Tshwane Resolutions/Council... · Project Portfolio Management services, Development facilitation...

Municipal entity of the City of Tshwane 2006/019396/07

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TSHWANE ECONOMIC DEVELOPMENT AGENCY

REVISED BUSINESS PLAN: 2014/15

JAN 2015

Sign Off:

Acting CEO TEDA: Mr S D Mogaladi

Signature of Acting CEO: ………………………………

Chairperson of TEDA BOARD: Mr L Vutula

Signature of Chairperson: ……………………………...

SED/SEH/HOD Name: ……………………..………………………………

Signature of SED/SEH/HOD: ………..……………………………………

DCM Name: ………………………………………………………………….

Signature of DCM: ………………………………………………………….

Receipt & Review

Signature of CSPM Representative: ………………………………

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TABLE OF CONTENTS

1. INTRODUCTION ........................................................................................................... 5

1.1 Vision and Mission .................................................................................................. 7

1.2 Legislative and other mandates ....................................................................... 7

1.3 TEDA SWOT Analysis ............................................................................................... 9

2. STRATEGIC FOCUS AREA ........................................................................................ 10

3. CORPORATE GOVERNANCE FRAMEWORK ...................................................... 11

4. MANAGEMENT AND ORGANISATIONAL STRUCTURE ...................................... 13

5. FUNCTIONAL STRATEGIES ....................................................................................... 14

5.1 Project Portfolio Management (PPM) ............................................................ 14

5.2 Trade and Investment Strategic Focus .......................................................... 18

5.3 Marketing and Communication Strategic Focus ....................................... 19

5.4 Human Capital ..................................................................................................... 22

6. SDBIP SCORECARD .................................................................................................. 25

7. TEDA SCORECARD ................................................................................................... 26

8. FINANCE STRATEGY.................................................................................................. 32

9. FINANCIAL IMPLICATION ........................................................................................ 33

10. TEDA RISK REGISTER 2014/15 .............................................................................. 34

11. CONCLUSION ........................................................................................................ 40

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DEFINITION OF TERMS

(a) Business Plan: A business plan is a document that gives the summary of the work of the

Municipal Entity. It highlights the functions of the Municipal Entity, its organisational

arrangements, planned activities as well as the cost associated with delivering on its

mandate.

(b) Deliverables: These are Municipal Entity set targets for the financial year and they relate

to the overall strategic objectives of the city. The deliverables as required in this

document need to be in line with the 5 year targets as reflected in the 2011/16 IDP and

should demonstrate a progressive movement towards achieving the city’s goals.

(c) Municipal Entity Scorecard: The Municipal Entity scorecard reflects the planned activities

of the Municipal Entity in line with its functions. Targets set in the Municipal Entity

scorecard are broken down into quarterly targets. This scorecard will be used to monitor

Municipal Entity performance on an annual basis.

(d) Functional Area: the functional areas of the Municipal Entity are as per the approved

organisational structure of the city (micro structure). They reflect the various areas of

work within the Municipal Entity to which targeted implementation and budgets are

allocated.

(e) Game Changers: The game changers were introduced during FY 2012/13. These are key

strategic programmes and projects that are aimed at fast tracking the city’s social and

economic transformation.

(f) Indicators: these are statements of measurement and are used to indicate whether

progress is being made in achieving the goals. Indicators provide a common framework

for gathering data for measurements and reporting; translate complex concepts into

simple operational measurable variables; enables the review of goals and objectives;

assist in policy review processes and help provide feedback to the municipality and

staff. The approved IDP 2011/16 and its first review contain these indicators. Municipal

Entities are encouraged to improve these in line with their set targets.

(g) Key Focus Area: these are a subset of the Municipal Entity functional area. The key focus

areas represent the work of the Municipal Entity almost to the activities that the

Municipal Entity is expected to perform.

(h) Key Performance Area: Key performance areas aggregate the strategic objectives into

areas of focus. Strategic Objectives: The Performance Management Guidelines

(paragraph 5.1.3) state that “All components of the IDP need to be translated into a set

of clear and tangible objectives. The statement of objectives requires a tangible,

measurable and unambiguous commitment to be made. Setting objectives, a

municipality needs to carefully consider the results desired; review the precise wording

and intention of the objective; avoid overly broad results statements; be clear about the

scope and nature of change desired; and ensure that objectives are outcome and

impact focused.” In the 2011/16 IDP, the city approved 7 Strategic Objectives which are

to guide the city’s development interventions for the mayoral term. The strategic

objectives highlight some of the key areas of work for the city and set a tone for the

city’s developmental interventions for the term. In this business plan, it is proposed that

these objectives be revised to reflect all the strategic work of the city in line with the

city’s desired long term objectives and to reflect entirely the work that happens in the

city.

(i) Tshwane 2055 GDS: The City of Tshwane has developed its long term strategic

framework. Tshwane 2055 is a long term policy statement of the city highlighting the

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strategic intent of the city in line with established principles and the desired outputs as

contained in the Tshwane 2055 discussion document.

(j) Sectors: A cluster or grouping of businesses that share the same or related product or

service. This is also referred to industries within an economy.

(k) Priority Markets: Lists of countries that are targeted by TEDA to focus on for economic

development for the City of Tshwane.

(l) Business Units: Units in TEDA’s organisational structure.

(m) Functional Units: Support structures in TEDA’s organisational structure.

(n) Outputs – the final products or goods and services produced for delivery

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1. INTRODUCTION

The Tshwane Economic Development Agency SOC Ltd (TEDA) was established as a

municipal entity of the City of Tshwane Metropolitan Municipality (CoT) on 2 November 2006.

TEDA operates as a State Owned Company registered in terms of the Companies Act.

TEDA was established with the primary objective to cultivate an environment within which

the City of Tshwane (CoT) can grow its human capital and the economy through the

facilitation, implementation and management of developments with a specific focus on

economic development and investment attraction into the greater Tshwane.

The mandate of TEDA is derived from Mayoral Committee discussions which culminated in

November 2012 with an approved mandate. This mandate stated that TEDA will undertake

activities and strategic interventions in the areas of:

A) Trade and Investment Promotion, Facilitation and Aftercare;

B) Trade and Investment Programme Implementation:

As defined by the SLA and Annual Business Plans;

Implementing the CoT’s investment pipeline.

C) Promotion of Export-Ready Companies;

D) Trade, Investment and Tourism Marketing Services;

E) Development Facilitation:

Package and promote investment projects as determined by relevant City

Departments;

Nodal Development, e.g. the Implementation of Inner City Revitalisation

Programmes.

F) The Maintenance of an Infrastructure Investment Vehicle:

Will assume the form of a Special Purpose Vehicle to Facilitate Project

Financing;

Will contain a Portfolio to Manage Strategic Land Parcels and Properties of

the City.

G) Strategic Land and Buildings Portfolio Management:

Identified land parcels and properties in line with Capital Investment

Framework (CIF) facilitated by City departments, i.e. City Planning in

conjunction with Economic Development.

