Economic Cluster

Actions

Departments

TimeFrame

Progress update - 04 Apr 2006

1

BROAD ECONOMIC STANCE

1.1

No significant changes to macroeconomic management foreseen

NT

Ongoing

Broad economic stance is under continuous management. Regular reporting by the National Treasury and the South African Reserve Bank

1.2

Inflation targeting to remain in place

NT

Ongoing

See 1.1

1.3

The Executive should work with the monetary authorities to ensure that the objective of a stable and competitive exchange rate and appropriate inflation range is attained

NT

Ongoing

See 1.1

1.4

Shift to microeconomic reforms

dti, NT, Presidency

Ongoing

1.4.1

Develop a business plan to effectively and efficiently implement MERS. Include economic cluster activities contained in the Programme of Action in the MERS reporting framework

dti, NT, Presidency

A project to ensure the alignment of the MTSF. MERS, and the POA was developed by the Cluster in Nov-05

2

INCREASED LEVELS OF INVESTMENT IN PUBLIC INFRASTRUCTURE

2.1

Implement sector-specific infrastructure investment plans within the framework announced in Nov-04

DPE, DME, dti, NT, DOT, DWAF

Ongoing

Implementation is taking place at SOE level

2.1.1

Finalise Investment plan for public passenger transport

DPE, NT, DOT

Cabinet approved the Interim National Passenger Rail Plan in Dec-05. A second regional and operational rail plan will be prepared in consultation with stakeholders

2.1.2

Implement plans to strengthen the balance sheet of Transnet and implement investment action plans

DOT, DPE

Measures to strengthen the Transnet Balance Sheet have been announced. The implementation of investment plans is underway

2.1.3

Investment in five top freight border posts

DOT

Roadmap on all 55 border posts on infrastructure requirements done. In process of engaging national public works department on border infrastructure investments

2.1.4

Investment in air freight infrastructure

DOT

National Freight Logistic Strategy has been approved by Cabinet and further process is being outlined

2.1.5

Spoornet increase freight capacity by 30% over 5 years

DOT, DPE

2009

The Minister of Transport launched the implementation process for the revival of Belmont-Douglas rail line in Oct-05

2.1.6

Implement strategy on provision and management of water resources

DWAF

Ongoing

Cabinet approved the establishment of the National Water Resource Infrastructure Agency by Apr-08. Preparations for establishment are ongoing

2.2

Implementation of financing strategies and plans including Public Private Partnerships and similar mechanisms

DPE, DME, dti, NT, DOT, DPLG, DWAF

Ongoing

Investment plans announced. SOEs will continue the implementation of infrastructure investment plans

2.2.1

Public private partnerships in infrastructure development should be more strongly supported by the National Treasury who should engage with the private sector on expediting the delivery of PPPs

NT

Fully established and operational PPP Unit in National Treasury

2.3

Implementation of an appropriate regulatory framework to stimulate new State Owned Enterprise investment in infrastructure

DPE, NT, Presidency

May-05

The final report completed and circulated to stakeholder departments

2.3.1

NER to urgently establish electricity tariffs that facilitate investment

DME

Timetable for the finalisation of the tariff agreement completed. The three-year pricing document to be approved by the NER

2.4

Strengthening of Government capacity to oversee the State Owned Enterprises

DPE, NT, DPSA

Continuous

Framework to be presented to Cabinet

2.4.1

DPE to submit shareholder management model, performance practices among State Owned Enterprises and remuneration of executive and non-executive directors to Cabinet

DPE

See 2.4

2.4.2

Finalise Government-wide review of the State Owned Enterprises performance practices

DPE, NT, DPSA

May-05

See 2.4

2.5

Better utilization of Public Investment Commission's Isabaya fund

NT, GDC

May-05

Isibaya Fund operational

3

INCREASE LEVELS OF INVESTMENT IN THE FIRST ECONOMY

3.1

Existing fora of consultation, including working groups, should be strengthened in the implementation of Growth and Development Summit agreements

Presidency, DoL, dti, NT

Ongoing

The Joint Working Group regularly reviews implementation of the GDS agreements. Working groups and other fora have been engaged in briefings and consultation concerning Asgi-SA

3.1.1

Consideration of Nedlac as a vehicle for social partnerships, the impact not only the first economy but also the second economy. Review of the appropriateness and adequacy of Nedlac as an institution that impacts both on economic and social policy.

