| Government's Programme of Action - 2004 | |
| Economic Cluster | ||
| Actions | Departments | Timeframe | Progress - Updated 15 Feb 2005 | ||
|---|---|---|---|---|---|
FIRST ECONOMY | |||||
1.00 | BROAD ECONOMIC STANCE | ||||
| 1.01 | No significant changes to macroeconomic management foreseen. | NT | Ongoing | Continuing to use inflation target as an anchor to stabilise the economy | |
| 1.02 | Inflation targeting to remain in place | NT | Ongoing | The National Treasury and the Reserve Bank have an inflation targeting technical committee that continually reviews options for controlling inflation and monitors inflation developments in the economy | |
| 1.03 | 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 | The committee meets regularly and reports back to the principals | |
| 1.04 | Shift to microeconomic reforms | dti, NT, Presidency | Ongoing | The Micro Economic Reform Strategy has been reviewed and strengthened. | |
2.00 | INCREASED LEVELS OF INVESTMENT IN PUBLIC INFRASTRUCTURE | ||||
| 2.01 | Develop sector-specific infrastructure investment plans | DPE, DME, dti, NT, DOT | Nov-04 | Energy and Transport sector investment projects are being prioritised. Specific announcements will be made such as those in the Durban and Cape Town ports | |
| 2.02 | The development of financing strategies to implement plans including Public Private Partnerships and similar mechanism | DPE, DME, dti, NT, DOT | Sep-04 | Continuing to develop financing options tailored to each division/subsidiary of the SOE for Energy (Eskom) and Transport (Transnet). Announcements will coincide with specific capital market activity within the investment framework announced in Oct-04 | |
| 2.03 | Implementation of an appropriate regulatory framework to stimulate new State Owned Enterprise investment in infrastructure | DPE, NT, Presidency | Sep-04 | The rollout strategy for the Energy, Transport and Telecommunication sectors is in the finalisation process, and will be announced in due course | |
| 2.04 | Strengthening of sector regulators | DPE, DME, DOC | Continuous | The Status report for the Telecommunications, Energy and Transport input sectors has been completed. Ongoing work on the review of the water sector | |
| 2.05 | Strengthening of Government capacity to oversee the State Owned Enterprises | DPE, NT, Presidency | Continuous | Phase 1 report was submitted to Cabinet during September for noting. Currently stakeholder consultations are taking place, prior to the submission of a Cabinet Memorandum | |
| 2.06 | Finalise CAPEX financing strategy | DPE et al | Sep-04 | An outcome of 2.02, which is still in progress. | |
| 2.07 | Finalise Government-wide review of the State Owned Enterprises performance practices | DPE, NT, DPSA | Sep-04 | Final reports completed. Inter-Ministerial committee to review recommendations | |
| 2.08 | Better utilisation of Public Investment Commission's Isibaya fund | NT, GDC | Nov-04 | A draft strategy has been discussed with the Minister and is being further improved in the light of this consultation | |
| 2.09 | Expedite Port restructuring | DOT, DPE | a.s.a.p | See 3.1.9 | |
2.1 | INCREASE LEVELS OF INVESTMENT IN THE FIRST ECONOMY | ||||
| 2.1.1 | Finalise discussion with social partners to invest 5% of institutional funds | NT, Presidency, DoL, dti | Dec-04 | Discussions have been finalised with social partners on the principles that will guide the implementation. The financial sector process will further guide the implementation process | |
| 2.1.2 | Existing fora of consultation, including working groups, should be strengthened in the implementation of Growth and Development Summit agreements | Presidency, DoL, dti, NT | Ongoing | Updated GDS implementation report presented at Joint Working Group meeting in Dec-04, and the Presidency convened technical discussions with labour and business on growth challenges. | |
