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Municipal entity of the City of Tshwane 2006/019396/07
1
TSHWANE ECONOMIC DEVELOPMENT AGENCY
REVISED BUSINESS PLAN: 2014/15
JAN 2015
Sign Off:
Acting CEO TEDA: Mr S D Mogaladi
Signature of Acting CEO: ………………………………
Chairperson of TEDA BOARD: Mr L Vutula
Signature of Chairperson: ……………………………...
SED/SEH/HOD Name: ……………………..………………………………
Signature of SED/SEH/HOD: ………..……………………………………
DCM Name: ………………………………………………………………….
Signature of DCM: ………………………………………………………….
Receipt & Review
Signature of CSPM Representative: ………………………………
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Municipal entity of the City of Tshwane 2006/019396/07
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TABLE OF CONTENTS
1. INTRODUCTION ........................................................................................................... 5
1.1 Vision and Mission .................................................................................................. 7
1.2 Legislative and other mandates ....................................................................... 7
1.3 TEDA SWOT Analysis ............................................................................................... 9
2. STRATEGIC FOCUS AREA ........................................................................................ 10
3. CORPORATE GOVERNANCE FRAMEWORK ...................................................... 11
4. MANAGEMENT AND ORGANISATIONAL STRUCTURE ...................................... 13
5. FUNCTIONAL STRATEGIES ....................................................................................... 14
5.1 Project Portfolio Management (PPM) ............................................................ 14
5.2 Trade and Investment Strategic Focus .......................................................... 18
5.3 Marketing and Communication Strategic Focus ....................................... 19
5.4 Human Capital ..................................................................................................... 22
6. SDBIP SCORECARD .................................................................................................. 25
7. TEDA SCORECARD ................................................................................................... 26
8. FINANCE STRATEGY.................................................................................................. 32
9. FINANCIAL IMPLICATION ........................................................................................ 33
10. TEDA RISK REGISTER 2014/15 .............................................................................. 34
11. CONCLUSION ........................................................................................................ 40
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DEFINITION OF TERMS
(a) Business Plan: A business plan is a document that gives the summary of the work of the
Municipal Entity. It highlights the functions of the Municipal Entity, its organisational
arrangements, planned activities as well as the cost associated with delivering on its
mandate.
(b) Deliverables: These are Municipal Entity set targets for the financial year and they relate
to the overall strategic objectives of the city. The deliverables as required in this
document need to be in line with the 5 year targets as reflected in the 2011/16 IDP and
should demonstrate a progressive movement towards achieving the city’s goals.
(c) Municipal Entity Scorecard: The Municipal Entity scorecard reflects the planned activities
of the Municipal Entity in line with its functions. Targets set in the Municipal Entity
scorecard are broken down into quarterly targets. This scorecard will be used to monitor
Municipal Entity performance on an annual basis.
(d) Functional Area: the functional areas of the Municipal Entity are as per the approved
organisational structure of the city (micro structure). They reflect the various areas of
work within the Municipal Entity to which targeted implementation and budgets are
allocated.
(e) Game Changers: The game changers were introduced during FY 2012/13. These are key
strategic programmes and projects that are aimed at fast tracking the city’s social and
economic transformation.
(f) Indicators: these are statements of measurement and are used to indicate whether
progress is being made in achieving the goals. Indicators provide a common framework
for gathering data for measurements and reporting; translate complex concepts into
simple operational measurable variables; enables the review of goals and objectives;
assist in policy review processes and help provide feedback to the municipality and
staff. The approved IDP 2011/16 and its first review contain these indicators. Municipal
Entities are encouraged to improve these in line with their set targets.
(g) Key Focus Area: these are a subset of the Municipal Entity functional area. The key focus
areas represent the work of the Municipal Entity almost to the activities that the
Municipal Entity is expected to perform.
(h) Key Performance Area: Key performance areas aggregate the strategic objectives into
areas of focus. Strategic Objectives: The Performance Management Guidelines
(paragraph 5.1.3) state that “All components of the IDP need to be translated into a set
of clear and tangible objectives. The statement of objectives requires a tangible,
measurable and unambiguous commitment to be made. Setting objectives, a
municipality needs to carefully consider the results desired; review the precise wording
and intention of the objective; avoid overly broad results statements; be clear about the
scope and nature of change desired; and ensure that objectives are outcome and
impact focused.” In the 2011/16 IDP, the city approved 7 Strategic Objectives which are
to guide the city’s development interventions for the mayoral term. The strategic
objectives highlight some of the key areas of work for the city and set a tone for the
city’s developmental interventions for the term. In this business plan, it is proposed that
these objectives be revised to reflect all the strategic work of the city in line with the
city’s desired long term objectives and to reflect entirely the work that happens in the
city.
