The Department of Economic Development and Tourism has been identified as the lead department for the implementation of Outcome 4 & 6 and supports the implementation of Outcome 5, 7 and 10. The implementation of the aforementioned outcomes will contribute towards the achievement of the National Development Plan.

Outcome 4

Government adopted the new medium-term strategic framework (MTSF) in August 2014. The MTSF has 14 Outcomes and the Department of Economic Development and Tourism is responsible for Outcome 4 (decent employment through inclusive economic growth) which has 10 sub-outcomes. During the recent strategic planning session, the following provincial actions were identified under each sub-outcome:

Sub-outcome 1: Productive Investment in effectively crowded in through the infrastructure build programme

• Set baseline for local procurement in terms of the infrastructure build programme specific to the Northern Cape.
• Inform the Provincial PICC of the baselines for local procurement and targets of the Province.
• Strengthen relationships between the Department of Economic Development and the Office of the Premier to ensure that local procurement is supported.
• Tourism Product Development in niche markets and rural areas
• Local Economic Development, red tape reduction and the implementation of the Provincial Spatial Development Framework and Provincial Growth and Development Plan
• Alignment of National Economic Strategy to Provincial needs.
• Coordinate implementation of provincially aligned policies and strategies through Outcomes, Cluster and DEDaT forums.
• Support the Industrial Cluster Development of the Kimberley diamond Hub and SEZ Kimberley Airport Development by promoting investment. 
• Monitoring of provincial beneficiaries (SMME's, Cooperatives, communities, investment trusts, and vulnerable groups).

Sub-outcome 2: The productive Sectors account for a growing share of production and employment

• Alignment with the annual IPAP review.
• Promote creative industries as identified in the IPAP through Tourism Information distribution and Rural Development.
• Implementation of the pillars of the Manufacturing Strategy, resourcing and implementation of Renewable Energy Strategy.
• Provide support to Textile, Metals, Agro Processing, Mineral beneficiation and Green Industries (Renewable Energies).
• Promote Agri Tourism through Route development.
• Support the implementation of the APAP pillars and align provincial actions with annual APAP review.
• Support Ocean Economies through Operation Phakisa in Wines, Fruit and Vegetables, Red Meat, Small-Scale Fisheries.
• Alignment/Provincialisation of the Mineral Beneficiation Strategy and 10 point plan for the mining sector.
• Provide inputs in the review of the National Mining Sector Strategy.
• Develop and implement Precious and Semi-Precious metals beneficiation strategy.
• Focus on Social Labour Plans and PMPI implementation and provincialisation.
• Implementation and monitoring of Tourism Master Plan , NC Tourism Entity Act 2008, NTSS, Rural Development strategy and Heritage Tourism Strategy.
• Identify destressed mining town and prioritize, plan and resource via national funding applications and Social Labour Plans and address lack of resources.
• Revitalisation of mining towns through extended mining exploration development of other industries.
• Exploration of economically viable shale gas energy.
• Impact review on the sector in terms of the departmental research agenda.
• LED planning inclusion and stakeholder coordination. 
• Develop a provincial sector specific empowerment compliance database and analyse trade flows against national economic goals.

Sub-outcome 3: The elimination of unnecessary regulatory burdens and lower price increases for key inputs and wage goods fosters business confidence, reduces costs for working people and producers, and sustain investment and economic growth

• Regular meetings of NC Gambling and Liquor Boards with their respective industry stakeholders to identify blockages to growth, social investment and employment creation.
• Conduct consultative with Tourism Stakeholders to identify barriers.
• Regular meeting with National Economic Development Department, dti and SMME department to share projects information and blockages.
• Participation in government structures to advance investment promotion.
• Identify market abuse through analysis of consumer complaints and propose interventions.
• Engage in joint social responsibility programmes to address the social ills related to liquor, gambling and consumer exploitation.

Sub-outcome 4: Workers education and skills increasingly meet economic needs

• Implementation Forum for Outcome 4 and 6 to identify skills requirement for provincial economy.
• Support the Provincial Skills Development Forum with analysis and information.
• Conduct a skills gap analysis to identify industry specific skills needed in the Province.
• Enhance skills development in the Tourism Industry of the Province.
• Skills Development specific to needs SMMEs (Business Management, Financial Management and Marketing Management).

Sub-outcome 5: Spatial imbalances in economic opportunities are addressed through employment in agriculture, the build programme and densification in the metros

• RaLED planning and support, provide business support and access to finance.
• Ensure alignment of DEDaT township revitalisation programme to the National intervention on the improvement of social and economic conditions of towns.
• Monitoring and evaluation of set initiatives.

Sub-outcome 6: Macroeconomic conditions support employment –creating growth

• Advise municipalities on red tape reduction to attract investment

Sub-outcome 7: Workplace conflict is reduced and collaboration between government, organised business and organised labour improves

• National competency of the Department of Labour

Sub-outcome 8: Economic opportunities for historically excluded and vulnerable groups are expanded and the growth in small business and cooperatives is improved markedly

• Ensure that licence & trading conditions provide economic opportunities for historically excluded and vulnerable groups.
• Ensure economic opportunities for identified tourism enterprises: Access to Funding, Marketing, Awareness and development.
• Implementation of SMME, Co-ops and Incubation strategies and skills development.
• Implementation of KIDJA Incubation strategy.
• Monitoring of provincial beneficiaries (SMME's, Cooperatives, communities, investment trusts, and vulnerable groups).

