• Part One -What we achieved in 2004/5
• Part Two - Our vision and plans for the next three years
• Part Three - How the budget supports our strategy

• Greater contribution of small enterprises to the economy
• Significant progress in broad-based black economic empowerment
• Higher rates of investment
• More market access opportunities and higher levels of exports
• A more competitive economy Greater access to redress for economic citizens Contribution to African economic development
• Bridging the economic divide between the first and second economies

Key outputs delivered-increasing the contribution of small enterprises to the economy

• Annual Review of Small Business
• Regulatory impact study completed
• Establishment of the Small Enterprise Development Agency
• Establishment of phase 1 of the Apex Fund
• Finalised the cooperatives legislation and development strategy
• Khula disbursed R337m in loans

• 44Community Public Private Partnership projects mainly in rural areas

• Implemented the BEE strategy

• Strategy was revised and released with a new scorecard and the codes of good practice
• Participated in seven sector charter processes Investigating financing mechanisms

• National Empowerment Fund:

• Re-launched in May 2004 with new products and capitalised by R550m
• R5,5m of transactions have been completed and R138m of transactions are currently being processed
• Progress has been made in building the organisation's capacity to meet demand

• Black Business Supplier Development Programme supported 528 small, black-owned enterprises

• Investment promotion and facilities

• 15 investment missions, 20 investment seminars, 77 site visits with potential investors
• Negotiations with Alcan, Tata, and other foreign investors
• Facilitated major investments in the metals, auto, and agro-processing sectors
• R1,2bn investment facilitated by the dti foreign offices

· Investment financing

• More than 12 000 enterprises received grants from the Small and Medium Enterprise Development Programme
• More than R3bn was disbursed by the IDC
• 14 projects qualified for the Strategic Industrial Programme and a further 6 applications worth R6bn in investment are being considered

Export development and promotion:

- ~,5bn of exports generated through the dti foreign offices

- More than 1000 enterprises supported through the Export Marketing and Investment Assistance scheme

- Almost 6 500 enterprises received export-related advice or information

- 3 export seminars were held, 13 National Pavilions took place, and 27 trade missions were conducted

- Export Credit Insurance Corporation supported loans to the value of R924m

Trade ne2otiations and market access:

- Ongoing participation in the WTO Doha Round

- Ongoing negotiations to conclude the U5-5ACU trade agreement

- Conclusion of a Mercusor-SACU trade agreement

- Concluded trade agreements with Croatia and Turkey

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Investment pr9motion and facilitation:

Export develoi,ment and promotion:

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- Counterveiling regulations were completed

- Twenty tariff changes were effected

- ~50m rebates to the clothing industiy through the Duty Credit Certificate Scheme

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Technology and Human Resources for Industry Programme supported 292 projects, 208 enterprises, and 2125 students

Support Programme for Industrial Innovation supported 50 projects and 40 small enterprises

· Four sector-specific technology incubators were supported, and 352 small enterprises were supported through the Godisa technology incubators

· Critical skills studies were undertaken in four sectors

· Preparatory work on centres of excellence has been completed

· 100 enterprises have been assisted through the Workplace Challenge programme

· SABS issued 285 new technical standards and revised 377 standards Study on technology trends was completed

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Trade administration:

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Convened an international conlerence on competitiveness

· Work has been done to scope the potential ofnewgrowth sectors including value-added services, paper and pulp, and aerospace

· Research was undertaken and negotiations held with the private sector on import parity pricing

· Competitiveness Fund supported 126 enterprises

· Detailed research has been undertaken in the priority sectors

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· Consumer protection policy approved and published

· Phase 2 of the National Consumer Helpline completed

· Consumer credit bill approved by Cabinet and with State Law Advisor

· Debt counseling project has been implemented

· Corporate Law Reform discussion paper published and consultations undertaken including with Nedlac

· Establishment of the National Liquor Authority

· National Gambling Act regulations published

· 392 consumer cases finalised with an improvement in the average turnaround time from 168 to 61 days

· 10 company investigations; 30 intellectual property investigations completed; 172 Usury Act investigations completed

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Competition:

- Competition Commission received 263 merger notifications and 86 complaints; six investigations were initiated including investigations into car prices as well as estate agents fees and commissions

- 75 cases heard by the Competition Tribunal

Mi~~~roFinan9eReulatorv Council:

- conducted more than 400 investigations into unregistered micro lenders leading to 220 successfiil prosecutions

- Held more than 250 consumer education workshops

- Obtained more than ~,5m in reflinds and adjustments to the balances of lenders

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· Comprehensive training and development programme for staff is underway

· An Agency Management Unit has been established

· A monitoring and evaluation system has been developed

· Completed the move to the campus bringing the majority of the agencies together

· Completed initial investigation into a retail option for the dti

· Reached 33m economic citizens through various advertising campaigns

Handled more than 680 000 queries through the customer contact centre

Interacted with almost 400 000 economic citizens at exhibitions

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· the dti s mission and vision are ali2ned with government's broader economic policy goals

