Presentation to the Portfolio Committee on Trade and

Presentation to the Portfolio Committee on Trade and Industry the dti ’s 2 nd Quarter Performance Report 31 October 2017 Director-General Lionel October 1

PRESENTATION OUTLINE q Strategic Goals and Objectives q Economic Overview /Outlook q Key Achievements q Financial Performance q APP Performance Matrix 2

STRATEGIC IMPERATIVES Goals Objectives Grow the manufacturing sector to promote industrial development, job creation, investment and exports Vision 1. To facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation 2. Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives; 3. Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth; Improved conditions for consumers, artists and opening up of markets for new patents players 4. Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner; Strengthened capacity to deliver on the dti mandate 5. Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery. 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. 3

IC M O N O C E K O O L T U O 4

Global Economic Growth q The October 2017 World Economic Outlook revised the global output upwards by 0. 1 percentage point for 2017 and 2018. q. With growth outcomes in the first half of 2017 generally stronger than expected, upward revisions to growth are broad based, including for the Euro Area, Japan, China, emerging Europe, and Russia. q. Global output is projected to grow by 3. 6 % in 2017 & 3. 7 % in 2018 respectively. q. The projected growth in global output to be supported by the pickups in investment, trade, and industrial production, coupled with strengthening business and consumer confidence. q. SA projection for 2017 has been revised downward to 0. 7. National Treasury also revised the projections to 0. 7 for 2017 (MTBPS, 2017). q. The WEO October 2017 projections: Source: IMF, World Economic Outlook (October 2017) 5

SA Trade with the world q SA total exports to the world grew by almost 10% (R 27 billion) from R 269 billion in Q 1 2017 to R 296 billion in the Q 2 2017. SA Trade with the World 350 SA Trade Balance SA imports from World 300 q This was mainly due to growth in demand for Agriculture, Forestry and Fishing sectors (18%); Manufacturing (14%); and Mining (5%). 250 Billions q Germany, China; the US; India and Japan were the top five export destinations in the second quarter of 2017. SA exports to World 200 150 100 50 q SA imports from the world grew by almost 4% to reach R 273 billion in the Q 2 2017 from R 264 billion in Q 1 2017. The growth in imports was supported by high demand for manufactured goods (4 per cent) and mining products (14 per cent). (50) 1 2 3 4 1 2 3 4 1 2 2010 2011 2012 Source: Data & Graph-the dti 2013 2014 2015 2016 2017 Year q The trade balance has been at the positive territory in the last three quarters (Q 4 2016 to Q 2 2017). A trade surplus of R 23 billion was reported in Q 2 2017. 10

Green shoots and Risks to South Africa’s Economic Growth q The global economic recovery bodes well for SA’s GDP growth. q Low interest environment with minimal inflation risk has a potential to buoy the global economy including SA’s. q Possible implementation of growth-supporting policies in Europe and the US is another green shoot. q All these are possible drivers of growth in South Africa q Global risks range from the Geopolitical risks such as in North Korea; possible tightening or normalisation of monetary policies; possible currency wars amongst others. q The key downside risks on the domestic front is the deterioration in the fiscal strength, as well as the negative domestic political developments. q The likelihood of a further credit rating downgrade which increases the risk of foreign investors selling off their holdings in SA government bonds and other financial instruments - sharp capital outflows. 11

Green shoots and Risks to South Africa’s Economic Growth q Such an outcome would imply, a weaker rand; higher inflation; and possibly aggressive increase of interest rate. q All this would have an effect on consumer and business confidence, economic growth prospects and job creation 12

