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STRATEGY 2006 – 2009

STRATEGY 2006 – 2009. Briefing to the Portfolio Committee on Trade and Industry and the Select Committee on Economic and Foreign Affairs 15 March 2006. STRATEGY 2006 – 2009. Contents. Context Strategic Objectives Progress on 2005/06 Deliverables Strategic Goals for 2006 to 2009

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STRATEGY 2006 – 2009

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  1. STRATEGY 2006 – 2009 Briefing to the Portfolio Committee on Trade and Industry and the Select Committee on Economic and Foreign Affairs 15 March 2006

  2. STRATEGY 2006 – 2009 Contents • Context • Strategic Objectives • Progress on 2005/06 Deliverables • Strategic Goals for 2006 to 2009 • Budget • Structure • Regulatory Programme

  3. STRATEGY 2006 – 2009 Context • The MTSF is informed by: • The Accelerated and Shared Growth Initiative • Achieving and sustaining higher GDP • Need to increase Job Creation • Need to increase Investment • Need to increase Exports • Broadening of Economic participation through BBBEE and Enterprise Development • Record levels of consumer and business confidence

  4. STRATEGY 2006 – 2009 Context • Low inflation and interest rates • Lowest budget deficit in years • Volatility & level of the currency • Cost, efficiency & capacity of the national logistics system • Shortage of capacity, skilled labour & leadership • Cost effects on labour of apartheid spatial patterns • Constraints on small & medium businesses

  5. STRATEGY 2006 – 2009 Strategic Objectives • Promoting coordinated implementation of the accelerated & shared growth initiative • Promoting direct investment & growth in the industrial & services economy, with particular focus on employment creation • Contributing towards the development & regional integration of the African Continent within the Nepad framework • Promoting broader participation, equity & redress in the economy • Raising the level of exports and promote equitable global trade

  6. STRATEGY 2006 – 2009 2005/06 Deliverables Progress on Key Deliverables for 2005/06 • National Consumer Credit Bill proclaimed and regulations published for comment • Consumer Bill approved by Cabinet • Draft Companies Bill discussed with local and international reference team • Competition Policy Review document finalised • 500 consumer complaints, 17 company complaints and 52 intellectual property complaints resolved.

  7. STRATEGY 2006 – 2009 2005/06 Deliverables Progress on Key Deliverables for 2005/06 • Effective participation in 6th WTO Ministerial Conference • Instrumental in formation of industrial trade lobby group in WTO at Hong Kong • Negotiations with EFTA concluded • Ongoing engagement between SACU and US on possible FTA • Operationalisation of the Permanent Trade Forum • Exploratory talks with India • 13 Investment Protection Agreements and Bilateral cooperation agreements concluded • 23 technical and trade missions to African countries

  8. STRATEGY 2006 – 2009 2005/06 Deliverables Progress on Key Deliverables for 2005/06 • 80 BEE projects valued R160m supported through Industrial Innovation • 927 researches and 2250 students assisted through Technology for Human Resources ( 53% black women) • 98 new standard accreditation done on facilities • Apex fund launched in five provinces • Cooperative scheme scoped 20 mega projects in 9 provinces • Finalised Codes of Good Practice

  9. STRATEGY 2006 – 2009 2005/06 Deliverables Progress on Key Deliverables for 2005/06 • Investment incentives • Small Medium Enterprise Development Programme • 1 791 new projects approved • R13,9b investment, 39 122 new jobs created • Strategic Industrial Projects (SIP) • 5 New projects approved • R11,12b investment by approved projects, 778 direct jobs, 31 481 indirect jobs • Critical Infrastructure Programme (CIP) • 8 New Projects approved • R1,6b investment in infrastructure, R8,5b investment in projects

  10. STRATEGY 2006 – 2009 2005/06 Deliverables Progress on Key Deliverables for 2005/06 • Investment incentives – cont. • Film & Television Production Rebate Scheme • 15 Productions approved • Investment: R732m, Rebate amount R124m • Export Marketing and Investment Assistance Scheme • 523 New Projects approved (R33,7m) • Individual Exhibitions: 458 Enterprises (R20.8m) • Primary Market Research: 39 Enterprises (R1m) • Sector Specific Assistance Scheme: 23 Projects (R11.7m) • Claims R15,4m

  11. STRATEGY 2006 – 2009 2005/06 Deliverables Progress on Key Deliverables for 2005/06 • Black Business Supplier Development Programme (BBSDP) • 545 New projects approved/ Enterprises assisted • Value of projects R27,4m • Claims paid: R15,5m • In the first two quarters R1.4bn of foreign direct investment was facilitated.

