Nine-Point Plan

President Jacob Zuma announced the Nine-Point Plan to boost economic growth and create much-needed jobs in his 2015 State of the Nation Address.

Below are the various aspects of the plan and some of the progress made as detailed in The Presidency's April 2017 progress report, cluster reports and departmental budget votes.

  1. Resolving the energy challenge
  2. Revitalising agriculture and the agro-processing value chain
  3. Advancing beneficiation or adding value to mineral wealth
  4. More effective implementation of a higher impact Industrial Action Policy Action Plan (IPAP)
  5. Encouraging private-sector investment
  6. Moderating workplace conflict
  7. Unlocking the potential of SMMEs, cooperatives, townships and rural enterprises
  8. Boosting the role of state-owned companies, information and communication technology infrastructure and broadband roll-out, water, sanitation, transport infrastructure as well as science, technology and innovation
  9. Operation Phakisa

 

1. Resolving the energy challenge

Substantial progress has been made in resolving energy challenges in South Africa since the inception of the Five Point Energy Plan in December 2014. By February 2017 South Africa had a stable and reliable supply of electricity, with an excess capacity of over 3 000 megawatts (MW) available.

  • The Renewable Energy Independent Power Producers Procurement Programme (REIPPP) has been instrumental in augmenting the capacity of the State to rapidly roll out generating capacity. The 54 operational projects produce 2 900 MW of installed capacity and helped ensure that  South Africa experienced no load shedding since August 2015. 
  • The Solar Capital De Aar 3 photovoltaic plant, inaugurated on 18 March 2016, contributes an additional 75 MW to the 835 MW renewable energy capacity that had been supplied to the network by 19 operational projects in the province since the beginning of 2014.
  • The Avon power plant in the Eastern Cape was completed in September 2015 and can produce 330 MW.
  • New capacity from Medupi Power Station, four units from Ingula Power Station and Sere Wind Farm added capacity to the extent of 2 226 MW.
  • The R2 billion Kouga Wind Farm was officially opened in September 2015. It delivers 80 megawatts of grid-connected capacity.
  • As part of energy-saving measures, government, through incorporating energy efficient technologies in 7 043 state buildings, saved 220 000 000 kilowatt-hour (kWh) in 2015/16. A target of 300 000 000 kWh has been set for 2017/18.
  • The extension of electricity supply to communities continues. In the 2016/17 financial year a total grant of R5, 6 billion was made available to the Department of Energy for the electrification of 235 000 households with grid and 20 000 with non-grid. In the first and second quarters of the financial year, R1,3 billion has been spent realising 167 225 household connections.  
  • On 21 December 2015 the Department of Energy published a determination on the nuclear programme, whereby 9 600 MW should be generated from nuclear energy. Cabinet designated Eskom and the South African Nuclear Energy Corporation as the procurers and operators of the various components of the nuclear new build programme. 

More on the energy challenge:

Lead department:
Department of Energy
Tel: 012 406 8000
 

2. Revitalising agriculture and the agro-processing value chain

The Nine-Point Plan has committed government to:

  • transform the agricultural sector through the roll-out of Agri-parks (a networked innovation system of agro-production, processing, logistics, marketing, training and extension services) in 44 municipal districts
  • fast-track the implementation of the Strengthening Relative Rights of People Working the Land (50/50) Policy at 10 pilot sites
  • create jobs through the production of key commodities.

To this end:

  • 43 of the 44 Agri-park sites had been identified by August 2015 with one Agri-park already launched in North West. The programme aims to help create 300 000 new small-scale producers and 145 000 new agro-processing jobs by 2020. By May 2017 three Agri-hubs were operational in Ncora, Springbokpan and Westonaria. Facilities are being constructed at 11 additional Agri-hubs and 12 farmer production support units in the 44 districts.
  • The Department of Rural Development and Land Reform approved 154 sites for its One Household, One Hectare Programme, which will benefit almost 6 000 households. By the beginning of 2017 six sites have been launched in three provinces benefiting 689 households. An additional 19 sites benefiting 1 294 households were being implemented in Limpopo at a value of R 33 million.
  • R1 billion has been invested to recapitalise 611 farms, thus cultivating 526 452 ha of land that would otherwise be lying fallow.
  • Ninety black commercial farmers will be supported through a Commercialisation Support Programme, which targets 450 black smallholder farmers by 2022.
  • The overall progress with the Strengthening of Relative Rights  (50/50) programme includes the receipt of more than 100 proposals of which 14 had been approved at the end of the 2016/17 financial year. The department has invested an amount of R689 785 benefiting 4 450 people. It will also will acquire 18 farms for the people living and working the land  in 2017/18. This programme will be supported through an investment of  R525 million.
  • In 2016 an Economic Partnership Agreement was concluded with the EU to increase market access for our agricultural produce such as seafood, wine, canned fruit and sugar.  South Africa's partnership with the BRICS countries is also bearing fruit as the export of apples to China grew by 70%.
  • The Department of Trade and Industry has set aside R1 billion to fund an incentive for the agro-processing sector in 2017/18. The incentive will encourage investment in support services, and for the expansion of infrastructure by both farmers and agro-processors. 
  • Aquaculture has shown growth, with production from 2014 up fivefold to 20 000 tons. Year on year growth between 2013 and 2014 was 25%, which exceeds the average global growth rate of 7%. Aquaculture has contributed as much as R3 billion to the economy. At its presentation of IPAP 2017/18-2019/20 to Parliament, the Department of Trade and Industry (the dti) reported that in 2016/17 R85,6 million was approved for 17 aquaculture projects, with a projected investment value of R383,3 million, creating 474 jobs.

