Constitutional Mandate
The broad mandate of the Department is derived from the Constitution of the RSA, 1996, which regulates government's duties and responsibilities to the citizens, in particular the promotion of socio-economic rights.
Specific reference needs to be made to Provisions in the Bill of Rights (chapter 2) relating to equality (section 9); human dignity (section 1O); freedom of trade, occupation and profession (section 22); and chapter 3 of the Constitution dealing with intergovernmental relations that inform the Department's work.
There have been no changes to the Constitutional mandates.
Legislative and Policy Mandates
The following directive commands the mandate of the Department;
National legislation (bills, acts, regulations, charters), of which the following are the most important:
- Constitution of RSA, 1996
- Public Service Act (PSA) and Public Service Regulations (PSR), as amended;
- Public Finance Management Act (PFMA) and Treasury Regulations (TR), as amended; and the
- Division of Revenue Act (DoRA).
Relevant line function legislation and regulations includes the following (National and Provincial, e.g., legislation pertaining to small businesses, companies, competition, gambling, liquor, consumer protection, local government, inter-governmental relations, development and planning, other standards and procedures, information, security, human resource management and development, labour, etc., including court decisions).
There have been no changes to the Legislative Mandates that govern the functions of the department. The passing of the Division of Revenue Amendment Bill of 2016, which is introduced to pave way for the National Treasury to allocate funds to urgent and unavoidable interventions, has not been passed to date.
Institutional Polices and Strategies 2020 - 2025
National Development Plan
The National Development Plan is the long-term socio-economic development plan for the country. The plan has a target of increasing employment by 11 million by 2030.
This is proposed to be achieved by:
- Realising an environment for sustainable employment and inclusive economic growth,
- Promoting employment in labour-absorbing industries,
- Raising exports and competitiveness,
- Strengthening government's capacity to give leadership to economic development, and
- Mobilising all sectors of society around a national vision.
Furthermore, the department is responsible for Priority 2: Economic Transformation and Job Creation, through which the NOP developmental objectives are targeted.
National Infrastructure Plan
The South African Government adopted a National Infrastructure Plan in 2012 that intends to transform the economic landscape while simultaneously creating significant numbers of new jobs and to strengthen the delivery of basic services.
The plan identifies 18 Strategic Infrastructure Projects (SIPs). Of the 18 SIPs there are currently six that are of importance to the province namely:
- SIP 3 South-Eastern node and corridor development,
- SIP 5 Saldanha - Northern Cape Development Corridor,
- SIP 8 Renewable Energy,
- SIP 14 Higher Education Infrastructure,
- SIP 15 Expanding access to communication technology, and
- SIP 16 Square Kilometre Array (SKA).
A list of 50 strategic infrastructure projects and 12 special projects were gazetted in July 2020, to be prioritised.
The following are gazetted projects from the Northern Cape:
- SIP 19 water and sanitation
- SIP 21 Transport
- SIP 24 Human Settlements
The full implementation of projects identified within these SIPs will result in more jobs being created in the province.
NATIONAL INFRASTRUCTURE PLAN 2050
- In terms of the section 4 (a) of the Infrastructure Development Act (Act No 23 of 2014), Phase I of the National Infrastructure Plan 2050 for implementation (March 2022.)
- Energy
"investment in associated new industries will be promoted, such as the production of green hydrogen, green chemicals and sustainable aviation fuels."
"Renewable energy technologies." - Digital Communications
SIP 35: S A Connect
Bi-lateral Agreements
International, National and local Multi-party Agreements and Memoranda of Understanding concluded with the province include the following:
- South Africa - China trade agreements;
- Africa - Brazil - India Free Trade Agreement;
- Hunan-Northern Cape Provinces Friendship Agreement;
- Kharas Region - N C Province Twining Agreement
- Sweden - South Africa city-to-city twinning agreement;
- UNOPS - Department of Economic Affairs' Memorandum of Understanding;
- TISA - Department of Economic Affairs' Memorandum of Understanding.
The articulation of the specific mandates derived from these frameworks is found in the strategic and business / performance plans of the different programmes and sub programmes in the Department.
Changes in the Policy Environment
The Medium-Term Development Plan 2024-2029 builds on the foundation laid by the MTSF to achieve the goals of the National Development Plan (NOP)
UPDATES TO INSTITUTIONAL POLICIES AND STRATEGIES
The following additions were made to "Institutional Policies and Strategies 2020 -2025."
National Infrastructure Plan
A list of 50 strategic infrastructure projects and 12 special projects were gazetted in July 2020, to be prioritised.
