Policing Needs and Priorities 2015/16 Milnerton Cluster Report
Economic Cluster Priorities Key Challenges and Achievements
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1 TOP SECRET TOP SECRET Economic Cluster Priorities Key Challenges and Achievements Fourth Senior Management Service Conference 05 September 2005
Transcript of Economic Cluster Priorities Key Challenges and Achievements
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Economic Cluster PrioritiesKey Challenges and
AchievementsFourth Senior Management Service
Conference05 September 2005
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To Present the Economic Cluster Focus Areas by highlighting the Key
Achievements and Challenges, within the context of MERS
Purpose of the Presentation
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• January 2001: Government adopts an Integrated Economic Action Plan (IEAP) to address specific microeconomic restraints to growth
• January 2002: The IEAP is consolidated into Microeconomic Reform Strategy and implementation is accelerated
• January 2003: Sharpen implementation of the strategy focusing on employment creation and poverty eradication.
Microeconomic Reform Strategy (MERS)
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Integrated Economic Action Plan (IEAP)
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3. A dvancing our m icoreconom icreform plan:
A proposed integrated w ay forw ard
Integrated A ction P lan 2001
M acroeconom ic fine-tuning
S m all B us.develop m ent
K ey grow th sectors
K ey inputsectors
C ross-cutting issues
T ourismA griculture
E xportsIC T s
C ultural
T ransportT elecom m s
E nergy
H R DT echnology
FinanceInfrastructure
E Q U IT Y D IM E N SIO N - B E E
G E O G R A PH IC A L D IM E N S IO N : ISR D P, U R S, SD Is, ID Zs, ID Ps,S A D C , N epad
G overnm ent’s institu tional response
G overnm ent ‘offerings’ : Policy instrum ents & A ctions, P roducts
Q uantification, M onitoring & E valuation
Im pact on the econom y
Integration: G eographic
V alue-addedIC T
Firm size
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In p u t S e c to r s :
T ra n sp o r tE n e r g yT e le c o m m sW a te r
C ro s s -c u t t in g is su e s :
H R DT e c h n o lo g y a n d R & DA c c e s s to C a p ita lIn fr a s t r u c tu re
G ro w th S e c to r s :
A g r ic u ltu reT o u r ismC u ltu r a lIC T sM in in g & m e ta lsC lo th in g & te x t i le sC h e m ic a ls & b io te c hA u to & t r a n sp o r t
K e y P e r fo rm a n c e A re a s
G ro w th E m p lo y m e n t C o m p e t it iv e n e ss B E E S M M E s
G e o g ra p h ic S p re a d
V is io n 2 0 1 4
Microeconomic Reform Framework
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• Broad economic stance• Increased levels of investment in public
infrastructure• Increase levels of investment in the first
economy• Lower cost structure in the economy and
enhanced levels of competition• Key sector development strategies• Enhance international economic relations• Enhance economic inclusion
Cluster Delivery Areas
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• A labour force with the skills needed by the economy
• Increased R&D spending and the diffusion of new technologies
• A more equitable geographic spread of economic activity
• Co-ordinated second economy interventions
Cluster Delivery AreasCont…
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• The activities in this area are broad policy statements, by their very nature they are ongoing
• Regular statements are issued by the South African Reserve Bank regarding inflation range and exchange rates
• The monitoring of the implementation of MERS remains an ongoing activity by the cluster
Area 1: Broad EconomicStance
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Area 1: Broad Economic Stance
• Key Achievements– Inflation at 4 percent– Interest rate at 10.5 percent– Growth rate around 4 percent
• Key Challenges– Exchange rate remains one of the most volatile in
the world– Structural shift in economy away from traditional
sectors– Slow pace of government investment– Weak coordination in implementing some key
strategies
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Area 2: Increased Levels of Investment in the Public Sector
• Key Achievements– Plans for SOE investment in place and fund raising
strategies well advanced• Key Incomplete Programs and Challenges
– Under-spending of MIG.– Top five border post investments.– Effective roll-out of investment plans by SOEs, and
optimisation of impact on broader economic development e.g. local content procurement
– Balancing enterprise viability with customer interests– Introduction of competition in rail, ports, and energy– Establishment of more PPPs
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Area 3: Increased levels of investment in the first economy
• Achievements– >9% rise in investment for two years, mostly
private sector– Introduction of developmental pricing in
electricity to encourage large investments– Investments in Ngqura and East London SDI– Strong investment in motor, tourism and agro
processing – Strong inflows of capital, including
Barclays/ABSA deal– Booming construction sector
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Area 3: Increased levels of investment in the first economy
• Key Challenges
– Better coordinated and resourced industrial policies (across spheres of Government) including upgrading of industrial capabilities.
– Coordinated signals to investors, including ensuring that public sector investment plans elicit private investments.
