2015/16 – 2019/20 · OPEX Operational Expenditure PFMA Public Finance Management Act PMDS Performance Management and Development System POA Programme of Action PPP Public and Private

STRATEGIC PLAN

2015/16 – 2019/20

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LIMPOPO ECONOMIC DEVELOPMENT AGENCY

Office of the Managing DirectorMain StreetLebowakgomoLimpopo

Tel: (015) 633-4700E-mail: [email protected]: www.lieda.co.za

STRATEGIC PLAN

2015/16 – 2019/20

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FOREWORD BY THE MEMBER OF EXECUTIVE COUNCIL

In terms of the Shareholder Agreement, which governs the work and strategic priorities of the Limpopo Economic Development Agency (LEDA), and in terms of the Public Finance Management Act (Act 56) of 1999 as amended, I have the pleasure to present the Annual Performance Plan for LEDA for the period 1 April 2015 to 31 March 2016. The Annual Performance Plan is developed in full alignment to the LEDA Strategic Plan for 2014/15 – 2018/19.

LEDA strategic priorities and anchor programmes are comprehensively mapped and articulated in the entity’s corporate strategy contained herein. It is however, worth noting that the corporate strategy is resultant from various engagements with key stakeholders and the Shareholder – in an effort to ensure that the strategy is stress tested against an evolving economic landscape and achievable within LEDET finite human and financial resources.

It is important to highlight the LEDA Service Delivery Agreement which, consistent with its mission, covers accelerated industrial diversification; increased levels of trade and investment; and developing sustainable enterprises – it outlines the primary objects of LEDA as follows:• To be a stimulus and catalyst in enhancing provincial economic capacity;• To provide “thought leadership” by way of circumventing sporadic, uncoordinated and disjointed economic development projects, which in most cases work in direct contrast with stated policies and the economic interests of the province; • To seek to organise a more coherent system of economic delivery in the province;• To act as custodian of policy implementation - assisting government in identifying specific high-impact projects that will accelerate and sustain growth and development and create productive and sustainable employment;• To lead government in planning and executing strategies towards shaping the future of Limpopo’s economy by shifting from a culture of disaggregation to a more collaborative approach. It will also take long term view to expanding the provincial economy; and • To pursue an industrialisation trajectory that is responsive to:

- The promotion of more labour-absorbing industrial sectors, with an emphasis on tradable labour-absorbing goods and services and economic linkages that catalyse employment creation;- The promotion of a broader based industrialisation path that is characterised by greater levels of participation; and - The intensification of Limpopo’s industrialisation process and movement towards a knowledge and Skills Based Economy.

I have noted and appreciate the important work executed by the LEDA Board of Directors and Management in laying a solid foundation to give structure and impetus to the organisation’s economic development mandate. I am also cognizant of the expected overarching concerns which deal with an increasingly competitive business environment, the fluctuating nature of revenue and access to trade partners and markets, as well as introduction of new legislation that is sure to alter and redefine the scope and manner in which LEDA does business. I have faith in the multiplicity and cohesion of the corporate strategy – in responding to current business imperatives and anticipating future shifts and opportunities. I am confident therefore, that LEDA is poised to decisively intervene in the provincial economy, thus improving the lives and enterprises of our people.

Mr Charles Seaparo Sekoati MEC: LEDET

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OFFICIAL SIGN-OFF

It is hereby confirmed that this Strategic Plan for the Limpopo Economic Development Agency:

• was developed by the management team of the Limpopo Economic Development Agency under the guidance of the Board;

• takes into account all the relevant legislation, policies and other mandates for which the Limpopo Economic Development Agency is responsible; and

• accurately reflects the strategic Objectives and objectives which the Limpopo Economic Development Agency will endeavour to achieve over the period 2015/16 – 2019/20.

This Strategy Framework is hereby presented as the guiding document for Limpopo Economic Development Agency for the period 2015/16 to 2019/20.

Mr LP Kekana Signature:Group Chief Financial Officer

Date:

Mr STM Phetla Signature:Group Chief Operations Officer

Date:

Mr L Masia Signature:Managing Director

Date:

Mr MH Lekota Signature:Chairperson of the Board

Date:

Mr S C Sekoati Signature:MEC: LEDET

Date:

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ABBREVIATIONS AND ACRONYMS

ABC Activity Based CostingAG Auditor GeneralAPP Annual Performance PlanBBBEE Broad Based Black Economic EmpowermentBCP Business Continuity PlanBP Business PlanBRICS Brazil, Russia, India, China and South Africa BlockCAPEX Capital ExpenditureCDW Community Development WorkersCFO Chief Financial OfficerCMR Corridor Mining Resource (SOC) LtdCOO Chief Operations OfficerCoop CooperativeCRM Customer Relationship ManagementCSI Corporate Social InvestmentCWP Community Works ProgrammeDDI Domestic Direct InvestmentDTI Department of Trade and IndustryEAP Employee Assistance ProgrammeEE Employment EquityEMT Executive Management TeamEPWP Expanded Public Works ProgrammeERM Enterprise Risk ManagementFDI Foreign Direct InvestmentFET Further Education and TrainingGDP Gross Domestic Product GEYODI Gender, Youth, People With DisabilitiesGNT Great North Transport (SOC) LtdHCD / M Human Capital Development / ManagementHOD Head of DepartmentHR Human ResourcesIA Internal AuditICT Information and Communications TechnologyIDC Industrial Development CorporationIDP Integrated Development PlanIGR Inter-governmental RelationsIMS Information Management SystemIP Intellectual PropertyKPI Key Performance IndicatorKRA Key Result AreaLDCA Limpopo Development Corporation ActLED Local Economic DevelopmentLEDA Limpopo Economic Development AgencyLEDET Department of Economic Development, Environment and TourismMD Managing DirectorM&E Monitoring and Evaluation

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MEC Member of the Executive CouncilMISS Minimum Information Security StandardsMOU Memorandum of UnderstandingMTEF Medium Term Expenditure FrameworkMTSF Medium Term Strategic FrameworkNDP National Development PlanNGP New Growth PathNGO Non-Governmental OrganisationNSDP National Spatial Development PerspectiveOHS Occupational Health and SafetyOPEX Operational ExpenditurePFMA Public Finance Management ActPMDS Performance Management and Development SystemPOA Programme of ActionPPP Public and Private Partnership

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FOREWORD BY THE MEMBER OF EXECUTIVE COUNCIL .........................................3

OFFICIAL SIGN-OFF .....................................................................................................4

ABBREVIATIONS AND ACRONYMS .............................................................................5

PART A: BACKGROUND AND STRATEGIC OVERVIEW ............................................10

1. BACKGROUND TO THE INTEGRATED LIMPOPO ECONOMIC DEVELOPMENT AGENCY STRATEGIC PLANNING PROCESS ................................................................................................ 10

1.1. THE LEDA STRATEGIC PLANNING PROCESS ........................................................................ 13

2. CONTEXT TO THE WORK OF THE LIMPOPO ECONOMIC DEVELOPMENT AGENCY ........................... 14

2.1. CONTEXTUAL PRESENTATIONS INFORMING THE PLANNING PROCESS .................................. 21

3. SITUATIONAL ANALYSIS TO INFORM THE LIMPOPO ECONOMIC DEVELOPMENT AGENCY STRATEGIC PLAN .......................................................................................................... 22

3.1. THE PERFORMANCE DELIVERY ENVIRONMENT INFORMING THE STRATEGIC PLAN ................ 23

3.2. STAKEHOLDER ANALYSIS INFORMING THE STRATEGIC PLAN ................................................ 27

3.3. THE ORGANISATIONAL ENVIRONMENT INFORMING THE STRATEGIC PLAN ............................ 30

3.4. SUMMARY OF CRITICAL ISSUES ARISING FROM THE SITUATIONAL ANALYSIS ........................ 31

PART B: THE STRATEGIC FRAMEWORK OF THE LIMPOPO ECONOMIC

DEVELOPMENT AGENCY FOR 2015/16 – 2019/20 ....................................34

4. THE ESTABLISHMENT MANDATE OF LEDA ................................................................................... 35

5. THE LEGISLATIVE AND POLICY FRAMEWORK OF LEDA ................................................................. 36

6. THE LEDA VISION ....................................................................................................................... 41

7. THE LEDA MISSION (AIM) ............................................................................................................ 41

8. THE INSTITUTIONAL VALUES OF LEDA ......................................................................................... 42

9. THE STRATEGIC GOAL OF LEDA .................................................................................................. 43

10. THE STRATEGIC OBJECTIVES OF LEDA ........................................................................................ 43

11. PROGRAMME NAME AND PURPOSE ............................................................................................ 46

12. THE STRATEGIC OBJECTIVES AND BUDGET PROGRAMMES OF LEDA PER STRATEGIC OBJECTIVES .............................................................................................................................. 47

TABLE OF CONTENTS

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13. ALIGNMENT OF STRATEGIC PROJECTS TO STRATEGIC OBJECTIVES ............................................. 48

13.2. PRINCIPLES INFORMING LEDA INVOLVEMENT IN PROJECTS ................................................ 48

13.3. THE NATURE OF LEDA INVOLVEMENT IN PROJECTSE ........................................................... 50

14. THE LEDA DELIVERY MODEL AND VALUE CHAIN TO SUPPORT THE STRATEGY ............................... 51

15. THE ORGANISATION DESIGN OF LEDA TO SUPPORT THE STRATEGY ............................................. 53

16. THE APPROVED ORGANISATIONAL STRUCTURE ........................................................................... 53

17. LEDA RESOURCE CONSIDERATIONS TO SUPPORT THE STRATEGY ................................................ 54

18. LEDA FUNDING MODEL AND APPROACH ..................................................................................... 54

19. POTENTIAL ALTERNATIVE REVENUE AND FUNDING SOURCES ....................................................... 55

20. ADDITIONAL RESOURCING CONSIDERATIONS .............................................................................. 56

PART C: LINKS TO OTHER PLANS ...........................................................................54

21. LINKS TO THE LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANS ................................. 58

22. CONDITIONAL GRANTS ............................................................................................................... 59

23. PUBLIC ENTITIES ........................................................................................................................ 59

24. PUBLIC-PRIVATE PARTNERSHIPS................................................................................................. 59

25. MATERIALITY FRAMEWORK ........................................................................................................ 59

PART D: TECHINICAL INDICATORS DESCRIPTORS .................................................60

26. TECHNICAL INDICATORS DESCRIPTORS ...................................................................................... 61

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Figure 1: The LEDA Group of Companies – Governance Arrangements ................................................. 12

Figure 2: LEDA Policy and Strategy Context ........................................................................................ 14

Figure 3: Limpopo Growth Trajectory Leading to the Establishment of LEDA .......................................... 18

Figure 4: Achieving a Double Digit Contribution to National GDP through Industrialisation and Localisation .................................................................................................................. 19

Figure 5: Integrated LEDA Delivery Model / Value Chain ....................................................................... 48

Figure 6: The High-Level Organisational Structure ............................................................................... 50

Figure 7: The LEDA Funding Model .................................................................................................... 51

LIST OF FIGURES

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PART A:BACKGROUND AND

STRATEGIC OVERVIEW

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1. BACKGROUND TO THE INTEGRATED LIMPOPO ECONOMIC DEVELOPMENT AGENCY STRATEGIC PLANNING PROCESS

PART A: BACKGROUND AND STRATEGIC OVERVIEW

The Limpopo Economic Development Agency (LEDA) was established in terms of the Limpopo Development Corporation Act (Act 5 of 1994, as amended). It is established as an integrated platform, culminating from the amalgamation of four historical agencies, namely: Trade and Investment Limpopo (TIL), the Limpopo Business Support Agency (LIBSA), the Limpopo Agricultural Development Corporation (LADC) and the Limpopo Economic Development Enterprise (LimDev).

The establishment of the amalgamated LEDA was officially announced by the Premier in February 2010 in the State of the Province Address, based on the recommendations of the following frameworks:

1. The 2009 Provincial Fifteen Year Economic Review - lifts out key priority areas of consideration for the province in terms of the Medium Term Strategic Framework (MTSF), as laid out in the ANC election manifesto. The fundamental economic challenges and strengths to build on for the province were also outlined.

The review sets out economic and social constraints and impediments into categories that would respond to specific policies if addressed and makes proposals on how policies should be altered in order to achieve government economic imperatives of growth and job creation.

In addition, it identifies drivers and impediments to be focused on to improve job creation and consequently increase sustainable levels of growth and the alleviation of poverty

2. The Limpopo Employment Growth and Development Plan (LEGDP) - which highlighted a number of challenges and opportunities:

i) Provincial economic regions are struggling to overcome abject poverty but also lack productive capacities to move out of the poverty trap of high unemployment and low levels of income and growth;

ii) Inability of the underdeveloped regions to tap into the power of the new economy or be pushed onto a new economic frontier;

iii) Insufficient attention paid to a long term perspective of building sustainable, successful, competitive, and integrated economic regions in the provincial districts;

iv) Inadequate promotion of a broad-based industrialisation path that is characterised by greater levels of participation of historically disadvantaged people, and marginalised regions in the mainstream of the industrial economy;

v) No targeted interventions to broaden and diversify the provincial industrial base;

vi) Insufficient efforts to address severe structural imbalances and constraints that impede the economy from developing to its full potential; and

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3. Limpopo Development Plan (LDP) 2015-2019

The LEGDP (2010-2014) lapsed and a new Plan, the LDP 2015-2019 was to be approved for implementation by end of February 2015.This Strategic Plan is in line with the provisions of the LDP 2015-2019 and will be revised accordingly after the formal adoption of the LDP.

