GOVERNMENT’S PROGRAMME OF ACTION - 2006

ECONOMIC CLUSTER

Updated 09 May 2006

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Progress update - 09 May 2006

1

ENSURING ALIGNED AND SUPPORTIVE MACRO-ECONOMIC APPROACHES

1.1

Modeling and Scenario planning for AsgiSA

NT,Presidency, DPE, NT, DTI

Jul-06

Modelling work to be completed by end Jun-06

1.2

Model infrastructure impacts of AsgiSA

NT, DPE, DTI

Jul-06

To be presented to Cabinet in Jul-06

1.3

Cabinet's decisions on administered prices should be implemented including publishing a policy on administered prices, using the administered prices index established by StatsSA

NT, DTI, Stats SA, DME

Jun-06

Relevant departments are developing policy

1.4

Finalising governments approach to the issue of import parity pricing including intensifying negotiations with key private sector players

DTI, DPE

May-06

Measures announced in Apr-06 include: Getting access to global commodity price-monitoring database in progress; The Competition Act to be strengthened; and Import tariff protection on product lines to be reviewed

2

BUILDING A COMPETITIVE AND LABOUR-ABSORBING ECONOMY

2.1

Grow bio fuels industry targeting job creation including the finalization of a bio fuel strategy and business plan

DME, DST, DOA, DTI, DEAT, DOT, DLA, DWAF, NT

Jan-07

Strategy to be completed in Nov-06. DME leading investigation. CEF and IDC are examining projects to aid Biofuels commercialisation for Cabinet to make informed decisions

2.2

Complete draft of RIA system and introduce into regulation making procedures and complete regulatory reform (small business project)

Presidency, NT, DTI

Dec-06

Research work completed and presenting findings to national government departments. Consultations will end Jun-06 then proposals for implementation will be submitted to cabinet for discussion

2.3

Finalise and begin implementation of the National Export Strategy in collaboration with industry to expand access

DTI

Apr-07

National Export Strategy text to stakeholders by end May-06 with a view implementation from Jun-06

2.4

Formulate industrial policy framework including competition policy review, beneficiation, investment plans, trade linkages, etc

DTI

Oct-06

The final draft to be tabled at the July Lekgotla. Coordinating committee for development of beneficiation incentives established and consulting with relevant stakeholders. A competition policy review is underway

2.5

Bring down the cost of ICT by developing high speed national and international broadband capacity.

DOC, DTI, DST, DPE

Nov-06

Announcement of special policy directives at national level is imminent, following signing of the Electronic Communications Act by the President. The NEPAD-led EASSY Sub-marine cable project is on target for completion by 2008

2.6

Grow BPO&O sector to enhance job creation by finalizing incentive package including skills development

DTI, DOC, DPE, DOL

Jul-06

The 5 work streams set out in the business plan launched. Training programme for 35,000 people designed. Funding proposal prepared and incentives options identified &prepared. Discussions to establish special purpose vehicle well advanced

2.7

Accelerate growth of tourism sector concentrating on key constraints which include airlift capacity, skills development, marketing etc

DEAT, DTI, DOT, DPE, StatsSA

Mar-07

Public comment on draft strategy being incorporated into final document. Project implementation underway. Tourism Statistics definitions systems finalised. SA Tourism2006/07 budget raised to R415m

2.8

Promote Research and Development through increasing public sector R&D and increasing total R&D spend to 1% of GDP

DST

Ongoing

Incentives environment for private sector report finalised. New R&D incentives announced in 06 budget. Guidelines to be finalised by Jul-06. Information roadshows for Aug-Oct 06

2.9

Finalise policy and plan regarding multiple operators in rail and ports, and relationship between operations and infrastructure in rail sector

DOT, DPE

Jun-07

Integrated strategy driven including Freight logistics strategies. Projects include City Deep, Johannesburg International Airport IDZ and King Shaka International Airport

2.10

Implement taxi recap within a reformed bus subsidy system

DOT, DTI

Ongoing

Implementation continues

2.11

Finalise the Integrated Agriculture Development Plan

DOA, DTI

Dec-06

Incorporating findings of research work by Agriculture as contribution to AsgiSA including key areas of intervention identified by the AsgiSA document

2.12

Finalise Cultural Industry Sector Strategy

DTI, DAC

Apr-06-07

DAC, DOC and National Film & Video Foundation aligning strategies on industry development

2.13

Implement Chemicals Sector Strategy with proposals for restructuring of State Owned Enterprises in the sector

DTI, DST, DPE

Jun-06

The phase 1 report on the industry structure, competitive dynamics & vision including describing value chains within which chemical SOEs reside completed

2.14

Finalise Clothing and Textiles sector strategy

DTI, DOL, NT, SARS

Apr-06

The Minister of Trade and Industry will meet with stakeholders to discuss sector strategy

