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2) the dti Annual Performance Plan 2016-2019 Published by the dti, This document contains confidential and proprietary information. The dissemination, copying, disclosure, use of, or taking of any action in reliance on the contents thereof, without the written consent of the dti, is strictly prohibited. RP: 80/2016 ISBN: 978-0-621-44411-7 Physical address: 77 Robert Sobukwe Sunnyside 0002 Postal address: Private Bag X 84 Sunnyside Pretoria Gauteng 0002 Phone: 0861 843 843 Fax: 0861 843 888 Email: info@thedti.gov.za Website: www.thedti.gov.za 2 

3) the dti Annual Performance Plan 2016-2019 Table of Contents 1. Abbreviations and Acronyms ......................................................................................................................... 4 2. Organisational Structure ................................................................................................................................ 6 3. Foreword by the Minister .............................................................................................................................. 7 4. Overview by the Director-General ............................................................................................................... 10 5. Official sign-off ............................................................................................................................................. 11 Part A: Strategic Overview .................................................................................................................................... 12 1. Vision ........................................................................................................................................................... 12 2. Mission ........................................................................................................................................................ 12 3. Values.......................................................................................................................................................... 12 4. Strategic Outcome-Oriented Goals .............................................................................................................. 12 5. Strategic Objectives ..................................................................................................................................... 12 6. Updated Situational Analysis ....................................................................................................................... 13 6.2 Performance delivery environment .............................................................................................................. 25 6.3 Organisational environment ......................................................................................................................... 27 7 Legislative and Other Mandates .................................................................................................................. 31 8 Future Policy Development.......................................................................................................................... 35 9 Recent Court Rulings .................................................................................................................................. 36 10 Financial Plan (Expenditure Estimates) ....................................................................................................... 36 Part B: Programme and Sub-Programme ............................................................................................................. 40 11 Strategic objectives ..................................................................................................................................... 40 12 Programmes and sub-programmes ............................................................................................................. 41 12.2 Programme 1: Administration ................................................................................................................... 41 12.3 Programme 2: International Trade and Economic Development .............................................................. 45 12.4 Programme 3: Special Economic Zones and Economic Transformation ................................................. 49 12.5 Programme 4: Industrial Development ..................................................................................................... 52 12.6 Programme 5: Consumer and Corporate Regulation ............................................................................... 56 12.7 Programme 6: Incentive Development and Administration ...................................................................... 62 12.8 Programme 7: Trade Export South Africa ................................................................................................ 66 12.9 Programme 8: Investment South Africa ................................................................................................... 69 Part C: Links to Other Plans .................................................................................................................................. 71 13 Asset Management Plan.............................................................................................................................. 71 14 Information Technology Plan ....................................................................................................................... 71 14.2 ICT Objectives ......................................................................................................................................... 71 14.3 Information Management ......................................................................................................................... 71 14.4 Key ICT Projects ...................................................................................................................................... 72 15 Risk Management ........................................................................................................................................ 72 16 Service Delivery Improvement Plan (SDIP) ................................................................................................. 74 17 Public Entities Reporting to the Minister ...................................................................................................... 74 18 Public-Private Partnership (PPP) ................................................................................................................. 78 Annexure A: Changes to the Strategic Plan .......................................................................................................... 79 3 

4) the dti Annual Performance Plan 2016-2019 1. Abbreviations and Acronyms TERM DEFINITION AIS Automotive Investment Scheme ADEP Aquaculture Development and Enhancement Programme AGOA African Growth and Opportunity Act, 2000 B-BBEE Broad-Based Black Economic Empowerment BEE Black Economic Empowerment BPS Business Process Services BRICS Brazil, Russia, India, China and South Africa CCRD Consumer and Corporate Regulation Division CIP Critical Infrastructure Programme CIPC Companies and Intellectual Property Commission, a public entity reporting to the dti CGICTPF Corporate Governance of ICT policy framework CRM Customer Relationship Management CSIR Council for Scientific and Industrial Research C-FTA Continental Free Trade Area CT Companies Tribunal, a public entity reporting to the dti dsbd Department of Small Business Development DG Director-General EAC East African Community ECIC Export Credit Insurance Corporation SOC Ltd, a public entity reporting to the dti EAP Economically Active Population EIP Enterprise Investment Programme EMIA Export, Marketing and Investment Assistance ENE Estimates of National Expenditure EPA Economic Partnership Agreement EU European Union FDI Foreign Direct Investment FTA Free Trade Agreement GDP Gross Domestic Product GFC Global Financial Crises GFCF Gross fixed capital formation ICT Information and Communication Technology IDC IDZs Industrial Development Corporation, a public entity reporting to the Economic Development Department Industrial Development Zones IEMS Implementation of enhanced and modernised incentive management system IMF International Monetary Fund IP Intellectual Property IPAP Industrial Policy Action Plan ISP Incubation Support Programme 4 

5) the dti Annual Performance Plan 2016-2019 TERM DEFINITION ISA Investment South Africa ITIs Investment Trade Initiatives ITAC International Trade Administration Commission MBAP Mineral Beneficiation Action Plan MCEP Manufacturing Competitiveness Enhancement Programme MTSF Medium-Term Strategic Framework NCA National Credit Act of 2005, as amended NAFTA North Atlantic Free Trade Agreement NCC National Consumer Commission, a public entity reporting to the dti NCR National Credit Regulator, a public entity reporting to the dti NCT National Consumer Tribunal, a public entity reporting to the dti NDP National Development Plan NEDP National Exporter Development Programme NEF National Empowerment Fund, a public entity reporting to the dti NEPAD New Partnership for Africa’s Development NGB National Gambling Board, a public entity reporting to the dti NGP New Growth Path NIPF National Industrial Policy Framework NLC National Lotteries Commission, a public entity reporting to the dti NMISA National Metrology Institute of South Africa, a public entity reporting to the dti NRCS National Regulator for Compulsory Specifications, a public entity reporting to the dti ODG Office of the Director-General PPP Public-Private Partnership PTA Preferential Trade Agreement RIA Regulatory Impact Assessment SABS South African Bureau of Standards, SOC Ltd, a public entity reporting to the dti SACU Southern African Customs Union SADC Southern African Development Community SANAS South African National Accreditation System, a public entity reporting to the dti SDI Spatial Development Initiative SDIP Service Delivery Improvement Plan SEZ Special Economic Zone SIMF Single Inclusive Mainstreaming Framework SONA State of the Nation Address T-FTA Tripartite Free Trade Agreement TESA Trade Export South Africa UK United Kingdom USA United States of America the dti The Department of Trade and Industry WTO World Trade Organisation WEO World Economic Outlook 5 

6) the dti Annual Performance Plan 2016-2019 2. Organisational Structure 6 

7) the dti Annual Performance Plan 2016-2019 3. Foreword by the Minister Minister of Trade and Industry, Dr Rob Davies South Africa is a small, developing economy. Our economy is also relatively open with only modest restrictions on financial in- and outflows including by South African firms and residents. Moreover our trade tariffs are at the aggregate level low compared to other developing countries. Consequently, global economic conditions have a major impact on the South African economy. During the ‘commodity super-cycle’, South Africa benefited from the rapid growth in global mineral commodity prices and was able to reduce the fiscal deficit and government debt as tax revenues rose and consistently exceeded Government forecasts. Unfortunately the onset of the Global Financial Crisis in late 2007 signalled the end of the ‘commodity supercycle’. Eight years later, the negative effects are still being felt across the globe. Paradoxically, even as the global economy recovers, developing countries such as South Africa continue to bear the brunt of the adjustment costs. Recently, as the United States (US) Federal Reserve adjudged the US economic recovery to be sustainable and therefore able to weather ‘normalisation’ of its monetary policy, interest rates were increased marginally for the first time since 2006. Almost immediately, portfolio investors withdrew significant funds from developing countries – including South Africa – leading to heightened currency volatility and a particularly deep over-correction in both Emerging Market sentiment and these countries’ exchange rates relative to the US Dollar. These global developments coupled with domestic challenges such as electricity supply, high levels of household indebtedness and low levels of business confidence, have created a particularly challenging economic environment for South Africa. It was in this context that the President of the Republic of South Africa announced the development of the 9-Point Plan to ignite growth and create jobs. At the end of the first year of implementation of the 9-Point Plan, we note that – notwithstanding the deterioration in global economic conditions – our policy interventions have begun to bear fruit in a number of key areas. These include the extent to which the Industrial Policy Action Plan (IPAP) has gained traction with stakeholders 7 

8) the dti Annual Performance Plan 2016-2019 including Business, sustained Foreign Direct Investment inflows to South Africa, and rapidly growing exports of manufactured goods to our African neighbours. We are conscious that the economic needs of our citizens are immense and that more needs to be done; but we are also mindful of the strong industrial capabilities South Africa can build upon such as in Automotives, Locomotives, Mining Equipment and Agro-processing. These capabilities have also been identified by the private-sector and therefore the opportunity to develop meaningful partnerships must be grasped. In the coming years, this renewed focus on partnerships with the private-sector will be used to implement a range of our key policy interventions. These will include our revitalisation of Local Industrial Parks across South Africa, promotion of investment opportunities through Investment South Africa, and greater prioritisation of opportunities on the African continent across all industrial sectors. These interventions are designed to build on the partnerships already working in areas such as IPAP, our interventions in the Clothing, Textile, Leather and Footwear value-chain, and Special Economic Zone (SEZ) programme. In the coming year, we will revitalise at least ten local Industrial Parks in townships areas so as to create opportunities for entrepreneurial development and transformation of townships into areas of economic activity in their own right. We will also roll-out the Black Industrialist programme which seeks to sustainably and rapidly transform the demographic profile of our industrial sectors. Moreover, we will co-ordinate the provision of the One Stop Shop investment facilitation through Investment SA and the designation of further SEZs. In a number of areas, bold plans have been developed to unlock the beneficiation opportunities in the Platinum Belt, the metallurgical cluster in Musina, and platinum processing in Gauteng through the development of SEZs. The number of firms in economic distress has increased as the global economic outlook has deteriorated. This is beginning to place pressure on the dti’s incentive programmes with many of these over-subscribed or likely to become over-subscribed in the coming year. the dti will therefore refine its incentive programmes with a view to optimising the support available to as wide a group as possible. A key element of this will be strengthened support to labour-intensive sectors such as the Clothing, Textiles, Leather and Footwear value-chain, Agro-processing, Business Process Services, and Tourism. The package of support for the Black Industrialists programme will also be rolled-out in ernest in the coming year. The need for fiscal consolidation given the challenging economic environment is well known. This places even more emphasis on the need to extract the maximum industrialisation benefit from Government and private-sector spending. the dti will therefore continue to identify local procurement opportunities and will monitor compliance. I am encouraged that in recent engagements with Business, the issue of local procurement continues to attract attention and am optimistic that the notable local procurement successes in the clothing, locomotives and busbuilding sectors will convince Business to aggressively champion this intervention. In what is likely to be a budget-constrained year, local procurement is a key intervention which does not require substantial on-budget funding. 8 

9) the dti Annual Performance Plan 2016-2019 Although economic growth in Africa has been revised down for 2016 and 2017, the Continent remains one of the fastest-growing regions in the world. Our trade policy engagements including in the Southern Africa Development Community and the Tripartite-Free Trade Area, place South Africa in a unique position to expand trade to Africa. Developing these opportunities will be the primary focus of a dedicated Export Council for Africa. Furthermore, we will re-assess our package of incentives available to firms exporting to Africa and especially exporting capital equipment to the Continent. Where necessary our incentive offering will be strengthened to ensure our firms are able to benefit from these opportunities. These interventions represent an ambitious programme of work for the dti for the coming year and are designed to address South Africa’s triple challenges of poverty, inequality and unemployment. I am confident that focused implementation of these interventions will build a better South Africa and contribute to reaching the National Development Plan target of 5% GDP growth. Dr Rob Davies, MP Minister of Trade and Industry 9 

10) the dti Annual Performance Plan 2016-2019 4. Overview by the Director-General Director-General, Lionel October The Annual Performance Plan 2016-2019 which was prepared through consultation with management is hereby submitted in accordance with the National Treasury Framework on Strategic and Annual Performance Plans. Mr Lionel October Director-General 10 

11) the dti Annual Performance Plan 2016-2019 5. Official sign-off It is hereby certified that this Annual Performance Plan: Was developed by the management of the Department of Trade and Industry under the guidance of the Minister, Dr Rob Davies (MP); Was prepared in line with the current strategic plan of the Department of Trade and Industry; Accurately reflects the performance targets which the Department of Trade and Industry will endeavour to achieve given the resources made available in the budget for 2016 to 2018. Mr Shabeer Khan Signature: Chief Financial Officer Ms Jodi Scholtz Signature: Group Chief Operating Officer Mr Lionel October Signature: Accounting Officer Approved by: Minister Dr Rob Davies, MP Signature: Executive Authority 11 

12) the dti Annual Performance Plan 2016-2019 Part A: Strategic Overview 1. Vision A dynamic industrial, globally competitive South African economy, characterised by inclusive growth and development, decent employment and equity, built on the full potential of all citizens. 2. Mission the dti’s Mission is to: • Promote structural transformation, towards a dynamic industrial and globally competitive economy; • Provide a predictable, competitive, equitable and socially responsible environment, conducive to investment, trade and enterprise development; • Broaden participation in the economy to strengthen economic development; and • Continually improve the skills and capabilities of the dti to effectively deliver on its mandate and respond to the needs of South Africa’s economic citizens. 3. Values the dti Values are: ï‚· Operational excellence – service delivery standards, international best practice, Batho Pele Principles, continuous improvement and ethical conduct ï‚· Intellectual excellence – continuous shared learning, innovation, relevant knowledge and skills improvement and knowledge management ï‚· Quality relationships – improved and continuous communication, honesty, respect, integrity, transparency, professionalism, ownership, leadership and teamwork 4. Strategic Outcome-Oriented Goals • Facilitate the transformation of the economy to promote industrial development, investment, competitiveness • Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and and employment creation; economic development objectives; • Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth; • Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner; and • Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery. 5. Strategic Objectives ï‚· Grow the manufacturing sector to promote industrial development, job creation, investment and exports ï‚· Improved conditions for consumers, artists and opening up of markets for new patents players ï‚· Strengthened capacity to deliver on the dti mandate 12 

13) the dti Annual Performance Plan 2016-2019 6. Updated Situational Analysis THE GLOBAL ECONOMIC CONTEXT Economic growth outlook The International Monetary Funds (IMF) update of its World Economic Outlook (WEO) in January 2016 revised down its forecast for global economic growth by 0.2 percentage points from 3.6 per cent to 3.4 per cent. This revision reflects the weakening global economic recovery as growth in Emerging Markets falters. Global demand in 2016 is expected to remain low, influenced by the gradual normalisation of US monetary policy, lower prices for energy and other commodities, and the rebalancing – with associated slowdown – of economic activity in China. Economic growth in advanced economies is expected to reach 2.1 per cent in 2016 as domestic demand strengthens in the Euro-area as a result of lower oil and gas prices. In Japan, stronger growth of 1.0 per cent is expected in 2016 as the country emerges from a protracted recession. However, the economies of Latin America and the Caribbean are expected to contract by 0.7 per cent primarily due to the recession in Brazil. Growth is expected to soften somewhat in sub-Saharan Africa as the impact of lower commodity prices and especially oil prices result in slowing demand and fiscal consolidation by Governments. Nevertheless, economic growth is expected to reach 4 per cent in 2016 and 4.7 per cent in 2017. Growth in China is projected to trend downwards from 6.8 per cent in 2015 to 6.3 and 6.0 per cent in 2016 and 2017, respectively. The anticipated sluggish growth primarily reflects weaker investment growth as the rebalancing of the economy continues. Figure 1: Global GDP growth from 2007 to 2020 Global GDP Growth Rates and Forecasts 15 Euro Area Sub-Saharan Africa Latin America and the Caribbean 13 11 9 7 Per cent 5 3 1 -1 -3 e-estimate -5 -7 2007 2008 2009 2010 Source: Data-IMF, Graph-the dti 2011 2012 2013 2014 Year 13 2015e 2016e 2017e 2018e 2019e 2020e 

14) the dti Annual Performance Plan 2016-2019 World Trade World exports declined significantly by 21.2 per cent from R129.6 trillion in 2008 to R102.1 trillion in 2009 mainly due to the lag effect of the global financial crisis of 2008. However, world exports recovered from 2010 reaching R179.4 trillion in 2013. In 2014, the rate of growth slowed down to 12.8 per cent bringing the total value of export to approximately R202.3 trillion. In 2014, the top five world exporters were China (R25.4 trillion), USA (R17.5 trillion), Germany (R16.2 trillion), Japan (R7.5 trillion) and Republic of South Korea (R6.2 trillion). Figure 2: World trade actual performance World Trade World Exports 40 World trade growth 30 200 20 Per cent World exports (R' billion) 250 150 10 100 0 -10 50 0 -20 2007 2008 2009 Source: Data-Trade Map, Graph -the dti 2010 2011 2012 2013 2014 -30 Year DOMESTIC ECONOMIC CONTEXT Annual and Quarterly Gross Domestic Product (GDP) The South African economy, like many emerging economies was not immune to the effects of the global financial crisis (GFC). The country’s annual GDP growth dropped sharply from 5.4 per cent in 2007 to -1.4 per cent in 2009. However GDP started picking up reaching 2.9 per cent in 2010, and settled at 3.0 per cent in 2011. The positive growth was mostly driven by the services sector which grew by 4.0 per cent. Thereafter, a slight decline was experienced which saw GDP stabilising at 2.2 per cent and 2.3 per cent in 2012 and 2013 respectively. However, GDP dropped further to 1.6 per cent in 2014. The mining and manufacturing sectors experienced major slow down between 2007 and 2014 recording an average growth of -0.9 per cent and 1.1 per cent respectively. Contrary to the performance of the productive sectors, the services sector sustained positive growth rates reaching 3.0 per cent on average throughout the period of 2007 and 2014. On a quarterly basis, GDP growth has been uneven from the first quarter of 2007 to the third quarter of 2015. The deepest GDP decline of 6 per cent was registered in the first quarter of 2009 in the aftermath of the GFC. However, the economy picked up to reach 4.8 per cent growth in the first quarter of 2010 driven mainly by the investment in infrastructure. From the first quarter of 2011 to the third quarter of 2015, GDP growth rate averaged 1.9 per cent. The highest growth rate was recorded in the fourth quarter of 2013 reaching a high of 5.1 per cent. 14 