H) Social Infrastructure Investment Facilitation;

I) Programme Management in relation to Investment Projects responding to EPWP;

J) Sectorial and Skills Development Programmes linked to Trade and Investment

Projects;

K) International Investment Outbound and Inbound Missions aligned to the Market

Analysis driven by TEDA Trade and Investment Business Unit;

L) Strategic Trade and Investment Events and Activities:

Destination Management;

Local exhibitions & International Exhibitions;

Trade and Investment Conferences;

Export readiness programme.

M) One-Stop Investment and Export Centre:

New Investment enquiries under Qualifying Criteria;

International Market Penetration;

Qualifying Investments linked to the Approved City Investment Policy and

Strategy;

Assistance to Export Ready Firms;

Assistance with respect to the Implementation of the Approved Investment

Pipeline of the City.

N) Tourism Marketing Services:

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Tourism Productive Development, Facilitation and Aftercare;

Tourism Programme Management;

Business of Tourism e.g. Investments linked to Tourism.

O) Stakeholder Liaison/Strategic Partnerships:

Inter-Governmental;

Private Sector;

International Trade Partnerships.

P) Implementation of Programmes identified in Sister-City Agreements;

Q) “Game Changer” Programme Implementation as assigned by City and that includes:

For example: Land Parcels, Power Stations, the Convention Centre, etc.

The mandate has been translated and clustered into the following key activities and business

units of TEDA:

Business Unit Key Activities Trade and Investment

services

To promote the exports of goods and services manufactured

and / or produced within the City of Tshwane as well as to

support the development of existing and potential exporters

based within the City.

Increasing investment into the City of Tshwane through the

attraction, facilitation. Retention and expansion of local and

foreign investment

Project Portfolio

Management services,

Development facilitation

Facilitating and implementing all identified projects on

behalf of TEDA

Marketing and

Communication services

Established as an income stream through events as well as a

marketing and communication arm for TEDA and the City of

Tshwane. TEDA’s key messaging will be channelled through

this business unit.

Immovable Assets

Management service

Established as an income stream for TEDA. The Asset

Management business unit will manage and develop

property assets on behalf of the City of Tshwane with the aim

to derive maximum value for the City’s assets.

Business Development and

Strategic Partnerships

To form and maintain strategic partnerships.

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1.1 Vision and Mission

The vision of the Tshwane Economic Development Agency SOC Limited is:

‘TEDA strives to be a leading African economic development agency’

The mission of the Tshwane Economic Development Agency SOC Limited is:

‘To provide innovative investor solutions so as to attract and develop strategic industries and

businesses into the Capital City in order to strengthen and position South Africa in the

continent’

1.2 Legislative and other mandates

TEDA is a Municipal Entity in terms of the Local Government: Municipal Systems Act 32 of 2000

and consequently also has to function within the ambit of the Local Government: Municipal

Finance Management Act 56 of 2000 and the Companies Act 71 of 2008. The regulatory

planning and reporting cycles for TEDA are determined by these Acts and its related

regulations and framework. TEDA also complies with the corporate governance principles

contained in the King Code on Corporate Governance 2009 (“King III”).

In executing its mandate a range of legislative and regulatory provisions and Municipal By-

Laws requires adherence and consideration. In terms of legislative provisions the following is a

non-exhaustive list:

• Export Credit and Foreign Investments Insurance Act, 1957 (Act No 78 of 1957);

• Property Law Act (As Amended);

• Protection of Businesses Act, 1978 (Act No. 99 of 1978);

• Trade Practices Act, 1976 (Act No. 76 of 1976) (To be repealed in terms of Section 20

of Act 43 of 1990);

• Small Business Act, 2004 (Act No 29 of 2004, as amended).

1.2.1 Further Enabling Legislation

Execution and delivery of the TEDA goals and objectives necessitate that TEDA engage with

and demonstrate compliance with various legislative provisions. Two key service delivery-

related legislations that directly influence TEDA’s ability to deliver on its mandate are the

following:

TEDA is required to register with the South African Revenue Services (SARS) in terms of

the appropriate provisions and rules.

The Value Added Tax Act No. 89 of 1991 provides for the payment of VAT.

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1.2.2 Other Observed Legislation

Economic Development Agencies remain subject to all South African laws and, in operating

as a state-owned company TEDA is subject to observance of a wide range of legislation that

have a particular bearing on the operations of the company and the delivery of its services

and products.

Key areas of legislation that influence the execution of TEDA’s mandate and strategies are

recorded below:

Core Function Legislation Description / Relevance to TEDA

Construction

SABS 1200: new revised South African building regulations : energy management

: fire regulations : SANS 0420 energy efficiency : SANS 829 : 2009 : perfromance

standards in buildings : SANS 1200 : standard specification for civil engineering

construction

Maintenance of standards in infrastructure

development

SMME and BBBEE

development

Broad Based Black Economic Strategy and other Policies.

Broad Based Black Economic Empowerment Act 53 of 2003SMMME and BEE development

Integrated

Environmental

Management

Integrated Pollution and Waste Management Policy (IP&WW, 2000).

Environment Conservation Act 73 of 1989.

National Environmental Management Act 107 of 1998.

Occupational Health and Safety Act 85 of 1993 (OHSA).

Implementation and regulation of legislation

related to environmental protection and

management.

Human Resources

Management

Employment Equity Act 55 of 1998.

Skil ls Development Act 97 of 1998.

Basic Condictions of Employment Act 75 of 1997 (BCEA).

Unemployment Insurance Fund Act 63 0f 2001 (UIF).

Labour Relations Act 66 of 1995 (LRA).

Ensure that regulatory requirements related to

Human Resources management are adhered to

and managed effectively and efficiently.

Financial and

Corporate

Administration

* Public Finance Management Act (PFMA), 1999

* Municipal Finance Management Act (MFMA), Act 56 0f 2003

* Municipal Systems Act (MSA), Act 32 of 2000

* Companies Act, Act 71 of 2008

Ensure requirements related to financial

management and administration are adhered to

with efficiency, effectiveness and economy.

Trade & Investment

• Export Credit and Foreign Investments Insurance Act, 1957 (Act No 78 of

1957)[Amended 2002]

• Property Law Acts

• Protection of Businesses Act, 1978 (Act No. 99 of 1978)

• Trade Practises Act, 1976 (Act No. 76 of 1976)

• The Consumer Protection Act of 2008

• The National Small Business Act, 2004 (Act No 29 of 2004)

Ensure requirements related to trade and

investment management and administration are

adhered to with efficiency, effectiveness and

economy.

All Programmes

Other Legislation

* Managing HIV/AIDS in the workplace.

* National Gender Policy Framework for Women Empowerement and Gender Equality, 2000: Protects Women's Rights.

* Promotion of Equality and Elimination of Unfair Discrimination Act, 2000: Guards against all forms of discrimination.

* Employment Equity Act: No. 55 of 1998. Code of good practice on the employment of people with disability.

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1.3 TEDA SWOT Analysis

The following strengths, weaknesses, opportunities and threats were identified during the

period when TEDA went through a performance improvement phase in the latter part of the

2013/14 financial year. This was triggered by the high targets that were set at the beginning

of the financial year against limited resources.