2.15

Strengthening implementation of IDZ

DTI, NT

Jun-06

Converting the existing IDZs to national public entities owned by the dti and develop monitoring system for business plans and funding disbursements; Finalize amendments of IDZ regulations under Manufacturing Dev. Act. Establish effective one-stop centre

2.16

Integrated approach to 2010 to achieve increased rate of investments by exploiting private investment, development of SMME’s etc

DSR, DTI

Ongoing

A 2010 enterprise plan, identifying sectors that will benefit from the event, will be drafted by Jun-06

2.17

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

DTI, NT, DPW, DEAT

Mar-07

Several strategy documents have been prepared. Discussions with economic and social cluster departments to develop sector strategies are underway

2.18

Promoting the region as an astronomy and space science global hub including the launch of the space council and ratification of UN treaty on outer space

DTI, DST

Ongoing

National space policy being finalised, Space Council being appointed and ratification of UN treaties is being prepared

3

MASSIVELY INCREASE PUBLIC INVESTMENT

3.1

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, DPLG

Jul-06

PPP Unit assisting government departments and institutions wishing to implement partnerships and ensuring compliance with regulations

3.2

Develop Olifants river system

DWAF

Apr-06

Response on environmental authorisation appeal solution from DEAT pending. Preparation of environmental management plans due end Oct-06. Land valuation of rights & interaction with RLCC due Aug-06. De Hoop Dam tender design &documentation complete Jul-06

3.3

Develop Durban – Gauteng Corridor

DOT, DPE, DTI, Provincial DOT, Joburg, Ethekwini

Ongoing

City Deep and its supply chain's stakeholder committee being established. Developing a Freight Logistics Plan for Durban

3.4

Roll-out Sentech Wireless Broadband network

DOC, DOE, Health, DTI, DST

Mar-07

The roll-out plan is being finalised and discussions on funding are advanced

3.5

Review capital expenditure procurement of SOE’s for AsgiSA infrastructure projects

DPE, DTI, NT

Jul-06

Local content procurement policy review by Jul-06; and definition of best-practice procurement in relation to local content optimization

3.6

Revise environmental impact assessments regulations

DEAT, DTI

Jun-06

Chapter 5 of National Environmental Management Act and draft new regulations completed and published for public comments. Implementation to commence in Jul-06

3.7

Build and monitor system for infrastructure implementation and impact in particular electricity, water, rail, air-transport, road as reflected in AsgiSA

DPE, DWAF, DPLG, Presidency, NT

Jul-06

Establishment of capital projects database across all sectors of government in progress. Eskom developed an investment dashboard overarching summary of status of infrastructure program. Web-based template on status of Transnet & Denel capex programs

3.8

Finalise investment plan for public rail passenger transport (detailed plan needs to be submitted to Cabinet)

DOT, DPE, NT

Dec-06

Terms of reference for consolidated rail entity business plan to be developed by Jun-06. Establishment of rail economic regulatory capacity in progress. Independent port regulator to be established in 2006/7 & RER to be fully established in 2008/9

3.9

Finalise investment in five top freight border post, working with JCPS Cluster (see JCPS 4.2.2)

DOT, NT, DPW

Jul-07

New study to be undertaken under auspices of the Border Control & Coordinating Committee in follow up to the first study

3.10

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

DPE, NT, DPSA

Jun-06

Shareholder management conceptual framework; remuneration guidelines; and generic performance focused shareholder compacts drafts completed. Engagement with stakeholder departments is underway

3.11

Submit report to Cabinet on better utilization of Public Investment Commission's Isabaya Fund

NT

Dec-06

Work in progress

4

EQUITY AND DEVELOPMENT

4.1

Finalise sector BEE Charters, Codes of Good Practice and establish BEE Advisory Council ,

DTI, NT, DOC, DME, DOA, DWAF, DEAT Presidency

Sep-06

Process of finalizing sector transformation charters underway. 2nd phase of codes process to be finalised by Jun-06, subject to extent of public submission. BEE Advisory Council to be in place by effective date of codes

4.2

Finalise and implement strategy for financial and non-financial support to co-operative enterprises

DTI, DOA, DPW

Dec-06

Financial and non-financial support measures include Co-op start up grant, technical assistance fund, capacity building programme, and alignment of CTII support programmes. Regulations publicised for input to implement new legislation effectively

4.3

Develop appropriate infrastructure for and technical support for trading markets including street trading

DPLG, DTI

Jun-07

Infrastructure projects within the urban renewal programme identified. Terms of reference for appointment of architect distributed to firms for costing exercise assistance. Agreement between DPLG LED Unit and GTZ signed

4.4

Implement set-asides for SMME’s and ensure timely payment

DTI, NT

Jul-06

Identification of 10 products for SMME preferential procurement and development of conceptual framework are all in progress

