Government’s Programme of Action - 2006
Economic Cluster
Updated 07 Feb 2007
Index | Next

ActionsDepartmentsTimeFrameProgress update - 07 Feb 2007

1

ENSURING ALIGNED AND SUPPORTIVE MACRO-ECONOMIC APPROACHES

   
1.1 Modeling and Scenario planning for AsgiSANT,Presidency, DPE, DTIJul-06Workshop was held in Oct-06 on integration of modeling initiatives. Growth Development Path is a prioritisation tool for the Cluster plan of action
1.2 Model infrastructure impacts of AsgiSANT, DPE, DTIJul-06NT completed a study on impact of economic infrastructure on economic growth. Findings were presented to July Cabinet Lekgotla
1.3 Cabinet's decisions on administered prices should be implemented including publishing a policy on administered prices, using the administered prices index established by StatsSANT, DTI, Stats SA, DMEJun-06Work is ongoing
1.4 Finalising governments approach to the issue of import parity pricing including intensifying negotiations with key private sector playersDTI, DPEMay-06Competition Policy Review finalised, going through internal DTI processes. The 5% tariff on certain primary metal products removed. Research on IPP practices advanced

2

BUILDING A COMPETITIVE AND LABOUR-ABSORBING ECONOMY

   
2.1 Grow bio fuels industry targeting job creation including the finalization of a bio fuel strategy and business planDME, DST, DOA, DTI, DEAT, DOT, DLA, DWAF, NTJan-07Biofuel Strategy presented to Cabinet
2.2 Complete draft of RIA system and introduce into regulation making procedures and complete regulatory reform (small business project)Presidency, NT, DTIDec-06Consultations on RIA implementation being concluded and the Implementation Strategy will go to Cabinet iearly in 2007
2.3 Finalise and begin implementation of the National Export Strategy in collaboration with industry to expand accessDTIApr-07National Export Strategy drafted and to be presented to Cabinet after finalisation of industrial policy. The export portal & exporters database are being implemented
2.4 Formulate industrial policy framework including competition policy review, beneficiation, investment plans, trade linkages, etcDTIOct-06Comments received from departments. National Industrial Policy Framework (NIPF) presented to Cabinet in Nov-06
2.5 Bring down the cost of ICT by developing high speed national and international broadband capacity.DOC, DTI, DST, DPENov-06Agreement on 2nd National Broadband Infrastructure Backbone InfraCo. Discussion on wireless broadband network for 2nd economy by Sentech continuing. Protocol on International NEPAD Broadband Network signed, due for ratification
2.6 Grow BPO&O sector to enhance job creation by finalizing incentive package including skills developmentDTI, DOC, DPE, DOLJul-06BPO incentive package presented to Cabinet in Dec-06
2.7 Accelerate growth of tourism sector concentrating on key constraints which include airlift capacity, skills development, marketing etcDEAT, DTI, DOT, DPE, StatsSAMar-07Tourism Growth Strategy and CSP finalised. Work streams in progress
2.8 Promote Research and Development through increasing public sector R&D and increasing total R&D spend to 1% of GDPDSTOngoingR&D reached 0.87% of GDP in 2005. New Research Information Management System has been designed. A draft ICT R&D Strategy has been finalised.
2.9 Finalise policy and plan regarding multiple operators in rail and ports, and relationship between operations and infrastructure in rail sectorDOT, DPEJun-07Draft regulation on ports published for public comment and operationalisation of the Independent Ports Regulator due to commence in early 2007. Draft Rail Economic Regulator Institutional Framework completed; to go to Cabinet in early 2007
2.10 Implement taxi recap within a reformed bus subsidy systemDOT, DTIOngoingAdmin Agency: established and operational. Scrapping Admin Agency: identifying & resourcing facilities. Scrapping started in 4 provinces in Oct-06. Financial viability model for taxi operations completed
2.11 Finalise the Integrated Agriculture Development PlanDOA, DTIDec-06Work is ongoing, Plan will be finalised in Feb-07
2.12 Finalise Cultural Industry Sector StrategyDTI, DACApr-06-07Sector strategies for Film & TV & Crafts complete. The Board recommended formalised institutional arrangement between DTI, DAC & DOC to establish joint implementation plan & Craft strategy awaiting approval
2.13 Implement Chemicals Sector Strategy with proposals for restructuring of State Owned Enterprises in the sectorDTI, DST, DPEJun-06Implementation of the Key Action Plans of CSP has begun particularly on Titanium Beneficiation Initiative as well as Best Practice Initiative. SOE Chemicals restructuring report delayed until validation workshop is held
2.14 Finalise Clothing and Textiles sector strategyDTI, DOL, NT, SARSApr-06DTI will continue to engage with Retail Sector for an integrated strategy addressing competitive issues with the Textile & Clothing value chain.
2.15 Strengthening implementation of IDZDTI, NTJun-06IDZ guidelines have been gazetted. SARS to finalise their operational guidelines for custom & excise area associated with IDZs. First permit to be awarded to East London IDZ
2.16 Integrated approach to 2010 to achieve increased rate of investments by exploiting private investment, development of SMME’s etcDSR, DTIOngoingWork is ongoing.
2.17 New Sector Priorities to include: community and social services, wood and paper, appliances, retail and construction.DTI, NT, DPW, DEATMar-07Wood, Pulp and Paper progress: Strategic framework document presented to & endorsed by DTI. DTI working with KZN, Eastern Cape stakeholders in the development of wood clusters
2.18 Promoting the region as an astronomy and space science global hub including the launch of the space council and ratification of UN treaty on outer spaceDTI, DSTOngoingSouth Africa has been shortlisted with Australia in the international site selection process for the SKA.