EY K 1 J TS N E M E 7 1 V 0 2 E I R E H B M C E A T P U L Y – 3 0 S E 13

INDUSTRIAL DEVELOPMENT 14

INDUSTRIAL DEVELOPMENT Agro-processing q The latest statistics are showing good signs of recovery in the primary sector which has had a significant contribution on the processing sector. About 1. 5% of the total growth of the GDP emanated from the Agro-processing and Forestry Sector. The macroeconomic impact of this will translate to an improved core inflation outlook; q the dti, through the CIP is funding the extension of the Brandvlei dam wall. The anticipated water harvest is 40 million cubic litres of water which is sufficient for 6 000 hectares of new vineyards of which 40% is designated for PDI’s. About 15 000 new jobs will be created an additional R 2. 1 billion to the GDP will be realised; q the dti supports the Wine Industry Value Chain Round Table (WICVRT) wherein the key focus is on investments in irrigation infrastructure such as dams and cannels; q Mpact Paper recycling division launched a Liquid Packaging plant which is a first in Africa. The project is valued at R 45 m. SG 1: Facilitate transformation of the economy to promote industrial development, 15 investment, competitiveness and employment creation

INDUSTRIAL DEVELOPMENT Aerospace and Defence q The Competition Commission recommended that State-owned defence and aerospace group Denel be allowed to buy local aero engine company Turbomeca Africa. SG 1: Facilitate transformation of the economy to promote industrial development, 16 investment, competitiveness and employment creation

INDUSTRIAL DEVELOPMENT Localisation q The Standard for Implementation of Regulation 8. 4 (localization of non-designated products) was finalized with the National Treasury and the circular is ready to be published for implementation by organs of State; q Solar Water Heaters tender for Do. E: Local content verification by SABS was conducted with eleven companies out of twelve and, all eleven suppliers met the required local content. Certificates were issued to all the companies except the one that is still not verified. SG 1: Facilitate transformation of the economy to promote industrial development, 17 investment, competitiveness and employment creation

INDUSTRIAL DEVELOPMENT Pharmaceuticals and Medical Devices q Roll-out of the Medical Device and IVD accreditation programme by SANAS, the MCC and the dti re ISO 13485; q Local manufacturers were awarded majority share of certain medical device tenders e. g. sutures; q The Inicio API initiative is being endorsed through SADC as one of the critical industrialization projects; q The Bio Africa 2018 was successfully launched in September 2017 and endorsed by BIO International. SG 1: Facilitate transformation of the economy to promote industrial development, 18 investment, competitiveness and employment creation

INDUSTRIAL DEVELOPMENT Metals Fabrication 1064 locomotive programme: q Transnet Freight Rail accepted 116 locomotives from CRRC- E Locomotive Supply (CSR) of which 76 were assembled locally in Koedoespoort. Furthermore, 153 locomotives from General Electric South Africa Technologies (GE) of which 147 were also assembled in Koedoespoort; q The first locomotives by Bombardier Transportation South Africa (BT) and CRRC Dalian Locomotive & Rolling Stock (CNR) are undergoing trials and additional test runs. In September 2017, three of the Class 23 E locomotives by BT pulled a train of 104 wagons loaded with manganese ore, over the Eagle’s Crag, the steepest track slot (12. 5%) on the Manganese Line from Kimberley to Port Elizabeth. SG 1: Facilitate transformation of the economy to promote industrial development, 19 investment, competitiveness and employment creation

INDUSTRIAL DEVELOPMENT Primary Minerals Processing and Construction q Sandvik launched its new LH 115 L, a 5 -tonne LHD in September 2017, this is a new product for the South African market and it is also the first product to be locally manufactured. This is a result of numerous consultations with the foreign OEM urging it to localise production; q Thakadu group have completed a Bankable Feasibility Study into the development of a high purity battery grade Nickel Sulphate (NISO 4) from SA platinum producer, Lonmin’s crude Nickel Sulphate stream. The project has received approval for Black Industrialist Scheme for R 50 million in September 2017; q The report on Energy Storage was completed by the dti /IDC in August 2017, identifying SA’s use cases for the product. SG 1: Facilitate transformation of the economy to promote industrial development, 20 investment, competitiveness and employment creation

