Government’s Programme of Action - 2005
Economic Cluster
Updated 01 Feb 2006
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ActionsDepartmentsTimeFrameProgress update - 04 Apr 2006

1

BROAD ECONOMIC STANCE

   
1.1No significant changes to macroeconomic management foreseenNTOngoingBroad economic stance is under continuous management. Regular reporting by the National Treasury and the South African Reserve Bank
1.2Inflation targeting to remain in placeNTOngoingSee 1.1
1.3The Executive should work with the monetary authorities to ensure that the objective of a stable and competitive exchange rate and appropriate inflation range is attainedNTOngoingSee 1.1
1.4Shift to microeconomic reformsdti, NT, PresidencyOngoing 
1.4.1Develop a business plan to effectively and efficiently implement MERS. Include economic cluster activities contained in the Programme of Action in the MERS reporting frameworkdti, NT, Presidency A project to ensure the alignment of the MTSF. MERS, and the POA was developed by the Cluster in Nov-05

2

INCREASED LEVELS OF INVESTMENT IN PUBLIC INFRASTRUCTURE

   
2.1Implement sector-specific infrastructure investment plans within the framework announced in Nov-04DPE, DME, dti, NT, DOT, DWAFOngoingImplementation is taking place at SOE level
2.1.1Finalise Investment plan for public passenger transportDPE, NT, DOT Cabinet approved the Interim National Passenger Rail Plan in Dec-05. A second regional and operational rail plan will be prepared in consultation with stakeholders
2.1.2Implement plans to strengthen the balance sheet of Transnet and implement investment action plansDOT, DPE Measures to strengthen the Transnet Balance Sheet have been announced. The implementation of investment plans is underway
2.1.3Investment in five top freight border postsDOT Roadmap on all 55 border posts on infrastructure requirements done. In process of engaging national public works department on border infrastructure investments
2.1.4Investment in air freight infrastructureDOT National Freight Logistic Strategy has been approved by Cabinet and further process is being outlined
2.1.5Spoornet increase freight capacity by 30% over 5 yearsDOT, DPE2009The Minister of Transport launched the implementation process for the revival of Belmont-Douglas rail line in Oct-05
2.1.6Implement strategy on provision and management of water resourcesDWAFOngoingCabinet approved the establishment of the National Water Resource Infrastructure Agency by Apr-08. Preparations for establishment are ongoing
2.2Implementation of financing strategies and plans including Public Private Partnerships and similar mechanismsDPE, DME, dti, NT, DOT, DPLG, DWAFOngoingInvestment plans announced. SOEs will continue the implementation of infrastructure investment plans
2.2.1Public 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 PPPsNT Fully established and operational PPP Unit in National Treasury
2.3Implementation of an appropriate regulatory framework to stimulate new State Owned Enterprise investment in infrastructureDPE, NT, PresidencyMay-05The final report completed and circulated to stakeholder departments
2.3.1NER to urgently establish electricity tariffs that facilitate investmentDME Timetable for the finalisation of the tariff agreement completed. The three-year pricing document to be approved by the NER
2.4Strengthening of Government capacity to oversee the State Owned EnterprisesDPE, NT, DPSAContinuousFramework to be presented to Cabinet
2.4.1DPE to submit shareholder management model, performance practices among State Owned Enterprises and remuneration of executive and non-executive directors to CabinetDPE See 2.4
2.4.2Finalise Government-wide review of the State Owned Enterprises performance practicesDPE, NT, DPSAMay-05See 2.4
2.5Better utilization of Public Investment Commission's Isabaya fundNT, GDCMay-05Isibaya Fund operational

