DED Strategy Plan 2014 - 15 2018 - 19

STRATEGIC PLAN
2014 - 2019
FOREWORD BY THE MEC
The premier of the Gauteng Provincial Government announced the ten pillar programme which constitutes the core
mandate of the fifth administration of government. The aim of the Gauteng Department of Economic Development
is to radically transform, modernise and re-industrialise the economy of Gauteng. Radical transformation,
Modernisation and Reindustrialisation are the main drivers in addressing the country`s triple challenge of poverty,
inequality and unemployment.
With its continuous efforts, the department will seek to transform, modernise and re-industrialise Gauteng in order
build a seamlessly integrated and economically inclusive City Region by:
▪ Providing an enabling policy and legislative environment for equitable economic growth and development;
▪ Revitalise Gauteng’s township economies;
▪ Build new smart, green, knowledge-based economy and industries;
▪ Ensure decent employment and inclusion in key economic sectors
▪ Facilitate radical economic transformation, modernisation and re-industrialisation
▪ Include the marginalised sectors of women, youth and persons with disabilities in mainstream economic
activities; and
▪ Establish appropriate partnerships for delivery and ensure the DED effectively and efficiently delivers on its
mandate.
During his 2015 State of the Nation Address, the President of South Africa, Honourable Jacob Zuma said that,
“Economic transformation to unlock growth also means improving the support provided to small enterprises
especially township and rural enterprises which will promote economic activities at local level.”
The department as part of the revitalisation scheme, will intensify efforts to support SMME`s as key drivers of growth
and mainstream the township economy. Strengthening the capacity of the GPG to direct economic development
and enhance the competitiveness of strategic economic sectors, the department will also continue to support the
automotive sector to accelerate the development of sustainable SMME`s within the vehicle assembly industry.
The Premier of Gauteng, honourable David Makhura, in his 2015 SOPA, adopted the five development corridors as
the drivers of radical economic transformation, decisive spatial transformation and re-industrialisation. The second
major lever to change the economy and space of the Gauteng City Region will be through a massive and well-
coordinated infrastructure investment programme.
The organisational structure of the department will be assessed for delivery against its focused mandate for the fifth
term. We will however, retain the approach of a departmental nerve centre that primarily guides, co-ordinates and
oversees implementation by a set of implementing agencies namely:
▪ Gauteng Growth and Development Agency (GGD);

▪ Gauteng Enterprise Propeller (GEP);
▪ Gauteng Tourism Agency (GTA); and
▪ Gauteng Gambling Board (GGB).
A full range of programmes and projects that will be implemented during the period 2014-2019 MTSF are detailed
in the Annual Performance Plan and Programme of Action for each year. The department identified key game
changers in economic development activities.
Therefore the department will during the period above work tirelessly in contributing to the service excellence of
our province and the staff will be performance focused with results based evidence information to ensure that the
departmental mandate is effectively realised.
Lebogang Maile (MPL)

MEC for Economic Development, Environment, Agriculture and Rural Development
STRATEGY PLAN 2014/15_2018/19
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OFFICIAL SIGN OFF
It is hereby certified that this Strategic Plan:
▪ Was developed by the management of Department of Economic Development under the guidance of MEC:
Mr. Lebogang Maile;
▪ Takes into account all the policies, legislation and other mandate for which the Department of Economic
Development is responsible; and
▪ Accurately reflects the strategic oriented goals and objectives in which the Department of Economic
Development will endeavour to achieve over the five year period 2014 - 2019.
Mr. Branham Francis Signature: __________________________

Head Official Responsible for Planning Date: 05 March 2015
Mr. Kgomotso Mojapelo Signature: _________________________

Chief Financial Officer Date: 05 March 2015
Ms. Phindile Mbanjwa Signature: __________________________

Accounting Officer Date: 05 March 2015
MEC Lebogang Maile Signature: __________________________

Executive Authority Date: 05 March 2015
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TABLE OF CONTENTS
FOREWORD BY THE MEC ........................................................................................................................................ 2
OFFICIAL SIGN OFF ................................................................................................................................................... 4
ABBREVIATIONS.........................................................................................................................................................5
PART A: STRATEGIC OVERVIEW............................................................................................................................ 6
INTRODUCTION ........................................................................................................................................................ 6
1. Vision ................................................................................................................................................................................................................... 6
2. Mission ............................................................................................................................................................................................................... 6
3. Values ................................................................................................................................................................................................................ 6
4. Legislative and other Mandate ...........................................................................................................................................................7
4.1 Legislative Mandate ............................................................................................................................................................................7
4.2 Policy Mandates .................................................................................................................................................................................. 8
4.3 Relevant Court Rulings ................................................................................................................................................................... 9
4.4 Planned Policy Initiatives ............................................................................................................................................................... 9
5. Situational Analysis ..................................................................................................................................................................................10
5.1 Performance Environment .........................................................................................................................................................10
5.2 Organisational Environment .....................................................................................................................................................15
6. Description of the Strategic Planning Process .......................................................................................................................15
7. Strategic Outcome Oriented Goals................................................................................................................................................16
PART B: STRATEGIC OBJECTIVES ......................................................................................................................18
8. PROGRAMME 1: ADMINISTRATION ...............................................................................................................18
8.1 Strategic Objectives ........................................................................................................................................................................18
8.2 Resource Consideration ..............................................................................................................................................................18
8.3 Risk Management ............................................................................................................................................................................19
9. PROGRAMME 2: INTEGRATED ECONOMIC DEVELOPMENT SERVICES ............................................ 20
9.1 Strategic Objectives ........................................................................................................................................................................ 20
9.2 Resource Consideration.............................................................................................................................................................. 22
9.3 Risk Management ............................................................................................................................................................................. 23
10. PROGRAMME 3: TRADE AND SECTOR DEVELOPMENT ........................................................................23
10.1 Strategic Objectives ......................................................................................................................................................................24
10.2 Resource Consideration ........................................................................................................................................................... 25
10.3 Risk Management ......................................................................................................................................................................... 25
11. PROGRAMME 4: BUSINESS REGULATION AND GOVERNANCE ..........................................................26
11.1 Strategic Objectives ................................................................................................................................................................ 26
11.2 Resource Consideration .......................................................................................................................................................27
11.3 Risk Management .................................................................................................................................................................... 29
12. PROGRAMME 5: ECONOMIC PLANNING ..................................................................................................29
12.1 Strategic Objectives ................................................................................................................................................................. 30
12.2 Resource Consideration ........................................................................................................................................................32
12.3 Risk Management ......................................................................................................................................................................33
PART C: LINKS TO OTHER PLANS ......................................................................................................................34
13. Links to the Long-Term Infrastructure and other Capital Plans ........................................................................34
14. Conditional Grants..........................................................................................................................................................................34
15. Public Entities .....................................................................................................................................................................................34
16. Public-Private Partnerships .......................................................................................................................................................34
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ABBREVIATIONS
APP Annual Performance Plan
BRICKS Brazil, Russia, India, China, South Africa
CEO Chief Executive Officer
CFO Chief Finance Officer
COH WHS Cradle of Humankind World Heritage Site
COJ City of Johannesburg
DDI Direct Domestic Investment
DED Department of Economic Development
DTI Department of Trade and Industry
FDI Foreign Direct Investment
G2055 Gauteng 2055
GCR Global City Region
GDP Gross Domestic Product
GEGDS Gauteng Employment Growth Development Strategy
GEP Gauteng Enterprise Propeller
GGB Gauteng Gambling Board
GGDA Gauteng Growth and Development Agency
GLB Gauteng Liquor Board
GPG Gauteng Provincial Government
GTA Gauteng Tourism Authority
HOD Head of Department
HR Human Resources
ICT Information Communications Technology
IDP Integrated Development Plan
IEDS Integrated Economic Development Services
IGR Inter-Governmental Relations
LED Local Economic Development
MEC Member of Executive Council
MTEF Medium Term Expenditure Framework
NDP National Development Plan
NPA National Programme of Action for Children Framework
PFMA Public Finance Management Act
SLA Service Level Agreement
SMME Small, Medium and Micro Enterprises
SONA State of Nation Address
SOPA State of Province Address
TER Township Economic Revitalisation
TMR Transformation, Modernisation and Re-industrialisation
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PART A: STRATEGIC OVERVIEW
INTRODUCTION
The crux of DED’s Strategic Plan for 2014-2019 is the theme of radical economic transformation to address the triple
challenges of poverty, inequality and unemployment. Specific proposals and outcomes that guide radical economic
transformation to address the triple challenges are contained in the NDP, the Gauteng 2055 (G2055) discussion
document, President Jacob Zuma’s 2014 State of Nation Address (SONA) and Gauteng’s Premier Makhura’s State of
Province Address (SOPA).
DED 2015/16-2018/2019 strategic plan is derived from the objectives in the NDP and G2055 and as pronounced
by the President and the Premier of Gauteng. During 2014, DED reviewed its vision and adopted the following
vision: “A radically transformed, modernised and re-industrialised economy in Gauteng, manifesting decent
work, economic inclusion and equity.” This revised vision of the department is derived from the key planning
documents outlined above. Gauteng can only become a vibrant, sustainable economic centre and gateway if
there is radical transformation, modernisation and re-industrialisation of its economy in a manner that creates and
sustains decent employment.
The concept of equitable growth and prosperity presupposes equal participation of all people, with all participations
reaping equal benefits. This document recognises the central role of economic growth and development in creating
a better life for all during the second phase of the country’s transition from apartheid to a national democratic
society and builds on the achievements of the past 20 years of democratic governance of the country.
1. VISION
A radically transformed, modernised and re-industrialised economy in Gauteng, manifesting decent work, economic
inclusion and equity.
2. MISSION
The mission of the DED in pursuit of its vision is to:
▪ Ensure radical transformation, modernisation and re-industrialisation of the Gauteng economy;
▪ Provide an enabling policy and legislative environment for equitable economic growth and development;
▪ Develop and implement programmes and projects that will:
▪ Revitalise Gauteng’s township economies;
▪ Build new smart, green, knowledge-based economy and industries;
▪ Ensure decent employment and inclusion in key economic sectors;
▪ Facilitate radical economic transformation, modernisation and re-industrialisation;
▪ Include the marginalised sectors of women, youth and persons with disabilities in mainstream economic
activities; and
▪ Establish appropriate partnerships for delivery and ensure the DED effectively delivers on its mandate.
3. VALUES
These values are informed by the vision and mission of the department namely:
▪ Serve as a centre of excellence in leading radical economic transformation, modernisation and re-
industrialisation of Gauteng’s economy;
▪ Provide ethical, consultative and people-focused services;