(i) Tshwane 2055 GDS: The City of Tshwane has developed its long term strategic
framework. Tshwane 2055 is a long term policy statement of the city highlighting the
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Municipal entity of the City of Tshwane 2006/019396/07
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strategic intent of the city in line with established principles and the desired outputs as
contained in the Tshwane 2055 discussion document.
(j) Sectors: A cluster or grouping of businesses that share the same or related product or
service. This is also referred to industries within an economy.
(k) Priority Markets: Lists of countries that are targeted by TEDA to focus on for economic
development for the City of Tshwane.
(l) Business Units: Units in TEDA’s organisational structure.
(m) Functional Units: Support structures in TEDA’s organisational structure.
(n) Outputs – the final products or goods and services produced for delivery
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1. INTRODUCTION
The Tshwane Economic Development Agency SOC Ltd (TEDA) was established as a
municipal entity of the City of Tshwane Metropolitan Municipality (CoT) on 2 November 2006.
TEDA operates as a State Owned Company registered in terms of the Companies Act.
TEDA was established with the primary objective to cultivate an environment within which
the City of Tshwane (CoT) can grow its human capital and the economy through the
facilitation, implementation and management of developments with a specific focus on
economic development and investment attraction into the greater Tshwane.
The mandate of TEDA is derived from Mayoral Committee discussions which culminated in
November 2012 with an approved mandate. This mandate stated that TEDA will undertake
activities and strategic interventions in the areas of:
A) Trade and Investment Promotion, Facilitation and Aftercare;
B) Trade and Investment Programme Implementation:
As defined by the SLA and Annual Business Plans;
Implementing the CoT’s investment pipeline.
C) Promotion of Export-Ready Companies;
D) Trade, Investment and Tourism Marketing Services;
E) Development Facilitation:
Package and promote investment projects as determined by relevant City
Departments;
Nodal Development, e.g. the Implementation of Inner City Revitalisation
Programmes.
F) The Maintenance of an Infrastructure Investment Vehicle:
Will assume the form of a Special Purpose Vehicle to Facilitate Project
Financing;
Will contain a Portfolio to Manage Strategic Land Parcels and Properties of
the City.
G) Strategic Land and Buildings Portfolio Management:
Identified land parcels and properties in line with Capital Investment
Framework (CIF) facilitated by City departments, i.e. City Planning in
conjunction with Economic Development.
H) Social Infrastructure Investment Facilitation;
I) Programme Management in relation to Investment Projects responding to EPWP;
J) Sectorial and Skills Development Programmes linked to Trade and Investment
Projects;
K) International Investment Outbound and Inbound Missions aligned to the Market
Analysis driven by TEDA Trade and Investment Business Unit;
L) Strategic Trade and Investment Events and Activities:
Destination Management;
Local exhibitions & International Exhibitions;
Trade and Investment Conferences;
Export readiness programme.
M) One-Stop Investment and Export Centre:
New Investment enquiries under Qualifying Criteria;
International Market Penetration;
Qualifying Investments linked to the Approved City Investment Policy and
Strategy;
Assistance to Export Ready Firms;
Assistance with respect to the Implementation of the Approved Investment
Pipeline of the City.
N) Tourism Marketing Services:
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Tourism Productive Development, Facilitation and Aftercare;
Tourism Programme Management;
Business of Tourism e.g. Investments linked to Tourism.
O) Stakeholder Liaison/Strategic Partnerships:
Inter-Governmental;
Private Sector;
International Trade Partnerships.
P) Implementation of Programmes identified in Sister-City Agreements;
Q) “Game Changer” Programme Implementation as assigned by City and that includes:
For example: Land Parcels, Power Stations, the Convention Centre, etc.
The mandate has been translated and clustered into the following key activities and business
units of TEDA:
Business Unit Key Activities Trade and Investment
services
To promote the exports of goods and services manufactured
and / or produced within the City of Tshwane as well as to
support the development of existing and potential exporters
based within the City.
Increasing investment into the City of Tshwane through the
attraction, facilitation. Retention and expansion of local and
foreign investment
Project Portfolio
Management services,
Development facilitation
Facilitating and implementing all identified projects on
behalf of TEDA
Marketing and
Communication services
Established as an income stream through events as well as a
marketing and communication arm for TEDA and the City of
Tshwane. TEDA’s key messaging will be channelled through
this business unit.