Strengths

• Established entity with board and management

• Clearly defined mandate

• Support & committed shareholder

• Benchmarking opportunities

• Newly established entity

Weaknesses

• Young organisational and administrative systems and processes

• TEDA unknown to critical stakeholders, the investment community and the public

• Limited financial resources to execute mandate

• Lack of established organizational governance structure & culture

• Over reliance on CoT funding

• Broad mandate

• Leadership instability

• Lack of strong balance sheet / capitalization

• Limited opportunities for income generation – income streams

Opportunities

• Working with CoT departments

• Tshwane’s strategic objectives in the Vision 2055

• Last mover advantage

Threats

• Duplication of mandate areas between CoT and TEDA

• Lack of alignment between CoT departments and TEDA

• Lengthy delays in decisions and approval making

• Last mover disadvantage

• Unfavourable economic climate

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2. STRATEGIC FOCUS AREA

The following 6 areas provide the framework for the Outcomes City of Tshwane will pursue

through the regular IDP and budget processes. The role, focus and strategic annual planning

exercises of TEDA in this context are closely guided by the Tshwane Vision 2055 outcome

areas. In this regard TEDA will continue to unpack the key strategic programmes and

enablers required to systematically and rigorously implement interventions that will impact on

the following Vision 2055 identified outcomes:

Outcome 1: A resilient and resource efficient City.

Outcome 2: A growing economy that is inclusive, diversified and competitive.

Outcome 3: A City with quality infrastructure development that supports liveable

communities.

Outcome 4: An equitable City that supports happiness, social cohesion, safety and healthy

citizens.

Outcome 5: An African Capital City that promotes excellence and innovative governance

solutions.

Outcome 6: South Africa’s Capital with an activist citizenry that is engaging, aware of their

rights and presents themselves as partners in tackling societal challenges.

In pursuance of our legislative mandate, TEDA developed the following 7 key Strategic

Objectives. These key Strategic Objectives are derived from the mandate of TEDA, aligned

with Tshwane Vision 2055, the CoT IDP 2011-16 (including its 2013/14 revision) and provide the

framework within which TEDA will focus its strategic efforts in the planning period. TEDA has

identified projects that support Outcome 2.

Strategic Objective 1: To develop, facilitate and promote viable foreign and local

investments into City of Tshwane

Strategic Objective 2: To establish and maintain an economic Infrastructure

Investment vehicle

Strategic Objective 3: To identify, design, develop and manage projects with

strategic economic and / or social benefits for the greater

Tshwane community.

Strategic Objective 4: To develop and maintain a strategic immovable and property

asset portfolio for maximum return on investment.

Strategic Objective 5: To facilitate the implementation of agreements signed

between CoT and key stakeholders

Strategic Objective 6: To promote Tshwane as a viable investment destination

through the implementation of integrated marketing and

communication programmes

Strategic Objective 7: To establish and build TEDA as a strong and effective

organization in the context of good governance best practices

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3. CORPORATE GOVERNANCE FRAMEWORK

The TEDA Board has adopted a Corporate Governance Policy Framework which sets out

TEDA’s governance framework and legislative obligations. The Policy Framework draws from

the CoT’s Corporate Governance protocols and it includes TEDA’s Code of Conduct for

Directors and Employees, Conflict of Interest Policy, Anti-Fraud Policy, Roles and

Responsibilities of Directors, the Board and Committee Charters, amongst other critical

documents.

The aim of the TEDA Corporate Governance Policy Framework is to enable the Board to

continuously play its oversight role on the day to day management of the entity and to

ensure that the entity’s affairs are conducted within an ethical environment. It is also aligned

to the King III Report and promotes transparency, accountability, integrity and equality.

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3.1. Corporate Governance Structure

SHAREHOLDER

CoT

BOARD OF DIRECTORS COMPANY SECRETARY

SOCIAL & ETHICS

COMMITTEE

FINANCE, RISK &

GOVERNANCE

COMMITTEE

PROJECTS

COMMITTEE

EXECUTIVE COMMITTEE

CHIEF EXECUTIVE OFFICER

REMUNERATION

COMMITTEE

TRADE &

INVESTMENT

COMMITTEE

COMMITTEE ON

DIRECTORS

AFFAIRS

AUDIT, RISK &

PERFORMANCE

COMMITTEE OF COT &

ENTITIES

GROUP INTERNAL AUDIT

AND RISK UNIT

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4. MANAGEMENT AND ORGANISATIONAL STRUCTURE

The TEDA CEO and Executive Management direct the day-to-day operations of the entity

and ensure that the mandate of TEDA is implemented in line with the strategy and direction

from the Shareholder and the Board in the context of effective internal policies and

procedures, performance management and regular reporting in compliance with the

relevant frameworks and legislation.

As can be seen in the diagram below, each Business Unit is headed by an Executive

Manager who takes responsibility, and is accountable, for the full set of functions assigned to

the unit.

Figure 1: TEDA High-level organisational structure

Board

Company Secretary

Head: Internal Audit

Head: Risk Compliance

CEO

Executive Corporate Services

Chief Financial Officer

Executive Asset Management

Executive Marketing &

Communications

Executive Projects Portfolio

Management

Executive Trade and Investment

Executive

Personal Assistant

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5. FUNCTIONAL STRATEGIES

5.1 Project Portfolio Management

The goals of the Project Portfolio Management (PPM) unit are as follows:

Sustainable development of strategic geographic areas to vibrant economic zones

through upgrade of public spaces,

Implementation of infrastructural projects as a vehicle for economic growth,

Facilitation of private sector capital investment projects,

Facilitation of Public sector capital investment projects,

Facilitation of Public/Private partnership as a project implementation approach,

Unlock economic value in declining investment movements in strategic areas

through development and upgrade of infrastructure projects,

Facilitate productive partnerships in developments which support TEDA’s mandate,

Employ sound project planning and implementation practices,

Transforming geographically strategic areas to economic sustainable

5.1.2 PPM Objectives

The objectives of PPM in the short term (<2years) are:

Development of PPM systems to handle the project lifecycle.

Development of project portfolio management maturity level.

Resourcing of the PPM unit in accordance with key positions (Executive and Senior

Management) of the preferred structure.

Development of at least three (3) project business cases ready for investment

promotion and implementation.

Development of at least two (2) industrialization sector projects business cases.

Definition of revenue generation within projects looking at sweat equity model.

The objectives of PPM in the medium term (<5years) are:

Implementation of at least one (1) industrial project.

Reviewing and improving the PPM systems and readiness for ISO accreditation.

Further development of project portfolio management maturity level.

Resourcing of the PPM unit in accordance with the preferred structure at least by 90%

Development of approximately five (5) business cases for at least three (3) different

priority sectors.

Development of approximately two (2) business cases for nodal intervention projects.

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The objectives of PPM in the long term are:

Obtaining ISO 9001:2008 accreditation.

Implementing game changer projects within the manufacturing sector.

Undertaking a reputational study/survey of TEDA in terms of project facilitation and

implementation.

Reviewing and improving PPM systems as part of maintaining ISO accreditation.

Development of growth strategy statement looking at integration (Vertical and/or

Horizontal) opportunity for projects in implementation stage, with the goal to update

TEDA Project Pipeline.