▪ Facilitate equity, redress and access to economic opportunities and decent employment;
▪ Ensure that Gauteng’s economic profile reflects its demographic profile;
▪ Practice transparent, participatory and good governance at an internal level; and
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GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT
▪ Foster high levels of professionalism, innovation, effectiveness, efficiency and the practice of Batho Pele
amongst the staff of DED and all its implementation agencies.
4. LEGISLATIVE AND OTHER MANDATES

4.1. LEGISLATIVE MANDATE
ACT RELEVANCE TO THE DED
Constitutional Mandate The South African Constitution requires that all spheres of government work
together to address poverty, unemployment, inequality, underdevelopment,
marginalisation of individuals and communities and other legacies of apartheid
and discrimination. The constitutional obligations of GPG and its departments,
including the DED, are effected in a number of Policies and Acts.
Credit Agreements Act, 1980 Regulates certain transactions, i.e. purchase or lease of certain moveable goods
and services, on credit.
Business Act, 1991 Provides for licensing and carrying on of business.
Sales and Services Matters Controls sales of goods and rendering of services and appointment of the
Amendment Act, 1995 Controller. The Controller responsible for display of markings and prices and how
goods are sold on auction.
World Heritage Convention Act, Provides for the regulation and establishment of World Heritage Sites, the
1999 establishment of Authorities and the granting of additional powers to existing
organs of state.
Municipal Systems Act, 2000 Guides implementation of Local Economic Development (LED) initiatives,
Integrated Development Plans (IDP) and Spatial Development Frameworks
Convention Concerning the Provides for protection of cultural heritage, assures conservation and protection
Protection of the World Cultural of world heritage and making recommendations to nations concerned.
and Natural Heritage (adopted
by the General Conference
UNESCO on 16 November 1972
and by the RSA on 10 July 1997)
National Environmental Protects the conservation of ecologically viable areas and pro ides for inter-
Management: Protected Areas governmental collaboration and public consultation on matters concerning
Act, 2003 protected areas.
Gauteng Gambling Act, 1995, Provides for licensing of casinos, bingo games, lotteries, totalizators, betting pools
1996, 2001 and for the restriction, regulation and control of gambling.
Gauteng Unfair Business Provides for investigation, prohibition and control of unfair business practices,
Practices Act, 1996 protection of consumers, establishment of a Consumer Affairs Office and
municipality consumer advice offices.
Gauteng Tourism Act, 2001 Establishes the Gauteng Tourism Authority and provides for the sustainable
development and improvement of tourism in Gauteng; registration,
classification and grading of hotels; registration of restaurants and other types of
accommodation and the licensing of tour operators, guides and couriers.
Gauteng Liquor Act, 2003 Controls retail and supply of liquor; establishes the Gauteng Liquor Board, local
committees and Liquor Trade Association and regulates application of licences
and granting of different kinds of licences.
Blue IQ Investment Holding Act, Manages various projects through various enterprises.
2003
Gauteng Intergovernmental Promotes co-operation between all three spheres of government’s fiscal,
Fiscal Relations Act, 1997 budgeting and financial matters and prescribes process for determining equitable
sharing and allocation of revenues raised nationally.
Township Planning and Establishes the Town Planning Appeal body.

Township Ordinance, 1986
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ACT RELEVANCE TO THE DED
Development Facilitation Facilitates land development applications.

Act,1995
Less Formal Township Fast-tracks less formal township establishment.

Establishment Act, 1991
Preferential Procurement Policy Provides a framework for the implementation of procurement policies.
Framework Act, 2000
Broad Based Black Economic Provides a framework for black economic empowerment.
Empowerment Act, 2003
Companies Act, 1983 as Consolidates and amends law relating to companies.

amended in 2009
Intergovernmental Relations Provides for mechanisms and procedures for settlement of inter-governmental
Framework Act, 2005 disputes between the three spheres of government
GENERIC GOOD GOVERNANCE LEGISLATION
▪ Public Service Act, 1994, as ▪ Public Service Regulations, 2001 as amended

amended
▪ Labour Relations Act, 1995, as amended
▪ Public Finance Management
Act (PFMA), 1999 ▪ Basic Conditions of Employment Act, 1997
▪ Municipal Finance ▪ Occupational Health and Safety Act, 1993
Management Act, 1999
▪ South African Qualifications Authority Act, 1995
▪ Promotion of Access to
Information Act, 2000
▪ National Records and Archives Services Act, 1996
▪ Promotion of Administrative
Justice Act, 2000
▪ Skills Development Act, 1998

▪ Employment Equity Act, 1998
4.2. POLICY MANDATES

NATIONAL AND PROVINCIAL
POLICY FRAMEWORKS AND RELEVANCE TO THE DED
PLANS
The National Development Plan Socio-economic development plan and Vision 2030 for all of South Africa.
The Medium Term Expenditure Implementation plan of the NDP and its 14 outcomes.
Framework
The G2055 and its precursors

Socio-economic development plan and Vision 2055 for Gauteng Province and
such as the Global City Region
building Gauteng as a GCR.
(GCR) perspective
The Creative Industries Development of creative industries sector to maximise socio-economic benefits
Development Framework in alignment with the Gauteng Growth and Development Strategy.
The Gauteng Employment, Increased shared socio-economic growth and development, job creation and
Growth and Development support to targeted economic growth sectors.
Strategy
The New Growth Path National framework for economic policy and driver of job creation strategy.
The Gauteng Social Confirms connection between social and economic development.
Development Strategy
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NATIONAL AND PROVINCIAL

POLICY FRAMEWORKS AND RELEVANCE TO THE DED
PLANS
The Gauteng Spatial Ensures prioritisation and targeting of infrastructure investment and government
Development Perspective, 2007 action.
GENERIC GOOD GOVERNANCE POLICY FRAMEWORKS
▪ South African National Policy Framework for Women Empowerment and Gender Equality: December 2000;
▪ White Paper on Transforming Public Service Delivery (Batho Pele White Paper)
▪ National Development Strategy
▪ National Youth Policy Development Framework: 2002 – 2008
▪ National Programme of Action for Children Framework (NPA): 1996
▪ Gauteng Monitoring and Evaluation Policy Framework: 2010
▪ National Disability Policy Framework, 2009
4.3. RELEVANT COURT RULINGS

The Constitutional Court on 18 June 2010 confirmed the order made by the Supreme Court of Appeal in respect
of the constitutional invalidity of Chapters V and VI of the Development Facilitation Act, 1995 and this confirmation
needs to be accounted for in the finalisation of the new Gauteng Planning and Development Bill and Regulations.
4.4. PLANNED POLICY INITIATIVE

▪ TER programme: the department will expand infrastructure provision in order to facilitate economic activity,
growth and job creation and expand the skills base of our economy and stimulate regional economic
competitiveness as well as spatial development and economic equity;
▪ There will be a roll out township enterprise hubs across Gauteng’s oldest townships;
▪ The department will make interventions and create opportunities for small businesses and cooperatives to
form part of the producer value chains, funds will be directed to GEP; and
▪ The department will continue to provide support and assistance to the automotive sector through investment
facilitation, skills development and training, incubation programmes and supply-chain development.
In order to radically change the structure of the economy and unlock the potential of different sectors, the following
key priorities will be implemented:
ECONOMIC CLUSTER: 2014-2019 MTSF PRIORITIES

MTSF PRIORITY STRATEGIES FOR DELIVERING ON A PRIORITY
REVITALISATION OF AND Revitalise and build township economies by supporting the development of
BUILDING TOWNSHIP township enterprises, cooperatives and SMME’s that will produce goods and
ECONOMIES services that meet the needs of township residents. Provincial government
and municipalities shall work together to provide training, funding, economic
infrastructure and markets for the goods and services produced by township and
community enterprises.
KEY AND NEW ECONOMIC Develop key and new economic sectors that have the potential to address the
SECTORS twin policy imperatives of creating decent employment and greater economic
inclusion. These sectors include finance, automotive industry, manufacturing, ICT,
tourism, pharmaceuticals, creative industries, construction and real estate.
INNOVATION-DRIVEN, Develop innovation-driven, knowledge-based, smart and green economy by

KNOWLEDGE-BASED, SMART working with research institutions to vigorously promote innovation within the
AND GREEN ECONOMY provincial economy and fast-track the development of new industries.
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ECONOMIC CLUSTER: 2014-2019 MTSF PRIORITIES

MTSF PRIORITY STRATEGIES FOR DELIVERING ON A PRIORITY
EXPANSION OF YOUTH Expanding youth employment by encouraging the involvement of youth in all the
EMPLOYMENT planned interventions.
REINDUSTRIALISATION The massive rollout of public transport infrastructure across the province shall be
THROUGH STRATEGIC utilised to revitalise and modernise old industries that will locally manufacture or
INFRASTRUCTURE assemble buses, trains and locomotives. Work closely with PRASA and Transnet to
DEVELOPMENT re-industrialise the province and build economic infrastructure that would boost
employment creation and economic inclusion.
KNOWLEDGE-BASED Expansion of the Gauteng Biotechnology Science Park’s Research and

ECONOMY Development and manufacturing facilities.
The following are the game changers adopted for realising the 2014-2019 plans:
KEY GAME CHANGERS: 2014 - 2019
Township Economies
Revitalization
Strategic Economic
Infrastructure
Township Tourism
Revenue Generation
5. SITUATIONAL ANALYSIS
5.1. PERFORMANCE ENVIRONMENT
The performance environment of DED is entrenched in realising government-wide Outcome 4: Employment –
Decent employment through inclusive growth, where the department fall within the Economic Cluster which
focuses amongst other outputs faster and sustainable inclusive growth, and more labour absorbing growth;
improved support to small business and cooperatives. The focus of DED plan is premeditated in contributing to
Outcome 4 as aligned with the delivery agreement of the Economic Cluster that include the following outputs
income and equality, labour absorption and employment, GDP growth, diversification of the economy
DED has a Logic Model (see page 11) that schematically provides the following relationships of the parts of the
plan the relationship between the department’s identified outcomes with Outcome 4 in the following manner:
the relationship between the immediate outcomes and the intermediate outcomes, the relationship between the
intermediate outcomes and the ultimate outcome, and the relationship between the ultimate outcome and the
government-wide 4: Employment – Decent employment through inclusive growth.
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THE STRATEGIC PLAN LOGIC MODEL OF THE DEPARTMENT OF GAUTENG ECONOMIC DEVELOPMENT
GOVERNMENT LEVEL OUTCOME/ GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT IMPACT
Outcome 4: Employment – Decent employment through inclusive growth
ULTIMATE OUTCOME
Gauteng Economy is radically transformed, modernised and reindustrialised
INTERMEDIATE OUTCOMES
DED Capacitated to Deliver and Implement
Gauteng’s Economy Radically Transformed Gauteng’s Economy Re-Industrialised