3

INCREASE LEVELS OF INVESTMENT IN THE FIRST ECONOMY

   
3.1Existing fora of consultation, including working groups, should be strengthened in the implementation of Growth and Development Summit agreementsPresidency, DoL, dti, NTOngoingThe Joint Working Group regularly reviews implementation of the GDS agreements. Working groups and other fora have been engaged in briefings and consultation concerning Asgi-SA
3.1.1Consideration of Nedlac as a vehicle for social partnerships, the impact not only the first economy but also the second economy. Review of the appropriateness and adequacy of Nedlac as an institution that impacts both on economic and social policy.DoL2005Final review documents are being completed
3.2Alignment of marketing agencies and departmentsdti, NT, GCIS, DFA, DEAT  
3.2.1Road 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 IDZdti, NTOngoingCustomised Sector Development programmes supporting priority sector development including increased investments into sectors approved within the Dti. An integrated branding strategy being finalised and will promote focused investment promotion
3.2.2Investment promotion must shift focus from general value propositions towards determining the actual costs of doing business and benchmarking these against competitor countriesdti, ME, DPEMar-06 Research on international comparisons completed. Publication with Business Management cost to be produced in early 2006. Government working on the "SA Geared for Growth" publication which incorporates information on the cost of doing business in SA
3.2.3Improve the communication to investment community about what services are offered by Government and its related agenciesdti, DFA, GCIS Improved coordination in government and with the International Marketing Council has been established and new products are being produced and disseminated
3.3More attention needs to be given to additional costs to business imposed by local governmentdti, DPLG, NTSee 7.4.1See 7.4.1
3.4Increase rate of investment by exploiting private direct investment through an integrated approach to the 2010 Soccer World Cupdti, EIE Cluster, DSR A 2010 Enterprise Development plan is being developed in conjunction with IDC and will identify opportunities arising from the World Cup, focusing on small businesses within the services sectors (especially IT, construction and tourism)

4

LOWER COST STRUCTURE IN THE ECONOMY AND ENHANCED LEVELS OF COMPETITION

   
4.1Submit to Cabinet a comprehensive Freight/logistical strategyDOT, DPE, dtiMay-05National Freight Logistics Strategy launched. Second round of consultations on the strategy at all port cities, involving municipalities has started. KZN Freight Logistics finalised
4.1.1Introduce multiple competing operators to rail and portsDOT The National Ports Authority bill was assented by the President and the Department of Transport has started a process to set up the Independent Ports Economic Regulator
4.1.2Separate operations from infrastructure provisions in rail sector and ensure customer-oriented institutional structuresDOT The principle as outlined in the National Freight Logistics Strategy is approved. Rail safety regulator established
4.1.3Transfer of strategic roads to SANRALDOT  A total of 3250 kms of roads of strategic economic importance have been transferred
4.2Cabinet's decisions on administered prices should be implemented including publishing a policy on administered prices, and the establishment of an administered prices index by StatsSANTMay-05StatsSa complied with the deadline regarding administered prices index. Research agenda to be finalised with the Task Team
4.3The issue of import parity pricing should be addresseddtiMar-06Cabinet in Oct-05 received a report on work relating to import parity pricing and agreed to intensify consultations with role-players with a view to completing the first phase of pricing agreement in the first part of 2006
4.4Improve telecommunications infrastructure and regulationDoC, DPE, dti, DPSA  
4.4.1Increase internet subscribers and broadband and ICT usageDoC, dti, DPSA Decision taken on developing an indicator system that will help in measuring SA progress in developing information society
4.4.2Second National Operator to be licensed and OperationalDoCa.s.a.pThe Second National Operator licence was awarded in Dec-05
4.4.3Promulgate the Convergence BillDoC Convergence Bill and ICASA Bill passed by Parliament
4.4.4Facilitate broadband technology for 1st and 2nd economy needsDoC, NT Superhighway discussions are being concluded and various immediate steps have been identified
4.4.5Initiate modernisation of ICT infrastructure through digitisationDoC Digital migration working group established and mandated to assist government on the way forward. SADC countries met and looked at formulation of a common strategy for submission to International Telecommunications Union
4.5Improve port infrastructure and operationsDOT, DPE, dti  
4.5.1Accelerate the finalisation of the National Ports Authority BillDOT, DPEa.s.a.pNational Ports Authority Bill is approved. DoT is acquiring services to draft regulations and choosing and appropriate location for the Independent Ports Regulator
4.5.2First ship dock at Coega/Ngquradti, DPESep-05Land acquisition programme finalised and infrastructure development on track. Memoranda of Understanding with key strategic partners signed and ISO 14001 certification achieved
4.6Strengthening of Sector RegulatorsDoC, Presidency, NT, dti, DEAT, DWAF  
4.6.1Cluster to report on issue of competition in the economy with specific focus on regulated prices, strengthening of the law multiple regulators vs single regulator and price setting by regulatorsDPE, DOT, DME, DOC, DWAFContinuousThe working group looking at lowering the cost to communicate has been appointed. See also 2.3
4.7Enhancing the transport systemDOT, DPE  
4.7.1Review and amend transport public entity legislationDOT, DPE The General Laws Amendment Bill has been considered by Cabinet and is now tabled for consideration by the Transport Portfolio Committee of Parliament
4.7.2Undertake pilot projects for non motorized transportDOT New partnerships with the cycling community, NGOs in accelerating the implementation of Non-motorised transport (NMT) projects established and integrating it into existing transport programmes
4.7.3Implement taxi recap within a reformed bus subsidy systemDOT, dti, NT Vehicle safety requirements published. HRM Strategy for TRP provincial roll out in place. Comments on Model Tender Document for subsidised services recvd. DoT has called for an open tender to provide Taxi recap Scrapping Allowance Agency infrastructure
4.8Regional Electricity Distributor to operate first in 2005, all Regional Electricity Distributors operational by 2006DME, NT, DPLGJun-05, Jan-07RED1 management commenced with setting up day to day operations of the RED. A generic roadmap for the establishment of RED2 has been developed
4.9Award tender for the new IPP power station by June 2005, and ensure the deadline for having a new power station by 2008 is metDME, DPEJun-05Request for qualification (RfQ) evaluation completed and five bidders were shortlisted. The request for proposals (RfP) documentation finalised and to be released to the shortlisted shortly
4.10Simplify system of tax and levy payments and business registration for all businesses.NT, SARS Ongoing review
4.11Continue with regulatory impact assessment research with a view to possibly introducing an RIA tool into law and regulation making procedures-recommendation to Cabinet by December 2005Presidency, NT, dti, DEATDec-05Research complete. RIA report being circulated to all national departments