15) the dti Annual Performance Plan 2016-2019 Figure 3: Annual and Quarterly GDP Growth from 2007 to 2015 GDP Growth by sectors Economic activity in the manufacturing sector has been growing at an average of 1.0 per cent whereas the mining sector remained unchanged over the review period (2007Q1 to 2015Q3). However, agriculture, forestry and fishing sector has a highly volatile regularity pattern which could be explained by the seasonality in the sector, with certain periods in the year dedicated to ploughing and other periods falling within the harvest time. Real GDP increased by 0.7 per cent during the third quarter of 2015 following a decline of 1.3 per cent in the second quarter. The largest contributors were the manufacturing sector which contributed 0.8 percentage points and grew by 6.2 per cent; Finance, real estate and business services sector contributed 0.6 percentage point based on 2.8 per cent growth rate and third largest contributor emanated from the Wholesale, retail and motor trade; catering and accommodation sector which contributed 0.3 percentage point brought about by 2.5 per cent growth of the sector. The strong growth registered by the manufacturing sector cushioned the economy from entering into technical recession. During the third quarter of 2015 manufacturing contribution was mainly driven by the petroleum, chemical products, rubber and plastic products; wood and wood products, paper, publishing and printing and the food and beverages sector. The mining sector reflected a negative growth of 9.8 per cent due to lower production in the mining of coal; other metal ores including platinum and diamonds in the third quarter of 2015. Agriculture, forestry and fishing fell by 12.6 per cent in the third quarter. This can be attributed to decreases in the production of field crops due the drought experienced in the country. 15 

16) the dti Annual Performance Plan 2016-2019 Figure 4: GDP Growth by sectors The slowdown in economic growth has highlighted structural constraints in the domestic economy. Currently, lower commodity prices, slow growth among major trading partners and volatility in global monetary policy and capital flows are directly affect South Africa. The lower commodity prices have highly hindered the export growth, thus dampening the drive for resources as well as the manufactured goods. Although domestic challenges such as electricity constraints, drought, and low commodity prices continue to weigh on the GDP growth the government is committed to resolving them. During the 2015 State of the Nation Address the President announced the 9-point Plan that will set South Africa onto a higher growth trajectory. the dti is leading in three areas of the 9-point Plan i.e. advancing mineral beneficiation or adding value to our mineral resources, scaling up private sector investment and the implementation of a higher impact Industrial Policy Action Plan (IPAP). These point plans are embedded within the Outcome 4 Medium Term Strategic Framework and informs the department’s plan for the medium term. Furthermore, the dti led action plans are aligned to the National Development Plan objectives of increasing exports in key sectors as identified in IPAP. With regard to adding value to South Africa’s mineral resources, five value chains namely iron-ore and steel, polymers, titanium, platinum group metals and upstream mining inputs (capital goods, machinery and equipment) have been prioritised. The implementation of IPAP has resulted in stabilisation of sectors such as clothing and textiles, automotives and agro-processing which were under threat of being eroded in the past few years. Over the medium term, the implementation of the higher impact IPAP will focus on three additional growth sectors with strong backward and forward linkages in the economy. These sectors are Oil and Gas, Agro-processing and Metal products, engineering and capital equipment. Gross Fixed Capital Formation as a ratio of GDP Total Gross Fixed Capital Formation (GFCF) as a ratio of GDP has averaged 20 per cent in the period 2007 to the third quarter 2015. The private sector contributed around 14 per cent; Public corporations contributed an average of 4 per cent of the total GFCF while general government contributed between 2 and 3 per cent of the 16 

17) the dti Annual Performance Plan 2016-2019 total average growth. The fourth quarter of 2008 saw the highest ratio of GFCF as a percentage of GDP at around 23 per cent, probably attributable to the government stimulus package to stem the global financial crisis in the country. Figure 5: Real Gross Fixed Capital Formation as a ratio of GDP Gross Fixed Capital formation as a ratio of GDP: by 25 GFCF: General gvt GFCF: Public corporations 20 Per cent 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 Source: Data-Stats, Graph- 2009 2010 2011 2012 2013 2014 2015 Quarter Foreign Direct Investment Foreign direct investment (FDI) has on average, been clocking positive inflows per annum from the first quarter of 2007 to the third quarter of 2015. However, the third quarter of 2011, fourth quarter of 2012 and the first quarter of 2015 recorded high outflows of R6.7 billion, R981 million and R13.9 billion respectively. The first quarter of 2008 registered a positive R44.4 billion of inflows (at the beginning of the Global Financial Crisis) while a significant R46.9 billion of FDI in the third quarter of 2013 was invested by foreigners in South Africa. Notably, the 2008 GFC had no immediate impact on FDI inflows to South Africa. Generally, given the positive FDI inflows post the GFC, it would appear that the South African economy has been one of the preferred FDI destinations on the African continent, notwithstanding that South Asia is one of the leading destinations for global FDI. In November 2015, South Africa hosted the Forum on Cooperation between Africa and China. At this Forum, China announced that it will be investing US$50 billion in the content and South Africa will receive US$10 billion for infrastructure, industrialisation and skills development. Key investments were also announced in the automotive sectors by Mercedes, BMW, Goodyear, VW, Beijing Auto Works, the Metair group and General Motors. Multinational companies such as Nestle, Unilever, Hisense and Samsung have also affirmed South Africa as the regional manufacturing hub by investing in the country. 17 

18) the dti Annual Performance Plan 2016-2019 Figure 6: Foreign Direct Investment Foreign Direct Investment R'million 50 000 40 000 FDI in R'million 30 000 20 000 10 000 - Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 (10 000) 2007 2008 2009 2010 2011 2012 2013 2014 2015 Quarter (20 000) Source: Data-SARB, Graph-the dti Employment According to the Labour Force Survey, about 171 000 jobs were created in the third quarter compared to the second quarter of 2015. On a year-on-year basis, the figures show that 712 000 jobs were created in Q3 of 2015 compared to Q2 of 2014. The formal sector accounted for over 55 per cent of the jobs created in 2015 whilst the informal sector accounted for 35 per cent. Overall total employment increased by 1.3 million in the period starting Q1 2007 and ending in Q3 of 2015. Figure 7: Quarterly Labour Force Survey: Employment statistics Quarterly Labour Force Survey-Employment 16 000 No. of employees (in thousand) 15 500 15 000 14 500 14 000 13 500 13 000 12 500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 Source: Data-Stats SA, Graph-the dti 2010 2011 Quarter 18 2012 2013 2014 2015 

19) the dti Annual Performance Plan 2016-2019 Employment by sector The manufacturing sector shed jobs for the past nine years. The highest job losses occurred in textiles, clothing and leather goods subsector. Between 2000 and 2010, the sector lost 45 000 jobs due to import infiltration. Imports in real terms grew from R 2.9 billion in 2000 to over R 11 billion by 2010. In order to stabilise the sector the dti introduced the Clothing and Textile Competitiveness Programme (CTCP) in 2010. As a result, 68 000 jobs have been saved and 6 900 new jobs created. Additionally, 22 new factories in leather and footwear have been opened. Overall, the sector has been successfully stabilised and is steadily regaining domestic market share. The manufacturing sector created 18 000 jobs in the third quarter of 2015. Although, agriculture lost jobs during the GFC of 2008/09 it is still showing resilience and reached its peak in the third quarter of 2015. The sector created 59 000 jobs in the third quarter of 2015 compared to the first quarter of 2015. It has regained more than 167 000 jobs that were lost during the recession reaching a record level of 897 000 in the third quarter of 2015. The mining sector employment has been steadily growing from approximately 353 000 jobs in the first quarter of 2008 to 443 000 in the third quarter of 2015. Figure 8: Employment by sector (QLFS) Employment by sector: QLFS 2 500 Job (in Thousand) Mining Manufacturing Agriculture 2 000 1 500 1 000 500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 Source Data-Stats SA, Graph-the dti 2012 2013 2014 2015 Quarter TRADE South Africa’s Trade from Q1 2007 to Q3 2015 In the third quarter of 2015, South Africa’s exports grew by R10 billion or 3.9 per cent, from R255 billion in the previous quarter. Significant contribution to this growth came from the manufacturing and mining sectors which reported growth rates of 4.8 per cent and 0.1 per cent to account for 49 per cent and 34 per cent of the total exports, respectively. South Africa’s imported goods surged by 11.9 per cent to reach R285 billion in the third quarter of 2015, after trending downwards in the first two quarters of 2015. The growth in imports accelerated faster than exports and resulted in the trade deficit widening by R20.5 billion in the third quarter of 2015 from R300 million in the second quarter. It is worth noting that South Africa is ranked number 41 with a total export of R981 billion out of 242 countries in terms of global export. 19 

20) the dti Annual Performance Plan 2016-2019 Figure 9: South Africa’s Trade from Q1 2007 to Q3 2015 South Africa's Trade 350 Exports to World 300 Imports from World SA Trade Balance Trade in R' bllion 250 200 150 100 50 0 -50 -100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2007 2008 2009 2010 2011 2012 2013 2014 2015 Qaurter Source: Data Quatec,Graph the dti South Africa’s top five import partners South Africa’s top five import partners from Q1 to Q4 2014 have been China, Germany, United States of America, India and Japan. China’s and Germany’s imports to SA totalled R51 billion and R33 billion in the third quarter of 2015, respectively. About 99 per cent of South Africa’s total imports from China were from the manufacturing sector (R50.2 billion), mostly from the following industries; metals, metal products, machinery and equipment (R14 billion) and electrical machinery and apparatus (R12 billion). Imports from Germany comprised of manufactured products and transport equipment. In the third quarter of 2015, South Africa’s demand for US and India imports grew by 4.5 per cent and 14.3 per cent, after reported decreases of 9.7 percent and 2.2 per cent in the previous quarter, respectively. 20 

21) the dti Annual Performance Plan 2016-2019 Figure 10: South Africa’s top five imports partners from Q1 2010 to Q3 2015 South Africa's Top Five Import Partners 60 India Japan China Germany United States of America R' Billions 50 40 30 20 10 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 Source: Data & Graph-the dti 2012 Quarter 2013 2014 2015 South Africa’s top five export partners China remained South Africa’s leading export trading partner for the past six years. In the fourth quarter of 2013, the exports to China reached R33.5 billion resulting mainly from increased exports of base metals and articles of base metal increasing by 22.6 per cent; and Mineral products by 21.9 per cent. South Africa’s exports to China decreased to below R25 billion since 2013 driven by a notable average decline of 45 per cent in exports of mineral products, and 10 per cent of base metals and articles of base metal in 2014 compared to 2013. However, in the third quarter of 2015 exports to China improved by 17 per cent year on year due to the rise in demand of the above mentioned commodities by China. Over the past five years, the United States has been the second largest consumer of commodities from South Africa. Exports to the US increased from about R10 billion in the first quarter of 2010 to R19.2 billion in the third quarter of 2015. The top exported commodities includes natural or cultured pearls, precious or semi-precious stones, precious metals, vehicles, aircraft, vessels and associated transport equipment, and mineral products. In the third quarter of 2015, exports to Germany increased by 44 per cent year on year making Germany the third export partner to South Africa. The value of South African exports to Germany in the third quarter of 2015 totalled R19 billion. The top export commodities to Germany includes vehicles, aircraft, vessels and associated transport equipment, natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof. South Africa’s exports to Namibia increased from R6.7 billion in the first quarter of 2007 to R13.6 billion in the third quarter of 2015. The top export commodities were machinery and mechanical appliances; electrical equipment, vehicles, aircraft, vessels and associated transport equipment, prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes, products of the chemical or allied industries and base metals and articles of base metal. South Africa’s exports to Botswana grew steadily from R7.5 billion in the first quarter of 2007 reaching R13.3 billion in the third quarter of 2015 but dropped slightly in the third quarter of 2015. The top export commodities to Botswana were mineral products, machinery and mechanical appliances; electrical equipment, natural or cultured 21 

22) the dti Annual Performance Plan 2016-2019 pearls, precious or semi-precious stones, vehicles, aircraft, vessels and associated transport equipment, and products of the chemical or allied industries and constitutes 65 per cent of the exported goods. Figure 11: South Africa’s top five imports partners from Q1 2010 to Q3 2015 South Africa’s Trade with BRICS In the third quarter of 2015, exports of goods to BRICS from South Africa dropped by 4.3 per cent, whereas imports soared by 22 per cent. Exports to BRICS were weighed down by China and India’s weak demand of 11 per cent and 21 per cent, respectively. South Africa’s exports to BRICS comprised largely mining sector commodities. Leading industries were; other mining and quarrying and coal and lignite, majority of these products were exported to China, Brazil and India. The high demand for BRICS’s goods by South Africa in the third quarter of 2015 has widened the trade deficit to R38 billion, the highest since the first quarter of 2007. 22 

23) the dti Annual Performance Plan 2016-2019 Figure 12: South Africa’s Trade with BRICS from Q1 2007 to Q3 2015 South Africa's trade with BRICS 200 Exports to BRICS Imports from BRICS SA Trade Balance _BRICS Trade (R' billion) 150 100 50 0 -50 -100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2007 2008 2009 Source: Data-Quantec, graph-the dti 2010 2011 2012 2013 2014 2015 Quarter South Africa’s Trade with Africa South Africa’s exports to Africa grew to R76 billion in the third quarter of 2015, the highest record since the first quarter of 2007. SADC is the largest importer of South Africa’s manufactured goods, accounting for over 85 per cent of SA’s total exports to the continent. South Africa’s trade with Africa remained in surplus. However, the trade surplus dropped to R1.7 billion in the third quarter of 2015 from R50 billion recorded in the previous quarter. Figure 13: South Africa’s Trade with Africa from Q1 2007 to Q3 2015 South Africa's Trade with Africa Trade with Africa in (R' billion) 90 Imports from Africa 80 Trade Balance Exports to Africa 70 60 50 40 30 20 10 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2007 2008 2009 2010 Source: Data Quantec; graph the dti 2011 2012 2013 2014 2015 Quarters South Africa’s export partners by region The exports to Southern African Development Countries (SADC) increased from R7.8 billion in the first quarter of 2007 to R64 billion in the third quarter of 2015 mainly due to high demand of South African exports of machinery, chemical product and products of iron and steel. This indicates that there are opportunities to be leveraged in the metal fabrication, capital and transport equipment. 23 

24) the dti Annual Performance Plan 2016-2019 South African exports to the EU increased from approximately R35 billon in the first quarter of 2007 to R58 billion in the third quarter of 2015 driven by the high demand of South African exports of precious metals, mineral products, vehicles and aircraft commodities. However, precious metals growth decreased by 8 per cent in the third quarter of 2015. The highest demand for these commodities was from the following countries: Netherlands, Germany, Italy, Spain, Belgium, Austria and the United Kingdom (UK). The exports to Eastern Asia have steadily increased from R21 billon in the first quarter of 2007 to R49 billion in the third quarter of 2015. The top three commodities that Eastern Asia has been importing from SA are minerals, precious metals, products of iron and steel. The average proportion of China’s imports comprised 28 per cent of the minerals products and the remaining is shared across other countries. Japan is the largest importer of precious metals from South Africa approximated at an average of 13 per cent in the period under review. North Atlantic Free Trade Agreement (NAFTA) is the fourth largest importer of South African goods importing approximately R21 billion in the third quarter of 2015. United State of America (USA) is the largest importer with a share of 94 per cent of the SA exports to the region. The main commodities were, namely: vehicle and aircraft, machinery, products of iron and steel, mineral and chemical products constituting about 87 per cent of total. Australia and New Zealand imported R3.8 billion commodities from South Africa in the third quarter of 2015. The most bought goods in this region are mainly vehicles and aircraft (36 per cent), chemical products (16 per cent) and machinery (11 per cent). Figure 14: Key regions South Africa’s export partners by region Key regions: South African export partners 80 Exports (R'billion) 70 SADC Australia and New Zealand European Union Eastern Asia NAFTA 60 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011 2012 2013 2014 2015 Quarter Source: Data & Graph-the dti South Africa’s Imports Partners by regions The imports from the European Union increased from R 46 billion in the first quarter of 2007 to R85 billion in the third quarter of 2015. Almost 40 per cent of the goods imported were from Germany, 10 per cent from the United Kingdom and 8 per cent from Italy, making the three countries account for 58 per cent of total imports in the third quarter of 2015.This increase can be attributed to the growth in the imports of machinery (4 per cent), and vehicle and aircraft (15 per cent). South Africa imported goods amounting to R72.7 billion from Eastern Asia in the third 24 