4.5

Ensure incorporation of SMME needs in sector strategies, and promote specific sectors such as arts and crafts to benefit Second Economy communities

DTI, Presidency

Ongoing

Needs of SMMEs are incorporated into sector strategies via the Customised Sector Programmes methodology

4.6

Improve access to finance for micro-enterprises, including access to finance for SME’s by leveraging FSC R5 billion commitment

DTI, DOA

Ongoing

Provincial establishment of Apex being completed, funding and guarantee programmes are being prepared

4.7

Develop call centres in five poor communities

DPE, DPLG, DTI, DOC

Call centre model completed and visits to 10 proposed call centre facilities to assess suitability completed. Request for proposals for call centre design ready for review by SA Call Centre Community

4.8

SEDA to operate and open offices in all provinces and develop new products

DTI

Apr-07

8 provincial offices have been opened rolling out 24 one stop shop branch offices on district/metro level and 81 enterprise information centres on local authority level.

4.9

Implement Cabinet decision regarding regulatory reform for small business

Presidency, DTI,NT, DOL, DPLG

Dec-06

DoL will hold a roundtable discussion on the impact of labour laws on small business development. Other decisions of Cabinet taken up by various departments

4.10

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

GCIS, EIE Cluster

Ongoing

Updated publication on economic opportunities published in all languages. Facilitators trained and dissemination workshops have started. 13 part SABC TV series on economic opportunities to be reflighted in Oct-06

4.11

Collaboration with JSE to increase its role in enterprise development

Presidency, DTI

Ongoing

Discussions in progress

4.12

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

DLA, DOA

Apr-07

Preparatory work for implementation of CLaRA in progress including stakeholder workshops and development of CLaRA amendment bill. Provincial implementation strategy to be produced by Mar-07

4.13

StatsSA and relevant govt agencies to 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,

Apr-07

The main community survey will be run in Feb-07 and deliver results by Nov-07. Survey of employers and self-employed delivered May-06. 15 municipalities have concluded a pilot proving physical addresses

4.14

Intensify implementation of Expanded Public Works Programme

4.14.1

Ensure utilization of public works methods in public sector infrastructure projects and pool resources to ensure better impact

DPLG, DPW, NT, DOT

Ongoing

Labour intensive methods are being spread through EPWP and training for contractors

4.14.2

Meet annual targets to ensure creation of at least 1-million work opportunities by 2009

DPW

Quarterly review

Approx. 250,000 net work opportunities created for the first 6 quarters of the EPWP

4.14.3

Finalise modality for larger projects for access roads and scale up road building

DPW, DPLG, DOT, NT

Dec-06

Proposal for labour-intensive methods of scaling up road construction and maintenance in 2007/08 being discussed with NT

4.14.4

Complete plan for maintenance of general public infrastructure

DPW, DPLG

Dec-06

Draft maintenance strategy is being finalised

5

ENSURE PRIORITY SKILLS FOR THE ECONOMY

5.1

Achieve 2006-2007 annual targets of the NSDS: scarce skills programmes incl learnerships and apprenticeships; take in 25 000 workers and 25 000 unemployed young people incl designated groups; skills programme supports 90 000 unemployed

DOL, DOE, DST, DTI, DHA, DPE, SS Cluster

Apr-07

NSDS 2005-2010 has annual targets and reports are received and consolidated quarterly. Targets programs by end Dec-05: scarce skills workers exceeded; for unemployed in skills programmes-90%; unemployed youth registered -68%

5.2

Expand intermediate and high level skills: Maths and Science (Dinaledi schools) and National Research Chairs Programme, working with the Social Sector Cluster

DOE, DST, DPE, SS Cluster

Dec-08

400 schools now in Dinaledi programme. Will be extended to a further 190 schools in 2007

5.3

Develop and implement Employment Services System by March 2007: Register work-seekers, register placement opportunities, provide matching services; Career guidance, counseling, information and skills development referrals

DOL, DOE, DST, DTI, DHA, DPE, DPE, StatsSA

Mar-07

Refocused strategic plan. Implementation teams being established around departmental work plan for 2006/7. Preliminary stand alone systems development completed with UIF, Career Information System, etc.

5.4

Establish and run Joint Initiative on Priority Skills Acquisition (JIPSA)

Presidency, DTI, DPE, DOE, DOL, DST, DPSA, DHA

Mar-06 and ongoing

JIPSA launched in Mar-06. Outline operational plan agreed and more detailed work to be discussed by the Technical Working Group in May-06

5.5

Implementation of policy framework relating to immigrant labour

DHA, DTI, DOL

Ongoing

Work permits quotas gazetted: science and engineering,1500; educational professionals,1000; Itspecialist,3500; health professional,5450; agri science professional,8760; management and commerce,1500

Report created: 09 May 2006