5

KEY SECTOR DEVELOPMENT STRATEGIES

   
5.1Sector development strategies need focus, stronger government implementation structures and support; strong partnerships and synergies with labour and business; and accelerated development and implementation of support strategies for priority sectorsdti, NT, DEAT, Presidency, DST, DEAT  
5.1.1New Sector Priorities to include: community and social services, wood and paper, appliances, retail and construction.dti, NT, DEATDec-05Research on new sector priorities being commissioned for 2006
5.2Priority Sector: AgricultureDOA, dti, NT, DWAF, DEAT  
5.2.1 The DoA to work with the Independent Development Trust and National Development Agency and DTI to finalize a programme aimed at strengthening farmer's organisations DOA, dti, NT, DWAF, DEAT  Mobilisation and Development of Farmer Organisations Implementation Plan which identifies different types of farmer organisations and intervention tools undergoing Internal consultation
5.2.2Agreement between government and all the identified stakeholders on a revised implementation strategy and action plan for the Agriculture Sector StrategyDOA Discussions held with Farmers’ Unions. Engagement with the Labour Unions to take place in due course
5.2.3More work involving the National Treasury, the ARC, provincial departments of agriculture and local governments is needed to resolve budgetary constraintsDOA, NT The clusters to continue working on marketing infrastructure and mechanisation and another 4x4 to discuss marketing infrastructure and mechanisation done
5.2.4DOA together with dti, National Treasury, DWAF and DEAT to finalise the Integrated Agricultural Development PlanDOA, NT, DWAF, DEAT, dti Draft Integrated Agriculture Development Programme completed. Further engagement to take place within the Economic Cluster to firm the proposals
5.2.5Department of Agriculture will review its existing Memorandum of Agreement with the Provinces to align it with the IGR BillDOA The basic principles of the Memorandum of Understanding (MOU) underpinning the Department’s relationship with provinces are captured in the IGR Act, so there is no need to continue with the MOU
5.3Priority Sector: TourismDEAT, dti, DOT, DPE, DOL, SAPS, GCIS  
5.3.1Increase capacity and competition on key routes through air bilateral agreementsDEAT, DOT, DPE A template indicating airline frequencies from all portfolio markets drawn and research will be conducted to determine the markets needing airline capacity increased. DOT 2010 transport strategy developed. ACSA upgrading CT, Dbn and CT airports in 05/06
5.3.2Tourism and hospitality SETA (THETA) to accelerate skills trainingDEAT, DOL  HIV/AIDS – 5000 x toolkit developed & published. In-house Management Skills – workers – target 413: 625 entered; blacks 310; f 377 & disabled 1; ABET – training workers – target 5000: achieved 267; blacks 146; 104 f & disabled 1
5.3.3Complete competitiveness study and coordinate implementation with transformation strategyDEAT, DOL The product and infrastructure projects identified during phase2 of GCP presented to Mpumalanga and KZN municipalities
5.3.4Establish Tourism Satellite AccountDEAT, StatsSA System of Tourism Statistics document on definitions for units of measures developed and workshop to discuss it held in Aug-05. Developing a tourism product database to be used to source samples for the surveys to be done for the TSA
5.3.5Boost policing in key tourism areas, and address perception issues in international marketing campaignSAPS, DEAT, GCISSee JCPS 4.3.1See JCPS 4.3.1
5.4Priority Sectors: Cultural IndustriesDAC, DPLG, dti  
5.4.1Nomination / Appointment of reliable and competent service providersDACAug-05 Intensive interaction with all stakeholders on Music, Crafts & Publishing. Private & public entities engagement in advanced stage. Copyright and IKS for Heritage sites in progress
5.4.2Clear co-ordination between National, Provincial and Municipalities (District & Local) Alignment of Cultural Industries implementation with LED (Local Economic Development) programmes in Provinces and MunicipalitiesDAC, DPLG, dtiJan-06Refer to 5.4.1
5.4.3Audit of needs from Municipalities on related funded projects. Cultural Industries Mapping: assessing/quantifying contribution of Cultural Industries in the economyDACJan-06Refer to 5.4.1
5.4.4Improved networking of projects and sharing of available resourcesDAC Refer to 5.4.1
5.4.5Creation of cultural industries inter departmental body inclusive of all spheres of governmentDACDec-05Refer to 5.4.1
5.4.6Establishment of National representative bodiesDACDec-05Refer to 5.4.1
5.5Priority Sectors: Information and Communication TechnologyDoC, DOL,, DOE, DoH, dti  
5.5.1Increase ICT learnership programmeDoC, DoL Services SETA in the process of assessing existing learnership programme, to determine their responsiveness to the ICT Sector skills requirements