25) the dti Annual Performance Plan 2016-2019 quarter of 2015. About 75 per cent of the goods were imported from China followed by Japan with 18 per cent. The most imported goods were machinery (45 per cent), vehicles aircraft and vessels (9 per cent), products of iron and steel (7 per cent). The imports from Western Asia increased from R11.9 billion in the first quarter of 2007 to R20 billion in the third quarter of 2015. The imports from South-eastern Asia have increased significantly from R9 billion in the first quarter of 2007 to R20 billion in the third quarter of 2015. South-central Asia is the fifth largest exporter to South Africa with approximately R16 billion in the third quarter of 2015. Figure 15: Key regions South Africa’s imports partners by region Key regions: South Africa Import partners by region 90 European Union 80 Eastern Asia Western Asia South-central Asia South-eastern Asia Imports (R'billion) 70 60 50 40 30 20 10 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011 Source: Data & Graph-the dti 6.2 2012 2013 2014 2015 Quarter Performance delivery environment The Department will continue to execute its mandate, which is to create an enabling environment for the growth and competitiveness of manufacturing and productive sectors to support job creation and transformation. This will be achieved through the implementation of a new iteration of the annual three year rolling IPAP, thereby solidifying the manufacturing and other value adding sectors with increased value in both the domestic and export markets. One of the key priorities of the Department is the implementation of the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003) (B-BBEE Act) including the trumping clause. The phased-in operationalisation of the BEE Commission will aid in the effective implementation of one of the key provisions of the B-BBEE Act, 2003 such as receiving investigations of fronting cases. The advocacy and education of the revised codes will receive focus with regards to facilitating FDI for multinationals operating in SA, sectoral transformation and regulation of the BEE verification professionals. 25 

26) the dti Annual Performance Plan 2016-2019 The Department will also focus on spearheading the implementation of the Black Industrialists Programme. The Programme is part of government’s broad industrialisation activities to expand the industrial base and promote sustainable economic growth and transformation, through support to black-owned entities in the manufacturing and related high value-adding services sectors. This implementation will involve collaboration with development finance institutions and state-owned companies, including the private sector, in order to facilitate access to funding, markets and other business development services. Economic participation will further be broadened through the implementation of the SEZ Act 2014, (Act No.16 of 2014), which makes provision for procedures and processes for designation, management and operation of new and existing SEZ’s in provinces. During the 2015/16 financial year, the department embarked on several projects mandated by the Minister and Cabinet pertaining to the following areas of work: liquor policy, gambling policy and credit law. The liquor policy deals with, amongst others, harmonisation of and combating liquor regulation in all spheres of government, introducing strict liability for those who manufacture, distribute and trade illegally and allowing trading outlets in zoned areas. No new entrants will be allowed to trade within 500 metres of religious and educational institutions. The policy was approved for public consultation and it will be considered by Cabinet in the last quarter of 2015/16 financial year. The gambling policy will also be considered by Cabinet in March 2016. In the area of credit, interest rates cap regulations have been consulted upon and issued by Minister Davies. The Credit Life Insurance Regulations are being consulted upon with the public. Regulations regarding registration of all credit providers (big and small) have been approved by the Minister for wider consultation. Affordability assessment Regulations came into force in September 2015. the dti is working closely with the Department of Justice and Constitutional Development in order to encourage the Magistrates to apply the affordability assessment criteria before they issue garnishee orders. The Copyright Bill that deals with the protection of performers, artists and other copyright holders will be considered by Cabinet in March 2016. The financial crisis of 2008 resulted in world exports contracting by a massive 23% in 2009. This was followed by a pronounced recovery of 22% in 2010. This recovery was sustained in 2011 with growth in world exports of almost 19%. World trade however, slowed during 2012 and continues to be sluggish at the end of 2015. Developing economies exports, including South Africa’s, followed this post financial crisis pattern, although with a consistently better performance than exports from developed economies. Emerging countries such as China, India, as well as a number of Sub-Saharan African countries have increasingly become more important role players in South Africa’s export basket. Conversely, developed economies such as Germany, the UK, and the Netherlands have all lost their footing in South Africa’s export market. Africa is experiencing its longest income boom in 30 years, with GDP growth rates averaging about 5% annually over the past decade. Africa is predicted to have the world’s fastest-growing economy, during the next five years of any continent. Forecasts also show that seven of the world’s 10 fastest-growing economies will be African, with Ethiopia, Mozambique, Tanzania, Congo, Ghana, Zambia and Nigeria expected to expand by more than 6% a year until 2015. 26 

27) the dti Annual Performance Plan 2016-2019 As export diversification has many benefits such as reducing the country‘s vulnerability to external shocks, creating learning opportunities, and correlates with high rates of economic growth, it is essential, therefore, for South Africa to enhance its export composition by diversifying into new markets with exports as well as intensifying its present export basket. In this context, the dti will continue to leverage market opportunities to benefit South Africa’s economic development priorities in targeted markets and building on its Market Diversification Strategy to ensure that South Africa’s exports to conventional markets stabilise and ensure higher export growth to emerging markets. The Department has proposed an amendment to the budget programme structure through the MTEF 2016 process. The changes include the spilt of Programme 7: TISA into Trade Export South Africa (TESA) and the department’s eighth and new budget programme will be called Programme 8: Investment South Africa (ISA). Sub-Sahara Africa is poised to grow at an average rate of 5% over the next 5 years and South Africa has emerged as the ideal location for investors to launch their businesses into the continent. The focus of ISA will be to capitalize on this opportunity and to increase the quality and quantum of foreign direct and domestic investment into South Africa, while encouraging South African businesses to invest in the rest of Africa. Retaining existing investors and supporting their expansion has become critical in the current global economic climate. The unit will therefore play an active role in improving the investment climate by reducing red tape, unblocking and fast tracking processes through the rollout and management of a One Stop Shop in each province which will ensure ease of doing business. The purpose and the sub-programmes are covered under paragraph 12. It is important to note that the proposed programme is in-line with the government priorities as outlined in the State of the Nation Address (SONA). 6.3 Organisational environment During the three quarters of the 2015/16 financial year, the dti recruited 181 employees; i.e. 146 new appointments and 35 internal promotions were made. The vacancy rate has increased from 7.4% as at 30 September 2015 to 8.2% as at 31 December 2015 which was as a result of the number of terminations that exceeded the number of appointments as well as a high number of internal promotions. Furthermore, focus is also placed on the achievement of turnaround times, which necessitates the implementation of the dti Recruitment Standard Operating Procedures. Improving attraction of prime candidates will further be achieved through the communication of the dti Employer Value Proposition (EVP) and investing, as may be appropriate, in alternative sourcing methods such as electronic and social media. To ensure that the Human Resource Plan is implemented effectively, various initiatives to guarantee the availability of sufficient human resource capacity will be embarked upon. The following are priority areas: i. The resourcing of the Special Economic Zones and Economic Transformation (SEZ and ET) Programme. This Programme originated from the restructuring of the Broadening Participation Programme and the Incentive Development and Administration Programme (IDAD). The focus of the SEZ and ET Programme is on the establishment of SEZs and the revitalisation of the Industrial Parks via the newly created Project Management Unit. The Programme will also boost private sector 27 

28) the dti Annual Performance Plan 2016-2019 investment in the industrial sector through the provision of customised incentives for enterprises located in SEZs. ii. The introduction of dedicated support for Black Industrialists and supplier development are envisaged to ensure that Black Economic Empowerment (BEE) takes its rightful position as a lever of inclusive economic growth. The SEZ and ET Programme will be responsible for the support to Black Industrialists over the next three years via the establishment of a Black Industrialist Programme. iii. The resourcing of the division ISA is also a priority. This Unit originated from the split of the Trade and Investment South Africa Programme and will function as a one stop Inter-departmental clearing house addressing investor complaints and challenges. Funds have been reprioritised to provide for the key positions that are required for the above-prioritised areas. The cumulative turnover rate of 5.3% as at 31 December 2015 and annualised at 7.1% compares favourably with labour trends. The converse of the turnover rate is the retention rate which is at 92.9%. Succession and retention plans will continue to be developed and implemented across the Department. Developing the skills required to fulfill the strategic objectives of the Department has always been a priority. While various interventions are in place to attract skills from the private sector (e.g. bursaries to external candidates) focus will be on building and developing internal human resource capacity. Various interventions such as the Internship Development Programme and the Learnership Programme will continue. The bursary and scholarship programmes are other key interventions that aim to enhance the management and operational capabilities in the dti. Financial assistance is offered to the following officials or prospective employees:  Serving dti officials – completing part-time studies.  Prospective dti employees – completing full-time studies (usually for under- and post graduate studies). The design and development of training and development programmes is planned to ensure the upskilling of specialists not only within the department but also South Africans and other African nationalities within the economic environment. These include programmes such as the Economic Development and Industrial Policy Programme, Economic Diplomacy Programme, as well as the Black Industrialists Programme in collaboration with tertiary institutions and business. However, funding for these programmes (which include further development and providing bursaries) remains a challenge and funding will have to be reprioritised. The development and implementation of leadership development programmes to implement consistent leadership development initiatives and thus establish leadership strength will continue. This should allow for leadership stability with specific reference to situations where senior executives are deployed to assist with the establishment of newly created departments or public entities that result in senior managers being responsible for protracted acting periods in “vacant positions”. 28 

29) the dti Annual Performance Plan 2016-2019 The suite of Management development programmes includes the following: Accelerated Development Programme Advanced Management Development Programme •This programme aims to fastrack Middle Managers in the Public Service by equipping them with the skills and competencies required for SMS positions particularly women and the people with disability. •This programme provides Middle Managers with cutting-edge competencies and prepares them for the challenges of the SMS. Emerging Management Development Programme Executive Development Programme •This programme targets Junior Managers (levels 89) and provides them with management skills for effectiveness. •This programme is offered to SMS members and is based on the applicable competency framework. It consists of 6 compulsory and 4 electives modules. Project Khaedu •This is an innovative Action Learning programme, aimed at MMS and SMS members. Scholarships are mainly offered by foreign donor countries and can include financial assistance for full-time post graduate studies or short courses ranging in duration from five days to three months. Educational outreach programmes were also delivered by means of career fairs, schools visited, community outreach events and radio coverage. The afore-mentioned interventions for the end of the third quarter of the 2015/16 financial year reached approximately 2 650 students and learners. the dti’s youth development flagship initiative is the internship programme. During 2015/16 the dti recruited and placed 70 interns to provide opportunities to gain practical experience in the workplace and enhance their productivity potential. The 2015/16 intern intake has seen approximately 8 000 applications being received, indicating a keen interest in the dti as an employer of choice. 69 interns are expected for the 2016/17 financial year. As at 31 December 2015, 1 387 employees were trained. A representative workforce remains a priority on the transformation agenda of the Department. Targets such as women in senior management, the employment of people with disabilities and complying with the Economically Active Population (EAP) are the focal areas. Thus far, great strides have been made to appoint women in senior management positions and their representation stood at 48% as at 31 December 2015. The key challenge is that when opportunities become available for pipeline middle managers these do not result in appointments due primarily to inadequate preparation by staff, a matter that will be attended to in the ensuing year. The Department is doing relatively well with regard to People with Disabilities. The representation was 2.98% as on 31 December 2015. A focal area is to have a fair distribution across all salary levels. the dti continues to maintain a healthy working relationship with organised labour with a view to promoting good relations between employer and employees. Some of the matters of common interest discussed at the 29 

30) the dti Annual Performance Plan 2016-2019 Departmental Bargaining Chamber are various human resources policies, and redesigning of organisational structures. In terms of grievances, the Department has seen an increase in the number of grievances that were handled. There were 61 grievances as at 31 December 2015. These are mainly due to the majority of cases revolving around stringent measures implemented for non-compliance to the performance management system as well as dissatisfaction around the outcomes of the recruitment processes. The revised value proposition of the dti relating to women and youth-led economic involvement is designed to enhance economic transformation by addressing the persistent limitations and exclusions in the economy and their obvious impacts. Gender and designated groupings the dti’s plan is to produce a Single Inclusive Mainstreaming Framework (SIMF) supported by handbooks for the various designated groupings. The idea is not to reinvent these policies but rather to infuse them with vigour through well-designed implementable and viable proposals for increased participation of the targeted beneficiaries in the mainstream economy. the dti acknowledges the August 2015 Report on “The Status of Women in the South African Economy” published by the Department of Women. There is a clear reference to inherent hindrances that require deliberate measures to enhance participation and graduation to higher value-chain levels of industrialisation for the designated groupings. The SIMF is thus examining best practice models that will assist in addressing the priority barriers to entry, linkages, poor access to markets and information as well as enhances the competitiveness of the supply chain and future opportunities for match-making exercises where necessary, for the designated groupings. Government continues to step up its role in expanding the infrastructure of the state-owned enterprises and leveraging assets to promote urban and industrial development as well as create investment and market access opportunities both domestically and internationally. The SIMF also proposes to drive incubation and access to information through one-stop points within SEZ and Industrial Parks across the country. Certification and affirmation of women-owned businesses and factories and products is also a main pillar of the SIMF geared towards positioning women, youth and persons with disabilities as preferred suppliers for government and SOEs in line with B-BBEE and Black Industrialists requirements for participation. Furthermore, the dti intends to maintain databases of individuals accredited for reliability, integrity and excellence as well as those who have acquired the designated skills. The databases for opportunities to supply are in place and are continuously updated but will now be scrutinised to eliminate any skewed reflections. the dti is currently running initiatives under Programs 5: Consumer and Corporate Regulation such as training for Board members linked to women mentorship support for leadership in decision making positions. Program 1: Administration will identify procurement and supply chain processes to have databases. The SIMF also recommends the leveraging of the capital expenditure and government-wide procurement to stimulate demand 30 

31) the dti Annual Performance Plan 2016-2019 and support of the local manufacturing base of women and youth-led factories through effective technical advice at location. Provision of access to IT and ICT services through partnership initiatives with private sector like the Techno-girl and the Take-a-girl child initiative will also receive prioritisation for mainstreaming to ensure inclusive budgeting, implementation and reporting. The SIMF is also pursuing the design of a much more disaggregated monitoring and evaluation tool to guide reporting on the designated groupings in the economy to ensure timeous reporting and alignment with government –wide planning and monitoring processes to promote advocacy and lobbying as well as a sustained voice of the designated groupings whilst enhancing the outreach of government efforts and initiatives. 7 Legislative and Other Mandates the dti’s work is governed by a broad legislative framework, as outlined below: Table 1: Key Legislation Name of Act Purpose 1. Abolition of the Fuel Research To repeal the Fuel Research Institute and Coal Act, 1963, and Institute and Coal Act, 1983 (Act provide for the vesting of the assets and liabilities, and the transfer of No. 30 of 1983) the employees of the Fuel Research Institute in and to the Council for Scientific and Industrial Research (CSIR). 2. Accreditation for Conformity To provide for an internationally recognised and effective Assessment, Calibration and accreditation and monitoring system for the Republic of South Africa Good Laboratory Practice Act, by establishing SANAS as a juristic person; to recognise SANAS as 2006 (Act No. 19 of 2006) the only accreditation body in the Republic for the accreditation of conformity assessment and calibration as well as monitoring of good laboratory practice. 3. To regulate the alienation of land in certain circumstances and to (Act No. 68 of 1981) provide for matters connected therewith. Broad-Based Black Economic To establish a legislative framework for the promotion of black Empowerment Act, 2003 (Act economic empowerment; to empower the Minister to issue Codes of No. 53 of 2003) 4. Alienation of Land Act, 1981 Good Practice and publish transformation charters; to establish the Black Economic Empowerment Advisory Council; and to provide for matters connected therewith. 5. Companies Act, 2008 To provide a new legislative framework for the incorporation, (Act No. 71 of 2008) registration and management of companies; to establish a Companies and Intellectual Property Commission (CIPC) and Companies Tribunal; and to provide for matters connected therewith. 6. Consumer Protection Act, 2008 To promote a fair, accessible and sustainable marketplace for (Act No. 68 of 2008) consumer products and services, and for that purpose to establish national norms and standards relating to consumer protection; to provide for improved standards of consumer information; to prohibit certain unfair marketing and business practices; to promote responsible consumer behaviour; to promote a consistent legislative and enforcement framework relating to consumer transactions and 31 

