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Economic Development Department2014/15 Annual Report
Presentation to the National Council of Provinces
27-October-2015
1
•The Annual Report of the EDD present performance against the Annual Performance Plan
• Tabled in Parliament at the end of September 2015.
•Highlights a few areas covered in the Report - not a detailed account of activities.
Introduction
2
Annual Report period 1 April 2014 to 31 March 2015.
Transition between Administrations Global context: growth slowed down China’s demand for resources declined Developed markets growth lackluster Energy shortages Impact of industrial action While, Investor confidence in SA was still positive
Context at start and during year
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• The fell of our top four Exports signalled the end of the commodity boom
• Make progress on jobs more difficult
• Sending negative multiplier of the mining industry on the rest of the economy
• Hence the government’s 9-point plan 2015/16
Context: The commodity boom and growth
4
1,635
544
209
472
286
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1994199519961997199819992000200120022003200420052006200720082009201020112012201320142015
Janu
ary
1994
=100
iron ore coal gold platinum
Index of mineral prices
The APP provides basis for audit against pre-determined objectives
It does not include all the work of the EDD As required by the Auditor General, the
tables in the published Annual Report provide an overview of the number of achievements and reasons for variation
The APP
5
Performance Overview for the 2014/15
Overall Performance LevelBudget Programmes Total
indicatorsIndicators met against targets
Indicators exceeded against targets
Indicators not met against targets
Economic Policy Development 4 2 2 -
Economic Planning and Coordination 13 5 8 -
Economic Development and Social Dialogue 5 4 1 -
Total 22 11 11 -
6
EDD had 154 targets for its frontline work, and achieved 209 deliverables For the financial year under consideration, the Department spent 99.7% of
its allocated budget, met all its targets and exceeded its targets for 50% of the indicators included in its Annual Performance Plan (APP) for 2014/15.
For the year under consideration the EDD and all its agencies received unqualified audit reports.
Jobs grew by 405 000
Total employment of 15.5 million by March 2015
Women’s employment grew by 111 000 (total women in employment 6.8 million)
The number of jobs for youth increased by 233 000 (total youth jobs: 6.2 million)
Since adoption of the New Growth Path in October 2010, employment grew by 1.8 million
Economic Highlights: Jobs
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GDP is now R3,8 trillion for the year and growth rate was
1.6%
Investment grew by R47 billion
Government infrastructure spending was R254 billion
Agricultural value add grew by R5 billion or 7.5%
Manufacturing value add declined by R1.1 billion or 0.3%
Other economic Highlights
8
EDD’s focus in this period was on 8 key interventions:
1.Infrastructure
2.Industrialisation and investment
3.Trade measures
4.Competition measures
5.Provincial interventions
6.Social dialogue
7.Coordination
8.Equitable growth
EDD interventions for the reporting period
9
By March 2015, PICC monitored infrastructure projects spending had reached R1 trillion
R880 million was received from the Competition Commission for fines and penalties imposed by the Tribunal
39 mergers with employment and other public interest conditions that were imposed by the Competition Commission
ITAC tariff increases on 9 products ITAC tariff rebates (reductions) on 7 products
Institutional Highlights
10
Infrastructure & Investment
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EDD monitored spending patterns across the three spheres of government and provided feedback to Cabinet, Premiers and Metro mayors through the PICC
R 254 billion spent over the 12 months
Highest spend yet in SA Lays the foundation for
higher growth and development
work done ncludes: Operationalisation of the Infrastructure Development Act including appointment of members of governance structures (Secretariat, Manco and Council)Monitoring 18 Strategic Integrated Projects (SIPs) for Cabinet to provide high-quality, credible information for policy-makingResulting in 72 progress reports to CabinetTracking projects worth R1 trillion to monitor spending patterns
Intevention 1: Infrastructure
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EDD convened and provided assistance to PICC Secretariat and Manco meetings, including• meeting packs, documentation and discussion documents on key