5.5.2Support the implementation of the priority areas of e-education, health, e-government and SMMEsDoC, DoH, DoE, dti  E-education – preparations for the NEPAD e-schools project launch are underway. SMMEs – finalising Articles of Association with ALCATEL to rollout Internet Café model for the youth. Pilot project to be in Tembisa
5.5.3Operationalise the Advanced African Institute for ICT in 2005DoC, DST, DoE, DoL, DPSA The governance organs of the institute are fully operational
5.5.4Establishment of National Research Network for R&DDoC, DST Incorporated in Convergence Bill and taken through to Parliament
5.5.5Finalise decisions on government holdings in ICT SOEsDoC, DPE The terms of reference to evaluate the status of the SOEs completed. Consultation on the results of the divestiture strategy with DPE are ongoing
5.6Priority Sector: Mining and MetalsDME, dti , DOT, DOL,NT, DST  
5.6.1Intensification of negotiations with key private sector actors to address import parity pricing and introduce a developmental pricing model for steel Mar-06. See 4.3See 4.3
5.6.2Introduce an appropriate regulatory instrument to limit the export of scrap metal Oct-05Still being processed
5.6.3Work with Spoornet to reduce logistics constraintsDOT, DPE, dti On going
5.6.4Develop and implement a skills plan for the sector in conjunction with business and labourdti, DME, DOL Ongoing
5.6.5The Precious Metals and Diamond General Amendment Bill to be promulgatedDME The Diamonds Amendment Bill and Precious Metals Bill were approved by Parliament at the end of Oct-05 beginning of Nov-05 respectively
5.6.6Development of relevant incentives for the beneficiation of mineralsDME, dti Meetings with DTI and other stakeholders ongoing
5.7Priority Sectors: Clothing and Textiledti, NT,DFAMar-06 
5.7.1Review tariffs on textiles to provide for lower input costs to the clothing sectordti  This is included as an action programme within the CSP that is being developed and requires further research to assess input costs along the whole textile and clothing value chain. Further research is under way
5.7.2Continue trade negotiations with China to reduce surge of clothing imports into SA. Work with SARS to improve customs inspection to reduce illegal imports of clothingdti, NT, DFA The issue of the surge in imports from China is being dealt with by ITAC and the dti. A high level of progress has been achieved in negotiations
5.7.3Finalise and implement a replacement for duty credit certificate schemedti, NTJun-05 The Minister is considering the introduction of an interim scheme and in the process of finalising the stakeholder consultation on the broader Customised Sector Programme
5.8Priority Sectors: Chemicals and Biotechdti, DST,DOL, DPE, DME, DST  
5.8.1Intensification of negotiations with key private sector actors to address import parity pricing and introduction of a developmental pricing model for chemical feedstocksdti FRIDGE Study on the impact of IPP on the chemicals sector was commissioned in May-05. Strategic measures presented to Cabinet in Sep-05 and agreed. See also 4.3
5.8.2Develop and implement a skills plan for the sector in conjunction with business and labour in this sectordti, DST, DOL  Joint skills study to identify skills needs of the sector completed and agreement reached between the dti and the Chemical SETA on priority skills needs, and these have been integrated in the Chemical SETA Sector Skills Plan
5.8.3Review the tariff structure in the chemicals sectorsdtiMar-06See 5.8.1
5.8.4Restructure the State-owned chemical industry and review government's ownership of parts of the sector and how this can be leveraged to achieve BEE objectives and the development of strategic chemical inputsDPE, dti, NT The tender evaluation process has been concluded. Work to proceed in the first quarter of 2006 following finalization of contractual obligations with the service provider
5.8.5Conclude the chemicals sector summit process underway at Nedlacdti, DOL, DMEOct-05Draft agreement of the proposed chemical sector summit between the social partners (i.e. government, business and labour) has been finalised within the Trade and Industry Chamber of Nedlac, to be finalised with Principals and signed
5.9Priority Sectors: Auto and Transportdti, NT  
5.9.1Intensification with key private sector actors to address import parity pricing and introduction of the developmental pricing model for steeldti Motor Industry Development Council appointed a Task Team to coordinate this project. Cabinet position taken on IPP. Negotiations with Mittal Steel are ongoing and roundtable negotiations with relevant sector representatives will take place
5.9.2Complete the review of the MIDPdti, NTDec-05Research for review process currently being undertaken. Consultation with stakeholders underway
5.10Priority Sectors: Servicesdti, NT, DST, DOL, DEAT and SS Cluster  
5.10.1Accelerate research programme and policy development as agreed by CabinetdtiDec-05New research strategy approved and incorporated into programme of the dti. Long-term research in progress. Services sector strategy completed for submission to Cabinet