· the dti's strategic objectives are ali~ned 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 almost complete

Significant improvements in strate~ic planning and the involvement of agencies in strategic planning has led to improved spending on the right things

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· Flagship Project on Access to Finance

· Implement the Integrated Small Enterprise Strategy

· Implement the cooperatives development strategy

· SEDA will roll-out provincial offices

· Phase two of the Apex Fund

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· flagship Project - Implement a women's economic empowerment strategy

Complete a national audit on the economic status of women

Continue to implement and monitor the bbBEE strategy

Accredit BEE ratings agencies

Advocacy and education campaign

Participate in charter processes

Develop BEE guidelines for the manufacturing and retail

sectors

R4OOm for the capitalisation of the National Empowerment

Fund

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· Flagship Project: Implement a targeted investment promotion strategy

· Flagship Project: Review and impact assessment of competition poliCy

· Nine investment seminars

· Facilitate 36 investment projects in priority sectors

· Present the results of the Investment Climate Survey

· Continue to manage the industrial participation project

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· Implement a national export strategy

· Complete a tariff simplification exercise

e Manage the Permanent Trade Forum

· Participate in the preparations for the WTO Ministerial in Singapore

· Continue bilateral trade negotiations with US and Efia

· Technical missions to India and China

· 22 trade missions

· Complete World Bank study on trade administration and facilitation

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· Advocacy and policy coordination with other government departments

R80,980m for Support Programme for Industrial Innovation

· R143,lOOm for Teclmology and Human Resources for Industry Programme

· Complete a review of the Workplace Challenge programme

· Ri 81 ,077m for critical infrastructure projects Revamping of the Industrial Development Zones programme

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Flagship Project - Import parity pricing

Flagship Project - Implement Customised Sector

Programmes in priority sectors

e Reformulation of the Duty Credit Certificate Scheme

· Flagship Project - Consumer Protection legislation

· Establish new consumer credit regulator

· Continue corporate law reform process

· Commence intellectual property law reform process

· Impact assessments: gambling, consumer credit, liquor

· Policy on internet gambling

Complete 80 consumer investigations and resolve 3000 consumer compiaints

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· Flagship Project - African economic development strategy

· Finalise intra-African trade strategy

· Mid-term review of the SADC trade protocol Trade negotiations with Kenya, Egypt and Nigeria

Five bilateral investment protection and economic cooperation agreements

Continue to participate in Nepad processes including the processes in respect of the African Peer Review Mechanism

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· Ri Om for Community Public Private Partnership Programme

· Jmplementation of the Cooperatives Development strategy

· Implementation of the Women's Economic Empowerment strategy

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~i'iyiii~IiL ~1 iuiCLii~iiig 111~~11di11sms br oroaabased black economic empowerment

· R lOOm for the first phase of the Apex Fund

· Flagship Project - An e-commerce system for all dti transactions including incentives

· Strategic alignment of the dti Group (Cotii)

· Monitoring and evaluation system to be extended to all of the Cotii agencies

· Piloting of a dti retail outlet

· Work with the Department of Foreign Affairs to improve the flinctioning of the foreign economic offices

· Continue implementing an extensive people development strategy for staff

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2,500,000

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1999~2000 2000-2001 2001-2002 2002-2003 2003-2004

I Budget 2,323,596 2,236,455 2,218,476 2,494,852 2,519,926

EA'pendture 1,808,631 2,151,231 1,947,976 2,346,187 2,495,818

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· From 2001/02 to 2004/5, the average annual increase in the budget of thc dti is 13,7% (excluding PBMR and NEF capitalisation)

· From 2005/6 to 2007/8 the average annual increase of 1,1%

· Except for the capitalisation of the NEF, thc dti has not received any funding for new programmes

~ ~ ~ ~ ~iti(1~A ~ elsewhere on the budget including Apex Fund, the Film incentive and BPO incentive

· Currently, four strategic areas receive an above

average share of the budget:

- Investment 22.4%

- Market access and exports 14.5%

- Building a competitive economy 13.6%

- BEE (mainly the NEF) 14.2%

· Currently, two strategic areas receive a very small

share of the budget

- Access to redress 3.8%

- African economic development 0.6%

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· Largest share of the budget goes to the dti's agencies -

41.1%

· Private sector enterprises receive the second largest share of the budget - 31 %

· Personnel costs amount to 8.7% of the budget (a drop from 9.9% in 2004/5)

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- 73% of procurement is from small and medium-sized enterprises

- 58% from black-owned enterprises

- 37% from women-owned enterprises

· Apex Fund

· Community Public Private Partnership Programme

· BPO incentive

· Film incentive

· National Empowerment Fund

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African economic development

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· 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

· New mandates and expanded activities flinded from savings and efficiencies

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· 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 since 2000 is 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 nine to ten 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

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