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TRADE & INVESTMENT SOUTH AFRICA

TRADE & INVESTMENT SOUTH AFRICA. TISA Work Plans 2001/2002 Presentation to the Parliamentary standing committee on Trade and Industry. Presentation Overview. The TISA Vision Overview of TISA Work Plan 2001/2002 Business functions TISA’S contribution to President’s agenda

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TRADE & INVESTMENT SOUTH AFRICA

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  1. TRADE & INVESTMENT SOUTH AFRICA TISA Work Plans 2001/2002 Presentation to the Parliamentary standing committee on Trade and Industry

  2. Presentation Overview • The TISA Vision • Overview of TISA Work Plan 2001/2002 • Business functions • TISA’S contribution to President’s agenda • Investment Promotion • Export Promotion

  3. Presentation Overview • Cross-cutting work plans • The building blocks of success • Overview of TISA’s work plan layout • Budget Expenditure for 2000/2001 • Budget for 2001/2002 • Conclusion

  4. The TISA Statement We seek to move the economy onto a high growth path, increase it’s competitiveness and efficiency, raise employment levels and reduce poverty and persistent inequalities

  5. TISA Work Plan 2001/2

  6. Business Functions PRIMARY BUSINESS • Investment Promotion • Export Promotion

  7. Business Functions SECONDARY BUSINESS • Logistics Development • SME Development • Sector specific Image Building

  8. TISA’S contribution to National Agenda • Transport: Airports, Sea Ports, Rail and Road - removing bottlenecks for exporters in key sectors - provide inputs to DPE on restructuring of SOE’s • Telecommunications : E-commerce - improving trade efficiency utilizing an electronic trading system (Trade Net) • 5 Priority growth sectors - promoting Investments and Exports • Infrastructure - facilitating the development of IDZ’s through policy inputs & marketing for investors

  9. Investments • Overview • FDI inflows • Investment Objectives • Key Deliverables • FDI targets • Promote FDI inflows into priority investment sectors • Investment Pipeline Deliverables for 2001/2002 • Improved Investment environment • High Performance Organisation

  10. Investments - OverviewFDI Inflows

  11. Investments - Objective To increase FDI inflows to R3.2 billion by 31 March 2002 in prioritised Investment sectors

  12. Investments – Key DeliverablesFDI Targets

  13. Investments – Key Deliverables Priority Investment Sectors • Agro-processing • Clothing and textiles • Automotive industry • Chemicals • Metal based industries

  14. Investments – Key DeliverablesInvestment Pipeline Deliverables for 2001/2002

  15. Investments – Key Deliverables Improved Investment Environment – Summary • Industrial Development Zones concept • Establishment of one stop investor facilitation shop • Provide inputs for more effective incentives

  16. Investments – Key Deliverables Improved investment environment The Industrial Development Zone concept • working with The Enterprise Organisation (TEO) to develop a viable IDZ strategy by 30 June 2001 • establishment of City Deep IDZ by 31 March 2002 • marketing of IDZ by TISA

  17. Investments – Key Deliverables Establishment of a ‘one-stop facilitation shop’ for Investors (in alignment with the IIC’s goal)

  18. Exports • Overview • Total Manufacturing Export Growth • Investment Objectives • Key Deliverables • Export targets • Promote exports in prioritised sectors • Export Deliverables for 2001/2002 • Outward investments into Africa • Export Sector Strategies • Re-organised Export Councils • Cutting edge incentives • Tradenet

  19. Exports - Overview

  20. Exports - Objective To substantially increase South Africa’s export base by 31 March 2002

  21. Exports – Key DeliverablesExport Targets (R’billion)

  22. Prioritised sectors Agro-processing - grape wine - fruit juices - fruits Clothing & Textiles - clothing Auto’s -automotive vehicles & components Chemicals Metals Exports – Key Deliverables

  23. Exports – Key Deliverables

  24. Exports – Key Deliverables

  25. Exports – Key Deliverables Africa Strategy • Intra-Africa Trade • It constitutes a mere 10% of Africa’s total trade. There is a need to address trade imbalances. • “Unless African countries trade amongst themselves, no development will take place in the region” Minister Alec Erwin

  26. Exports – Key Deliverables Africa Strategy • Outward Investment - To secure foreign markets - To use home-based SA technology to provide solutions to African problems - To use SA technical know-how on infrastructures, utilities and construction projects to address development requirements - To promote potential intra- and extra regional trade

  27. Exports – Key Deliverables Reorganised Export Councils • Broadening the export base. Councils will be required to achieve and secure membership of 30 % of la industries and 40% in small industries by 30 June 2002 • Export Councils will be required to address bottlenecks in the export value chain (see Logistics section). Reports will be completed by 30 June 2001 and fed back to TISA Facilitation Division and Councils for corrective action. • In the promotion of BEE and women owned SME’s, a minimum requirement is that 10% of Export Council membership by 30 June 2002 should be represented by BEE/women owned enterprise

