• Part one- opening remarks
• Part Two-year- What we achieved in the 2003/4 financial
• Part 3 - Our vision and plans for the next three to five years including how the budget supports our strategy
• Part Four - Our achievements in the first-half of the 2004/5 financial year

• At 1st budget presentation in 2000, the dti had under spent by almost 1/3!
• In 2004, by working together, we have balanced the budget! Continue good working relationship between the department and parliament:
• Oversight role of the committees in ensuring the department fulfills its mandate
• Contribution the committee makes to policy development (IMS, cooperatives, Apex Fund)
• Giving strategic leadership and direction to the department to assist it to make choices about priorities

• Public-private partnership to finance and construct the new dti campus
• Research study on the effects of a volatile exchange rate on manufacturing exports
• Launch of an industry forum for dialogue with sectors
• Development of a set of key performance indicators to measure the impact of the dti's work on the economy
• Web-based research database launched
• Research fellowship programme with Pretoria and Vista Universities launched
• Investment Climate Survey, in conjunction with the World Bank, initiated

• Leadership at the World Trade Organisation Ministerial in Cancun and participation in the formation of the G20 group of developing countries
• Five negotiating sessions were held between 5ACU and the US as part of the free trade agreement negotiations
• Three negotiating sessions were held with EFTA as part of the free trade agreement negotiations
• Negotiations between SACU and Mercosur on are on-track
• Exploratory talks were conducted with India and China
• 10 Investment Protection Agreements and Bilateral Cooperation Agreements concluded, 20 technical and trade missions to other African countries Turnaround time for tariff investigations has been halved from 6-months to 3-months
• Improvement in compliance with import and export controls -287 inspections conducted
• 17 100 import permits issued - 5583 export permits issued

• More than 15 000 small enterprises were trained, mentored and assisted by Ntsika
• 213 training courses were provided by Ntsika and 3 new courses were developed
• 282 service providers were trained and 209 were supported by Ntsika
• Khula provided 628 credit guarantees to the value of R180m
• R99.3m in loans was disbursed by Khula
• 1477 properties were provided to SMMEs by Khula's Property Portfolio
• Khula financed 3 new retail finance institutions
• Khula equity fund financed deals to the value of R19,6m
• Namac assisted and supported more than 2000 manufacturing enterprises creating 1744 new jobs and retaining 14 726 existing jobs

• Technology and innovation projects worth ~05m supported through SPII
• 1125 researchers, 2651 students, and 376 enterprises supported through Thrip
• 292 new technical standards issued, and 301 standards revised
• 29 medical labs, 22 inspection bodies, and 25 test labs accredited and certified through SA National Accreditation System
• 3 research studies on critical skills completed: transport sector, chemicals sector, and Top 500 companies
• Publication of the broad-based black economic empowerment strategy and the enactment of the Act
• Participation in strategic charter processes - financial services, maritime, tourism
• More than R4bn loans to black companies approved by IDC

• Draft corporate law reform policy finalised
• Draft consumer protection policy finalised
• Comprehensive research on consumer credit patterns completed and presented to Cabinet and Parliament
• Consumer credit complaints have fallen from between 1 and 12 months, to between 3 and 20 days, time to resolve a consumer complaint has fallen from between 90 and 180 days to between 1 and 3 days - a 600% improvement!
• 82 complaints were resolved by the Competition Commission
• 250 mergers were approved by the Competition Commission
• R286m of lotteries funds was paid out: 61% to charities, 22 to sports and recreation, and 14% to arts, culture and heritage

Key outputs delivered- programme 5: The Enterprise Organisation

• Investment incentives
• 6000 enterprises
• R1, 3bn investment generated
• 19 700 new jobs created
• 44 500 jobs sustained
• 40 new technology projects
• Infrastructure investments
• R2, 4bn investment in 7 infrastructure projects
• IMS support measures
• 247 enterprises
• Black business supplier development programme
• 259 enterprises
• 15 Strategic Industrial Programme projects approved
• R4.7bn investment

• Average of 88 000 website hits per month
• 10 000 new clients were reached through phase 2 of the dti Business Express, 500 000 clients were reached through exhibitions and events
• Almost R5m people read the dti's regular publications Sisebenza Sonke, My Business, businessSA and 76 ad hoc, one-off or specialised publications, brochures and pamphlets were published
• In total, over 3,52m economic citizens were reached through publications and advertising
• 76% of all calls are handled within 30 seconds
• 98% of all escalated queries are resolved within 48 hours

1999 to 2004: A period of consolidation for the dti

• Fundamental transformation of the organisation
• Improved strategic planning and allocation of resources to priority areas
• Improved efficiencies
• Improved outreach and customer service
• Elimination of under spending
• No real increases (above inflation) in the budget
• New mandates and expanded activities funded from savings and efficiencies