Sub-outcome 9: Public employment schemes provide short term relief for the unemployed and build community solidarity and agency

• Rural Tourism Product Development - Facilitation of project management.
• Implement projects as per DORA.
• Monitoring of provincial beneficiaries (SMME's, Cooperatives, communities, investment trusts, and vulnerable groups).
• Establish partnerships in establishment of Clusters.

Sub-outcome 10: Investment in research, development and innovation support inclusive growth by enhancing productivity of existing and emerging enterprises and supporting the development of new industries

• Monitor the performance of the NGP job drivers
• Establishment of provincial Innovation Forum in terms of DST regional model, inputs and coordination to the National Economic Research Advisory Network (ERAN) coordinated by the dti.
• Contribute to setting the provincial research agenda through the Provincial Research Forum.
• Strengthening partnerships with SPU, VUT, and SKA through MOU/MOA for joint research.
• Establish and strengthen partnerships between industry and government.
• Implementation of the NCISS and support the implementation of NCRES.
• Conceptualisation of NC Space science economy framework.

Outcome 5

Outcome 5 “A skilled and capable workforce to support an inclusive growth path”, is one of the of the government outcomes being led by the Department of Higher Education and Training (DHET).

Government has committed itself through the NDP 2030 that South Africans should have access to education and training of the highest quality, leading to significantly improved learning outcomes. To achieve this vision, a number of outputs were identified and that include the increased access and success in programmes leading to intermediate and high level learning.

This Outcome also contributes to the implementation of Outcome 4, under sub-outcome 5 “workers’ education and skills increasingly meet economic needs”. Currently, there are eight (8) indicators under this sub-outcome and DEDaT is responsible for reporting on five (5) of these.

Outcome 6

As per the recent EXCO resolution, the department was mandated with the coordination and reporting of outcome 6 “An efficient, competitive and responsive economic infrastructure network”. Outcome 6 of the MTSF is formulated to achieve the objectives as set out in Chapter 4 of the NDP: Economic infrastructure – the foundation of social and economic development. The Province has shown some progress in the following Strategic Integrated Projects which are relevant to this outcome:

• SIP 3: South Eastern node &corridor development
• Manganese Mining Development
• Manganese Sinter Plant
• Manganese Rail Line Upgrade
• SIP 5: Saldanha – Northern Cape Development Corridor
• Iron Ore Rail Line Upgrade
• Iron Ore Mining Development
• Ibubhesi Gasfield
• Vaal-Gamagara Pipeline
• Kathu Supplier Park
• SIP 8: Green Energy
• SIP 11: Agri-logistics and rural infrastructure
• SIP 14 :Higher Education
• SIP 15: Expanding access to communication technology
  • Pixley Ka Seme Phase 1; roll out of the broadband
• SIP 16: Square Kilometre Array (SKA) and Meerkat
  • SKA science visitor centre
• SIP 18 : Water and sanitation infrastructure

Outcome 7

Outcome 7 “comprehensive Rural Development and Land Reform”, is coordinated by the Department of Agriculture, Land Reform and Rural Development (DALRRD). As a department we support the actions relating to development and support of rural cooperatives.

Outcome 10

The NDP’s 2030 vision is that South Africa’s transition to an environmentally sustainable, climate-change resilient, low-carbon economy and just society will be well under way. The plan expects to achieve this vision by implementing this outcome in 3 phases, with the first focusing on planning, piloting and investing in the creation of a framework for implementing the transition to an environmentally sustainable and low-carbon economy. Outcome 10 “protect and enhance our environmental assets and natural resources”, also links to the implementation of Outcome 4. The Department of Environment, Nature and Conservation (DENC) is the coordinating department for this outcome. 

Direct Mandates

Constitutional mandates

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 10); 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 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 service delivery interventions, has not been passed to date. 

Indirect Mandates

National and Provincial Government policies

These include White papers, Green papers, Frameworks, Guidelines, Manuals,  Strategies and Plans, for example: the National Government Programme of Action, the People’s Contract, White Paper of Transformation in the Public Service, State of Nation Address by the President, State of the Province Address by the Premier, National and Provincial Budget speeches, Cabinet resolutions, management decisions endorsed by the Executing Authority, the Northern Cape Innovation Fund Policy, Departmental policies on security, information management, HIV and AIDS etc.

Economic Policy Mandates

a) 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. In addition to the employment creation, the plan sets out mechanisms by which to improve the living conditions of citizens as measures by the 14 outcome areas that the government will focus on.

 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.

