A & D Industry Masterplan Inception report FINAL INCEPTION REPORT Development of the Aerospace & Defence Masterplan for South Africa March 2020 Josie Rowe-Setz BLUEPRINT (PTY) LTD, MAUDE STREET, NELSON MANDELA SQUARE, SANDTON Page | - Final A & D Industry Masterplan Inception Report Table of Contents 1. PURPOSE OF THIS ASSIGNMENT 6 1.2 OBJECTIVES OF THIS WORK 6 2. PURPOSE OF THIS REPORT 8 3. CONTEXT 8 3.1 HISTORICAL LINKS- SOUTH AFRICAN AEROSPACE AND DEFENCE 8 3.1.1 DEFENCE 9 3.1.2 AEROSPACE 11 3.1.3 SPACE 14 3.2 POLICY IMPERATIVES 16 4. APPROACH AND METHODOLOGY 17 4.1 APPROACH 17 4.1.1 STAKEHOLDER CONSULTATION & ENGAGEMENT 18 4.1.2 EVIDENCE GATHERING 19 4.2 METHODOLOGY 20 4.2.1 STAKEHOLDER ENGAGEMENT 20 4.2.2 RESEARCH AND ANALYSIS 22 4.2.3 SCOPE OF WORK & DELIVERABLES 25 4.3 TOOLS 27 4.3.1 SITUATIONAL ANALYSIS 27 4.3.2 CONSULTATION 28 4.4 PROCESS OVERVIEW 28 4.5 OUTPUTS 29 5. PROJECT MANAGEMENT 31 5.1 PROJECT RISK PROFILE 31 5.2 RESPONSIBILITIES OF THE CLIENT 32 5.3 PROJECT PLANNING- TIMELINE 32 5.4 PROJECT RESOURCING 34 5.5 PROJECT TEAM 34 5.6 PROJECT GOVERNANCE 38 i | Page A & D Industry Masterplan Inception Report ANNEXURES 41 ANNEXURE ONE- DOCUMENTS AND DATA FOR REVIEW 41 ANNEXURE TWO- STAKEHOLDER LIST FOR CONSULTATION SELECTION 45 ANNEXURE THREE- SITUATIONAL ANALYSIS DRAFT TOC 46 ANNEXURE FOUR- MASTERPLAN DRAFT TOC 48 ANNEXURE FIVE- LOCATING KEY SUB VALUE CHAINS 49 ANNEXURE SIX- TABLE OF DEFINITIONS TO DATE 51 Tables Table 1-Scope Specifics .................................................................................................................. 6 Table 2- Selected South African Developed Technologies .......................................................... 13 Table 3- Very preliminary overview of Value Chains for Review ............................................... 20 Table 4- Indicative List of Stakeholders for Consultation ............................................................ 21 Table 5- Research Methods Used ................................................................................................. 24 Table 6- Deliverables Table .......................................................................................................... 26 Table 7- Action & Implementation Plan- Example ...................................................................... 30 Table 8- Proposed Submission and Presentation Dates ............................................................... 32 Table 9- Project Team ................................................................................................................... 34 Table 10- Sample Document Review list ..................................................................................... 41 Table 11- Preliminary Table of Definitions .................................................................................. 51 Figures Figure 1- Inception Report Activities ............................................................................................. 8 Figure 2- High Level Aerospace Value Chain .............................................................................. 14 Figure 3- Overview South African Aerospace and Defence Economy ........................................ 16 Figure 4- High level Stages & Timing .......................................................................................... 23 Figure 5- Overview Timing .......................................................................................................... 25 Figure 6- Process Overview .......................................................................................................... 29 Figure 7- Master Plan Format ....................................................................................................... 29 Figure 8- Example GANTT Implementation Timeline ................................................................ 30 Figure 9- Sample Monitoring & evaluation plan .......................................................................... 31 Figure 10- Workflow & plan ........................................................................................................ 33 Figure 11- Governance Structure- Masterplan Process (current) ................................................. 38 Figure 12- Ice cream industry value chain .................................................................................... 