5.1.3 TEDA’s Approved Projects

TEDA has identified projects which fall within the mandate as stated in the Service Delivery

Agreement (SDA). These are projects which will realize socio-economic benefits, economic

growth and job creation. The SDA also states that TEDA must pursue to become financially

sustainable thereby reducing the financing contribution of City of Tshwane over the period of

the Agreement.

As a result, TEDA has embarked on projects termed Type 1, which seek to generate revenue

for TEDA in the medium to long term, also in pursuit of sector development and economic

growth within the City. These include the 5th international Trade and Investment Conference

in May 2015 (TITIIC).

The second category of projects is Type 2 projects which are primarily for socio-economic

benefits coupled with job creation (Social Infrastructure Investment Facilitation)

Type 1 Projects

Both these projects are at concept stage (stage 1):

Industrial Park for Advanced Bio manufacturing – This project is owned by the IDC.

Southern African Agro-processing Hub

Type 2 Projects

These projects are at inception state (stage 2)

Youth build programme

Development of Cullinan area

The proposed projects are stated below:

5.1.3.1 Development of Cullinan area

Gauteng’s Quick getaway destination with a focus on the necessary infrastructure and

Tourist attraction sites. Cullinan is strategically important to link the rest of the area with

Gauteng. Other pipeline projects such as the Dinokeng Festival will promote this area as a

true getaway destination.

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5.1.3.2 Industrial park for advanced Bio-manufacturing

South Africa has, through various national policies and interventions highlighted the

importance of the manufacturing sector in driving socio-economic growth and technology

competiveness. Two keys national strategic documents relevant in the context of advanced

bio manufacturing are the National Bio-economy strategy and the IPAP II. The former,

released by the Department of Science and Technology (DST), aims at ensuring that

innovative technology resources are better developed, focused and applied to drive

economic growth. The latter, by the Department of Trade and Industry (the DTI), recognizes

that South Africa's future competitiveness will depend on the capacity of the manufacturing

sector to master advanced technology domains, to innovate and to meet the precise needs

of customers. By drawing on its capabilities in manufacturing in the agriculture sector,

industrials and chemicals, South Africa should be able to manufacture active

pharmaceutical ingredients, vaccines, biopharmaceuticals, diagnostics and medical

devices to address the disease burden, while ensuring a secure supply of essential

therapeutics and prophylactics. The development of new and improved therapeutics (drugs,

vaccines, phytomedicines and biopharmaceuticals), diagnostics and medical devices is a

key area of intervention. The 2014 Bio economy strategy highlights these key focus areas as

being critical in establishing an economically impactful bio-manufacturing industry that will

have a global reach:

1. Development of improved therapeutics and drug delivery systems to address priority

diseases

2. Development of biologics (biosimilars) to address the health challenges that face the

country and improve South Africa’s export base

3. Development of improved diagnostics that is robust, rapid at low cost.

4. Development of improved medical devices:

5. Strengthening Clinical research and development capabilities

6. Establish pharmaceuticals manufacturing: development of local manufacturing

capabilities for generic, new drugs, or biosimilars.

A key global trend in pharmaceuticals manufacturing is the migration from total batch

manufacturing to automated continuous manufacturing with quality designed into the

process and equipment that requires less space to function. Continuous flow reactors plants

cost a quarter of the price of batch manufacturing plant. South Africa has a small

manufacturing industry, with Fine Chemicals being the only API manufacturer and the rest

being “fill and finish” using API’s from India and China. As much as there is interest in setting

up continuous flow reactor plants, SA does not have the infrastructure to support this.

However many countries do not have the infrastructure as well, thus SA needs to capitalise

on the window of opportunity that still lies in being a first mover in this space.

The project will be owned and driven by the Innovation Hub. TEDA’s role will be to conduct

targeted investment promotion to potential investors within the said sector. All the

engagements with the role players will be documented. The project is still at conceptual

stage.

5.1.3.3 Tshwane Agro-Processing Hub

This project aims at establishing a facility for the processing of primary produce from SADC

countries for exporting to the rest of the world. City owned land will be identified for use as a

lever for attracting investors into the Hub and conduct a feasibility study in the 2014/15

financial year. All processors of agricultural products and big end users will be mobilised for

endorsing the concept and commence with the setting up of the Hub in 2015/16 financial

year.

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5.1.3.4 Region 1 Youth Greening Project

This is collaboration programme with National Youth Development Agency and is about job

creation opportunities for young people.

The implementation will be guided the approved Project Framework which will offer in-depth

analysis on each project lifting up Human and Financial resources required, feasibility and

other issues to be considered for successful implementation. The delivery model is envisaged

to be mainly through partnerships with various stakeholders including communities, private

funding as well as TEDA funding especially for immediate and short term projects, thus

resonating with TEDAs Business Model as depicted in the diagram below.

5.1.3.5 Tshwane International Trade & Infrastructure Investment Conference

(TITIIC)

TITIIC is a biennial international conference hosted and managed by the City of Tshwane.

The inaugural TITIIC was held in 2008 and the last one in 2012. The conference has grown in

stature over the years. Participants at the conference include captains of industry, SMMEs,

Co-operatives, informal economy players, development finance institutions, donor

community, diplomats, academics, researchers, policy makers and policy analysts. A

sizeable number of these participants are drawn from the international community.

In 2012 the conference was attended by 839 delegates and there were 110 exhibitors from

different sectors showcasing a variety of goods and services, and quite a large percentage

of them were Tshwane based businesses. It is envisaged that the 2015 event will attract even

larger numbers of participants and exhibitors.

TITIIC is one of the City’s key initiatives aimed at addressing key developmental challenges

that it faces. The primary focus of the conference is to facilitate the inflow of domestic and

foreign investments into the identified priority sectors of the City’s economy resulting in

growth, competitiveness and job creation, and highlighting the inherent potential of the City

to export local niche products and services

This project has a high job creation and investment attraction value. It will profile Gauteng

and City of Tshwane as an investment destination.

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5.2 Trade and Investment Strategic Focus

The core responsibility of the Trade and Investment Unit is to promote, facilitate and expand

foreign and local investment in the City of Tshwane including increasing exports to key

regional and international markets. T&I assists local and international companies to establish

and build their businesses in Tshwane. The Unit assists prospective investors by navigating the

challenges of investing and providing the information required to make good investment

decisions. Furthermore, T&I facilitates a coordinated approach that saves investors time and

money. Trade and Investment Unit’s services include the following:

Information on the business and regulatory environment

Information on issues such as economic factors, business costs, the taxation regime,

ease of doing business, investment regulations, skills availability and immigration

Introductions to key stakeholders and role players

Facilitation of outbound and inbound trade and investment missions

Facilitation of joint venture and equity partnerships

Provision of information on financing options and investment incentives

Assistance to investors to obtain work and business permits, access to suitable land,

factory space, etc

Provision of technical capacity building services for existing and potential exporters

Promote goods and services produced or manufactured in the City of Tshwane

Given that TEDA is a relatively new entity, the focus of the Trade and Investment unit for the

2014/2015 is to gather and collate baseline information pertaining to the trade and

investment environment in the City of Tshwane. To this end, research relating to the outlook

for foreign direct investment was conducted. With regards to trade, an analysis of the City`s

export environment was also conducted. In addition to gathering the requisite intelligence,

the unit will also focus on the identification of potential investment opportunities in order to

develop an investment opportunity pipeline.