INDUSTRIAL DEVELOPMENT Textiles, Clothing, Leather and Footwear q Mr Price is purchasing most of its footwear from Labora Shoe and exporting to their Nigerian and Australian footwear shops from the South African companies which include Caprini etc. ; q The National Bargaining Council for the Leather Industries (NBCLI) registered 15 new footwear companies which were previously non bargaining council compliant; q The South African Technical Textiles Cluster members continue to export technical fabrics like airbags and parachutes and army regalia into the African continent and into the rest of the world successfully. SG 1: Facilitate transformation of the economy to promote industrial development, 21 investment, competitiveness and employment creation

INDUSTRIAL DEVELOPMENT Incentives Development and Administration q Over R 9 billion of private sector investment was leveraged across all incentives; some of the approved projects that invested over a billion rand are VWSA, Com. IT Technologies, and the critical infrastructure for a retail centre in Kwa. Dukuza Local Municipality; q Over 7 500 jobs are projected to be retained and over 4 000 new jobs are projected to be created through these approvals; q Participated at the Manufacturing Indaba in Gauteng Smart Procurement and signed an MOU on the implementation of the Strategic Partnership Programme; q Amendments of AIS have been approved by the Minister. SG 1: Facilitate transformation of the economy to promote industrial development, 22 investment, competitiveness and employment creation

TRADE, INVESTMENT & EXPORTS 23

TRADE, INVESTMENT & EXPORTS q SA proposed amendments to the text of the BRICS Business Council Joint Declaration on Regulatory Cooperation on Standards was accepted and incorporated; q SA proposed text for CFTA TBT and NTB annexes adopted by TWGs; q SA proposal for CFTA tariff negotiation modalities adopted; q Export sales facilitated and recorded in the quarter amounted to the cumulative R 3. 753 billion to regions around the world due to concerted export promotion strategies; q Engagement with BRICS Business Council created impetus on driving the Council’s future strategy and operational plans with an MOU on Standards signed and creation of an Aviation Working Group established during the Summit; q Engagement with Iranian counterparts supported momentum in Iran-SA relations especially in normalising banking relations; q MOU between Chile and South Africa was signed by the South African Ambassador to Chile on mining and geology; SG 2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development objective 24

TRADE, INVESTMENT & EXPORTS q Achieved investment pipeline of R 42. 7 billion for the quarter; q the dti co-chaired the 3 rd South Africa- Indonesia Joint Trade Committee and inaugural Trade and Investment Committee Meetings with New Zealand Australia; q Launch of the AB In Bev packaging line in Alberton to the value of R 1. 3 billion and expansion of brewery in Rosslyn to the value of R 1. 5 billion in July 2017; q Launch of Mpact Recycling Plant in Boksburg in August 2017; q Outward Mission and Pavilion in CIFIT China and China Mining in September 2017; q A formal relationship between the World Bank and the dti was entered into to improve business processes that will lead to improved rankings in future; q Project planning for the implementation of One Stop Shops in Gauteng and Kwa. Zulu-Natal are at an advanced stage; SG 2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development objective 25

TRADE, INVESTMENT & EXPORTS q The Invest. SA Western Cape One Stop Shop was launched in September 2017 to enhance investor services and confidence; q The graph below illustrates the operational activities of the National One Stop Shop over the reporting period: SG 2: Build mutually beneficial regional & global relations to advance South Africa’s trade, industrial policy & economic development objective 26

SPECIAL ECONOMIC ZONES AND ECONOMIC TRANSFORMATION 27

SPECIAL ECONOMIC ZONES AND ECONOMIC TRANSFORMATION q Operator Permit for the Energy and Metallurgical Zone in the Musina-Makhado SEZ issued in September 2017; q SEZ Investment Seminar held in China, September 2017; q Gazetted the Atlantis SEZ for public comments before designation; q The issuing of CIPC B-BBEE Certificates is in place and being utilised by the Exempted Micro Enterprises (less than R 10 m turn over); q The Minister signed and approved an EEIP certificate in September 2017 a memorandum of agreement between the dti & Novus Africa in the Agriculture sector; q The Small Enterprise Finance Agency (SEFA) was granted the BEE Facilitation Status in September 2017 on a case by case basis. SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth 28