| 2.1.3 | Announce detailed and enhanced investment plans of State Owned Enterprises, including Development Finance Institutions, to Cabinet | DP, NT | Sep-04 | Outcome of 2.02-still in progress. | |
| 2.1.4 | 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 | Export and investment promotion missions for: agro-processing, automotive, capital equipment, chemicals, metals and mining and cultural industries in Europe, Asia, Africa and North America - Customized Sector Programmes being finalised | ||
| 2.1.5 | Finalise Enterprise Development Bill to provide a framework for the development, adjudication and streamlined extension of incentives to all enterprises in a transparent manner | dti | Research report and the international benchmarking exercise completed in Nov-04. Draft Enterprise Development Bill finalised | ||
3.00 | LOWER COST STRUCTURE IN THE ECONOMY AND ENHANCED LEVELS OF COMPETITION | ||||
| 3.01 | Submit to Cabinet a comprehensive logistical strategy | DOT, DPE, dti | Nov-04 | Cabinet memo prepared. Draft Green Paper to be presented to Cabinet early in 2005. | |
| 3.02 | Submit to Cabinet a discussion paper on administered prices, policy to be made public in October | NT | Jun-04; Oct-04 | Second report submitted to Cabinet in Sep-04, and certain steps approved, including establishment of an administered prices index by StatsSA, to be released early in 2005. | |
| 3.03 | Investigate the impact of import parity pricing and general pricing on the development of downstream sectors, with a focus on labour intensive sectors | dti | Nov-04 | A strategy for dealing with import parity pricing in the South African economy is being developed and will be presented to Cabinet | |
| 3.04 | Table progress report on Second National Operator in Cabinet in next three months and finalise urgently | DoC | Aug-04 a.s.a.p | Potential investors for the majority 26% SNO stake short-listed. Stakeholders discussing and close to signing off on shareholders agreements and business plan with DOC as facilitator. Initial discussions with ICASA on the licensing process. | |
| 3.05 | Accelerate the finalisation of the National Ports Authority Bill | DOT, DPE | a.s.a.p | The NPA Bill went through the Portfolio Committee in Nov-04. | |
| 3.06 | Finalise institutional framework to manage the national water infrastructure within six months | DWAF | Nov-04 | Cabinet approved the National Water Resource Strategy in Sep-04. The Water Agency to be established. | |
3.1 | CONTINUE TO WORK TO REDUCE THE COST OF DOING BUSINESS IN OUR COUNTRY | ||||
| 3.1.1 | First ship dock at Coega/Ngqura | dti | Sep-05 | Land acquisition programme finalised, infrastructure development on track, MoUs with key partners signed, and ISO 14001 certified. | |
| 3.1.2 | Spoornet increase freight capacity by 30% over 5 years | DOT, DPE | 2009 | 15-year locomotive plan finalised, and infrastructure capital projects have been presented. Financial parameters and PPP options still being developed. | |
| 3.1.3 | 220 million investment from the Rail Commuter Corporation for commuter transport and safety | DOT | Dec-04 | Due diligence to be carried out to determine the implications of consolidating passenger and commuter rail | |
| 3.1.4 | Registering King Shaka International Airport as Public Private Partnerships | NT, DOT | a.s.a.p | King Shaka International Airport has been registered with National Treasury's PPP unit. The feasibility of the project being bid to the private sector for the rest of the activities around the airport has largely met the requirements of the PPP unit. | |
| 3.1.5 | First Regional Electricity Distributor to operate | DME | Jun-05 | Draft business case tabled at the board meeting in Jan-05. Eskom completed ring-fencing exercise. Risk mitigation strategy which will include interim Board and seconded MD is being developed | |
| 3.1.6 | All Regional Electricity Distributors operational | DME | Jan-07 | RED boundaries finalized and financial modeling of REDs completed Stakeholder interactions are taking place at various levels. Cooperative Agreements with Municipalities that distributes approximately 70% of electricity have been signed | |