DoL

2005

Final review documents are being completed

3.2

Alignment of marketing agencies and departments

dti, NT, GCIS, DFA, DEAT

3.2.1

Road shows to present potential domestic and foreign investors each of the sectors identified within the Micro Economic Reform Strategy (MERS), explaining incentives available to attract investments into these sectors, including advantages offered by IDZ

dti, NT

Ongoing

Customised Sector Development programmes supporting priority sector development including increased investments into sectors approved within the Dti. An integrated branding strategy being finalised and will promote focused investment promotion

3.2.2

Investment promotion must shift focus from general value propositions towards determining the actual costs of doing business and benchmarking these against competitor countries

dti, ME, DPE

Mar-06

Research on international comparisons completed. Publication with Business Management cost to be produced in early 2006. Government working on the "SA Geared for Growth" publication which incorporates information on the cost of doing business in SA

3.2.3

Improve the communication to investment community about what services are offered by Government and its related agencies

dti, DFA, GCIS

Improved coordination in government and with the International Marketing Council has been established and new products are being produced and disseminated

3.3

More attention needs to be given to additional costs to business imposed by local government

dti, DPLG, NT

See 7.4.1

See 7.4.1

3.4

Increase rate of investment by exploiting private direct investment through an integrated approach to the 2010 Soccer World Cup

dti, EIE Cluster, DSR

A 2010 Enterprise Development plan is being developed in conjunction with IDC and will identify opportunities arising from the World Cup, focusing on small businesses within the services sectors (especially IT, construction and tourism)

4

LOWER COST STRUCTURE IN THE ECONOMY AND ENHANCED LEVELS OF COMPETITION

4.1

Submit to Cabinet a comprehensive Freight/logistical strategy

DOT, DPE, dti

May-05

National Freight Logistics Strategy launched. Second round of consultations on the strategy at all port cities, involving municipalities has started. KZN Freight Logistics finalised

4.1.1

Introduce multiple competing operators to rail and ports

DOT

The National Ports Authority bill was assented by the President and the Department of Transport has started a process to set up the Independent Ports Economic Regulator

4.1.2

Separate operations from infrastructure provisions in rail sector and ensure customer-oriented institutional structures

DOT

The principle as outlined in the National Freight Logistics Strategy is approved. Rail safety regulator established

4.1.3

Transfer of strategic roads to SANRAL

DOT

A total of 3250 kms of roads of strategic economic importance have been transferred

4.2

Cabinet's decisions on administered prices should be implemented including publishing a policy on administered prices, and the establishment of an administered prices index by StatsSA

NT

May-05

StatsSa complied with the deadline regarding administered prices index. Research agenda to be finalised with the Task Team

4.3

The issue of import parity pricing should be addressed

dti

Mar-06

Cabinet in Oct-05 received a report on work relating to import parity pricing and agreed to intensify consultations with role-players with a view to completing the first phase of pricing agreement in the first part of 2006

4.4

Improve telecommunications infrastructure and regulation

DoC, DPE, dti, DPSA

4.4.1

Increase internet subscribers and broadband and ICT usage

DoC, dti, DPSA

Decision taken on developing an indicator system that will help in measuring SA progress in developing information society

4.4.2

Second National Operator to be licensed and Operational

DoC

a.s.a.p

The Second National Operator licence was awarded in Dec-05

4.4.3

Promulgate the Convergence Bill

DoC

Convergence Bill and ICASA Bill passed by Parliament

4.4.4

Facilitate broadband technology for 1st and 2nd economy needs

DoC, NT

Superhighway discussions are being concluded and various immediate steps have been identified

4.4.5

Initiate modernisation of ICT infrastructure through digitisation

DoC

Digital migration working group established and mandated to assist government on the way forward. SADC countries met and looked at formulation of a common strategy for submission to International Telecommunications Union

4.5

Improve port infrastructure and operations

DOT, DPE, dti

4.5.1

Accelerate the finalisation of the National Ports Authority Bill

DOT, DPE

a.s.a.p

National Ports Authority Bill is approved. DoT is acquiring services to draft regulations and choosing and appropriate location for the Independent Ports Regulator

4.5.2

First ship dock at Coega/Ngqura

dti, DPE

Sep-05

Land acquisition programme finalised and infrastructure development on track. Memoranda of Understanding with key strategic partners signed and ISO 14001 certification achieved

4.6

Strengthening of Sector Regulators

DoC, Presidency, NT, dti, DEAT, DWAF

4.6.1

Cluster to report on issue of competition in the economy with specific focus on regulated prices, strengthening of the law multiple regulators vs single regulator and price setting by regulators

DPE, DOT, DME, DOC, DWAF

Continuous

The working group looking at lowering the cost to communicate has been appointed. See also 2.3

4.7

Enhancing the transport system

DOT, DPE

4.7.1

Review and amend transport public entity legislation

DOT, DPE

The General Laws Amendment Bill has been considered by Cabinet and is now tabled for consideration by the Transport Portfolio Committee of Parliament