Statements:

 

Lead departments

Department of Agriculture, Forestry and Fisheries
Tel: 012 319 6787

Department of Rural Development and Land Reform
Tel: 012 312 8911

3. Advancing beneficiation or adding value to mineral wealth

  • The draft amendments of the Mineral and Petroleum Resources Development Act, which contain provisions to stimulate local beneficiation, were referred back to Parliament in January after concern expressed by the President over whether it would pass constitutional muster. In October 2017, the Bill was before the National Council of Provinces (NCOP) for processing
  • The Department of Trade and Industry (the dti) plans to develop the Mineral Beneficiation Action Plan as part of the objectives contained in its 2015/16 strategic plan. This will be incorporated into the Industrial Action Policy Plan.
  • Minister of Trade and Industry Rob Davies said in his Budget Vote speech in May 2017 that significant industrial development opportunities were emerging in the form of clean energy and mineral beneficiation, which include the development of hydrogen fuel cells using the country’s rich platinum deposits.
  • Mintek provides technical and marketing support to two beneficiation centres recently set up in Upington and Prieska in the Northern Cape. Practical training for making jewellery from semi-precious stones are given at these centres. Existing projects in the North West, Limpopo, Eastern Cape, Free State and KwaZulu-Natal provide training in pottery, glass beads, jewellery, gemstones, cultured granite, sand and stone. These projects have created 460 employment opportunities, mostly in the remote parts of our country.

Statements

Lead department

Department of Trade and Industry
Tel: 0861 843 384
 

4. More effective implementation of a higher impact Industrial Action Policy Action Plan (IPAP)

IPAP is aimed at raising the impact of government interventions to support industrial development and re-industrialise the country.

  • IPAP 2017/18-2019/20 was launched in May 2017. Key features are:
    • Stronger emphasis on the most job-creating sectors and “job-rich” industries such as clothing and textiles, agro-processing, and component manufacturing.
    • Re-doubling efforts to raise aggregate domestic demand for locally manufactured products through localisation of public procurement and persuading the private sector to also support localisation and local supplier development. 
    • Building a stronger system of industrial finance and incentives to support and secure higher levels of investment in the productive sectors of the economy.
    • Beginning to reposition the economy to prepare for the challenges and opportunities arising from the impending disruptive technological changes of the fourth industrial revolution.
  • Government has also introduced the Black Industrialist Programme, which is designed to transform the manufacturing sector and unlock the potential of black entrepreneurs. In May 2017 it was reported that 46 projects run by black industrialists have been approved for support. Government support has allowed these black industrialists to undertake investment projects of R3,7 billion and is projected to create more than 8 000 direct jobs and close to 12 000 indirect jobs. 
  • In 2016 the automotive sector for the first time exported goods to the value of R150 billion. Notable achievements included the country’s largest investment of R11 billion from the Beijing Automobile International Corporation (BAIC). Construction on this project is underway and production is expected to commence in 2018. Toyota SA opened a R6,1 billion assembly line to produce the Fortuner and Hilux. The project attracted five new international suppliers, creating around 2 000 new jobs in the supply chain.
  • More than R20 billion in industrial finance was approved in 2016, creating 27 000 direct and approximately 108 000 indirect new jobs.
  • More than R180 million was committed to upgrade six industrial parks across five provinces. The first phase of the revitalisation of Babelegi industrial park in Hammanskraal as well as the new Vulindlela Heights park in Mthatha were launched in May 2017.
  • Rail and ship manufacturing has been successfully revitalised, with ships for the South African Navy and locomotives being built in South Africa.

