Presentation to the Portfolio Committee on Trade and Industry – the dti’s Second Quarter Report

1. Presentation to the Portfolio Committee on Trade and Industry – the dti’sSecond Quarter Report 29 November 2012 Group Chief Operating Officer: Ms Jodi Scholtz 1

2. Presentation Outline Introduction Strategic Objectives Key Achievements Departmental Expenditure versus Budget Key Challenges 2

3. Introduction – Economic Context • The South African economy has displayed some resilience and continued to grow in the midst of a fragile global economic outlook. The Gross Domestic Product (GDP) grew by 3.1% in 2011 and 2.7% and 3.2% in the first and second quarters of 2012 respectively. • The South African Reserve Bank’s leading indicator points to continued uncertainty within the next 6-12 months. Sectors with greater export exposure, particularly manufacturing and mining, are expected to perform less impressively in the coming months – held back by the euro zone debt crisis and global uncertainties. • As a result National Treasury forecasts the real DGP to grow by 2.5% in 2012 and 3% in 2013. • The South African Economy is gradually creating jobs after losing about 1 million jobs during the global recession in 2008/9; in the 12 months period between the third quarter of 2011 and the third quarter of 2012 , 327 000 jobs were created.

4. Strategic Objectives • Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation. • Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives. • Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth. • Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner. • Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery.

5. Key Achievements1 April – 30 Sept 5

6. Key Achievements Industrial Development 6

7. Key Achievements Industrial Development 7

8. Key Achievements Industrial Development 8

10. Trade, Investment & Exports

11. Trade, Investment & Exports

12. Trade, Investment & Exports

13. Broadening Participation

14. Broadening Participation

15. Regulation

16. Regulation

17. Administration & Co-ordination

18. Departmental expenditure versus budget

19. Summary of Projections vs Expenditure as at 30 September 2012

20. Expenditure per economic classification NB: The expenditure based on the year to date projections of R4,226 billion, is 98.2% or R4,148 billion, implying an under-spending of R77,7 million (1.8%).

21. Year-to-Year comparison: 2011/12 vs 2012/13

22. Reasons for material expenditure variance

23. Reasons for material expenditure variance (continued)

24. Interventions to address AG Audit Findings

25. Interventions to address AG Audit Findings

26. Interventions to address AG Audit Findings

27. Interventions to address AG Audit Findings

28. Key Challenges • Current strikes in various sectors negatively impacted on the economy. • Delay in the overhaul of the Preferential Procurement Policy Framework Act (PPPFA); and • The slow uptake of incentives such as the MCEP.

29. Thank You 29