Immovable Assets
Management service
Established as an income stream for TEDA. The Asset
Management business unit will manage and develop
property assets on behalf of the City of Tshwane with the aim
to derive maximum value for the City’s assets.
Business Development and
Strategic Partnerships
To form and maintain strategic partnerships.
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1.1 Vision and Mission
The vision of the Tshwane Economic Development Agency SOC Limited is:
‘TEDA strives to be a leading African economic development agency’
The mission of the Tshwane Economic Development Agency SOC Limited is:
‘To provide innovative investor solutions so as to attract and develop strategic industries and
businesses into the Capital City in order to strengthen and position South Africa in the
continent’
1.2 Legislative and other mandates
TEDA is a Municipal Entity in terms of the Local Government: Municipal Systems Act 32 of 2000
and consequently also has to function within the ambit of the Local Government: Municipal
Finance Management Act 56 of 2000 and the Companies Act 71 of 2008. The regulatory
planning and reporting cycles for TEDA are determined by these Acts and its related
regulations and framework. TEDA also complies with the corporate governance principles
contained in the King Code on Corporate Governance 2009 (“King III”).
In executing its mandate a range of legislative and regulatory provisions and Municipal By-
Laws requires adherence and consideration. In terms of legislative provisions the following is a
non-exhaustive list:
• Export Credit and Foreign Investments Insurance Act, 1957 (Act No 78 of 1957);
• Property Law Act (As Amended);
• Protection of Businesses Act, 1978 (Act No. 99 of 1978);
• Trade Practices Act, 1976 (Act No. 76 of 1976) (To be repealed in terms of Section 20
of Act 43 of 1990);
• Small Business Act, 2004 (Act No 29 of 2004, as amended).
1.2.1 Further Enabling Legislation
Execution and delivery of the TEDA goals and objectives necessitate that TEDA engage with
and demonstrate compliance with various legislative provisions. Two key service delivery-
related legislations that directly influence TEDA’s ability to deliver on its mandate are the
following:
TEDA is required to register with the South African Revenue Services (SARS) in terms of
the appropriate provisions and rules.
The Value Added Tax Act No. 89 of 1991 provides for the payment of VAT.
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1.2.2 Other Observed Legislation
Economic Development Agencies remain subject to all South African laws and, in operating
as a state-owned company TEDA is subject to observance of a wide range of legislation that
have a particular bearing on the operations of the company and the delivery of its services
and products.
Key areas of legislation that influence the execution of TEDA’s mandate and strategies are
recorded below:
Core Function Legislation Description / Relevance to TEDA
Construction
SABS 1200: new revised South African building regulations : energy management
: fire regulations : SANS 0420 energy efficiency : SANS 829 : 2009 : perfromance
standards in buildings : SANS 1200 : standard specification for civil engineering
construction
Maintenance of standards in infrastructure
development
SMME and BBBEE
development
Broad Based Black Economic Strategy and other Policies.
Broad Based Black Economic Empowerment Act 53 of 2003SMMME and BEE development
Integrated
Environmental
Management
Integrated Pollution and Waste Management Policy (IP&WW, 2000).
Environment Conservation Act 73 of 1989.
National Environmental Management Act 107 of 1998.
Occupational Health and Safety Act 85 of 1993 (OHSA).
Implementation and regulation of legislation
related to environmental protection and
management.
Human Resources
Management
Employment Equity Act 55 of 1998.
Skil ls Development Act 97 of 1998.
Basic Condictions of Employment Act 75 of 1997 (BCEA).
Unemployment Insurance Fund Act 63 0f 2001 (UIF).
Labour Relations Act 66 of 1995 (LRA).
Ensure that regulatory requirements related to
Human Resources management are adhered to
and managed effectively and efficiently.
Financial and
Corporate
Administration
* Public Finance Management Act (PFMA), 1999
* Municipal Finance Management Act (MFMA), Act 56 0f 2003
* Municipal Systems Act (MSA), Act 32 of 2000
* Companies Act, Act 71 of 2008
Ensure requirements related to financial
management and administration are adhered to
with efficiency, effectiveness and economy.
Trade & Investment
• Export Credit and Foreign Investments Insurance Act, 1957 (Act No 78 of
1957)[Amended 2002]
• Property Law Acts
• Protection of Businesses Act, 1978 (Act No. 99 of 1978)
• Trade Practises Act, 1976 (Act No. 76 of 1976)
• The Consumer Protection Act of 2008
• The National Small Business Act, 2004 (Act No 29 of 2004)
Ensure requirements related to trade and
investment management and administration are
adhered to with efficiency, effectiveness and
economy.
