IPAP 2013/14 IMPLEMENTATION PROGRESS REPORT Trade and Industry - PowerPoint PPT Presentation

IPAP 2013/14 IMPLEMENTATION PROGRESS REPORT Trade and Industry Chamber Nedlac 03 October 2013

CORE OBJECTIVES CO RE OBJECTIVES O OF THE F THE IPAP IPAP  South Africa’s long -term vision of an equitable society is provided by the National Development Plan.  The IPAP is informed by this vision; and its interlocking transversal and sector- specific interventions constitute key pillars of the programmatic perspectives set out in a series of ‘drivers’ and ‘packages’ contained in the New Growth Path (NGP).  Government policy set out in these and other documents seeks to ensure a restructuring of the economy to set it on a more value-adding, labour-intensive and environmentally sustainable growth path . 2 2

IPAP TRANSVERSAL INTERVENTIONS 3 October 2013 IPAP 2013/14 - 2015/16 3

IPAP TRANSVERSAL INTERVENTIONS  Public Procurement  Section 9.3 of the PPPFA Regulations was used to specify minimum thresholds for the local production of DTT Antennas and Satellite DTH Dish Antennas which have been set at 100%  The City of Cape Town has awarded the tender to provide vehicles for its extended MyCiTi bus routes to Volvo SA. Volvo SA would provide 40 buses for the N2 express routes at a cost of R180m  Mercedes-Benz SA‟s Sandown Motor Holdings has won the tender to provide 134 busses for the phase 1B of JHB‟s Rea Vaya BRT system  MAN is supplying 80 new commuter buses to Great North Transport Limpopo‟s largest public transit operator.  ESKOM re-advertised the SWH tender with amendments on local content requirements (70% for the major components: tank and collector)  The instruction notes for Solar Water Heaters and valves & actuator products were circulated by the NT 4 4

IPAP TRANSVERSAL INTERVENTIONS  Public Procurement  Minister Davies officially launched SABS Local Content Verification Office on 5 July 2013 Renewable Energy Independent Power Producer Procurement  Programme  Department of Energy approved 19 bids in the second round.  The Solar photovoltaic sector accounts for 9 bids; wind for 7 bids; 2 Small Hydro and 1 Concentrated Solar Power (CSP).  The total preferred bidders‟ investment is estimated at R28.1 billion with a local content value of R11.8 billion and 7 385 jobs expected to be created Monitoring and evaluation of the performance of designated sectors   SABS has finalised the verification framework for rail rolling stock and busses  Standard bidding documents and annexures for awarded transversal textile and clothing tenders managed by the NT have been reviewed and forwarded to SABS for local content verification.  The dti working with the South African Clothing and Textiles Workers Union (SACTWU) in following up on tenders that are not compliant to the PPPFA regulations. Letters to this effect have been written to affected departments and Provincial Treasuries. 5 5

IPAP TRANSVERSAL INTERVENTIONS  Industrial Financing Manufacturing Competitiveness Enhancement Programme (MCEP)   Since inception a total of 387 enterprises have been approved for funding to the value of R2.6bn.  By end of August 2013, R192.8m had been disbursed. It is expected that there will be a significant increase in disbursements, due to the enhancements made on the application and claim forms as well as the interim IT System that has been successfully tested and implemented with effect from 07 August 2013.  Entities that were approved for funding have projected an investment value of R9.5bn and 118 193 jobs to be sustained in the agro- processing, metals, chemicals, plastic, electro- technical, printing, pharmaceuticals and film sectors  The IDC has approved Projects to the value of R350 million via the MCEP loan facility; approximately R70 million has already been disbursed 6 6

IPAP TRANSVERSAL INTERVENTIONS  Industrial Financing Continuing reorientation of the IDC to finance IPAP/NGP sectors   124 903 jobs were saved/created through IDC funding approvals 2009-2012  R12.9bn worth of approvals, expected to create/save ± 14,500 jobs  R5.5bn committed for investment in the Green Economy  R1.1bn committed for investment in the agriculture & forestry value- chains  R501m approved for clothing & textiles sector – forecast to save 2,400 jobs  R5bn private „green bond‟ concluded with the Public Investment Corporation to facilitate funding for businesses looking to invest in clean-energy infrastructure developments  The IDC sourced R4 billion from the Unemployment Insurance Fund to lower the cost of capital.  Government's Green Fund, administered by the DBSA, has processed 590 applications for sustainable development projects worth R10.9bn 7 7