  28. Exports – Key Deliverables TradeNet • Based on Singapore’s experience where the turn around time for processing trade documentation decreased from 4 hrsto 5 minutes. This enhanced Singapore’s overall competitiveness. • Develop a plan for electronic trade documentation. Needs to be driven by the Presidency. The first step is to bring Customs on board. • Draft memorandum for Cabinet approval by 30 April 2001. Will propose national co-ordination and implementation • Implementation of pilot system by 30 December 2002

  29. Key Support Divisions • Facilitation • Logistics • Corporate Communications

  30. Facilitation • New Business • Export Councils • Team will ensure development of new policy and guidelines on funding Export Councils by 31 May 2001. • Team will ensure assistance with administration requirements. • Will move in line with New Zealand’s experience ie. establishment of fully fledged councils and then formation of export networks

  31. Facilitation • New Business • Investor work permits • TISA currently facilitating investor work permits with DHA but turn around time for work permits is 1 month. Still not fast enough • DHA is not investor client orientated; no differentiation for investors • During 1999 TISA facilitated R 866 million (13 212 jobs) of DHA referrals • TISA will be involved in drafting Cabinet legislation. Cabinet Memorandum by 30 April 2001 • Transformation of existing Call-centre into TISA Customer Care Centre by 30 June 2001

  32. Facilitation • Existing Business • Aftercare • No aftercare strategy for exporters and investors. • Build on-going relationship with 25 foreign chambers for investor aftercare. 2 meetings per year at CEO level with all chambers. 12 seminars during the year with chamber members. • Export database complete (6 000 active exporters). Install IT based customer relationship management system by 31 July 2001 for managing relationships with individual exporters and investors. On-going contact through e-mail information and publications.

  33. Facilitation • Existing Business • Technical Services • Currently exporter and investor bottlenecks in supply chains, logistics, and provision of incentives. • Establish a rapid response technical team to break bottlenecks. Team will be established by 30 May 2001 • Bottlenecks include major port blockages, financial incentive blockages and marketing blockages. The team will interface with the Logistics Division and will be responsible for specific short term interventions

  34. Facilitation • Existing Business • Export Development • Diverse and disparate SME export support programmes exist (TIDP, chamber programmes, international linkage programmes, private sector training institutions etc.). Intention is to ensure national co-ordination. • Comprehensive training programme for 100 export ready SME’s in the export cycle and international marketing during 2002 • Facilitate backward linkages for 20 SME’s with foreign partners by December 2001

  35. Logistics • Logistics: • Major supply chain issues/hindrances to and opportunities for improving competitiveness exist. • Some of the supply chain problems relate to the following (see attached graph): • Port delays and inefficiencies, especially Customs clearance • High port charges • High cost for road and rail transport compared to other African countries • Inconsistent road and rail reliability • High shipping charges • Long distances from factory to ports • Study will be complete by end of May 2001 which will quantify the above

  36. Logistics: Supply Chain Issues Identified by Export Councils

  37. Logistics • Identify hindrances and opportunities within supply chains for improving export competitiveness in clothing and textiles, automotive vehicles and components, chemicals and agro-processing. Research review complete (phase 1). Study will be complete by 30 May 2001. Detailed business cases will be developed along priority opportunities and implemented e.g. investments in collaborative technology for the wine industry. • Facilitating improvements along the Gauteng-Durban corridor. TISA to assist with fast tracking this for implementation this year to improve speed of access to Durban. Improvements implemented by 31 November 2001

  38. Logistics • Re-organisation of SOE’s. TISA to make sure that the re-organisation impacts favourably with regard to competitiveness across industries. • Singapore Hub Project. Create a hub at JIA through investments by Singapore in airport infrastructure and services. To be complete by 30 June 2001.

  39. Corporate Communications • Redress perception deficit of SA as a business destination as elicited through the GCIS 1998 survey and frequent meetings with investors. Survey conducted in Germany, Sweden, UK, Japan, UAE, Singapore, France and US. 41% of respondents said that SA does not compare favourably as a competitive investment destination. • TISA will facilitate with GCIS to do a follow-up survey in 2002 to measure the impact of various branding campaigns

  40. Corporate Communications • Build confidence in SA as an investment destination and a source of exports via the following marketing communication tools: • 12 events • 20 positive articles in prominent international business media • participation in 5 special surveys in international publications; • 18 consistently imaged national pavilions,

  41. Corporate Communications • 12 sector publications • 2 generic investor publications • 2 exporter magazines • 10 tactical advertisements of SA success stories of investment, monthly media briefings) • Create conditions for FER’S and sector specialists to meet targeted potential customers

  42. The Building Blocks of Success • Solid Investment Strategy • Solid Export Strategy • Solid Foreign Office Operation • Solid Organization System • Solid Image Building Strategy • Team SA

  43. Team SA • Whose help do we need? • Provinces • DTI :- EIDD, TEO, ITID, CITA, CSIR, IDC, … • Broader Govt. :- MHA, D Agrc, DME, DFA, … • Leadership :- President’s Office, Cabinet, … • Implement new framework for co-operation with the Provinces • Undertake joint programmes with all the Provinces

  44. Conclusion How can the Parliamentary standing committee assist in increasing investment and exports?? • Skills development • Better international image • Competitive incentive packages • Good regulatory environment

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