SPECIAL ECONOMIC ZONES AND ECONOMIC TRANSFORMATION Black Industrialist (BI) Programme q Seventeen (17) BIs approved for funding and 14 received non-financial support; q Maneli Pets launched in September 2017. Provincial Black Industrialist Framework Development q The Mo. U was signed between Free State Provincial Government and the dti SG 3: Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth 29

LEGISLATION AND REGULATION 30

LEGISLATION AND REGULATION Nine education and awareness workshops were held in Eastern Cape, Northern West and Mpumalanga Credit Life Insurance Regulations came into effect on 21 August 2017. The aim is to protect consumers from abusive practice by credit providers SG 4: Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner 31

ADMINISTRATION & CO-ORDINATION 32

ADMINISTRATION & CO-ORDINATION All eligible creditor payments processed well within 30 days, with 40. 4% of 5 079 creditors payment processed within 15 days and the remainder within 30 days. 50% of women in senior management 3. 3% people with disability (SMS) Senior Management Service SG 5: Promote a professional, ethical, dynamic and competitive and customer–focused working environment that ensures effective and efficient services delivery 33

E C N A RM O F 17 R 0 2 E P R E B L A TEM I P C E N S A 3 O N FI S A T A 34

FINANCIAL PERFORMANCE – 30 SEPTEMBER 2017 q Total DTI R 9. 3 billion allocated budget R 5 billion YTD budget R 3. 8 billion or 76% YTD spent against the YTD budget R 5. 4 billion or 59% available budget Distribution of the spending per economic classification This includes amongst others, the Manufacturing Development Incentives, which contribute to the development of manufacturing industries and the Special Economic Zones investment incentives which attract investments to further the objectives of the Industrial Development Action Plan. Compensation of employees 13% Goods and services 8% Incentive payments 39% Other transfers 41% Of the R 3. 8 billion spent by the department, transfers to incentives accounted for 39 per cent, followed by other transfers at 41 per cent. Compensation of employees as well as Goods and Services were at 13 and 7 per cent respectively. 35

FINANCIAL PERFORMANCE CONT… Table 1: Per programme Year-to-date (YTD) Programme Administration Revised Budget 2017/18 YTD Cash flow projections R’ 000 YTD Expenditure Variance (Budget less expenditure) variance R’ 000 % % Available budget % budget available R’ 000 % 356, 99 735, 214 363, 455 378, 222 (14, 767) (4. 06%) 2 48. 56% International Trade and Economic Development 119, 818 49, 682 50, 398 (716) (1. 44%) 0 69, 42 57. 94% Special Economic Zones and Economic Transformation 119, 410 49, 832 49, 046 786 1. 58% 4 70, 36 58. 93% 1, 819, 277 1, 347, 752 1, 341, 767 5, 985 0. 44% 0 298, 629 199, 763 197, 436 2, 327 1. 16% 3 5, 744, 437 2, 801, 940 1, 543, 168 1, 258, 772 44. 93% 387, 151 188, 732 212, 586 (23, 854) (12. 64%) 5 45. 09% 50, 859 25, 847 24, 563 1, 284 4. 97% 6 26, 29 51. 70% 5, 027, 003 3, 797, 186 1, 229, 817 24. 46% Industrial Development 477, 51 Consumer and Corporate Regulation Incentive Development Administration 101, 19 Total 33. 89% 4, 201, 26 9 73. 14% Trade and Investment South Africa 26. 25% 174, 56 9, 274, 795 5, 477, 60 9 59. 06% 36