The LDP came into being due to the dawn of the new electoral cycle and the inauguration of a new government administration. The Provincial administration developed the LDP, which expresses the shared vision of the province along with a Strategy and the Action Plan, focusing on the five-year period from 2015 – 2019. The aim of the Plan is to inform planning and resource allocation at both provincial and municipal levels, and also provide a strategic partnership between government, private sector & civil society.

A single and integrated provincial economic development agency in the form of LEDA was put in place, in order to catapult the provincial economy from a single to double digit percentage contribution to the national GDP. The formalisation of the establishment of LEDA took place in December 2012.

As a provincial agency with the Department of Economic Development, Environment and Tourism (LEDET) acting as shareholder on behalf of the province, the Limpopo Economic Development Agency is listed as a Schedule 3D entity in the Public Finance Management Act (Act 1 of 1999 as amended) (PFMA). In terms of this listing, LEDA is a provincial government enterprise; and to this end, the agency operates on sound business principles and practices.

The Section 3D listing further confers on LEDA a limited degree of autonomy as well as the fiduciary and other responsibilities reflected in section 9 of the Companies Act. These provisions state that any provision of the Companies Act that applies to a private company applies also to a state-owned company, including those provisions defining the fiduciary and “due care” duties and responsibilities of “directors” of a company.

To this end, LEDA operates under the supervision of an independent Board of Directors, whose non-executive members are appointed by the shareholder (LEDET); and strives at all time to comply with the principles contained in the King Code on Corporate Governance in South Africa (2009) (King 3).

The Board of LEDA is the Accounting Authority in terms of the PFMA. The Board provides strategic direction and leadership to enhance shareholder value and ensure LEDA’s long-term sustainable development and growth. In fulfilling its responsibilities, the Board is supported by the Managing Director and Executive Management Team in implementing the approved strategic and corporate plans and policies.

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While established and mandated in terms of the provisions of the Limpopo Development Corporation Act (Act 5 of 1994, as amended), there is also a myriad of other national and provincial legislation, policies and strategies pertaining to public entities to which LEDA must align. Of particular importance are the latest National and Provincial Economic Development policies and strategies.

The legislation which gives legitimacy to LEDA as a provincial entity then forms the foundation of a strategic and institutional framework for LEDA which, as a public entity, must produce a 5-year Strategic Plan and an Annual Performance Plan (APP) in accordance with Treasury Regulations emanating from the PFMA. LEDA embarked on a process to review and revise its strategic framework and plan for the next period. This was in light of learnings from the amalgamation and shifts in the environment which have an impact on its planning and delivery framework.

There was a need to examine, synthesise and assimilate the various strategic, policy and related documents, consider the changes in the performance environment and policy intent and to develop a LEDA Group Strategic Plan that is progressive in nature and practical to implement. There was a need to critically assess, review and develop afresh the strategic plan, and not just conduct a roll-over of the existing Annual Performance Plan for a further period.

The overall objectives of the process was to apply the principles of strategic review, analysis, planning and monitoring and evaluation in developing a strategic plan, with aligned institutional arrangements and critical success areas to give effect to the strategic plan

Figure 1: The LEDA Group of Companies – Governance Arrangements

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1.1. THE LEDA STRATEGIC PLANNING PROCESS

The planning process was necessarily iterative and focused on critically examining the strategic framework, goals, objectives and corporate performance metrics; to ensure that they are specific, measurable, achievable, realistic and time bound – otherwise known as “SMART” principles.

It was necessary to ensure that the performance data was devised in accordance with the definitions stipulated by the National Treasury requirements for performance information (2010). Extensive focus was placed on the consistency, integrity and accuracy of data provided by LEDA through the process.

This document thus outlines the methodology that was followed in conducting the strategic planning process and reflects the outcome of the process in the form of the Corporate Strategic and Tactical Plan of LEDA for the 2015/16–2019/20 period. This Strategic Plan document outlines:

1. A clear understanding of the impact of and alignment with the national outcomes as articulated in the National Development Plan;

2. A better view and understanding around the tensions between the economic development versus socio-economic (developmental) agenda and the need for a balance between these sometimes competing priorities;

3. A strategic framework for LEDA that aims at defining the character of the organisation, including a response to the performance delivery environment and an articulation of its mandate in response to the establishment mandate and relevant regulatory and policy frameworks;

4. A consideration of the aim, purpose and value proposition of the Entity;

5. An articulation of the vision, mission and values of the Entity, in light of a carefully considered and defined mandate;

6. The LEDA delivery model and service offerings, taking into consideration its role as a provincial agency;

7. A balanced and aligned set of business goals, focus areas and strategic objectives and aligned performance metrics;

8. A corporate planning and reporting process which is aligned to the sometimes tight planning cycles of government;

9. High-level organisational design considerations to be capacitated in order to give effect to the strategy;

10. An appropriate funding and financial model for LEDA given the nature of the organisation. This refers specifically to the inherent nature of 3D entities as described in the PFMA, the fact that some of LEDA’s programmes are funded by grant funding and the fact that several operational activities of the group are in fact revenue generating;

11. The identification of high-level gaps in the policy and operating environment; and

12. A prioritised list of critical success factors linked to implementation plans.

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The LEDA Group Strategic Plan, approved by the Board, will then serve as input to the management team as they work to finalise the Annual Performance Plans and supporting institutional arrangements; and actively pursue implementation of the approved Strategic Plan.

2. CONTEXT TO THE WORK OF THE LIMPOPO ECONOMIC DEVELOPMENT AGENCY

In developing the strategic posture of LEDA, it is important to understand the relevant policies and strategies of the national and provincial spheres of government and then to frame the work of LEDA in the context of the Province’s unique political, socio-economic, geographical and environmental characteristics.

The Policy and Strategy context of the Limpopo Economic Development Agency, broadly, can be represented as follows:

Figure 2: LEDA Policy and Strategy Context

The latest and highest level of government policy is the National Development Plan (2012), which seeks to create a “virtuous cycle of growth and development” by removing the most pressing constraints to investment and job creation in order to eliminate poverty and sharply reduce inequality in the country by 2030. According to the National Planning Commission, nine key challenges stand in the way of eliminating poverty and reducing inequality:1. Too few South Africans work;2. The quality of school education for most black people is sub-standard;3. Poorly located and inadequate infrastructure limits social inclusion and faster economic growth;4. Spatial challenges continue to marginalise the poor;5. South Africa’s growth path is highly resource-intensive and hence unsustainable;6. The ailing public health system confronts a massive disease burden;

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7. The performance of the public service is uneven;8. Corruption undermines state legitimacy and service delivery;9. South Africa remains a divided society.

It is reasonable on the basis of the aforementioned that these challenges are also pertinent to the Limpopo Province and that public sector organisations in the province should respond accordingly.

In responding, a further key national framework to consider is the Industrial Policy Action Plan (IPAP 2 and the latest IPAP 2013 - 2016) which stress that longer term increases in employment in all sectors of the economy need to be underpinned by higher growth in production sectors, led by manufacturing sectors. It adds that there is a problem of low productivity in the manufacturing sector that has to be addressed. IPAP categorises economic sectors into 3 clusters as follows:

Cluster 1: Qualitatively new areas of focus

1) Realising the potential of the metal fabrication, capital and transport equipment sectors• Leveraging the public infrastructure programme;• Export opportunities;• Improve areas of beneficiation value chain;• Automotive production and development programme – opportunities for metals

component manufacturing.

2) Green and ‘energy saving’ industries• Improve economic efficiency through solar water heating;• Increased domestic investment;• Export Solar Water Heaters and have local manufacturing industry.

3) Agro-processing, linked to food security and food pricing initiatives• Food processing;• Beverages;• Aquaculture;• Horticulture;• Medicinal, aromatics and flavourings.

Cluster 2: Scale up and broaden interventions in existing IPAP sectors

1) Automotive components, medium and heavy commercial vehicles:• Increase manufacturing;• Components supply.

2) Plastics, pharmaceuticals, and chemicals;

3) Clothing, textiles, footwear and leather;

4) Biofuels;

5) Forestry, pulp and furniture;

6) Strengthening linkages between cultural industries and tourism;

7) Business process servicing.

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Cluster 3: Sectors with potential for long-term advanced capabilities

1) Nuclear;

2) Advanced materials;

3) Aerospace.

A further important policy framework to which alignment is required is the Medium Term Strategic Framework (MTSF) 2014 – 2019 of the current government. The 14 government outcomes of the MTSF are all encompassing and provide a channel for alignment of all public sector departments and entities.

To this end and as the implementing economic development agency of the province, the foremost MTSF outcome to which LEDA contribute and against which it reports, is:

Outcome 4: Decent employment through inclusive economic growth.

Outcome 4 specifically reflects outputs relevant to LEDA.

However, it is understood that LEDA, through its work and focus, indirectly supports other national outcomes, which therefore also find expression in the LEDA strategic framework:

Outcome 5: A skilled and capable workforce to support an inclusive growth path.

Outcome 5 specifically reflects outputs relevant to LEDA related to targeted skills development and increasing investment in South Africa’s science base (both Human Capital and Transformation); a new technology platform for biotechnology, technology to add value to natural resources sectors, and technology aimed at poverty reduction.

It also challenges LEDA to engage substantively around the development of appropriate skills for the economy; and to massif the technical capabilities required of a capable workforce. To this end, the re-capitalisation of LEDA and its subsidiaries is required.

Outcome 6: An efficient, competitive and responsive economic infrastructure network.

Outcome 6 specifically reflects outputs relevant to LEDA related to strategic economic infrastructure stimulating employment-led growth and development, supporting mobility and transit-orientated development and the optimisation of public-owned infrastructure. Creatively accessing resources from various sources to continue with the economic and social infrastructure programme is emphasised. A focus on ensuring proper and appropriate investment in and an ongoing programme for the maintenance of existing infrastructure is critical.

It challenges LEDA to address the discord between the provincial employment rate and growth rate. LEDA must actively support the localisation of benefits from various infrastructure development programmes; and a key focus of LEDA must be on targeted enterprise development to ensure provincial enterprises benefit from industrialisation and economic growth.

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Outcome 7: Vibrant, equitable and sustainable rural communities with food security for all.

Outcome 7 specifically reflects outputs relevant to LEDA related to the development and implementation of a comprehensive strategy of rural development that will meet the needs of improving the quality of life of rural households, enhancing the country’s food security through a broader base of agricultural production and associated processing capabilities.

Outcome 8: Sustainable human settlements and improved quality of household life.

Outcome 8 specifically reflects outputs related to the accelerated delivery of housing opportunities and the upgrading of informal settlements, the rate of provision of affordable rental housing stock, improving access to basic services, approaches to acquiring tribal land and the availability of well-located state-owned land for low-income and affordable housing development as well as measures to support improvement in the property market.

Outcome 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.

Outcome 12 specifically reflects outputs relevant to LEDA related to governance, public accountability and public participation.

The next level of strategic consideration is that of the Limpopo Province. Extracted from the Board discussions on the strategic framework of LEDA, the figure below demonstrates the various economic growth and development strategies of South Africa since the advent of democracy in 1994. The planned growth trajectory of the past 20 years was meant to make a meaningful impact on job creation, growth, development, poverty alleviation and equity.

Figure 3: Limpopo Growth Trajectory

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The above figure questions the strategic role and impact of historic Limpopo agencies in addressing the defined strategic thrusts over the past 20 years. In reality, certain economic challenges facing the Limpopo Province remain as apparent and critical today:

1. Limpopo has an unresponsive labour market. The positive economic growth over the past decade did not translate into sustainable employment opportunities. Also in comparing the unemployment rates of the province with that of the country as a whole, Limpopo lags far behind in its ability to create sufficient and sustainable jobs. The unemployment rate stays far above the national average.

2. The source of economic growth is investment growth through increased employment of capital stock. Limpopo therefore experiences low job growth. Although there has been a “trickle-down” effect, its contribution to employment creation and poverty eradication remains woefully insufficient.

3. Limpopo’s competitiveness in terms of export growth relative to South Africa is volatile, as the bulk of Limpopo’s exports consist of Mining, Agriculture, Basic Chemicals and Basic Non- Ferrous Metals. These commodity exports make up around 85% of the total exports of the Limpopo Province. International commodity and agriculture demand and prices in nature fluctuate resulting therefore in big swings in the relative export competitiveness of the province.

4. Limpopo has a well-established trade base, although the Province is very dependent on commodity and agriculture exports. One obstacle to development is the distance from a sea-port and this is aggravated by the distance from major foreign markets. This obviously adds costs, places Limpopo exporters at a disadvantage and in some instances makes firms uncompetitive.