| 3.1.7 | A tender for the provisioning of new generating capacity to provide for the growing energy needs from 2008, will be issued publicly in December and should be awarded during the first half of 2005 | DME | Dec-04; Jun-05 | Tendering process was launched with the Expression of Interest in Dec-04. The tendering timetable is on the Department of Minerals and Energy website | |
| 3.1.8 | Implement plans announced in the past concerning national transport logistic system | DOT | a.s.a.p | See 3.05. | |
| 3.1.9 | Work with parliament to expedite the process of the restructuring of ports to bring in new investment and lower the cost of moving imports and exports | DOT | a.s.a.p | Consultation on Port Economic Regulator initiated. Implementation Plan completed. Awaiting outcome of NPA Bill | |
4.00 | MANUFACTURING AND SERVICES SECTORS THAT ARE GROWING AND CREATING JOBS, INCREASING VALUE-ADD, MEETING BASIC NEEDS, COMPETING GLOBALLY | ||||
| 4.01 | Enterprise Development Bill to extend enterprise support to new sectors to be submitted to Cabinet within next four months | dti | Sep-04 | See 2.1.5 | |
| 4.02 | Accelerate the development and implementation of support strategies for priority sectors | dti, NT, DEAT | The Tourism Global Competitiveness Project outcomes were presented to Cabinet in October. Domestic tourism growth strategy launched at Indaba 2004 and the marketing campaign rolled out in Jun-04, generating R18m revenue from R6m investment | ||
4.1 | DO MORE TO IMPROVE OUR EXPORT PERFORMANCE, FOCUSING ON SERVICES AND MANUFACTURED GOODS | ||||
| 4.1.1 | Engage the export sectors to assist them to take full advantage of the possibilities we have to expand access to the EU and the US markets, as a result, respectively, of the SA-EU Trade and Development Agreement and AGOA | dti, DOA, DME | Ongoing | National export strategy being developed and will be ready by Apr-05. Market access information strategy for EU and USA to be finalised in first quarter of 2005/6 financial year | |
| 4.1.2 | Pay the necessary attention to the earliest possible conclusion of trade agreements with Mercosur, EFTA, the US, India and China | dti, DFA, Presidency | SACU/Mercosur Preferential agreement signed in Brazil in Dec-04; EFTA negotiations may be concluded by Mar-05; USA/SACU not yet converging on non-trade issues; negotiations with China planned for early 2005 and with India in later 2005. | ||
5.00 | MORE ENTERPRISES ESPECIALLY BLACK-AND WOMEN-OWNED AND MANAGED | ||||
| 5.01 | Finalise charters in strategic sectors and review sector BEE strategies | dti, NT, DOC, DME | Ongoing | Negotiations have been finalised, but not yet gazetted as envisaged in the Act, for charters in : Mining, Financial services, Petroleum. Codes of Good Practice published for public comment in Dec-04. Tourism BEE scorecards completed in Dec- 04 | |
| 5.02 | Establish BEE Advisory Council to advise on implementation of BEE strategy | dti, DEAT | a.s.a.p | The composition of the Council will be finalised during 2005 | |
| 5.03 | National Empowerment Fund to announce/introduce new products financial and non-financial | dti | Aug-04 | Products launched in May-04. | |
| 5.04 | Re-establish the Agricultural Credit Scheme(ACS) in DOA to provide capital for this sector, leaving the Land Bank to deal with established commercial sector. R1 billion is immediately available to start the ACS | DOA | Dec-04 | Agriculture Credit Scheme (ACS) memo approved by Cabinet as submitted and the business plan approved | |
| 5.05 | Accelerate sectoral initiatives including the comprehensive farmer support programmes and tourism enterprise programme | DOA, DEAT | Ongoing | TEF MTEF funding of R37m by DEAT w.e.f Jul-04, including a tourism entrepreneurial training programme. CASP budget o R200m for 2004-05 transferred to provinces for on-and-off farm infrastructure projects | |