4.7.2

Undertake pilot projects for non motorized transport

DOT

New partnerships with the cycling community, NGOs in accelerating the implementation of Non-motorised transport (NMT) projects established and integrating it into existing transport programmes

4.7.3

Implement taxi recap within a reformed bus subsidy system

DOT, dti, NT

Vehicle safety requirements published. HRM Strategy for TRP provincial roll out in place. Comments on Model Tender Document for subsidised services recvd. DoT has called for an open tender to provide Taxi recap Scrapping Allowance Agency infrastructure

4.8

Regional Electricity Distributor to operate first in 2005, all Regional Electricity Distributors operational by 2006

DME, NT, DPLG

Jun-05, Jan-07

RED1 management commenced with setting up day to day operations of the RED. A generic roadmap for the establishment of RED2 has been developed

4.9

Award tender for the new IPP power station by June 2005, and ensure the deadline for having a new power station by 2008 is met

DME, DPE

Jun-05

Request for qualification (RfQ) evaluation completed and five bidders were shortlisted. The request for proposals (RfP) documentation finalised and to be released to the shortlisted shortly

4.10

Simplify system of tax and levy payments and business registration for all businesses.

NT, SARS

Ongoing review

4.11

Continue with regulatory impact assessment research with a view to possibly introducing an RIA tool into law and regulation making procedures-recommendation to Cabinet by December 2005

Presidency, NT, dti, DEAT

Dec-05

Research complete. RIA report being circulated to all national departments

5

KEY SECTOR DEVELOPMENT STRATEGIES

5.1

Sector development strategies need focus, stronger government implementation structures and support; strong partnerships and synergies with labour and business; and accelerated development and implementation of support strategies for priority sectors

dti, NT, DEAT, Presidency, DST, DEAT

5.1.1

New Sector Priorities to include: community and social services, wood and paper, appliances, retail and construction.

dti, NT, DEAT

Dec-05

Research on new sector priorities being commissioned for 2006

5.2

Priority Sector: Agriculture

DOA, dti, NT, DWAF, DEAT

5.2.1

The DoA to work with the Independent Development Trust and National Development Agency and DTI to finalize a programme aimed at strengthening farmer's organisations

DOA, dti, NT, DWAF, DEAT

Mobilisation and Development of Farmer Organisations Implementation Plan which identifies different types of farmer organisations and intervention tools undergoing Internal consultation

5.2.2

Agreement between government and all the identified stakeholders on a revised implementation strategy and action plan for the Agriculture Sector Strategy

DOA

Discussions held with Farmers' Unions. Engagement with the Labour Unions to take place in due course

5.2.3

More work involving the National Treasury, the ARC, provincial departments of agriculture and local governments is needed to resolve budgetary constraints

DOA, NT

The clusters to continue working on marketing infrastructure and mechanisation and another 4x4 to discuss marketing infrastructure and mechanisation done

5.2.4

DOA together with dti, National Treasury, DWAF and DEAT to finalise the Integrated Agricultural Development Plan

DOA, NT, DWAF, DEAT, dti

Draft Integrated Agriculture Development Programme completed. Further engagement to take place within the Economic Cluster to firm the proposals

5.2.5

Department of Agriculture will review its existing Memorandum of Agreement with the Provinces to align it with the IGR Bill

DOA

The basic principles of the Memorandum of Understanding (MOU) underpinning the Department's relationship with provinces are captured in the IGR Act, so there is no need to continue with the MOU

5.3

Priority Sector: Tourism

DEAT, dti, DOT, DPE, DOL, SAPS, GCIS

5.3.1

Increase capacity and competition on key routes through air bilateral agreements

DEAT, DOT, DPE

A template indicating airline frequencies from all portfolio markets drawn and research will be conducted to determine the markets needing airline capacity increased. DOT 2010 transport strategy developed. ACSA upgrading CT, Dbn and CT airports in 05/06

5.3.2

Tourism and hospitality SETA (THETA) to accelerate skills training

DEAT, DOL

HIV/AIDS – 5000 x toolkit developed & published. In-house Management Skills – workers – target 413: 625 entered; blacks 310; f 377 & disabled 1; ABET – training workers – target 5000: achieved 267; blacks 146; 104 f & disabled 1

5.3.3

Complete competitiveness study and coordinate implementation with transformation strategy

DEAT, DOL

The product and infrastructure projects identified during phase2 of GCP presented to Mpumalanga and KZN municipalities