5. The economic performance of the Limpopo Province shows volatile movement over the last decade. Given that both the MTSF strategy and NDP set a growth rate of 6% for the country to be reached by 2030, a challenge for the province lies ahead.

Challenges being faced by the province are largely persisting at the micro-economic level. Fundamental is the notion of identifying these challenges and overcoming the existing impediments to growth so as to ensure that growth rates are sustainable, non-inflationary and effective in alleviating poverty and unemployment.

Recognising the need to restructure the economy away from agriculture, mining and other primary economic activities to greater participation in the value-chain, oriented more towards “downstream industries”, the following diagram provides a view on how this “industrial diversification” might be achieved.

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Figure 4: Achieving a Double Digit Contribution to National GDP through Industrialisation and Localisation

The above is a forward looking and long term Limpopo industrialisation model, reflecting a parallel approach towards attaining the objective of an increasingly knowledge-based economy in the province (over a timeframe of 25 – 40 years).

Of particular importance to this strategic plan is the focus on building labour intensive industries, with primary focus on diversifying the industrial base and strengthening the input sectors of the economy. In this regard, LEDA must identify the challenges at micro-economic level and define what can be done to address them.

With this high-level economic context established, it is also imperative that LEDA reviews and understands the province’s long range growth and development strategies, as well as the 5-year Integrated Development Plans of the various municipalities in Limpopo. Focus is on the Limpopo Employment, Growth and Development Plan (LEGDP) specifically.

The LEGDP suggests a fresh and exciting way of tackling the economic challenges of the province. It focuses on creating an inclusive, innovative, industrialised and green economy. A focal theme within the LEGDP is the importance of certain large-scale, macro-level interventions. The LEGDP seeks to address the current structural challenges of the province, by:1. Increasing public employment programmes that target people excluded from mainstream economic activity or

formal employment (rural areas, informal settlements, townships);

2. Focusing on youth employability programmes;

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3. Promoting active industrial and sectoral development strategies – to support labour absorbing sectors, and sectors in distress, encourage export and localisation;

4. Ensuring that sectors in distress receive special attention;

5. Providing financial and non-financial support to SMMEs and co-operatives;

6. Actively pursuing the Green economy and supporting pilot projects focusing on green economy;

7. More effective use of existing resources;

8. 8) Innovation and knowledge based economy – emphasising low and medium technology and Research and Development (through academia and business);

9. Creating an inclusive economy (bringing people of the province closer together through infrastructure investment, Broadband) with better services, education and health.

The above factors and considerations have contributed to the development of the LEDA Group Strategic Plan to 2019/20, complemented by the contextual presentations below which provide further insight into the current planning mechanisms, policies and strategies of LEDA.

2.1. CONTEXTUAL PRESENTATIONS INFORMING THE PLANNING PROCESS

In addition to the source documents reviewed as informants to strategy development process, various input presentations were made to further guide planning considerations. These presentations are available separately and are not duplicated here. However, the salient features and key issues raised are highlighted below.

As part of unpacking the current environment and challenges facing LEDA, a review of each division was presented by the responsible executive. Key themes emanating from the various executive presentations included:• The need to restructure the economy away from such high dependence on the primary economic activities

of mining and agriculture, to greater participation up the value chain, oriented more towards “downstream industries”;

• Growth and development around 2 special economic zones(Tubatse and Musina) and corridor developments, namely, (Polokwane, Lephalale and Phalaborwa)

• The need to drive enterprise development is integral to the mandate of LEDA;• Develop comprehensive youth enterprise and skills development programs;• LEDA products and services need to be demand-led;• The need to have exit strategies for the various LEDA projects;• Provision of key strategic economic infrastructure, particularly in the targeted sectors and sub-sectors;• Alignment of agro-processing projects with the Limpopo Agro-processing Strategy;• Pro-active, long-term maintenance plan for LEDA properties, and the strategic repositioning of LEDA industrial

and commercial properties;• Well-coordinated efforts on Trade & Investment Promotion within the Province;• Thorough market analysis and intelligence of the provincial economy and the targeted sectors;• Forge strategic alliances/partnerships (local and national), including Development Finance Institutions.• Create a one-stop-shop business and investor service in the five regions;• Leveraging all sources of project funding particularly as grant funding come under pressure as social

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programmes are prioritised;• Assets which are revenue-generating need to be fully sweated and earnings optimised. • The need to focus on company and individual performance and in particular, strategy execution;• Challenges with people, structure and culture issues in the LEDA Group, such as:

- The current organisational structure which does not support the strategy;- The current staff profile does not necessarily reflect the appropriate numbers, levels and skills required to achieve the strategy;- The need to build a performance culture rather than simply a performance management system;

• The need for greater cost-efficiency. There is a need to manage LEDA costs and this should be done in a considered manner aligned to the prioritised imperatives stemming from this Corporate Strategic Plan;

• The need for synergy between the strategic thrusts as expressed in the various programmes and the manner in which LEDA does business (e.g. Green Economy and a paperless corporate environment);

It was agreed that:• There is a need to revisit the LEDA funding model and aligned pricing model of the organisation.• There is a need for the recapitalisation of LEDA in line with a realistic portfolio and priorities.

3. SITUATIONAL ANALYSIS TO INFORM THE LIMPOPO ECONOMIC DEVELOPMENT AGENCY STRATEGIC PLAN

The above perspectives set the tone and context in which the organisation creates its impact. In addition to the review of the context, policy and strategic frameworks highlighted above, it was important to critically reflect on LEDA performance from amalgamation to date, in relation to its operating and organisational environment and to identify emerging stakeholder considerations.

LEDA currently consists of various projects and interventions in various sectors. It is noted that many of these projects and interventions are, in their current form, unsustainable and are under significant financial strain. Decisions have to be taken urgently on a turnaround or exit strategy for each project or intervention. Of particular importance is to ensure that projects and/or facilities are adequately funded, maintained and are fit-for-purpose.

One of the key outcomes of this strategic plan is to establish an institutional mechanism for project take-up by LEDA. This mechanism finds expression through an alignment to the goals and strategic objectives of the organisation and through the application of project involvement principles and a “project decision funnel” which is further discussed later on in this strategic plan.

3.1. THE PERFORMANCE DELIVERY ENVIRONMENT INFORMING THE STRATEGIC PLAN

The discussions around the issues highlighted in the performance environment analysis are then summarised into both a PESTEL and SWOT analysis table, which reflect actions that may address threats and weaknesses, whilst also indicating possible actions and activities that might optimise on the strengths and opportunities available to LEDA in support of its strategic orientation in the period of this strategic plan.

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LEDA SUMMARY “PESTEL” ANALYSIS: Emerging macro-environmental issues and trends which inform planning:

POLITICAL Increased service delivery Timeous delivery on high-impact projects. protests

ECONOMIC Growing African markets. Access to expanded markets in sub-Saharan African markets.

EMERGING ISSUE IMPLICATIONS FOR LEDA

Environment of increasing labour unrest.

Economic downturn of the South African and international economies.

Currency fluctuations and specifically a volatile Rand.

Increased competition and the challenge to be competitive.

Increase vigilance to secure assets and protect employees.

• Limpopo relies heavily on export of raw materials (primary commodities).

• Need to diversify value chain involvement.• Ability to fund high impact projects and the

cost of implementing projects.• Enhance beneficiation at source capabilities.• Look at and enhance product offering and

provincial value-add.• Need to improve and shorten decision-

making process and time.

LEDA has the political support to pursue catalytic projects that provide significant impact in the key areas of job creation and economic growth. With an aligned focus on national and provincial economic growth and development priorities and a targeted mandate, LEDA is well placed to rethink and re-engineer its approach and contribution to the economic growth and development of the province.

Contributing 7.5% to the economy of South Africa and with an ambition to increase this contribution to 10.7% in the next 5-years, the Limpopo province is reliant on LEDA to assist to overcome the macro-economic barriers and contribute positively to the strategic thrusts of job creation, poverty alleviation and economic growth. LEDA needs to actively source investors in the regional economy and roll-out, with speed, socio-economically beneficial projects that create jobs en masse. The promotion and development of partnerships with the private sector in the key regional focus sectors is a necessity and will bring about competitive advantage.

SOCIAL Social cohesion. Increased role in developing social partnerships and providing thought leadership in social engineering.

High levels of poverty, unemployment and inequality.

Low income per capita.Embrace the co-operatives movement as an instrument to promote access to opportunities.Enhance regional economic integration in the province.

Low skills base. • Limited ability to innovate.• Affects ability to implement projects effectively

and efficiently.

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Young population. • Need for programmes focussing on the development of youth.

• Experience levels low.

HIV / Aids.

Low uptake of new technology.

Poor ICT infrastructure and skills.

Lack of appropriate technological platform and connectivity..

Impact on workforce productivity.

• Implement programmes to close the techological gap.

• Implement programmes and interventions to enhance rural technologies.

• Need to rollout broadband and promote accessibility.

Limits ability to innovate and participate in the information society.

Need to invest in and rollout technology that will enable efficient and effective environment for LEDA.Need to integrate and harmonise ICT platforms across the group.

Through its activities, LEDA needs to ensure a balance between pursuing a profit motive and ensuring the poor and marginalised are given access to its services at lowest possible cost, efficiently. Wherever possible, LEDA needs to pursue job creation initiatives and SMME development and support.

LEDA has the opportunity to investigate, promote and implement exciting, innovative, appropriate technology projects which inherently contain potential competitive advantage for the region. Internally, LEDA has the opportunity to link its people, processes, assets and stakeholders via best-of-class technology systems that, if implemented effectively, could provide the agency with a significant competitive advantage.

TECHNOLOGICAL


SOCIAL

High carbon footprint.

Climate change.

• Need to develop a low carbon strategy and align business processes and operations accordingly.

• Partnership with the Green Business Council and other green stakeholders (local and international).

Strengthen conservation and environmental management practices in all projects.

Urban greening projects in collaboration with other partners, for example, green corridors development and tree planting.

Explore carbon-credit projects and increase carbon revenues.

ENVIRONMENT

Environmental implications of traditional mining.

Need for mining rehabilitation provisions (could be an opportunity for the development of new businesses specialising in rehabilitation).

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ENVIRONMENT Green economy and sustainability.

• Focus on developing green economy and green projects.

• Align LEDA internal processes to green strategy.

LEDA must focus on green technology rollout in existing facilities and new capital developments. This will enforce a focus on building resource resilience and sustainability in the province. Internally, opportunities also exist to minimise LEDA’s carbon footprint through the optimal use of technology.

Enthusiasm of portfolio committee and legislature.

Amendedment to Limpopo Development Act.(Draft Bill).

Shareholders Compact

Ensure alignment with NGP, IPAP2 and IPAP 2013 – 2016 as customisation of LEDA programmes occur.

• Provides opportunities for economic growth and development in terms of the mandate.

• Need to ensure compliance to the new Bill.

Review the Shareholders Compact based on the revised strategy and gain approval.

LEGISLATIVE

LEDA must comply with all applicable legislation, must be accountable to its principals and the community at large. The highest levels of corporate governance and accountability underpin LEDA’s aspiration to contribute positively to the achievement of the LEGDP.

The summary SWOT analysis table is then reflected below:

LEDA SUMMARY “SWOT” ANALYSIS:

STRENGTHS(What internal strengths can be leveraged?)

WEAKNESSES(What internal weaknesses are undermining our

efforts and must be managed?)

• A diverse workforce with experience and skills in various key sectors.

• Policy frameworks (national and provincial) for LEDA are approved, adopted and in place.

• Asset base that can be leveraged

• An established footprint across the province with a physical presence of offices, fixed assets and personnel.

• Internal policies and procedures in place.

• Cash resources are limited.

• Internal ICT infrastructure and tools are not appropriately supporting the operational and strategic needs of the organisation.

• LEDA brand is not well established.

• Lack of functional integration

• Information sharing and collaboration between the various sections of the organisation is severely lacking leading to a silo effect.

• Slow implementation of partnership agreements and uncoordinated stakeholder management.

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OPPORTUNITIES(What external opportunities can be exploited?)

THREATS(What external threats must be mitigated?)

• Geographical location of the Province allows access to both domestic and regional markets.

• Low labour law absorption of skills youth.

• Lack of funding model

• Existing ICT infrastructure in place.

• Disproportionate maintenance of property portfolio.

• Poor credit control

• Legacy ownership challenge

STRENGTHS(What internal strengths can be leveraged?)

WEAKNESSES(What internal weaknesses are undermining our

efforts and must be managed?)

• The varied greenfield projects allow for rapid development

• Multiple sources of provincial, national and international funding and other resources can be tapped into and leveraged for the attainment of strategic Objectives and objectives.

• Service and products offering are not aligned with the needs of the market.

• The advent of various social media provides a dynamic platform for development of the brand and improved communication with stakeholders.

• Investment in the development of the province’s young population means the existence of future skills increasing the impact and sustainability high growth impact of catalytic projects.

• Existing partnership agreements with a number of key institutions and stakeholders.

• Geographical location of the Province allows access to both domestic and regional markets.

• Low labour law absorption of skills youth.

• If LEDA is not properly recapitalised, competing social priorities coupled with budget pressures could lead to decreased grant funding.