32) the dti Annual Performance Plan 2016-2019 Name of Act Purpose agreements; to establish the National Consumer Commission (NCC); and to repeal certain laws. 7. Agency in the International Sale of Goods adopted by the 1986 International Institute of the United Nations Organisation for the (Act No. 4 of 1986) unification of Private Law. Copyright Act, 1978 To regulate copyright in respect of, inter alia, artistic works, dramatic (Act No. 98 of 1978) works, computer programs, musical and literary works. Counterfeit Goods Act, 1997 To strengthen prohibitions on trade in counterfeit goods; confer (Act No. 37 of 1997) 9. To provide for the application in the Republic of the Convention on International Sale of Goods Act, 8. Convention on Agency in the powers on inspectors and the police to enter and search premises, with and without a warrant; and confer powers on Customs and Excise to seize and detain suspected counterfeit goods. 10. Designs Act, 1993 To consolidate the law relating to designs; to provide for the (Act No. 195 of 1993) registration of designs; and to delineate the rights pertaining thereto. 11. Export Credit and Foreign To promote trade with countries outside the Republic by providing for Investments Insurance Act, the insurance, on behalf of the Government of the Republic, of 1957 (Act No. 78 of 1957) contracts in connection with export transactions, investments and loans or similar facilities connected with such transactions. 12. Expropriation (Establishment of To provide for the expropriation of land and the taking of the right to Undertakings) Act, 1951 (Act use land temporarily for or in connection with the objects or No. 39 of 1951) undertakings of national importance. 13. Housing Development Schemes To regulate the alienation of certain interests in housing development for Retired Persons Act, 1988 schemes for retired persons and to provide for matters connected (Act No. 65 of 1988) therewith. 14. Intellectual Property Laws To provide for the integration of intellectual property rights subsisting Rationalisation Act, 1996 (Act in the ex-TBVC (Transkei, Bophuthatswana, Venda and Ciskei) into No. 107 of 1996) the national system; to extend the South African intellectual property rights legislation throughout the Republic; and to repeal certain intellectual property laws. 15. International Convention for To provide for the application in the Republic of the International Safe Containers Act, 1985 (Act Convention for Safe Containers so as to maintain a high level of No. 11 of 1985) safety of human life in the handling, stockpiling and transporting of containers. 16. Legal Metrology Act, 2014 (Act No. 9 of 2014) To provide for the administration and maintenance of legal metrology technical regulations in order to promote fair trade and protect public health and safety and the environment; and to provide for matters connected therewith. 17. Liquor Act, 2003 (Act No. 59 of 2003) To establish national norms and standards to maintain economic unity within the liquor industry; to provide for essential national standards and minimum standards required for the rendering of services; to provide for measures to promote co-operative government in the area of liquor regulation; and to provide for matters connected therewith. 32 

33) the dti Annual Performance Plan 2016-2019 Name of Act Purpose 18. Lotteries Act, 1997 To establish a National Lotteries Board and regulate and prohibit (Act No. 57 of 1997) 19. Manufacturing Development Act, 1993 (Act No. 187 of 1993) lotteries and sports pools. To establish the Manufacturing Development Board; to provide for the establishment of programmes for manufacturing development; and for matters incidental thereto. 20. Measurement Units and To provide for the use of measurement units of the International Measurement Standards Act, System of Units; to provide for the designation, keeping and 2006 (Act No. 18 of 2006) maintenance of national measurement units and standards; to provide for the establishment and functions of the National Metrology Institute; and to provide for the repeal of certain laws. 21. Merchandise Marks Act, 1941 (Act No. 17 of 1941) To make provision concerning the marking of merchandise and of coverings in or with which merchandise is sold and the use of certain words and emblems in connection with business. 22. National Building Regulations To provide for the promotion of uniformity in the law relating to the and Building Standards Act, erection of buildings in the areas of jurisdiction of local authorities 1977 (Act No. 103 of 1977) and for the prescribing of building standards. 23. National Credit Act, 2005 (Act No. 34 of 2005) To promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit and improved standards of consumer information. 24. National Empowerment Fund Act, 1998 (Act No. 105 of 1998) To establish a trust to promote and facilitate ownership of incomegenerating assets by historically disadvantaged persons, particularly assets in state-owned enterprises made available at a discount as part of restructuring programmes; gives powers to the trust to enable it to establish sub-trusts and investment companies to promote black economic empowerment. 25. National Gambling Act, 2004 (Act No. 7 of 2004) To provide for the co-ordination of concurrent national and provincial legislative competence over matters relating to casinos, racing, gambling and wagering; and to provide for the continued regulation of those matters; for that purpose to establish certain uniform norms and standards applicable to national and provincial regulation and licensing of certain gambling activities; to provide for the creation of additional uniform norms and standards applicable throughout the Republic; to retain the National Gambling Board; to establish the National Gambling Policy Council; to repeal the National Gambling Act, 1996; and to provide for matters incidental thereto. 26. National Regulator for To provide for the administration and maintenance of compulsory Compulsory Specifications Act, specifications in the interest of public safety, health and 2008 (Act No. 5 of 2008) environmental protection; and to provide for the establishment of the National Regulator for Compulsory Specifications. 33 

34) the dti Annual Performance Plan 2016-2019 Name of Act Purpose 27. National Supplies Procurement To empower the responsible Minister to manufacture, produce, Act, 1970 acquire, hire or import goods; to acquire, hire or supply services; and (Act No. 89 of 1970) to exercise control over goods and services and the manufacture, production, processing and treating of goods; and to provide for the establishment and administration of a National Supplies Procurement Fund. 28. Non-Proliferation of Weapons of To provide for control over weapons of mass destruction and to Mass Destruction Act, 1993 establish a council to control and manage matters relating to the (Act No. 87 of 1993) proliferation of such weapons in the Republic; to determine its objectives and functions; and to prescribe the manner in which it is to be managed and controlled. 29. Patents Act, 1978 (Act No. 57 of 1978) 30. Performers Protection Act, 1967 (Act No. 11 of 1967) 31. Property Time Sharing Control Act, 1983 (Act No. 75 of 1983) 32. Protection of Businesses Act, 1978 (Act No. 99 of 1978) To provide for the registration and granting of letters, patents for inventions and for the rights of a patentee. To provide for the protection of the rights of performers of literary and artistic works. To regulate the alienation of time-sharing interests pursuant to property time-sharing schemes. To restrict the enforcement in the Republic of certain foreign judgments, orders, directions, arbitration awards and letters of request; to prohibit the furnishing of information relating to businesses in compliance with foreign orders, directions or letters of request. 33. Rationalisation of Corporate To provide that certain corporate laws shall apply throughout the Laws Act, 1996 (Act No. 45 of Republic of South Africa, to repeal certain corporate laws and 1996) provide for the retrospective incorporation of certain putative close corporations. 34. Registration of Copyright in Cinematograph Films Act, 1977 To provide for the registration of copyright in cinematograph films and for matters connected therewith. (Act No. 62 of 1977) 35. Share Blocks Control Act, 1980 (Act No. 59 of 1980) To control the operation of share block schemes, i.e. any scheme in terms of which a share, in any manner whatsoever, confers a right to or an interest in the use of immovable property. 36. Space Affairs Act, 1993 (Act No. 84 of 1993) To provide for the establishment of a Council to manage and control certain space affairs in the Republic; to determine its objects and functions; and to prescribe the manner in which it is to be managed and controlled. 37. To provide for the designation, development and management of 2014) [Enacted on 19 May SEZ; to establish an advisory board and a fund; to regulate the 2014, but has not yet issuing, suspension, withdrawal and transfer of permits; and to commenced] 38. SEZ Act, 2014 (Act No. 16 of provide for matters connected therewith. Standards Act, 2008 To provide for the development, promotion and maintenance of (Act No. 8 of 2008) standardisation and quality in connection with commodities and the rendering of related conformity assessment services; and for that 34 

35) the dti Annual Performance Plan 2016-2019 Name of Act Purpose purpose to provide for the continued existence of the SABS, as the peak national institution; to provide for the repeal of the Standards Act, 1993; and to provide for transitional arrangements. 39. Sugar Act, 1978 To consolidate and amend the laws relating to the sugar industry; (Act No. 9 of 1978) Temporary Removal of To empower the President to suspend temporarily laws or conditions, Restrictions on Economic limitations or obligations there under, if their application unduly Activities Act, 1986 (Act No. 87 40. and to provide for matters incidental thereto. impedes economic development or competition. of 1986) 41. Trade Marks Act, 1993 To consolidate the law relating to trademarks and to provide for the (Act No. 194 of 1993) registration of trademarks, certification of trademarks and collective trademarks and for the protection of rights relating thereto. 42. Unauthorised Use of Emblems To provide for the continued operation of certain laws relating to the Act, 1961 (Act No. 37 of 1961) use of certain emblems and representations, and to extend the scope of such laws. 8 Future Policy Development An extensive consultative process of the review of the Integrated National Export Strategy (INES) which is aimed at increasing South Africa’s capacity to export diversified and value added products to various global markets and strengthening the country’s export performance by enhancing the trade and business environment and improving the competitiveness of companies and sectors, has been completed. Following the consultative process, the Department is currently embarking on conducting research, assessing alternative public policy options and coordinating the call for evidence to a White Paper process on the proposed National Export Development and Promotion Bill in South Africa and to propose recommendations, including the institutional framework. The Socio-Economic impact assessment system (SEIAS) seeks to improve South Africa’s export environment and international competitiveness by advocating for the introduction of a legislative instrument such as the proposed Bill which would give weight and substance to the implementation of the export strategy. The SEIAS outcome will be followed by a National Consultative Workshop that will consolidate and report on all inputs from the stakeholders impacted by the proposed INES. Thereafter the consolidated INES will be launched. The Department will continue under the National Exporter Development Programme (integral part of INES) to develop a pool of export ready companies, enhancing the exporter base through the Global Exporter Passport Programme. An accredited Passport Programme by the South African Qualification Authorities will be rolled out across the country which will give impetus to the increase in the export of value-added products, realise employment gains and induce economic growth. 35 

36) the dti Annual Performance Plan 2016-2019 9 Recent Court Rulings 9.1 Gidani vs Minister of Trade and Industry and Three Others Gidani lodged an application in the Northern Gauteng High Court to review and set aside the decision of the Minister to appoint Ithuba (Pty) Ltd as the preferred applicant and to award the license agreement to Ithuba. The Court upheld the decision of the Minister to appoint Ithuba as the preferred applicant, but found the decision to award the license agreement to Ithuba to be irrational as the Minister could not have concluded that Ithuba had the financial resources to conduct the lottery in the light of the performance guarantee on the solvency of Ithuba, as well as the failure to insist on the payment of the required performance bond. The matter is remitted to the Minister for reconsideration and the order of invalidity was suspended for a period of one month. 9.2 Business Partners Limited vs Minister of Trade and Industry and others The first Respondent joined the Minister of Trade and Industry and filed a counter application seeking an order that the provision of section 133 of the Companies Act, 2008 (Act No 78 of 2008) (the Act) be declared unconstitutional and in conflict with the provisions of the Constitution, 1996 in so far as Section 133 of the Act precludes legal proceedings against a company or close corporation during business rescue proceedings, but does not preclude legal proceedings, alternatively insolvency proceedings against a guarantee or surety of the same company or close corporation during such business rescue proceedings. The Court dismissed the constitutional challenge of Section 133 with costs. 10 Financial Plan (Expenditure Estimates) The Department has proposed amendments to the budget programme structure through the MTEF 2016 process. The changes include the spilt of Programme 7: TISA into Trade Export South Africa and Programme 8: Investment South Africa. The purpose and the sub-programmes are covered under paragraph 12. It is important to note that the proposed programme is in-line with the government priorities as outlined in the SONA. Trade and Industry 2012/13 Audited outcome Administration International Trade and Economic Development Special Economic Zones and Economic Transformation Industrial Development Consumer and Corporate Regulation Incentive Development and Administration Trade Export South Africa Investment South Africa Total 2013/14 Audited outcome 2014/15 Audited outcome 695 900 686 918 699 945 114 911 121 018 124 108 227 458 231 221 235 120 1 518 071 1 591 182 1 775 154 223 568 256 698 281 122 4 387 296 5 101 863 5 176 717 237 923 306 648 329 638 29 716 7 434 843 32 370 8 327 918 36 37 959 8 659 763 2015/16 Adjusted Budget 768 304 116 576 89 704 1 964 268 296 385 5 827 591 386 762 48 254 9 497 844 2016/17 2017/18 2018/19 Medium-term estimates 736 625 756 453 788 840 126 383 123 288 127 858 108 282 108 971 112 488 1 735 679 1 814 083 1 776 411 313 525 326 895 345 727 6 922 407 5 772 956 5 095 242 336 539 339 386 333 624 48 077 10 327 517 48 448 9 290 480 51 195 8 631 385 

37) the dti Annual Performance Plan 2016-2019 Current payments Compensation of employees Salaries and wages Social contributions Goods and services Administrative fees Advertising Minor Assets Audit costs: External Bursaries: Employees Catering: Departmental activities Communication (GandS) Computer services Consultants: Business and advisory services Infrastructure and planning services Laboratory services Legal services (GandS) Science and technological services Contractors Agency and support/outsourced services Entertainment Fleet services (including government motor transport) Inventory: Fuel, oil and gas Inventory: Materials and supplies Inventory: Other supplies Consumable supplies Consumables: Stationery, printing and office supplies Operating leases Rental and hiring Property payments Transport provided: Departmental activity Travel and subsistence Training and development Operating payments Venues and facilities Interest and rent on land Interest (Incl. interest on unitary payments (PPP)) Rent on land Transfers and subsidies Departmental agencies and accounts Social security funds Departmental agencies (non-business entities) Higher education institutions Foreign governments and international organisations Public corporations and private enterprises Public corporations Subsidies on products and production (pc) Other transfers to public corporations Private enterprises Subsidies on products and production (pe) Other transfers to private enterprises Non-profit institutions Households Social benefits Other transfers to households Payments for capital assets Machinery and equipment Transport equipment Other machinery and equipment Software and other intangible assets Payments for financial assets Total economic classification 1 188 766 623 456 553 897 69 559 564 823 4 226 29 208 666 9 095 2 326 4 207 10 709 17 155 1 392 490 734 013 655 700 78 313 658 477 5 243 41 374 272 8 123 1 392 5 618 10 561 18 318 1 442 611 815 309 728 738 86 571 627 302 3 625 29 644 1 859 8 857 995 1 815 10 575 17 107 1 560 988 897 730 792 282 105 448 663 258 4 010 29 323 857 11 535 2 148 4 384 11 730 28 198 1 529 002 930 311 792 607 137 704 598 691 5 602 31 914 738 8 791 1 949 4 753 11 902 18 965 1 548 565 912 451 774 572 137 879 636 114 5 885 32 839 558 8 992 2 054 5 193 12 368 19 203 1 593 487 938 361 790 255 148 106 655 126 6 019 33 295 588 9 514 2 172 5 501 13 187 20 975 33 801 9 754 28 140 220 1 303 38 294 10 536 19 221 762 1 917 82 654 281 22 474 14 468 1 606 1 570 72 191 65 634 10 355 15 966 2 763 1 240 80 010 10 844 16 883 2 605 1 321 81 920 11 013 17 257 2 669 1 395 390 1 422 777 3 545 1 713 549 1 380 783 3 595 1 173 5 535 1 090 6 026 1 162 6 632 10 454 217 706 12 763 100 161 15 624 20 421 35 291 487 11 664 276 979 171 8 055 110 709 9 164 33 048 44 798 - 8 146 279 077 134 7 983 84 301 7 184 23 973 17 045 - 12 850 248 317 150 13 825 8 103 661 13 590 28 150 22 265 4 010 12 902 219 868 195 9 559 42 105 881 13 983 28 028 20 953 - 14 033 231 211 190 9 482 26 107 382 14 531 31 507 21 881 - 14 883 235 953 171 10 200 27 111 124 14 689 33 336 21 444 - 487 6 123 868 533 425 - 6 916 670 639 895 - 7 192 503 731 758 - 29 323 857 7 901 203 591 879 8 765 332 601 404 - 7 707 972 651 876 - 7 002 498 657 178 - 533 425 22 600 639 895 - 731 758 - 591 879 3 601 404 3 651 876 3 657 178 3 37 344 36 737 26 598 31 738 33 585 34 523 36 524 5 445 518 1 929 311 2 000 1 927 311 3 516 207 3 117 507 398 700 80 168 4 813 1 846 2 967 6 140 913 1 635 897 1 500 1 634 397 4 505 016 3 964 498 540 518 94 784 4 341 1 574 2 767 6 295 176 1 326 700 1 501 1 325 199 4 968 476 4 557 687 410 789 134 018 4 953 2 249 2 704 7 970 182 1 242 574 1 655 1 240 919 6 727 608 6 176 716 550 892 158 107 2 051 800 1 251 6 868 544 1 295 836 1 738 1 294 098 5 572 708 5 096 771 475 937 151 187 1 839 800 1 039 6 163 293 1 277 781 1 839 1 275 942 4 885 512 4 379 071 506 441 143 608 1 892 846 1 046 40 078 36 215 2 321 33 894 3 863 82 131 17 594 10 979 500 10 479 6 615 1 164 19 933 19 438 1 686 17 752 495 4 716 7 128 588 1 483 449 1 572 1 481 877 5 645 139 5 187 312 457 827 146 600 2 395 1 060 1 335 35 653 30 700 2 250 28 450 4 953 33 183 20 596 500 20 096 12 587 - 33 943 20 767 500 20 267 13 176 - 35 400 21 698 529 21 169 13 702 - 7 434 843 8 327 918 8 659 763 9 497 844 10 327 517 9 290 480 8 631 385 37 8 052 39 130 3 348 1 158 