6

ENHANCE INTERNATIONAL ECONOMIC RELATIONS

   
6.1Priority focus on Africadti, DOA, DME, DFA, Presidency  
6.1.1Finalise national export strategy and market access information strategy following engagement with export sectors to help take advantage of possibilities to expand access to EU and US markets as a result of the SA-EU Trade & Development Agreement and AGOAdti, DOA, DMEJun-05National Export Strategy narrated. Joint workshop in Gauteng, W Cape and KZN arranged. Market access information and briefing being processed
6.1.2Pay the necessary attention to the earliest possible conclusion of trade agreements with Mercosur, EFTA, the US, India and Chinadti, DFA, Presidency, NTOngoing Negotiations on Mercusor, EFTA, USA, China and India in progress and scope of progress being finalised - conclusions in 2006.
6.1.3 Create cross-border financing mechanisms for cross-border projects dti, NT  Scoping and scanning for opportunities in SADC and African countries' SDIs underway, business opportunities packaged and conference to be held 2006. Consultants to scope in DRC appointed
6.1.4Synergise Nepad actions with other development aid initiatives such as the UK's Commission on Africadti, DFA, NT See 6.1.5
6.1.5Dti to convene and champion a government-wide process to develop an integrated approach to engagement with Africa on economic developmentdti, DFA, DPSA, Presidency A well-consulted and consensus-based draft strategy document was presented to the Cabinet Lekgotla in Jul-05. Comments and inputs are currently being incorporated for the finalisation of the document