Based on the outlook of trade and investment environment in the City of Tshwane and more

specifically the outlook for FDI in South Africa, TEDAs strategic trade and investment focus in

the subsequent years is illustrated in the diagram below:

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Based on the findings of the trade and investment intelligence gathered and the fact that

TEDA is a relatively new entity, strategic emphasis will be placed on image building as well as

investment retention and expansion during the 2015/2016 period. The period 2016 to 2018 will

see a move from image building to competitive positioning while maintaining the status quo

on investment retention and expansion. In line with projected economic growth and

commensurate with the outlook for FDI for the years 2018 to 2020, TEDA will focus on investor

targeting and the attraction of FDI, both greenfield as well as through Merger and

Acquisition activity.

5.3 Marketing and Communication Strategic Focus

The overall objective of Marketing and Communication is to promote Tshwane as a viable

investment destination through the implementation of an integrated Marketing and

Communication programme.

The Marketing and Communications Business Unit was established as an income stream

through events as well as a marketing and communication arm for TEDA and the City of

Tshwane. TEDA’s key messaging will be channeled through this business unit. In the execution

of its mandate, Marketing and Communication collaborates with City of Tshwane’s

Communication, Marketing and Events department, Department of Economic Development

as well as Tshwane Convention and Visitor’s Bureau(TCVSB) in Meetings, Incentives profiling,

Conventions , Events and Exhibitions that help raise the city’s competitiveness and brand.

5.3.1 Brand Communication Objectives

The following communication objectives have been identified:

5.3.1.1 To enhance the TEDA brand perceptions

This means that TEDA has to build a strong brand by communicating a consistent promise to

all stakeholders in order to create lasting relationships. The desired outcomes for this

objective are:

Awareness building;

Internally focused and externally directed;

Informative and proposition based communication; and

Educate on TEDA offerings and projects

5.3.1.2 To build and maintain positive brand reputation

This is important in order to convert TEDA stakeholders into brand ambassadors and maintain

support. The objective has to be:

Externally focused and internally directed; and

Mostly interactive and conversational and need to use stakeholders and clients to

build brand reputation

85

20

5.3.1.3 To advocate Economic development in Tshwane

The aim is to leverage various initiatives and TEDA’s position as a champion and advocate of

economic development dialogue and issues in Tshwane. The desired outcomes are:

Leadership building;

Leveraging partnerships/ sponsorships and use as platforms for industry dialogue;

and

Challenging / advocating policy issues

5.3.2 TEDA Brand Talking Points

The following points have been identified as key in advancing the TEDA brand:

We promote trade and investment opportunities and deliver economic value;

Doing business in the Capital City is smart business;

We contribute to improving the quality of life of all Tshwane’s citizens;

We showcase relevant investments that respond to Tshwane’s socio economic

challenges;

We promote innovative investment solutions ; and

Unleashing the Capital City’s Economic potential for Socio economic impact

Year/focus

area

2015/16 2016/17 2017/18 2018/19 2019/20

Deliverables Creation of

Awareness

Stress

Differentiation

Maintain

Brand loyalty

Harvesting Maintenance/

Diversification

Branding Develop Brand

Architecture

Test acceptability

of TEDA logo

Thought

leadership

programme

(through TEDA

Lounge)

Adaptation of

look and feel

Brand Book

Thought

leader

programme

Re-evaluate

association

with mother

brand – drop

logo & carry

tag line –

Municipal

Entity….

Brand

reinforcement

Stabilize brand

Product Define projects

Educate internal

& external

stakeholders

about TEDA.

Investor business

information

Communicate

projects

through

appropriate

media

platforms

Establish an

investor/

Keep brand

promise using

products and

services

Update

services in the

centre.

Evaluate

brand offering

in line with

demand or

customer

needs

Launch new

service

offering in line

with target

market needs

86

21

Year/focus

area

2015/16 2016/17 2017/18 2018/19 2019/20

Deliverables Creation of

Awareness

Stress

Differentiation

Maintain

Brand loyalty

Harvesting Maintenance/

Diversification

centre proposal

and identification

of location.

Established TEDA

business lounge

entrepreneur

business

information

centre

Develop App

for Tshwane

accredited

township

businesses

Promotion Inform and

educate target

market on

product offerings

Create brand

value

proposition. Stress

differences and

claim our position

as drivers of the

city’s economy

Develop

regional

campaigns

showcasing

TEDA’s

response to

regional needs

Township

Economy

Road shows

Launch new

projects

Reinforce

messages

Continue with

campaigns

Launch new

projects in line

with target

market needs

Market

Research

Post analysis

campaigns

Brand research

Test brand

positioning –

Measure

awareness

levels

Post analysis

campaign

Customer

brand insights.

Track product

offering vs.

demand and

ROI.

Post analysis

campaign

Track product

loyalty and

relevance

Review

product

offering and

identify areas

of product

advancement

in line with

target market

needs as per

market

research.

87

22

5.4 Human Capital

The aim of Human Capital is to create capacity and capability to enable TEDA to effectively

execute its strategic goals. Human Capital ensures that the organisation’s people

management practices are aligned to the legislative framework and benchmarked

standards. The HR function has the responsibility to ensure that TEDA responds to its primary

objective which “cultivate and environment within which City of Tshwane can grow its

human capital and the economy”

Through Human Capital strategies, TEDA will contribute towards the following City of

Tshwane’s Strategic Objectives:

Promote shared economic growth and job creation; and

Continued institutional development, transformation and innovation

In order to take talent management strategies enhancement, Human Capital function must

strengthen all the areas of work illustrated below through professional capability, line

management empowerment and effective execution. To realise this, Human Capital at TEDA

will focus on the following functional aspects:

Figure 2: Functional aspects of HR

5.4.1 Human Resources Medium term Strategic Goals

In order for TEDA to become an employer of choice, the unit is driven by the following:

Strategic alignment of the human capital to ensure successful execution of mandate

Effective talent management strategy to attract and retain best calibre

Competency based and benchmarked talent management practices

Inculcating a culture of performance and on-going development

Best people management practices governed by an appropriate policy framework

TALENT ATTRACTION, SOURCING ONBOARDING AND ONGOING SUPPORT

ORGANISATIONAL DEVELOPMENT, INDIVIDUAL DEVELOPMENT AND DEVELOPMENT

EMPLOYEE WELLNESS PROGRAMMES

REMUNERATION AND BENEFITS STRUCTURE, RECOGNITION AND PROGRAMMES

EMPLOYEE / EMPLOYER RELATIONS MANAGEMENT

LEGISLATIVE COMPLIANT MANAGEMENT PRACTICES

HR POLICIES AND PROCEDURES

*STRATEGIC LEADERSHIP AND DIRECTION

*ALLOCATION OF ROLES AND RESPONSIBIILITIES

*FUNCTIONAL EFFECTIVENESS

88

23

5.4.2 Current Staff Profile

The table below indicates the employment equity profile within TEDA. Currently policies and

procedures have been implemented to ensure that the organisation complies with the

governing legislation.