| 5.06 | Project team compromised of DoA, DLA and DPLG to be established to coordinate land and agrarian reform | DOA, DLA, DPLG | Ongoing | Project team established to coordinate land and agrarian reform. | |
| 5.07 | Bill on cooperatives and implement cooperatives strategy | dti, DOA | Dec-04 | Bill approved by Cabinet in Nov 04 for submission to Parliament early in 2005, awaiting certification from state law advisors. | |
| 5.08 | Launch massive communication campaign to inform economic citizens in the second economy about opportunities and available support | GCIS, Economic Cluster | Ongoing | See 9.12 | |
5.1 | PARTICULAR ATTENTION TO FURTHER GROWTH OF THE SMALL AND MEDIUM BUSINESS SECTOR | ||||
| 5.1.1 | Report to Cabinet on SMME support, incl. location of support, operational jurisdiction of Apex, better reporting requirements for companies, possibilities of a business register, a different tax regime aimed at Second Economy entrepreneurial capabilities | dti | Jun-04 | Stakeholder briefing was held in Dec-04, prior to operationalisation in 2005. SEDA CEO appointed to unite NAMAC and Ntsika. Several initiatives on SMME procurement and tourism support underway. | |
| 5.1.2 | Project team comprised of dti, DME, DPE, NT and DPLG to be established to coordinate support to small and micro enterprises | dti, DME, DPE, NT, DPLG | Ongoing | The team is established and work is underway | |
| 5.1.3 | Review regulatory framework of SMME, to facilitate its growth and development. | dti | Sep-05 | Initial review completed in Aug-04. Further work to quantify SMME burden of VAT, income tax and Regional Services Council levy. Assessment done into the regulatory framework i.r.o tourism SMMEs, including available funding and support instruments. | |
| 5.1.4 | Merge Ntsika and the National Manufacturing Advisory Centres | dti | Dec-04 | Ntsika and NAMAC merged in De-4 to form Small Enterprise Development Agency (SEDA) | |
| 5.1.5 | Work with the financial institutions to implement provisions of the Financial Charter as it relates to SMME | dti, NT | a.s.a.p | Progress in appointment of Council and work proceeding on credit schemes and access strategy | |
| 5.1.6 | Submit to parliament a bill on Cooperatives before the end of the present calendar year | dti | Dec-04 | See 5.07 | |
6.00 | A LABOUR FORCE WITH THE SKILLS NEEDED BY THE ECONOMY | ||||
| 6.01 | Establishment of Skills Development Agency would reduce administrative burden on employers | DoL | Ongoing | A study to assist SMME’s to recruit and train learners will inform the regulations, guidelines and national rollout of the Employment and Skills Development Agencies to be established throughout the country during 2006. | |
| 6.02 | Labour and Education to consult to market more aggressively learnership programme to recruit more school leavers and graduates | DoL, DoE | Ongoing | A coordination project committee between DOE and DOL has already developed a framework with more focus on scarce skills, and are involving SETAs and FET College in the process | |
| 6.03 | Finalise Immigration regulations to recruit targeted scarce skills in the short term | DHA, DoL, dti | Aug-04 | Immigration Amendment Act has passed through both houses of Parliament and given Presidential authorisation in October 04. | |
| 6.04 | Identify and remove barriers that prevent employers from taking on more learners | DoL | Target: 80 000 learnerships by Mar-05. 85 000 achieved Dec-04 | ||
| 6.05 | Adequate funding for technical colleges and align courses with economy needs | DoL, DoE | Apr-05 | SETA’s FET and HET Institutions have been involved in joint projects relevant to economic sectors. The adjusted NSDF 200-2010 provides a coordination and funding framework that SETAs are to follow to fund these institutions | |
6.1 | SPEED UP THE PROCESS OF SKILLS DEVELOPMENT, FOCUSING ON SHORTFALLS THAT WE HAVE ALREADY IDENTIFIED | ||||