3

MASSIVELY INCREASE PUBLIC INVESTMENT

   
3.1 Public-private partnerships in infrastructure development should be more strongly supported by the National Treasury who should engage with the private sector on expediting the delivery of PPPsNT, DPLGJul-06Remuneration & Section 54 PFMA Guidelines Generic Shareholder Compacts and a draft Shareholder Management Framework are all complete & in consultative processes with internal & external stakeholders. Final target Mar-07
3.2 Develop Olifants river systemDWAFApr-06Record of Decision has been amended to address certain raised as concerns by appellants. Project now proceeding
3.3 Develop Durban – Gauteng CorridorDOT, DPE, DTI, Provincial DOT, Joburg, EthekwiniOngoingSeveral sub-projects underway including Durban Freight Plan, Harrismith Hub and City Deep. TOR for City Deep Depot have been completed and tender advertised. Tender for freight Logistics plan is awaiting award
3.4 Roll-out Sentech Wireless Broadband networkDOC, DOE, Health, DTI, DSTMar-07Three-phased roll-out plan developed. Funding Plan being finalised
3.5 Review capital expenditure procurement of SOE’s for AsgiSA infrastructure projectsDPE, DTI, NTJul-06Overarching Supplier Development Strategy for Eskom and Transnet finalised, now being developed in detail
3.6 Revise environmental impact assessments regulationsDEAT, DTIJun-06The amended final draft Environmental Impact Assessment regulations were launched and Gazetted in Apr-06 and came into effect in Jul-06
3.7 Build and monitor system for infrastructure implementation and impact in particular electricity, water, rail, air-transport, road as reflected in AsgiSADPE, DWAF, DPLG, Presidency, NTJul-06Eskom and Transnet dashboard finalised and implemented. Treasury planning to use template to extend dashboard to its database
3.8 Finalise investment plan for public rail passenger transport (detailed plan needs to be submitted to Cabinet)DOT, DPE, NTDec-06Draft Investment Plan to be ready by Jul-07 to address funding and investment requirements for the passenger rail business arising from the Public Transport Strategy presented to Cabinet in Oct-06.
3.9 Finalise investment in five top freight border post, working with JCPS Cluster (see JCPS 4.2.2)DOT, NT, DPWJul-07Work is ongoing.
3.10 DPE to submit shareholder management model, performance practices among State Owned Enterprises and remuneration of executive and non-executive directors to CabinetDPE, NT, DPSAJun-06Remuneration & Section 54 PFMA Guidelines Generic Shareholder Compacts and a draft Shareholder Management Framework are all complete & in consultative processes with internal & external stakeholders. Final target Mar-07
3.11 Submit report to Cabinet on better utilization of Public Investment Commission's Isabaya FundNTDec-06Work in progress