All Programmes
Other Legislation
* Managing HIV/AIDS in the workplace.
* National Gender Policy Framework for Women Empowerement and Gender Equality, 2000: Protects Women's Rights.
* Promotion of Equality and Elimination of Unfair Discrimination Act, 2000: Guards against all forms of discrimination.
* Employment Equity Act: No. 55 of 1998. Code of good practice on the employment of people with disability.
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1.3 TEDA SWOT Analysis
The following strengths, weaknesses, opportunities and threats were identified during the
period when TEDA went through a performance improvement phase in the latter part of the
2013/14 financial year. This was triggered by the high targets that were set at the beginning
of the financial year against limited resources.
Strengths
• Established entity with board and management
• Clearly defined mandate
• Support & committed shareholder
• Benchmarking opportunities
• Newly established entity
Weaknesses
• Young organisational and administrative systems and processes
• TEDA unknown to critical stakeholders, the investment community and the public
• Limited financial resources to execute mandate
• Lack of established organizational governance structure & culture
• Over reliance on CoT funding
• Broad mandate
• Leadership instability
• Lack of strong balance sheet / capitalization
• Limited opportunities for income generation – income streams
Opportunities
• Working with CoT departments
• Tshwane’s strategic objectives in the Vision 2055
• Last mover advantage
Threats
• Duplication of mandate areas between CoT and TEDA
• Lack of alignment between CoT departments and TEDA
• Lengthy delays in decisions and approval making
• Last mover disadvantage
• Unfavourable economic climate
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2. STRATEGIC FOCUS AREA
The following 6 areas provide the framework for the Outcomes City of Tshwane will pursue
through the regular IDP and budget processes. The role, focus and strategic annual planning
exercises of TEDA in this context are closely guided by the Tshwane Vision 2055 outcome
areas. In this regard TEDA will continue to unpack the key strategic programmes and
enablers required to systematically and rigorously implement interventions that will impact on
the following Vision 2055 identified outcomes:
Outcome 1: A resilient and resource efficient City.
Outcome 2: A growing economy that is inclusive, diversified and competitive.
Outcome 3: A City with quality infrastructure development that supports liveable
communities.
Outcome 4: An equitable City that supports happiness, social cohesion, safety and healthy
citizens.
Outcome 5: An African Capital City that promotes excellence and innovative governance
solutions.
Outcome 6: South Africa’s Capital with an activist citizenry that is engaging, aware of their
rights and presents themselves as partners in tackling societal challenges.
In pursuance of our legislative mandate, TEDA developed the following 7 key Strategic
Objectives. These key Strategic Objectives are derived from the mandate of TEDA, aligned
with Tshwane Vision 2055, the CoT IDP 2011-16 (including its 2013/14 revision) and provide the
framework within which TEDA will focus its strategic efforts in the planning period. TEDA has
identified projects that support Outcome 2.
Strategic Objective 1: To develop, facilitate and promote viable foreign and local
investments into City of Tshwane
Strategic Objective 2: To establish and maintain an economic Infrastructure
Investment vehicle
Strategic Objective 3: To identify, design, develop and manage projects with
strategic economic and / or social benefits for the greater
Tshwane community.
Strategic Objective 4: To develop and maintain a strategic immovable and property
asset portfolio for maximum return on investment.
Strategic Objective 5: To facilitate the implementation of agreements signed
between CoT and key stakeholders
Strategic Objective 6: To promote Tshwane as a viable investment destination
through the implementation of integrated marketing and
communication programmes
Strategic Objective 7: To establish and build TEDA as a strong and effective
organization in the context of good governance best practices
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3. CORPORATE GOVERNANCE FRAMEWORK
The TEDA Board has adopted a Corporate Governance Policy Framework which sets out
TEDA’s governance framework and legislative obligations. The Policy Framework draws from
the CoT’s Corporate Governance protocols and it includes TEDA’s Code of Conduct for
Directors and Employees, Conflict of Interest Policy, Anti-Fraud Policy, Roles and
Responsibilities of Directors, the Board and Committee Charters, amongst other critical
documents.
The aim of the TEDA Corporate Governance Policy Framework is to enable the Board to
continuously play its oversight role on the day to day management of the entity and to
ensure that the entity’s affairs are conducted within an ethical environment. It is also aligned
to the King III Report and promotes transparency, accountability, integrity and equality.