Efficiently and Effectively
IMMEDIATE OUTCOMES
New, smart, knowledge- SMME’s, township Appropriately skilled Revitalised and Revitalised and Financial accountability Sound financial
based economy and enterprises and human resource and modernised township modernised and compliance to all management, effective
industries as part of a cooperatives participating business capacity that economies reflecting industries reflecting prescribed financial financial administration,
radically transformed in mainstream economic meet the needs of a radical transformation reindustrialisation of regulations and guidelines internal control systems
Gauteng economy activities as part of a radically transformed and and re-industrialisation of Gauteng’s economy and procedures aligned
radically transformed and re-industrialised Gauteng Gauteng’s economy to prescribed financial
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reindustrialised Gauteng economy regulation and guidelines
economy
Green industries Strategic economic New, smart, increased Increased trade, investment and export activities Provide effective human Up-to-date and accurate
contributing to energy infrastructure that consumer satisfaction in Gauteng, the country, the African continent and resource development, business intelligence data
security as an important supports and facilitates that secures long term globally leading to radical economic transformation administration and guiding all economic and

element of radically radical economic sustainability and and re-industrialisation of Gauteng’s economy creating a conducive business development
transforming and transformation and facilitates the growth of environment decisions of DED
reindustrialising Gauteng’s re-industrialisation of businesses
economy Gauteng
Stakeholders from A properly regulated A properly regulated Research based Impact Analysis
all three spheres of liquor industry in Gauteng Gambling and Betting economic policies/ reports informing the
government and from that generates revenue Industry that generates strategies and intelligence appropriateness and
other sectors of society towards the socio- revenue towards reports that inform and contribution of DED’s
working jointly to economic development the socio-economic guide projects to achieve policies, strategies and
radically transform and of the province development of the the DED’s Strategic Goals projects to achieving
reindustrialize Gauteng’s province of radically transforming DED’s Strategic Goals
economy and re-industrialising of radical economic
Gauteng’s economy transformation and
re-industrialisation of
Gauteng
Gauteng like the rest of the country continues to face the persistent triple challenges of poverty, unemployment,
inequality and underdevelopment. These challenges informed the GPG’s adoption of the government’s new growth
path. GPG during the period 2009-2014 adopted a number of initiatives in line with the new growth path. The
following are some of the initiates that were adopted: Gauteng Employment and Growth Development Strategy;
Gauteng Youth Employment Strategy; Gauteng SMME Policy Framework and Gauteng Industrial Policy Framework.
Gauteng Employment and Growth Development Strategy (GEGDS), was formulated to assist post-2008 crisis
growth.
The South African Government approved the National Development Plan (NDP) Vision-2030, a comprehensive
plan aimed at eliminating poverty and reducing inequality in the country by 2030.The NDP aims to create 11 million
jobs by 2030, this means that per annum, calculating from the beginning of 2015 the South African economy is
supposed to create 733 000 jobs. The Gauteng province accounts for almost 30% of total employment currently,
the NDP target implies that the Gauteng economy must contribute 220 000 new jobs per annum. The projections
suggest that over a 3-year horizon (12 quarters), the Gauteng economy is projected to create 149 000 jobs. This
means that on an annual basis, the Gauteng economy is projected to create about 50 000 new jobs.
Gauteng has adopted ten pillars as a guide in implementing the NDP objectives, below are six of the ten pillars that
are more relevant to the department, namely:
▪ Radical economic transformation;

▪ Transforming the state and governance;
▪ Modernisation of the public services;
▪ Modernisation of the economy;
▪ Re-industrialise Gauteng and South Africa; and
▪ Take a lead in Africa’s industrial revolution.
South Africa witnessed Gauteng provincial economy growing during the past years -period 1995 - 2013. Nonetheless,
it is critical to assert that this economy is shared among few monopolies, meaning that there is a huge polarisation
gap between these few monopolies and SMMEs in terms of economic share. Transformation, Modernisation and
Re-industrialisation (TMR) was adopted by DED as a radical programme for revitalisation of the township economy
and regeneration of township infrastructure. The programme is crucial in stimulating and sustaining the SMME
township entrepreneurship.
Despites challenges faced by South Africa, the country continue to make efforts in growing its economy. The
country’s Growth Domestic Product (GDP) growth rate increased by 3.3 per cent during the period 20015 – 2004,
and this adds 0.7 per cent to the World GDP. As illustrated in the Figure 1 below, South Africa’s GDP growth rate is
low when compared to developing countries like Brazil, China and India. This clearly shows that the country is not
doing well when compared to other developing countries.
TABLE 1: GDP GROWTH & CONTRIBUTION TO WORLD GDP, BRICS, 2008-2017

GDP Growth Rates % of World GDP
Country
2005-2013 2014-2018 2005-2013 2014-2018
Brazil 3.5% 1.9% 3.0% 2.8%
China 10.2% 6.9% 12.2% 16.9%
India 7.5% 6.4% 5.7% 7.0%
Russia 3.8% 1.2% 3.6% 3.2%
SA 3.3% 2.4% 0.7% 0.6%
Gauteng province is the largest contributor of the country’s GDP when compared to other provinces, see table 2
below. The rate of the province’s GDP has been hovering at 30 per cent for a number of years. The 2008 economic
crises revealed that Gauteng is much interlinked with the global economy which at one hand, the province has
an advantage to the global economy and at the world’s economic crises affects the province’s economy. The
provincial economic growth has been decreasing due to the exogenous economic shocks and structural economic
challenges that further contributed to slowing of economic growth.
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TABLE 2: GDP-R CONTRIBUTION.
Source: Global Insight
The province’s economy is open to influence by global economic crises because it is part of world economy.
Access to participation to the global economy equally means that the province should have mechanisms in place
to minimise possible impacts. Obtainable approach and as a required mechanism is to put efforts on the province’s
most performing sectors such as finance, government community services and manufacturing. As shown in
the table 3 below and despite the fact that it is agonising that there is high reliance of government support on
communities, these three sectors are the pillars of the provincial economy because they have been performing
better for the period of five years namely between 2009 - 2013 when compared to other sectors. A special focus
is required on the sectors that are struggling to realise their objectives to achieve their short and long-term targets.
TABLE 3: GROSS VALUE ADDED BY SECTOR (GVA-R) AT CONSTANT 2005 PRICES

Sector 2009 2010 2011 2012 2013
Finance 26.0% 25.6% 25.8% 26.0% 26.2%
Community 24.5% 24.3% 24.5% 24.7% 24.8%

services
Manufacturing 16.4% 16.8% 16.8% 16.8% 16.5%
Trade 13.2% 13.5% 13.6% 13.7% 13.7%
Transport 9.9% 9.8% 9.8% 9.8% 9.8%
Construction 3.9% 3.9% 3.7% 3.7% 3.7%
Mining 3.1% 3.1% 2.8% 2.6% 2.6%
Electricity 2.5% 2.5% 2.4% 2.3% 2.3%
Agriculture 0.5% 0.5% 0.4% 0.4% 0.4%
Total 100% 100% 100% 100% 100%
Source: IHS Global Insight, 2015
Gauteng anticipates growing its economy to 2 trillion by 2030. Noting from the previous and the current pace
of growth rate, Gauteng economy will in the next three years continue to experience slow economic growth.
The growth rate of Gauteng is estimated to increase to 3.7% in 2018. However, this is not something to revel
on, considering the fact that some African countries such as Kenya, Nigeria and Angola projected to achieve a
conservative 5% growth rate during the same time period.
The provincial economic growth rate is expected to have enfeebled to 1.7% in 2014, from 2.2% in 2013. The reason
behind the decline is partly driven by the spill over from the labour unrest and stoppages in the platinum industry.
The national growth rate is also expected to have come below expectation in 2014 at 1.4%, reflective of domestic
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challenges, including tense labour relations, energy supply constraints and the generally low business confidence
levels. The economy of Gauteng is dominated by tertiary industries which have expanded to contribute at least 60.8
percent to growth. The finance, real estate and business services sectors contribute 22.8 percent to the Province’s
GDP.
The manufacturing, government services, wholesale, retail, motor trade and accommodation sectors contribute
16.5 percent, 16.3 percent and 12.6 percent respectively. The manufacturing sector is important for the Gauteng
economy because it attracts semi and unskilled-labour. With concerns to unemployment rate in the province,
growth in manufacturing sector is aligned with government initiatives to increase employment. Agriculture, forestry
and fisheries contributed the lowest share to GDP-R of 0.4 percent and are forecast to remain at their current rate
until 2018.
South Africa rates the least in labour market when compared with some of the leading and developing countries
and with high unemployment rate when compared to other African leading countries in economy like Nigeria.
Wholesale & retail trade and the public sector were the largest employers. Manufacturing contribution is declining
in line with its decreased contribution to the economy.
Trade accounted for the largest share of employment in Gauteng both in 2009 and 2014, despite job losses
experienced in the sector. Community, social services and finance experienced significant increases in their share
of employment during the period, while manufacturing’s share of employment declined from 15.1 percent to
12.7 percent during the period. South Africa’s unemployment rate is one of the highest in the continent. The NDP
confirms that about two-thirds of the SA youth is unemployed and this further means that youth is more than
double when compared with adult unemployment rate. High unemployment has remained synonymous with
black Africans.
Gauteng Province is the smallest province in terms of land size in the country (i.e. 18,178m2, but it has about 12,
2 million people). Between 2009 and 2014, unemployment rate in Gauteng province has averaged 25 percent.
The province is highly urbanized and considered to be the economic hub of South Africa. Although Gauteng
contributes significantly to GDP, it has a high unemployment rate even when compared to the national average.
However, the province has one of the highest standards of living in the country.
It is critical to highlight the demographic profile of a region as it has direct bearing on planning and economic
development of a region. The rate at which the population grows is imperative for planning and budgeting processes
(e.g. a higher rate of growth in population need to be accompanied by increased employment rate as demand for
such services also rises).
Gauteng has been accounting for the largest share of the country’s population when compared to other provinces
of the country and its share was at 21.4 percent in 2009 and increased to 23.9 percent in 2014. Gauteng’s population
growth is projected to grow due to the perception as the province with the most economic opportunities.
The City of Johannesburg (COJ), accounting for 36.5 percent of the Gauteng population and this may be as a
result on migration of people into the region in search for jobs. In comparison with COJ, Ekurhuleni municipality is
accounting 25.7 percent of the province population, while West Rand district municipality is accounting 6.4 percent,
share of the Gauteng population. Gauteng province won in reducing the number of people living in poverty. Table
4 shows the share of those living below the food poverty line and the poverty gap for Gauteng and South Africa
from 2009 to 2013.
TABLE 4: POVERTY INDICATORS, GAUTENG AND SOUTH AFRICA, 2009-2013
Gauteng 2009 2013 2009 - 2013