5.3.4

Establish Tourism Satellite Account

DEAT, StatsSA

System of Tourism Statistics document on definitions for units of measures developed and workshop to discuss it held in Aug-05. Developing a tourism product database to be used to source samples for the surveys to be done for the TSA

5.3.5

Boost policing in key tourism areas, and address perception issues in international marketing campaign

SAPS, DEAT, GCIS

See JCPS 4.3.1

See JCPS 4.3.1

5.4

Priority Sectors: Cultural Industries

DAC, DPLG, dti

5.4.1

Nomination / Appointment of reliable and competent service providers

DAC

Aug-05

Intensive interaction with all stakeholders on Music, Crafts & Publishing. Private & public entities engagement in advanced stage. Copyright and IKS for Heritage sites in progress

5.4.2

Clear co-ordination between National, Provincial and Municipalities (District & Local) Alignment of Cultural Industries implementation with LED (Local Economic Development) programmes in Provinces and Municipalities

DAC, DPLG, dti

Jan-06

Refer to 5.4.1

5.4.3

Audit of needs from Municipalities on related funded projects. Cultural Industries Mapping: assessing/quantifying contribution of Cultural Industries in the economy

DAC

Jan-06

Refer to 5.4.1

5.4.4

Improved networking of projects and sharing of available resources

DAC

Refer to 5.4.1

5.4.5

Creation of cultural industries inter departmental body inclusive of all spheres of government

DAC

Dec-05

Refer to 5.4.1

5.4.6

Establishment of National representative bodies

DAC

Dec-05

Refer to 5.4.1

5.5

Priority Sectors: Information and Communication Technology

DoC, DOL,, DOE, DoH, dti

5.5.1

Increase ICT learnership programme

DoC, DoL

Services SETA in the process of assessing existing learnership programme, to determine their responsiveness to the ICT Sector skills requirements

5.5.2

Support the implementation of the priority areas of e-education, health, e-government and SMMEs

DoC, DoH, DoE, dti

E-education – preparations for the NEPAD e-schools project launch are underway. SMMEs – finalising Articles of Association with ALCATEL to rollout Internet Café model for the youth. Pilot project to be in Tembisa

5.5.3

Operationalise the Advanced African Institute for ICT in 2005

DoC, DST, DoE, DoL, DPSA

The governance organs of the institute are fully operational

5.5.4

Establishment of National Research Network for R&D

DoC, DST

Incorporated in Convergence Bill and taken through to Parliament

5.5.5

Finalise decisions on government holdings in ICT SOEs

DoC, DPE

The terms of reference to evaluate the status of the SOEs completed. Consultation on the results of the divestiture strategy with DPE are ongoing

5.6

Priority Sector: Mining and Metals

DME, dti , DOT, DOL,NT, DST

5.6.1

Intensification of negotiations with key private sector actors to address import parity pricing and introduce a developmental pricing model for steel

Mar-06. See 4.3

See 4.3

5.6.2

Introduce an appropriate regulatory instrument to limit the export of scrap metal

Oct-05

Still being processed

5.6.3

Work with Spoornet to reduce logistics constraints

DOT, DPE, dti

On going

5.6.4

Develop and implement a skills plan for the sector in conjunction with business and labour

dti, DME, DOL

Ongoing

5.6.5

The Precious Metals and Diamond General Amendment Bill to be promulgated

DME

The Diamonds Amendment Bill and Precious Metals Bill were approved by Parliament at the end of Oct-05 beginning of Nov-05 respectively

5.6.6

Development of relevant incentives for the beneficiation of minerals

DME, dti

Meetings with DTI and other stakeholders ongoing

5.7

Priority Sectors: Clothing and Textile

dti, NT,DFA

Mar-06

5.7.1

Review tariffs on textiles to provide for lower input costs to the clothing sector

dti

This is included as an action programme within the CSP that is being developed and requires further research to assess input costs along the whole textile and clothing value chain. Further research is under way

5.7.2

Continue trade negotiations with China to reduce surge of clothing imports into SA. Work with SARS to improve customs inspection to reduce illegal imports of clothing

dti, NT, DFA

The issue of the surge in imports from China is being dealt with by ITAC and the dti. A high level of progress has been achieved in negotiations

5.7.3

Finalise and implement a replacement for duty credit certificate scheme

dti, NT

Jun-05

The Minister is considering the introduction of an interim scheme and in the process of finalising the stakeholder consultation on the broader Customised Sector Programme

5.8

Priority Sectors: Chemicals and Biotech

dti, DST,DOL, DPE, DME, DST

5.8.1

Intensification of negotiations with key private sector actors to address import parity pricing and introduction of a developmental pricing model for chemical feedstocks

dti

FRIDGE Study on the impact of IPP on the chemicals sector was commissioned in May-05. Strategic measures presented to Cabinet in Sep-05 and agreed. See also 4.3