This new process involved:

• Strategizing - setting out a common vision of where we want to go as a department
• Planning - putting together a set of concrete and practical tasks to achieve the vision
• Budgeting - allocating money and people to these tasks
• Making strategic choices about which tasks were the most important, which would have the biggest impact
• Getting different parts of the department to work together more closely on shared tasks
• Measuring and evaluating whether we are on track and having desired impact on the economy

• the dti's mission and vision are a1igned with government’s broader economic policy goals
• the dti's strategic objectives are aligned with government’s economic programme of action
• A comprehensive set of key performance indicators is being used measure progress in achieving our strategic objectives - first review is underway
• Significant improvements in strategic planning and the involvement of agencies in strategic planning has led to improved spending on the right things

• Increase the contribution of small enterprises to the economy
• Significantly progress broad-based black economic empowerment
• Increase the level of direct investment overall and in priority sectors
• Increase market access opportunities for and export of South African goods and services
• Contribute towards building skills, technology and infrastructure platforms from which enterprises can benefit
• Reposition the economy in higher value-added segments of value matrices in knowledge-driven manufacturing and services
• Contribute towards providing accessible, transparent and efficient access to redress for economic citizens
• Contribute towards the economic growth and development of the African continent within the Nepad framework
• Contribute towards building a single economy that benefits all and bridging the divide between the first and second economies
• Building an efficient, effective and accessible organisation to achieve these outcomes in a sustainable and economical manner

• Launching the Apex Fund for micro-credit this year
• Merging Ntsika and Namac into a single agency this year with an annual budget of R120m
• Providing financial and technical assistance to cooperatives later this year including financial support to the National Cooperatives Association of SA
• Implementing a cooperatives development strategy
• New legislation to promote and support franchising
• Enterprise development bill to provide streamlined system of providing grants and incentives to all kinds of enterprises in all sectors
• Financial support the SA Women's Empowerment Network
• Financial support to Khula

• Implementing the Broad-Based Black Economic Empowerment Strategy including establishing the Advisory Council and gazetting the Codes of Good Practice
• Introducing new financial products for black-owned companies including grants, equity and loans
• Re-launching and capitalising the National Empowerment Fund
• Monitoring the charter processes in various sectors
• Advocacy around further procurement reform
• Women empowerment strategy and products

• Approximately R1.5bn in investment incentives for enterprises per annum
• R220m each year for investment promotion and facilitation and a more targeted investment strategy
• R100m for sector strategy development and projects to grow per annum
• Completion of the investment climate survey
• New incentives for labour-intensive sectors and target groups
• Improving the functioning of foreign economic offices
• Regional initiatives like cross-border Spatial Development Initiatives and the Coega Industrial Development Zone

• R100 on bilateral and multilateral trade negotiations each year
• Almost R1 bn per annum on export development and export promotion
• Including, the Export Credit Insurance Corporation
• Plus the Export Marketing and Investment Assistance scheme
• Oversight and funding of the International Trade Administration Commission
• Implementing strategy to increase levels of intra-African trade

• Advocacy role in the cluster and working with other government departments
• R100m for critical infrastructure projects per annum
• R7,6m for the Youth Internship Programme in the ICT sector this year
• Expansion of the Technology and Human Resources for Industry Programme
• Support Programme for Industrial Innovation
• Financial support to establish technology incubators
• Technology for Women in Business programme Establish of Centres of Excellence

• Implementing the Integrated Manufacturing Strategy and sector strategies
• Identifying new growth sectors
• Addressing import parity pricing
• Providing incentives for enterprises that support moving up the value chain such as the competitiveness Fund and the Sector Partnership Fund
• Fund for Research on Industrial Development, Growth and Equity at Nedlac
• Workplace Challenge programme (also a Nedlac initiative) Development and implementation of a geographic spread strategy

• Approximately R 95m per annum for efficient and accessible regulatory services
• Consumer Protection Law, Consumer Credit Law and Corporate Law reform processes will be completed
• Education and communication campaigns including the consumer help-line
• Improved enforcement and compliance of consumer and corporate regulations
• Establishment of specialised regulatory services aimed at improved consumer protection

• Registering companies and close corporations
• Issuing technical standards,
• Resolving consumer complaints
• Investigating anti-competitive practices
• Issuing General System of Preferences certificates to exporters
• Issuing import and export permits
• Conducting tariff investigations
• Answering 16 000 calls per week from economic citizens seeking information about the dti and about the economy, opportunities and available support