• Global and local economic downturn would lead to an increased number of businesses in distress and requiring support.

The above performance environment analysis highlights that LEDA is faced with wide-ranging internal and external issues that present both opportunities and threats. Of note is the opportunity to enhance the mobilisation and leveraging of strategic partnerships; and enhancing relationships with the district and local municipalities in the province.

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3.2. STAKEHOLDER ANALYSIS INFORMING THE STRATEGIC PLAN

In fulfilling its strategic intent, it will be critical for LEDA to effectively manage stakeholder relations and collaborative partnerships. These must address both stakeholders identified in terms of the LEDA mandate and others that may influence the achievement of the organisation’s vision and mission; and must include an enhanced focus on customer needs and business and market research and intelligence. It must also include a focus on relations with Local Economic Development Departments, Private Sector partners and cross-boundary economic institutions and entities.

With the above considerations in mind, LEDA places its stakeholders at the apex of its strategic thinking and resultant planning. Stakeholder priorities are a critical consideration in the development of this Strategic Plan. The following table reflects key stakeholder considerations and programmes considered in the planning discussions:

Key Stakeholder Group Projects / Programmes required to meet the expectations of the stakeholder group

LPG departments

Equity Partners / Investors

National departments

Other SOE’s

Professional Institutions / Research and academic institutions

Project Partners / International organisations / NGO’s / Civil Society

Clients / customers / beneficiaries

EXTERNAL STAKEHOLDER GROUPINGS

• Investigate and leverage opportunities for information sharing and collaboration to achieve increased impact.

• Identify and leverage funding sources and opportunities.

• Financial leveraging.• Identify funding and implementation opportunities of identified

high-impact projects and programmes.


• Identify and leverage funding sources and opportunities.


• Sharing of research resources and outputs.• Shared research repository.• Joint funding of research projects.

• Identify funding and implementation opportunities of identified high-impact projects and programmes.

• Conclude MOU’s with specific agreed upon project and implementation timeframes.

• Implement improved customer relationship management.• Develop value-adding, demand –driven products and services.• Develop exit strategies for all redundant assets in all non-

strategic areas.• Implement an automated loan application system.• Implement a learner tracking system.

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Social Partners / Broader Labour Movement / Youth Formations / GEYODI structures

Business Community

Suppliers

• Ensure awareness around LEDA and its programmes• Encourage leveraging of opportunities from LEDA programmes• Involvement and consultation where appropriate

• Develop strategic partnerships with businesses within the region.• Identify and focus on high-impact catalytic projects.• Ensure greater execution of identified projects.

• Introduce e-Procurement.• Timeous payment for work completed.• Supplier development to ensure that procurement is aligned with

articulated Objectives and objectives


EXTERNAL STAKEHOLDER GROUPINGS

Local Government Structures

Traditional Authorities / Religious Groups

Media

Shareholder / Department

Subsidiaries and divisions

LEDA Group Employees


• Identify and leverage funding sources and opportunities.• Support i.t.o. research and other specialist skills

• Ensure awareness around LEDA and its programmes• Encourage leveraging of opportunities from LEDA programmes• Involvement and consultation where appropriate

• Ensure awareness around LEDA and its programmes• Communication of specific projects and achievements• Partner in creating public awareness of LEDA and its

programmes

• Execute the mandate.• Ensure alignment to policy.• Ensure accurate and timeous reporting.• Manage expectations through formal annual shareholder

compact.

• Develop and implement integrated planning and corporate calendar.

• Develop and implement integrated performance planning, monitoring, evaluation and reporting framework and templates.

• Ensure a fair and equitable workplace with compliance to all applicable labour law and policy.

• Nurture a culture of high performance through the development of shared values.

• Develop and implement Human Resource policies, procedures and tools based on best-practice.

INTERNAL STAKEHOLDER GROUPINGS

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In summary, the above stakeholder analysis discussions reflect that in order to create value within this context, LEDA must:

1. Clearly define LEDA’s role in the broader economic development value chain and ensure that systems and processes are established that ensure the efficacy of services towards creating the desired impact at community and citizen level;

2. Involve the community in all aspects of economic growth and development planning and roll-out of projects;

3. 3) Promote and communicate LEDA services and achievements to create brand visibility, brand equity and more satisfied customers and stakeholders;

4. 4) Revisit the Corporate Identity in light of this strategic plan and finalise the launch of the Corporate Identity;

5. 5) Improve quality service standards and turn-around times; and be responsive to customer needs, complaints and queries;

6. 6) Enhance internal communication to ensure the flow of vital organisational information at all levels of the organisation;

7. Increase the resource base to supplement the grant LEDA receives; and ultimately;

8. 8) Execute the political mandate and priorities towards sustainable and integrated economic growth and development in the region.

A comprehensive stakeholder management and branding strategy, aligned to this corporate strategic plan, will be developed and implemented so as to aid LEDA in dealing with certain of the stakeholder expectations and requirements highlighted above.

3.3. THE ORGANISATIONAL ENVIRONMENT INFORMING THE STRATEGIC PLAN

In order for any organisation to achieve its Strategic Objectives and objectives it is imperative that there is optimal alignment between its people, processes and systems. The review of LEDA highlighted a perceived current misalignment between the Strategic Objectives being articulated and the organisational environment which should support and enable the achievement of that strategic intent.

Organised labour / Employee representatives

• Develop relationships based on mutual respect for each other’s roles and mandates.

• Formalise recognition and collective bargaining agreements.• Develop a framework for social compact which can be

customised and adopted in each SEZ.


INTERNAL STAKEHOLDER GROUPINGS

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Key deficiencies identified included:

1. People Perspective:

The organisation was born from the amalgamation of four previous entities. The existing structure does not follow the logic of the strategy and, as such, there is a need for an organisational architecture which speaks to the new entity, its role and strategic direction.

Once the new structure has been designed it will be critical to properly populate it with the requisite skills to ensure capacity for delivery. Currently, many key posts are vacant.

There is also a need to build a LEDA culture based on shared organisational values. This would be driven through a comprehensive Change Management process which will need to ensure that all internal stakeholders are brought on board.

Of critical importance is the building of a culture of performance and excellence which can be supported by the implementation of appropriate policy, systems and tools.

2. Processes Perspective:

Some of the issues raised in the review process included, among others, the lack of proper information sharing and “handshakes” between the various parts of the business, the lack of timeous information to inform proper decision-making, funding challenges which threaten the successful implementation of programmes and projects, as well as cash constraints which may hamper the operations of the organisation.

This situation necessitates that detailed work is undertaken to address these challenges in a holistic and sustainable fashion. It is important that LEDA employ the appropriate research, methodologies and tools in the design of an operating model, a knowledge management approach and a sustainable funding model which supports the fulfilment of the LEDA mandate and strategy.

3. Systems Perspective:

The issue of the lack of an appropriate technological platform to support the work of the agency was highlighted as a major frustration and deficiency. This applies to the internal environment with systems covering the operations, document management, knowledge management, human resources as well as finance, marketing etc.

It equally applies to the external environment with systems supporting customer relationship management, automated loan applications, a repository for economic data, information on the region, and the like.

3.4. SUMMARY OF CRITICAL ISSUES ARISING FROM THE SITUATIONAL ANALYSIS

Based on the above situational analysis, the following key considerations require management intervention in the period 2015/16 – 2019/20.

The ideal is for management to develop a programme of action that is clearly divided between shorter term quick wins and longer term priority programmes and interventions. The quick wins, aligned to the longer term imperatives, should be aimed at stimulating ongoing action towards implementation of the strategic plan.

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In the area of enhancing stakeholder relations and partnerships, LEDA must:

1. Ensure that agreements entered into are specific in terms of areas of partnership, identifying key projects and the resources being committed to the project by each partner;

2. Ensure that partnerships allow for proper integration and co-ordination, financial leveraging, risk identification, mitigation and sharing, project prioritisation in terms of impact analysis;

3. Develop an approach and framework for addressing pronouncements that fall beyond the scope of the resources and capabilities of the organisation at a point in time;

4. Develop an appropriate brand and marketing strategy which places LEDA as a partner and provider of choice in the economic development space in the region.

In the area of enhancing delivery of its mandate and core business priorities, LEDA must:

1. Undertake a process of reviewing its current assets, programmes and projects with a view of consolidation by applying the criteria for project / intervention selection;

2. Develop a greater Research and Development capability to: • assist in the selection and prioritisation of projects;• become a credible source of detailed and accurate economic research.

3. Review current product and service offerings to ensure alignment with strategic Objectives and appropriate fulfilment of a market need;

4. Build financial modelling and project financing capabilities; and actively pursue an approach towards diversifying the LEDA resource and funding base.

In the area of optimising internal systems, processes and controls, LEDA must:

1. Improve the speed and quality of information sharing and communication in the organisation to ensure better co-ordination, alignment and decision-making;

2. Invest in the appropriate ICT platform, systems and tools to ensure greater organisational efficiency and effectiveness;

3. Ensure the security and availability of information through enhanced ICT security, records management and the implementation of an Enterprise Content Management System;

4. Develop and implement a service quality management approach supporting defined service delivery standards.

In the area of optimising human capital management and development and building a high-performance organisation, LEDA must:

1. Develop and implement a Human Resources strategy aligned to and in support of the corporate strategy. This strategy should address issues of:

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• Attracting and retaining critical skills;

• Targeted skills development;

• Nurturing a high-performance culture;

• Ensuring a values based environment;

• A healthy work-life balance for employees;

• A management culture that has at its core the belief that our most valued assets are our people and therefore the need to ensure a safe, equitable workplace where people feel valued and appreciated.

2. Revisit the organisational structure in support of the corporate strategy and prioritise the finalisation of critical appointments;

3. Undertake a comprehensive Change Management process to ensure the full integration of employees into one LEDA, living by the shared values of the organisation and building a brand that speaks to the strategic intent of the organisation through enthusiasm, commitment and performance.

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PART B:THE STRATEGIC FRAMEWORK OF THE LIMPOPO ECONOMIC DEVELOPMENT AGENCY FOR

2015/16 – 2019/20

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PART B: THE STRATEGIC FRAMEWORK OF THE LIMPOPO ECONOMIC DEVELOPMENT AGENCY FOR 2015/16 – 2019/20

The political, economic and social issues, discussed above, set the immediate context within which the Limpopo Economic Development Agency operates and creates its impact. This includes the various policy and strategy frameworks pronounced at national, provincial and regional level.

The Limpopo Economic Development Agency Strategic and Tactical Plan for 2015/16 – 2019/20 thus outlines the mandate, role and strategic intent of LEDA in response to this context.

4. THE ESTABLISHMENT MANDATE OF LEDA

At the apex of the legislative mandate informing the work of the Limpopo Economic Development Agency (LEDA), lies the South African Constitution which requires that all spheres of government work together to address poverty, underdevelopment, marginalisation of individuals and communities and other legacies of apartheid and discrimination.

More specifically, Limpopo Economic Development Agency (LEDA) was established in terms of the Limpopo Development Corporation Act (Act 5 of 1994, as amended). It is established as an integrated platform, culminating from the amalgamation of four historical agencies, namely: Trade and Investment Limpopo (TIL), the Limpopo Business Support Agency (LIBSA), the Limpopo Agricultural Development Corporation (LADC) and the Limpopo Economic Development Enterprise (LimDev).

It was envisaged that the new agency approach, in the form of LEDA, should directly stimulate “Industrialisation” in the province and importantly, should fully comprehend the notion that the integration of all economic agencies should be based on a singular approach to policy issues and relevant business strategies. It was understood that the stimulation of “Industrialisation” requires a public entity that has the capability to address challenges presented by the inherent nature of legacy economic under-development in the province.

In this regard, LEDA would constitute a key structural intervention to support the provincial government in stimulating and diversifying the industrial base, thereby enhancing provincial economic capacity and capability and lessening the dependence on the export of raw materials.

Furthermore, LEDA should provide an integrated platform for the full implementation of economic development activities emanating from the Limpopo Employment Growth and Development Plan (LEGDP). It should serve as the custodian of policy coordination and implementation, thereby assisting government in identifying specific high-impact projects that will accelerate and sustain the growth of the provincial economy and create productive and sustainable employment.

LEDA’s work and focus is governed by its Shareholders Compact which outlines the primary objects of LEDA as follows:

1. To be a stimulus and catalyst in enhancing provincial economic capacity;

2. To provide “thought leadership” by way of circumventing sporadic, uncoordinated and disjointed economic development projects, which in most cases work in direct contrast with stated policies and the economic interests of the province;

3. To seek to organise a more coherent system of economic delivery in the province;

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Relevant legislation, regulation or policy framework

Implication for the Limpopo Economic Development Agency

The Constitution of the Republic of South Africa, Act 108 of 1996

The Companies Act, 71 of 2008, as amended

The Constitution is the supreme law of the Republic of South Africa. It provides the legal foundation for the existence of South Africa, sets out the rights and duties of its citizens, and defines the structure of the government. All laws of the country must be consistent with the Constitution.

The Constitution requires that all spheres of government work together to address poverty, underdevelopment, marginalisation of individuals and communities and other legacies of apartheid and discrimination.