Share below food poverty line 22.6% 15.9%
Poverty gap 29.3% 27.5%
South Africa
Share below food poverty line 34.7% 23.2%

Poverty gap 30.9% 28.1%
Source: IHS Global Insight, 2015
14
5.2. ORGANISATIONAL ENVIRONMENT
DED STRUCTURE AGENCIES STRUCTURE
Member Executive Authority Gauteng Growth Development Agency

Office of the Head of Department Gauteng Tourism Agency
Branch: Business Regulations and Gauteng Enterprise Propeller
Governance Gauteng Gambling Board
Branch: Economic Planning and
Development
Branch: Corporate Management
Chief Directorate: Financial
Management
Chief Directorate: Legal Advisory
Services
Chief Directorate: Communications
Directorate: Executive Support
Directorate: Risk Management
6. DESCRIPTION OF THE STRATEGIC PLANNING PROCESS

The 5th general elections held in May 2014 signalled a new term of democratic governance premised on radical
socio-economic transformation for the second phase of building South Africa into a national democratic society.
Detailed political and socio-economic development imperatives are outlined in the NDP, the G2055, SONA, SOPA
and a number of related documentation. These key policy documents have fundamentally informed and guided
the department’s strategic planning processes and strategies.
The department, its implementing agencies and trading entities strategic planning process involved the:
▪ Reviewing and assessing the status of its current programmes and projects;
▪ Identifying all specific economic growth and development imperatives in the NDP, G2055, SONA and SOPA;
▪ Assessing the extent to which the DED’s current programmes and projects respond to the new mandate,
vision, mission, strategic objectives and adjusting them in response to the strategic policies;
▪ Identifying game-changers, catalytic projects, flagship initiatives and new projects that will ensure the vision of
the DED is achieved; and
▪ Re-alignment the 2015/2016 APP to reflect the intent of this 2014-2019 Strategic Plan.
Each senior manager worked with his/her staff to conduct the above assessment for their specific focus areas. Strategic
overviews emanating from this assessment were presented to the strategic planning retreat of approximately 80
senior managers from the department and its agencies. The first retreat was held on the 8 - 10 July 2014 and final
retreat session was held on the 24th and 25th February 2015. The MEC: DED honourable Lebogang Maile set the
strategic direction for the department in his key note address at the retreat sessions and provided a framework for
all discussions.
The retreat proceedings were consolidated into the strategic plan and the annual performance plan for 2015/16.
These documents were distributed to all senior managers of the department and it’s implementing agencies
for feedback, comment and finalisation. The feedback process took the form of one-on-one meetings with the
managers of each unit and agency of the department.
15
7. STRATEGIC OUTCOME ORIENTED GOALS

The Strategic Outcome Oriented Goals of the DED are as follows:
Strategic Outcome Gauteng’s economy radically transformed
Orientated Goal 1
Goal Statement This goal is intended to move away from the current monopoly dominated
economy to an inclusive and job creating economy that:
§ Harnesses indigenous resources, skills and capacity as part the mainstream
economy
§ Develops new, smart, green knowledge-based economy and industries
§ Addresses the legacy of apartheid’s skewed spatial economic development
planning through revitalising and modernising township economies
§ Addressed the dominance of monopoly capital that perpetuates high levels
of poverty, unemployment and inequity
§ Brings SMME’s, township enterprises and cooperatives into the eleven (11)
identified key economic sectors at all levels of their value chain
§ Guarantees energy security through appropriate and sustainable energy
mixes, application of green technologies and processes and radical
transformation of the economic sector
§ Regulates the Liquor Industry and facilitates its contribution to job creation
and an inclusive economy
§ Regulates the Gambling Industry and facilitates its contribution to job
creation and an inclusive economy
§ Promotes and protects the rights of consumers
Strategic Outcome Gauteng’s economy re-industrialised

Orientated Goal 2
Goal Statement This goal is intended to address the policy imperatives of creating decent
employment, ensuring greater inclusion in the mainstream economy and
enhancing competitiveness and growth through:
§ Supporting the province’s eleven (11) identified economic growth sectors
(Finance, Automotive Industry, Manufacturing, ICT, Tourism, Pharmaceuticals,
Creative Industries, Construction, Real Estate, Mineral Beneficiation and
Agro-processing)
§ Strategic economic infrastructure development (R300 billion in post, freight,
rail and pipeline capacity)
§ Revitalising and modernising old industries with the massive roll out of
transport infrastructure
§ The procurement of 75% of government goods and services from South
African Producers
§ Supporting local manufacturing e.g. of steel
§ Increasing domestic and export demand for South African manufactured
goods
§ Promoting beneficiation activities
§ Supporting high growth, competitive and labour absorbing sectors
§ Attracting Domestic Direct Investment (DDI) and Foreign Direct Investment
(FDI)
§ Increasing trade and export opportunities on the African Continent and
globally
16
Strategic Outcome DED capacitated to deliver and implement efficiently and effectively
Orientated Goal 3
Goal Statement This goal is intended to ensure that the DED is able to deliver and implement
its core-function programmes and projects through the provision of supportive
services in the areas of:
§ Financial management
§ Human resource management
§ Centralised planning, co-ordination and management
§ Business intelligence to drive the work of the DED
§ Auxiliary and Legal services
§ Communication, Marketing and Branding
§ Information and Communication Technology
§ Agency oversight and governance
17
PART B: STRATEGIC OBJECTIVES
8. PROGRAMME 1: ADMINISTRATION
PURPOSE
To provide strategic leadership, support and transversal business solutions to enable the MEC, HOD and DED group
to effectively deliver on the mandate of the Department.
Programme Structure is as follows:

UNITS FUNCTIONS
Office of the MEC ▪ Supports the MEC to perform his role; and
▪ Provides political and strategic direction to the DED group
Office of the HOD ▪ Provides strategic direction to the DED Group;
▪ Oversees and ensures service delivery and implementation; and
▪ Responsible for programme performance management.
Financial Management ▪ Financial Management;
▪ Management Accounting; and
▪ Supply Chain Management.
Corporate Services ▪ Human Resource Management;
▪ Communication, Marketing and Branding;
▪ Auxiliary and Legal Services; and
▪ Information and Communication Technology
▪ Risk management
8.1. STRATEGIC OBJECTIVES
Strategic Objective 1.1 Financial accountability and compliance to all prescribed financial regulations and
guidelines.
Objective Statement To ensure financial accountability and compliance to prescribed financial

regulations and guidelines.
Baseline No baseline information, new strategic objective.
Strategic Objective 1.1 Sound financial management, effective financial administration, internal control
systems and procedures aligned to prescribed financial regulation and guidelines.
Objective Statement To improve internal control and be in the position to provide reliable financial
operational reports.
Baseline No baseline information, new strategic objective.
Provide effective human resource development, administration and creating a

Strategic Objective 1.2
conducive environment.
To ensure adequate human resource to meet the strategic goals and operational
Objective Statement
plans of the department.
Baseline No baseline information, new strategic objective
18
8.2. RESOURCE CONSIDERATION
SUMMARY OF PAYMENTS AND ESTIMATES: ADMINISTRATION

Main Adjusted Revised
Outcome Medium-Term Estimates
appropriation appropriation estimate
R thousand 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Office Of The
14 079 13 973 12 094 16 167 11 780 11 780 11 200 12 710 13 346 14 013 14 714
MEC
Office Of The
28 418 16 454 10 072 21 794 18 709 18 709 19 000 19 615 20 596 21 626 22 708
HOD
Financial
13 116 18 599 21 974 22 422 27 282 27 282 40 474 39 750 41 738 43 825 46 016
Management
Corporate
73 823 80 838 88 404 110 996 120 562 120 562 119 323 132 648 139 280 146 244 153 556
Services
Total
Payments 29 436 29 864 132 544 171 379 178 333 178 333 189 997 204 722 214 959 214 959 236 993
And Estimates
The administration budget is used for the payment of leases, cleaning services, security services, bursaries and
office buildings. The allocation for this programme increased slightly from R129.4 million in 2011/12 to R132.5 million
in 2013/14 before increasing to R171.3 million in 2014/15. The increase is due to the approved rollover for accruals
amounting to R6.9 million. Over the MTEF, the allocation increases to R190 million, R204.7 million and R215.0
million in 2015/16, 2016/17 and 2017/18 respectively. The increased allocation will cater for the recruitment plan of
the department which plans to fill all vacant post by 2015/16. Corporate Services received the biggest portion of
the budget due to payment of leases and provision of ICT support to the department.
For Compensation of Employees the expenditure increases from R56.2 million in 2011/12 to R66.8 million in 2013/14
before increasing further to R87 million in 2014/15 and again to R116.9 million in 2015/16. The significant increases
are due to the progressive implementation of the departmental structure which is aimed at capacitating the
department in respect of its provincial mandate. The allocation increases to R123.2 million in 2016/17 and R130.8
million in the outer year due to the continued implementation of the organizational structure.
Goods and Services expenditure amounts to R67.9 million in 2011/12 before decreasing to R60.6 million in the
2013/14 financial year. The allocation grows to R65 million in 2014/15. Over the MTEF, the goods and services
budget of the programme decreases again to R67.2 million in 2015/16 before increasing to R62.9 million in 2017/18.
Machinery and Equipment decreased from R4.7 million in 2011/12 to R1.6 million in 2013/14 before increasing to
R19.2 million in 2014/15. Over the MTEF, the allocation declines to R6 million in 2015/16 before increasing to R21
million in 2017/18. The fluctuation is due to a number of projects that Information Technology will be embarking
upon such as budgeting for the disaster recovery site for the purposes of system recovery and continuity during
the time of emergency or disaster. The allocated budget will also cater for the implementation of community ICT
hubs that will be used for SMMEs to access internet and broadband.
8.3. RISK MANAGEMENT