5.8.2

Develop and implement a skills plan for the sector in conjunction with business and labour in this sector

dti, DST, DOL

Joint skills study to identify skills needs of the sector completed and agreement reached between the dti and the Chemical SETA on priority skills needs, and these have been integrated in the Chemical SETA Sector Skills Plan

5.8.3

Review the tariff structure in the chemicals sectors

dti

Mar-06

See 5.8.1

5.8.4

Restructure the State-owned chemical industry and review government's ownership of parts of the sector and how this can be leveraged to achieve BEE objectives and the development of strategic chemical inputs

DPE, dti, NT

The tender evaluation process has been concluded. Work to proceed in the first quarter of 2006 following finalization of contractual obligations with the service provider

5.8.5

Conclude the chemicals sector summit process underway at Nedlac

dti, DOL, DME

Oct-05

Draft agreement of the proposed chemical sector summit between the social partners (i.e. government, business and labour) has been finalised within the Trade and Industry Chamber of Nedlac, to be finalised with Principals and signed

5.9

Priority Sectors: Auto and Transport

dti, NT

5.9.1

Intensification with key private sector actors to address import parity pricing and introduction of the developmental pricing model for steel

dti

Motor Industry Development Council appointed a Task Team to coordinate this project. Cabinet position taken on IPP. Negotiations with Mittal Steel are ongoing and roundtable negotiations with relevant sector representatives will take place

5.9.2

Complete the review of the MIDP

dti, NT

Dec-05

Research for review process currently being undertaken. Consultation with stakeholders underway

5.10

Priority Sectors: Services

dti, NT, DST, DOL, DEAT and SS Cluster

5.10.1

Accelerate research programme and policy development as agreed by Cabinet

dti

Dec-05

New research strategy approved and incorporated into programme of the dti. Long-term research in progress. Services sector strategy completed for submission to Cabinet

6

ENHANCE INTERNATIONAL ECONOMIC RELATIONS

6.1

Priority focus on Africa

dti, DOA, DME, DFA, Presidency

6.1.1

Finalise national export strategy and market access information strategy following engagement with export sectors to help take advantage of possibilities to expand access to EU and US markets as a result of the SA-EU Trade & Development Agreement and AGOA

dti, DOA, DME

Jun-05

National Export Strategy narrated. Joint workshop in Gauteng, W Cape and KZN arranged. Market access information and briefing being processed

6.1.2

Pay the necessary attention to the earliest possible conclusion of trade agreements with Mercosur, EFTA, the US, India and China

dti, DFA, Presidency, NT

Ongoing

Negotiations on Mercusor, EFTA, USA, China and India in progress and scope of progress being finalised - conclusions in 2006.

6.1.3

Create cross-border financing mechanisms for cross-border projects

dti, NT

Scoping and scanning for opportunities in SADC and African countries' SDIs underway, business opportunities packaged and conference to be held 2006. Consultants to scope in DRC appointed

6.1.4

Synergise Nepad actions with other development aid initiatives such as the UK's Commission on Africa

dti, DFA, NT

See 6.1.5

6.1.5

Dti to convene and champion a government-wide process to develop an integrated approach to engagement with Africa on economic development

dti, DFA, DPSA, Presidency

A well-consulted and consensus-based draft strategy document was presented to the Cabinet Lekgotla in Jul-05. Comments and inputs are currently being incorporated for the finalisation of the document

7

ENHANCE ECONOMIC INCLUSION

7.1

Implementation of broad based BEE strategy

dti, NT, DOC, DME, DOA, DWAF, DEAT

a.s.a.p

Second BBBEE Draft Codes of Good Practice released in Dec-05 for public comment. ICT; Mining; Financial Services; Petroleum & Tourism charters has been finalised awaiting the finalisation of the code of good practice

7.1.1

Finalise charters in strategic sectors and review sector BBBEE strategies by ensuring all government departments actively guide charter processes

dti, NT, DOC, DME, DOA, DWAF, DEAT

Jun-05

See 7.1. Wine; Transport; Construction; Agriculture; Auto and Aerospace; Property; Pharmaceutical and Health charters are at various formulation stages

7.1.2

Codes of Good Practice to be finalised and widely communicated

dti, NT, DOC, DME, DOA, DWAF, DEAT

Phase 2 of codes of good practice issued for public comment in Dec-05

7.1.3

Establish BEE Advisory Council to advise on implementation of BBBEE strategy, which informed by the BBBEE Act

dti

During 2005

Consultations on Advisory Council being completed after BEE Codes of Good Practice finalisation