FINANCIAL PERFORMANCE CONT… Compensation of employees q As at 30 September 2017, the department’s expenditure on Compensation of Employees was R 484 million or 109 percent of the YTD projections of R 445 million. However, it should be noted that although expenditure is more than the YTD projections, it is still within the allocated budget. Goods and services q As at 30 September 2017, expenditure on Goods and Services, compared to the YTD projections was 94 percent or R 285 million. A lag in the projections is mainly due to invoices for services rendered not yet received from the service providers. Stringent cost containment measures implemented by the department were also a contributing factor. 37

FINANCIAL PERFORMANCE CONT… Transfers and subsidies - Incentives q In pursuit of the department’s mandate to facilitate the transformation of the economy to promote industrial development, investment, competitiveness and employment creation, an amount of R 1. 5 billion or 54% was disbursed to companies. The variance of 46% is mainly due to: q Incentive claims are payable once all performance criteria agreed at application are met and verified. This results in a disjuncture between projections and actual expenditure which will be normalized by year end; q Outstanding compliance documentation as outlined in the guidelines; q Funding agreements being finalized on various infrastructure projects. 38

FINANCIAL PERFORMANCE CONT… Transfers and subsidies – other transfers q Included under other transfers are funds disbursed to public corporations, departmental agencies, non-profit organisations as well as foreign governments and international organisations. For the reporting period, an amount of R 1. 5 billion or 99% against the YTD projections of R 1. 6 billion was disbursed. Payments for capital assets q As at 30 September 2017, the department’s spending on payments for capital assets was R 16. 7 million against the YTD projection of R 13 million. However, it should be noted that although expenditure is more than the YTD projections it is still within the allocated budget. This was as a result of payments made for the Turnkey backup solution, which commenced in the 2016/17 financial year but finalised in the 2017/18 financial year. 39

X I R T A M P E P A NC 7 1 0 A 2 M R E R B O M F E T R P E E S P 1 J U L Y – 3 0 40

SUMMARY OF PROGRESS PER STRATEGIC GOAL 41

APP PERFORMANCE MATRIX DEPARTMENT OF TRADE AND INDUSTRY Programme / Sub-Programme / Performance Indicators 2017/18 Annual Target as per Annual Quarter 1 Target as Performance Plan per APP (APP) Quarter 1 Output – Validated Quarter 2 Progress Quarter 2 Target as per APP Quarter 2 Output – Preliminary Comments Reason for Deviation Corrective Action Programme 1: Administration 1. 1 Percentage (%) of 6, 80% staff turnover (unexpected) 1, 70% 1. 5% 1. 7% (3. 4% year to date) 1. 46% 1. 2 Percentage (%) of 3, 50% people with disability employed 1. 3 Percentage (%) of 50, 00% Women employed in senior management positions 3, 20% 3. 34% 3. 0% 3. 3% 48, 00% 50% 48. 50% 50 % 1. 4 Eligible creditors’ All eligible creditors’ All eligible creditors’ payments processed payments made within payments made within legal timeframes 30 days 30 days Turnover projected was N/A less than actual terminations against the annualised target of 1. 7% N/A One male retired in Q 2 N/A and establishment status was not influenced wrt Women in SMS N/A (43% of 4 144 creditors invoices were processed within 15 days and the remainder within 30 days) 1. 5 Number of outreach 65 outreach engagements and engagements exhibitions 1. 6 Number of 49 exhibitions outreach engagements and exhibitions' 20 12 20 22 More opportunities in the quarter N/A 12 24 17 8 High demand on public Targets to be revised participation to be expanded 42