The following are gazetted projects from the Northern Cape:
- SIP 19 water and sanitation
- SIP 21 Transport
- SIP 24 Human Settlements
On the 61h December 2022, in terms of Section 8(1)(a) read with Section 7(1) of the Infrastructure Development Act, as amended, 2014 (Act no. 23 of 2014) (the Act), the Presidential Infrastructure Coordinating Commission amended the following Strategic Integrated Projects (SIPs):
Strategic Integrated Project No. 20: Energy SIP 20: SUB-PROJECTS
d. Just Energy Transition Program (JETP): National
e. Green Hydrogen National Program (GHNP)
f. Oil & Gas National Program (OGNP)
Re-imagining our Industrial Strategy to Boost Inclusion & Private Investment
Economic growth and development need a transformed productive structure, which can be achieved through industrialisation. However, there are a number of structural constraints that need to be addressed, namely:
- The economy remains insufficiently diversified.
- Inefficient public monopolies imposing high-cost structure for network infrastructure such as electricity and transport.
- Disappointing export performance and exports that are concentrated in minerals and metals products.
- Highly concentrated industrial structures, limited competition and high barriers to entry.• Weak and volatile growth in labour-intensive sectors such as construction, manufacturing and agriculture.
- Skills development not sufficiently linked to the economy's needs and developing capabilities.
- Furthermore, as a result of lessons of successful programmes as well as lessons from what has worked, a better more focussed industrial strategy was proposed which identifies the 5 i's, Engines of Growth, namely;
- Industrialisation: Masterplans and social compacts for National Priority Sectors
- Investment & Infrastructure: Leveraging private investment, expanding infrastructure
- Innovation: Digital economy, developing and diffusing new technologies
- Integration: Complete Africa Free Trade Area to grow investment & exports
- Inclusion: Revitalising Townships, boosting SMMEs, creating jobs, youth, BEE & women empowerment
One of the key lessons learned from the IPAP is that its focus was too broad. For the country and the province to successfully transition to one that is industrialised and globally competitive, the strategy should be more focused on priority sectors as follows:
- Sector 1: Industrial Sector: Automotive, Clothing Textile Leather and Footwear, Gas Chemicals and Plastics, Renewables/Green Economy, Steel and Metal Fabrication
- Sector 2: Agriculture and Agro-processing Sector 3: Mining: Minerals and Beneficiation
- Sector 4: Tourism
- Sector 5: High Tech Sectors/Knowledge based: Digital Economy, ICT and Software Production, Digital Economy, Health Economy Defence Economy
- Sector 6: Creative Sector
- Sector 7: Oceans Economy
National Infrastructure Plan 2050
The National Infrastructure Plan 2050 provides a strategic vision, linked to the National Development Plan objectives, with the aim to increase infrastructure investment, create new jobs through bankable infrastructure projects, and improve governance frameworks that leverage private investment in the development and financing of critical economic infrastructure. The first phase of the plan focuses on critical economic network infrastructure, specifically in the energy (electricity), digital communications, freight transport and water infrastructure, while the second phase will focus on distributed infrastructure and related municipal services.
The province, in alignment with the National Development Plan - Vision 2030, recognises the importance of reliable infrastructure to enhance the quality of life of the community with key priorities being:
- Expanding infrastructure
- Economic development
- Creating jobs and therefore contributing positively to the livelihoods of the people of the province
- Transforming the spatial reality
- Improving education and training
- Addressing the social ills of the province
Economic Transformation, Inclusive Growth and Competitiveness: A contribution towards a growth agenda for the South African Economy
The Economic Policy Division of National Treasury produced the document in 2020 in response to the slow economic growth, rising unemployment rate and lack of investment faced by South Africa at large.
The document is intentionally focused on economic growth and job creation and it acknowledges that a country becomes competitive when it is cost effective, innovative and provides adequate return on investment. The document highlights five fundamental building blocks to achieve long term sustainable growth, namely:
- Improving educational outcomes, with a strong emphasis on early childhood development and a comprehensive reading plan for primary school learners;
- Implementation of youth interventions, including training and apprenticeships;
- Creation of sustainable cities and inclusive transport systems;
- Address the skills gap through a combination of short term (easing immigration regulations for qualified individuals from accredited institutions) and long-term educational reforms; and
- A capable state with functional public-private partnerships.
District Development Model
The District Development Model will be pursued through the "One District, One Plan" model, whereby single and integrated plans from all three spheres of government are implemented in each district with the aim of providing regulatory and policy certainty to local stakeholders.
All planning and budgeting across the state will be based on a shared understanding of District challenges, employing District-level Integrated Development Plans (IDPs) and Spatial Development Frameworks (SDFs) as a base for planning and resource allocation.
These plans will consider issues such:
- Land release and development,
- Infrastructure investment,
- The provision of basic services and
- Support for local economic drivers
Provincial Growth and Development Plan
The Northern Cape PGDP has been developed with the purpose to provide strategic direction in placing the province on a growth trajectory build on four drivers, namely Economic Growth, Development and Prosperity; Social Equity and Human Welfare; Environmental Sustainability and Resilience and Governance.
The document identifies the sectors with high labour intensity and development potential as follows:
- Construction,
- Community, Social and Personal Services,
- Manufacturing,
- Agriculture, Forestry and Fishing,
- Wholesale and Retail Trade, Catering and Accommodation.
