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Economic Development Department on Annual Report 2012/13

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Economic Development Department on Annual Report 2012/13 ECONOMIC DEVELOPMENT DEPARTMENT Annual Report 2012 - 2013 CONTENTS ECONOMY HIGHLIGHTS ......................................................................................................... 2 EDD AND AGENCY HIGHLIGHTS.............................................................................................. 3 1. PART A: GENERAL INFORMATION ............................................................................... 4 1.1 Overview of the Report and Policy and Commitment Statement by Minister Ebrahim Patel ............................................................................................. 5 1.2 Statement by Deputy Minister Professor Hlengiwe Mkhize ....................................... 20 1.3 Overview of the Accounting Officer ........................................................................... 22 1.4 Entities reporting to the Minister .............................................................................. 24 1.5 Strategic Overview ................................................................................................... 25 1.6 Legislative and Other Mandates ............................................................................... 26 1.7 Organisational Structure .......................................................................................... 28 1.8 Contact Details ......................................................................................................... 29 1.9 List of Abbreviations ................................................................................................. 30 2. PART B: PERFORMANCE INFORMATION ...................................................................... 31 2.1. Accounting Officer’s Statement of Responsibility for Performance Information .......... 32 2.2. Overview of Departmental Performance .................................................................... 33 2.3. Strategic Outcome Oriented Goals ............................................................................ 37 2.4. Performance Information by Programme ................................................................... 38 2.5. Summary of financial information ............................................................................. 52 3. PART C: GOVERNANCE ............................................................................................... 57 3.1. Introduction ............................................................................................................. 58 3.2. Risk Management ..................................................................................................... 58 3.3. Eliminating Fraud and Corruption .............................................................................. 58 3.4. Minimising Conflict of Interest .................................................................................. 59 3.5. Code of Conduct ....................................................................................................... 59 3.6. Health Safety and Environmental Issues ................................................................... 59 3.7. Internal Control Unit ................................................................................................. 59 4. PART D: HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT ................................ 61 4.1. Legislation that Governs Human Resource Management ........................................... 62 4.2. Overview................................................................................................................... 62 4.3. Human Resource Oversight Statistics ....................................................................... 63 5. PART E: FINANCIAL INFORMATION ............................................................................. 85 5.1. Report of the Accounting Officer ............................................................................... 87 5.2. Accounting Officer’s Statement of Responsibility for Annual Financial Statements ................................................................................................ 93 5.3. Audit Committee Report for the year ended 31 March 2013 ...................................... 94 5.4. Report of the Auditor General ................................................................................... 96 Annual Financial Statements .................................................................................... 99 ECONOMIC DEVELOPMENT DEPARTMENT VOTE 28 ANNUAL REPORT 2012/2013 economY HIGHLIGHTS Annual employment grew by 199 000 new jobs Total employment 13,62 million Jobs held by women 5,96 million Jobs held by youth 5,77 million GDP annual growth R240 billion Size of GDP R3,2 trillion Infrastructure spending (estimate) R204 billion Investment grew by R50 billion (year on year) Manufacturing production grew by R14 billion (year on year) Agricultural production grew by R7,6 billion (year on year) Agricultural jobs grew by 83 000 jobs Employment growth since adoption of New Growth Path 647 000 jobs 2 ECONOMIC DEVELOPMENT DEPARTMENT ANNUAL REPORT 2012 - 2013 EDD AND AGENCY HIGHLIGHTS IDC funding approvals R13,1 billion IDC funding approvals for BBBEE companies R4,4 billion IDC funding disbursements to companies R15,9 billion – up by 87% Jobs created /saved through IDC funding 22 872 jobs Reduction in IDC project approval times (non-complex) 37% Sefa facilitated funding approvals R432 million Penalties imposed by the competition authorities R731 million Competition penalties grew by 33% Mergers where employment conditions were imposed 10 mergers Accords concluded 2 EDD staff numbers increased by 21% EDD budget spent (incl. transfers) 96,7% Jobs on PICC projects 180 000 PICC monitored infrastructure projects (value) R807 billion ITAC tariff increases 10 3 ECONOMIC DEVELOPMENT DEPARTMENT ANNUAL REPORT 2012 - 2013 PART A: GENERAL INFORMATION PART A: GENERAL INFORMATION 4 ECONOMIC DEVELOPMENT DEPARTMENT ANNUAL REPORT 2012 - 2013 PART A: GENERAL INFORMATION 1.1 overvieW OF THE report AND POLICY AND COMMITMENT Statement BY THE Minister It is my pleasure to table this Annual Report of the Economic Development Department (EDD), which sets out its key activities against its Annual Performance Plan. The Department was established in mid-2009 to assist the new Administration with coordination of policies in the economic sphere. By late 2010, the framework for that coordination had been formalised through the New Growth Path, which set out the steps to achieve equitable, employment-rich and dynamic economic development. The National Development Plan was adopted during the past financial year. It provides a 20-year vision, that gives a broad framework for the New Growth Path (NGP), the National Infrastructure Plan (NIP), the Industrial Policy Action Plan (IPAP) and other medium-term plans. Indeed, as noted by President Zuma in January 2013: “Some of the key programmes of the National Development Plan are already being implemented. These include the New Growth Path framework, with ECONOMIC DEVELOPMENT MINISTER its major infrastructure development programme, as Ebrahim Patel well as the state-led industrial policy.” The economy continued to grow and created 199 000 new jobs during the 2012/13 financial year, and 647 000 new jobs in the 30-month period since In this context, the role of the Economic the adoption of the New Growth Path in October Development Department (EDD) is to help drive 2010. (See sidebar, below, for a review of trends since government interventions to bring about a more the adoption of the NGP). equitable and dynamic economy, and to assist in In the financial year under review, from 1 April coordination across the state to achieve that aim. 2012 to 31 March 2013: The Department aims to ensure implementation • The GDP grew by 2,4%. For the first time, GDP of the NGP through catalytic interventions where is above R3 trillion, expanding by R240 billion in required; by supporting alignment of state agencies current rands, reaching R3,2 trillion in the year to around the common economic framework; and by the first quarter of 2013; working with stakeholders to develop commitments • Investment climbed by 5,3% in year on year that can bring about equitable and inclusive terms, with public investment rising by 8,5%. economic growth. Investment rose by R50 billion in the twelve months to March 2013. As a result, the KEY economic trends and investment rate climbed to 19,3% of GDP in the INTERVENTIONS first quarter of 2013, compared to 19,1% a year Despite the slowdown in the global economy in earlier; the past financial year, we have made considerable • Agricultural production grew by R7,7bn or 2% progress toward achieving our aims. with 83 000 more jobs over the period, the 5 ECONOMIC DEVELOPMENT DEPARTMENT ANNUAL REPORT 2012 - 2013 PART A: GENERAL INFORMATION biggest annual rise in agricultural employment in same time fast-track interventions that can have an 40 years; and immediate effect. • Manufacturing production rose by R14,3bn or Critical interventions to sustain more inclusive 2%, but the factory capacity utilisation of large growth in the past year included: firms dropped in the period. Manufacturing • The implementation of the National Infrastructure jobs grew by 31 000 over the period. Mining Plan, overseen by the Presidential Infrastructure however saw a 0,8% fall in production, mostly Coordinating Commission. Already, the past due to the global slowdown and the resulting year has seen an increase in the share of public fall in commodity prices as well as the disruption
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