APP PERFORMANCE MATRIX Programme / Sub-Programme / Performance Indicators 2017/18 Annual Target as per Annual Performance Plan (APP) DEPARTMENT OF TRADE AND INDUSTRY Quarter 2 Progress Quarter 1 Target as Quarter 1 Output – per APP Validated Quarter 2 Target as Quarter 2 Output – per APP Preliminary Programme 2: International Trade and Economic Development 3. 1 Number of status 2 status reports Nil N/A reports on regional produced on progress economic integration towards conclusion of T-FTA and CFTA trade negotiations 2. 2 Number of reports 2 status reports on Nil N/A on Implementation of implementation of the SADC-EU Economic EPA Partnership Agreement (EPA) 2. 3 Number of status 4 status reports 1 status reports on Global fora produced on G 20, (e. g. BRICS, G 20, engagements in Global AGOA and UK Brexit AGOA, UK Brexit) For a Programme 3: Special Economic Zones and Economic Transformation 3. 1 Number of SEZs 2 Nil N/A submitted to Minister for designation 3. 2 Number of 2 Nil N/A implementation reports on the Industrial Parks submitted to Minister 3. 3 Number of reports 2 Nil N/A on implementation of the B-BBEE Amendment Act and Regulations submitted to the Minister 3. 4 Number of new BIs 70 new BIs supported 22 Bis supported in key in IPAP sectors IPAP Sectors (5 sectors Financial and 17 Non. Financial) 1 status report produced on progress towards conclusion of trade negotiations (CFTA) Status report on implementation of SADC-EU EPA Comments Reason for Deviation Corrective Action N/A N/A 1 status report 1 Status report produced on G 20, AGOA, BRICS and UK engagements in Global Brexit For a N/A Nil N/A 1 status report produced on progress towards conclusion of trade negotiations (CFTA) Status report on implementation of SADC-EU EPA N/A 1 One (1) bi annual report N/A submitted to the Minister on the Revitalization of Industrial Parks 1 One (1) bi-annual report on N/A implementation of the B-BBEE Amendment Act and Regulations submitted to the Minister and signed off on 26 September 2017. 20 new BIs supported 31 BIs supported in IPAP N/A in IPAP sectors (17 Financial and 14 Due to increased advocacy there is an Non-Financial) increase in the number of applications from BIs 43

APP PERFORMANCE MATRIX DEPARTMENT OF TRADE AND INDUSTRY 2017/18 Annual Quarter 2 Progress Programme / Target as per Sub-Programme / Quarter 1 Target Quarter 1 Output Annual Performance as per APP – Validated Quarter 2 Target Quarter 2 Output Performance Plan Indicators as per APP – Preliminary (APP) Comments Reason for Deviation Corrective Action Programme 4: Industrial Development 4. 1 New iteration of IPAP submitted to Minister for tabling in Cabinet annually Annual Rolling IPAP 2018/19 submitted to Minister for tabling in Cabinet March 2018 Launch the Annual Rolling IPAP 2017/18 Launched the Annual Rolling IPAP 2017/18 on 08 May 2017. Nil N/A N/A 4. 2 Number of Four implementation reports on IPAP tabled at Minister’s Review Meetings per year 1 1 IPAP Q 4 report prepared and presented to the Minister on 10 April 2017. 1 1 IPAP Q 1 report prepared for the Ministers review meeting. N/A 4. 3 Number of designation requests prepared for Minister per year Nil Two (2) designation 1 requests prepared for Minister i. e. Pumps and MV Motors; and Industrial Lead Acid Batteries. One (1) designation N/A request prepared for Minister i. e. 1) Rail Permanent Way sector N/A Two 44