Government, Municipalities and all state entities derive their mandate from the Constitution.

This Act regulates the incorporation, registration, organisation and management of companies, including “State Owned Companies”.

The Act specifies the fiduciary and “due care” duties and responsibilities of “directors” of a company.

4. To act as custodian of policy implementation - assisting government in identifying specific high-impact projects that will accelerate and sustain growth and development and create productive and sustainable employment;

5. To lead government in planning and executing strategies towards shaping the future of Limpopo’s economy by shifting from a culture of disaggregation to a more collaborative approach. It will also take long term view to expanding the provincial economy; and

6. To pursue an industrialisation trajectory that is responsive to:

• The promotion of more labour-absorbing industrial sectors, with an emphasis on tradable labour-absorbing goods and services and economic linkages that catalyse employment creation;

• The promotion of a broader based industrialisation path that is characterised by greater levels of participation; and

• The intensification of Limpopo’s industrialisation process and movement towards a knowledge and Skills Based Economy.

5. THE LEGISLATIVE AND POLICY FRAMEWORK OF LEDA

Whereas the establishment mandate provides the context and mandate for the Limpopo Economic Development Agency, various national and provincial legislation, regulations and policy frameworks give effect to how the mandate should be implemented. The following frameworks and policies specifically inform the work and focus of the Limpopo Economic Development Agency:

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The Limpopo Development Corporation Act, 5 of 1994, as amended

The National Development Plan (2012)

This Act assigns a developmental mandate to LEDA and its subsidiaries in the Limpopo Province, for the purpose of economic growth and job creation.

It mandates LEDA, as a development corporation, with the objectives to encourage, plan, finance, coordinate, promote and carry out, either directly or indirectly, the development of the province and its people.

It specifies that LEDA conducts business undertakings or projects; focused on the areas of agriculture, commerce, industry, mining, training, tourism, public transport, housing, economic development and community development.

The Act further specifies that LEDA be a juristic person with limited liability and perpetual succession; and be capable of suing and being sued in its own name.

The Act stipulates that LEDA shall not in itself become an unfair competitor with the people it seeks to assist, but shall seek to meet the needs of the people of the province.

Seeks to create a “virtuous cycle of growth and development” by removing the most pressing constraints to investment and job creation in order to eliminate poverty and sharply reduce inequality in the country by 2030.

• It prioritises improving the country’s infrastructure while integrating the rural economy and transitioning to a lower-carbon economy, to improving the quality of education, achieving quality universal health care, building safer communities, reforming the public service and beating corruption.

• It reflects a new development paradigm that seeks to involve communities, youth, workers, the unemployed and business in partnership with each other, and with a more capable state.

• It stresses the need for jobs to be located where people live, for informal settlements to be upgraded, and for housing market gaps to be closed.

• The plan suggests that public infrastructure investment be set at 10% of the country’s gross domestic product (GDP).



The Developmental New Growth Path (2008)

Discusses decent work through meaningful economic transformation and inclusive growth. It argues that job creation is at the heart of economic success and that there needs to be a focus on youth employment. The New Growth path:

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• Brings focus on employment creation and seeks to achieve 5 million new jobs in the next decade – 2020. It identifies where employment creation is possible. It then analyses the policies and institutional developments required to take advantage of these opportunities;

• Identifies area of job drivers – key sectors;

• Compliments IPAP;

• Proposes macro and micro economic policy intervention to support more equitable and employment intensive growth.

Stresses the structural imbalances in the current economic growth path of the country. It argues that we have slower growth than our peers in other countries; that it is not the right type of growth; that is jobless growth.

It points out that although manufacturing is the biggest production sector and that the automotive sector doubled from 1994 – 2008, insufficient jobs were created. Whilst there has been strong growth in the natural resource based sectors (such as steel, aluminium, paper and pulp and cement, the rest of the manufacturing sector has stagnated. Employment has largely come from the service sector. The wholesale and retail sector has experience growth, but this is what IPAP describes as the wrong type of growth. Wholesale and retail growth comes from private debt extension, contributing to a widening current account deficit.

IPAP stresses that longer term increases in employment in all sectors of the economy need to be underpinned by higher growth in production sectors, led by manufacturing. It adds that there is a problem of low productivity in the manufacturing sectors that has to be addressed.

In terms of the Medium Term Strategic Framework Priorities as approved by cabinet at National and Provincial level, LEDA contributes substantively towards the following outcome and its associated outputs:

• Outcome 4: Decent employment through inclusive economic growth.

• Outcome 4 specifically reflects outputs relevant to LEDA related to the development of Special Economic Zones and corridors, industrialisation through targeted support to labour intensive sectors, Enterprise Development, Green Economy interventions, Sustainable Employment Creation and Strategic Procurement supporting the decent work agenda.

The Medium Term Strategic Framework (MTSF) for government, 2009-14and

The Outcomes Based Approach (2010)

The National Industrial Policy Action Plan (IPAP2 and IPAP 2013-2016)

and

The aligned Limpopo Provincial Industrial Development Strategy (PIDS)



The Developmental New Growth Path (2008)

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• The National Small Business Act 1996, as amended

• The Agricultural Product Standards Act, 1990

• The Abattoir Hygiene Act, 1992

• The Marketing Act, 1968

• The Conservation of Agricultural Resources Act, 1983

• The Environment Law Rationalization Act, 1997

• The Consumer Protection Act, 2008

• The Cooperatives Act, 2005

• The Electronic Communications and Transactions Act, 2002

• The Minerals and Petroleum Resources Development Act, 2002

Various Sector Specific Legislation and Policies

The Limpopo Employment, Growth and Development Plan, 2009 – 2014



The LEGDP reflects a commitment to ensuring economic growth and socio-economic development which can be monitored and evalu-ated in terms of transformation, good governance, accountability and transparency.

The Plan includes increased government support and investment to targeted economic growth sectors. It sets out the aim for Limpopo to develop and sustain an integrated, socio-economical and economi-cally thriving and green environment with a unified society.

It challenges LEDA to play a significant role in economic development through the full implementation of the LEGDP priorities which include, amongst others:• Industrial Development Programme, focused on priority growth

sectors• Enterprise Development: SMME and Cooperative Development

Programme• Regional Economic Development and Integration Programme• Economic and Public Infrastructure Investment Programme• Agriculture and Rural Development Programme• Environmental and Natural Resources Development Programme• The Green Economy and the creation of green jobs• ICT and Innovation Enabled Industries Support Programme• Land and Agrarian Reform Programme• Spatial integration and mobility – as an input to support corridor

development and servicing of routes to link mobility into targeted development nodes and SEZ’s

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• The Skills Development Act 1998, as amended

• The National Land Transport Act, 2009

• The Land and Agrarian Reform Policy

• The Land Care Policy

• The National Integrated Small Business Development Strategy

• The SMME Development Strategy

• The National Skills Development Strategy 3

• The National Innovation Plan

• The draft Limpopo Investment Targeting Strategy

• The Public Finance Management Act 1999, as amended

• The Division of Revenue Act, 2010

• The Financial Intelligence Centre Act, 2001

• The Prevention of Organised Crime Act, 1998

• The National Credit Act, 2005

• The Occupational Health and Safety Act, 1995

• The Labour Relations Act, 1995

• The National Archives Act, 1996

• The Basic Conditions of Employment Act, 1997

• The Promotion of Access to Information Act, 2000

• The Employment Equity Act, 1998

• The Prevention and Combating of Corrupt Activities Act , 2004

• The Preferential Procurement Policy Framework Act, 2000

• The Promotion of Administrative Justice Act, 2000

• Treasury Regulations and Guidelines (as published)

• South African National Policy Framework for Women

• Empowerment and Gender Equality: December 2000;

• White Paper on Transforming Public Service Delivery (Batho-Pele White Paper).

Various Governance Legislation and Regulations



Various Sector Specific Legislation and Policies

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The above listed acts and policies are not exhaustive and it is recognised that the Limpopo Economic Development Agency must comply with all National and Provincial legislation and regulations, and all municipal by-laws, applicable to its operations.

This line of sight to broader legislation and policy frameworks will then inform the reporting of the Limpopo Economic Development Agency in terms of its contribution to service delivery and impact. It will aid in dialogue with the shareholder around the role of the Limpopo Economic Development Agency in the context of a broader discourse on the economic growth and socio-economic development environment.

Based on the above mandate and policy framework, the LEDA vision, mission and values have been formulated to provide overall direction and inspiration in meeting and exceeding the Agency’s mandate

6. THE LEDA VISION

A vision is an inspiring picture of a preferred future. It is not time-bound and serves as a foundation for all policy development and planning, including strategic planning. In delivering on its mandate discussed above, LEDA sets for itself the following vision:

“A leader of sustainable economic growth and job creation”

7. THE LEDA MISSION (AIM)

The mission then succinctly identifies what the institution does, why and for whom. In the budget documentation, the stated mission of a department, institution or programme should be the same as the “aim statement”” reflected in the budget vote.

In achieving its vision, the Limpopo Economic Development Agency defines its mission (aim) as follows:

“To implement integrated economic development initiatives in Limpopo, through:

• Accelerated industrial diversification;• Increased levels of trade and investment; and• Developing sustainable enterprises.”

The mission reflects the role of the Limpopo Economic Development Agency as the policy implementing arm of the province and LEDET, as follows:

1. To provide business intelligence and research and development towards innovative solutions – use scientific impact assessment tools and approaches to develop scenarios and business intelligence, monitor and evaluate the impact of projects, provide capacity support in areas of development - such as economic development research. Be a first point of call in terms of business and market intelligence;

2. To conceptualise economic programmes and drivers – unpacking policy directives, understanding what is unique to the region and will stimulate growth. Supporting integrated region-wide planning on economic

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development and investment planning and promotion. Understand the provincial value proposition and its comparative global competitiveness;

3. To identify and package development opportunities and leverage partnerships – to develop bankable business and/or project plans to best attract and leverage private sector and other partnerships and investment into targeted projects, to frame government’s involvement and exit / handover strategy and approach for identified projects and programmes. To optimise and leverage on what other partners are doing in the space;

4. To support Local Economic Development capabilities – where LED is by definition localised, to provide a regional view and supportive framework to LED in terms of how they might integrate with, and benefit from, a regional focus and strategic framework, and to identify and leverage opportunities for collaboration;

5. To customise support for priority economic sectors and sub-sectors – understand the value chain of the sectors targeted for support – then clearly target support towards industrialisation and the growth of labour intensive industries. Focus only on sectors that will most likely demonstrate impact and be consistent in terms of growth and development. Understand the unique selling proposition of Limpopo. Drive the global competitiveness of Limpopo – understand the global value chain;

6. To coordinate and manage the implementation of strategic infrastructure and economic interventions - to act as a “Centre of Excellence” providing capacity, capability and competence in project and programme management, project planning, project oversight and the management of development interventions; and

7. To facilitate trade and investment - sourcing and facilitating funding for investment projects within the province; support business expansion and retention; support and drive Enterprise Development and attracting new industries to the province.

8 THE INSTITUTIONAL VALUES OF LEDA

Values identify the principles for the conduct of the institution in carrying out its mission. In working towards the achievement of its vision and mission, LEDA subscribes to the following internal values which are in line with the Batho-Pele principles:

The obligation to account. To take responsibility for one’s actions.

To be results-oriented, cost effective; to ensure superior performance; to strive for client/stakeholder satisfaction.

To be professional, have a commitment to ethics, and focus on justice and fairness. To be honest, trustworthy, open and loyal.

The obligation to act in an open and transparent manner.

To display respect for different cultures and different perspectives. To encourage different views. To display tolerance for others. A commitment to employment equity and the rural / urban balance needed of the organisation’s focus.

LEDA VALUE STATEMENT WHAT IT MEANS IN PRACTICE

Accountability

Excellence

Integrity

Transparency

Diversity

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The values discussion specifically emphasised that the values require targeted management intervention to ensure they are visible and “lived”, and they should be assessed as part of the performance management approach of LEDA, under direction of the Managing Director.

9. THE STRATEGIC GOALS OF LEDA

The LEDA strategic goals are both reactive to the environment and development priorities and are also proactive in describing the desired future state. They are reflected as “outcomes” - specific and measureable statements describing what LEDA seeks to achieve as it pursues its strategic intent.

The LEDA strategic goals are both reactive to the environment and development priorities and are also proactive in describing the desired future state. They are reflected as “outcomes” - specific and measureable statements describing what LEDA seeks to achieve as it pursues its strategic intent.

Individually, each goal represents an aspiration LEDA seeks to achieve as it pursues its mission (aim). The attainment of each goal will require LEDA specific focus as well as, importantly, support and collaboration from both internal and external stakeholders.

LEDA GOALS

• Accelerated economic growth development and job creation • Developed sustainable enterprises in targets sectors of the economy

10. THE STRATEGIC OBJECTIVES OF LEDA

As the above sections reflect the LEDA strategic intent - the “impact” that LEDA wishes to create; focus now shifts to discussing “how this will be achieved” in the period to 2019/20. In the context of the hierarchy of performance information utilised to construct this document (a “theory of change” logic model) and where the vision and mission describe the “longer term impact”; the next level in the hierarchy is to describe the result areas necessary to deliver against the desired impact.