Statements:

Lead department

Department of Trade and Industry
Tel: 0861 843 384
 

5. Encouraging private-sector investment

  • President Zuma announced in August 2015 that an investment clearing house is being set up in the dti to support local and international investments. It will help identify bottlenecks, remove administrative barriers, reduce regulatory inefficiencies, set up norms and standards, improve turnaround times, and coordinate and fast-track investment enquiries.
  • In the previous financial year the department helped facilitate an investment pipeline of over R43.8 billion.
  • Big drivers of investment are the five industrial development zones.
  • Progress is being made in finalising the regulations for special economic zones (SEZs). A board has been established for the SEZs and a supporting secretariat has been approved. The department is close to completing the feasibility studies for the eight new SEZs. 
  • The Maluti-a-Phofung Special Economic Zone was launched on 25 April 2017. 
  • The Protection of Investment Bill, which is aimed at clarifying the level of protection that an investor may expect in South Africa and to further ensure that South Africa remains open to foreign investment, was tabled in Parliament.
  • A One Stop Shop or InvestSA initiative has been established to remove obstacles to doing business in South Africa. The project, overseen by the Inter-Ministerial Committee on Investment, works actively to assist potential investors  to fast-track company registrations, water or energy licensing, environmental impact assessments, visa requirements and other imperatives. 

Statements:

Lead department

Department of Trade and Industry
Tel: 0861 843 384

6. Moderating workplace conflict

  • Deputy President Cyril Ramaphosa is leading a special dialogue between business and labour to improve labour relations.
  • An agreement was reached on the national minimum wage of R20 per hour, which will benefit an estimated 6.6 million South Africans. It will advance the country’s efforts to address the challenges of wage inequality and labour instability. The agreement was signed in February 2017.

Statements:

Lead department

Department of Labour
Tel: 012 309 4662

7. Unlocking the potential of SMMEs, cooperatives, townships and rural enterprises

  • The Department of Small Business Development, through the Black Business Support Development Programme (BBSDP), supported 611 small businesses and disbursed grants to the value of R268 million during the 2016/17 financial year.
  • During the same period the Cooperative Incentive Scheme (CIS) supported 237 cooperatives and disbursed grants to the value of R64.85 million. In total, R333 million was spent towards supporting cooperatives and small businesses. 
  • In 2017/18 the department is targeting 641 beneficiaries to the value R256 million for BBSDP and for CIS has targeted 302 beneficiaries whose projects are valued at R78 million.
  • The Small Enterprise Finance Agency (SEFA) continues to contribute to the stimulation of the economy through the financing of small enterprises. During the 2016/17 financial year alone, SEFA disbursed just over R1 billion to SMMEs and Cooperatives, which benefited approximately 44 000 enterprises.
  • The Small Enterprise Development Agency (SEDA) supported 12 215 aspiring and existing entrepreneurs in 2016/17.
  • National Treasury gazetted the revised Preferential Procurement Regulations in January 2017. It encourages Government and its entities to procure at least 30% of goods and services from SMMEs and cooperatives. Some provinces and national departments are already exceeding this target.

Statements:

Lead department

Department of Small Business Development
Tel: 012 394 3027

8. Boosting the role of state-owned companies, information and communication technology infrastructure and broadband roll-out, water, sanitation, transport infrastructure as well as science, technology and innovation

  • Government is making progress with its broadband rollout: by August 2015 41 351km of fibre optic cables had been laid. The planned implementation of the first phase of South Africa Connect was delayed as there was no successful bidders for the project. State entities will now implement this critical project. In the2017/18 financial year, R416 million has been set aside to connect 2 700 sites. 
  • Telkom's wholesale division Openserve facilitates the entry of new Internet service providers, particularly black companies.

Source: Minister Siyabonga Cwele: Telecommunications and Postal Services Dept Budget 2017/18

Working closely with the industry, the Department of Science and Technology is implementing a technology localisation strategy. This has ensured that the R2 billion MeerKAT telescope is constructed with 75% local content and has also led to job creation in the Northern Cape and diversification of the economy through the creation of artisan and maintenance jobs, and the promotion of science as a career of choice.
Source: President Jacob Zuma: State of the Nation Address 2017

Government has identified water as a critical resource for economic development and work continues to implement the Five-Point Plan for water and sanitation. The plan entails:

  • Maintaining and upgrading existing water and sanitation infrastructure.
  • Building new dams and developing ground water.
  • Improving water quality.
  • Developing smart technologies for water and sanitation information management.
  • Ensuring an enhanced and integrated regulatory regime such as water-use licensing.