• Rolling out an extensive programme for the training and development of staff
• Introduction of flew reporting and measurement Systems to make sure we meet our targets
• Extend our accessibility to economic citizens through our marketing efforts and investigating new delivery channels
• Investing time and resources into ensuring the dti agencies deliver on their mandates

Current spending trend vs. budget: 5 years comparison

From 2000/01 to 2006/7, the average annual increase in the budget of the dti is 6.8%

• R2,159bn in 2000/01
• R2, 848bn 2004/5
• R3, 023bn in 2005/6
• R3, 213bn in 2006/7

• Staff costs = 9.9%
• Procurement of goods and services- 12.5%
• Transfers to agencies =38.5%
• Grants to enterprises =31.6%
• Equipment =0.5%

Part Four

Our flagship projects for this year- what are ‘flagships’?

• These are our 'non-negotiables' - outputs that must be delivered during the 2004/5 financial year
• Flagship projects receive priority attention and are subject to monthly monitoring of progress
• Many of the flagship projects were included by President Mbeki in his State of the Nation Address in May 2004
• Combination of projects aimed at institutional capacity-building and interventions aimed at bridging the divide between the first and second economies

1. Successful move to the new dti campus
2. Implementation of the key elements of a systematic monitoring and evaluation system
3. Managing tile transition from the 2^nd to 3^rd administration
4. Implementing a people development strategy to upgrade the competencies of staff
5. Investigating and design a 'retail option' for improved delivery of the dti's services
6. Operationalisation of the Apex Fund
7. Establishment of a single enterprise development agency
8. Implementation of the bbBEE strategy
9. Commence with the implementation of the cooperatives development strategy
10. Implementation of the consumer credit law reform process
11. Finalise and submit to Parliament an Enterprise Development Bill
12. Development of a geographic spread strategy
13. Development of an intra-African trade strategy

• Significant progress on the operationalisation of the Apex Fund
• Significant progress on establishment of SEDA
• Cooperatives Bill submitted to Cabinet and Cooperatives Development Strategy developed and debated at Nedlac
• Annual review of the state of small enterprise in South Africa completed
• Regulatory impact study of small enterprises completed

• Codes of good practice prepared for submission to Cabinet
• Nominees to the BEE Advisory Council identified, discussed with Presidency and to be submitted to Cabinet
• 180 black-owned enterprises supported through the Black Business Supplier Development Support Programme
• National Empowerment Fund re-launched with new products and R150m capitalisation
• Participation in private-sector charter processes
• Advocacy and education activities

Outputs delivered since 1 April 2004- we will raise the level of investment in the economy as a whole and in priority sectors

• Hosted 7^th meeting of President's International Investment Council}
• Conducted five investment missions
• Supported 4600 enterprises through the Small and Medium Enterprise Development Programme
• Leveraged R2bn investment through the Strategic Industrial Programme
• Continued with Investment Climate Survey

• Conducted 6 technical missions to other African countries
• Participated in various meetings of the World Trade Organisation
• Held negotiations on trade agreements with EFTA and US
• Concluded preferential trade agreements with Croatia and Turkey
• Supported 1040 exporters through the Export Marketing and Investment Assistance programme

• Established 3 technology incubators
• 30 projects funded through the Support for Industrial Innovation Programme (SPII) to value of R185rn
• Technology and Human Resources for Industry Programme (Thrip) has supported 1049 researchers, 2100 students, and 350 enterprises
• Three Critical Infrastructure Programme projects supported infrastructure projects to the value of R423m
• A study into technology trends in priority sectors was conducted and launched

• Ongoing work to develop a geographic spread strategy International conference on competitiveness was hosted by the dti
• New growth sectors have been identified for further investigation such as an Oil and Gas Service Hub
• Ongoing work on import parity pricing

• Cabinet has approved a Consumer Protection policy
• Consumer Credit Bill has been approved by Cabinet
• Corporate Law Reform discussion paper has been published and extensive consultation process rolled-out
• Further improvements in turnaround time for dealing with consumer complaint investigations
• Establishment of the National Liquor Authority

• Rolling out an extensive programme for the training and development of staff
• Introduced new reporting and measurement systems
• Established a new Agency Management Unit
• Extended the dti's strategic planning process to all our agencies
• Reached 2.18m economic citizens through marketing efforts

• In 2004, the dti ended a period of consolidation and is ready for improved delivery to economic citizens
• The success of the transformation of the dti s3nce 2000 s evident in the elimination of under spending
• Our strategic planning process gives us confidence that we are supporting government's goals and that we can deliver The results of the first six-months since new strategy was implemented indicate that we are on-track
• Looking forward, the challenge is to demonstrate impact on the economy in the areas of Economic Growth, Employment and Equity