APP PERFORMANCE MATRIX DEPARTMENT OF TRADE AND INDUSTRY 2017/18 Annual Target Programme / Quarter 1 as per Annual Sub-Programme / Target as Performance Plan Performance Indicators per APP (APP) Programme 5: Consumer and Corporate Regulation 5. 1 Number of Socio. Four SEIAS reports on Nil Economic Impact Companies, Gambling, Assessment System Liquor and Credit (SEIAS) reports Amendment Acts (previously RIA reports) developed for Minister’s approval 5. 2 Number of Bills developed for Minister's approval 5. 3 Number of education and awareness workshops on policies and legislation conducted and report produced for Ministers approval 6 Bills on Companies, Nil Gambling, Liquor, Credit, Copyright and Performers Protections Amendment Acts developed for Minister’s approval 24 education and 6 awareness workshops on policies and legislation conducted and report produced for Ministers approval Quarter 2 Progress Quarter 1 Output – Validated Certified SEIAS reports for the Liquor and Copyright Amendment Bills. Draft SEIAS reports on the debt relief policy, Gambling and Companies Amendment Bills developed Quarter 2 Target as per APP Quarter 2 Output – Preliminary 4 (First Draft) SEIAS 2 SEIAS reports on Companies, Companies and Gambling, Liquor and Amendment Bills certified by Credit Amendment Acts DPME developed SEIAS reports on Liquor Amendment Bill presented to the NEDLAC Task Team Copyright Amendment Bill and Performers 6 (First Draft) Bills on Protection Amendment Bills: Companies, Gambling, Presented the Bills before the PC of Arts Liquor, Credit, and Culture. Copyright and Companies Preparation is being done for Performers Protections the Bill to be presented to ESEID Cluster. Amendment Acts Credit: National Credit Policy Review on developed for approval Debt Relief drafted and approved by the DG and the Minister for tabling in Parliament. Amendment Bill was presented at the ESEID DG’s cluster requesting approval to table before Cabinet. Gambling Amendment Bill was presented at the ESEID. The Liquor Amendment Bill was presented at the ESEID DG’s cluster requesting approval to table before Cabinet Public hearing and deliberations on Copyright Amendment Bill held in Parliament 7 9 6 Comments Reason for Deviation Corrective Action SEIAS report on Credit Amendment Bill will only be developed once the request has been received from the Portfolio Committee for the report to be developed. Portfolio Committee decided to focus on Copyright Amendment Bill Once the request is received for the Portfolio Committee the SEIAS report will be developed. Once a directive is received from parliament the Performers Bill will be fast tracked Draft Companies Amendment Bill developed for tabling in ESEID (Cluster) Draft Credit Amendment Bill has been developed Final Draft Gambling Amendment submitted to State Law Advisors A briefing on the final draft Liquor Amendment Bill held Municipalities N/A requested additional areas to be visited 45

APP PERFORMANCE MATRIX Programme / Sub-Programme / Performance Indicators DEPARTMENT OF TRADE AND INDUSTRY 2017/18 Annual Quarter 2 Progress Target as per Quarter 1 Target as Quarter 1 Output Annual Quarter 2 per APP – Validated Performance Plan Target as per Quarter 2 Output (APP) APP – Preliminary Programme 6: Incentive Development and Administration 6. 1 Value (Rand) of R 15 bn R 2 bn projected investments to be leveraged from projects/enterprises approved 6. 2 Projected 3000 600 number of new jobs supported from enterprises approved 6. 3 Projected 3000 600 number of jobs to be retained from approved enterprises 6. 4 Number of 800 150 enterprises/projects approved for financial support across all incentives Programme 7: Trade and Investment South Africa 6. 5 Number of 784 228 companies assisted under EMIA in supporting value added exports Programme 8: Investment South Africa. 16 Value (Rand) of R 45 bn R 10 bn investment projects facilitated in pipeline Comments Reason for Deviation Corrective Action R 3. 9 bn R 4 bn R 9. 2 bn The high value of projected investments to be created were from AIS, BPS, and CIP approved projects N/A 1 923 1200 4554 Approved AIS, BPS and CIP projects were both capital and labour intensive N/A 2 494 1200 7782 Approved AIS projects are sustaining high number of jobs N/A 151 200 238 Approved EMIA projects contributed to more than half of approved projects N/A 163 companies benefited financially from EMIA 197 150 companies benefited financially from EMIA ITI DRC deferred to Q 3 following N/A the advice from the Ambassador. The DRC government was in the process of improving their business environment policies R 14. 38 bn R 11 bn R 42. 7 bn Two large scale infrastructure projects in investment pipeline N/A 46

KE YA LEBOGA KE A LEBOHA KE A LEBOGA NGIYABONGA NDIYABULELA NGIYATHOKOZA NGIYABONGA INKOMU NDI KHOU LIVHUHA DANKIE THANK YOU 47