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3.1. Corporate Governance Structure
SHAREHOLDER
CoT
BOARD OF DIRECTORS COMPANY SECRETARY
SOCIAL & ETHICS
COMMITTEE
FINANCE, RISK &
GOVERNANCE
COMMITTEE
PROJECTS
COMMITTEE
EXECUTIVE COMMITTEE
CHIEF EXECUTIVE OFFICER
REMUNERATION
COMMITTEE
TRADE &
INVESTMENT
COMMITTEE
COMMITTEE ON
DIRECTORS
AFFAIRS
AUDIT, RISK &
PERFORMANCE
COMMITTEE OF COT &
ENTITIES
GROUP INTERNAL AUDIT
AND RISK UNIT
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4. MANAGEMENT AND ORGANISATIONAL STRUCTURE
The TEDA CEO and Executive Management direct the day-to-day operations of the entity
and ensure that the mandate of TEDA is implemented in line with the strategy and direction
from the Shareholder and the Board in the context of effective internal policies and
procedures, performance management and regular reporting in compliance with the
relevant frameworks and legislation.
As can be seen in the diagram below, each Business Unit is headed by an Executive
Manager who takes responsibility, and is accountable, for the full set of functions assigned to
the unit.
Figure 1: TEDA High-level organisational structure
Board
Company Secretary
Head: Internal Audit
Head: Risk Compliance
CEO
Executive Corporate Services
Chief Financial Officer
Executive Asset Management
Executive Marketing &
Communications
Executive Projects Portfolio
Management
Executive Trade and Investment
Executive
Personal Assistant
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5. FUNCTIONAL STRATEGIES
5.1 Project Portfolio Management
The goals of the Project Portfolio Management (PPM) unit are as follows:
Sustainable development of strategic geographic areas to vibrant economic zones
through upgrade of public spaces,
Implementation of infrastructural projects as a vehicle for economic growth,
Facilitation of private sector capital investment projects,
Facilitation of Public sector capital investment projects,
Facilitation of Public/Private partnership as a project implementation approach,
Unlock economic value in declining investment movements in strategic areas
through development and upgrade of infrastructure projects,
Facilitate productive partnerships in developments which support TEDA’s mandate,
Employ sound project planning and implementation practices,
Transforming geographically strategic areas to economic sustainable
5.1.2 PPM Objectives
The objectives of PPM in the short term (<2years) are:
Development of PPM systems to handle the project lifecycle.
Development of project portfolio management maturity level.
Resourcing of the PPM unit in accordance with key positions (Executive and Senior
Management) of the preferred structure.
Development of at least three (3) project business cases ready for investment
promotion and implementation.
Development of at least two (2) industrialization sector projects business cases.
Definition of revenue generation within projects looking at sweat equity model.
The objectives of PPM in the medium term (<5years) are:
Implementation of at least one (1) industrial project.
Reviewing and improving the PPM systems and readiness for ISO accreditation.
Further development of project portfolio management maturity level.
Resourcing of the PPM unit in accordance with the preferred structure at least by 90%
Development of approximately five (5) business cases for at least three (3) different
priority sectors.
Development of approximately two (2) business cases for nodal intervention projects.
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The objectives of PPM in the long term are:
Obtaining ISO 9001:2008 accreditation.
Implementing game changer projects within the manufacturing sector.
Undertaking a reputational study/survey of TEDA in terms of project facilitation and
implementation.
Reviewing and improving PPM systems as part of maintaining ISO accreditation.
Development of growth strategy statement looking at integration (Vertical and/or
Horizontal) opportunity for projects in implementation stage, with the goal to update
TEDA Project Pipeline.
5.1.3 TEDA’s Approved Projects
TEDA has identified projects which fall within the mandate as stated in the Service Delivery
Agreement (SDA). These are projects which will realize socio-economic benefits, economic
growth and job creation. The SDA also states that TEDA must pursue to become financially
sustainable thereby reducing the financing contribution of City of Tshwane over the period of
the Agreement.
As a result, TEDA has embarked on projects termed Type 1, which seek to generate revenue
for TEDA in the medium to long term, also in pursuit of sector development and economic
growth within the City. These include the 5th international Trade and Investment Conference
in May 2015 (TITIIC).
The second category of projects is Type 2 projects which are primarily for socio-economic
benefits coupled with job creation (Social Infrastructure Investment Facilitation)
Type 1 Projects
Both these projects are at concept stage (stage 1):
Industrial Park for Advanced Bio manufacturing – This project is owned by the IDC.