RISK MITIGATION
Lengthy turn-around times for Assessment of decisions required and processes entailed in arriving at decisions.
decision-making that delays Development of strategy and systems to shorten processes. Set performance
delivery and implementation indicator of 24 hour turn-around time. Internal policy for all of DED group on
speedy turn-around processes and times.
Duplicated responsibilities Service Level Agreement (SLA) between DED and Agencies to clearly spell out
between HOD and CEO’s of specific and concurrent responsibilities; and how concurrent responsibilities will
DED Agencies be managed.
19
RISK MITIGATION
Disjuncture in approaches and Joint structures between relevant staff of each office meeting regularly e.g. a
priorities between Office of the short weekly meeting.
MEC and Office of the HOD
Different corporate services DED to provide “shared” corporate services for all within the DED group, operating
policies, approaches and from and implementing single policies e.g. HR policy across DED and its Agencies.
systems between DED and its
Agencies
9. PROGRAMME 2: INTEGRATED ECONOMIC DEVELOPMENT SERVICES

PURPOSE
To ensure radical economic transformation that addresses the triple policy imperatives of decent work, an inclusive
economy and equality.
UNITS FUNCTIONS
Enterprise Development ▪ Inclusion of SMME’s, township enterprises and cooperatives into the value of
the 11 identified sectors
▪ Building the capacity of SMMEs, township enterprises and cooperatives to

participate in mainstream economic activities; and
▪ Revitalising and modernising township economies

Regional And Local Economic ▪ New. smart, green, knowledge based economy and industries;
Development
▪ Green technologies, processes and industries;
▪ Township economies; and
▪ Energy security and project management support.

Programme 2 will work towards the following five strategic objectives:
▪ New, smart, knowledge-based economy and industries as part of a radically transformed Gauteng economy;
▪ Revitalised and modernised township economies reflecting radical transformation and re-industrialisation of
Gauteng’s economy;
▪ SMME’s, township enterprises and cooperatives participating in mainstream economic activities as part of a
radically transformed and reindustrialised Gauteng economy;
▪ Appropriately skilled human resource and business capacity that meet the needs of a radically transformed and
re-industrialised Gauteng economy; and
▪ Green industries contributing to energy security as an important element of radically transforming and
reindustrialising Gauteng’s economy.
Strategic Objective 2.1 New, smart, knowledge-based economy and industries as part of a radically
transformed Gauteng economy
Objective Statement To develop new, smart, knowledge based economy and industries that are
responsive to the triple policy imperatives of job creation, an inclusive economy
and equality; and fosters competitiveness
20
Strategic Objective 2.1 New, smart, knowledge-based economy and industries as part of a radically
transformed Gauteng economy
Baseline As at the end of 2nd quarter of 2014/15 financial year, performance under the
strategic objective above was as follows: 2 new Open Innovation Solution
Exchange (OISE) technology offers were incubated against the annual target
of 5; 6 OISE innovations challenges were posted on the platform against the
annual target of 5, 16 new ICT mobile applications developers were supported
in mLab agaist the annual target of 20, 7 new ICT mobile Apps incubated at the
mLab were commercialised against the annual target of 20, 4 innovations were
commercialized from Maxum, Biopark & mLab against the annual target of 10, 11
companies were in pre-incubation (4 entrepreneurs from townships) against the
annual target of 26, 19 companies were incubated at Maxum core (1 company
from township) against the annual target of 16.
Strategic Objective 2.2 Revitalised and modernised township economies reflecting radical transformation
and re-industrialisation of Gauteng’s economy.
Objective Statement To revitalise and modernise township economies to address the legacy of
apartheid’s spatial economic planning and contribute to the triple policy
imperatives of job creation, an inclusive economy and equality.
Baseline SMMES and Co-ops support in the 11 sectors (Tourism, Finance, Automotive,
Manufacturing, ICT, Pharmaceuticals, Creative Industries, Construction, Real
Estate, Mineral Beneficiation and Agro-processing) was as follows as at the end of
second quarter of 2014/15: 96 existing SMMEs were financially supported against
the annual targets of 105, 1824 existing SMMEs were non-financially supported
against the annul target of 1 260, 140 new SMMEs were financially supported
against the annual target of 230, 391 new SMMEs supported non-financially
against the annual target of 540, 32 existing Co-ops supported financially against
the annual target of 70, 167 existing C-ops supported non-financially against the
annual target of 210, 5 new Co-ops were supported financially against the annual
target of 40; 58 Co-ops supported non-financially against the annual target of
90, and 3 Township Enterprise Hub sites were identified and concepts were
developed.
Strategic Objective 2.3 SMME’s, township enterprises and cooperatives participating in mainstream
economic activities as part of a radically transformed and re-industrialised
Gauteng economy
Objective Statement To ensure participation of SMME’s, township enterprises and cooperatives in the
full value chain of the eleven (11) identified key economic sectors and in other
mainstream economic activities; and contribute to the triple policy imperatives of
job creation, an inclusive economy and equality.
Baseline The following was performance under the strategic objective above (as at the end
of 2nd quarter of 2014/15): 4 entrepreneurs were supported through the Leverage
Funds against the annual target of 12, 4 designers received business mentorship
against the annual target of 4.
Strategic Objective 2.4 Appropriately skilled human resource and business capacity that meet the needs
of a radically transformed and re-industrialised Gauteng economy.
Objective Statement To build the skills and capacity of SMMEs, township enterprises and cooperatives
to become effective businesses.
21
Strategic Objective 2.4 Appropriately skilled human resource and business capacity that meet the needs
of a radically transformed and re-industrialised Gauteng economy.
Baseline A number of achievement were witnessed towards realising the strategic

objective above and the following were achievements as at the end of 2nd
quarter of 2014/15 financial year: 5 BEE SMMEs were incubated at the Ford
Incubation Centre against the annual target of 6, 13 auto industry companies
were provided with on-site efficiency services against the annual target of
20, 45 young people participated in the Youth Reskilling Project to qualify as
artisans against the annual target of 40, 60 auto-body repairers were provided
with mentorship and training over a 3 year period against the annual target
of 60, 113 FET students were trained in a 5 day vehicle assembly practical
training course using the Ford T6 Simulator against the annual target of
200, 105 SMMEs & entrepreneurs completed growth and development
training courses (Maxum, CIC, GAP) against the annual target of 200, 455
people were trained at the Learning Centre (LC) Based in Rosslyn; and 66 ICT
Postgraduate students and individuals were provided with Coach-lab’s market
entry training against the annual target of 90
Strategic Objective 2.5 Green industries contributing to energy security as an important element of
radically transforming and reindustrialising Gauteng’s economy.
Objective Statement To build energy security through appropriate and sustainable energy mixes,
application of green technologies and processes
Baseline At the end of 2nd quarter of 2014/15, 10 Green companies were receiving
technical advisory services against the annual target of 30, and 10 Green
companies were incubated against the annual target of 20 towards realising
the strategic objective above.

SUMMARY OF PAYMENTS AND ESTIMATES: INTEGRATED ECONOMIC DEVELOPMENT SERVICES
Appropriation Appropriation Estimate
R thousand 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Enterprise
97 435 111 142 132 596 139 485 146 485 139 485 131 938 136 706 143 541 150 716 158 254
Development
Regional
And Local
2 950 4 864 1 791 14 503 14 557 14 557 2 000 1 044 1 096 1151 1208
Economic
Development
Economic
57 994 80 452 87 689 114 147 134 993 131 993 187 312 127 716 127 325 140 378
Empowerment 133 691
Total
payments and 158 379 196 458 22 076 268 135 296 035 286 035 321 250 265 466 271 963 285 560 299 838
estimates
The expenditure for this programme in the 2011/12 financial year was R158.4 million, increasing to R196.5 million in
2012/13 and increasing again to R222 million in 2013/14. In 2014/15 it increased to R268.1 to expand the number of
the SMMEs that will be supported financially. Over the MTEF, the planned expenditure grows to R321.3 million before
decreasing to R272 million for 2015/16 and 2017/18 respectively.
This allocation caters for transfers to the GEP under the Enterprise Development Sub-programme and provides
support to local municipalities under the Regional and Local Economic Development Sub-programme. Provision
is made for projects under the Economic Empowerment Sub-programme such as Waste to Energy, establishment
of bio digesters, industrial waste energy etc. The allocation for this programme is based on strategic programmes
22
that will stimulate the competitive and social transformation of Gauteng; attracts investments that will result in a
greener economy; and create decent jobs.
The expenditure for Goods and Services increased from R61.1 million in 2011/12 to R83.2 million in 2013/14 and
R118.4 million in 2014/15 respectively. The budget increases to R187.4 million in 2015/16 before decreasing to R126.6
million in the 2017/18 financial year. This will cater for projects in relation to job creation and the implementation of
the Gauteng Economic Growth and Development Strategy (GEGDS).
In the 2015/2016 financial year, the department will continue to be a catalyst for enterprise development and
regional and local economic development. The GEP will provide financial and non-financial support to SMMEs and
cooperatives. A total of 165 SMMEs will be supported financially and 1800 SMMEs will be provided with non-financial
support. The cooperatives assistance programme will continue, providing financial support to 100 cooperatives.
Non-financial support will be provided to 231 cooperatives.
Over the 2015 MTEF, a total amount of R129.8 million will be transferred to GEP in 2015/16; this is to cater for
the continuation of the Regeneration of Old townships programme, involving the regeneration of old township
industrial sites into vibrant and productive spaces. GEP will continue with the provision of non-financial and financial
support to SMMEs and cooperatives.

RISK MITIGATION
Duplicated roles and functions Service Level Agreement (SLA) between DED and Agencies to clearly spell out
between DED units and DED specific and concurrent responsibilities; and how concurrent responsibilities will
Agencies be managed.
Disjuncture between DED plans Strengthened oversight and governance role of DED. Ensuring Agencies plans are
and Agencies plans aligned to and reflect the DED strategic goals and objectives. Revival of Agencies
CEOs Forum.
Insufficient professional Increase project management support capacity in the IEDS Management office.
capacity to conceptualise and
manage implementation of
economic development plans,
programmes and projects
Misperceptions amongst Regular communication and feedback with stakeholders and beneficiaries
stakeholders and beneficiaries
of the realignment process and
new strategic focus
10. PROGRAMME 3: TRADE AND SECTOR DEVELOPMENT

PURPOSE
To ensure re-industrialisation that addresses the triple policy imperatives of decent work, an inclusive economy
and equality.