The organization has realized a need to conduct a skills audit in order to determine the skills

and knowledge that the organisation currently has and identify the skills and knowledge gap

that the organisation has to bridge. The skills gap will provide an opportunity to inform the

type of training and development required and assist in targeting appropriate skills needed

during recruitment and selection process.

Table 1: Current Staff Profile

In the financial year 2013/14, there was a review of the TEDA Business Plan and 5 year

Strategy to define the business of TEDA and set targets. This process led to the re-alignment of

the organizational structure to reflect the enhancements on the Business Plan. Thus far, 35

posts have been filled and TEDA will continue acquiring and developing specialized skills.

In the current financial year job competencies are being defined through job profiling and

job evaluation exercises.

Table2: Staff Projections

Business Units

2013/14 Approved

posts as per the

structure

No. of filled posts No. of Vacant

positions

Office of the CEO 5 3 2

Company Secretary 3 3 0

Internal Audit 1 0 1

Risk and Compliance 3 0 3

Chie Financial Officer 11 8 3

Corporate Services 13 9 4

Asset Management 6 0 6

Trade and Investment 5 3 2

Projects Portfolio 7 3 4

Marketing and Communications 7 6 1

Total 62 35 26

Level No. Gender Race

M F A I C W

Executive 6 2 4 6 - - -

Senior Management 11 6 5 10 1 - -

Middle Management 7 1 6 7 - - -

Operational 9 5 4 9 - - -

Support 2 - 2 2 - - -

Total 35 14 21 34 1 - -

89

24

To create a culture of high performance and individual accountability TEDA will adopt the

following principles:

Scorecard based tool to ensure outputs are measurable and aligned to the

organisation’s goals

The model will be enhanced on a piecemeal basis to incorporate the 360 feedback,

on living organisational values and measurement of leadership competencies

The linking of employee development, career progression, succession planning and

reward systems

A remuneration structure will be managed in alignment with individual performance

90

25

6. SDBIP SCORECARD

TEDA contributes to the City’s Strategic Objective 2: Promote Shared Economic Growth and Job Creation. Below are the targets set for TEDA to

meet in the 2014/15 financial year.

Table 3: Contribution towards the SDBIP

Key Performance

Area

Output

Objective

Indicator Annual

Target

2014/15

Baseline as

of end of

mid-year

2013/14

Target

Quarter 1

Target

Quarter 2

Target

Quarter 3

Target

Quarter 4

Job Intensive

Economic Growth

Facilitate

economic

growth that is

labour

absorptive

Nr of job

opportunities

facilitated by the

TEDA

250

1000 62 62 63 63

Rand value of

investment

facilitated by the

TEDA

R500 Million R1 billion - - - R500 Million

Nr of SMME’s

and

entrepreneurs

supported by

TEDA

300 500 75 75 75 75

91

26

7. TEDA SCORECARD

The TEDA Scorecard is aligned to the strategic objectives of TEDA and its business units.

7.1. Strategic Objective 1:

To develop, facilitate and promote viable foreign and local investments into City of Tshwane

Contributing to:

Vision 2055 - Outcome 2: A growing economy that is inclusive, diversified and competitive; and

CoT Strategic Objective 2: Promote shared economic growth and job creation

Key Performance

Area No. Output Performance Indicator

Annual

Performance

Target Baseline Cumulative Quarterly Targets

2014/15 Q1 Q2 Q3 Q4

Trade and Investment

facilitation, promotion

and after care

1.1 Trade investment

intelligence acquired

Number of trade and

investment reports /

studies produced

1 2 - - 1 -

Number of export market

briefs produced 2 None 1 - 1 -

1.2 New and existing

investments attracted

and / or expanded

Number of investment

leads generated,

followed up and

facilitated

20 5 8 5 4 3

1.3 Export development and

promotion services

provided

Number of capacity

building initiatives held for

SMME export readiness

2 1 1 - 1 -

Number of outward and

inward trade and

investment missions

undertaken, hosted

and/or participated

2 1 1 - 1 -

92

27

7.2 Strategic Objective 2

To establish and maintain an economic Infrastructure Investment Vehicle.

Contributing to:

Vision 2055 - OUTCOME 5: An African Capital City that promotes excellence and innovative governance solution; and

CoT Strategic Objective 5: Improve financial sustainability

Key

Performance

Area

No. Output Performance

Indicator

Annual

Performance

Target Baseline Cumulative Quarterly Targets

2014/15 Q 1 Q2 Q3 Q4

Financial

Sustainability 2.1

TEDA’s Financial

sustainability

model

Development and

implementation of the

funding model with

multiple revenue

streams

Financial

sustainability

model

N/A - - Model

developed

Implementation

of the model

7.3 Strategic Objective 3: To identify, design, develop and manage projects with strategic economic and social benefits for the greater Tshwane community

Contributing to:



Key

Performance

Area

No. Output Performance Indicator

Annual

performanc

e target Baseline Cumulative Quarterly Targets

2014/15 Q 1 Q 2 Q 3 Q 4

Project portfolio

management

3.1 Development of

Cullinan Area

Needs and demand

assessment (desk top study)

conducted

1 None 1 - - -

Project Charter produced 1 None - 1 - -

Feasibility study 1 none 1

93

28

Contributing to:



Key

Performance

Area


Annual

performanc

e target Baseline Cumulative Quarterly Targets

2014/15 Q 1 Q 2 Q 3 Q 4

3.2

Advance Bio

manufacturing

Project Charter produced 1 None 1 - - -

Facilitate funding application 1 None - 1 - -

Facilitate the Feasibility Study

development 1 None - - - 1

3.3

Tshwane Agro-

processing Hub

Project Charter produced 1 None 1 - - -

Funding Application 1 None - 1 - -

3.4 Region 1 youth

greening project

Partnership Agreements

entered into 1 None 1 - - -

No. of participants trained

according to the agreement None - - 50

3.5 TITIIC Planning and execution of

TITIIC

Launch of

TITIIC

Conference

4th TITIIC

Project plan

and

monitoring

instruments

developed

and ratified

Project plan

implementat

ion and

reporting

Project plan

implementat

ion and

reporting

Launch in

May 2015

94

29

7.4 Strategic Objective 4: To develop and maintain a strategic immovable and property asset portfolio for maximum return on investment

Contributing to:



Key

Performance

Area


Annual

performance

target Baseline Cumulative Quarterly Targets

2014/15 Q 1 Q 2 Q 3 Q 4

Property

Management 4.1

Manage, develop and

facilitate strategic land and

building portfolio

Number of land parcels

identified for development 1 N/A - - 1 -

No. of buildings identified for

revitalisation 1 N/A - - - 1

7.5 Strategic Objective 5: To facilitate the implementation of agreements signed between CoT and key stakeholders.

Contributing to:



Key

Performance

Area


Annual

performance


2014/15 Q 1 Q 2 Q 3 Q 4

Establishment

and maintenance

of strategic

Partnerships

5.1

Facilitation of the

implementation of agreements

entered into by City

No. of initiatives implemented

to support the signed

agreement

1 N/A - - - 1

95

30

7.6 Strategic Objective 6:

To promote Tshwane as a viable investment destination through the implementation of an integrated Marketing and Communication

programme

Contributing to:



Key performance Area No. Output Performance Indicator

Annual

performance


2014/15 Q 1 Q 2 Q 3 Q 4

Implementation of

Marketing,

Communication and

Events programmes

6.1 City’s increased

competitiveness

Number of marketing

events hosted to promote

City’s competitiveness

1

SMME Fair

Youth

Entrepreneurship

drive.