issues • Identifying key blockages for consideration by the PICC• Developing a records of decisions for Cabinet and follow up of
decisions
• Provided Support for an innovative system: the PICC
Infrastructure
1323-04-21
Maintaining large-scale infrastructure spending
boosts growth and jobs
-200 000 jobs in PICC-monitored projects
-Substantial gains made for both large projects and at a
community level, though much remains to be done. Examples -
- 160 000 new houses connected with electricity
- Cities building new bus lanes for BRT
- BRT operational in three cities with thousands of users
- Tshwane every bus has free Wi-Fi, useful to students
Infrastructure
14
Examples of work done by EDD on infrastructure includes (cont..):
Completed project on skills for infrastructure with DHETAfter obtaining inputs from relevant departments, EDD drafted a discussion
document on how infrastructure supports inclusive growth, with a review of some key trade-offs, opportunities and risks
At Dirco’s Heads of Mission Conference on 25 August 2014, the Minister presented a strategic vision on how South Africa’s missions abroad can support domestic economic development through efforts with infrastructure and industrialisation
– The focus was on expanding markets for South African products as well as accessing technology and capital from abroad as appropriate
– The presentation had reference to the National Infrastructure Plan
Infrastructure
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Examples of work done by EDD on infrastructure includes (cont..):
Cable and Metal Theft, PICC recommendations on cable and metal theft were approved by the PICC Council at its 11th December 2014 meeting.
EDD coordinates and participates in the Presidential Business Work group: Infrastructure Technical Task Team. The work covers the following.
a) Create early visibility of government’s infrastructure build programme
b) Maintaining & upgrading municipal infrastructure
c) Strengthen mechanisms of incorporating and effective execution of developmental targets in programme and project procurement designs
d) Strengthen / optimise infrastructure procurement systems
d)Unlock private sector investment in and funding of infrastructure
Infrastructure
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Provided Support for President’s role as champion on
infrastructure in the African Union which includes unlocking key corridors, water and energy projects for the continent
The President also engaged with global business at the
World Economic Forum meeting in January 2015 in Davos, Switzerland on African infrastructure.
Infrastructure
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EDD engages pro-actively to unblock projects on behalf of the PICCCase study: Hobhouse in Mantsopa in the Free State
– A site visit was conducted by the PICC– It helped to unblock efforts to finalise a bucket eradication project– The technical quality of the system requires further work
Case study: Ngobi in Moretele in the North West– This is a Presidential Nodal Point Project identified as part of water and
sanitation hotspots under SIP 18 by the PICC– The PICC mobilised Eskom to connect electricity to boreholes. – The boreholes have been commissioned and are functional
Case study: Gibson Bay Wind Farm in the Eastern Cape– The wind farm will involve an investment of over R2 billion as part of
the renewable energy independent power producer drive– It required authorisation under the Subdivision of Agricultural Land Act – The PICC, with support from DAFF, unblocked the application, enabling
the wind farm to go ahead
Infrastructure
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Case study: Mokolo Crocodile Water Augmentation Project Phase 2 (MCWAP2)
- Conditional National Treasury approval for the increase in the pipeline was obtained.
Case study” Olifants River Water Resource Development Programme (ORWRDP Phase 2)
- The directive for ORWRDP Phase 2D and other subsequent phases has been issued to the National Water Resource Infrastructure to implement the project and the Trans-Caledon Tunnel Authority (TCTA ) to provide technical support.
Infrastructure
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• Promoting transformation: the competition probe into cartels operating in the infrastructure space is intended to open the market to new entrants, including bringing black construction companies into the infrastructure mainstream, thus promoting transformation and economic development.