UNITS FUNCTIONS
Trade And Investment Attract Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI);
Promotion
▪ Increase trade, investment and export opportunities on the African Continent
and globally; and
▪ Invest in strategic economic infrastructure
23
Sector Development ▪ Support high growth, competitive and labour absorbing sectors;
▪ Support local manufacturing;
▪ Stimulate competitiveness and transformation of identified sectors;
▪ Radically transform the energy sector;
▪ Revitalise and modernise old industries; and
▪ Tourism and Creative Industries.

▪ The Trade and Sector Budget Programme will work towards the following two strategic objectives:
▪ Strategic economic infrastructure that supports and facilitates radical economic transformation and re-
industrialisation of Gauteng; and
▪ Increased trade, investment and export activities in Gauteng, the country, the African continent and globally
leading to radical economic transformation and re-industrialisation of Gauteng’s economy.
Strategic Objective 3.1 Strategic economic infrastructure that supports and facilitates radical economic
transformation and re-industrialisation of Gauteng.
Objective Statement To invest in strategic economic infrastructure that will facilitate and enhance
increased economic activity, growth and development to address the triple policy
imperatives of job creation, economic inclusion and equality.
Baseline As at of quarter 2 of 2014/15, Mini Factory phase 1 was at 79 per cent completion,
ASP Infrastructure (Construction on Mini Factory 11 at the Automotive Supplier
Park commenced and top structure completed) was at 50 per cent completion,
and Bio-Park facility was at 90 per cent completion.
Strategic Objective 3.2 Increased trade, investment and export activities in Gauteng, the country, the
African continent and globally leading to radical economic transformation and re-
industrialisation of Gauteng’s economy.
Objective Statement To attract and increase the amount of Domestic Direct Investment and Foreign
Direct Investment especially in the 11 identified economic sectors, revitalising and
modernising township economies and supporting the participation of SMME’s,
township entrepreneurs and co-operatives in the mainstream economy.
To Increase trade, investment and export opportunities on the African Continent
and globally towards increasing competitiveness an generating new growth and
development which will contribute to the triple policy imperatives of job creation,
economic inclusion and equality.
Baseline 1 foreign Direct Investment was facilitated against the annual target of 5, R9.5m was
generated as rand value of Foreign Direct Investments against the annual target
of R60m, 1 Domestic Direct Investments were facilitated against the annual target
of 6, 5m was generated as a rand value of Domestic Direct Investment against
the annual target of 50m, 56 enterprises were assisted through GGDA’s export
readiness programme against the annual target of 100, 13 firms were assisted to
access DTI export support programmes and incentives against the annual target
of 35, and 7 firms were assisted to secure trade deals through Export Promotion
against the annual target of 18.
24

SUMMARY OF PAYMENTS AND ESTIMATES: TRADE AND SECTOR DEVELOPMENT

R thousand 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Trade And
Investment - - 1 576 9 000 9 000 9 000 4 331 5 515 6 021 6 332 6 638
Promotion
Sector
168 809 157 302 150 925 160 889 176 413 167 237 214 245 225 600 236 880 248 724 261 160
Development
Strategic
241 528 294 808 359 684 340 776 343 476 340 776 338 033 355 949 373 746 392 433 412 055
Initiatives
Total
payments and 410 337 452 110 512 185 510 665 528 889 517 013 556 609 587 064 616 647 647 479 679 853
estimates
The expenditure for this programme increased from R410.3 million in 2011/12 to R512.2 million in the 2013/14
financial year. The allocation subsequently decreases to R510 million in 2014/15 before increasing to R556.6 million
in 2015/16 and R616.6 million in 2017/18. The biggest portion of the allocation is reflected under the sub-programme
Strategic Initiative and Sector Development due to the transfer to GGDA, GTA of which all entities are under the
control of the department which implements various projects on its behalf.
The expenditure for trade and investment promotion in the 2012/13 financial year amounted to R1.5 million and
increased to R9 million in the 2014/15 financial year due to the appointment of officials. In the 2011/12 financial year,
the expenditure for Strategic initiatives grows from R241.5 million to R359.8 million in the 2013/14 financial year,
then declining to R340.8 million in the 2014/15 financial year. Over the MTEF, the budget increases from R338 million
in 2015/16 to R373.7 million in 2017/18 due to programmes and projects that emanate from the strategic pillars.
The allocation for Goods and Services was to conduct 11 industrial sectoral analyses for the current financial year
in line with the 2014 SOPA announcements. These studies will assist in the overall strategic orientation of the
provincial industrial sectoral strategies which will be geared towards meeting the basic needs of the poor majority.
In the 2015/16 financial year the allocation has decreased to R100 000 due to a once off study that was conducted
in the 2014/15 financial year and will not continue during the MTEF.
The budget for Compensation of Employees significantly increases from R399 000 in 2011/12 to R5.5 million in 2013/14
before increasing to R10.6 million in 2014/15. Over the MTEF the budget decreases to R4.2 million in 2015/16 before
increasing to R5.9 million in 2017/18. The purpose of the unit was to source alternative funding from government
and private companies that were never included in the old structure, whilst in the new structure positions were
created to support and stimulate the competitiveness of, and transform, the 11 identified economic growth sectors
which will continue attracting Domestic Direct Investment (DDI) and FDI and Increase trade, investment and export
opportunities on the African continent and worldwide. The unit also continues to contribute in skills development
initiatives as part of making a contribution in developing youth.

RISKS MITIGATION
Duplicated roles and functions Service Level Agreement (SLA) between DED and Agencies to clearly spell out
between DED units and DED specific and concurrent responsibilities; and how concurrent responsibilities will
Agencies be managed.
25
Disjuncture between DED Strengthened oversight and governance role of DED. Ensuring Agencies plans are
plans and Agencies plans aligned to and reflect the DED strategic goals and objectives. Revival of Agencies
CEOs Forum.
Insufficient professional Increase project management support capacity in the Management office.
capacity in terms of trade Amend recruitment policies to allow for attracting and employing specialised
and sector development skills.
programmes and projects,
project financing and deal
structuring
Misperceptions amongst Regular communication and feedback with stakeholders and beneficiaries
stakeholders and beneficiaries
of the realignment process
and new strategic focus
11. PROGRAMME 4: BUSINESS REGULATION AND GOVERNANCE

PURPOSE
To ensure that DED’s Agencies, Consumer Affairs, The Gauteng Liquor Board and The Gauteng Gambling Board are
implementing interventions that contribute to achievement of the DED’s strategic goals.

UNITS FUNCTIONS
Liquor affairs ▪ Effective governance and regulation of the liquor industry;
▪ Ensure ethical business practice and empowered stakeholders;
▪ To promote & maintain an effective & efficient regulatory system for the liquor
industry;
▪ To maximise the benefits derived from the liquor industry and minimise the
potential negative impact thereof; and Generate revenue from the industry and
the regulation services offered for socio-economic development in Gauteng
Consumer affairs ▪ Ensure awareness of consumer rights through education and awareness
programmes;
▪ Ensure consumer protection and compliance of business with applicable

consumer legislation; and
▪ Provide secretarial support to the consumer affairs court

Governance ▪ Manage and coordinate special projects;
▪ Manage inter-governmental relations and strategic partnership on behalf of
DED; and
▪ Provide strategic direction in respect of corporate governance matters to the

DED and its agencies.
IGR And Strategic ▪ Manage strategic partnership engagement on behalf of the department; and
Partnerships
▪ Facilitate and build effective inter-governmental relationships

Programme 4 will work towards the following four strategic objectives:
▪ New, smart, increased consumer satisfaction that secures long term sustainability and facilitates the growth of
businesses;
▪ Stakeholders from all three spheres of government and from other sectors of society working jointly to
radically transform and reindustrialise Gauteng’s economy;
26
▪ A properly regulated liquor industry in Gauteng that generates revenue towards the socio-economic
development of the province; and
▪ A properly regulated Gambling and Betting Industry that generates revenue towards the socio-economic
development of the province.
Strategic Objective 4.1 New, smart, increased consumer satisfaction that secures long term sustainability
and facilitates the growth of businesses.
Objective Statement To protect and promote the rights of consumers and facilitate ethical business
practices in relation to customer service.
Baseline 689 consumer complaints were resolved against the annual target of 1 800, 242
consumer education programmes were conducted against the annual target of
250 as at the end of 2nd quarter of 2014/15.
Strategic Objective 4.2 Stakeholders from all three spheres of government and from other sectors of society
working jointly to radically transform and reindustrialize Gauteng’s economy.
Objective Statement To sustain relationships with other spheres of government for coherent/concrete
planning and delivery of projects jointly by promoting consultation on broader
development projects taking into account interdependencies between the three
spheres.
Baseline New strategic objective, no baseline information.
Strategic Objective 4.3 A properly regulated liquor industry in Gauteng that generates revenue towards the
socio-economic development of the province
Objective Statement To regulate the Liquor Industry and maximise the benefits from the industry that
can accrue to broader socio-economic development in the province.
Baseline 1 243 liquor inspections were conducted against the annual target of 2 700, 93
awareness and education programmes on liquor was conducted against the annual
target of 110, 57 440 131 people were reached through awareness programmes
per annum against the annual target of 5 500 000 as at the end of 2nd quarter of
2015/15.
Strategic Objective 4.3 A properly regulated Gambling and Betting Industry that generates revenue
towards the socio-economic development of the province.
Objective Statement To regulate the Gambling Industry and maximise the benefits from the industry
that can accrue to broader socio-economic development in the province.
Baseline 906 gambling licences were issued were issued against the annual target of 500,
5 awareness programmes were conducted against the annual target of 5, 149 515
people were reached with messaging on the dangers of gambling against the
annual target of 180 000

SUMMARY OF PAYMENTS AND ESTIMATES: BUSINESS REGULATION AND GOVERNANCE
Medium-term estimates
Outcome
R thousand 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2018/19 2019/20