IPAP TRANSVERSAL INTERVENTIONS  Developmental Trade Policy  ITAC has processed a variety of applications for a variety of products and some have been implemented by SARS  Inclusion of boxer shorts under rebate item 311.40/5208.4/01.05  Reduction of duty on engine CV joints  Increase the general rate of customs duty on wire nails from 5% to 15%  Rebate provision for aluminium slugs for impact extrusion used in the manufacture of aerosol cans  Insertion of rebate item 306.01/2815.11/02.06 for Sodium Hydroxide for use in the manufacture of Sodium Metasilicates  Reduction of customs duty on polyether-polyols from 10% to free Fraud, Illegal Imports, Sub-standard Goods   The new Automated Customs Management System was implemented by SARS on 18 August 2013 with mote 39 000 import declarations and 55 000 export declarations processed since inception.  Since the implementation of the new system, goods with a total trade value of R40 billion moved through South Africa‟s borders with more than R2.5 billion having been collected in duties  In KZN the Electrotech Division of NRCS has stationed two permanent inspectors at the port and Durban accounted for 71.5% of the border inspections in Q1. 8 8

IPAP TRANSVERSAL INTERVENTIONS  Developmental Trade Policy  For Q1 Electrotech conducted 277 border inspections and other border inspections were conducted at City Deep (19.9%), Port Elizabeth(6.5%) and Cape Town(2.1%)  Non-compliant products valued at R23 Million, were impounded in Durban, in addition to approximately 5,000 television sets embargoed at the Cape Town port, valued at about R2.1 Million  A number of standards and compulsory specifications were finalised and published  New Compulsory Specification for processed meats  Review of Compulsory Specification (VC 8043) for coal stoves and heaters and VC 9088) for shooting ranges completed.  The Legal Metrology Bill was certified and presented to Trade and Industry Portfolio Committee  Fuel cells standards have been published to date and more will be published in the next quarters  SANAS started with the development of an accreditation programme for Certification Bodies of Energy Management 9 9

IPAP TRANSVERSAL INTERVENTIONS  Competition Policy  Various settlements on price-fixing were reached, with the following companies and values:  R148 million with Lafarge in the cement industry  R88.5 million with FoodCorp in the wheat flour and maize-meal sub-sector;  R16.7 million with Astral Operations.  Oceana was fined R35 million for price-fixing and  Telkom was fined R649 million for market abuse  Fuel: The Commission referred the SASOL; SANS; HOSAF abuse of dominance case to the Tribunal and will be heard on the 20 May 2013  A major investigation into collusion and price-fixing in the construction industry was carried out, with a settlement reached in June 2013  Steel: Excessive pricing – Progress report finalised.  Telecommunication: Telkom fined R649m for market abuse.  A market inquiry into pricing practices in the private healthcare sector has been initiated 10 10

IPAP TRANSVERSAL INTERVENTIONS  Special Economic Zones  The SEZ Bill undergoing parliamentary processes and expected to be concluded by Q4  Feasibility studies for the PGM beneficiation hub in Tubatse (Limpopo) and Solar Corridor in Upington (NC) are underway.  Gauteng has finalised feasibility reports for the ICT hub and undergoing consultation process  Technical feasibility study finalised for Dube Trade Port (KZN)  Platinum Valley Hub: Arrangements to commence with pre-feasibility studies on the Platinum Valley and other identified SEZ are in progress  SEZ Capacity Building Programme has commenced with 30 officials from dti,SARS,NT, hosting municipalities embarking on SEZ training 11 11

27 February 2013 IPAP 2013/14 - 2015/16 12 IPAP SECTORAL INTERVENTIONS 1 Sec Sector tors s supp suppor orted ted si sinc nce e 20 2007 07: : scale scale up up and and br broa oade den n inter interven entions tions 25 June 2013 IPAP 2013/14 - 2015/16 12