Infrastructure
20
Through the PICC, the department supported efforts to localise the manufacture of components and rolling stock for the National Infrastructure Plan. New and expanded factories directly supplying components for rolling stock infrastructure include:
•Thin-film solar experimental plant in Stellenbosch
•Wind-towers plant in Coega
•Large truck factory in Coega, with 450 new jobs
•Factory to assemble and laminate solar panels in Epping
•Truck and bus plant in Pretoria , with 350 new jobs initially
•Factory making solar inverters in Cape Town
•Majority black-owned factory in Blackheath that supplies buses to municipalities
•Expansion in locomotive-furbishing capacity
•200 new jobs in Atlantis in a further wind tower plant
Case Study: Infrastructure & local procurement
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1. EDD interventions supported the development of opportunities for
industrialisation, higher levels of private investment and
industrial funding and localisation in the economy. These included
- addressing investor meetings and addressing challenges
- supporting efforts to maintain high levels of IDC funding
- supporting localisation and local procurement
- promoting the development of new sectors
- unblocking, fast tracking investment
2. The IDC approved investment projects with private investor partners worth
R36,8 billion with the IDC committing R11,5 billion of its resources
3.sefa’s R1 billion supported the development of small businesses and
cooperatives
Intervention 2: Industrialisation and Investment
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Minister issued a Directive to the IDC to develop a renewable energy industry
IDC invested R14 billion in solar, wind and renewable projects
During the year: opening of the Kaxu Solar Plant in Pofadder in N Cape
The plant brings 100 MW of solar energy onto the grid
By March 2015, South Africa generated 1 730 MW of energy from the sun, wind and water.
Case Study: Building renewable energy industry
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Facilitated, fast-tracked and/or unblocked 13 investment initiatives
Sectors included forestry, agro-processing, biofuels, pulp and paper, chemicals, textiles, construction, green energy and steel
Unblocking included:• securing land and finalising lease agreements• facilitating access to financing• mobilising trade measures• addressing energy challenges• helping secure pricing that promotes local manufacturing • supporting with social dialogue• measures to deal with illegal imports• fast tracking administrative processes to save jobs
Industrialisation and Investment
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1.Potato processing industry: The potato processing industry was destabilised by a surge in imports. EDD facilitated interaction with ITAC to fast-track consideration of an application for increased duty. Based on the evidence before it, ITAC decided to increase the duty. The IDC offered a loan to a processing company in the Eastern Cape to expand production to supply Spur. The result was an expansion of local productive capacity.
2. Nestle complained of water and electricity cuts in Babelegi near Tshwane as a result of cable theft, which led to R47 million losses in the period from January to 5 March 2014. EDD convened a meeting of COGTA, the dti and Eskom in July 2014 to discuss the challenges. As a result of the intervention, mitigation measures were put in place in the area, including better policing of hot spots.
Industrialisation and Investment
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Examples of Unblocking
3. Fast-tracked the competition process for the buy-out by Lewis Furniture of 68 Beares Furnishers (the Lewis offer to purchase was time bound). The intervention avoided the liquidation of these stores and resulted in the saving of 393 jobs, with the potential for the creation of 126 additional jobs
4. EDD’s intervention facilitated the decision by the Ekurhuleni Metro Municipality to provide the required energy for the construction of a
R350 million plant by Mpact to recycle plastic bottles
5. Pulp United Company – Resolved a dispute between the IDC and the uMhlathuze municipality on the price for the purchase of municipal land. This resulted in the IDC taking a decision to do a feasibility study for an investment in a pulp factory valued at US$250 million
Industrialisation and Investment
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Examples of Unblocking
6 Facilitated that Hall Longmore, a steel pipe company in KZN, could secure a competitive price to secure order to manufacture locally steel pipes for the Greytown water treatment works, which instead was to be delivered from China.
7 Subsequent to the successful sales of Lodox Machines to the Gauteng Provincial Department of Health, EDD assisted Lodox in finding markets in the other Provinces. EDD introduced Lodox to the KZN Department of Health. Four Lodox Scanners were sold to the Provincial Department of Health in KZN.