Progress with regard to water and sanitation include:

  • To alleviate the pollution in the Vaal River System, the Oranjeville Waste Water Treatment Plant in the Metsimaholo District Municipality and Leeuwkuil Waste Water Treatment Plant in the Emfuleni District Municipality were refurbished at a cost of R44.4 million. This is part of the R300 million set aside to upgrade 24 dysfunctional waste-water treatment works in parts of Gauteng and the Free State.
  • The Ncora Bulk Water Treatment Works Project in the Eastern Cape, which is estimated to benefit 17 887 families from 208 villages, was opened.
  • The Drakenstein Waste Water Treatment Plant was launched and handed over to the Drakenstein Municipality in the Western Cape.
  • The Mokolo and Crocodile River (West) Water Augmentation Project, which supplies water to the Lephalale Local Municipality, Eskom's power stations (Matimba and Medupi), the Zeeland water treatment plant, and Exxaro's Grootegeluk Mine, was completed. It also transfers water from the Crocodile River West near Thabazimbi to the Lephalale area.
  • The training of youth as plumbers and water agents continued as part of the War on Leaks programme. Government plans to train 15 000 young people to help curb the R7 billion a year water losses.

Source: Presidency on progress from 1 April 2016 to 31 March 2017

Progress with transport infrastructure:

  • SANRAL has started with the planning phase of a R4.5 billion project to upgrade the current Moloto road (R573). At the end of the project, 12 500 jobs will have been created. A railway line are currently under construction to lighten the load on the road, thereby ensuring the safety of road users and bringing to an end the accidents that claim many lives. During 2016, South Africa also signed a cooperation agreement with the People’s Republic of China (PRC) to build the Moloto Rail Development Corridor.
  • Through the Provincial Road Maintenance Grant, popularly known as S’hamba Sonke Programme, 137 887 jobs, of which 28 933 are filled by youth, 54 918 by women and 180 by people living with disabilities, have been created.

Source: Minister Joe Maswanganyi: Transport Dept Budget Vote NCOP 2017/18

Statements

Lead departments
Department of Telecommunications and Postal Services
Tel: 012 427 8000

Department of Water and Sanitation
Tel: 012 336 7500

Department of Transport
Tel: 012 309 5000

Department of Science and Technology
Tel: 012 843 6300
 

9. Operation Phakisa

Government has made much progress since it launched its fast results delivery methodology, Operation Phakisa, in the health and ocean economy sectors in 2014. The programme has since been expanded to mining and agriculture, in particular aquaculture.

  • Progress has been made in small harbour upgrades such as Saldanha Bay, Struisbaai, Gansbaai, Gordon’s Bay and Lamberts Bay.
  • Preparations have started for the planned National Small Harbours Development Laboratory.
  • The Port of Durban has seen the completion of the Outer Dry Dock Caisson to improve safety. The upgraded Durban Dry Dock will be key to attracting ship repair business.
  • Government plans to establish the single largest boatbuilding facility in southern Africa. The KwaZulu-Natal Boatbuilding Park in the Port of Durban will harvest potential from new investment, exports and job creation.
  • The ports of Port Elizabeth and Cape Town are also the target of new developments.
  • Ten fish farms have been supported with the industry investing R3 million, government R105 million and 521 new jobs created.
  • Operation Phakisa had also resulted in decisions to expand the domestic shipbuilding sector and the development of Saldanha Bay as an oil and gas hub. On 2 June 2017 the Saldanha Bay Industrial Zone was declared in Gazette 40883.
  • Richards Bay Port - The repair berth located at the Small Craft Harbour is planned with a projected boost of R26.34 billion, R5.4 billion of which shall be invested in a ship repair terminal and dry docking facilities in the medium term, while the complete project life will be 30 years. The private sector is encouraged to invest in the construction of a floating dock moored to the repair quay and/or fixed dock facility at the Causarina near the Richards Bay Industrial Development Zone. There are also plans to deepen the existing berths.
  • By October 2017 Oceans Economy projects have unlocked a combined R24.6 billion in investment from government and the private sector, and have created more than 6 500 jobs.

 

More about Operation Phakisa:

Lead departments

Department of Environmental Affairs (Oceans Economy)
Tel: 012 395 1682

Department of Mineral Resources (Mining)
Tel: 012 444 3000

Department of Health (Health)
Tel: 012 395 9591

Department of Tourism (Tourism)
Tel: 012 310 3631

Department of Basic Education (Basic Education)
Tel: 012 357 3000

Source: GovComm November 2015

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