7

ENHANCE ECONOMIC INCLUSION

   
7.1Implementation of broad based BEE strategydti, NT, DOC, DME, DOA, DWAF, DEATa.s.a.p Second BBBEE Draft Codes of Good Practice released in Dec-05 for public comment. ICT; Mining; Financial Services; Petroleum & Tourism charters has been finalised awaiting the finalisation of the code of good practice
7.1.1Finalise charters in strategic sectors and review sector BBBEE strategies by ensuring all government departments actively guide charter processesdti, NT, DOC, DME, DOA, DWAF, DEATJun-05See 7.1. Wine; Transport; Construction; Agriculture; Auto and Aerospace; Property; Pharmaceutical and Health charters are at various formulation stages
7.1.2Codes of Good Practice to be finalised and widely communicateddti, NT, DOC, DME, DOA, DWAF, DEAT Phase 2 of codes of good practice issued for public comment in Dec-05
7.1.3Establish BEE Advisory Council to advise on implementation of BBBEE strategy, which informed by the BBBEE ActdtiDuring 2005Consultations on Advisory Council being completed after BEE Codes of Good Practice finalisation
7.2Enhance and accelerate sector support programmesDOA, DEAT  
7.2.1Re-establish the Agricultural Credit Scheme (ACS) to provide capital for emerging farmers, and accelerate the comprehensive farmer support programmesDOAOngoing Scheme roll-out in Sekhukhune, O.R.Tambo & Mkhanyakude Districts implemented as well as Production Loan Scheme; Credit Evaluation Committees; and Saving Mobilisation product. Credit applications available and accessible in Nodal districts
7.2.2Accelerate the tourism enterprise programmeDEATOngoing There is increased awareness regarding the Tourism Enterprise Programme (TEP) in the Provinces, with the resultant willingness to sustain TEP and meeting the BEE procurement targets, as well as increasing provincial contributions to TEP budget
7.3Support programmes for cooperative enterprisesdti, DOA Completed
7.3.1Bill on cooperatives and implement cooperatives strategy to be submitted to Parliamentdti, DOAMay-05See 7.3
7.3.2Set up the cooperatives registration office in Companies and Intellectual Property Registration Officedti See 7.3
7.4Actively coordinated support to small and micro enterprisesdti, DME, DPE, NT, DPLGOngoing 
7.4.1Review regulatory framework of SMME, to facilitate its growth and development, implement recommendations of the regulatory impact review of small enterprises and introduce appropriate exemption of small businessesPresidency, dti, NTSep-05Report submitted to cabinet in Nov-05 and will be discussed early in 2006
7.4.2Expedite operation of SEDA, including necessary amendments to SMME ActdtiOngoingSEDA Operational
7.4.3SEDA to open provincial officesdti The first provincial and district SEDA offices opened in North-West. Seven additional provincial launches are expected to be finalised by the end of the financial year 2005/6
7.4.4Integrate the Community Public Private Partnership into SEDAdti  The Community Public Private Partnership already incorporated into SEDA as one of the business units
7.4.5Work with the financial institutions to implement provisions of the Financial Charter as it relates to SMMENT, dtia.s.a.pOn track- part of Financial Services Charter process
7.4.6Allocate additional resources to enterprise support programmes in the budget over the medium term, especially in the areas of R&D, sector support, access to finance, BEE and small enterprise development (including Co-ops)dti, DST, NT, DOAFeb-06South African Microfinance Apex Fund launched in North-West, Eastern Cape & Limpopo in conjunction with the office of the provincial MEC of Finance and Economic Development. Currently developing set-asides programme
7.4.7Strengthen capacity of dti as the lead department for enterprise developmentdtiOngoingDti is to provide Secretariat for co-ordinating small business interventions across government. Activity incorporated into the departmental programme
7.4.8Set up the Small Business Advisory CouncildtiDec-05Contacts with the Chamber movement being made for representation in the Council
7.4.9Table integrated Small Business Strategy in Cabinet for approvaldtiJul-05 Strategy tabled in Parliament