8 This initiative has leveraged South African medical technology
developed through the commercialisation of an IDC project
Industrialisation and Investment
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Examples of Unblocking
The Minister engaged with companies in the labour-intensive clothing and textiles
Engagements took place with both employers and workers at Trade Core Investments Apparel (TCIA), Colibri, Peter Blond, Impahla Clothing and House of Monatic
Focus of engagement
• Assess the impact of IDC and government support in the sector,
• Identify export opportunities and assess import penetration
• Investment and incentive support by government and its agencies was R5,1 billion in the sector over the past five years
• Took Action on illegal imports – in three years, government
confiscated R1,8 billion in clothing and textiles imported illegally into SA
Industrialisation and Investment
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The Minister launched the development of a R25-million design centre at TCIA in Cape Town, part of a focus on improving fashion innovation in South Africa
EDD obtained a legal opinion on the pricing of mineral products under the MPRDA amendments, which entailed a Ministerial level meeting with legal advisors as well as engagement with DMR, the dti and NT
EDD drafted a report for the Presidency on migrant labour in the platinum belt and how it relates to workplace conflict, in collaboration with TIPS and SWOP
Numerous engagements had taken place Steel, Finance, Tourism, Agro-processing, Retail, Telecommunications and other sectors in order stabilise sectors where required, attract investment, promote industrialisation and localisation, etc.
Minister addressed global investors in Davos, London, New York, Indonesia to share the South African infrastructure and investment narrative
Industrialisation and Investment
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EDD provided oversight and strategic guidance to the IDC during the year through engagements with Board, management and potential investors
Industrialisation: IDC Investment
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IDC highlights in the past year, in tough circumstances
Industrialisation: IDC Investment
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• R11.5 billion approved
• R10.9 billion disbursed
• 20 388 jobs supported
• Approved R5.2 billion for manufacturing industry
• Approved R5.9 billion for black empowered businesses
• Approved R756 million for women empowered business
• R36.8 billion total investment including counterparty investment
– Investment approvals of R11.5 billion– Funding disbursements of R10.9 billion– R5.9 billion in black-empowered and owned companies in 85
transactions
– 20 388 jobs supported
– R1 billion funding approved
– R924 million set aside for youth-owned enterprises over 3 years
Institutional Highlights
32
IDC highlights
Sefa highlights
Industrialisation: IDC Provincial Investment
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IDC investments are situated across South Africa, providing local jobs and supporting local economies.
Of the R9.7 billion funding approvals within South Africa, 46% went to transactions in targeted provinces.
The funding allocated to these provinces also accounted for 42% of jobs IDC expects to create/save.
Of the priority provinces, the Eastern Cape is the largest beneficiary in terms of number of projects, with 19 projects that are worth R50 million and above, across 9 sectors.
Case study: Greening the Manufacturing Sector
- Since 2011, the IDC has worked with an enterprise that produces sports and leisure wear for an international brand. The company is South Africa’s first carbon-neutral clothing company. It has increased its employment from 190 to 431 in the past three years.
- In the 2014/15 financial year the IDC approved a R2-million facility to be utilised for asset and working capital for the establishment of new manufacturing lines.
Examples of IDC projects
34
Case study: Chic Shoes- The Minister conducted a site visit to Chic Shoes, a
major shoe factory, and opened its new premises on 16 September 2014, as part of the EDD’s work to support job creation and evaluate the impact of government measures.- The company was started by a black woman in 2004
and now employs 300 workers, with plans to expand to over 500 in the coming two years.