50 ii | Page A & D Industry Masterplan Inception Report Acronyms Acronym Expanded Term ADMSA A& D Masterplan for South Africa AISI Aerospace Industry Support Initiative AMD Aerospace, Maritime & Defence Industry Association of South Africa APC Armoured Personnel Carrier ARMSCOR Armaments Corporation of South Africa ATNS Air Traffic and Navigation Services CAA Civil Aviation Authority CAASA Commercial Aerospace Association of South Africa CAMASA Commercial Aerospace Manufacturing Association of South Africa CAV Centurion Aerospace Village CFRTP Continuous Fibre Reinforced Thermoplastic Plastic CPUT Cape Peninsula University of Technology CSIR Council for Scientific and Industrial Research CTFL Clothing, Textiles, Footwear and Leather DBSA Development Bank of Southern Africa DHEST Department of Higher Education, Science and Technology DoD Department of Defence DoT Department of Transport DPE Department of Public Enterprises DPME Department of Planning, Monitoring and Evaluation DPRU Development Policy Research Unit DRDB Defence Research and Development Board DSI Department of Science and Innovation DTI Department of Trade and Industry DTIC Department of Trade, Industry and Competition DTPS Department of Telecommunications, & Postal Services EO Earth Observation ESEID Economic Sectors, Employment and Infrastructure Development ESOA Europe Middle East and Africa Satellite Operators Association iii | Page A & D Industry Masterplan Inception Report Acronym Expanded Term EW Electronic Warfare IADS Integrated Air Defence Solutions ICASA Independent Communications Authority of South Africa ICT Information & Communications Technology IDC Industrial Development Corporation IFF Identification, Friend or Foe IP Intellectual Property IPAP Industrial Policy Action Plan IPAP Industrial Policy Action Plan ISR Intelligence, Surveillance & Reconnaissance JASC Joint Aerospace Steering Committee M & E Monitoring & Evaluation MRO Maintenance, Repair and Overhaul NAC National Aerospace Centre NACoE National Aerospace Centre of Excellence NCACC National Conventional Arms Control Committee NDP National Development Plan NMU Nelson Mandela University NT National Treasury OEM Original Equipment Manufacturer OTR Overberg Test Range PBF Powder Bed Fusion PESTEL Political, Economic, Social, Technological, Environmental and Legal PIC Public Investment Corporation PPGI Public Private Growth Initiative R&D Research & Development RIS Reinvigorated Industrial Strategy SAA South African Airways SAAF South African Air Force SACAA South African Civil Aviation Authority SACSA South African Council for Space Affairs SADF South African Defence Force SADI South African Defence Industry SANDF South African National Defence Force SANSA South African National Space Agency SAPS South African Police Service SARA Small African Regional Aircraft SDG Sustainable Development Goal iv | Page A & D Industry Masterplan Inception Report Acronym Expanded Term SDP Sector Development Plan SEIAS Socio Economic Impact Assessment System SMART Specific, Measurable, Attainable, Realistic and Timely SMME Small, Medium and Micro Enterprise SOE State Owned Enterprise SUN Stellenbosch University SWOT Strengths, Weaknesses, Opportunities and Threats SWOT Strengths, Weaknesses, Opportunities and Threats TIA Technology Innovation Agency UAS Unmanned Aerial System UAV Unmanned Aerial Vehicle UCT University of Cape Town UKZN University of Kwazulu-Natal UWC University of the Western Cape WITS University of the Witwatersrand v | Page A & D Industry Masterplan Inception report 1. Purpose of this assignment The South African Aerospace and Defence economy has been identified by the Industrial Policy Action Plan (IPAP) since its inception and now in the Reinvigorated Industrial Strategy (RIS) as one of the 151 priority South African economic sectors for support and development. As a result, a Masterplan for this economy (sector) is required, which will, inter alia, • Protect and create jobs; • Deepen sector capabilities; • Expand exports; and • Prepare for policy change and related impact (if applicable) (the dti, 2018). An industry Masterplan is required which will provide a clear, agreed, pragmatic and implementable plan for the industry going forward, rooted in evidence and agreed by industry, government2 and organised labour in a coordinated approach to industry growth and development. 1.2 Objectives of this work The objective of this work is to develop an agreed-upon set of actions, with timeframes, that all stakeholders in the Aerospace and Defence economy will commit to implementing for the benefit of the sector and/or relevant sub sectors and value chains. The agreed scope is shown below. TABLE 1-SCOPE SPECIFICS Item Purpose Comment Comprehensive review of Establish empirical profile of Aerospace is made up of two the South African value the sector/industry; distinct sub sectors- chain for the Aerospace and Achieve agreement on the Commercial and Defence3- Defence industry. (This profile from stakeholders; and sectors underneath. includes Maintenance, More than one value chain Repair and Overhaul (MRO) will be supplied as well as the and aircraft structures, but overall chain. excludes the remainder