The Department of Economic Development and Tourism is directly responsible for Chapter 3 (Outcome 4 in the Outcomes Based Approach) of the NDP which focusses on the following amongst others:

• Creating an environment for sustainable employment and economic growth
• Strengthening the capacity of government to implement its economic policies
• Promoting employment in labour absorbing industries
• Promoting exports and competitiveness
• Diversifying the economy etc.

In addition, the Executive Council, according to Resolution No. 022/2015 (04) dated 20^th April 2015, approved that “the Department of Economic Development and Tourism leads Outcome 6, assisted by the Department of Infrastructure and Public Works and the Office of the Premier.”

The five sub-outcomes are:

• Regulation of infrastructure improved.
• Reliable generation, transmission and distribution of energy ensured through SIPs 1, 8, 9 and 10.
• Maintenance, strategic expansion, operational efficiency, capacity and competitiveness of our transport infrastructure ensured.
• Maintenance and supply availability of our bulk water resources infrastructure ensured.
• Expansion, modernisation, access and affordability of our Information and communications infrastructure ensured.

b) Industrial Policy Action Plan

The Industrial Policy Action Plan (IPAP) is aimed at growing the economy and creating about 129 000 jobs in order to reduce unemployment. The aim is to achieve this by preventing industrial decline and supporting the growth and diversification of the South Africa’s manufacturing sector. IPAP is aligned to the National Development Plan (NDP) and also located within the New Growth Path (NGP) framework. The plan is reviewed annually to measure progress on implementation and revise targets.

The Northern Cape supports the implementation of IPAP through the Provincial Manufacturing Strategy and its implementation plan. As a province with mineral wealth there is big opportunity of mineral beneficiation which is one of the pillars of IPAP.

c) New Growth Path

The New Growth Path (NGP) provides bold, imaginative and effective strategies to create the millions of jobs South Africa needs. The aim is to create five million new jobs by 2020 so that unemployment can decrease by 15 per cent. To realise this target, the focus was set to be on areas that have the potential for creating employment on a large scale (what is called “jobs drivers”) and securing strong and sustainable growth in the next decade.

According to the Provincial Growth and Development Strategy (PGDS) the Province has set an annual job creation target of 16 000. The NGP on the other hand has outlined the following targets up to 2020:

Table 1 :Job creation targets for the New Growth Path

The NGP puts special emphasis on new economies i.e. the Green and Knowledge economy. The Northern Cape has the potential of benefiting a lot from these new economies as the province has been identified as the solar hub of the country and the Square Kilometre Array (SKA).

To date the province have secured about 21 projects from the three respective bid windows of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The majority of projects are solar energy generation projects, Photovoltaic (PV) and the Customised Sector Programme which includes Concentrating Solar Power (CSP), with a few wind and small hydro projects. These projects will bring substantive greenfields investments into the province resulting in direct and indirect job creation and community upliftment.

Infrastructure is one of the key job drivers identified in the New Growth Path. 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).

The full implementation of projects identified within these SIPs will result in more jobs being created in the Province.

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;
• 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.

Medium Term strategic Framework

Medium Term Strategic Framework (MTSF) sets out government priority focus areas for 5 years. The country adopted the National Development Plan (NDP) which is a 20 year development plan, the NGP, IPAP and National Infrastructure Plan (NIP) which are short to medium term plans that are aimed at implementing the NDP.

From these plans Government identified key priority areas to be focused on for a period of 5 years. These priority areas form the MTSF. The MTSF has 14 outcomes of which the Department of Economic Development and Tourism is responsible for Outcome 4 “Decent Employment through inclusive economic growth”.

The draft 2014-19 MTSF Outcome 4 Chapter identifies the following 8 Sub-Outcomes and each has its specific actions, indicators and targets:

1. Productive investment is effectively crowed in through the infrastructure build programme.
2. The productive sectors account for a growing share of production and employment, exports are diversified, African regional development is accelerated, carbon intensity is reduced and the organs of the state improve their alignment in support of employment-creating growth.
3. The elimination of unnecessary regulatory burdens and lower price increases for key inputs and wage goods fosters investment and economic growth.
4. Workers education and skills increasingly meet economic needs.
5. Expanded employment in agriculture.
6. Macroeconomic conditions support employment –creating growth.
7. Reduced workplace conflict and improved collaboration between government, organised business and organised labour.
8. Public employment schemes provide short term relief for the unemployment and build community solidarity and agency.

CHANGES IN THE POLICY ENVIRONEMENT

Operation Phakisa (Hurry Up) was launched by the honourable President Jacob Zuma in his State of the Nation Address on 19 July 2014. The Mining leg of Operation Phakisa (a sector-focused initiative to accelerate implementation of the National Development Plan (NDP will identify key constraints to investment and growth of the industry as well as develop a shared vision and growth strategy for the long term development and transformation of the sector. The strategic intent of Operation Phakisa (mining) is to fast-track the contribution made by the mining industry to beneficiation of industrialisation. 

In addition, the Ocean’s Economy has the potential to make an exponential contribution to the GDP through significant job creation. The areas for growth include Marine Transport and Manufacturing, Offshore Oil and Gas exploration, Aquaculture and Oceans’ Governance and the Marine Protection Services.