8

A LABOUR FORCE WITH THE SKILLS NEEDED BY THE ECONOMY

   
8.1Policy framework relating to immigrant labourdti, DHA  
8.1.1A policy framework on issues relating to immigrant labour should be developed and published, allowing flexible immigration in areas of scarce skillsdti, DHAJun-05. See 8.1.2Immigration regulations finalised and published. Draft National Critical Skills List 2005/6 finalised and awaiting approval by National HRD Coordinating Committee before implementation by DHA
8.1.2Finalise Immigration regulations to recruit targeted scarce skills in the short termDHA, DoL, dtiApr-05Activity completed. Consultations are proceeding with stakeholder Departments on Section 19(1) of the Act
8.2Implement the updated NSDS 2005-2010 with an allocated amount of R21.9 billion over 5 yearsDoL, DoE  
8.2.1Establishment of Skills Development Agency would reduce administrative burden on employersDoLOngoing6, 472 learners recruited through ESDLE pilot project. R180m allocated to train additional 4528 learners from Aug-05. Evaluation of ESDLE pilot programme to be completed in Feb-06. Policy framework to be finalised in Feb-06 to roll-out ESDAs from Apr-06
8.2.2Labour and Education to market learnership programme aggressively to recruit more school leavers and graduatesDoL, DoEOngoingNegotiations on 2005/6 learnership targets finalised. DoL maintain databases of potential learners for recruitment in learnerships. Sector skills published and 5,000 learners in learnership are in FET colleges
8.2.3Finalise and announce new SETA structuresDoLMay-0523 SETAs fully operational
8.2.4Improve the effectiveness of the skills development structures in government for the implementation of the Human Resource Development strategyDoL, DoEMay-05 DoL has implemented performance agreement with SETAs and National Skills Fund service providers / projects, Umsobomvu & the National Productivity Institute on target and is able to provide a quarterly consolidated report on implementation
8.2.5Create mechanism to link SETAs with the related sector strategy driversDoL  Draft sector skills plans are being adjusted in accordance with the NSDS 2005-10. Process is underway to secure services of a research partner to undertake research on sector scarce skills and to support various SETA SSP initiatives
8.3Establish alignment between SETA's and public FET and Higher education institutionsDoE, DoL, dti, NT, Presidency  
8.3.1Adequate funding for technical colleges and align courses with economy needsDoL, DoEOngoingDoE/DoL with SETAs and industry have developed 10 new programmes to be offered at FET colleges from 2006/7. Six centres of excellence launched through NRF and post doctoral, Hons and Masters grants awarded through NRF
8.3.2Establish register of all graduatesDoE, NYCMay-05The graduate register was completed in 2004 and is being updated on an annual basis
8.3.3Ongoing review of educational curriculum relevance to the needs of the economy and cultivating and entrepreneurial cultureDoE, DoL, dti, NT, PresidencyOngoing The FET Curriculum has been revised, published and will be implemented from 2006. It is relevant to the needs of the economy. FET Colleges are being re-capitalised based on needs of region/province, ensuring curricula needs meet economy
8.3.4Increase output of universities and technikons in priority sectors e.g. engineering by aligning NSFAS and subsidy funding with scarce skillsDOE NSFAS and subsidy funding is already aligned to scarce skills

9

INCREASED R&D SPENDING AND THE DIFFUSION OF NEW TECHNOLOGIES

   
9.1Increase 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 goalsDSTOngoingModeling study on tax incentives for private sector completed. Project initiation during 2006 on options for improving Patents Office services to private sector investors. DST guideline document for govt departments finalised - 2006 trial run planned.
9.2Development of our region as a global hub for astronomy and space science and technologyDSTOngoingSouthern African Large Telescope (SALT) launched in Nov-05.Project initiation on Karoo Array Telescope (KAT) as 2% component of South Africa’s bid for global investment Square Kilometer Array (SKA) radio telescope in Northern Cape
9.3A recommitment to the 2002 R&D Strategy target of 1% of GDP to be invested in R&D (public and private sectors) by 2008DST, dti Process commencing for 2004/05 R&D Survey to run from Q2/2006. Process commencing for parallel surveys measuring R&D outputs to run from Q2/2006
9.4The existing Human Resource Development programmes of the National Research Foundation, the CSIR and the universities need to be strengthenedDST, DOE Fluorochemicals capacity at NECSA secured. Planning completed for research chairs and funded at a level of R150m for 2007/08. CSIR turnaround strategy commenced

10

MORE EQUITABLE GEOGRAPHIC SPREAD OF ECONOMIC ACTIVITY

   
10.1Develop a comprehensive economic map of South Africa. StatsSA will deliver spatial economic indicators - underlying data and indices - a key requirement is an integrated business register between StatsSA, SARS, dti and DOLStatsSA, dti, PresidencyDec-05A consultant has been appointed to assist with the development of a comprehensive economic map of South Africa
10.2Resolve political blockages on some Spatial Development Initiativesdti, DEATOngoingSee 6.1.3
10.3Implement measures to align IDPs, provincial and national strategies (PGDS's) around priority spatial interventions, National Spatial development Perspective on the basis of Cabinet Memorandum submitted in Jan-05 See G&A 3.01Presidency, DPLG, NTDec-05Review and update of the NSDP completed. PGDS guidelines have been finalised. Assessment of PGDS against guidelines complete
10.4Develop a logistics corridor strategyDOT, DTI, DPEJul-05National Freight Strategy approved by cabinet. To complete National Freight Databank by Jun-06 to enable scenario planning to take place. Establishment of Corridor Teams to develop logistics corridor strategies in process