The approach sought to ensure that the strategic objectives are both reactive to the environment and development priorities and are also proactive in describing the desired future state. They are reflected as “outcomes” - specific and measureable statements describing what LEDA seeks to achieve as it pursues its strategic intent.

In response to the situational analysis, and in order to achieve its aim and deliver impact as outlined; the LEDA Strategic Framework identifies longer-term strategic objectives which will guide its focus and effort in the period 2015/16 – 2019/20; as follows:

1. Accelerated industrial diversification through strategic economic development interventions;2. Increase sustainable enterprises in targeted sectors of the economy; 3. Increased trade and investment in Limpopo; and4. Enhance public accountability; sound corporate governance and sustainable resource utilisation.

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Individually, each objective represents an aspiration LEDA seeks to achieve as it pursues its mission (aim). Collectively, the objectives define the full range of LEDA’s role and focus. The attainment of each objective will require LEDA specific focus, as well as, importantly, support and collaboration from both internal and external stakeholders.

The above strategic objectives are elaborated upon in the table below, by describing the focus areas for each objective:

LEDA STRATEGIC FOCUS AREAS OF THE OBJECTIVE OBJECTIVE

1. Accelerated industrial diversification through strategic economic development interventions

2. Sustainable enterprises in targeted sectors of the economy

• Analysis of opportunities into catalytic high impact projects. Identification and packaging of development opportunities – to best attract and leverage private sector partnerships.

• To provide commercial and industrial space and to manage the existing property portfolio

• Resource mobilisation / mobilisation of strategic partnerships.

• Special Economic Zones and Corridor Development - support the development of targeted industrial activities and investments to be located in SEZs, in support of regional industrial development.

• Initiate, support and grow Industrialisation

• The purpose of the Agricultural and Rural Development programme is to provide agribusiness opportunities and agricultural support to enhance economic development

• Land, Property and Infrastructure Development - identify opportunities for residential, industrial and commercial development, and collaborate with all levels of government on strategic issues regarding infrastructure development.

• Development of knowledge based economy through infrastructure, research and innovation.

• Project Planning, Oversight and Management of Development Interventions.

• Grow subsidiary businesses.

• Identify and participate in ventures to encourage BBBEE and SMME development across various sectors

• Development of sector focused enterprise development programmes (SMME’s and Coop’s)

• Enterprise development finance

• Development of aligned products and services for enterprises in growth sectors

• Strengthen skills development to support targeted enterprises

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4. Enhance public accountability; sound corporate governance and sustainable resource utilisation

• Internal business excellence, systems and process optimisation.

• Business intelligence and knowledge production – linked to effective knowledge management and institutional memory.

• Financial management and control and ensuring long term financial sustainability of the business.

• Governance, risk management and compliance.

• Accountability reporting and monitoring and evaluation.

• Adherence to policies and legislative frameworks and compliance with relevant statutory requirements

• An optimally capacitated and capable organisation.

• A high performance culture underpinned by an effective performance management system and approach.

• Ensuring safe and conducive working conditions.

LEDA STRATEGIC FOCUS AREAS OF THE OBJECTIVE OBJECTIVE

• Investment promotion - enabling investment environment and a positive investment image.

• Mobilisation of targeted trade and investment opportunities regionally and globally.

• Trade and investment facilitation, sourcing and facilitating funding for investment projects within the region.

• Trade and investment exhibitions and conferences.

• Developed funding strategy / funding model.

• Focus plan for investor recruitment and support.

• Utilise the current trade and investment protocols effectively.

• Trade promotion and targeted trade missions - increase the number of value added exports.

• Retention of and attracting new industries to the region.

• Export readiness - increase the number of value added exports.

• Attraction of industrialists

• Equity participation in viable investment projects

3. Increased trade and investment in Limpopo

In turn, each of the above strategic objectives has been unpacked into programmes.

The focus is on ensuring that the specified objectives are unpacked in such a way as to be specific and measurable, and against which the programmes and activities of LEDA might be implemented and reported upon.

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In turn, each of the above strategic objectives has been unpacked into programmes.

The focus is on ensuring that the specified objectives are unpacked in such a way as to be specific and measurable, and against which the programmes and activities of LEDA might be implemented and reported upon.

11. PROGRAMME NAME AND PURPOSE

PROGRAMME NAME PURPOSE OF THE PROGRAMME

1. Managing Director To give strategic direction (what the organization is all about, what the organization stands for, whom the organization supports, and uses what sorts of means) and effective strategic management process to ensure that the organization is able to achieve its mandate.

Effectively conduct on-going and annual performance monitoring of programmes and introduce corrective measures as needed, and distil lessons from programme implementation.

Position LEDA [through structured platform of stakeholders’ partnership] as a brand in the province

To provides financial and non-financial support to SMMEs and Cooperatives.

To provide technical and business skills.

To promote affordable home ownership to improve quality of life through access to finance

To identify and participate in mining ventures to encourage SMMEs development in the sector

To provide assurance

2. Enterprise Development and Finance Division

5. Subsidiaries 5.1 Risima Housing Finance

5.3 Corridor Mining Resources)

7. Internal Audit

4. Trade Investment Promotion

5.2 Great North Transport

6. Financial Management

8. Corporate Services

To promote the industrialisation of the province

To provide a sustainable, affordable, reliable and safe passenger transport service through operating a standardized bus fleet and to identify opportunities and participate in passenger transport ventures.

To ensure financial sustainability

To provide corporate service management support to LEDA

3. Industrialisation

To promote domestic and foreign direct investment.

9. Information, Knowledge and Programme Management

To provide integrated ICT, programme management and research and development services to LEDA and its subsidiaries to ensure organisational efficiency and effectiveness.

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12. THE STRATEGIC OBJECTIVES AND BUDGET PROGRAMMES OF LEDA

The strategic objectives allow LEDA to break them down into constituent elements or performance areas, which will allow performance elements to be logically clustered and reported against. Again, line of sight to the Decent Work Outcome Plan (Outcome 4, 5 and 6) and provincial strategic priorities are critical informants to the development of LEDA strategic objectives. Strategic objectives typically, though not always, are multi-functional, i.e. they require concerted effort by people from different parts of the organisation to work together to achieve them.

The table below reflects the strategic objectives of LEDA and the budget programmes:

1. Accelerated industrial diversification through strategic economic development interventions

PROGRAMME 3: Industrialization

PROGRAMME 6: Financial Management

PROGRAMME 5: Subsidiaries (GNT)

PROGRAMME 5: Subsidiaries (Risima)

PROGRAMME 5: Subsidiaries (CMR)

PROGRAMME NAME OUTPUTS DELIVERED BY BUDGET PROGRAMME

1.1 A viable and sustainable property portfolio to enable economic participation

1.2 Provide agribusiness opportunities and agricultural support to enhance economic development.

1.3 LEDA Capitalisation plans approved and submitted

1.5 Increased passenger volumes

1.4 Increased delivery of housing through home loan finance.

1.6 Increased investment in the mining sector

2. Sustainable enterprises in targeted sectors of the economy

3. Increased trade and investment in Limpopo

PROGRAMME 2: Enterprise Development and Finance


PROGRAMME 1: Managing Director

PROGRAMME 4: Trade and Investment Promotion


2.1. Development finance enhances the competitiveness of enterprises in all sectors of the economy

2.2. Incubation and funding enhances the competitiveness of enterprises in all sectors of the economy

3.2. Implementation of data repository for tracking Job Creation

3.1. Increased investment and trade opportunities.

2.3. Technical and business skills evelopment enhances the competitiveness of enterprises in all sectors of the economy

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13. ALIGNMENT OF STRATEGIC PROJECTS TO STRATEGIC OBJECTIVES

13.1. CONSIDERING PRIORITY ECONOMIC SECTORS FOR LEDA SUPPORT

As has been discussed previously in this document, the Industrial Policy Action Plan (IPAPII and IPAP 2013 - 2016), and the aligned Provincial Industrial Development Strategy (PIDS) have identified certain priority sectors.

In terms of these sectors and in defining the key strategic initiatives supporting its strategic objectives, LEDA has targeted its focus for the period to 2019/20 on the following economic sectors in the Limpopo province:

1. Green Economy and green industries;

2. Agriculture and agro-processing industries;

3. Metals, mining and minerals beneficiation;

4. Tourism and creative industries;

5. Capital and transport equipment;

4. Public accountability; sound corporate governance and sustainable resource utilization

PROGRAMME 1: Managing Director

PROGRAMME 6: Financial Management

PROGRAMME 7: Internal Audit

PROGRAMME 8: Corporate Services

PROGRAMME 9: Information, Knowledge and Programme Management

4.1. Effective leadership and enhanced corporate governance

4.2. Effective and efficient financial management

4.3. Strengthened internal controls

4.4. Accessible and quality legal services

4.5. Enhanced human capital for effective and efficient organisational performance

4.6. Optimised resource utilisation and logistical support

4.7. Increased LEDA brand awareness

4.8. Secure and reliable IT services

4.9. Effective knowledge management function

4.10. Improved programme tracking, communication and impact assessment

PROGRAMME NAME OUTPUTS DELIVERED BY BUDGET PROGRAMME

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6. Knowledge economy and technology and innovation industries.

13.2. PRINCIPLES INFORMING LEDA INVOLVEMENT IN PROJECTS

LEDA is faced with numerous opportunities and projects it could support and which could potentially positively impact on the economic Objectives of the region. Critically, a set of principles and criteria to guide LEDA intervention and involvement, and a clear strategy for exit from any institutional mechanisms is required. In summary:

1. Projects need to be in the target sectors identified;

2. Projects should not be someone else’s primary mandate;

3. Ensure no duplication with other entities or municipalities for support (e.g. IDC, SEDA, SETA’s etc.);

4. Projects need to be large scale or have significant impact (defined as job creation and inclusive growth), otherwise LEDA should support local municipalities to implement them;

5. SMME support should be targeted sector specific and be linked to multinationals and support to become competitive;

6. Training should be done locally with support from local or better placed institutions;

7. If necessary, projects need to be handed over to departments / agencies that are better placed to implement them.

A set of criteria for LEDA to participate in interventions is defined as follows:

1. Must support the LEDA mandate;

2. Market Gap or market failure;

3. Identified area or sector that requires stimulus;

4. Regionally relevant both in scale and location;

5. Commercially viable to crowd in both private and social investment but due to its often public service / public good orientation may have a very high risk profile – therefore unlikely to be attempted by the private section alone;

6. Often engaged in “new” industries, or expansion of existing industries into “new” areas, for which government involvement is important as a means to socialise risk;

7. Projects need some degree of government approval, support or co¬ordination between the three tiers of government.

Prior to commencement, LEDA must define its exit or commercialisation strategy before committing to any project or intervention. Thus, equally important, is a set of criteria for the exit of LEDA from operational support for interventions, as follows:

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1. Commercialised, and dividends are forthcoming;

2. Self-sustainable (financial sustainability);

3. Crowded in sufficient private sector investment;

4. Hand-over to a better placed entity, institution, department or local municipality;

5. Withdrawal or closure for un-sustainable projects

13.3. THE NATURE OF LEDA INVOLVEMENT IN PROJECTS

A further consideration is that LEDA, in fulfilling its mandate and intent, may be required to play a different role in different projects, as follows:

1. Leadership role:• Set out a strategy towards a new future;• Translate multiple visions into coherent programme;• Own the programme

2. Co-ordination/Governance role:• Help fragmented territory achieve co-ordination;• Cross border, cross tiers, cross sector organising;• Independent broker role;• Supporting shared ownership.

3. Investment role:• Build markets by acting within them;• Entrepreneurial, risk and cost sharing;• Assets, investment, marketing, infrastructure, planning, promotion;• Outside normal ambit of Government.

4. Implementation role:• Dedicated professional teams. Un-distracted by other mandates. Project management skills. Financial

skills. Monitor progress and impacts;• Innovation. New tools, new approaches, new partners.

5. Commercial “Attaché” role:• Promotion of confidence of investors, developers, and business customers;• Maintaining market position for local and sub-regional economies.

The assumption is made that LEDA will work actively with all spheres of government and many partners across the private sector and the development funding community in order to leverage the necessary financial and human capital investment into its initiatives.

LEDA will seek to streamline its processes, reduce the bureaucracy and therefore improve its efficiency and effectiveness. A deep understanding of the expected economic outcomes of projects will ensure that LEDA is

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focused on developing the targeted or identified growth sectors, thereby ensuring that there is updated and continued research in these areas.

14. THE LEDA DELIVERY MODEL AND VALUE CHAIN TO SUPPORT THE STRATEGY

A business model is then a simplified representation of an organisation’s business logic. It describes what a company offers its customers, how it reaches them and relates to them, through which resources, activities and partners it achieves this and finally, how it earns its money. An operational model, on the other hand, is an abstract representation of how an organisation operates across process, organisation and technology domains in order to accomplish its function and deliver its business model.