– Attraction of strategic investors (bringing new technologies and/or markets)
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Area 4: Lower Cost Structures and Enhance Competition
• Key Achievements– National Ports Authority Bill passed– Strong signals going out on need for competitive pricing– RED 1 launched on 1st July 2005
• Key Challenges– Lowering costs of key resource based inputs and telecoms
prices– Separation of rail infrastructure management from rail
services– Increasing competition in key areas– Facilities for non-motorised transport to link rural, peri-
urban and poor communities to socio-economic centres– Lowering costs of freight logistics chain and transport costs
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Area 5: Key sector development strategies
• Key Achievements– Sector strategies for chemicals, BPO, tourism, clothing and
textiles are at advanced stage– Interim clothing and textiles programme finalised– Services sector research completed and framework drafted
• Key Challenges– Focusing managerial and financial resources on a small
number of major opportunities such as BPO and tourism– Building level of trust between sector stakeholders such as
in the motor and tourism industries– Effective and coordinated implementation of Advanced
Manufacturing Technology Strategy
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Area 5: Key sector development strategies
• Key Challenges cont.
– Integrated Agricultural Sector Strategy– Beneficiation programmes for resource-based
industries– Coordination of national and provincial industrial
policies and implementation of programmes
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Area 6: Enhance international economic relations
• Key achievements– Conclusion of SACU agreements with Mercosur and EFTA– Establishment of SACU common approach and
mechanisms for trade negotiations– Inclusion of 10 new EU members into SA-EU agreement– Mobilisation of G8 in support of African development– Launch of IBSA business forum– Yammasoukro agreement on African aviation open sky
programme– First meeting of Permanent Trade Forum
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Area 6: Enhance international economic relations
• Key Challenges– Need to conclude Trade in Services offer
to WTO and to strengthen government capacity and coordination regarding WTO and other negotiations
– Need for SA to provide leadership in SACU and SADC
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Area 7:Enhance Economic Inclusion
• Key Achievements– ICT, Financial, Mining, Petroleum and Tourism charters complete or
near completion – SEDA established– Steady impact of employment equity, especially public sector
• Key Challenges– SEDA roll-out to Provinces– Completion of BEE charters and code of good practice– Stronger private sector employment equity programmes– Use of Financial Charter commitments to support public/private
projects (e.g. housing and urban development projects)– Translation of community investment elements of charters into
focused sector development, e.g. in agriculture– Incorporate MDG goals into cluster objectives
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Area 8: Labour Force with skills needed by the economy
• Key achievements– Immigration Act and regulations ready for implementation– New National Skills Development Strategy – SETA service level agreements and National Skills Fund funding windows developed– Centres of Excellence programme launched
• Key challenges– Integrated Human Resource Development Strategy– Alignment of FET and NSDS– Fast-tracking skills programmes to support faster growth and employment creation– Impact of amendment regarding skills levy exemption for SMEs– Establishment of Employment Skills Development Agency model by social partners– Role of PSETA in public sector training– Building social networks to link opportunities to skills development strategies in
communities, including career guidance, mentorships, clinics
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Area 9: Increased R & D Spending and the diffusion
of new technologies• Key Achievements
– R&D has risen from 0.76% in 2001/02 to 0.81% in 2003/04– SA recognised as global hub for space science and astronomy– SA recognised as a Africa’s candidate for international centre for genetic
engineering and biotechnology • Key Challenges
– Reaching 1% of GDP in 2008 by increasing public and private investment in R&D
– Strengthen public research institutions, including human resources and infrastructure
– Strengthen Advanced Manufacturing Technology Strategy implementation– Finalise and implement ICT R&D strategy– Implement PBMR human capital development strategy– Investing in new areas of research
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Area 10: More equitable geographic spread of economic activity
• Key Achievements– Agreement on process to align Integrated Development
Plans, Provincial Growth and Development Strategies and the National Spatial Development Perspective
• Key Challenges– Provision of appropriate infrastructure to facilitate
economic activities based on regions’ comparative advantages
– Clarification of responsibility for domestic SDI strategy and implementation
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Area 11: Coordinated second economy interventions
• Key Achievements– Launch of MAFISA (ACS) and APEX (SAMAF) microfinance
programmes– EPWP—Dec 04—105 000 net work opportunities created, 1890
projects, R2.4 billion spent– Transitional financial allocations from National Skills Fund to Provinces
for implementation of social development projects, including EPWP– Reform of tax administration system for small businesses
• Key Challenges– Need for a common understanding of the strategic framework for
second economy interventions– Enhance capacity of municipalities to engage in infrastructure
investment planning, and national department support for implementation of infrastructure projects
– Enhance local government capacity for local economic developmentincluding sectoral strategies and social partnerships
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Area 11: Coordinated second economy interventions
• Key Challenges continued– Full enforcement of the EPWP guidelines on Municipal
Infrastructure Grant funded infrastructure– Need for additional training funds for EPWP skills
development– Capacity at provincial level to ensure implementation of the
Comprehensive Agricultural Support Programme– Stronger coordination of implementation of micro-finance
programmes (Mafisa, Apex, Dedicated Banks Bill, Cooperative Banks Bill and Financial Sector Charter)
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Conclusions• A striking common element amongst the
challenges is the lack of key implementation capacity at national, provincial and local government levels
• Several projects are held up or below optimal levels due to shortages of funds
• Need to leverage efficiencies through stronger coordination, and more effective prioritisation