2017/18
Governance 12 306 16 297 4 011 12 549 12 799 12 799 9 170 8 002 8 577 9 006 9 456
27
SUMMARY OF PAYMENTS AND ESTIMATES: BUSINESS REGULATION AND GOVERNANCE

Medium-term estimates
Outcome
R thousand 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2018/19 2019/20

2017/18
IGR And
Strategic 2 602 1 542 2 047 8 600 9 600 9 600 8 738 9 175 9 634 10 115 10 621
Partnerships
Consumer 13 084 16 225 18 632 30 288 21 138 21 138 18 026 18 927 19 699 20 684 21 718
Protection
Liquor 15 100 32 670 21 887 30 255 30 255 30 255 25 327 26 695 28 030 29 432 30 903
Regulation
Total
payments and 43 092 66 734 46 577 81 692 73 792 73 792 61 261 62 799 65 939 69 237 72 699
estimates
The expenditure for the 2011/12 financial year amounted to R43.1 million and increased to R66.7 million in the
2012/13 financial year. The allocation for 2013/14 was reduced to R46.6 million. This fluctuation is due to the GLB
receiving a total of R32.7 million for compensation of employees. Over the 2015 MTEF, the total programme budget
increased from R61.3 million in 2015/16 to R62.8 million in 2016/17 and R65.9 million in the 2017/18 financial year.
The largest portion of the budget is allocated to Consumer Protection followed by GLB. In the 2011/12 financial year,
the budget for consumer protection was R13 million and increased to 16.2 million in 2012/13 whilst in 2013/14, a
significant increase is reflected which is due to the number of consumer awareness programmes, workshops and
training to support consumers. Over the 2015 MTEF the allocation increases to R18 million in 2015/16 and R19.7
million in the 2017/18 financial year.
In the 2011/12 financial year, the allocation for liquor regulation was R15.1 million and increased to R32.7 million in
2012/13 before decreasing to R21.8 million in the 2013/14 financial year. In the 2014/15 financial year, the allocation
was R30.3 million which caters for Compensation of Employees. Over the MTEF, the allocation increases to R25.3
million, and R28 million for 2015/16 and 2017/18 respectively due to increase in revenue collection by the GLB.
The compensation budget for 2011/12 amounted to R23.1 million and increased to R29 million in the 2012/13
financial year. The increase was due to the number of staff appointed in the programme. The allocation for the
2014/15 financial year was R45.7 million decreasing to R28.4 million in 2015/16 due to the finalization of matching
and placing of personnel.
The Goods and Services budget amounted to R4.5 million in 2011/12 and decreased to R3.7 million in 2013/14
before increasing to R5.7 million in 2014/15. Over the 2015 MTEF, the budget continues to fluctuate at R7.5 million in
2015/16 before decreasing to R6 million in 2017/18. The goods and services budget for the consumer programme
also caters for workshops such as; disability, Spend Wisely Campaigns, World Consumer Rights Month, Savings
Month Campaign, Youth Month, Human Rights, and Workers’ Month etc.
Key to the work of the Business Regulation and Governance programme during the 2015 MTEF will be the promotion
of integrated planning, implementation and performance reporting of agency programmes. There will also be
continued focus on consumer education, advocacy and awareness campaigns in the 2015/2016 financial year.
The number of liquor licenses issued will be maintained at 2 000 licenses per annum in the 2015/2016 financial
year. Liquor abuse education and awareness programmes will also continue. The focus on the inherent regulatory
function of the Board will be maintained by increasing the number of pre-inspections and inspections conducted.
Gauteng Liquor Board regulates the liquor industry and maximises benefits from the industry for socio-economic
development.
28
RISK MITIGATION
Lack of compliance by the Development of systems, processes, legal solutions and partnerships to enforce
liquor and gambling industries regulation and compliance
Disjuncture between DED plans Strengthened oversight and governance role of DED. Ensuring Agencies plans are
and Agencies plans aligned to and reflect the DED strategic goals and objectives. Revival of Agencies
CEOs Forum.
12. PROGRAMME 5: ECONOMIC PLANNING

PURPOSE
To provide thought leadership to transform and re-industrialise economic Gauteng City Region through, policy and
strategy development.

UNITS FUNCTIONS
Policy And Planning ▪ Modelling and scenario planning on economic policies to anticipate needs of
economy;
▪ Identify areas requiring enhanced coherence and alignment as well as policy

gaps and emphasis;
▪ Evaluate policies and strategies that could lead to sustainable, shared and faster
economic growth; and
▪ Identify critical interventions that will enable Gauteng province to accelerate

the implementation and realise its policy objectives.
Research And Development ▪ Conduct and publish on-going economic reviews and provide comprehensive
insights on the provincial economic landscape;
▪ Produce intelligence reports for decision making;

▪ Prepare indicator studies documenting and mapping the performance of the
Gauteng economy on an annual basis;
▪ Develop and implement knowledge management concept, strategy and

systems;
▪ Identify areas of transversal research to support implementation of DED

strategy; and
▪ Collect data and update the DED database of statistics and management
research information.
Sector And Industry ▪ Enhance the global competitiveness of resource based sectors;
Development
▪ Build a strong, globally competitive, innovative and diversified manufacturing
capabilities in Gauteng;
▪ Enhance and increase the contribution of service based sectors to job creation;
and
▪ Co-ordinates work to identify and realise job and economic opportunities

related to long term environmental and climate change challenges.
29
UNITS FUNCTIONS
Inclusive Economy ▪ Facilitate the empowerment of previously disadvantaged individuals and

communities;
▪ Facilitate and support the establishment of viable and sustainable cooperatives

sector in the province that contributes positively to economic growth and
creates decent work; and
▪ Mobilise, align, coordinate and capacitate local economies towards enhanced

and sustainable regional economic development and integration.

Programme 5 will work towards the following seven strategic objectives:
▪ Research based economic policies/strategies and intelligence reports that inform and guide projects to achieve
the DED’s Strategic Goals of radically transforming and re-industrialising Gauteng’s economy;
▪ Up-to-date and accurate business intelligence data guiding all economic and business development decisions
of DED (Coordination of the youth placement programmes);
▪ Impact Analysis reports informing the appropriateness and contribution of DED’s policies, strategies and
projects to achieving DED’s Strategic Goals of radical economic transformation and re-industrialisation of
Gauteng;
▪ Revitalised and modernised township economies reflecting radical transformation and reindustrialisation of
Gauteng’s economy;
▪ Strategic economic infrastructure that supports and facilitates radical economic transformation and re-
industrialisation of Gauteng;
▪ Revitalised and modernised industries reflecting reindustrialisation of Gauteng’s economy; and

▪ Green industries contributing to energy security as an important element of radically transforming and re-
industrialising Gauteng’s economy
Strategic Objective 5.1 Research based economic policies/strategies and intelligence reports that inform
and guide projects to achieve the DED’s Strategic Goals of radically transforming
and re-industrialising Gauteng’s economy.
Objective Statement To provide for effective intervention in economic projects by conducting all
the economic research required for development and improvement of policies/
strategies.
Baseline No baseline, new strategic objective.
Strategic Objective 5.2 Up-to-date and accurate business intelligence data guiding all economic and
business development decisions of DED (Coordination of the youth placement
programmes).
Objective Statement To provide for informed decision making by providing intelligence reports,
tracking key economic performance indices, and sourcing, analysing economic
data required for policies/strategies and intelligence.
Baseline 2 Business Intelligence reports were developed against the annual target of 4 as
at the end of 2nd quarter of 2014/15.
Strategic Objective 5.3 Impact Analysis reports informing the appropriateness and contribution of DED’s
policies, strategies and projects to achieving DED’s Strategic Goals of radical
economic transformation and re-industrialisation of Gauteng.
30
Objective Statement To provide quantitative information about total economic (direct and indirect)
impact by researching and writing reports about information on the value
of the benefits of a projects and policies being implemented in the province
for informed decision making, improvements on strategies and policies being
implemented, through providing estimates of economic impacts of projects
and policies, measuring their overall contribution to the economy at regional,
national/provincial, and estimates of different industries including benefits that
they bring to Gauteng economy.
Baseline New strategic objective, no baseline information.
Strategic Objective 5.4 Revitalised and modernised township economies reflecting radical transformation
and reindustrialisation of Gauteng’s economy.
Objective Statement To revitalise and modernise township economies to address the legacy of
apartheid’s spatial economic planning and contribute to the triple policy
imperatives of job creation, an inclusive economy and equality.
Baseline 3 economic development projects were supported at local and regional levels,
3 capacity building interventions were held to municipalities against the annual
target on 4.
Strategic Objective 5.5 Strategic economic infrastructure that supports and facilitates radical economic
transformation and re-industrialisation of Gauteng.
Objective Statement To re-industrialise and build economic infrastructure that will boost employment
creation and economic inclusion.
Baseline Mini Factory (ASP 10 and 11) - The mini factory 10 phase 1A (factory) is
scheduled for completion at the end 2014/15 financial year Phase 2
Mini Factory 11 - second building construction will commence in April 2015
Construction of phase 1 of the Bio Park was completed and launched in October
2014
Hominid House upgrade at Maropeng was concluded and handed over during
December 2014
Strategic Objective 5.6 Revitalised and modernised industries reflecting reindustrialisation of Gauteng’s
economy.
Objective Statement Re-industrialisation to support the growth of labour intensive industries.
Baseline DED has contributed to the Gauteng Master Skills Plan and/or re-industrialisation
as it pertains to its focus area. These include training for body repair shops,
simulator training academy, foundry and tooling training, tourism, reskilling and
technical training.
Strategic Objective 5.7 Green industries contributing to energy security as an important element of
radically transforming and re-industrialising Gauteng’s economy.
Objective Statement Green economy interventions to support sustainable economic growth and
interventions.
Baseline The CIC has been established to provide a one-stop shop enterprise development
support to SMMEs and researchers.
CIC has contracted ten new pre-incubates receiving technical advisory and
incubation services.
CoachLab currently has 36 learners in the CoachLab@JCSE and Maxum

Innovation Factory has 23 new pre-incubation entrepreneurs in the programme
and Maxum Core managed to secure 22 incubation companies.
31