- - - 1

6.2

TEDA positioned

and profiled as

brand

Number of internal and

external platforms used to

profile and position TEDA

12 3 3 3 3 3

96

31

7.7 Strategic Objective 7:

To establish and build TEDA as a strong and effective organization in the context of good governance best practice

Contributing to:


CoT Strategic Objective 4: Promote Good governance and active citizenry

Key

Performance

Area

No. Output Performance

Indicator

Annual

performance


2014/15 Q 1 Q 2 Q 3 Q 4

Building a

strong and

effective

organization

7.1

Corporate

governance

compliance

Unqualified audit

without repeated

findings

100%

100% 100% 100% 100%

7.2

A well-resourced

and performance

managed

workforce

supported by ICT

strategy

Establishment and

implement of good

human resource

practices;

Implementatio

n of selected

HR good

practices

Implementation

of PMDS for all

TEDA

employees

Development

of Talent

management

strategy

Development

of human

capital

model

Assessment of

HRM

processes for

automation

7.3

Risk Management

strategy

implemented

No. of strategic risk

monitoring reports

compiled and

submitted to the

Board

4

1

1 1 1

7.4

Systems and

Processes

improvement

Introduction of

systems and

processes

guidelines towards

improved TEDA

operations

Standard

operating

procedures

developed

- -

Systems and

process

assessment

Development

of standard

operation

procedures

97

32

8. FINANCE STRATEGY

The TEDA broad finance strategy is to develop a sound financial management to ensure that

the entity is able to fund its operations, generate income, and be a profitable organisation.

The income or profit generated will be used to attract investments as well projects that will

improve economic growth, shareholders value creation and value protection. This will ensure

sustainability, agility and governance.

Financial strategy of TEDA includes long term financial sustainability model that will ensure

that TEDA is less depended from COT. The model will provide;

• Business needs analysis – internal and external;

• Break even forecast

• Balance sheet forecast

• Profit and loss forecast

• Working capital forecasts

• Accurately determine how long the entity will take to be self-sustainable

• Which processes and systems to be implemented to be ensure self-sustainability

• Map consultative process that involves TEDA management in the identification of

viable revenue streams and sustainable income generating initiatives.

As stated in the SDA, TEDA is to pursue financial sustainability and as a result two projects

stated in the business plan will generate income for TEDA. The type of revenue within the

Type 1 project stated will be defined post feasibility/business case stage. The possibilities of

income will be derived from; leasing, equity, development facilitation, investment facilitation

and project management.

8.1 TEDA’s Envisaged Revenue Streams

Read with the understanding that every project is unique and the project partner strategies

change from time to time which impact on the type of income stream is deployed or

negotiated, the streams are as follows:

Equity deals

o Using the land value of the property as seed for Equity with a development

scheme for equity income.

Leasing

o Receiving rental income on properties which have been transferred to TEDA.

Grant applications

o Soliciting low interest loans for project implementation

Developing a fee-for-service structure

o This entails development facilitation, project management service fee

Soliciting in-kind support

o Obtaining donors without conditionalities attached

Using third-party funding

o Obtaining funding for a portion of a project, e.g. feasibility study funding

Borrowings based on collateral security from assets under TEDA’s care;

o Obtaining land and building assets which TEDA can leverage to borrow.

98

33

9. FINANCIAL IMPLICATION

Summary of the budget

Table 4: Budget Summary per economic classification

Description 2012/13 Allocation 2013/14 Allocation 2014/15 Allocation

Remuneration of Board

Members 1 954 000 3 543 572 2 190 522

Employee Costs 3 086 000 19 440 500 28 274 127

Admin and Operating

Expenditure 14 349 007 20 747 261 14 545 351

Marketing, Trade &

Investments - 3 664 510 990 000

Projects 5 610 993 14 160 993 1 500 000

TOTAL 25 000 000 61 556 836 47 500 000

TEDA submitted a budget request of R251 million for the financial year 2014/15 and 10%

increment for the two outer years (2015/16 & 2016/17). The aforementioned request was not

approved and a budget of R47.5million per annum for the MTREF: 2014/15; 2015/16 and

2016/17 was subsequently allocated.

The reprioritization exercise to accommodate unavoidable expenses such as employee

related costs, board fees and other operating costs taking into account inflation

adjustments, planned appointments and core business needs is depicted in the table

above.

Table 5: Staff Expenditure

TOTAL STAFF EXPENDITURE

SALARIES AND WAGES 2012/13 YEAR 2013/14 YEAR 2014/15

YEAR

Projected %

Growth/Decrease

Staff Remuneration 1 602 028 19 440 500 28 274 127 31%

TOTALS 1 602 028 19 440 500 28 274 127 31%

The total amount for salaries and wages growth is 31% due to the increase in filled posts that

will enable the entity to deliver on its mandate. The focus during the 2014/15 will be to

capacitate core functions. The projected salary and wages costs in 2014/15 will therefore

amount to R 28 274 127.

99

34

10. TEDA RISK REGISTER 2014/15

N

o

Conte

xt

Strateg

ic

Object

ive

Risk

Name

Risk

Own

er

Risk

Descripti

on

Root Cause Consequen

ce

Inher

ent

Risk

Score

Residual

Risk

(Current

)

Residual

Risk

(Desired

)

Residual

Risk

Gap

Controls Task Details

1 Huma

n

resour

ces

TEDA

SO 3

Incorrect

assessme

nt of

projects

CEO Inadequ

ate

clusterin

g and

sectoring

of

projects.

Lack of knowledge

to operate

model

Inflexibility/inappropr

iateness of

model

Insufficient resources

to apply the

model

Incomplete

projects

Cost

overruns

Loss of

stakeholder

support

leading to

diminished

relevance

of TEDA

67

Major

34

Minor

3

Insignific

ant

31

Minor

Project

Assessment

model

developed

Develop

procedure

manual

Task owner:

Executive

PPM

Due date:

30 June

2015

Conduct

training on

appropriat

e model

Task owner:

Executive

PPM

Due date:

Ongoing

Review the

assessment

model to

introduce

flexibility

and

appropriat

eness

Task owner:

Executive

PPM

Due date:

30

100

35

N

o

Conte

xt

Strateg

ic

Object

ive

Risk

Name

Risk

Own

er

Risk

Descripti

on


ce

Inher

ent

Risk

Score

Residual

Risk

(Current

)

Residual

Risk

(Desired

)

Residual

Risk

Gap


September

2014

2 Huma

n

resour

ces

TEDA

SO 5

Inadequa

te

stakehold

er

engagem

ent

CEO Internal

and

external

stakehol

ders.

