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NWDC Corporate Plan 2021.22, 29 March 2021

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NWDC Corporate Plan 2021.22, 29 March 2021 Final Corporate Plan 2021/2022 ------------------------------------ “Together we move the North West Province forward” ----------------------------------------------------------- North West Development Corporation SOC Ltd Corporate Plan 2021/2022 Page 1 of 118 Statement by the Executive Authority It is hereby certified that this Corporate plan: Was developed by the management of the North West Development Corporation SOC Ltd (NWDC) under the guidance of the Board of Directors; Was prepared in line with the current Shareholder’s Compact of the NWDC Group; and Accurately reflects the performance targets which the NWDC Group will endeavour to achieve given the resources made available in the 2021/2022 budget. ___________________________ Mr Tumelo Pitso Acting Chief Financial Officer __________________________ Mr Radichaba Malapane Acting Chief Executive Officer ____________________________ Ms Monica Sentle Chairperson of the Board Approved for Submission to Provincial Legislature By: ____________________________ Mr Lufhuno Tshikovhi Head of Department ____________________________ MEC Kenetswe Mosenogi MEC for Economic Development, Environment, Conservation and Tourism ----------------------------------------------------------- North West Development Corporation SOC Ltd Corporate Plan 2021/2022 Page 2 of 118 Abbreviations & Acronyms Acronym Description Acronym Description CEO Chief Executive Officer MDC Maputo Development Corridor CFO Chief Financial Officer MIDZ Mafikeng Industrial Development Zone COMESA Common Market for Eastern and MTSF Medium Term Strategic Framework Southern Africa CPI Consumer Price Index NEMA National Environmental Management Act EAC East African Community NWP North West Province EAP Employment Assistance NWDC North West Development Corporation Programme EE Employment Equity PFMA Public Finance Management Act EEA Employment Equity Act PSA Public Servants Association of SA FDI Foreign Direct Investment SEZ Special Economic Zone FTA Foreign Trade Agreement SME Small Medium Enterprise(s) GDP Gross Domestic Product SMME Small Micro Medium Enterprise(s) HDI Human Development Index SOC State Owned Company IBP Index of Buying Power SOE State Owned Entity IHS Information Handling Services SWOT Strengths, Weaknesses, Opportunities (Market Regional Explorer) and Threats IO Information Officer ----------------------------------------------------------- North West Development Corporation SOC Ltd Corporate Plan 2021/2022 Page 3 of 118 Table of Contents Statement by the Executive Authority 2 Abbreviations and Acronyms 3 Part A: Overview of the North West Development Corporation Group 1. The establishment of the North West Development Corporation 7 1.1 Best practices in State Owned Entities from the Presidential Review Committee Report 7 1.2 Legislation empowering the NWDC to perform its functions 7 1.3 Core mandate of the NWDC 8 Table 1 Acts empowering the NWDC 8 1.4 Legislative compliance 8 1.5 Purpose 9 1.6 Vision 10 1.7 Mission 10 1.8 Supporting Values 11 Table 2 Core values and the interpretation thereof 11 1.9 Operating Principles 11 1.10 Business Standards and Operations 11 1.11 Organisational Environment 13 1.12 Moving forward 14 1.13 NWDC Stakeholders 14 Table 3 NWDC Stakeholder servicing 14 Part B: Corporate Governance 2. Organisational Structures within the NWDC Group 2.1 The structure and composition of the Board of Directors and its Committees 16 2.2 The administrative structure of the NWDC 17 2.3 The structure of the NWDC Subsidiaries 18 2.4 Members of the Board (Executive and Non-Executive) 19 2.5 Members of the Board: Academic Qualifications and Areas of Expertise 19 2.6 Information of the Senior Executives of the NWDC 21 Part C: Policy Mandates and Economic Environment 3. Policy Mandates 3.1 The National Development Plan (NDP) 22 3.2 The Medium-Term Strategic Framework (MTSF) 2014-2019 22 3.3 National Industrial Policy Framework (NIPF) and Industrial Policy Action Plans (IPAP) 24 3.4 Provincial Priorities 25 3.5 Local Linkages 25 3.6 Key priorities as outlined in the State of the Nation Address 2021 25 3.7 Key priorities outlined in the State of the Province Address 2021 25 4. PESTLE and SWOT Analysis ----------------------------------------------------------- North West Development Corporation SOC Ltd Corporate Plan 2021/2022 Page 4 of 118 4.1 Environmental Scan 29 Table 4 Examples of translation from Political trends to threats and opportunities 29 Table 5 Examples of translation from Economic trends to threats and opportunities 30 Table 6 Examples of translation from Social trends to threats and opportunities 30 Table 7 Examples of translation from Technological trends to threats and opportunities 31 Table 8 