SUMMARY OF PAYMENTS AND ESTIMATES: ECONOMIC PLANNING

R thousand 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Policy and
4 357 8 198 5 565 10 877 12 333 12 333 16 608 19 514 20 490 21 515 22 590
Planning
Research and
7 100 4 809 6 721 10 203 7 175 7 175 8 000 8 400 8 820 9 724
Development
9 261
Knowledge
3 502 3 025 715 10 919 1 599 1 599 - - - -
Management
-
Monitoring
3 192 12 173 404 8 791 3 335 3 335 3 824 4 068 8 846 9 288 9 753
and Evaluation
Economic
Infrastructure - - - - - - 96 900 38 853 40 796 42 836 44 978
Development
Sector and
Industry - - - - - 38 760 35 290 37 055 38 908 40 853
Development
Inclusive
- - - - - - 12 400 13 121 13 777 14 466 15 189
Economy
Total
payments and 18 151 28 205 13 405 40 790 24 442 24 442 176 493 119 247 129 783 136 273 143 087
estimates
The Economic Planning programme will continue to be the economic intelligence nerve-centre in forming strategic
decision making and targeted sector development strategies within the department. In this regard, a data-driven
Government Information System will be established to improve the quality of outputs produced by the Research and
Knowledge Management sub-programme.
The focus of the programme is the development of evidence based policies and tracking the contribution of the GEGDS.
The total allocation of the programme amounted to R18.2 million in 2011/12 and increased to R28.2 million in the 2012/13
financial year before decreasing to R13.4 million in 2013/14. The fluctuation is as a result of the additional research
work completed under the Research and Development sub-programme in 2012/13. For the 2014/15 financial year, the
allocation was adjusted to R24.4 million and funds were reprioritised towards TER projects. Over the 2015 MTEF, the total
programme budget grows to R176.5 million in 2015/16 due to infrastructure projects to the value of R136.3 million. In the
2016/17 financial year, the allocation declines to R119.2 million before increasing to R129.8 million in 2017/18.
In the 2011/12 financial year, the largest budget under the programme was allocated to Research and Development with
R7 million, followed by the Policy and Planning sub-programme which amounted to R4.3 million. In the 2015/16 financial
year the budget for Policy and Planning increased to R16.6 million and in 2017/18 increased to R20 million.
In the 2013/14 financial year, the allocation for Research and Development remained high at R6.7 million, followed by
Policy and Planning at R5.6 million, Knowledge Management at R715 000 and Monitoring and Evaluation with a budget
of R404 000. In the 2017/18 financial year the allocation for Policy and Planning amounts to R20.5 million; both allocations
for Research and Development and Monitoring and Evaluation amount to R8.8 million; while Economic Infrastructure
amounts to R40.8 million.
The department has added Economic Infrastructure Development which will facilitate the implementation of
infrastructure projects within the group and across the province. The funding for Economic Infrastructure came from
the TER programme. There is also Sector and Industry Development which focuses on delivering sustainable sector
development strategies and programmes that ensure decent work, foster economic growth and diversification of the
provincial economic base. The department has reprioritised the budget to accommodate this sub-programme.
Compensation for this programme fluctuated from R8.1 million in 2011/12, decreased to R7 million in the 2013/14 main
appropriation. The compensation budget significantly increases to R27 million in 2014/15. Over the 2015 MTEF, the
allocation increases even further to R62.6 million in 2015/16 and then to R64.1 million and R64.4 million in 2016/17 and
32
2017/18 respectively. The increase in personnel is due to the newly created sub programme to cater for the emerging
priorities emanating from SOPA.
Goods and Services grows from R9.9 million in 2011/12 to R14.9 million in 2012/13 before decreasing R6.4 million in
2013/14 financial year. An amount of R13.1 million is allocated in the 2014/15 financial year and is reduced to R6.7 million
in the adjustment budget due to the implementation of cost cutting measures. In the 2015/2016 financial year the budget
increases to R110.8 million mainly for infrastructural projects before decreasing to R55.1 million in 2016/17 and R65.3
million in 2017/18.

RISK MITIGATION
DED Agencies developing their Service Level Agreement (SLA) between DED and Agencies to clearly spell out
own policies, strategies, etc. specific and concurrent responsibilities; and how concurrent responsibilities will
be managed in terms of economic policy and planning.
Disjuncture between DED All polices, plans and strategies developed by Agencies to be checked for
economic policies and plans alignment and discrepancies by the DED Economic Planning unit
and those developed by
Agencies
Insufficient professional capacity HR to focus on recruiting the appropriate skills for this unit of the DED
to conduct research and
develop policies, strategies and
plans
33
PART C: LINKS TO OTHER PLANS
13. LINKS TO THE LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANS
The matter of long term infrastructure and other capital plans is not applicable to the DED at this stage.
14. CONDITIONAL GRANTS

The matter of conditional grants is not applicable to the DED at this stage.
15.PUBLIC ENTITIES
The MEC is responsible for the following public entities which have been established in terms of various legislations.
Consequently the department subsidises these entities on an annual basis namely:
NAME OF PUBLIC ENTITY SERVICES RENDERED BY THE PUBLIC ENTITY
GGDA Serves as an implementing arm of the DED and is primarily responsible for
developing and implementing programmes and projects that respond to the
triple policy imperatives of job creation, economic inclusion and equality and
contribute to the strategic outcome oriented goals of radically transforming and
re-industrialising Gauteng’s economy. The GGDA has to specifically contribute to
the strategic objectives of the DED’s Integrated Economic Services and Trade and
Sector Development budget programme areas.
GEP Serves as an implementing arm of the DED and is primarily responsible for
supporting and building the SMME and Co-operatives sectors. The GEP
provides financial and non-financial support to entities in these sectors. The
success of work is embedded in the success of the entities its supports and
the extent to which those entities contribute to the triple policy imperatives of
job creation, economic inclusion and equality. The GEP contributes directly to
the strategic outcome oriented goals of radical economic transformation and
reindustrialisation of Gauteng’s economy. It specifically contributes to strategic
objectives that speak to SMMEs, Co-operatives, township economies, trade and
export promotion and 75% local procurement
GTA Serves as an implementing arm of the DED and is primarily responsible for
developing and implementing programmes and projects, within the tourism
sector, that responds to the triple policy imperatives of job creation, economic
inclusion and equality. The GTA/ DIN/ COH contribute to the strategic outcome
oriented goals of radically transforming Gauteng’s economy. The GTA has to
specifically contribute to the strategic objectives of the DED’s Trade and Sector
Development budget programme areas.
GGB Serves as an implementing arm of the DED and is primarily responsible for
regulating the gambling industry and maximising the benefits that can be reaped
from the industry for broader socio-economic development. The GGB specifically
contributes to the relevant strategic objective of the DED’s Business regulation
and Governance budget programme areas.
16. PUBLIC-PRIVATE PARTNERSHIPS

There are no public-private partnerships that will be ending during the five-year period.
34
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36
94 Main Street, Matlotlo House,
Johannesburg
Private Bag x 091, Marshalltown,
2107
Tel: 011 355 8000
Fax: 011 355 8694
www.ecodev.gpg.gov.za

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STRATEGIC PLAN

▪ Gauteng Growth and Development Agency (GGD);

Lebogang Maile (MPL)

STRATEGY PLAN 2014/15_2018/19

Mr. Branham Francis Signature: __________________________

Mr. Kgomotso Mojapelo Signature: _________________________

Ms. Phindile Mbanjwa Signature: __________________________

MEC Lebogang Maile Signature: __________________________

STRATEGY PLAN 2014/15_2018/19

STRATEGY PLAN 2014/15_2018/19

STRATEGY PLAN 2014/15_2018/19

▪ Provide ethical, consultative and people-focused services;

STRATEGY PLAN 2014/15_2018/19

PART A: STRATEGIC OVERVIEW

4. LEGISLATIVE AND OTHER MANDATES

ACT RELEVANCE TO THE DED

Business Act, 1991 Provides for licensing and carrying on of business.

Township Planning and Establishes the Town Planning Appeal body.

STRATEGY PLAN 2014/15_2018/19

PART A: STRATEGIC OVERVIEW

ACT RELEVANCE TO THE DED

Development Facilitation Facilitates land development applications.

Less Formal Township Fast-tracks less formal township establishment.

Companies Act, 1983 as Consolidates and amends law relating to companies.

GENERIC GOOD GOVERNANCE LEGISLATION

▪ Public Service Act, 1994, as ▪ Public Service Regulations, 2001 as amended

▪ Skills Development Act, 1998

4.2. POLICY MANDATES

The G2055 and its precursors

STRATEGY PLAN 2014/15_2018/19

PART A: STRATEGIC OVERVIEW

NATIONAL AND PROVINCIAL

GENERIC GOOD GOVERNANCE POLICY FRAMEWORKS

4.3. RELEVANT COURT RULINGS

4.4. PLANNED POLICY INITIATIVE

ECONOMIC CLUSTER: 2014-2019 MTSF PRIORITIES

INNOVATION-DRIVEN, Develop innovation-driven, knowledge-based, smart and green economy by

STRATEGY PLAN 2014/15_2018/19

PART A: STRATEGIC OVERVIEW

ECONOMIC CLUSTER: 2014-2019 MTSF PRIORITIES

KNOWLEDGE-BASED Expansion of the Gauteng Biotechnology Science Park’s Research and

KEY GAME CHANGERS: 2014 - 2019

STRATEGY PLAN 2014/15_2018/19

Gauteng’s Economy Radically Transformed Gauteng’s Economy Re-Industrialised

STRATEGY PLAN 2014/15_2018/19

PART A: STRATEGIC OVERVIEW

▪ Radical economic transformation;

TABLE 1: GDP GROWTH & CONTRIBUTION TO WORLD GDP, BRICS, 2008-2017

Brazil 3.5% 1.9% 3.0% 2.8%

China 10.2% 6.9% 12.2% 16.9%

India 7.5% 6.4% 5.7% 7.0%

Russia 3.8% 1.2% 3.6% 3.2%

SA 3.3% 2.4% 0.7% 0.6%

STRATEGY PLAN 2014/15_2018/19

PART A: STRATEGIC OVERVIEW

TABLE 2: GDP-R CONTRIBUTION.

Source: Global Insight

TABLE 3: GROSS VALUE ADDED BY SECTOR (GVA-R) AT CONSTANT 2005 PRICES

Finance 26.0% 25.6% 25.8% 26.0% 26.2%

Community 24.5% 24.3% 24.5% 24.7% 24.8%

Manufacturing 16.4% 16.8% 16.8% 16.8% 16.5%

Trade 13.2% 13.5% 13.6% 13.7% 13.7%

Transport 9.9% 9.8% 9.8% 9.8% 9.8%