4

EQUITY AND DEVELOPMENT

   
4.1 Finalise sector BEE Charters, Codes of Good Practice and establish BEE Advisory Council ,DTI, NT, DOC, DME, DOA, DWAF, DEAT PresidencySep-06All campaign booklets distributed & workshops for beneficiaries in all provinces completed. Stakeholder conference to promote expanded second economy communication held in Nov-06
4.2 Finalise and implement strategy for financial and non-financial support to co-operative enterprisesDTI, DOA, DPWDec-06NEDLAC Conference on cooperatives in line with GDS planned to enable govt to strngthen alignment with key stakeholders. Initiatives being funded in textiles, arts and crafts and retail consumer cooperatives
4.3 Develop appropriate infrastructure for and technical support for trading markets including street tradingDPLG, DTIJun-07A draft manual for redtape or by-law review completed and implementation of a pilot project started in Emalahleni Municipality. TOR for the development of a national trading market programme finalised.
4.4 Implement set-asides for SMME’s and ensure timely paymentDTI, NTJul-06The ten most procured products have been identified. Public Sector SMME Targeting Procurement Scheme to be gazetted upon approval of the strategy by Cabinet
4.5 Ensure incorporation of SMME needs in sector strategies, and promote specific sectors such as arts and crafts to benefit Second Economy communitiesDTI, PresidencyOngoingCraft CSP completed and awaiting approval. SMME needs are incorporated into Sector Strategies via Customised Sector Programme methodology
4.6 Improve access to finance for micro-enterprises, including access to finance for SME’s by leveraging FSC R5 billion commitmentDTI, DOAOngoingKhula's direct lending channel strategy to be presented to cabinet. Start-up fund launched in Feb-06.Regional launches conducted
4.7 Develop call centres in five poor communitiesDPE, DPLG, DTI, DOC Call Centre Costing Models developed for 6 identified sites. DOC Developmental pricing targeting rural call centres
4.8 SEDA to operate and open offices in all provinces and develop new productsDTIApr-078 provincial offices operational. Gauteng still under negotiations. The rollout plan was scheduled for completion by Mar-08, but timelines may shift due to financial constraints. Budgetary support from 3 spheres of govt still voluntary
4.9 Implement Cabinet decision regarding regulatory reform for small businessPresidency, DTI,NT, DOL, DPLGDec-06Currently developing a manual to assist municipalities understand and make efforts to reduce regulatory burden on SMMEs. SMME tax amnesty underway.
4.10 Extend mass communication campaign to inform citizens in second economy about how to access opportunities including those for skills development and available supportGCIS, EIE ClusterOngoing13 part TV series on economic opportunities rebroadcast by SABC from Oct-06. National stakeholder conference to promote expanded second economy communication held in Nov-06
4.11 Collaboration with JSE to increase its role in enterprise developmentPresidency, DTIOngoingThe Presidency is engaging the JSE on the use of AltX to promote enterprise development. The discussion to be broadened to include other departments.
4.12 Implementation of Communal Land Rights Bill to improve the possibilities for better economic utilization of communal landDLA, DOAApr-07Preparatory work for implementation of the Act underway. Procedural systems and implementation to be refined once outstanding legal challenges are resolved.
4.13 StatsSA and relevant govt agencies to start research on economic activities in Second Economy communities while implementing Cabinet decision on a comprehensive household survey and allocation of addresses to all householdsStatsSA,Apr-07StatsSA has completed a pilot of 15 municipalities and work is ongoing in this area.
4.14 Intensify implementation of Expanded Public Works Programme   
4.14.1Ensure utilization of public works methods in public sector infrastructure projects and pool resources to ensure better impact DPLG, DPW, NT, DOTOngoingDPW working with Business Trust to develop a model that will enable provinces & municipalities to implement large-scale EPWP projects.
4.14.2Meet annual targets to ensure creation of at least 1-million work opportunities by 2009 DPWQuarterly reviewAbout 250,000 net work opportunities created in the first 6 quarters of the EPWP
4.14.3Finalise modality for larger projects for access roads and scale up road building DPW, DPLG, DOT, NTDec-06Provincial proposals for EPWP roads being consolidated for Infrastructure Grant for Provinces (IGP) application. Pilot Programmes to commence in 2007/8
4.14.4Complete plan for maintenance of general public infrastructure DPW, DPLGDec-06Maintenance strategy adopted by Cabinet in Aug-06.

5

ENSURE PRIORITY SKILLS FOR THE ECONOMY

   
5.1 Achieve 2006-2007 annual targets of the NSDS: scarce skills programmes incl learnerships and apprenticeships; take in 25 000 workers and 25 000 unemployed young people incl designated groups; skills programme supports 90 000 unemployedDOL, DOE, DST, DTI, DHA, DPE, SS ClusterApr-07Reports at end of second quarter for 2006 ű 2007 showed 16 285 workers in learning programmes, 14 853 unemployed in learning programmes and 56 998 unemployed in skills programmes. All targets are on track
5.2 Expand intermediate and high level skills: Maths and Science (Dinaledi schools) and National Research Chairs Programme, working with the Social Sector ClusterDOE, DST, DPE, SS ClusterDec-0880 master teachers for Maths and Physical Science higher grade were trained in Sept-06. 50 Dinaledi schools without textbooks provided with grade 12 Maths textbooks. 400 Dinaledi schools provided with 20 000 copies of study guide
5.3 Develop and implement Employment Services System by March 2007: Register work-seekers, register placement opportunities, provide matching services; Career guidance, counseling, information and skills development referralsDOL, DOE, DST, DTI, DHA, DPE, DPE, StatsSAMar-07The inputs for the Employment Service System consolidated through extensive consultation process. A finalised project plan detailing 3 phases completed and is being implemented.
5.4 Establish and run Joint Initiative on Priority Skills Acquisition (JIPSA)Presidency, DTI, DPE, DOE, DOL, DST, DPSA, DHAMar-06 and ongoingReport submitted to JIPSA JTT that all skills development targets can be achieved within framework of National Skills Development Strategy 2005 ű 2010, in particular the need for 50,000 artisans by 2010
5.5 Implementation of policy framework relating to immigrant labourDHA, DTI, DOLOngoingA consolidated master skills list was finalised in Aug-06 and processed to DHA in for publication as the annual immigration quota list in Gazette
        Report created: 07 February 2007