38) the dti Annual Performance Plan 2016-2019 Expenditure analysis The work of the dti supports Outcome 4 (decent employment through inclusive growth), Outcome 7 (comprehensive rural development and land reform) and Outcome 11 (create a better South Africa, a better Africa and a better world) of government’s 2014-2019 medium term strategic framework. Further, the Department is committed to implementing the State President’s 2015 9-point plan to ignite growth and create jobs. The Department plays a critical role in facilitating three of these nine priority interventions: beneficiation through adding value to mineral resources; a more effective implementation of a higher impact IPAP; and encouraging private sector investment. These national priorities inform the Department’s spending priorities over the medium term, which are: increased investment facilitation, manufacturing incentives, supporting exports, and industrial spatial development. The Department will also focus on developing a programme to promote the long term sustainable development of black industrialists. The programme will accelerate the participation of black industrialists in the national economy, both in terms of their numbers and their influence. The Department will create multiple, diverse instruments for black industrialists to enter targeted industrial sectors and value chains that are aligned with government developmental priorities and specifically the IPAP. A related medium term priority for the department is the establishment of a B-BBEE Commission to enforce the BEE regulatory framework. The Commission will strengthen and foster collaboration between the public and private sector in safeguarding the objectives of the BBBEE Act, 2013. The Department’s compensation of employee’s budget has been decreased by R95.3 million for 2017/18 and R144.8 million for 2018/19 due to the Cabinet approved budget reductions to lower the national aggregate expenditure ceiling. The Department’s goods and services budget has been similarly reduced by R20 million for 2017/18 and R39 million for 2018/19. The reductions will adversely impact on the department’s ability to deliver on the set up of the B-BEE Commission, the Investment Promotion and Inter-Departmental Clearing House and also the implementation of the black industrialist programme. Increased investment facilitation The Department will manage the new Investment Promotion and Inter-Departmental Clearing House, a one-stop shop to facilitate investment, which is part of the 9-point plan. Government agencies involved in any aspect of investment, such as regulations, permits, licensing, infrastructure, and incentives, are to be brought into a single cohesive structure that coordinates and streamlines processes to provide prompt, efficient and transparent services to investors. Funds were reprioritised internally to provide partial funding for the new Investment South Africa programme. Additional funding for the full implementation of the programme will be sourced during the 2016 MTEF. Manufacturing incentives 58.1 per cent of the Department’s budget goes to its manufacturing development incentives, that is, R10.2 billion over the medium term in the IDAD programme. Spending in the programme declines at an average annual rate of 4.4 per cent over the medium term due to the ending of the economic competitiveness and support package in 2017/18. The Manufacturing Competitiveness Enhancement Programme (MCEP) provides enhanced manufacturing support aimed at encouraging manufacturers to upgrade their production facilities to sustain employment and 38 

39) the dti Annual Performance Plan 2016-2019 maximise value addition in the short to medium term. R45 billion in private sector investment over the medium term is expected to be leveraged through the programme. Due to significant demand, the funds in the MCEP are currently fully committed, as announced in October 2015, and subsequent openings for receiving of applications will be subject to the availability of funding. Supporting exports The Department will continue to support South African exports through the Export Marketing and Investment Assistance scheme, which strengthens the export capabilities of assisted companies, by providing marketing assistance to grow existing export markets and develop new ones, and facilitates foreign direct investment through trade missions, among other forms of support. The scheme receives an allocation of over R640.3 million over the medium term in the Manufacturing Incentive sub-programme of the IDAD programme. Industrial Infrastructure development The Department will continue with the implementation of its Special Economic Zones programme, which aims to attract investment in the existing industrial development zones and the newly proposed special economic zones. To date, seven industrial development zones have been designated- two in Eastern Cape and KwaZulu-Natal, one in Western Cape and one in Gauteng with the seventh zone designated in September 2015 in Free State. Currently, there are 33 capital projects at various stages of development in these zones. Bulk infrastructure and top structures are financed through the special economic zones allocation in the Infrastructure Investment Support sub-programme within the IDAD programme linked to specific investors located in the zones. The department envisages expanding the programme over the medium term by designating more zones, with a SEZ proposed in each province. The Department is engaged in preparatory investigations into the viability of designating four new special economic zones in Northern Cape, Limpopo, Gauteng and Mpumalanga over the medium term. These zones will focus on sectors such as renewable energy, ICT and mineral beneficiation in line with priorities articulated in the 9-point plan and the IPAP, among others. R3.4 billion over the medium term is allocated to the special economic zones programme, including an additional R1.5 billion in 2018/19 in the Infrastructure Investment Support sub-programme of the IDAD programme. The allocation for the special economic zones programme has been decreased by R320 million over the medium term as part of Cabinet’s decision to lower the national aggregate expenditure ceiling. This will reduce the number of infrastructure projects the programme can support. To further support a regionally diverse industrial economy, in 2016/17 the Department will start reviving and establishing industrial parks hubs in underdeveloped regions of South Africa through its cluster development programme which aims at promoting industrial sustainable economic growth and job creation. The programme is allocated R100 million over the medium term in the Infrastructure Investment Support sub-programme in the Incentive Development and Administration programme. The Department will continue to implement the critical infrastructure programme, which provides the required infrastructure for leveraging investment. The critical infrastructure programme is allocated R700.6 million over the medium term in the Infrastructure Investment Support sub-programme within the IDAD programme. 14 industrial parks requiring infrastructure support have been identified in Eastern Cape, Mpumalanga, KwaZulu-Natal, Free State and Western Cape. An allocation of R260 million over the medium term in the critical infrastructure programme is expected to result in 40 strategic infrastructure projects. 39 

40) the dti Annual Performance Plan 2016-2019 Part B: Programme and Sub-Programme 11 Strategic objectives the dti has identified three key strategic objectives to achieve the goals of the Department. Programmes 2, 3, 4, 6, 7 and 8 contribute in various ways to deepen industrialisation through increased growth in the manufacturing sector and are measured by the strategic objective “grow the manufacturing sector to promote industrial development, job creation, investment and exports”. Programmes 1 and 5 have specific strategic objectives “strengthened capacity to deliver on the dti mandate” and “improved conditions for consumers, artists and opening up of markets for new patents players”. Strategic Objective Objective Statement Baseline Link to Strategic Performance Goal Target indicator 1. Grow the Manufacturing sector to promote industrial development, job creation, investment and exports. Develop policies, strategies and programmes focussed on manufacturing and other value-adding sectors to enable competitiveness, job creation and sustained growth. Sixth iteration of IPAP Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation Grow the Manufacturing sector to promote industrial development, job creation, investment and exports. Percentage increase 2. Improved conditions for consumers, artists and opening up of markets for new Patents players To provide for harmonisation of IP laws, access to medicine and education, distribution of royalties and redress for artists Four bills developed Number of IP Bills developed for amendment and review of Intellectual Property laws Total Bills developed as legislation is amended 3. Strengthened capacity to deliver on the dti mandate Effective implementation and review of the Human Resource Plans to ensure that the department has requisite skill and capacity to fulfil its legislative mandate with a vacancy rate of 5%. Vacancy rate: 8.2% as at 31/12/2015 Create an enabling environment which is conductive to both consumers and business and remove the unnecessary regulatory burden which negatively impacts on the economy Create a professional, competitive and customer-focused working environment that ensures effective and efficient service delivery Percentage (%) vacancy rate 5% 40 

41) the dti Annual Performance Plan 2016-2019 12 Programmes and sub-programmes the dti comprises eight programmes, which are set out below: 12.1 a) Programme 1: Administration Purpose: Provide strategic leadership, management and support services to the Department, and conduct research on industrial development, growth and equity. b) Description of Sub-Programmes: (i) The Ministry provides leadership and policy direction to the dti; (ii) The Office of the Director-General (ODG) provides overall management of the dti’s resources; (iii) Corporate Services provides customer-centric and integrated resource solutions in human resource management, information and communication technology, legal services and facilities management; (iv) Office Accommodation is an allocation for accommodation services to the dti regional offices and ensures continued maintenance service; (v) Financial Management provides support to the dti, with respect to financial resource allocation and the management thereof, to aid the fulfilment of the Department’s goals and objectives; (vi) Marketing, Communication and Stakeholder Engagement facilitates greater awareness of the Department’s role and increases the uptake of its products and services through improvement of the customer touch points and ensuring strong customer relationship management; and creates consumer awareness and educational campaigns to ensure a meaningful understanding of the Department’s offerings; and (vii) Media and Public Relations ensure that the Department’s image is visible by improving media relations management and public relations activities. 41 

42) the dti Annual Performance Plan 2016-2019 Strategic objective 5-year Target Actual performance Strengthened capacity to deliver on the dti mandate Annual Adjusted HR Plans approved 2012/13 Annual Adjusted HR Plans approved 2013/14 Annual Adjusted HR Plans approved 2014/15 Annual Adjusted HR Plans approved 100% 100% Service Delivery Improvement Plan (SDIP) Implemented Public awareness platforms conducted Service Delivery Improvement Plan (SDIP) Implemented Public awareness platforms conducted 100% Creditors’ payments made in accordance with legislative requirements Service Delivery Improvement Plan (SDIP) Implemented Public awareness platforms conducted Performance Indicator/ Measure Percentage (%) of vacancy rate Actual performance 2012/13 8% 2013/14 9.4% Percentage (%) of staff turnover (unexpected) Percentage (%) of people with disability employed Percentage (%) of women employed in senior management positions Eligible creditors’ payments processed within legal timeframes 6% Estimated Performance 2015/16 Annual Adjusted HR Plans approved Medium Term Targets 2016/17 Annual Adjusted HR Plans approved 2017/18 Annual Adjusted HR Plans approved 2018/19 Annual Adjusted HR Plans approved 100% 100% 100% 100% 100% Service Delivery Improvement Plan (SDIP) Implemented Public awareness platforms conducted Service Delivery Improvement Plan (SDIP) Implemented Public awareness platforms conducted Service Delivery Improvement Plan (SDIP) Implemented Public awareness platforms conducted Service Delivery Improvement Plan (SDIP) Implemented Public awareness platforms conducted Service Delivery Improvement Plan (SDIP) Implemented Public awareness platforms conducted Medium Term Targets 2014/15 8.5% Estimated Performance 2015/16 8.2% 2016/17 5% 2017/18 5% 2018/19 5% 6.8% 5.2% 1.9% 6.8% 6.8% 6.7% 2.8% 2.7% 2.8% 2.98% 3.1% 3.1% 3.2% 43% 44% 47% 48% 50% 50% 50% All eligible creditors’ payments made within 30 days Payments to all eligible creditors made within 30 days All eligible creditors payments made within 30 days All eligible creditors’ payments made within 30 days All eligible creditors’ payments made within 30 days All eligible creditors’ payments made within 30 days All eligible creditors’ payments made within 30 days 42 Linkage to Government’s Outcome An efficient, effective and developmentoriented public service Linkage to Government’s Outcome An efficient, effective and developmentoriented public service 

43) the dti Annual Performance Plan 2016-2019 Performance Indicator/ Measure Implementation report for SDIP submitted to DPSA by 30 June 2016 Actual performance Estimated Performance 2015/16 2014/15 implementation report for SDIP submitted to DPSA Medium Term Targets 2012/13 2012-15 SDIP finalised and approved by the Minister 2013/14 Implementation report for 2012/13 financial year against the 20122015 SDIP has been approved and submitted to DPSA 2014/15 SDIP 2012-2015 implemented and a report for 2013/14 financial year produced and submitted to DPSA 2016/17 2015/16 Implementation report for SDIP submitted to DPSA by 30 June 2016 2017/18 2016/17 Implementation report for SDIP submitted to DPSA by 30 June 2017 2018/19 2017/18 Implementation report for SDIP submitted to DPSA by 30 June 2018 Number of multimedia awareness campaigns on key sectors of IPAP and the dti strategic projects Number of outreach engagements and exhibitions 16 27 26 multi-media campaigns implemented 20 22 22 132 (including events) 22 76 65 outreach engagements 79 32 outreach engagements 32 outreach engagements 32 outreach engagements 77 43 exhibitions 43 30 exhibitions 30 exhibitions Linkage to Government’s Outcome 30 exhibitions Quarterly Milestones for 2016/17 Performance Indicator/ Measure Reporting Period Annual Targets for 2016/17 Percentage (%) of vacancy rate Quarterly 5% 1st 5.5% 2nd 5.2% 3rd 5% 4th 5% Percentage (%) of staff turnover (unexpected) Quarterly 6.8% 1.7% 1.7% 1.7% 1.7% Percentage (%) of people with disability employed Percentage (%) of Women employed in senior management positions Quarterly 3.1% 2.8% 2.9% 3% 3.1% Quarterly 50% 48% 48.5% 49% 50% Eligible creditors’ payments processed within legal timeframes Implementation Report for SDIP submitted to DPSA by 30 June 2016 Quarterly All eligible creditors’ payments made within 30 days 2015/16 Implementation report for SDIP submitted to DPSA by 30 June 2016 All eligible creditors’ payments made within 30 days All eligible creditors’ payments made within 30 days All eligible creditors’ payments made within 30 days 2015/16 Implementation report for SDIP submitted to DPSA by 30 June 2016 Nil Nil All eligible creditors’ payments made within 30 days Nil Annual Quarterly Milestones 43 

44) the dti Annual Performance Plan 2016-2019 Performance Indicator/ Measure Reporting Period Annual Targets for 2016/17 Quarterly Milestones Number of multi-media awareness campaigns on key sectors of IPAP and the dti strategic projects Number of outreach engagements and exhibitions Quarterly 22 1st 5 2nd 6 3rd 6 4th 5 Quarterly 32 6 10 10 6 30 8 12 7 3 Reconciling performance targets with the Budget and MTEF Programme 1 Administration Rand thousand Subprogrammes 2012/13 Audited outcome 2013/14 Audited outcome 2014/15 Audited outcome 2016/17 Adjusted Budget 2017/18 2018/19 Medium-term estimates Ministry 27 319 27 321 27 644 31 801 33 989 36 315 38 197 Office of the Director General 59 578 69 727 96 334 98 642 114 600 122 915 129 311 401 564 425 949 444 841 477 505 421 242 425 145 441 227 2 177 - - 4 500 2 427 2 494 2 227 120 728 46 361 57 524 70 856 69 425 71 572 75 571 6 049 7 764 6 906 15 854 18 830 19 515 21 324 78 485 695 900 109 796 686 918 66 696 699 945 69 146 768 304 76 112 736 625 78 497 756 453 80 983 788 840 Corporate Services Office Accommodation Financial Management Media and Public Relations Marketing Communication and Stakeholder Relations Total 44 

45) the dti Annual Performance Plan 2016-2019 12.2 Programme 2: International Trade and Economic Development (ITED) a) Purpose: Build an equitable global trading system that facilitates development by strengthening trade and investment links with key economies and fostering African development, including regional and continental integration and development cooperation in line with the New Partnership for Africa’s Development. b) Description of Sub-Programmes (i) International Trade Development facilitates bilateral and multilateral trade relations and agreements. (ii) African Multilateral Economic Development facilitates multilateral African trade relations aimed at deepening regional integration. 45 

46) the dti Annual Performance Plan 2016-2019 Strategic objective 5-year Target Grow the manufacturing sector to promote industrial development, job creation, investment and exports Actual performance Trade negotiations concluded: EPA with the EU, SACU India PTA, SADC-EACCOMESA FTA (T-FTA) 2012/13 Status report produced on trade negotiations 2014/15 Status report produced on trade negotiations Progress reports produced Progress reports produced Progress reports produced Progress reports produced Progress reports produced Progress reports produced Progress reports produced - Africa regional development programme implemented Bilateral engagements with Rest of World 2013/14 Status report produced on trade negotiations Estimated Performance 2015/16 Status report produced on trade negotiations - - - Status reports produced on bilateral engagements with Rest of World Status reports produced on bilateral engagements with Rest of World Status reports produced on bilateral engagements with Rest of World Status reports produced on engagements in Global Fora Status reports produced on engagements in Global Fora Status reports on Global fora (e.g. BRICS, G20, AGOA) Performance Medium Term Targets 2016/17 Status report produced on trade negotiations 2017/18 Status report produced on trade negotiations 2018/19 Status report produced on trade negotiations Status reports produced on engagements in Global Fora Actual performance Estimated Indicator/ Medium-Term Targets Linkage to Government’s Outcome Create a better South Africa and a better world Linkage to Performance Government’s Measure 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Outcome Status report on negotiations aimed at enhancing preferential market access Report prepared on EPA, SACUIndia PTA and TFTA Status reports produced on progress Status report prepared outlining areas concluded in the T-FTA negotiations aimed at enhancing preferential market access as well as forming the basis for the decision to launch the T-FTA with a built-in agenda on outstanding issues Status report produced Status report produced on progress towards conclusion of trade negotiations Status report produced on progress towards conclusion of trade negotiations. Awareness created amongst stakeholders on possible opportunities arising from agreements that have been ratified. Status report produced on progress towards conclusion of trade negotiations. Awareness created amongst stakeholders on possible opportunities arising from agreements that have been ratified Create a better South Africa and a better world 46 