  12. STRATEGY 2006 – 2009 2005/06 Deliverables Progress on Key Deliverables for 2005/06 • 5506 exporters assisted and advised • 50% of EMIA recipients were SMME’s, 21% were black and women owned enterprises • 29 national pavilions were held generating R324,8m in export sales for participating enterprises • 83 inward investment and buying missions • 46 outward buying missions

  13. STRATEGY 2006 – 2009 2005/06 Deliverables Progress on Key Deliverables for 2005/06 • 11 Sector Development Strategies & Programmes in various stages of development. Of these 8 (i.e., Textiles and clothing, and Footwear & leather, Metals, Agro-processing, Craft and film, Marine and rail, Automotives, Electro-technical, Capital equipment) have been developed & to be considered by the Executive Board of the dti for approval & public comments, 3 (i.e., Business Process Outsourcing, Tourism, Chemicals) was approved by the Executive Board and published for comments.

  14. STRATEGY 2006 – 2009 2005/06 Deliverables Progress on Key Deliverables for 2005/06 • Expanded outreach to clients and customers: • A total of 1,485, 200 website hits were recorded • 65 once-off, or specialised publications, brochures & pamphlets were published • In total 60 events and exhibitions were successfully managed & executed • Over 40 000 economic citizens visited the dti to enquire on various services such as incentives, registration of companies • 98% of all escalated queries are resolved within 48 hours

  15. STRATEGY 2006 – 2009 Strategic Goals Strategic goals of the Department will be addressed in the following categories: • Policies & Strategies • Legislation & Regulation • Enterprise & Industrial Finance • International Trade • Support for the Strategy

  16. STRATEGY 2006 – 2009 Strategic Goals Policies & strategies to be finalised include: • Industrial Policy framework • Competition policy review • Intellectual Property Law Reform Policy • Export Promotion & Investment strategies • National Services strategy framework • Business Process Outsourcing strategy • Regional Industrial Development Strategy • Manufacturing Skills Strategy • Gender & Women’s Empowerment strategy • Trade policy incl. WTO, Bilaterals & Africa/Nepad

  17. STRATEGY 2006 – 2009 Strategic Goals Policies & strategies to be finalised include: • Review of Estate Agents regulatory framework • In line with the State of the Nation Address of 2005 and 2006, 8 Sector Development Strategies And Programmes (i.e., Textiles and clothing, & Footwear and leather, Metals, Agro- processing, Craft and film, Marine & rail, Automotives, Electro-technical, Capital equipment) to be published

  18. STRATEGY 2006 – 2009 Strategic Goals Legislation and regulation will include: • Amendments to: • The National Gambling Act (Horse Racing) • The National Lotteries Act • Counterfeit Goods Act • Companies Act • IDZ Regulations • Regional Industrial Development Support Measures Bill • New Enterprise Development Bill • Gender & Women’s Empowerment strategy • African Economic Development Strategy

  19. STRATEGY 2006 – 2009 Strategic Goals Legislation and regulation – cont. • Consumer Protection Bill • Amendments to the Competition Act • Corporate Law Reform Bill • Technical, Regulatory Framework: Accreditation, Metrology, Conformity Assessment & Good Laboratory Practice Bill • Measurement Standards Bill • BBBEE Codes of Good Practice & Co-operatives regulations will be adopted

  20. STRATEGY 2006 – 2009 Strategic Goals Enterprise & Industrial Finance • One-third of budget in the MTSF period will be utilised to support enterprise • Existing Incentive Schemes to be reviewed & aligned with Industrial Policy • New Incentive Schemes will be launched incl. schemes to support:- • Co-operative Enterprises • Women Owned Enterprises • Business Process Outsourcing • Apex Fund to become operational in 2006/07 • Finance Agencies to launch new products for small business

  21. STRATEGY 2006 – 2009 Strategic Goals Support for the Implementation of the Strategy • Establish and participate in forums to ensure alignment within government • Seek to leverage strategic partnerships with relevant stakeholders • Provide increased emphasis on monitoring, evaluation & impact assessment of the dti and COTTI work to ensure alignment with the dti objectives • Greater focus on recruiting, developing and retention of skills and capacity

  22. STRATEGY 2006 – 2009 Budgets

  23. STRATEGY 2006 – 2009 Budgets From 2002/03 to 2008/9, the budget increased at an average of 11,5%

  24. STRATEGY 2006 – 2009 Budgets 2006/07

  25. STRATEGY 2006 – 2009 Budgets 2006/07 Contributions of Budget to Key Areas

  26. International Trade and Economic Development Ministry Office of the DG Policy co-ordination The Enterprise Organisation Marketing Enterprise and Industry Development Trade and Investment South Africa Consumer and Corporate Regulation 19 Agencies STRATEGY 2006 – 2009 Structure Group Systems and Support Services

  27. Legislative Programme Strategic Goals • Corporate law amendment Bill For review • Consumer protection Bill June 2006 • Enterprise Development Bill June 2006 • Intellectual property Amendment Bill August 2006 • Sugar Bill August 2006 • Competition Amendment Bill July 2006 • Lotteries Amendment Bill July 2006 • Accreditation Conformity Assessment Bill April 2006 • Measurement and Units and Standards Bill April 2006 • Standards Bill July 2006 • Compulsory Specifications of Standards Bill July 2006

  28. QUESTIONS & COMMENTS

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