The following figure outlines the integrated operating / delivery model for the Limpopo Economic Development Agency:

Figure 5: Integrated LEDA Delivery Model / Value Chain

In terms of the above model, the integrated LEDA organisation requires a focus on:

1. Sound governance structures and support at both Group and internal level and substantive collaboration with the shareholder and stakeholders;

2. Targeted business and market intelligence that informs strategy and aligned service development in support of the mandate;

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3. Functions that support the mandate and all operate in support of a common vision “to lead economic growth and job creation through industrial diversification”;

4. A project approach to doing business and a systems approach to achieving objectives;

5. A focus on teamwork and collaboration - combining areas of expertise and a “multi-skilling” approach;

6. Consistent leadership and solid capacity at all levels of the organisation;

7. Everyone must think organisationally and understand the different roles in the organisation; and

8. A clear understanding where accountability in the value chain lies. This is both at Group level (between LEDA and its subsidiaries) and internally to LEDA itself (between its various programmes), so as to minimise duplication and potential inefficiencies in the system.

These value chain considerations then inform the approach to organisation design. While continuity is an important consideration, it is critical that the above capabilities find their expression in the organisation design and job profiles of LEDA moving forward.

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15. THE ORGANISATION DESIGN OF LEDA TO SUPPORT THE STRATEGY

A key principle of organisation design is that structure follows strategy and the following section thus discusses LEDA design considerations which are aimed at capacitating the Agency to provide an effective, strategic and operational service, in an integrated manner.

16. THE APPROVED ORGANISATIONAL STRUCTURE

At the time of developing this corporate strategy plan, the following organogram reflects the current approved organisational structure which is partly in effect and should be fully capacitated:

Figure 6: The High-Level Organisational Structure

MANAGING DIRECTOR

Intenal Audit

Group COO

SEZ and Corridor Development

Property & Infrastructure Development

Agri Business Development

Project Facilitation & Funding

Facilitation & Administration

Information Technology

Business Support

Training & Development

Financial Support

Research and Development

Programme Management

Human Resources

Legal Services & Compliance

Marketing & Communications

Finance

Supply Chain

Growth Sectors

Investment Promotion

Trade and Export development

IndustrialisationInformation

Knowledge & Programme

Management

Enterprise Development &

Finance

Investment and Trade Promotion

Corporate Services

Finance

Group Company Secretary

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17. LEDA RESOURCE CONSIDERATIONS TO SUPPORT THE STRATEGY

The LEDA operational (opex) budgets include many activities related to the operations of LEDA and to trade, investment facilitation and promotion that are considered ongoing activities. However, MTEF funding does not include other requirements, and does not address the capital requirements or infrastructure development costs of LEDA projects. This necessitates a funding model and an approach geared towards supporting the fulfillment of the LEDA mandate.

18. LEDA FUNDING MODEL AND APPROACH

The following figure reflects the proposed funding model and approach for LEDA, in support of the strategy:

Figure 7: The LEDA Funding Model

The above figure reflects that LEDA finds itself in a paradoxical situation in that it is expected to significantly drive economic development projects and interventions, which would initially require substantial funding to conceptualise and package, as commercial funding tends to require bankable project plans and matching resources. LEDA would be required to fund its own operational overheads and research functions, as it is unlikely that commercial / alternative funding would cover these expenses – unless a “cost recovery” model or project management fee is levied. This is an option that should be explored.

However, it is more likely that these base costs would need to be funded from LEDA’s other revenue sources, as the funds sourced from the fiscus through grants is to be dedicated to funding LEDA’s “public good” services and functions and projects which deliver shareholder value and are defined in the MTSF.

Project origination and project management fees levied

STRATEGIC ECONOMIC INFRASTRUCTURE DEVELOPMENT AND INTERVENTIONS

SHAREHOLDER VALUE - DELIVERY OF MSTF PROJECTS FOR SHAREHOLDER

MARKET AND BUSINESS INTELLIGENCE TO SUPPORT SHAREHOLDER DECISION MAKING

OPERATIONAL AND PERSONNEL CAPACITY AND CAPABILITY(Essential for the provision of all the above services)

Plans, permits

and designs

Plans, permits

and designs

Bulk services and land and

logistical requirements

Bulk services and land and

logistical requirements

Packaging of development opportunities

Strategy and programme

conceptualisation

Basic staff establishment

Corporate support service

Organisatianal infrastructure

and assets

Monitoring and reporting costs

Governance requirements

District development

plans and sector development

plans

Brand building and stakeholder engagement

Economic impact

analysis and research

IGR coordination,

fora and interaction platforms

Trade and investment facilitation

Business retention and

expansion, skills for the economy

Enterprise development and support (SMME’s

and Coop’s)

PPP negotiation and contracting, project coordination and

oversight

Construction and

development of infrastructure

Construction and

development of infrastructure

ICT and technology

infrastructure

ICT and technology

infrastructure

Commecialisation, management and

operation of projects

Commecialisation, management and

operation of projects

SHARED RISK / MATCHING

FUNDING FROM GOVERNMENT(Provice and

Municipal contribution to project costs

via risk sharing or matching mechanisms

ALTENATIVE FUNDING

(Funded from altenative funding sources)

FUNDED FROM THE FOCUS

(Via LEDA or other grants)

FUNDED FROM LEDA OWN REVENUE

(Dividents from Commercialised Projects, Profit

from subsidiaries, Management

Fees for Shared Services)

LEDA FOCUS FUNDING SOURCE

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Once bankable project plans have been developed and packaged, it would then be possible to seek investment or alternative funding for the implementation of these projects, but it is noted that there would still be a “matching” requirement burden on the province and/or district and local municipalities that could not be funded from the LEDA budget.

19. POTENTIAL ALTERNATIVE REVENUE AND FUNDING SOURCES

During the period of this Strategic Plan to 2019/20, in addition to grants arising from the fiscus, LEDA will need to enhance its focus on sourcing alternative funding to support its operations, functions and infrastructure projects. In this regard, LEDA will need to consider available funding sources and/or mechanisms, including but not limited to:

1. Grant Funds and Concessionary Loans – although it is appreciated that Grant funding alone would not be sufficient to fund large scale interventions or infrastructure projects.

2. Commercial Revenue - through dividends, levied management or shared services fees, loan repayments etc. Also, a “cost recovery” model for projects may be levied

3. Alternative Limpopo approach to infrastructure funding – the LPG might implement a policy approach in the region that implements some level of overarching infrastructure budget contributions across all department budgets. (For example, a 2% overarching infrastructure budget allocation to be used for the implementation of infrastructure projects.)

4. Public-Private-Partnerships (PPP) – for example, a private sector company might finance the building of a bridge and operate under a concession (tolling the bridge) for an agreed period, making use of an agreed exit strategy, such as handing it over to government. The private company would raise money on the capital markets in the normal way, providing opportunities for a number of investors to be involved through a form of Special Purpose Vehicle (SPV). A PPP is by definition based on a finite time period and revenue is derived through the operations over the concession period, with profits often going to the concessionaire.

5. Private Investment – an example of this approach is where a SPV is created to finance a power generating plant. A private sector company arranges finance to build the generating plant and sell electricity to the national and regional grids at the market price on a build-operate-own (BOO) basis. Public sector intervention is required to ensure that regulations do not preclude this type of investment and perhaps to provide assistance in establishing the SPV.

6. Joint Ventures - a joint venture is a strategic alliance where two or more parties form a partnership to share markets, intellectual property, assets, knowledge, and profits.

7. Sale or Lease of Land –sale or swop of state-owned land could provide funding for more strategic interventions and reduce liabilities related to unused land. Lease of land parcels to strategic partners for development may also increase development. Current policy on the sale and lease of land might need to be revisited.

8. Official Development Assistance - Various opportunities exist for international countries or organisations to provide donor funding for infrastructure projects and should be actively explored.

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In all of the above, there is a requirement for LEDA to develop specialised skills in areas such as project financing and deal structuring given the requirement to model some projects in the form of PPPs, or along commercial and business principles.

20. ADDITIONAL RESOURCING CONSIDERATIONS

1. Although revenue generating, all funds generated through commercial and funding activities are to be utilised to offset expenses incurred in the delivery of the mandate.

2. LEDA must try ‘NOT to be all things to all people’. The organisation must delimit where they will, and/or will not, focus. This is to ensure that available resources are utilized and deployed optimally.

3. LEDA will need to strengthen capacity in terms of project financing, project implementation and project oversight moving forward.

4. The LEDA Board will have a critical role to play in advocacy, lobbying and enhancing the visibility of LEDA.

5. Aspects such as LEDA organisation design will need to be optimised to improve interconnectivity between employees and across subsidiaries and business units, to remove duplication and ensure efficiencies.

6. Leadership style (and the consequent impact on organisational culture) will have to be reviewed such a way that innovation and qualified risk-taking is encouraged.

7. Target setting and monitoring will be crucial to the successful implementation of the strategy.

The resource considerations outlined in this section have thus informed the LEDA budget and MTEF projections outlined in the aligned LEDA 2015/16 Business Plan.

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PART C:LINKS TO OTHER PLANS

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PART C: LINKS TO OTHER PLANS

21. LINKS TO THE LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANS

The matter of Long-Term Infrastructure and Capital Plans is not applicable to the Limpopo Economic Development Agency at this stage.

22. CONDITIONAL GRANTS

The matter of conditional grants is not applicable to Limpopo Economic Development Agency at this stage.

23. PUBLIC ENTITIES

The Limpopo Economic Development Agency has no Public Entities.

24. PUBLIC-PRIVATE PARTNERSHIPS

There are currently no Public-Private Partnerships in place.

25. MATERIALITY FRAMEWORK

In terms of Treasury Regulation 30.1.3; it is hereby stated that LEDA has a Materiality Framework in place.

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PART D:TECHNICAL INDICATOR DESCRIPTORS

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PART D: TECHNICAL INDICATOR DESCRIPTORS

26. TECHNICAL INDICATOR DESCRIPTORS

Indicator title Net Increase in number of tenants

Short definition The net increase in number of tenants is the net effect of new tenants moving into LEDA premises less old tenants vacating LEDA premises.

Purpose/ Importance To determine occupancy rate of LEDA rented premises on a monthly basis

Source/Collection of data AZ Rental system.

Method of calculations Compare the new tenants leasing LEDA premises to those vacating LEDA rented premises to obtain net effect

Data limitations None

Type of indicator Output

Calculation type Cumulative

Reporting cycle Quarterly.

New indicator No

Desired performance To achieve higher than the target

Indicator responsibility Head: Land and Property Development.

Indicator title Rand value of collection.

Short definition Refers to the current rental rates versus rental collected from all tenants within our premises.

Purpose/ Importance To determine if rental raised from tenants is collected on a monthly basis.

Source/Collection of data AZ Rental system.

Method of calculations rental billing matched to cash in bank=rand value of collection

Data limitations The adjustments made to tenants’ accounts may affect the reliability of rental collected. Only rental of tenants whose lease period is still running will be calculated.



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Indicator title Rand value of collection.

Reporting cycle Quarterly.

New indicator No

Desired performance 100%

Indicator responsibility Head: Land and Property Development.

Indicator title Rand value of arrears collected.

Short definition The rand value of arrears collected is the arrear rental collected from all tenants within our premises.

Purpose/importance To determine if arrear rental is collected.

Source/collection of data AZ Rental system is used to collect the information.

Method of calculation AZ Rental system is used to collect the information.

Data limitations The adjustments done to the tenants’ accounts may affect the reliability of arrear collected.

Type of indicator The rand value of arrears collected measures the outcomes or impact on the arrear rental balance.

Calculation type The performance is cumulative.

Reporting cycle The rand value of arrears collected is reported quarterly.

New indicator The indicator continued without change from the previous year.

Desired performance The actual performance high than the target is desirable.

