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MPUMALANGA ECONOMIC GROWTH AND DEVELOPMENT PATH TOWARDS A MORE EQUITABLE AND INCLUSIVE ECONOMY PREMIERS DIALOGUE WITH SETAs INGWENYAMA LODGE WHITE RIVER 02-03 MAY 2013

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1.MEGDP PROCESS 2.ALIGNMENT WITH OTHER FRAMEWORKS 3.TARGETS OF MEGDP 4.CONSULTATIONS 5.PROJECTS 6.ROLE OF SETAS IN MP PRESENTATION OUTLINE

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MEGDP PROCESS

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Milestones 1.Oct 2010: National Growth Path Adopted (National Gvt) 2.Dec 2010: Provincial Retreat for Mpumalanga Economic Growth and Development Path i.e. MEGDP framework 3.Mar-Oct 2011: Stakeholder consultation on draft MEGDP framework 4.Nov 2011: Mpumalanga Economic Growth and Development Path adopted (Provincial Gvt) 5.2012: National Development Plan (National Gvt) GROWTH PATH

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ALIGNMENT

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6 4. Decent Employment through inclusive growth 5. A skilled and capable workforce to support an inclusive growth path 6. An efficient, competitive and responsive economic infrastructure network 7. Vibrant, equitable and sustainable rural communities with food security for all 10:Environmental Assets and Natural Resources that are well protected and continually enhanced GOVERNMENT PRIORITY OUTCOMES

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7 National Developmental Growth Path Key Drivers 1.Infrastructure Development 2.Climate Change & the Green Economy 3.Agriculture & Agro Processing 4.Minerals & Beneficiation 5.Manufacturing 6.Knowledge Based Sectors 7.Tourism & Business Services 8.The Social Economy 9.Public Sector 10.Regional Economy Key Elements To improve the labour absorption of the economy (the jobs yields of each billion rand of investment and each one percent of growth in GDP), to reduce carbon emissions and to strengthen the link between science and technology on the one hand and growth and jobs on the other. NEW GROWTH PATH

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8 Through social dialogue, committments have been signed at national level with social partners in the following accords: 1. National Skills Accord 2. Basic Education and partnership with schools 3. Local Procurement Accord 4. Green Economy Accord ACCORDS

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9 IPAP Sectors agro-processing, bio-fuels, forestry, tourism, cultural industries, aquaculture Nuclear, advanced material, aerospace & ICT industries Promotion of Green & Energy Efficient goods & services Downstream mineral beneficiation Linking tourism & cultural industries Stronger integration between sector strategies, skills development plans & commercialisation Substantial contribution to the creation of decent jobs Rural Development INDUSTRIAL POLICY ACTION PLAN

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Linking the National Development Plan to the MEGDP 10 CREATE JOBS EXPAND INFRASTRUCTURE TRANSITION TO LOW CARBON ECONOMY TRANSFORM URBAN AND RURAL SPACES EDUCATION AND TRAINING PROVIDE QUALITY HEALTHCARE BUILD A CAPABLE STATE FIGHT CORRUPTION TRANSFORMATION AND UNITY MEGDP

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TARGETS OF MEGDP

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Target: reduce unemployment by 15% to 2020 Move from 890 000 employed in 2010 to 1.6mil employed in 2020 Create 719 000 new jobs *Condition: Provincial economy needs to grow at a rate between 5 & 7 percent per annum MPUMALANGA IN THE NEXT TEN YEARS

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PRINCIPLES UNDERPINNING DEVELOPMENTAL INITIATIVES 14 MEGDP principles BBBEE Co- operatives SMEs Access to funding Beneficiation & agro- processing Community- driven development Youth focused jobs and development