- It has received support from the IDC as well as a competitiveness grant
Examples of IDC projects
35
EDD provided oversight of sefa for the year under review
sefa highlights
Industrialisation: sefa Investment case study
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• R1 billion approved• R1 294 million disbursed• Benefitted 51 460 SMMEs and cooperatives• Approved R437 million to women-owned
enterprises• Approved R848 million to black-owned enterprises• Approved R292 to youth-owned enterprises • Developed a new innovative supplier credit scheme
to increase use of the Khula Credit Guarantee Scheme
sefa highlights (Transformation)
Industrialisation: sefa Investment case study
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• 74% of funds disbursed benefitted black-owned business
• 49% enterprises in rural and peri-urban areas
• 37% to women-owned businesses
Using trade measures to back South African manufacturers in tougher global conditions, through trade remedies, tariffs, rebates and policy measures to promote inputs with a developmental impact/local use of national inputs
Intervention 3: Trade measures
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Challenging monopolies and cartels in the economy through competition measures to improve the dynamism of local industries and prevent abuse of market dominance
Intervention 4: Competition measures
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Competition measure highlights
Intervention 4: Competition measures
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• Investigations into cartel activity• R880 million received from the Competition
Commission for fines and penalties imposed by the Tribunal
• Dismantling the construction cartel• Oversight of Funds• Jobs emphasised in mergers and
acquisitions• Health care enquiry and retail market enquiry
Walmart Supplier Development Fund Afgri Fund Agro Processing Competitiveness
Fund
Oversight of Funds
41
Agreement was reached with Afgri as part of the Competition Commission’s review of a takeover by Agrigroupe, a foreign investor
The agreement required Afgri to undertake a variety of support measures for small farmers
Since April 2014 Afgri has:– Spent R9,8 million on training to 68 farming entities consisting of
170 people.– On-lent R14 million to 13 entities from the Land Bank to
smallholder farmers (Afgri assumes risk on the loans) – Provided 40% discount on storage to 213 farmers who stored
under ten tonnes of grain– Purchased 14% of its poultry from smallholder
farmers, to whom it provides extension and veterinary services as well as technical, feed and management support
An outcome of Competition measures
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The Afgri agreement
Working with provinces to enhance their capacity and increase their impact on local economiesHighlights
Intervention 5: Working with provinces
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• Engagement with provinces• Working with provinces to align provincial
development priorities to NDP and to prioritise jobs
• MinMecs coordination of work with provinces• An analysis of employment, migration and
growth trends by province was undertaken
Real GDP by province at 2010 Prices
44
• Nationally, employment has increased by 15% since the adoption of the NGP in the 3rd quarter of 2010.
• Gauteng (650), Limpopo (357), WC (267) and KZN (260) had the largest gains in employment numbers over the NGP period.
• Limpopo (38%) and Mpumalanga (22%) accounted for the highest growth rates since the adoption of the NGP
Employment by province since the adoption of the NGP
23-04-2145
Region
Employed, in 000s
Change in 000s
% change
Jul-Sep 2010
April - June 2015
South Africa 13 648 15 657 2 009 15
Western Cape 1 990 2 257 267 13
Eastern Cape 1 280 1 366 86 7
Northern Cape 286 297 11 4
Free State 762 798 36 5
KwaZulu Natal 2 296 2 556 260 11
North West 806 940 134 17
Gauteng 4 320 4 969 650 15
Mpumalanga 971 1 180 209 22
Limpopo 936 1 293 357 38
Job creation by province
46
650 357 267 260 209 134 86 36 11
15%
38%
13%11%
22%
17%
7%5%
4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
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• EDD provided strategic support to KwaZulu-Natal, Mpumalanga and Limpopo at their respective strategic planning sessions
• EDD helped identify how provincial plans could be better aligned with the NGP and also take advantage of national programmes, including the National Infrastructure Plan and the Spatial Development Zones
• The department hosted two small business knowledge network sessions on unlocking the economic potential of townships in the North West and Eastern Cape with civil society, government officials and academics
• The meeting focused on the need to improve the integration of township enterprises into formal value chains as well as to address the constraints on their development (infrastructure, market institutions, commercial and industrial sites)
• The department has received requests to provide capacity building on township economy initiatives and locations; spatial planning alignment support; and green economy implementation support.