7.2

Enhance and accelerate sector support programmes

DOA, DEAT

7.2.1

Re-establish the Agricultural Credit Scheme (ACS) to provide capital for emerging farmers, and accelerate the comprehensive farmer support programmes

DOA

Ongoing

Scheme roll-out in Sekhukhune, O.R.Tambo & Mkhanyakude Districts implemented as well as Production Loan Scheme; Credit Evaluation Committees; and Saving Mobilisation product. Credit applications available and accessible in Nodal districts

7.2.2

Accelerate the tourism enterprise programme

DEAT

Ongoing

There is increased awareness regarding the Tourism Enterprise Programme (TEP) in the Provinces, with the resultant willingness to sustain TEP and meeting the BEE procurement targets, as well as increasing provincial contributions to TEP budget

7.3

Support programmes for cooperative enterprises

dti, DOA

Completed

7.3.1

Bill on cooperatives and implement cooperatives strategy to be submitted to Parliament

dti, DOA

May-05

See 7.3

7.3.2

Set up the cooperatives registration office in Companies and Intellectual Property Registration Office

dti

See 7.3

7.4

Actively coordinated support to small and micro enterprises

dti, DME, DPE, NT, DPLG

Ongoing

7.4.1

Review regulatory framework of SMME, to facilitate its growth and development, implement recommendations of the regulatory impact review of small enterprises and introduce appropriate exemption of small businesses

Presidency, dti, NT

Sep-05

Report submitted to cabinet in Nov-05 and will be discussed early in 2006

7.4.2

Expedite operation of SEDA, including necessary amendments to SMME Act

dti

Ongoing

SEDA Operational

7.4.3

SEDA to open provincial offices

dti

The first provincial and district SEDA offices opened in North-West. Seven additional provincial launches are expected to be finalised by the end of the financial year 2005/6

7.4.4

Integrate the Community Public Private Partnership into SEDA

dti

The Community Public Private Partnership already incorporated into SEDA as one of the business units

7.4.5

Work with the financial institutions to implement provisions of the Financial Charter as it relates to SMME

NT, dti

a.s.a.p

On track- part of Financial Services Charter process

7.4.6

Allocate additional resources to enterprise support programmes in the budget over the medium term, especially in the areas of R&D, sector support, access to finance, BEE and small enterprise development (including Co-ops)

dti, DST, NT, DOA

Feb-06

South African Microfinance Apex Fund launched in North-West, Eastern Cape & Limpopo in conjunction with the office of the provincial MEC of Finance and Economic Development. Currently developing set-asides programme

7.4.7

Strengthen capacity of dti as the lead department for enterprise development

dti

Ongoing

Dti is to provide Secretariat for co-ordinating small business interventions across government. Activity incorporated into the departmental programme

7.4.8

Set up the Small Business Advisory Council

dti

Dec-05

Contacts with the Chamber movement being made for representation in the Council

7.4.9

Table integrated Small Business Strategy in Cabinet for approval

dti

Jul-05

Strategy tabled in Parliament

8

A LABOUR FORCE WITH THE SKILLS NEEDED BY THE ECONOMY

8.1

Policy framework relating to immigrant labour

dti, DHA

8.1.1

A policy framework on issues relating to immigrant labour should be developed and published, allowing flexible immigration in areas of scarce skills

dti, DHA

Jun-05. See 8.1.2

Immigration regulations finalised and published. Draft National Critical Skills List 2005/6 finalised and awaiting approval by National HRD Coordinating Committee before implementation by DHA

8.1.2

Finalise Immigration regulations to recruit targeted scarce skills in the short term

DHA, DoL, dti

Apr-05

Activity completed. Consultations are proceeding with stakeholder Departments on Section 19(1) of the Act

8.2

Implement the updated NSDS 2005-2010 with an allocated amount of R21.9 billion over 5 years

DoL, DoE

8.2.1

Establishment of Skills Development Agency would reduce administrative burden on employers

DoL

Ongoing

6, 472 learners recruited through ESDLE pilot project. R180m allocated to train additional 4528 learners from Aug-05. Evaluation of ESDLE pilot programme to be completed in Feb-06. Policy framework to be finalised in Feb-06 to roll-out ESDAs from Apr-06

8.2.2

Labour and Education to market learnership programme aggressively to recruit more school leavers and graduates

DoL, DoE

Ongoing

Negotiations on 2005/6 learnership targets finalised. DoL maintain databases of potential learners for recruitment in learnerships. Sector skills published and 5,000 learners in learnership are in FET colleges