| 6.1.1 | Engage all SETAs to increase uptake of learners beyond the 64000 since Growth and Development Summit and improve the focus on skills in short supply. | DoL | Dec-04 | Target of 80 000 learners by Mar-05 was exceeded during Oct 2004 and a joint project is underway with DOE on increased focus on scarce skills. The adjusted NSDF 2005-2010, provides a systematic way in which SETAs are to plan and report in this area | |
| 6.1.2 | Establish register of all graduates | DoE, NYC | Dec-04 | A register for students who graduated in 2003 is being finalised | |
| 6.1.3 | Ongoing review of educational curriculum relevance to the needs of the economy and cultivating and entrepreneurial culture | DoL, DoE, dti, NT, Presidency | Ongoing | Clusters of SETAs are participating in various committees established by DoE to improve the relevance of FET curriculum to the needs of the economy | |
| 6.1.4 | Departmental representation on SETA's be kept at senior staff level | DoL | Ongoing | DoL SETA re-establishment review process will lead to new certificate and adjusted SETA landscape during 2005 | |
| 6.1.5 | Cluster must consider the issue of migrant labour and submit a report on the way forward | Economic cluster | Ongoing | A Macro-Social report was submitted to the Jan-05 Cabinet Lekgotla. | |
7.00 | INCREASED R&D SPENDING AND THE DIFFUSION OF NEW TECHNOLOGIES | ||||
| 7.01 | Detailed roadmap on system governance back to Cabinet in June 2004 | DST | Jun-04 | Roadmap endorsed by Cabinet in Oct-04. Implementation to follow. | |
| 7.02 | 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 | The development of National Biodiversity Strategy and Action Plan, National Action Programme to Combat Desertification and development of Bio-regions is underway. Six new centres of scientific excellence established. | |
| 7.03 | Development of our region as a global hub for astronomy and space science and technology | DST | Ongoing | Southern African Large Telescope (SALT) to be completed Mar-05. Square Kilometre Array bid submitted. Concurrency bid for NASA Deep Space Network being finalised | |
| 7.04 | Continue to work on the diffusion of new technologies across the economy | DST | Ongoing | DST submited a policy document to cabinet in Nov-04 | |
8.00 | MORE EQUITABLE GEOGRAPHIC SPREAD OF ECONOMIC ACTIVITY | ||||
| 8.01 | Develop a comprehensive economic map of South Africa | dti, Presidency | Ongoing | Stats SA finalising Spatial Development Indicators | |
| 8.02 | Develop a strategy to promote more equitable geographic spread of economic activity, and develop appropriate support mechanisms to implement the strategy | dti, Presidency, DPLG, NT | Ongoing | See 8.01 | |
| 8.03 | Resolve political blockages on some Spatial Development Initiatives | dti, DEAT | Ongoing | Ongoing discussions with counterparts in the SADC region to conclude process | |
| 8.04 | Align Integrated Development Plans (IDPs), provincial and national strategies around priority spatial interventions, National Spatial development Perspective | Presidency, DPLG, NT | Dec-04 | Project completed. A cabinet memorandum on interventions needed to drive alignment was submitted to Cabinet in Jan-05. | |
| 8.05 | Develop a logistics corridor strategy | DOT, DTI, DPE | Some Governance and Consultation Structures established. Initial optimisation plan in development process. Certain key projects along corridors commenced | ||
8.1 | CROSS-CUTTING PRIORITIES | ||||
| 8.1.1 | Preparations for 2010 Soccer World Cup | DSR; Presidency, DPW, NT, DOT, DEAT | Ongoing | Initial discussion held at the joint meeting of Economic and Social Clusters in Sep-04. | |
SECOND ECONOMY | |||||
9.00 | DEVELOP AN INTEGRATED CLUSTER STRATEGY TO INTERVENE IN THE SECOND ECONOMY INCORPORATING CURRENTLY UNCOORDINATED EXISTING INITIATIVES INCLUDING THE FOLLOWING | ||||