Working with provinces
47
• EDD assessed five provincial APPs including Gauteng, KwaZulu-Natal, Eastern Cape, Free State and Mpumalanga
• The assessments include analysis of growth, investment and employment trends
• Findings include:– Most provincial APPs are aligned with the New Growth Path
and the National Development Plan at least conceptually– They are not yet however aligned with Outcome 4 on
inclusive growth in the new MTSF– They do not have many practical targets for inclusive growth– EDD should explore developing some standard KPIs for this
purpose
Working with provinces
48
• In an example of the partnership approach EDD is developing with the provinces,
• On 29 August 2014 the Minister with the Premier of Gauteng launched an incubation hub in Diepsloot– The hub provides step-by-step support for small
companies, starting with rent-free facilities and business support services, gradually building up to normal tenancy in the site.
– It is an interesting example of a private-sector-led initiative to support small business
– The Minister of Small Business Development and the Mayor of Johannesburg also participated in the event
Working with provinces
49
• Deputy Minister has led series of engagements with the leadership of the following provinces Mpumalanga, Free State, Eastern Cape, Limpopo, KwaZulu-Natal on integrated economic planning and alignment of provincial economic plans to national economic development priorities– These engagements revealed that most of the provincial strategic plans
and Provincial Growth and Development Strategies are beginning to focus on the national growth and development priorities as articulated in our NDP and NGP
– The implementation support for provincial and local economic development remains a critical challenge which EDD has committed to working with provinces in future
– While the local economic development capacity in the metros is fairly established, more support required for the districts and local municipalities.
– EDD is working with our provincial partners to play a bigger role in supporting economic development initiatives at the local level
Working with provinces
50
EDD developed an integrated approach to supporting small business support across government to guide the work of agencies reporting to the MinisterIt worked closely with sefa and the IDC to hold roadshows in every province The roadshows enabled SMMEs to engage with sefa, seda, IDC, provincial DFIs and local business chambers to understand their productsRoadshows were held in Mpumalanga, the Western Cape and Polokwane, and at the ABSIO Youth Economic Indaba (Milpark)The Minister participated in the roadshow in Delft, where he also met with Women in Construction to discuss opportunities arising out of the National Infrastructure PlanA small business toolkit was produced by EDD and printed for a first-phase pilot The Minister convened a small business conference on 7 April 2014 that brought together hundreds of new or small entrepreneurs to engage with public agenciesThe Minister opened the Shanduka Black Umbrella Enterprise Development Awards, which facilitate private support for SMMEs, in Cape Town on 9 April 2014
Working with provinces
51
Deputy Minister engagements with provinces and municipalities Areas of work included:
• Economic development frameworks
• Alignment of provincial and local economic development priorities to NDP
• Social accords• Unblocking constraints to economic
development at provincial and local levels. EDD hosted a conference on “Aligning Economic Planning and
Development across the state”. It:• re-emphasised need for integrated economic development planning• agreed on framework to ensure that national policies, strategies and
plans find expression at provincial and local level
Case Study Working with Provinces
52
Deputy Minister Madala Masuku, visits Bloemfontein Oct 2014
Supporting social dialogue to strengthen support for national priorities and build a broad consensus in addressing key challenges
Intervention 6: Social Dialogue
53
social accords Engagements at Nedlac on the National minimum wage and
industrial conflict
Work in clusters to contribute to the development of sectors and employment
Workplace dialogue
Social Dialogue: Social Accords
54
EDD has contributed to monitoring and implementation EDD completed its Draft Annual Report on the Progress
towards the Implementation of the Green Economy Accord. The report showed significant progress in achieving government targets on the Green Economy Accord, including. • By March 2015 the IDC had provided funding to the Green
Energy Sector of R14bn, facilitating the creation of an additional 7 733 jobs
• Approximately 500 000 Solar Water Geysers had been rolled out since the start of the SWH programme – the majority of which were low pressure systems
• Designation of SWG of 70% local content was done in August 2014
Social Dialogue
55
EDD contributed to monitoring and implementation of the Youth Employment Accord, including:• Briefing provinces on progress of the Youth Employment
Accord and explaining how they can provide information required for monitoring
• EDD successfully organised the report back in the Western Cape on for the Presidential Youth Indaba, with over 400 delegates attending
In addition, a report on the implementation of the other social accords for the fourth quarter 2013/14 was completed.
