The Portfolio Committee on Trade and Industry having considered the Annual Report of the Department of Trade and Industry for 2003/4 financial year, Medium Term Expenditure Framework as well as Quarterly Financial Statements presented before the Committee, reports as follows:


The main features of the 2003/4 budget are:

The Department provided the Committee with a report of highlights of key outputs delivered in the past financial year as well as outputs delivered since 1 April this year. These include:


The Committee also received a report on output targets for 2004/05. These include a number of detailed targets aimed at increasing the contribution of small enterprises to the economy; advancing broad based Black Economic Empowerment, raising the levels of investment; increasing market access opportunities for South African enterprises; building skills, technology and infrastructure and generally improving the performance and capacity of the Dti in all areas. A feature output this year is the identification of "flagship projects", that need to be delivered on as identified before the end of the financial year. These include:


The Committee deliberated on the annual reports of the four agencies from the COTI group. Highlights of these reports included.

The South African Bureau of Standards (SABS)


Industrial Development Corporation





National Lotteries Board


Khula Enterprise Finance



The Committee is pleased to report continued progress in the management, presentation, and reporting on the DTI’s budget. A Department once known for its significant underspending and large roll overs, is now a Department that spends almost all of the funds allocated to it by Parliament on the activities approved by Parliament. The Department’s Programmes are also now closely aligned to its major activities and financial control and reporting systems seem to be functioning effectively. In addition, the Committee received a comprehensive report indicating that the Department had delivered on a number of key output targets identified in the 2003/4 budget.

The Department reported that it was in the process of finalizing a mechanism to measure the impact of its programmes on the economy – in other words to measure the extent to which its outputs contribute to the achievement of its outcome targets and, the Committee in exercising its oversight role will ensure a continued interaction with Dti’s strategic measurement system.

While the Committee found that in general there was improved delivery in 2003/4 on the output targets identified, a few matters of concern were identified and these include a declining trend on IDC’s approvals and increase in their operational losses.

It is the Committee’s earnest hope that the merger of Ntsika and NAMAC (whose programmes while limited in scope have often been relatively effective) will provide the basis for a more effective diagnostic, mentoring and incubation service for small business.

The Committee notes that Khula’s indicators are positive.

The challenge of responding to the needs of persons operating in the "second economy" by creating new opportunities for higher quality sustainable livelihoods, has been identified by the President and Government as key and important priority. Many of the Dti structures the Committee interacted with reported that many of their existing products and services are being transformed to respond to the challenges of improving conditions in the "second economy". The Committee welcomes the new focuses of the Dti, as well as the commitment to begin to implement the broad based BEE strategy.





Report to be considered.



Chairperson Date