47) the dti Annual Performance Plan 2016-2019 Performance Actual performance Estimated Indicator/ Measure Progress reports on five priority development areas in SACU, SADC FTA Status reports on bilateral engagements with Rest of World Medium-Term Targets Linkage to Performance 2012/13 2013/14 Reports prepared on: - SACU five point - SADC FTA - SDI infrastructure projects Progress reports produced - - 2014/15 RSA/SACU Tariff offer for the EAC approved and exchanged Progress report produced on implementation of agreed work programme and projects for priority development areas in SACU, SADC FTA, SDI infrastructure projects - Government’s 2015/16 2016/17 2017/18 2018/19 SADC: Annual status report on the implementation of the Trade Protocol produced. Progress reports produced on implementation of agreed work programme and projects for priority development areas in SACU, SADC FTA. Progress reports produced on implementation of agreed work programme and projects for priority development areas in SACU, SADC FTA. Progress reports produced on implementation of agreed work programme and projects for priority development areas in SACU, SADC FTA Status reports produced on bilateral engagements with Rest of World Status reports produced on bilateral engagements with Rest of World Status reports produced on bilateral engagements with Rest of World Status reports produced on engagements in Global Fora Status reports produced on engagements in Global Fora Status reports produced on engagements in Global Fora A media release on the accession of the Seychelles to the SADC Trade Protocol was produced. Work to construct a list of SA priority products to Zimbabwe, where Zimbabwe could relax measures that impact on South African exporters, is currently underway. - Status reports on Global fora (e.g. BRICS, G20, AGOA) 47 Outcome 

48) the dti Annual Performance Plan 2016-2019 Quarterly Milestones for 2016/17 Performance Indicator/ Measure Status report on negotiations aimed at enhancing preferential market access Progress reports on five priority development areas in SACU, SADC FTA, Reporting Period Annual Targets for 2016/17 Quarterly Status reports produced on progress towards conclusion of trade negotiations Quarterly Status reports on bilateral engagements with Rest of World Quarterly Status reports on Global fora (e.g. BRICS, G20, AGOA) Quarterly Milestones 1st Status reports produced on progress towards conclusion of trade negotiations 2nd Status reports produced on progress towards conclusion of trade negotiations 3rd Status reports produced on progress towards conclusion of trade negotiations Progress reports produced on implementation of agreed work programme and projects for priority development areas in SACU, SADC FTA. Status reports produced on bilateral engagements with Rest of World Progress reports produced on implementation of agreed work programme on development areas in SACU, SADC FTA Progress reports produced on implementation of agreed work programme on development areas in SACU, SADC FTA Progress reports produced on implementation of agreed work programme on development areas in SACU, SADC FTA Status reports produced on bilateral engagements with Rest of World Status reports produced on bilateral engagements with Rest of World Status reports produced on bilateral engagements with Rest of World Status reports produced on engagements in Global Fora Status reports produced on engagements in Global Fora Status reports produced on engagements in Global Fora Status reports produced on engagements in Global Fora Reconciling performance targets with the Budget and MTEF Programme 2 International Trade and Economic Development Rand thousand Subprogrammes 2012/13 Audited outcome 2013/14 Audited outcome 2014/15 Audited outcome 2016/17 Adjusted Budget 2017/18 2018/19 Medium-term estimates International Trade Development 81 898 94 913 89 947 101 572 108 276 104 791 African Multilateral Economic Development 33 013 26 105 34 161 15 004 18 107 18 497 20 131 114 911 121 018 124 108 116 576 126 383 123 288 127 858 Total 48 107 727 4th Status reports produced on progress towards conclusion of trade negotiations Progress reports produced on implementation of agreed work programme on development areas in SACU, SADC FTA Status reports produced on bilateral engagements with Rest of World Status reports produced on engagements in Global Fora 

49) the dti Annual Performance Plan 2016-2019 12.3 Programme 3: Special Economic Zones and Economic Transformation a) Purpose: Drive economic transformation and increase participation in industrialisation. b) Description of Sub-Programmes (i) Enterprise Competitiveness fosters and stimulates industrialisation and structural change through the development and deployment of technologies and skills development programmes. (ii) Equity and Empowerment promotes B-BBEE and the real growth of the economy through the Black Industrialists Programme. (iii) Spatial Industrial Economic Development (SEZs) promotes the regional economy towards a more spatially balanced economy through the development of policies, strategies and programmes, and SEZs, clusters and incubators among other things. 49 

50) the dti Annual Performance Plan 2016-2019 Strategic objective 5-year Target Grow the manufacturing sector to promote industrial development, job creation, investment and exports Implemented B-BBEE Amendment Act and Code of Good Practice for B-BBEE Actual performance Estimated Performance 2015/16 Report on the implementation of the B-BBEE Amendment Act and Regulations produced Medium Term Targets 2016/17 Report on the implementation of the B-BBEE Amendment Act and Regulations produced 2017/18 Report on the implementation of the B-BBEE Amendment Act and Regulations produced 2018/19 Report on the implementation of the B-BBEE Amendment Act and Regulations produced 2013/14 Report on the implementation of the B-BBEE Amendment Act and Regulations produced 2014/15 Report on the implementation of the B-BBEE Amendment Act and Regulations produced Black Industrialists development programmes implemented - - - - Black Industrialists development programmes implemented Black Industrialists development programmes implemented Black Industrialists development programmes implemented Revitalisation of industrial parks Performance Indicator/ Measure 2012/13 Report on the implementation of the B-BBEE Amendment Act and Regulations produced - - - - Revitalisation of industrial parks Revitalisation of industrial parks Linkage to Government’s Outcome Decent employment through inclusive growth Revitalisation of industrial parks Actual performance 2012/13 2013/14 2014/15 Number of implementation reports on the BBBEE Amendment Act and Regulations submitted for Minister’s approval B-BBEE Amendment Act assented to by the President Draft Business Case developed Number of new BIs supported in IPAP sectors and report produced - Submission of the business case for approval by DPSA and NT and report produced on the phased-in operationalisation of the B-BBEE Commission - Estimated Performance (Baseline) 2015/16 Medium-Term Targets Linkage to Government’s Outcome 2016/17 2017/18 2018/19 One One One Impact Assessment Report conducted on B-BBEE Amendment Act and report produced for Minister’s approval New Indicator 25 new BIs supported in IPAP sectors and report produced 30 new BIs supported in IPAP sectors and report produced 45 new BIs supported in IPAP sectors and report produced. Conduct impact assessment Position for the BBBEE Commissioner advertised - 50 Decent employment through inclusive growth 

51) the dti Annual Performance Plan 2016-2019 Performance Indicator/ Measure 2012/13 Number of implementation reports on the identified Industrial Parks submitted for Ministers approval Actual performance 2013/14 2014/15 Estimated Performance (Baseline) 2015/16 - - - Medium-Term Targets One Linkage to Government’s Outcome 2016/17 2017/18 2018/19 Two Industrial Parks strategy produced Report on impact evaluation assessments Quarterly Milestones for 2016/17 Performance Indicator/ Measure Reporting Period Annual Targets for 2016/17 Number of implementation reports on of the B-BBEE Amendment Act and Regulations submitted for Minister’s approval Annual One Number of new BIs in IPAP sectors and report produced Quarterly Number of implementation reports on the identified Industrial Parks submitted for Ministers approval Bi-Annually Quarterly Milestones 1st - 2nd - 3rd - 4th One 25 new BIs supported in IPAP sectors and report produced Nil 5 new BIs supported in IPAP sectors 10 new BIs in IPAP sectors 10 new BIs supported in IPAP sectors and report produced Two Nil One 0 One Reconciling performance targets with the Budget and MTEF Programme 3 Special Economic Zones and Economic Transformation Rand thousand Subprogrammes 2012/13 Audited outcome 2013/14 Audited outcome 2014/15 Audited outcome 2016/17 Adjusted Budget 2017/18 2018/19 Medium-term estimates Enterprise Competitiveness 175 813 188 764 189 106 19 343 26 187 27 984 29 606 Equity and Empowerment 14 188 12 953 20 578 26 910 35 731 32 112 31 211 Spatial Industrial Economic Development (Special Economic Zones) Total 37 457 29 504 25 436 43 451 46 364 48 875 51 671 227 458 231 221 235 120 89 704 108 282 108 971 112 488 51 

52) the dti Annual Performance Plan 2016-2019 12.4 a) Programme 4: Industrial Development Purpose: Design and implement policies, strategies and programmes to strengthen the ability of the manufacturing and other sectors of the economy, to create decent jobs and increase value addition and competitiveness in both the domestic and export markets. b) Description of Sub-Programmes (i) Industrial Competitiveness develops policies, strategies and programmes to strengthen the ability of manufacturing and other value-adding sectors to create decent jobs and increase value addition and competitiveness in domestic and export markets, as set out in the annual three-year rolling IPAP. (ii) Customised Sector Programmes develops and implements high-impact sector strategies focused on manufacturing and other value adding sectors to create decent jobs and increase value addition and competitiveness in domestic and export markets, as set out in the annual three-year rolling IPAP. 52 

53) the dti Annual Performance Plan 2016-2019 Strategic objective 5-year Target Grow the manufacturing sector to promote industrial development, job creation, investment and exports Annual rolling IPAP, aimed at facilitating a process of structural change involving upgrading and diversification to achieve sustained growth and job creation, implemented Instruments rolled out to facilitate strategic use of public procurement to enhance local productive capabilities Performance Indicator/ Measure New iteration of IPAP tabled in Cabinet annually Number of quarterly implementation reports on IPAP tabled at Minister’s Review Meetings per year Actual performance 2012/13 Annual rolling IPAP implemented 2013/14 Annual rolling IPAP implemented 2014/15 Annual rolling IPAP implemented Designation requests submitted to Minister per year Designation requests submitted to Minister per year Designation requests submitted to Minister per year Actual performance 2012/13 IPAP approved by Cabinet on 28 March 2012 and launched on 2 April 2012 2013/14 IPAP 2013/142015/16 was successfully approved by Cabinet in March 2013 and successfully launched on 4 April 2013 2014/15 IPAP 2015/16 endorsed by the Economic Cluster and awaiting Cabinet approval Four Four implementation reports tabled at IPAP Review Meeting in June 2013, September 2013, November 2013 and February 2014 Four implementation reports tabled at IPAP review meetings in July, October and November 2014 and in January 2015 Additionally, IPAP Annual Report prepared and approved by DG and Minister Estimated Performance 2015/16 Annual rolling IPAP implemented Medium Term Targets 2016/17 Annual rolling IPAP implemented 2017/18 Annual rolling IPAP implemented 2018/19 Annual rolling IPAP implemented Designation requests submitted to Minister per year Designation requests submitted to Minister per year Designation requests submitted to Minister per year Designation requests submitted to Minister per year Estimated Performance 2015/16 The Industrial Policy Action was tabled in by Cabinet in April 2015 and launched in May 2015 Medium-Term Targets 2016/17 Annual Rolling IPAP 2017/18 tabled in Cabinet by March 2017 2017/18 Annual Rolling IPAP 2018/19 tabled in Cabinet by March 2018 2018/19 Annual Rolling IPAP 2019/20 tabled in Cabinet by March 2019 Three Implementation reports on IPAP tabled at Minister’s Review Meetings per year Four implementation reports on IPAP tabled at Minister’s Review Meetings per year Four Implementation reports on IPAP tabled at Minister’s Review Meetings per year Four Implementation reports on IPAP tabled at Minister’s Review Meetings per year Annual Report for 2013/14 was tabled in Parliament in September 2014 53 Linkage to Government’s Outcome Decent employment through inclusive growth Linkage to Government’s Outcome Decent employment through inclusive growth 

54) the dti Annual Performance Plan 2016-2019 Performance Indicator/ Measure Number of designation requests submitted to Minister per year Actual performance 2012/13 Four 2013/14 Five designation reports completed and submitted 2014/15 1) Six sector/ product templates were submitted to NT for designation and awaiting publication Transformers Power line hardware and structures Building and construction materials Two-way radios Mining and construction vehicles Steel conveyance pipes Note: The Instruction Note for Power Pylons is being amended to include Power line hardware and structures Estimated Performance 2015/16 Two sector-specific action plans developed:i) Food map developed in three provinces (North West, Northern Cape, Western Cape) ii) Cosmetics personal care manufacturing where IDC has confirmed investment in Le-Sel Research and Prime Products with an acquisition 25.1% shareholding in the company 2) Published Instruction Notes • Working Vessels (boats) in August 2014, a R1.4 billion tender for the procurement of tug boats by Transnet was awarded to Southern African Shipyards. • Residential Electricity Meters 3) Amended Instruction Notes that were published • Rail rolling stock • Solar water heaters 54 Medium-Term Targets 2016/17 Four designation requests submitted to Minister per year 2017/18 Four designation requests submitted to Minister per year 2018/19 Four designation requests submitted to Minister per year Linkage to Government’s Outcome 

55) the dti Annual Performance Plan 2016-2019 Quarterly Milestones for 2016/17 Performance Indicator/ Measure Reporting Period Annual Targets 2016/17 Quarterly Milestones New iteration of IPAP tabled in Cabinet annually Annually Annual Rolling IPAP 2017/18 tabled in Cabinet by March 2016 Number of quarterly implementation reports on IPAP tabled at Minister’s Review Meetings per year Quarterly Four implementation reports on IPAP tabled at Minister’s Review Meetings per year Number of designation requests submitted to Minister per year Quarterly Four designation requests submitted to Minister per year 1st Launch the Annual Rolling IPAP 2016/17 2nd Nil 3rd Nil 4th Annual Rolling IPAP 2017/18 tabled in Cabinet by March 2017 One implementation report on IPAP tabled at Minister’s Review Meeting per quarter Nil One implementation report on IPAP tabled at Minister’s Review Meeting per quarter Two designation requests submitted to Minister per quarter One implementation report on IPAP tabled at Minister’s Review Meeting per quarter One designation request submitted to Minister per quarter One implementation report on IPAP tabled at Minister’s Review Meeting per quarter Reconciling performance targets with the Budget and MTEF Programme 4 Industrial Development Rand thousand Subprogrammes Industrial Competitiveness 2012/13 Audited outcome 2013/14 Audited outcome 2014/15 Audited outcome 2016/17 Adjusted Budget 2017/18 2018/19 Medium-term estimates 476 771 595 746 650 947 687 283 685 421 798 159 Customised Sector Programmes 1 041 300 995 436 1 124 207 1 276 985 1 050 258 1 015 924 997 154 Total 1 518 071 1 591 182 1 775 154 1 964 268 1 735 679 1 814 083 1 776 411 55 779 257 One designation request submitted to Minister per quarter 

56) the dti Annual Performance Plan 2016-2019 12.5 a) Programme 5: Consumer and Corporate Regulation Purpose: Develop and implement coherent, predictable and transparent regulatory solutions that facilitate easy access to redress and efficient regulation for economic citizens. b) Description of Sub-Programmes (i) Policy and Legislative Development develops policies, laws and regulatory frameworks. (ii) Enforcement and Compliance conducts trends analyses, impact assessments and market surveys, and monitors the effectiveness of regulation. (iii) Regulatory Services executes oversight of and transfers funds to the following regulatory agencies: the National Consumer Tribunal, the National Credit Regulator, the National Gambling Board, the National Consumer Commission, the Companies and Intellectual Property Commission and the Companies Tribunal. The department exercises oversight of, but does not transfer funds to: the National Lotteries Board, which regulates the lotteries sector and facilitates the distribution of lottery funds to worthy organisations that serve the public interest; and the Takeover Regulation Panel and the Financial Reporting Standards Council, which are responsible for regulating applicable transactions and issuing standards. 56 

57) the dti Annual Performance Plan 2016-2019 Strategic objective 5-year Target Improved conditions for consumers, artists and opening up of markets for new patents players Impact assessment of regulation on businesses and economic citizens Policies, Bills and Regulations to enforce fair business practices drafted Establishment of Trading Entities and Copyright Tribunal (repositioning) Performance Indicator/ Measure Number of Socio-Economic Impact Assessment System (SEIAS) reports (previously RIA reports) developed for Minister’s approval Actual performance Estimated Performance 2015/16 Impact assessment conducted Medium Term Targets 2016/17 Impact assessment conducted 2017/18 Impact assessment conducted 2018/19 Impact assessment conducted 2012/13 Impact assessment conducted 2013/14 Impact assessment conducted 2014/15 Impact assessment conducted Policies, Bills and Regulations, framework drafted Policies, Bills and Regulations, framework drafted Policies, Bills and Regulations, framework drafted Policies, Bills and Regulations, framework drafted Policies, Bills and Regulations, framework drafted Policies, Bills and Regulations, framework drafted Policies, Bills and Regulations, framework drafted - - - - Institutions/entities repositioned and established Institutions/entities repositioned and established Linkage to Government’s Outcome Decent employment through inclusive growth Institutions/entities repositioned and established Actual performance 2012/13 Final RIA report on the NCA produced. Second draft RIA report on Licensing of Businesses Bill finalised 2013/14 Liquor: RIA was finalised to incorporate the new policy Gambling: A draft RIA report was produced 2014/15 One RIA report on IP developed for Minister’s approval Estimated Performance 2015/16 3rd Draft report on the review of the NCA exemptions developed. Two RIA reports on liquor and gambling policies developed for approval 57 Medium Term Targets 2016/17 Two SEIAS reports on Companies, and Copyright/Performers Protection Amendment Acts developed for Minister’s approval 2017/18 Four SEIAS reports on regulations developed for Minister’s approval on Liquor, Gambling, Companies, and Copyright/ Performers Protection Amendment Acts 2018/19 Nil Linkage to Government’s Outcome Decent employment through inclusive growth 