Indicator responsibility Head Land and Property Development

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Indicator title Number of Agricultural hub projects implemented

Short definition Implementation of Agricultural hub projects

Purpose/importance Food security, creation of jobs and access to Agribusiness opportunities

Source/collection of data Records of projects implemented

Method of calculation Simple count



Calculation type Non-Cumulative

Reporting cycle Quarterly

New indicator No

Desired performance Increase the number of hubs

Indicator responsibility Head :Special Projects Agribusiness

Indicator title Number of Agricultural projects facilitated

Short definition Number of high impact agribusiness projects implemented (produce high volume of products, high number of jobs and supply consistently to the market)

Purpose/importance Contribution to the Gross Domestic Product of the Province

Source/collection of data Records of projects implemented






New indicator No

Desired performance Increase in high impact projects


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Indicator title Hatching of day-old chicks

Short definition Number of day-old chicks hatched and sold

Purpose/importance Monitor sustainability of the hatchery

Source/collection of data Records of day-old chicks hatched and sold






New indicator No

Desired performance To hatch and sell high quality day-old chicks in order to maintain consistent supply to clients


Indicator title Number of approved bankable project plans

Short Definition Number of projects that can receive funding

Purpose/Importance Growing the project pipeline of the agency

Source/Collection of Data Bankable project plans and approved

Method of Calculation Number of bankable project plans submitted and approved

Data Limitations None

Type of Indicator Output

Calculation Type Non-cumulative

Reporting Cycle Quarterly

New Indicator No

Desired Performance To get funding for every bankable project

Indicator Responsibility Executive Manager: Trade Investment Promotion

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Indicator title Rand value of new home loan finance

Short Definition The value of the amount financed towards home loans

Purpose/Importance Tracks the value of investment made by LEDA through home loan finance

Source/Collection of Data The Loan Register

Method of Calculation Every amount financed is recorded once in the Loan register



Calculation Type Cumulative


New Indicator No

Desired Performance An increased and sustained delivery of housing through home loan finance

Indicator Responsibility Chief Executive Officer: Risima Housing Finance Corporation

Indicator title Number of passengers transported

Short definition The number of passengers transported

Purpose/importance Tracks the number of passengers transported by GNT buses

Source/collection of data Q- merit system

Method of calculation Additions



Calculation type Non-cumulative


New indicator No

Desired performance Increase in number of passengers transported

Indicator responsibility Chief Operation Officer: Great North Transport

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Indicator title Number of cooperatives supported

Purpose/importance We are measuring the progress made in supporting cooperatives. The cooperative development is one area the government has earmarked for the inclusive participation of the communities in the mainstream economy. The education and training component of the development programmes for cooperatives is derived from the national cooperative 2010 strategy developed by the Dti as well as the Limpopo Co-operative Development strategy of 2013 aligned to the National strategy. Source/collection of data LEDA database and Companies Intellectual Property Commission (CIPC)

Method of calculation Add the number of cooperatives supported





New indicator No

Desired performance Flourishing and competitive cooperatives are that are able to create sustainable jobs

Indicator responsibility Executive Manager: Enterprise Development and Finance Division

Indicator title Number of cooperatives supported

Short definition Refers to cooperatives that have been supported (registration, training, mentorship, financial etc.) by LEDA.

Indicator title Rand value invested in mining and beneficiation opportunities.

Short definition Total rand value invested in mining and beneficiation opportunities.

Purpose / importance Tracks funds invested in the development of mining opportunities.

Source / collection of data Financial records

Method of calculation Rand value of investments made in mining projects.

Data limitation None

Type of indicator Inputs



New indicator No

Desired performance More investments

Indicator Responsibility Chief Executive Officer: Corridor Mining Resources

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Indicator title Number of SMMEs incubated

Short definition Business incubation is an entrepreneurial and developmental process designed to support new and existing SMMEs and co-operatives with an array of services aimed at ensuring the sustainability over a period of 24 months.

Purpose/importance Incubation of businesses is a programme that ensures continuous provision of non-financial and financial support to SMMEs and Co-operatives, which therefore contribute to their survival and sustainability resulting in economic growth and job creation.

Source/collection of data LEDA database and Companies Intellectual Property Commission (CIPC)



Type of indicator Outputs



New indicator No

Desired performance Increased number of sustainable incubated enterprises


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Indicator title Number of Co-operatives receiving grant funding

Short definition Refers to new cooperatives supported (registration, mentoring, training, financial etc.) by LEDA. The National Cooperatives Act No14 of 2005 has made provision for the registration of cooperatives in South Africa as per defined sectors and categories/level.

Purpose/importance A cooperative is an alternative business ownership model that is regulated through the Cooperatives Act No.14 of 2005. For purposes of compliance there are measures that must be enforced to ensure the smooth functioning of the cooperatives within the ambit of the law. Cooperatives are poised to play a key role in the development of marginalised communities and provide sustainable rural livelihoods.

Source/collection of data LEDA database and Companies Intellectual Properties Commission (CIPC)






New indicator No

Desired performance Thriving, competitive and sustainable cooperatives


Indicator title Number of loans Short definition Number of loans granted to SMMEs

Purpose/importance Tracks the value of investment made by LEDA through SMME financing

Source/collection of data Loan Agreements and AccSolve reports

Method of Calculation Loan Agreement match to AccSolve reports





New Indicator No

Desired performance Increase in number of SMME’s funded

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Indicator title Number of loans


Indicator title Number of trainees trained on technical skills

Short definition Number of learners trained

Purpose/importance Track the number of learners registered and graduated.

Source/collection of data Learner registrations, attendance registers and graduation information






New indicator No

Desired performance The indicator is to monitor the actual number of learners trained against set targets


Indicator title Rand value of Investment facilitated

Short definition The amount in Rand of investment that accrued to the Limpopo Province as a direct result of LEDA FDI activities to attract that investment Purpose/Importance Measure Contribution to the GDP growth of the province

Source/collection of data Letter of commitment from the investor or the quarterly investment report from investor in terms of capital expenditure associated with the investment


Data Limitations Letter of commitment may not necessarily translate into investment

Type of indicator Outcome.



New indicator Yes.

Desired performance Exceed annual target

Indicator responsibility Executive Manager: Trade Investment and Promotion

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Indicator title Rand value of Investment facilitated

Short definition The amount in Rand of investment that accrued to the Limpopo Province as a direct result of LEDA FDI activities to attract that investment Purpose/Importance Measure Contribution to the GDP growth of the province

Source/collection of data Letter of commitment from the investor or the quarterly investment report from investor in terms of capital expenditure associated with the investment


Data Limitations Letter of commitment may not necessarily translate into investment

Type of indicator Outcome.



New indicator Yes.

Desired performance Exceed annual target


Indicator title Rand value of exports facilitated

Short definition The amount in Rand value of exports received by Limpopo based businesses through direct result of LEDA activities to promote exports.

Purpose/Importance Contribution to GDP of the Province

Source/collection of data Letter of exports rand values facilitated from exporters.


Data Limitations The long lead time of export realization into actual income flow may delay the real total monetary value received.


Calculation type Simple count


New indicator Yes

Desired performance Exceed annual export rand value


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Indicator title Implementation of Musina Special Economic Zone (SEZ)

Short definition Development of the land to attract investors and putting in place governance structure

Purpose/ Importance Regional Industrialization, job creation and foreign and domestic direct investment attraction

Source/Collection of data Feasibility studies and project implementation reports

Method of calculation Progress reports.


Type of indicators Input

Calculation type Non- cumulative


New indicator Yes

Desired performance Attraction of investment.

Indicator Responsibility Project Executive

Indicator title Implementation of Tubatse Special Economic Zone (SEZ)

Short definition Development of the land to attract investors and putting in place governance structure

Purpose/ Importance Regional Industrialization, job creation and foreign and domestic direct investment attraction

Source/Collection of data Feasibility studies and project implementation reports

Method of calculation Progress reports.


Type of indicators Input

Calculation type Non- cumulative


New indicator Yes

Desired performance Attraction of investment.

Indicator Responsibility Project Executive

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Indicator title Number of monthly financial reports submitted to Treasury

Short definition Compliance reports required in terms of PFMA and Treasury Regulations

Purpose or Importance To report to Treasury on the financial results of LEDA

Source or collection of data Financial system – Accpac

Method calculations Simple count



Calculation Type Cumulative

Reporting Cycle Monthly

New Indicator No

Desired performance To ensure timeous and accurate reporting

Indicator Responsibility Group Chief Financial Officer

Indicator title Unqualified audit report from Auditor General

Short definition To obtain unqualified audit opinion for LEDA group.

Purpose or Importance This ensures good financial management and enhances LEDA’s business opportunities.

Source or collection of data Audit records and Annual Financial statements




Reporting Cycle Annually

New Indicator No

Desired performance To ultimately obtain clean audit opinion.

Indicator Responsibility Group Chief Financial Officer

Indicator title Annual Board Organisational Performance rating

Short definition The assessment of the effectiveness of the Board and its committees in relation to the performance of their roles in line with the Companies Act of 2008 as amended, the PFMA and other prescripts.

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Indicator title Annual Board Organisational Performance rating

Purpose /importance To determine if the Board and its committees have performed their oversight responsibility as prescribed.

Source/ collection data Annual Board Plan and reports

Method of calculation Simple Count


Type indicator Outcome


Reporting cycle Annually

New indicator No

Desired performance Effective oversight.

Indicator responsibility Group Company Secretary

Indicator title Implementation of approved rolling audit plan

Short definition Number of audits to be executed

Purpose or Importance Track the number of audits that have been executed to monitor improvements in internal controls within the group

Source or collection of data Internal audit reports





New Indicator No

Desired performance To improve systems of internal controls, Governance and compliance issues.

Indicator Responsibility Head: Group Internal Audit

Indicator title Implementation of contracts management system.

Short definition Is a tool to monitor contracts

Purpose /importance Effective contracts management

Source/ collection data Signed contracts.

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Indicator title Implementation of contracts management system.



Type indicator Output



New indicator No

Desired performance Optimum management of contracts

Indicator responsibility Executive Manager: Corporate Services

Indicator title Quarterly report on finalised legal matters

Short definition Number of all claims finalised by and against the agency

Purpose /importance To report on finalised legal matters

Source/ collection data Court orders






New indicator No

Desired performance Finalised legal cases

Indicator responsibility Executive Manager : Corporate Services

Indicator title All staff signed performance agreements by end of 1st Quarter

Short definition Contract between employer and employee containing the required performance standards

Purpose /importance It provides the mechanism for monitoring and enhancing performance

Source/ collection data Performance contracts


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Indicator title All staff signed performance agreements by end of 1st Quarter





New indicator No

Desired performance All employees to sign performance agreements before end of April of each financial year


Indicator title Quarterly Appraisals within 4 weeks of end of quarter

Short definition The percentage of employees who have submitted their quarterly performance Appraisal reviews

Purpose /importance For improving organizational performance and employee growth and development

Source/ collection data Performance Management Data

Method of calculation 100% of staff on Performance Management System





New indicator No

Desired performance Achieve 100% of the 2%


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Indicator title Percentage payroll spend on staff training and development

Short definition The percentage of the payroll spent on training and skills development of staff

Purpose /importance For compliance with relevant legislation and skills development

Source/ collection data AccPac and VIP Payroll

Method of calculation 2% of the budgeted and approved payroll





New indicator No

Desired performance Achieve 100% of the 2%


Indicator title Implementation of records management system

Short definition This is a tool to manage the records of the entity

Purpose /importance Safeguarding of the agency’s records and compliance with relevant legislations

Source/ collection data Records management policy and systems






New indicator No

Desired performance Effective record managements system


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Indicator title Approved and implement enterprise architecture plan

Short definition Enterprise architecture plan is blue print or master plan for development and implementation of IT systems

Purpose /importance It provides the assurance that systems are deployed following an approved plan/road map.

Source/ collection data User requirements, project charters, project reports




Indicator title Implementation of multi-year marketing plan

Short definition A plan developed to brand, communicate and market the agency

Purpose /importance Enhance image and stakeholder relations.

Source/ collection data Website, Intranet, products and offerings and stakeholder engagement reports






New indicator No

Desired performance Enhanced image, stakeholder relations and effective communication


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Indicator title Approved and implement enterprise architecture plan



New indicator Yes

Desired performance The aim is to ensure successful roll out of business systems to improve or optimise the efficiencies and effectiveness.

Indicator responsibility Executive manager IKPM

Indicator title Implementation of the Knowledge Management Plan

Short definition A blue print for implementing knowledge management and research and development projects

Purpose /importance The Knowledge Management Plan enables LEDA to determine the key projects to be deployed in order of priority

Source/ collection data Users requirements and quarterly project reports


Data limitations Implementation of knowledge management projects takes a longer period and therefore outputs may be measured in terms of project milestones over a year as opposed to the actual projects rolled-out

Indicator title Percentage systems uptime

Short definition The availability of key IT business systems in LEDA.

Purpose /importance Ensure optimal IT business systems availability to enable LEDA to conduct its business operations efficiently

Source/ collection data IT service management reports

Method of calculation Percentage systems uptime=no of days system available in quarter /no of working days in quarter X100

Data limitations Multiple systems


Calculation type Non -Cumulative


New indicator No

Desired performance 100% availability of systems

Indicator responsibility Executive Manager: IKPM

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Indicator title Implementation of the Knowledge Management Plan




New indicator Yes

Desired performance Improved knowledge management

Indicator responsibility Executive Manager IKPM

Indicator title Implementation of a PMO framework

Short definition Is a co-ordinated management of a portfolio of projects to achieve a set of business objectives.

Purpose /importance The PMO framework ensures that there is a uniform approach to programme and project management .

Source/ collection data Programme and project charters and reports






New indicator Yes

Desired performance Improved programme and project management

Indicator responsibility Executive manager IKPM

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NOTES

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NOTES

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NOTES


L i m p o p o E c o n o m i c D e v e l o p m e n t A g e n c y

E n t e r p r i s e D e v e l o p m e n t H o u s eM a i n R o a d , L e b o w a k g o m o , 0 7 3 7

P. O B o x 7 6 0L e b o w a k g o m o , 0 7 3 7

Te l : + 2 7 1 5 6 3 3 4 7 0 0 F a x : + 2 7 1 5 6 3 3 4 8 5 4

E m a i l : i n f o @ l i e d a . c o . z aw e b s i t e : w w w. l i e d a . c o . z a

Documents

2015/16 – 2019/20 · OPEX Operational Expenditure PFMA Public Finance Management Act PMDS Performance Management and Development System POA Programme of Action PPP Public and Private