Case Study - facilitating funding and operations to create jobs – EDD facilitated funding for and sits on the steering
committee of the Western Cape Furniture Cluster, which brings together small furniture producers to improve training and productivity.
– The Western Cape Furniture Quarterly Cluster Initiative Steering Committee Meeting was held on 24 June 2014.
– The Cluster manages a training programme. Phase 1 commenced in June 2014 with a total of 147 people from 19 companies. It focused on compliance training which included Occupational Health & Safety and Employment Equity.
– The major output of the cluster process will be provision of on-the-job skills training in the furniture industry for 200 workers.
Social Dialogue: Cluster
56
The Minister launched the Mitchells Plain Skills Centre in April, following technical support and premises supplied through EDD intervention. • The centre will provide training in upholstering, baking,
gardening and entrepreneurship• It also provides an enterprise incubator and co-ops training
• It has capacity to train 2 840 learners and support 32 businesses
Concluded Partnership Agreements with the Following Partners:
1.TUGO Builds Pty(Ltd) – A construction toy company which had been granted funds from the Support Programme for Industrial Innovation. EDD signed an MOU to support social dialogue activities to promote economic development, innovation, equity and reduce workplace conflict.
Social Dialogue
57
Social Dialogue
23-04-2158
Partnership Agreements with the Following Partners (cont.):
2. Conver–Tek Pty (Ltd) – EDD signed an MOU with the polymer company to assist in establishing a forum for regular engagement.
3. Elungileyo Solutions Pty (Ltd) – The company is a Structural and Thermal Construction Company. EDD signed an MOU with the company to promote social dialogue activities to promote economic development, innovation and reduce workplace conflict.
EDD identified cooperative small scale farmers’ preferences.
EDD arranged for Umthombo Agri-business Institute to offer training on improving indigenous chicken production processes and flock management
This training was free of charge to small scale farmers in Nkandla, KZN
About 55 farmers, most of whom were members of co-operatives attended the training.
EDD developed “The Indigenous Chickens User-Friendly Guide for Small Scale Famers” together with the Developing Poultry Farmers
EDD paid for packaging and printing The guide has also been translated from English
and into Venda, Sepedi and Zulu and published
Social Dialogue Case Study: Local Chicken Production
59
Intervention 7: Coordination
EDD participated in a number of forums that aimed to improve coordination of economic strategies across the state.
These included participation in the Industrial Policy Action Plan ( IPAP) , the Outcome 4 processes, the Economic Sector, Employment and Infrastructure Development Cluster ( ESEID Cluster )
The EDD contributed in the development of the five point plan of the Electricity Technical Implementation War Room to address challenges in the energy sector.
In 2014/15 the EDD undertook a range of activities focused on coordination of government economic development efforts and implementation of the NGP and catalysing inclusive economic growth, participation and job creation.
Reports were compiled against the targets set for Outcome 4; Decent employment for inclusive growth, and these reports were submitted to Cabinet in collaboration with the dti and the National Treasury. The reports noted key trends, tracked progress in terms of employment, equity, growth and investment as well as the resulting opportunities.
Coordination of Minmecs 60
Coordinating efforts in the state to enhance outcomes for the economy as a whole and catalyse projects
The signing of an MOU between EDD, DPME and the Nelson Mandela Bay Metro for the Red tape reduction plan on selected city by-laws and approval processes had been agreed to in principle.
The Metro also approved the inclusion of SEIAS (on which EDD staff provide training for various government institutions) in the City’s Policy
Development Framework. This should assist in reducing red tape and promote the ability of the Metro to identify growth opportunities for enterprises.