58) the dti Annual Performance Plan 2016-2019 Performance Indicator/ Measure Actual performance Estimated Performance 2015/16 New Indicator Medium Term Targets 2016/17 Two evaluation reports on Consumer Protection Act (Exemptions and Industry Codes) and Companies Act (Cost of doing business) developed for Minister’s approval. 2017/18 One evaluation report on the Consumer Protection Act developed for Minister’s approval 2018/19 One evaluation report on the Lotteries/ National Credit Act Amendment Act developed for Minister’s approval. 2012/13 2013/14 2014/15 New indicator Number of monitoring reports on implementation of legislation developed for Minister’s approval - - New Indicator Second draft monitoring report on the impact of CCRD agencies was developed One monitoring report on implementation of legislation developed for Minister’s approval One monitoring report on implementation of legislation developed for Minister’s approval Number of policy frameworks developed for Minister’s approval Five draft policy frameworks developed for approval (IP, Licensing of Businesses Bill, Lotteries Act, Business Reform Registration and National Credit Act) Three policies developed for approval (Gambling Act, Liquor and IP) Three policy frameworks on liquor, gambling and Licensing of Businesses developed for Minister’s approval Desktop research conducted and 1st draft Policy Framework on legislative audit currently being developed One policy framework on legislative audit report developed for Minister’s approval (policy position on policies to retain or migrate) Nil One monitoring report on implementation of legislation developed for Minister’s approval Nil Number of Bills developed for Minister’s approval Three Bills developed for approval (Licensing of Businesses Bill, Lotteries, Business Reform Registration) Four Bills developed for approval: NCA Amendment Bill to be assented by President; Lotteries Amendment Bill assented; Licensing of Business Bill done and referred back for consultation and establishment of Task Team by Minister; Liquor Amendment Bill developed, but not yet approved Four Bills on Licensing of Businesses, Liquor Amendment, Gambling Amendment and Copyright Amendment developed, but not approved by Minister IP Policy completed and Cabinet memo submitted to Minister. Companies Amendment Act: Policy developed and proposed amendments on (2nd Draft) Bill in progress. Copyright Bill (Performers Protection Bill produced and analysis of public comments Two Bills on Companies Amendment and Copyright/Performers Protection Act) developed for Minister’s approval Nil Nil Linkage to Government’s Outcome Decent employment through inclusive growth Number of Evaluation reports developed for Ministers approval Companies Amendment Bill not developed 58 Decent employment through inclusive growth 

59) the dti Annual Performance Plan 2016-2019 Performance Indicator/ Measure Number of Regulations developed for Minister’s approval and published Actual performance 2012/13 Liquor Regulations developed and published for public comment 2013/14 CHAN 2014 Liquor Regulations developed and published Liquor Amendment Regulations developed and published Regulations for Protected Event status and Prohibited Marks (liquor) developed and published Labelling of meat regulations developed and published 2014/15 Lotteries Amendment Act Regulations and the National Credit Amendment Act and the Affordability Assessment Regulations approved by Minister and published IP Amendment Act (IK) Regulations developed, but not approved by Minister Number of business cases developed for approval by Minister - - SEZ Regulations and draft BEE Regulations developed - Number of institutions/Entities repositioned and established (National Liquor and Gambling Trading Entities) Nil Nil Nil Estimated Performance 2015/16 Four Regulations (1st drafts) on Liquor, Gambling, Licensing of Businesses and Copyright not developed. Draft liquor regulations in line with norms and standards developed. (0ver and above quarterly milestone). Draft amendments of regulations regarding exclusions register and re-certification of gambling machines developed. Medium Term Targets 2016/17 Four regulations on Liquor, Companies, Gambling and Copyright developed for Minister’s approval and published 2017/18 Seven regulations developed for Minister’s approval on IP (Trade Marks Act, Designs Act, Merchandise Act, Unauthorised Use of Emblems Act, Counterfeit Goods Acts, Patents Act and Performers Protection Act) and published 2018/19 Nil1 New indicator Two business cases (National Liquor and Gambling Trading Entities) developed for approval by Minister One business case on Copyright Tribunal developed for approval by Minister Nil New Indicator Two institutions/entities repositioned and established (National Liquor and Gambling Trading Entities) Nil Nil 59 Linkage to Government’s Outcome Decent employment through inclusive growth 

60) the dti Annual Performance Plan 2016-2019 Quarterly Milestones for 2016/17 Performance Indicator/ Measure Number of Socio-Economic Impact Assessment System (SEIAS) reports (previously RIA reports) developed for Minister’s approval Reporting Period Annual Targets for 2016/17 Quarterly Milestones 2nd 3rd First Draft SEIAS reports on Second Draft SEIAS reports on Companies and Companies and Copyright/ Copyright/Performers Performers Protection Protection Amendment Acts Amendment Acts developed developed Quarterly Two SEIAS reports on Companies and Copyright/Performers Protection Amendment Acts developed for Minister’s approval Number of Evaluation reports developed for Ministers approval Quarterly TOR for evaluations developed First draft evaluation reports on Consumer Protection Act (Exemptions and Industry Codes) and Companies Act (Cost of doing business) developed Second draft evaluation reports on Consumer Protection Act (Exemptions and Industry Codes) and Companies Act (Cost of doing business) developed Number of monitoring reports on implementation of legislation developed for Minister’s approval Quarterly Two evaluation reports on Consumer Protection Act (Exemptions and Industry Codes) and Companies Act (Cost of doing business) developed for Minister’s approval One monitoring report on implementation of legislation developed for Minister’s approval Consultations, research and collation of data conducted First draft monitoring report on implementation of legislation developed Second draft monitoring report on implementation of legislation developed Number of policy Frameworks developed for Minister’s approval Quarterly One Policy Framework on legislative audit report developed for Minister’s approval (policy position on policies to retain or migrate) Nil (1st Draft) Policy on legislative audit developed (2nd Draft) Policy on legislative audit developed Final Policy on legislative audit developed for Minister’s approval Number of Bills developed for Minister's approval Quarterly Nil Quarterly Two (1st Drafts) Bills on Companies Amendment and Copyright/Performers Protection Act developed for approval ( Four (First Draft) regulations on Liquor, Gambling, Copyright and Companies developed Two (2nd Drafts) Bills on Companies Amendment and Copyright/Performers Protection Act developed for approval Number of regulations developed for Minister’s approval and published Two Bills on Companies Amendment and Copyright/Performers Protection Act developed for Minister’s approval Four regulations on Liquor, Companies, Gambling and Copyright developed for Minister’s approval and published Two Bills on Companies Amendment and Copyright/Performers Protection Act finalised for Minister’s approval ( Final regulations on Liquor, Gambling, Copyright and Companies developed for Minister’s approval and published Number of business cases developed for approval by Minister Quarterly Two business cases (National Liquor and Gambling Trading Entities) developed for approval by Minister Nil Two (First Drafts) business cases (National Liquor Authority and Gambling Trading Entities ) developed Two (Second Drafts) business cases (National Liquor Authority and Gambling Trading Entities) developed Consultations conducted with DPSA and NT and other identified stakeholders like NGB, NLA, CIPC 1st Nil Nil 60 Four (Second Draft) regulations on Liquor, Gambling, Copyright and Companies developed 4th Final SEIAS reports on Companies and Copyright/Performers Protection Amendment Acts developed for Minister’s approval Final evaluation reports on Consumer Protection Act (Exemptions and Industry Codes) and Companies Act (Cost of doing business) developed for Minister’s approval Final monitoring report on implementation of legislation developed for Minister’s approval Final business cases for establishment of the National Liquor Authority and Gambling Trading Entities developed for approval by Minister 

61) the dti Annual Performance Plan 2016-2019 Performance Indicator/ Measure Number of institutions/Entities repositioned and established (National Liquor and Gambling Trading Entities ) Reporting Period Annual Targets for 2016/17 Annual Two institutions/entities repositioned and established (National Liquor and Gambling Trading Entities) 1st Nil Quarterly Milestones 3rd Nil 2nd Nil Reconciling performance targets with the Budget and MTEF Programme 5 Consumer and Corporate Regulation Rand thousand Subprogrammes 2012/13 Audited outcome 2013/14 Audited outcome 2014/15 Audited outcome 2016/17 Adjusted Budget 2017/18 2018/19 Medium-term estimates Policy and Legislative Development 14 421 19 206 17 639 17 747 21 427 23 834 26 063 Enforcement and Compliance 14 458 23 156 31 441 43 304 46 495 47 442 49 283 Regulatory Services 194 689 214 336 232 042 235 334 245 603 255 619 270 381 Total 223 568 256 698 281 122 296 385 313 525 326 895 345 727 61 4th Two institutions/ entities repositioned and established (National Liquor and Gambling Trading Entities) 

62) the dti Annual Performance Plan 2016-2019 12.6 a) Programme 6: Incentive Development and Administration Purpose: Stimulate and facilitate the development of sustainable and competitive enterprises, through the efficient provision of effective and accessible incentive measures that support national priorities. b) Description of Sub-Programmes (i) Broadening Participation Incentives provides incentive programmes that promote broader participation in the mainstream economy of businesses owned by individuals from historically disadvantaged communities and marginalised regions. (ii) Manufacturing Incentives provides incentives to promote additional investment in the manufacturing sector. The manufacturing investment cluster comprises the following programmes and schemes: the MCEP, the Capital Projects Feasibility Programme, Automotive Investment Scheme, the Export Marketing and Investment Assistance scheme, the sector Specific Assistance Scheme and the Section 12I tax incentive scheme. (iii) Services Investment Incentives provides incentive programmes that promote increased investment and job creation in the services sector. The programmes include the Business Process Services programme, and the Film and Television Production Incentive Support Programme for South African and foreign productions. (iv) Infrastructure Investment Support provides grants for two industrial infrastructure initiatives; the SEZs and Critical Infrastructure Programme, which are aimed at enhancing infrastructure and industrial development, and increasing investment and exports of value added commodities. (v) Product and Systems Development reviews, monitors and develops incentive programmes to support the IPAP, and develops sector strategies to address market failures. (vi) Strategic Partnership and Customer Care facilitates access to targeted enterprises by reviewing the success of incentive schemes and improving such schemes. 62 

63) the dti Annual Performance Plan 2016-2019 Strategic objective 5-year Target Actual performance Estimated Performance 2015/16 Private Sector Investment leveraged Medium Term Targets Grow the manufacturing sector to promote industrial development, job creation, investment and exports Private Sector Investment leveraged across all incentives 2012/13 Private Sector Investment leveraged 2013/14 Private Sector Investment leveraged 2014/15 Private Sector Investment leveraged 2016/17 Private Sector Investment leveraged 2017/18 Private Sector Investment leveraged 2018/19 Private Sector Investment leveraged Jobs supported Jobs supported Jobs supported Jobs supported Jobs supported Jobs supported Jobs supported Jobs supported Industrial skills upgraded - - - New target Industrial skills upgraded Industrial skills upgraded Industrial skills upgraded Industrial Decentralisation facilitated - - - New target Strategic infrastructure projects approved for SEZ/industrial parks Strategic infrastructure projects approved for SEZ/industrial parks Facilitating Transition towards low emission and climate resilient economy Export revenue leveraged - - - New target Strategic infrastructure projects approved for SEZ/industrial parks Value of Greener investment Value of Greener investment Value of Greener investment - - Value of projected export revenue from projects approved Value of projected export revenue from projects approved - - Value of projected export revenue from projects approved Value of Innovative ventures supported from approved enterprises Value of projected export revenue from projects approved Risk financing for innovative enterprises Value of projected export revenue from projects approved - Value of Innovative ventures supported from approved enterprises Value of Innovative ventures supported from approved enterprises New target 63 Linkage to Government’s Outcome Decent employment through inclusive growth 

64) the dti Annual Performance Plan 2016-2019 Performance Indicator/ Measure Actual performance 2012/13 Value (Rand) of projected investments to be leveraged from projects/ enterprises approved Projected number of new jobs supported from projects/enterprises approved Projected number of jobs to be retained from approved enterprises Value (Rand) of support provided to upgrade Industrial skills from approved projects Number of strategic infrastructure projects approved for SEZ/industrial parks Value (Rand)of Greener investment approved 2013/14 2014/15 Estimated Performance 2015/16 R14.4bn Medium-Term Targets Linkage to Government’s Outcome 2016/17 R20 bn 2017/18 R15bn 2018/19 R10bn R29.8bn R40bn R20.4bn 22 085 15 079 12 568 6 850 3 600 3 000 3 000 33 551 106 539 33 551 28 000 3 600 3 000 3 000 - - - New indicator R100m R100m R100m - - - New indicator 15 10 15 - - - New indicator R800m R300m Decent employment through inclusive growth -** Value (Rand) of R1.3bn R541.4m R3.7bn R2bn R800m R600m R600m projected export revenue from projects approved Value (Rand) of - New indicator R50m R60m R65m innovative venture supported from approved enterprises *The strategic objective is being measured with a different set of performance indicators when compared to the previous financial year. While the performance of each incentive can be tracked for budget purposes, the new indicators were developed to improve measurability and efficiency of the indicators. ** The 12I programme will be coming to an end in 2017/18. 64 

65) the dti Annual Performance Plan 2016-2019 Quarterly Milestones for 2016/17 Performance Indicator/ Measure Reporting Period Annual Targets for 2016/17 Quarterly Milestones Value (Rand) of projected investments to be leveraged from projects approved Projected number of new jobs supported from enterprises approved Projected number of jobs to be retained from approved enterprises Value (Rand) of support provided to upgrade Industrial skills from approved projects Number of strategic infrastructure projects approved for SEZ/industrial parks Value (Rand) of Greener investment approved Value (Rand) of projected export revenue from projects approved Value (Rand) of Innovative venture supported from approved enterprises Quarterly R20 bn 1st R4bn 2nd R6bn 3rd R4bn 4th R6bn Quarterly 3 600 600 1 100 900 1 000 Quarterly 3 600 600 1 100 900 1 000 Quarterly R100m R25m R35m R10m R30m Quarterly 15 5 3 3 4 Quarterly R800m R100m R200m R300m R200m Quarterly R800m R150m R300m R150m R200m Quarterly R50m R10m R8m R15m R17m Reconciling performance targets with the Budget and MTEF Programme 6 Incentive Development and Administration Rand thousand Subprogrammes Broadening Participation Incentives Manufacturing Incentives 2012/13 Audited outcome 2013/14 Audited outcome 2014/15 Audited outcome 2016/17 Adjusted Budget 2017/18 2018/19 Medium-term estimates 85 325 129 317 2 369 61 555 65 010 68 333 72 296 2 954 767 3 338 623 3 612 338 3 925 526 4 490 875 4 051 610 2 693 294 Services Investment Incentives 427 027 564 364 728 118 838 718 615 254 646 560 684 061 Infrastructure Investment Support 893 649 1 038 639 801 392 966 309 1 711 642 965 000 1 601 734 Product and Systems Development 12 701 13 000 14 985 15 942 18 192 19 387 20 512 Strategic Partnership and Customer Care 13 827 17 920 17 515 19 541 21 434 22 066 23 345 4 387 296 5 101 863 5 176 717 5 827 591 6 922 407 5 772 956 5 095 242 Total 65 

66) the dti Annual Performance Plan 2016-2019 12.7 a) Programme 7: Trade Export South Africa Purpose: Increase export capacity through an effectively managed network of foreign trade offices and strategies for targeted markets. b) Description of Sub-Programmes (i) African Bilateral Economic Development facilitates bilateral African trade relations aimed at deepening regional integration. (ii) Export Promotion and Marketing promotes exports of South African value-added goods and services to increase market share in targeted high-growth markets and sustain market share in traditional markets. (i) Trade Export South Africa Executive Management Unit promotes trade, and administers and provides corporate services to the department’s foreign office network of 27 foreign economic representatives in 43 countries to enable South African businesses to access global markets. (ii) Export Development and Support manages the National Exporter Development Programme (NEDP), which is designed to contribute to positioning South Africa as a reliable trade partner and improve and expand the country’s exporter base. 66 

67) the dti Annual Performance Plan 2016-2019 Strategic objective 5-year Target Grow the manufacturing sector to promote industrial development, job creation, investment and exports Increased manufactured exports under EMIA Performance Indicator/ Measure Value (Rand) of exports facilitated Actual performance 2012/13 Export sales facilitated 2013/14 Export sales facilitated 2014/15 Export sales facilitated Actual performance 2012/13 R3.9 bn Estimated Performance 2015/16 Export sales facilitated Medium Term Targets 2016/17 Export sales facilitated 2017/18 Export sales facilitated Estimated Performance 2013/14 R3.4 bn 2014/15 R43.8 bn 2016/17 R3.5 bn 2018/19 Export sales facilitated Medium-Term Targets 2015/16 R558.628 m Linkage to Government’s Outcome Create a better South Africa and a better world Linkage to Government’s Outcome 2017/18 R4 bn 2018/19 R4.5 bn Create a better South Africa and a better world Quarterly Milestones for 2016/17 Performance Indicator/ Measure Reporting Period Annual Targets for 2016/17 Value (Rand) of exports facilitated Quarterly R3.5 bn Quarterly Milestones 1st R250m 2nd R1.1 bn Reconciling performance targets with the Budget and MTEF 67 3rd R1.3bn 4th R850 m 

68) the dti Annual Performance Plan 2016-2019 Programme 7 Trade Export South Africa Rand thousand Subprogrammes 2012/13 Audited outcome 2013/14 Audited outcome 2014/15 Audited outcome Adjusted Budget 2016/17 2017/18 2018/19 Medium-term estimates African Bilateral Economic Development 17 794 18 548 18 686 - 21 167 22 546 Export Promotion and Marketing 31 931 18 714 39 142 36 950 40 294 41 800 42 912 180 365 243 392 264 118 338 667 257 351 257 262 247 443 Trade Export South Africa Executive Management Unit Export Development and Support Total 23 148 7 833 25 994 7 692 11 145 17 727 17 778 20 121 237 923 306 648 329 638 386 762 336 539 339 386 333 624 68 