Lack of

communication

amongst

key stakeholders

Unclear

communication

channels

with the main

shareholder

Duplication

of projects

and efforts

Missed

opportuniti

es

72

Major

36

Minor

7

Insignific

ant

29

Minor

Communic

ation with

key

strategic

stakeholder

s

Communic

ation

strategy

Develop

and

implement

a

stakeholder

engageme

nt strategy

Task owner:

CEO

Due date:

30

December

2014

3 Servic

e

deliver

y

TEDA

SO 7

Lack of

financial

sustainab

ility plan

CEO Limited

funding

allocate

d for

FY15.

Failure to raise

enough capital for

business

sustainability Lack of

revenue generating

model Inadequate

budget allocations

from CoT Limited

working capital

Inadequate

engagement with

other spheres of

government

Perception by CoT

that TEDA has a lack

of critical skills

Loss of

credibility /

Inability to

attract

investment

Inability to

effect

TEDA's

mandate

Closure of

TEDA Over

reliance on

CoT

funding No

job

opportuniti

es will be

created

Inability to

86

Critic

al

26 Minor 4

Insignific

ant

22 Minor Continuous

monitoring

on the

budget

and

performan

ce

Develop a

financial

sustainabilit

y plan Task

owner:

CFO Due

date: 30

December

2014

101

36

N

o

Conte

xt

Strateg

ic

Object

ive

Risk

Name

Risk

Own

er

Risk

Descripti

on


ce

Inher

ent

Risk

Score

Residual

Risk

(Current

)

Residual

Risk

(Desired

)

Residual

Risk

Gap


grow and

transform

the

economy

Inability to

create/est

ablish

foreign

market

opportuniti

es

Damage to

TEDA's

reputation

Inability to

deliver on

projects

Credibility

of

TEDATEDA

becoming

irrelevant

Reputation

al damage

Wasted

resources

Inability to

obtain

funding

from main

shareholde

r Delayed

ROI

102

37

N

o

Conte

xt

Strateg

ic

Object

ive

Risk

Name

Risk

Own

er

Risk

Descripti

on


ce

Inher

ent

Risk

Score

Residual

Risk

(Current

)

Residual

Risk

(Desired

)

Residual

Risk

Gap


4 Servic

e

deliver

y

TEDA

SO 1

Failure to

attract

investors

CEO Failure to

facilitate

investme

nt –

failure to

become

a one-

stop

investme

nt shop,

–

duplicati

ons of

functions

with CoT,

not

taking

advanta

ge

ofavaila

ble

marketin

g

platforms

, lack of

knowled

ge of

governm

ent

program

mes and

incentive

schemes

Lack of resources

Change in

government policies

lack of operating

model to respond to

mandate

Unfavourable

Global Economic

climate

Incorrect

targeting

of

investments

Investing

on

poor/low

ROI(Return

on

Investment)

Inability to

fulfill

mandate

Loss of

stakeholder

support

leading to

diminished

relevance

of TEDA

86

Critic

al

26 Minor 9

Insignific

ant

17

Insignific

ant

Project

Assessment

model

developed

Investment

assessment

framework

to be

developed

Task owner:

Executive

Trade and

Investment

Due date:

30

December

2014

Develop

investment

promotion

strategy

Task owner:

Executive

Trade and

Investment

Due date:

30

September

2014 To

package

investment

incentives

Task owner:

Executive

Trade and

Investment

Due date:

Ongoing

Employ

additional

103

38

N

o

Conte

xt

Strateg

ic

Object

ive

Risk

Name

Risk

Own

er

Risk

Descripti

on


ce

Inher

ent

Risk

Score

Residual

Risk

(Current

)

Residual

Risk

(Desired

)

Residual

Risk

Gap


capacity

Task owner:

Head of

Corporate

Services

Due date:

Ongoing

5 Huma

n

resour

ces

TEDA

SO 7

Inadequa

te

manage

ment of

corporat

e risk

within

TEDA

CEO Lack of own-defined

standard

operating

procedures

Lack of knowledge

of

governance

frameworks and

processes

Lack of

accountability

Qualified

audit

reports

67

Major

20

Insignific

ant

3

Insignific

ant

17

Insignific

ant

Companies

Act

PFMA

Approved

policies

and

procedures

of TEDA

MFMA

Revise and

finalise

organisatio

nal design

process

Task owner:

CEO

Due date:

30

December

2014

Ensure

policies

and

procedures

are in

place for

key

business

processes

Task owner:

CEO

Due date:

Ongoing

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39

N

o

Conte

xt

Strateg

ic

Object

ive

Risk

Name

Risk

Own

er

Risk

Descripti

on


ce

Inher

ent

Risk

Score

Residual

Risk

(Current

)

Residual

Risk

(Desired

)

Residual

Risk

Gap


6 Servic

e

deliver

y

TEDA

SO 1

Failure to

facilitate

and assist

investors

CEO Ability to

become

single

pointof

investor

support.

Inadequate

resources

(Budget,Human

capacity)

Duplications of

functions with CoT

Not taking

advantage of

available marketing

platforms Lack of

knowledge

ofgovernment

programmes and

incentive schemes

Inadequate support

for SMMEs

Lack of job

opportuniti

es Liability

to grow

and

transform

the

economy

Inability to

create/

establish

foreign

market

opportuniti

es

40Min

or

12

Insignific

ant

2

Insignific

ant

10

Insignific

ant

Linking

investors to

strategic

alliances

on a

project by

project

basis High

level

analysis of

investor

requiremen

ts in

Tshwane

Gain an

understand

ing of the

investor

environme

nt through

market

research

Task owner:

Executive

Trade and

Investment

Due date:

Ongoing

Develop

investor

after-care

programm

e Task

owner:

Executive

Trade and

Investment

Due date:

Ongoing

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40

11. CONCLUSION

The original key performance indicators reflected in the 2013/14 business plan have been

reviewed and captured clearly to ensure ease of measurability and performance

monitoring. TEDA’s own projects is a milestone in ensuring that TEDA develops some maturity

level and reduces the reliance on City’s initiated projects as has been the case in the past.

The challenge that TEDA faces currently and in the short term period is limited funding.

The key performance areas have been updated from the previous approved Business Plan

based on the current and future capacity that TEDA intends to employ. There is a need to

further engage with the Department of Economic Development (DED) on the cross – cutting

deliverables in order to establish the contribution to be made by TEDA and how TEDA will lay

claim to the outputs derived from the joint initiatives with DED.

The main challenges is the availability of resources, however, TEDA will come up with

innovative and sustainable ways of delivering on its mandate and maximizing its

performance.

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Chief Executive Officer’s quality certification

I, Solly Mogaladi, Acting Chief Executive Officer of Tshwane Economic Development Agency

hereby certify that the budget and supporting documentation have been prepared in

accordance with the Municipal Finance Management Act and the regulations made under

the Act, and that supporting documentation are consistent with the 2014/15 Business plan of

the entity, the Service Delivery Agreement with the parent municipality and the Tshwane

Vision 2055.

_________________________________

Solly Mogaladi

Acting Chief Executive Officer: Tshwane Economic Development Agency

Date: ______________

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