| 9.01 | Launch Expanded Public Works Programme in all provinces concentrating on the 21 urban and rural nodes | DPW, DPLG, DSD, DoH, DEAT | Sep-04 | EPWP launched in all provinces by September. 12 235 jobs in environment and culture sectors in 1st quarter, and extensive training. Progress by 2nd quarter (not final): R1.5 billion spent ; 1 459 EPWP projects; 76 000 job opportunities. | |
| 9.02 | Finish Financing Protocol for the Urban Renewal and Rural Development Nodes | DPLG, NT, local & prov. Govt | Jul-04 | Jan-05 Cabinet Lekgotla approved recommendations regarding departments' and SOEs future contributions in the nodes. These are being developed for medium term integration into Cluster strategies and funding commitments as part of the Financing Protocol | |
| 9.03 | Operationalise APEX Fund | dti, Presidency | Dec-04 | Ministerial Briefing of stakeholders took place in Dec 04. Full launch will be considered after the first phase of implementation. | |
| 9.04 | Implement Land Reform for Agricultural Development process and Comprehensive Agricultural Support Programme | DOA, DLA | Ongoing | See 5.05. Development of sub-sector strategies for wine, grain and fruit underway. | |
| 9.05 | Publish AgriBEE for public comment | DOA | Jul-04 | Stakeholder discussions are continuing, the inputs to be consolidated following the Dec-04 closing date. | |
| 9.06 | Strategy for financial and non-financial support to co-operative enterprises | dti | By December 2004 | Incentive guidelines are ready, awaiting departmental approval. Non financial technical support to be piloted in the 2nd quarter of 2005. | |
| 9.07 | Expand Adult Basic Education and Training and align with Expanded Public Works Programme | DoE, DPW, DoL | a.s.a.p | Expanded Public Work Programme (EPWP) alignment plan finalised during December | |
| 9.08 | Community Development Workers deployed in 21 urban and rural nodes | DPSA, DPLG, SAMDI | By December 2004 | Relationship strengthening with stakeholders especially ward councillors in order to accept the services of CDWs. | |
| 9.09 | ICT introduced in nodes for governance and development purposes | DPSA | a.s.a.p | Progress continuing | |
| 9.10 | Implementation of Municipal Infrastructure Grant | DPLG, NT | Ongoing | 71 project management units established in municipalities. Of the total amount of grants allocated, 80% was disbursed by mid Feb-05 | |
| 9.11 | Implementation of broad based BEE strategy | dti, DPLG, NT | a.s.a.p | See 5.02 | |
| 9.12 | Launch mass communication campaign to inform economic citizens in the second economy about opportunities and available support | GCIS, Economic Cluster | Ongoing | Started in Aug-04 and officially launched ion October. 92 workshop days in all provinces, and many additional workshops by NGOs. 120 000 booklets distributed. TV serialisation under discussion with SABC | |
| 9.13 | Develop strategy to promote equitable geographic spread of economic activity | dti, DPLG, Presidency | Ongoing | See 8.03 | |
| 9.14 | Continue Spatial Development Initiatives | dti | Ongoing | See 8.03 | |
| 9.15 | National and Household food security | DOA, DSD, DEAT | Ongoing | Cotton and livestock strategies completed; wine, grain and fruit under way. | |
| 9.16 | Job opportunities along the entire agricultural value chain | DOA | Ongoing | See 9.15 | |
| 9.17 | Increased income from agricultural activities | DOA | See 5.04 | ||
| 9.18 | Increase support to agriculture in communal areas and other small scale agriculture, drawing on resources of ACS | DOA | Ongoing | See 5.04 | |
| 9.19 | Approval of Communal Land Rights Bill will improve the possibilities for better economic utilisation of communal land | DLA, DOA | Ongoing | Implementation strategy for Communal Land Rights Act being finalised. | |
| 9.20 | 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 | LFS Oct-04 report; Socio-Economic Survey of the Second Economy to be done in 2005 and at 3 year intervals; Consumer survey in 2006; development index being prepared for discussion in Oct-04; census 2006 replacement plan finalised. | |
| Last updated: 2005 March 7 | |||||