69) the dti Annual Performance Plan 2016-2019 12.8 a) Programme 8: Investment South Africa Purpose: support foreign direct investment flows and domestic investment by providing a one-stop shop for investment promotion, investor facilitation and aftercare support for investors. b) Description of Sub-Programmes (i) Investment Promotion facilitates the increase in the quality and quantity of foreign direct investment, and domestic and outward investment by providing investment attraction, targeted lead generation and recruitment support. (ii) Investment and Inter-Departmental Clearing House promotes and facilitates investment and provides support services to the investment and inter-departmental clearing house South Africa. This sub-programme also provides a specialist advisory service and fast tracks, unblocks and reduces red tape for investors. (iii) Investment Support and Aftercare provides specialist advisory services through research, information marketing, after care and policy advocacy to facilitate investment, retain and expand existing investment. 69 

70) the dti Annual Performance Plan 2016-2019 Strategic objective 5-year Target Actual performance Grow the manufacturing sector to promote industrial development, job creation, investment and exports Investment facilitation in targeted sectors 2012/13 Investment projects facilitated in pipeline Performance Indicator/ Measure Value (Rand) of investment projects facilitated in pipeline 2013/14 Investment projects facilitated in pipeline Estimated Performance 2015/16 Investment projects facilitated in pipeline 2014/15 Investment projects facilitated in pipeline Actual performance Medium Term Targets 2016/17 Investment projects facilitated in pipeline Estimated Performance 2012/13 R53.5 bn 2013/14 R60.5 bn 2016/17 R50 bn Linkage to Government’s Outcome 2017/18 R45 bn Quarterly Milestones for 2016/17 Performance Indicator/ Measure Reporting Period Annual Targets for 2016/17 Value (Rand) of investment projects facilitated in pipeline Quarterly R50 bn Quarterly Milestones 1st R12.5bn 2nd R12.5bn 3rd R12.5bn 4th R12.5bn Reconciling performance targets with the Budget and MTEF Programme 8 Investment South Africa Rand thousand Subprogrammes 2012/13 Audited outcome 2013/14 Audited outcome 2014/15 Audited outcome Adjusted Budget 2016/17 2017/18 2018/19 Medium-term estimates Investment Promotion 10 623 25 479 30 697 38 155 40 055 40 147 Investment and Inter-Departmental Clearing House 18 395 6 487 7 120 9 863 4 011 4 150 4 472 698 404 142 236 4 011 4 151 4 471 29 716 32 370 37 959 48 254 48 077 48 448 51 195 Investment Support and After Care Total 2018/19 Investment projects facilitated in pipeline Medium-Term Targets 2015/16 R31.9 bn 2014/15 R2. 779 bn 2017/18 Investment projects facilitated in pipeline 70 42 252 Linkage to Government’s Outcome Create a better South Africa and a better world 2018/19 R50bn Create a better South Africa and a better world 

71) the dti Annual Performance Plan 2016-2019 Part C: Links to Other Plans 13 Asset Management Plan Departmental assets are managed in accordance with policies issued by NT and an asset register is maintained on the Logistical Information System (Logis). A separate system has been implemented apart from Logis to assist in managing the location of assets within the department. the dti complied with the minimum requirement of the Asset Management Reforms, as issued by NT. 14 Information Technology Plan The Department has developed a five-year ICT strategic plan, which will be revised annually to ensure alignment with the Department’s strategy. The focus for the implementation in this period is described below: 14.1 ICT Objectives The Departmental ICT plan is informed by the following objectives: ï‚· To provide agile ICT solutions that address business priorities ï‚· Provide ICT enablement capabilities for improved information management ï‚· Ensure information security, high availability, reliability and performance ï‚· Build a skilled, dynamic and cohesive ICT delivery team ï‚· To ensure compliance to the ICT Governance Framework 14.2 Information Management In line with the Departmental values, the ICT plan for the medium term will provide the following benefits: Quality Relationships: a) ï‚· Enhanced Accessibility of systems and improved service quality ï‚· Enhanced communication and collaboration within the Department and external clients b) Intellectual Excellence: ï‚· Skilled and competent employees ï‚· Improved information management c) Operational Excellence: ï‚· Modernisation of the dti ICT services ï‚· Improved ICT service delivery ï‚· Optimisation of Business Processes ï‚· Enhanced control environment 71 

72) the dti Annual Performance Plan 2016-2019 14.3 Key ICT Projects To realise the aforementioned benefits, the department will roll-out the following key projects: a) Infrastructure and Governance ï‚· Reliable back-up and recovery capability ï‚· Ensure high availability of systems and services ï‚· Secure environment ï‚· ï‚· Systems Monitoring Centre ï‚· Data Encryption ï‚· ï‚· Implementation of a Security Operations Centre Biometrics Refresh the dti Call Centre Infrastructure and integrate Customer Relationship Management (CRM) System with optimised processes ï‚· b) CGICTPF (Corporate Governance of ICT Policy Framework) Business Enablement ï‚· Implementation of enhanced and modernised incentive management system (IEMS) assisting with improved business processes and improved validation and verification controls ï‚· Implement integrated management reporting ï‚· Migration from Novell (IDM) to Microsoft (Active Directory) ï‚· Migration from Novell GroupWise to Microsoft (Outlook and Exchange) ï‚· Upgrade to the latest Microsoft Office software and Windows Operating System v10x ï‚· Migration of NLA system and others to optimised platform/s ï‚· Implementation of Business Intelligence (BI) capabilities ï‚· Implementation of a fully functional the dti Website 15 Risk Management the dti continues its commitment to the management of risks and maintaining effective, efficient and transparent systems of financial, risk management and internal controls. Best practice standards and methodology, are tailored and applied to address every risk that the dti may be exposed to, ensuring that risks are managed and/or mitigated to an acceptable level. the dti will continue to ensure that risk is not only seen as a threat but also as an opportunity to enhance its commitment to continuous improvement. The Department also ensures that efficient and effective controls are in place, followed by continuous monitoring, reviewing and evaluation of mechanisms aimed at mitigating the identified strategic and operational risks. Strategic risks that would impede the achievement of the dti’s strategic objectives and imperatives are contained in the strategic risk register, which is maintained and actioned by ExBo. Strategic risks impacting on the dti include, but are not limited to: 1. Inability to meet clients/public expectations due to the domestic and global conditions 2. Possible fraud and corruption risk due to the nature of the Department's operations 72 

73) the dti Annual Performance Plan 2016-2019 3. Reputational risk and deterioration in governance of the public entities and non-achievement of their performance targets 4. Reputational risk due to inadequate communications to the public, of the Department's achievements and success stories 5. Inability to penetrate foreign markets. These risks are being adequately managed through, but not limited to, the following mitigating actions: ï‚· early warning system-economic intelligence reporting; ï‚· the prioritisation of the African continent as major source of demand (more foreign representatives, more trade missions going to Africa); ï‚· energy efficiency programmes (clean audits) and research studies for alternate energy sources as well as participation in the electricity war room; ï‚· skills development programmes for the country; and ï‚· regular engagements with entity/management of entities and collective bargaining clusters in entities. A strategic risk register is maintained and actioned by ExBo. Risks therein are those that would impede the achievement of the dti’s strategic objectives and imperatives. Divisions within the department compile risk registers aligned to divisional operational plans. Divisions update the risk registers every quarter, with emerging risks and risks from the changing economic and internal environments and the Office of the Chief Risk Officer reviews the status of action plans quarterly. The updated risk registers together with the progress of action plans are discussed at the quarterly Risk Management Committee (RMC). The RMC is chaired by the Group Chief Operating Officer and attended by all COOs, the CFO, CRO, CIO, and CD’s: Legal, Internal Audit as well as an external member of the Audit Committee. There is also a strong focus on ethics and fraud awareness. the dti is committed to zero-tolerance for fraud and corruption. The fraud prevention policy, strategy and plan, assists in driving different initiatives to ensure that employees of the dti are encouraged to report any suspicious activities. To further assist and enhance the ethical culture in the Department, there is a dedicated Ethics Officer, who champions the ethics mandate in the department. All employees are required to obtain approval to perform any remunerative work outside the public service and disclose all business interests. The Ethics Committee, assisted by the Ethics Officer, assesses all applications for Remunerative Work Outside the Public Service. The Committee members scrutinise all applications to ensure there are no conflicts of interest before approval can be granted by the Director-General. 73 

74) the dti Annual Performance Plan 2016-2019 16 Service Delivery Improvement Plan (SDIP) The 2015-2018 SDIP will be approved for implementation and will be reported on annually to the Department of Public Service and Administration (DPSA). A Service Delivery Charter will be reviewed to be aligned to new the dti values. 17 Public Entities Reporting to the Minister Each entity has been established in terms of specific legislation. As such no evaluation of entities is planned and only the current entities under the administration of the dti have been captured in the table. In addition, the departments legislative programme including any changes to entities will be determined by the consultation process to amend legislation. The table below indicates the entities that report to the Minister: Name of the Public Entity Enabling Amount Mandate and Purpose Legislation transferred to the public entity R’000 1. Companies and Companies Act, Nil CIPC was established by the Companies Act, 2008 (Act No. Intellectual Property 2008 (Act No.71 71 of 2008) as a juristic person to function as an organ of Commission (CIPC) of 2008), as state within the public administration, but as an institution amended outside the public service. The main functions of the Commission are the: ï‚· Registration of Companies, Co-operatives and Intellectual Property Rights (trademarks, patents, designs and copyright) and maintenance thereof; ï‚· Disclosure of Information on its business registers; ï‚· Promotion of education and awareness of Company and Intellectual Property Law; ï‚· Promotion of compliance with relevant legislation; ï‚· Efficient and effective enforcement of relevant legislation; ï‚· Monitoring compliance with and contraventions of financial reporting standards, and making recommendations thereto to Financial Reporting Standards Council (FRSC); ï‚· Licensing of business rescue practitioners; and ï‚· Report, research and advise the Minister on matters of national policy relating to company and intellectual property law. 2. Export Credit Insurance Corporation (ECIC) Export Credit and 110 370 ECIC is established by the Export Credit and Foreign Foreign Investment Re-Insurance Amendment Act, 1957 (Act No. Investments 78 of 1957) as amended. It promotes trade with countries Insurance Act, outside the Republic by providing for the insurance, on 74 

75) the dti Annual Performance Plan 2016-2019 Name of the Public Entity Enabling Amount Mandate and Purpose Legislation transferred to the public entity R’000 1957 (Act No. 78 behalf of the Government of the Republic, of contracts in of 1957) connection with export transactions, investments and loans or similar facilities connected with such transaction, and provides for matters connected therewith. 3. National Consumer Consumer 53 376 The NCC is charged with the responsibility to enforce and Commission (NCC) Protection Act, carry out the functions assigned to it in terms of the Act, 2008 (Act No.68 which aims to: Promote a fair, accessible and sustainable of 2008) marketplace for consumer products and services, and for that purpose; establish national norms and standards relating to consumer protection; provide for improved standards of consumer information; prohibit certain unfair marketing and business practices; promote responsible consumer behaviour; and promote a consistent legislation and enforcement framework relating to consumer transactions. 4. National Consumer National Credit 40 164 The NCT adjudicates any application that may be made to Tribunal (NCT) Act, 2005 (Act it, and makes any order provided for in respect of such an No. 34 of 2005), application; or allegations of prohibited conduct by as amended determining whether prohibited conduct has occurred and, if so, by imposing a remedy. It grants orders for costs, and can exercise any other power conferred on it by law. It also reviews decisions made by the National Credit Regulator (NCR), the National Consumer Commission (NCC) and single-member panels of the Tribunal. Decisions made by a three-member panel of the Tribunal may in turn be taken on appeal or review to the High Court. 5. Companies Tribunal Companies Act, 13 313 The CT adjudicates in relation to any application that may (CT) 2008 (Act No. 71 be made to it in terms of this Act, and makes any order of 2008), as provided for in this Act in respect of such an application. It amended also assists in the resolution of disputes as contemplated in Part C of Chapter 7 of the Act; and performs any other function assigned to it by or in terms of the Act, or any law mentioned in Schedule 4. 75 

76) the dti Annual Performance Plan 2016-2019 Name of the Public Entity Enabling Amount Mandate and Purpose Legislation transferred to the public entity R’000 6. National Credit National Credit 68 845 The NCR promotes a fair and non-discriminatory Regulator (NCR) Act, 2005 (Act marketplace for access of consumer credit; provides for the No. 34 of 2005), general regulation of consumer credit and improved as amended standards of consumer information; promotes black economic empowerment and ownership within the consumer credit industry; promotes responsible credit granting and use; provides for debt reorganisation in cases of over-indebtedness; regulates credit information; and provides for registration of credit providers, credit bureaus and debt counselling services. 7. National National Nil The NEF’s focus is to promote and facilitate black economic Empowerment Fund Empowerment equality and transformation. The NEF provides finance and (NEF) Fund Act, 1995 financial solutions to black business across a range of (Act No. 105 of sectors, and structures accessible retail savings products 1995) for black people based on state-owned equity investments. Its mandate and mission is to be Government’s funding agency in facilitating the implementation of B-BBEE in terms of the BEE Codes of Good Practice. 8. National Board (NGB) Gambling Act, necessary the issuing of national licences by provincial 2004 (Act No. 7 licensing authorities. It establishes and maintains national of 2004) 9. National Gambling 29 797 The NGB was established to monitor and investigate when registers regarding various gambling activities. National Lotteries National Lotteries Nil The NLC monitors and enforces the implementation of the Commission (NLC) Act, 1997 (Act national lottery. It manages the National Lottery Distribution No. 57 of 1997) Trust Funds, which distributes proceeds from its share of the lottery sales to worthy causes. 10. National Metrology Measurement 202 564 NMISA is responsible for realising, maintaining and Institute of South Units and disseminating the International System of Unit (SI). It Africa (NMISA) Measurement maintains and develops primary scientific standards of Standards Act, physical quantities for South Africa and compares those 2006 (Act No. 18 standards with other national standards to ensure global 76 

77) the dti Annual Performance Plan 2016-2019 Name of the Public Entity Enabling Amount Mandate and Purpose Legislation transferred to the public entity R’000 of 2006) 11. National Regulator measurement equivalence. National 109 734 The NRCS is responsible for the administration and for Compulsory Regulator for maintenance of compulsory specifications and the Specifications Compulsory implementation of regulatory and compliance systems for (NRCS) Specifications compulsory specifications. Act, 2008 (Act No. 5 of 2008) 12. South African Standards Act, 221 689 The SABS aims to develop, promote and maintain South Bureau of Standards 2008 African National Standards; promote quality in connection (SABS) (Act No. 8 of with commodities, products and services; and render 2008). conformity assessment services and matters connected therewith. 13. South African Accreditation for 35 712 The aim of SANAS is to accredit or monitor for Good National Conformity Laboratory Practice (GLP) compliance purposes Accreditation Assessment, organisations that fall within its scope of activity; promote System (SANAS) Calibration and accreditation as a means of facilitating international trade Good Laboratory and enhancing South Africa’s economic performance and Practice transformation; promote competence and equivalence of Act, 2006 (Act No. 19 accredited bodies; and promote the competence and of 2006). equivalence of GLP compliant facilities. The Small Enterprise Development Agency (seda), established by the National Small Enterprise Act, 1996, was transferred to the dsbd in 2014/15 financial year. 77 

78) the dti Annual Performance Plan 2016-2019 18 Public-Private Partnership (PPP) As part of the Public-Private Partnership (PPP) agreement, the concessionaire will, for the duration of the contract period, own and maintain assets such as the land, buildings and the majority of the furniture. Departmental assets excluded from this agreement include departmental vehicles, computer equipment and certain furniture items. the dti is planning to attain additional office space by acquiring Block G within the dti Campus which is privately owned. the dti intends to incorporate Block G into the PPP agreement and consultation with National Treasury is underway. Due to the fact that this process is highly negotiated the timeframes and terms of the deal cannot be pegged down however it is anticipated the entire transaction will be completed in the 2016/17 financial year. Name of PPP Purpose Outputs Current value of Date when agreement agreement expires (R thousand) the dti campus PPP Fully serviced office Design, finance, build, 870 000 accommodation for the operate and transfer of (NPV at financial close) dti the dti campus 78 August 2028 

79) the dti Annual Performance Plan 2016-2019 Annexure A: Changes to the Strategic Plan The department has proposed an amendment to the budget programme structure through the MTEF 2016 process. The changes include the spilt of Programme 7: Trade Investment South Africa (TISA) into Trade Export South Africa and a new budget programme called Programme 8: Investment South Africa. These programmes will support the strategic objective- Grow the manufacturing sector to promote industrial development, job creation, investment and exports. Movement of the Chief Directorate: Africa Bilateral Economic Relations (ABER) from Programme 2: ITED to Programme 7. The purpose of the programmes and the sub-programmes are covered under paragraph 12 supra. It is important to note that the proposed programme is in-line with the government priorities as outlined in the SONA. 79 

80) the dti Annual Performance Plan 2016-2019 80