In partnership with the University of Johannesburg, a regulatory entities
capacity building programme was developed and training provided. A range of entities attended the training including ICASA, the Competition Commission, Nersa, National Treasury, the Ports Regulator and the Department of Energy. The training addressed areas including economics, finance and law for regulators. The close out report was finalised during the 2014/15 financial year.
Coordination
61
Supporting equitable growth through integration of marginalised groups into
the economy
Intervention 8: Equitable growth
62
EDD hosted a conference on “Manufacturing-led growth for employment and equality.” This is in line with the EDD’s mandate to encourage a broad discussion on how to foster inclusive growth
The conference heard presentations on the theme from a number
of leading academics, officials and stakeholders, including
– Professor Gabriel Palma, an internationally renowned Latin American expert on industrial policy
– The EU Chief Economist, Dr Francesco Caballero-Sanz
– South African economists
Equitable growth
63
Conference on “Manufacturing-led growth for employment and equality”
The department hosted two small business knowledge network sessions on unlocking the economic potential of townships in the North West and the Eastern Cape with civil society, government officials and academics
- The meeting focused on the need to improve the integration of township enterprises into formal value chains as well as to address the constraints on their development (infrastructure, market institutions, commercial and industrial sites)
- Participants identified the main economic opportunities as participating in the supply chains of the mining houses in the North West and mohair producers in the Eastern Cape. The sessions then explored ways to access these supply chains.
- Following the network sessions, the department has received requests to provide capacity building on township economy initiatives and locations; spatial planning alignment support; and green economy implementation support.
Equitable growth
64
On 29 August 2014 the Minister with the Premier of
Gauteng launched an incubation hub in Diepsloot. – The hub provides step-by-step support for small
companies, starting with rent-free facilities and business support services, gradually building up to normal tenancy in the site.
– It is an interesting example of a private-sector-led initiative to support small business
– The Minister of Small Business Development and the Mayor of Johannesburg also participated in the event
Equitable growth
65
EDD compiled a progress report on BBBEE with specific reference to the impact of transformation policy on Ownership and Procurement. The authors estimated that:- R600 billion worth of BEE transactions had taken place up
to 2013 EDD held a BBBEE workshop with stakeholders from
government, private sector and state agencies on the 12th December 2014 on the impact of transformation policies
Equitable growth
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Equitable growth
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• IDC youth funding approvals increased 73% from the previous financial year to to R158 million
• sefa youth empowered businesses approvals increased 86% from the previous financial year to R292 million
• sefa disbursed R259 million to 403 women owned smme’s
• IDC funding for women empowered businesses grew from R71 million in 2011 to R756 million in 2015
ILO – social economy
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EDD developed a partnership with the International Labour Organisation (ILO) on implementing social economy initiatives.
An MOU was signed, which includes profiling and determining priority sectors for the Social Economy
Some of the key issues in the MOU
• Partnering on hosting a global conference on the social and solidarity economy
• Establishment of a National Steering Committee on the Social Economy
• Determine Priority Sectors
EDD held a research round table on township economies on 24 February 2015. This was convened in partnership with the SA Cities Network and attended by government institutions, research organisations and academia. The round table took stock of existing research on township economies as a basis to support policy and planning. Research was presented and discussion was held a variety of topics including:
• Townships as domestic tourism destinations • The growth of property markets and property prices in an area in
Gauteng• Informal banking and saving systems operated by foreign owned stores
and how they acted as a catalysts for growth of those operations
Equitable growth
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The IMF’s latest global growth forecast in October 2015 has downgraded growth from the earlier July 2015 estimate by a further 0.2%
Declining commodity prices have been cited as a key constraint on growth as have crisis legacies in some advanced economies
2015/16 sdtrong emphasis
The 9 Point Plan, announced in SONA, Partnerships between government, the private sector and
organised labour need to be strengthened in the period ahead
2015/16 strong emphasis
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THANK YOU
SIYABONGA