8.2.3

Finalise and announce new SETA structures

DoL

May-05

23 SETAs fully operational

8.2.4

Improve the effectiveness of the skills development structures in government for the implementation of the Human Resource Development strategy

DoL, DoE

May-05

DoL has implemented performance agreement with SETAs and National Skills Fund service providers / projects, Umsobomvu & the National Productivity Institute on target and is able to provide a quarterly consolidated report on implementation

8.2.5

Create mechanism to link SETAs with the related sector strategy drivers

DoL

Draft sector skills plans are being adjusted in accordance with the NSDS 2005-10. Process is underway to secure services of a research partner to undertake research on sector scarce skills and to support various SETA SSP initiatives

8.3

Establish alignment between SETA's and public FET and Higher education institutions

DoE, DoL, dti, NT, Presidency

8.3.1

Adequate funding for technical colleges and align courses with economy needs

DoL, DoE

Ongoing

DoE/DoL with SETAs and industry have developed 10 new programmes to be offered at FET colleges from 2006/7. Six centres of excellence launched through NRF and post doctoral, Hons and Masters grants awarded through NRF

8.3.2

Establish register of all graduates

DoE, NYC

May-05

The graduate register was completed in 2004 and is being updated on an annual basis

8.3.3

Ongoing review of educational curriculum relevance to the needs of the economy and cultivating and entrepreneurial culture

DoE, DoL, dti, NT, Presidency

Ongoing

The FET Curriculum has been revised, published and will be implemented from 2006. It is relevant to the needs of the economy. FET Colleges are being re-capitalised based on needs of region/province, ensuring curricula needs meet economy

8.3.4

Increase output of universities and technikons in priority sectors e.g. engineering by aligning NSFAS and subsidy funding with scarce skills

DOE

NSFAS and subsidy funding is already aligned to scarce skills

9

INCREASED R&D SPENDING AND THE DIFFUSION OF NEW TECHNOLOGIES

9.1

Increase public sector R&D investment and expand incentives (not necessarily financial) available to the private sector to do the same, in order to meet international benchmarks and align focal areas with national development goals

DST

Ongoing

Modeling study on tax incentives for private sector completed. Project initiation during 2006 on options for improving Patents Office services to private sector investors. DST guideline document for govt departments finalised - 2006 trial run planned.

9.2

Development of our region as a global hub for astronomy and space science and technology

DST

Ongoing

Southern African Large Telescope (SALT) launched in Nov-05.Project initiation on Karoo Array Telescope (KAT) as 2% component of South Africa's bid for global investment Square Kilometer Array (SKA) radio telescope in Northern Cape

9.3

A recommitment to the 2002 R&D Strategy target of 1% of GDP to be invested in R&D (public and private sectors) by 2008

DST, dti

Process commencing for 2004/05 R&D Survey to run from Q2/2006. Process commencing for parallel surveys measuring R&D outputs to run from Q2/2006

9.4

The existing Human Resource Development programmes of the National Research Foundation, the CSIR and the universities need to be strengthened

DST, DOE

Fluorochemicals capacity at NECSA secured. Planning completed for research chairs and funded at a level of R150m for 2007/08. CSIR turnaround strategy commenced

10

MORE EQUITABLE GEOGRAPHIC SPREAD OF ECONOMIC ACTIVITY

10.1

Develop a comprehensive economic map of South Africa. StatsSA will deliver spatial economic indicators - underlying data and indices - a key requirement is an integrated business register between StatsSA, SARS, dti and DOL

StatsSA, dti, Presidency

Dec-05

A consultant has been appointed to assist with the development of a comprehensive economic map of South Africa

10.2

Resolve political blockages on some Spatial Development Initiatives

dti, DEAT

Ongoing

See 6.1.3

10.3

Implement measures to align IDPs, provincial and national strategies (PGDS's) around priority spatial interventions, National Spatial development Perspective on the basis of Cabinet Memorandum submitted in Jan-05 See G&A 3.01

Presidency, DPLG, NT

Dec-05

Review and update of the NSDP completed. PGDS guidelines have been finalised. Assessment of PGDS against guidelines complete

10.4

Develop a logistics corridor strategy

DOT, DTI, DPE

Jul-05

National Freight Strategy approved by cabinet. To complete National Freight Databank by Jun-06 to enable scenario planning to take place. Establishment of Corridor Teams to develop logistics corridor strategies in process

11

CO-ORDINATED SECOND ECONOMY INTERVENTIONS

11.1

Extend Expanded Public Works Programme

DPW, NT, DPLG, DSD, DoH, DEAT, DWAF

Ongoing

For 2004/05 year progress, 3483 EPWP projects; 223410 gross and 174845 net job opportunities; and 861990 days of training provided. Expansion to housing commenced and discussions with Telkom are underway. Piloting sanitation programme commenced in Oct-05