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15 Human Capital Development Rural Development Infrastructure Beneficiation /Production MEGDP FRAMEWORK SPATIAL FRAMEWORK + ENVIRONMENTAL MANAGEMENT FRAMEWORK & BDCP HRDS CRDP STRATEGY INFRASTRUCTURE & WATER MASTER PLANS INDUSTRIAL PLAN + TRADE & INVESTMENT PLAN Youth, PDIs SMMEs Co-ops Large Industry Youth, PDIs SMMEs Co-ops Youth, PDIs SMMEs Co-ops Large Industry Youth, PDIs SMMEs Co-ops Large Industry POAPOA POAPOA Agriculture & Forestry Mining Manufacturing Tourism Energy &Green Economy ICT JOBS MEGDP: COMPONENTS

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CONSULTATIONS

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Skills: Need to focus principally on trade and artisan skills on a mass scale Immediate intervention is to upgrade FETs to produce skills that are aligned to the needs of the economy The proposed University as a longer term intervention Private sector willing to assist/participate in skills training ( i.e. community training, municipal technicians) Basic education needs major improvement to lay proper foundation for further training SUMMARY OF ISSUES RAISED

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PROJECTS

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19Future Projects PROJECTMain Sectors Participating in Project Key Pillars Addressed 1. Fresh Produce Market Agriculture/Agro- processing/Transport & Logistics Rural Dev Production + Beneficiation Infrastructure 2 Lowveld Food Technology Centre Agriculture/Agro-processing- Manufacturing Human Capital Development/ Beneficiation + Production 3 Forestry Technical Training ForestryHuman Capital Development 4 Wood SMME Incubator ForestryProduction + Beneficiation/Human Capital Development/ Rural Dev 5 Maths, Science & Technology Academy MiningHuman Capital Development 6 Entrepreneur Development Centre MiningHuman Capital Development Production+ Beneficiation 7 Water Infrastructure Mining/ EnergyInfrastructure Rural Development 8 Water Reclamation Mining/ EnergyInfrastructure 9 Energy Efficiency-Retrofitting Energy & Green EconomyInfrastructure 10 Tourism Infrastructure TourismInfrastructure Rural Dev Production+ Beneficiation 11 ICC & Tourism Dev Node TourismInfrastructure 12 High Altitude Training Centre Cultural IndustriesInfrastructure 13 Cultural Hub Cultural IndustriesInfrastructue 14 Mpumalanga University All SectorsInfrastructure 15 Komatipoort Dry Port Agro-Forestry-Transport-ICTInfrastructure

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20PRIORITY PROJECTS: 2013-14 (SOPA feb 2013) 1.Water Infrastructure (Lead: MEGA) 2.Maths, Science & Technology Academy (Lead: Dept of Education) 3.Mpumalanga International Fresh Produce Market (Lead: Dept. of Agriculture, Rural Dev & Land Admin) 4.University (Lead: Dept. Of Higher Education & Training) 5.Cultural & Creative Hub (Lead: Dept of Culture, Sport & Recreation) 6.High Altitude Training Centre(Lead: Dept of Culture, Sport & Recreation)

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ROLE OF SETAs

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Main areas of cooperation are: 1.Human Capital Development Maths, science and Technology Academy ( to improve the capacity of educators in these learning areas and increase the uptake of learners in maths and science based degrees). Bursaries to assist high performing leaners in Maths and Science, particularly from previously disadvantaged High Tech Centre of Excellency (To increase the skills-base in the province, prioritising artisan and agricultural skills Mpumalanga University ( Provide support to the establishment of the Mpumalanga University) PARTNERSHIPS(IMPLIMENTING MEGDP)

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2.Enterprise development (local procurement, Incubation Centre) 3.Urban Renewal ( Social and Economic Infrastructure) 4.Sustainable development and environment PARTNERSHIPS(IMPLIMENTING MEGDP)

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Role of SETAs: Support and Facilitation for provision of: Human Capital Development (Pillar1) **Co-Develop, Commit to and Implement a PARTNERSHIP AGREEMENT with stakeholders for the development of appropriate skills in support of the MEGDP

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THANK YOU