Economic Cluster

Actions

Departments

Timeframe

Progress update - 22 Jan 2008

1

ENSURING ALIGNED AND SUPPORTIVE MACRO-ECONOMIC APPROACHES

1.1

Establish modeling and scenario planning programme for AsgiSA / NIPF goals

NT, Presidency, DPE

Nov-07

Completed but continuing in POA 2008

1.2

Do review of South Africa 's experience in managing the relationship between macroeconomic variables e.g. exchange rate, prices and interest rates

Presidency, DTI , NT

Jul-07

Project Completed. Studies completed and results presented at the Jul-07 Cabinet Lekgotla

1.3

Implement pilot RIA system and introduce the regulation making procedures

Presidency, NT

Dec-07

Departments are being approached to volunteer to be part of the piloting of RIA. Training programmes and RIA website are being developed to ensure communication and successful implementation of RIA

2

BUILDING A COMPETITIVE AND LABOUR-ABSORBING ECONOMY THROUGH INDUSTRIAL POLICY

2.1

Begin implementation of Export Strategy within context of National Industrial Policy Framework

DTI, DFA, Presidency

Apr-07

Implementation of the export strategy has begun and this activity is complete

2.2

Increase usage of ICTs by addressing pricing and other access-related issues

DoC, DPE, DTI , NT

May-07

ICT policy directives announced. Process to harmonise legislation with the protocol on the policy and regulatory framework for the NEPAD ICT Broad band infrastructure network underway. Infraco Act promulgated

2.3

Implement R&D measures

2.3.1

Implement R&D tax incentives and other measures to raise R&D spending to 1% of GDP.

DST, DTI , NT

Mar-08

Initiatives to increase R&D to 1% of GDP have been implemented. The Ten-Year Innovation Plan was approved by Cabinet hence new POA items will be identified. processes for aligning the Ten-Year Innovation Plan and future versions of the IPAP are underway

2.3.2

Develop mechanisms to support cutting-edge industries

DST, DTI , NT

Mar-08

Operational plans for TIA by Apr-08 are underway and DST is considering including inputs into the Bill certified in Oct-07. Processes to guide development of action plans for research centre of competences for information security and titanium finalised

2.4

Implement Cabinet decision on IPP including review of competition policy

DTI,

Dec-07

Completed but continuing. The review of the competition policy has been completed and will be presented to Cabinet in Jan-08. IPP negotiations with Mittal have been reopened. Tariff review in major input industries is being initiated

2.5

Implement agreed-on sector KAPs (Key Action Plans)

2.5.1

BPO

DTI, DoC, Presidency

Ongoing

Implementation of GAS programme has begun. Funding for the piloting of monyetla secured. Proposals on developmental pricing of telecommunication are being finalised. Implementation of the marketing strategy on track

2.5.2

Tourism

DEAT, DTI

Ongoing

2nd economy implementation framework developed. 993 SMMEs have been supported through the Tourism Enterprise Programme. Provinces continue to develop and implement safety strategies. Visa applications Forum established. Airlift Strategy has begun

2.5.3

Chemicals

DTI, Presidency

Ongoing

A review of import duties on chemical inputs is underway. On increasing polypropylene value-added products used in autos and packaging industries, a study is underway to develop a business case

2.6

Finalise KAPs (Key Action Plans)

2.6.1

Biofuels

DME, Presidency

Jul-07

Further work to be done before the strategy is presented to Cabinet

2.6.2

Forestry

DWAF, Presidency

Jul-07

Detailed mapping of aforestation potential at 1:50 000 quaternary catchment scale have been done and the maps will be used as a planning tool to assist in fast tracking water licensing. Engagement initiated with DEAT on EIAs

2.6.3

Clothing and textiles

DTI,

Jul-07

KAPs have been finalised and included in the IPAP. Implementation of recapturing the domestic market, technology and industrial upgrading KAPs have begun. Country of origin labeling regulations have been promulgated

2.6.4

Metals and engineering

DTI,

Jul-07

The business plan sand funding for National Foundry Technology Network have been finalised. Implementation of the national Tooling Initiative already underway as a means to reduce manufacturing life cycle costs

2.7

Develop a framework for overarching strategies for the following sectors as basis for prioritising interventions: mining/beneficiation, agriculture/agro processing, white goods sector, retail, creative industries, community & social services, pharmaceuticals, capital goods

DTI, DAC, DME, DoE, DOH, DPE, DST, NDA, Presidency

Jul-07

Draft cluster perspective document completed

3

MASSIVELY INCREASE PUBLIC INVESTMENT

3.1

Execute and monitor system for infrastructure implementation and impact in particular energy, water, ICT, ports, rail, air-transport, road as reflected in AsgiSA

DPE, DME, DoC, DOT, DPLG, DWAF , NT , Presidency, 2010

Aug-07

Project completed. Monitoring systems established by National Treasury. SOE reports will be submitted to NT for monitoring as per Cabinet decision

3.2

Ensure the public investment programme leads to greatest possible benefits for the economy as cost-effectively as possible

DPE, DEAT, DPW, DTI , NT , Presidency, 2010

Jun-07

Competitive Supplier Development Plans are being developed by State Owned Enterprises. Eskom, Transnet & PBMR are due in Mar-08 and PBMR by Jul-08

3.3

Implement plans regarding multiple operators in rail and ports, and relationship between operators and infrastructure in rail sector

3.3.1

Finalise Ports Investment Plan

DOT, DPE

Oct-07

Ports and Rail master Plans completed and will be presented to the Cluster in 2008

3.3.2

Finalise Rail Investment Plan

DOT, DPE

Oct-07

see 3.3.1

3.3.3

Merge Shosholoza with Metrorail

DOT, DPE

Mar-08

Revised proposal received from Transnet in support of MTEF process to be discussed with Transnet. Business plan is to be reviewed in terms of Transnet's latest proposal in Jan-08

3.3.4

Policy decision on the relationship between operations and infrastructure

DOT, DPE

Oct-07

Draft regulatory framework has been developed and is to be consulted with relevant departments

3.4

Provide framework for regulators in each network industry (energy, telecoms, rail ports), with clear responsibilities, clarity on concurrent jurisdictions, and unambiguous policy objectives linked to Asgi-SA.