Examples of translation from Legal trends to threats and opportunities 31 Table 9 Examples of translation from Environmental trends to threats and opportunities 32 4.2 An analysis of the strategic objectives of the NWDC indicating Strengths, Weaknesses, 32 Opportunities and Threats Table 10 Strengths, Weaknesses, Opportunities and Threats (SWOT) 32 4.3 Economic Overview 34 4.3.1 The Global Economy 34 Figure 1 Overview of the Key World Economic Outlook Growth and Projections 34 4.3.2 South African Economy 34 Figure 2 Unemployment rate for South Africa and the North West Province 35 4.3.3 Overview of the North West Province Economy 35 Table 11 Key indicators South Africa, North West Province and District Municipalities (2019) 36 Table 12 North West Sector contributions to GVA-R (current prices) and Employment 2018 37 Figure 3 Average Annual Growth South Africa and Provinces 38 Table 12 Sectoral contribution by Province (% of provincial GVA current prices) 2019 40 Figure 4 Sector share contribution to the economy of the North West Province 40 4.3.4 Location Quotient of the North West Province and Key Industries 41 Table 14 Location quotients ≥ 1.1 (highlighted in yellow) by broad economic sector in the North 41 West Province (2019) 4.3.5 North West Trade 41 Table 15 North West trade values 42 Figure 5 Key import and export graphs 42 4.3.6 Top 10 positive rankings for South Africa as per the WEF Global Competitiveness 44 Rankings 2019/2020 4.3.7 Framework of fundamental economic guiding principles: A policy agenda towards 46 sustainable economic development 4.3.8 Policy Guidelines 46 4.3.9 Geographical Economy: Spatial economic growth context and challenges 46 Part D: Strategic Goals, Objectives and Performance Information 5. Strategic Goals: Long Term 48 Table 16 NWDC Strategic Objectives 48 6. Objectives 50 6.1 Key Performance Indicators and Targets for 2021/2022 51 Programme 1: Property Development & Management 51 Table 17 Performance Indicators and Annual Targets for Programme 1 51 Table 18 Quarterly Targets for Programme 1 52 Programme 2: Bojanala Special Economic Zone 52 ----------------------------------------------------------- North West Development Corporation SOC Ltd Corporate Plan 2021/2022 Page 5 of 118 Table 19 Performance Indicators and Annual Targets for Programme 2 53 Table 20 Quarterly Targets for Programme 2 53 Programme 3: SMME Development & Management 53 Table 21 Performance Indicators and Annual Targets for Programme 3 54 Table 22 Quarterly Targets for Programme 3 54 Programme 4: Trade & Investment Facilitation 55 Table 23 Performance Indicators and Annual Targets for Programme 4 55 Table 24 Quarterly Targets for Programme 4 56 Programme 5: Economic Programme Management 56 Table 25 Performance Indicators and Annual Targets for Programme 5 56 Table 26 Quarterly Targets for Programme 5 57 Programme 6: Administration and Governance 57 Table 27 Performance Indicators and Annual Targets for Programme 6 58 Table 28 Quarterly Targets for Programme 6 58 6.2 Technical Descriptions for Key Performance Indicators 2021/2022 59 Table 29 Technical descriptions for Key Performance Indicators for All Programmes 59 6.3 Historic Performance of the North West Development Corporation 67 6.4 Reflecting on Outcomes 67 Table 30 The 2019 Priorities, correlating NDP Chapters and relevance to the NWDC 68 6.5 Linking of Programmes between DEDECT and the NWDC 68 Table 31 Linkage of Programmes between DEDECT and the NWDC 69 Table of Annexures Annexure A Risk Management Strategy 70 Annexure B Financial Plan 80 Annexure C Environmental Plan 86 Annexure D Marketing & Communication Strategy 88 Annexure E Employment Equity Strategy 94 Annexure F Turnaround Strategy 101 Annexure G Transfer of Golden Leopard Resorts SOC Ltd to the North West Parks & Tourism 111 Board ----------------------------------------------------------- North West Development Corporation SOC Ltd Corporate Plan 2021/2022 Page 6 of 118 Part A Overview of the North West Development Corporation Group This section provides an overview of the North West Development Corporation SOC Ltd and the legislative universe that establishes it core mandates and prescribed obligations for compliance. 1) THE ESTABLISHMENT OF THE NORTH WEST DEVELOPMENT CORPORATION The North West Development Corporation SOC Ltd was established in 1999. The reasons for the establishment of the Public Entity is to plan, finance, coordinate, promote and carry out the economic development of the North West Province and its people in the fields industry, commerce, finance, mining, tourism enterprise-related activities and other business resulting in wealth and job creation while taking cognisance of aims and objectives of the National Development Plan of the Republic of South Africa. Information, Services or Goods provided: Property leasing Loans and bridging finance
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