- Improving educational outcomes, with a strong emphasis on early childhood development and a comprehensive reading plan for primary school learners;
- Implementation of youth interventions, including training and apprenticeships;
- Creation of sustainable cities and inclusive transport systems;
- Address the skills gap through a combination of short term (easing immigration regulations for qualified individuals from accredited institutions) and long-term educational reforms; and
- A capable state with functional public-private partnerships.
District Development Model
The District Development Model will be pursued through the "One District, One Plan" model, whereby single and integrated plans from all three spheres of government are implemented in each district with the aim of providing regulatory and policy certainty to local stakeholders.
All planning and budgeting across the state will be based on a shared understanding of District challenges, employing District-level Integrated Development Plans (IDPs) and Spatial Development Frameworks (SDFs) as a base for planning and resource allocation.
These plans will consider issues such:
- Land release and development,
- Infrastructure investment,
- The provision of basic services and
- Support for local economic drivers
Provincial Growth and Development Plan
The Northern Cape PGDP has been developed with the purpose to provide strategic direction in placing the province on a growth trajectory build on four drivers, namely Economic Growth, Development and Prosperity; Social Equity and Human Welfare; Environmental Sustainability and Resilience and Governance.
The document identifies the sectors with high labour intensity and development potential as follows:
- Construction,
- Community, Social and Personal Services,
- Manufacturing,
- Agriculture, Forestry and Fishing,
- Wholesale and Retail Trade, Catering and Accommodation.
Medium-Term Development Plan 2024-2029
The Medium-Term Development Plan 2024-2029 (MTDP) serves as the 5-year medium-term plan for the 7th Administration of the Government. It also serves as the implementation framework for the National Development Plan (NOP): Vision 2030. The MDTP continues to align the goals and objectives of the NDP and the Programme of Priorities of the Government of National Unity (GNU). It is also aligned to RSA's international commitments and that of Africa itself as outlined in the African Agenda 2063 and Sustainable Development Goals (SDGs 2030).
It is essentially an economic plan to address the socio-economic challenges. The minimum programme of priorities include:
- Rapid, Inclusive and sustainable economic growth and job creation (Infrastructure, industrialisation, land reform, structural reforms, transformation, fiscal sustainability, macroeconomic management).
- Reduce poverty and tackle the high cost of living (reduce spatial inequality, enhance food security and nutrition, social safety net, basic services).
- Improve the delivery of basic services and bring stability to local government.
- Investing in people through quality education and healthcare.
- Rebuild the capability of the state and create a professional public service (metric based, restructuring of SOEs).
- Strengthen law enforcement agencies to address crime, corruption and GBVF.
- Social cohesion and nation building.
- Foreign policy based on human rights, constitutionalism, and national interest.
The MTDP 2024-2029 proposes three interrelated and interlinked strategic priorities which are:
I. Inclusive Growth and job creation - addressing unemployment, poverty, and inequality through economic expansion and employment initiatives.
II. Reduce poverty and tackle the high cost of living - Ensuring access to essential services such as healthcare, education, and social protection.
Ill. Build a capable, ethical, and developmental state - Enhancing governance, institutional efficiency, and policy implementation.
The mandate of the Department of Economic Development directs it to support the Apex Strategic Priority of the MTDP 2024-2029, i.e., Inclusive Growth and Job Creation.
The prioritisation criteria towards interventions include:
The prioritisation criteria towards interventions include:
| Prioritisation Criteria | Description |
|
Sectors in Distress |
Prioritise sectors that are currently vulnerable but have a large employment base such as mining, construction, and manufacturing. Promote diversification within these industries to reduce dependency on a single sector. |
|
Scalability |
Prioritise programmes that have the potential to create a significant number of jobs, especially in sectors that are labour-intensive. Focus on projects that can drive through increased productivity and economic output. |
| Infrastructure |
Prioritise investment in infrastructure projects that can provide long-term benefits and support other sectors (e.g. transportation, energy, telecommunications). Engage PPPs to leverage private sector expertise and investment. |
|
Industrialisation |
Prioritise industries that can scale rapidly and have extensive reach, like agriculture and tourism, which can have widespread economic benefits. Focus on projects that can drive GDP growth through increased productivity and economic output. |
|
Research and Development |
Prioritise investment in R&D with a focus in practical applications that SMEs can adopt. Facilitate the transfer of technology from research institutions to the market, ensuring that innovations lead to new business opportunities. |
The Outcomes include:
- Increased employment opportunities.
- Re-industrialisation, localisation, and beneficiation.
- Enabling environment for investment and improved competitiveness through structural reforms.
- Increased infrastructure investment and job creation.
- Energy security and just energy transition.
- Supportive and sustainable economic policy environment.
- Increased investment, trade and tourism.
- Science, technology, and innovation for growth.