11

CO-ORDINATED SECOND ECONOMY INTERVENTIONS

   
11.1Extend Expanded Public Works ProgrammeDPW, NT, DPLG, DSD, DoH, DEAT, DWAFOngoingFor 2004/05 year progress, 3483 EPWP projects; 223410 gross and 174845 net job opportunities; and 861990 days of training provided. Expansion to housing commenced and discussions with Telkom are underway. Piloting sanitation programme commenced in Oct-05
11.1.1Introduce steps to increase the numbers of Community Health Workers, having harmonised training standards and increased resources allocated to the programmeDoH, DPW, DSDSee SocialSee SS cluster
11.1.2The Early Childhood Development programme, based on community participation, having ensured a common approach among all three spheres of government - the necessary additional funding will be providedDoESee SocialSee SS cluster
11.2Finish Financing Protocol for the Urban Renewal and Rural Development NodesDPLG, NT, local & prov GovtSee G&ASee G & A Cluster 3.2.8
11.3Start operations of the APEX Finddti, PresidencyMay-05See activity 6.1.3
11.4Implement Land Reform for Agricultural Development process and Comprehensive Agricultural Support ProgrammeDOA, DLAOngoing64,000 farmers benefited from CASP as from end Aug-05
11.5Finalise AgriBEE charterDOASee 7.1.2Establishment of the AgriBEE charter targeted for the second quarter of 2006
11.6Strategy for financial and non-financial support to co-operative enterprisesdtiMay-05Incentive guidelines developed, to be tested and considered for approval. Educational tools designed and technical capacity support tool designed for compliance purpose
11.8Ensure that Community Development Workers are deployed in each local municipalityDPSA, DPLG, SAMDIMar-06National launch of CDW programme took place in Nov-05. 2 900 of the CDW learners have completed their training. The recruitment of 665 is complete, with 190 of these in Block 2 of the learnership. (See G&A 2.3.5)
11.9ICT introduced in nodes for governance and development purposesDPSA, DOC, DPLGa.s.a.pSITA has supported initiatives around MPCC based ICT access on a sustainable basis. SITA and DPSA are conducting a strategic review of SITA and support for local government is under consideration
11.10Implementation of Municipal Infrastructure GrantDPLG, NTOngoing Households benefited from MIG by end Sep-05: Water 410 358; Sanitation 174 811; Roads 322 950; Storm Water 135 404; Solid Waste 24 607; 897 SMMEs utilised by end Sep-05 and 92 BEEs utilised by end Sept-05
11.11Extend mass communication campaign to inform citizens in the second economy about opportunities, including for skills development, and available support and how to access theseGCIS, EIE ClusterOngoing13 Part TV series broadcast from Oct-05 to Jan-06. New government magazine Vuk'uzenzele launched in Oct-05 with economic opportunities focus. Updating of publication on economic opportunities in progress
11.12Develop strategy to promote equitable geographic spread of economic activitydti, DPLG, PresidencySee 10The Regional Industrial Development Strategy draft document developed. Different work streams currently being undertaken and new interventions are being investigated The dti hosted a regional development workshop in Nov-05
11.13Continue Spatial Development InitiativesdtiOngoing. See 10.2Part of the Regional Industrial Development Strategy and a framework of SDI’s is being investigated
11.14Job opportunities along the entire agricultural value chainDOAOngoingA number of commodity strategies have been completed while others are to be completed in the course of the year (refer to 5.2), to address job creation, competitiveness, profitability and sustainability
11.15Increased income from agricultural activitiesDOA See 5.2
11.16Increase support to agriculture in communal areas and other small scale agriculture, drawing on resources of ACSDOA, DWAFOngoing A number of applications received for credit and Production Loan Scheme. Capacity building for Local Finance Institutions available and the Micro Agriculture Finance Scheme Internal Lending Policy
11.17Implementation of Communal Land Rights Bill to improve the possibilities for better economic utilization of communal landDLA, DOAOngoingThe National Implementation Framework is to be signed off. All necessary information has been collected after extensive consultation with stakeholders and interested parties
11.18StatsSA 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 -StatsSABefore 2006 if possibleSee 7.4
11.19Socio-economic survey of communities to be conducted in three-year intervalsStatsSA, DSD2005All Casp pillars are active including MAFISA as financial assistance which opened for direct credit in Aug-05
11.20Support programmes for cooperative enterprisesdtiSee 7.4Cooperative incentive scheme is being piloted on 100 cooperatives that have been identified. Pre-incorporation education for any group that wants to become a cooperative
11.21Re-establish the Agricultural Credit Scheme (ACS) in DOA to provide capital for emerging farmers, and accelerate the comprehensive farmer support programmesDOASee 7.2ACS or MAFISA has been established
     Last updated: 2006 April 4