and Macro Enterprises • SPII support programme for industrial innovation • TDCA Trade, Development and Cooperation Agreement • THRIP Technology and human resources for industry programme

More Related