Presidency, DEAT, DME, DoC, DOT, DPE , NT

Dec-07

Following roundtable discussions with departments and regulators in Jul-07, further work was initiated to develop framework. International benchmark study to be finalised by end Jan-08 and assessment of performance of SA regulators to be finalised Apr-08

3.5

Provide for robust, affordable and reliable ICT infrastructure

All Clusters,

3.5.1

Increase access to ICT infrastructure by rolling out Sentech Wireless Broadband and Infraco and implementing Digital Migration Strategy

DoC, DLA, DPE, DPLG, DPW, DST, NT

Dec-07

Capitalisation of Sentech to provide wireless broadband for government services has been finalised. ECA amendment has been gazetted to facilitate the licensing of Infraco

3.6

Begin implementation of the public transport action plan

3.6.1

Accelerate implementation of taxi recap programme

DOT, DPLG, DTI

Dec-07

Implementation of the Taxi Recapitaisation Programme is progressing well with over 12500 old taxi vehicles scrapped and R674m paid out as scrapping allowance. The draft law enforcement strategy is currently being processed for adoption

3.6.2

Accelerate implementation of reformed bus subsidy system

DOT, DPLG, DTI

Mar-08

National Road Passenger Plan that provides for transformed subsidy system for buses and recapitalised taxi vehicles has been completed. Implementation of the reformed bus system will require additional funds

3.6.3

Finalise investment plan for public transport

DOT, DPLG, DTI

Aug-07

Terms of reference of the passenger Rail Investment Plan approved and tender to be awarded. Detailed operational plans are being developed in 2010 host cities

4

EQUITY AND DEVELOPMENT

4.1

Develop framework for massifying second-economy interventions including EPWP

Presidency, DLA, DOT, DPLG, DPW, DTI , NT , NDA

Jul-07

The framework for the second economy developed and is being incorporated into the Government's Anti-poverty strategy. Proposals are being developed to increase the impact of current interventions

4.2

Strengthen micro-enterprises' ability to transact/ negotiate with larger firms through supporting the creation of marketing cooperatives and trading associations

DTI, DPLG, NDA, Presidency

Aug-07

Ten products for government procurement from small enterprises approved by Cabinet, developing implementation protocols. Government to support small enterprises to assist uptake

4.3

Improve access to finance for micro-enterprises

DTI, DOA, NT

Ongoing

With regard to leveraging R5 billion on the Financial Services Charter, Khula has secured commitment from top four commercial banks to sign a revised credit indemnity scheme

4.4

Co-ordinate interventions to reduce SMME regulatory burdens, including municipal by-laws (integrated small and micro-enterprises)

Presidency, DoL, DPLG, DTI , NT

Jul-07

On municipal regulations, a manual was developed to assist municipalities to reduce the burden of red tape on small businesses. Discussions between social partners was initiated looking at labour market issues and its impact on small businesses

4.5

Strengthen integrated state financial and business development support for small enterprises through strengthened institutional mechanism and more effective co-ordination

DTI, DPLG , NT , NDA

Jul-07

A delivery network integrating both financial and non-financial support for SMEs has been created throughout the country

4.6

Improve communication on Second Economy initiatives

GCIS, DPE, DTI, Presidency

Ongoing

English publication on Economic opportunities completed and translations into all South African languages to commence. The 16 part radio series on the 12 SABC language stations started. To finalise the scheduling on the Television Series in Feb-08

4.7

Implementation of Communal Land Rights Bill to improve the possibilities for better economic utilization of communal land

DLA, DOA

Apr-07

Implementation of CLaRA continuing

5

ENSURE PRIORITY SKILLS FOR THE ECONOMY

5.1

Co-ordinate the acceleration of skills development for design, engineering, artisans, which are critical for advanced manufacturing, construction and cultural industries

5.1.1

Increase the number of available artisans by resolving the issue of training routes

DoL,

Dec-07

Priority artisan trades agreed for 2007 with an update for 2008 in progress. A detailed database of artisans on contract for completion for 2007/08 is being compiled. Service level agreements in progress

5.1.2

Increase output of engineers by developing capacity of relevant faculties in universities

DoE,

Dec-07

The DOE to finalise student enrolment planning exercise for 2007 to 2010

5.1.3

Identify and resolve system challenges which affect performance of initiatives, including SETAs

DoL,

Dec-07

All scarce and critical skill data from SETA annual research processes is now fully coded within a coding system known as Organising Framework for Occupations

5.2

Review targets and strengthen integration and coordination of National Human Resource Development Strategy (including NSDS and JIPSA) to ensure long-term provision of core and critical skills especially in priority sectors

DoE, DoL, DTI, Presidency

May-07

A NHRDS concept document has been developed and consulted with the NHRD Task team, Skills Focus Group (SFG), Economic Cluster and the Presidency. ToR for the three studies were developed and endorsed. The first study has been completed and discussed