BUDGET PRESENTATION

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• BUDGET PRESENTATION
• March 2003
• Dr Alistair Ruiters
• Director-General

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The South African EconomyAssumptions underlying
the MTSF

•  
• South Africa has an open economy - international
  economic strategy is critical 
• South Africas growth and development is
  intertwined with Africas growth and development
   
• The state has an activist role in ensuring that
  economic growth and development benefits all
  South Africans 
• The linkage between economic growth and greater
  levels of employment and equity are not automatic
  - the state must develop and strengthen these
  linkages 
• The state can leverage greater outcomes and
  impact through partnerships with other economic
  actors
•  

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The South African EconomyAssumptions underlying
the MTSF

• The manufacturing sector can leverage economic
  growth and development across the economy 
• South Africa must grow the size of the market for
  its products and services  - domestic, regional,
  global
• Fair, competitive, and efficient markets are
  critical in providing a conducive environment for
  economic growth and development 
• Raising investment levels in the economy is the
  primary driver of economic growth
• The South African economy is dualistic in nature 

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the dtis Strategic Goals

• Accelerate economic growth
• Create new employment opportunities
• Reduce economic inequalities

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Key Performance Areas

• Increase in economic output
• Increase in employment
• Increase in the contribution of small enterprises
  to GDP
• Progress in achieving broad-based BEE, with
  emphasis on black women
• More equitable geographic spread of economic
  activities
• Increase in direct investment, with emphasis on
  investment in priority sectors
• Increase in the value and volume of exports, with
  emphasis on priority sectors
• Increase in investment in the drivers of South
  Africas future competitiveness - skills,
  technology and infrastructure  

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Implementing the StrategyTypes of dti offerings

• Policy
• Legislation and regulation
• Finance
• Procurement
• Information
• Partnerships

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the dti House
Enterprise and Industry Development Division
Trade and Investment South Africa
Executive Management Unit
External Relations Policy Co-ordination Unit
International Trade Development Division
Marketing Division
The Enterprise Organisation
Consumer and Corporate Regulation Division
Group Systems and Support Services Division
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The dti Strategy
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Increased efficiencyImprovement in the alignment
of budgeting,planning and implementation
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Allocation of funds per programmeIncluding
transfer payments
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The 3 year outreach in support of strategy
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Highlights of the 2003/04 budget

• Allocation of R44m to operationalise ITAC
• Continued support for Proudly SA - R4m
• New contribution for Co-operatives development -
  R3,5m per year for the next 3 years
• NAMAC - increase of R62m (344) for
• BRAIN and MAC roll-out programme
• Continued support for SAWEN - R2m
• Allocation of R6m for TWIB
• CIPRO - additional R9m to support trading
• entity until self-sustaining

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Highlights of the 2003/04 budget

• Additional R5m to Khula to ensure business
  development
• IDZ - increase of R86m (72) to a total of R205m
  for projects including John Ross, Coega, JHB Int
  Airport
• Reduction in SDIs as Provincial Governments
  become main drivers of the process
• TISA S21 integration into the dti
• EMIA increase of R5m from R135m to R140m for
  exporter assistance
• Enterprise development increased by R25m to R256m

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Highlights of the 2003/04 budget

• MDP incentives reduced by R60m as part of phasing
  out of old scheme
• Competitiveness Fund increased by R15m in support
  of IMS
• Contribution of R9m to MFRC to regularise the
  micro finance industry
• Allocation of R49m for marketing, awareness and
  customer care
• Allocation of R30m for the dti 1-stop campus and
  ICT PPP

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thank you for your continued support