11.1.1

Introduce steps to increase the numbers of Community Health Workers, having harmonised training standards and increased resources allocated to the programme

DoH, DPW, DSD

See Social

See SS cluster

11.1.2

The Early Childhood Development programme, based on community participation, having ensured a common approach among all three spheres of government - the necessary additional funding will be provided

DoE

See Social

See SS cluster

11.2

Finish Financing Protocol for the Urban Renewal and Rural Development Nodes

DPLG, NT, local & prov Govt

See G&A

See G & A Cluster 3.2.8

11.3

Start operations of the APEX Find

dti, Presidency

May-05

See activity 6.1.3

11.4

Implement Land Reform for Agricultural Development process and Comprehensive Agricultural Support Programme

DOA, DLA

Ongoing

64,000 farmers benefited from CASP as from end Aug-05

11.5

Finalise AgriBEE charter

DOA

See 7.1.2

Establishment of the AgriBEE charter targeted for the second quarter of 2006

11.6

Strategy for financial and non-financial support to co-operative enterprises

dti

May-05

Incentive guidelines developed, to be tested and considered for approval. Educational tools designed and technical capacity support tool designed for compliance purpose

11.8

Ensure that Community Development Workers are deployed in each local municipality

DPSA, DPLG, SAMDI

Mar-06

National launch of CDW programme took place in Nov-05. 2 900 of the CDW learners have completed their training. The recruitment of 665 is complete, with 190 of these in Block 2 of the learnership. (See G&A 2.3.5)

11.9

ICT introduced in nodes for governance and development purposes

DPSA, DOC, DPLG

a.s.a.p

SITA has supported initiatives around MPCC based ICT access on a sustainable basis. SITA and DPSA are conducting a strategic review of SITA and support for local government is under consideration

11.10

Implementation of Municipal Infrastructure Grant

DPLG, NT

Ongoing

Households benefited from MIG by end Sep-05: Water 410 358; Sanitation 174 811; Roads 322 950; Storm Water 135 404; Solid Waste 24 607; 897 SMMEs utilised by end Sep-05 and 92 BEEs utilised by end Sept-05

11.11

Extend mass communication campaign to inform citizens in the second economy about opportunities, including for skills development, and available support and how to access these

GCIS, EIE Cluster

Ongoing

13 Part TV series broadcast from Oct-05 to Jan-06. New government magazine Vuk'uzenzele launched in Oct-05 with economic opportunities focus. Updating of publication on economic opportunities in progress

11.12

Develop strategy to promote equitable geographic spread of economic activity

dti, DPLG, Presidency

See 10

The Regional Industrial Development Strategy draft document developed. Different work streams currently being undertaken and new interventions are being investigated The dti hosted a regional development workshop in Nov-05

11.13

Continue Spatial Development Initiatives

dti

Ongoing. See 10.2

Part of the Regional Industrial Development Strategy and a framework of SDI's is being investigated

11.14

Job opportunities along the entire agricultural value chain

DOA

Ongoing

A number of commodity strategies have been completed while others are to be completed in the course of the year (refer to 5.2), to address job creation, competitiveness, profitability and sustainability

11.15

Increased income from agricultural activities

DOA

See 5.2

11.16

Increase support to agriculture in communal areas and other small scale agriculture, drawing on resources of ACS

DOA, DWAF

Ongoing

A number of applications received for credit and Production Loan Scheme. Capacity building for Local Finance Institutions available and the Micro Agriculture Finance Scheme Internal Lending Policy

11.17

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

DLA, DOA

Ongoing

The National Implementation Framework is to be signed off. All necessary information has been collected after extensive consultation with stakeholders and interested parties

11.18

StatsSA and relevant govt agencies to immediately start research on economic activities in Second Economy communities while implementing Cabinet decision on a comprehensive household survey and allocation of addresses to all households -

StatsSA

Before 2006 if possible

See 7.4

11.19

Socio-economic survey of communities to be conducted in three-year intervals

StatsSA, DSD

2005

All Casp pillars are active including MAFISA as financial assistance which opened for direct credit in Aug-05

11.20

Support programmes for cooperative enterprises

dti

See 7.4

Cooperative incentive scheme is being piloted on 100 cooperatives that have been identified. Pre-incorporation education for any group that wants to become a cooperative

11.21

Re-establish the Agricultural Credit Scheme (ACS) in DOA to provide capital for emerging farmers, and accelerate the comprehensive farmer support programmes

DOA

See 7.2

ACS or MAFISA has been established