Southern African Agro-processing Hub
Type 2 Projects
These projects are at inception state (stage 2)
Youth build programme
Development of Cullinan area
The proposed projects are stated below:
5.1.3.1 Development of Cullinan area
Gauteng’s Quick getaway destination with a focus on the necessary infrastructure and
Tourist attraction sites. Cullinan is strategically important to link the rest of the area with
Gauteng. Other pipeline projects such as the Dinokeng Festival will promote this area as a
true getaway destination.
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5.1.3.2 Industrial park for advanced Bio-manufacturing
South Africa has, through various national policies and interventions highlighted the
importance of the manufacturing sector in driving socio-economic growth and technology
competiveness. Two keys national strategic documents relevant in the context of advanced
bio manufacturing are the National Bio-economy strategy and the IPAP II. The former,
released by the Department of Science and Technology (DST), aims at ensuring that
innovative technology resources are better developed, focused and applied to drive
economic growth. The latter, by the Department of Trade and Industry (the DTI), recognizes
that South Africa's future competitiveness will depend on the capacity of the manufacturing
sector to master advanced technology domains, to innovate and to meet the precise needs
of customers. By drawing on its capabilities in manufacturing in the agriculture sector,
industrials and chemicals, South Africa should be able to manufacture active
pharmaceutical ingredients, vaccines, biopharmaceuticals, diagnostics and medical
devices to address the disease burden, while ensuring a secure supply of essential
therapeutics and prophylactics. The development of new and improved therapeutics (drugs,
vaccines, phytomedicines and biopharmaceuticals), diagnostics and medical devices is a
key area of intervention. The 2014 Bio economy strategy highlights these key focus areas as
being critical in establishing an economically impactful bio-manufacturing industry that will
have a global reach:
1. Development of improved therapeutics and drug delivery systems to address priority
diseases
2. Development of biologics (biosimilars) to address the health challenges that face the
country and improve South Africa’s export base
3. Development of improved diagnostics that is robust, rapid at low cost.
4. Development of improved medical devices:
5. Strengthening Clinical research and development capabilities
6. Establish pharmaceuticals manufacturing: development of local manufacturing
capabilities for generic, new drugs, or biosimilars.
A key global trend in pharmaceuticals manufacturing is the migration from total batch
manufacturing to automated continuous manufacturing with quality designed into the
process and equipment that requires less space to function. Continuous flow reactors plants
cost a quarter of the price of batch manufacturing plant. South Africa has a small
manufacturing industry, with Fine Chemicals being the only API manufacturer and the rest
being “fill and finish” using API’s from India and China. As much as there is interest in setting
up continuous flow reactor plants, SA does not have the infrastructure to support this.
However many countries do not have the infrastructure as well, thus SA needs to capitalise
on the window of opportunity that still lies in being a first mover in this space.
The project will be owned and driven by the Innovation Hub. TEDA’s role will be to conduct
targeted investment promotion to potential investors within the said sector. All the
engagements with the role players will be documented. The project is still at conceptual
stage.
5.1.3.3 Tshwane Agro-Processing Hub
This project aims at establishing a facility for the processing of primary produce from SADC
countries for exporting to the rest of the world. City owned land will be identified for use as a
lever for attracting investors into the Hub and conduct a feasibility study in the 2014/15
financial year. All processors of agricultural products and big end users will be mobilised for
endorsing the concept and commence with the setting up of the Hub in 2015/16 financial
year.
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5.1.3.4 Region 1 Youth Greening Project
This is collaboration programme with National Youth Development Agency and is about job
creation opportunities for young people.
The implementation will be guided the approved Project Framework which will offer in-depth
analysis on each project lifting up Human and Financial resources required, feasibility and
other issues to be considered for successful implementation. The delivery model is envisaged
to be mainly through partnerships with various stakeholders including communities, private
funding as well as TEDA funding especially for immediate and short term projects, thus
resonating with TEDAs Business Model as depicted in the diagram below.
5.1.3.5 Tshwane International Trade & Infrastructure Investment Conference
(TITIIC)
TITIIC is a biennial international conference hosted and managed by the City of Tshwane.
The inaugural TITIIC was held in 2008 and the last one in 2012. The conference has grown in
stature over the years. Participants at the conference include captains of industry, SMMEs,
Co-operatives, informal economy players, development finance institutions, donor
community, diplomats, academics, researchers, policy makers and policy analysts. A
sizeable number of these participants are drawn from the international community.
In 2012 the conference was attended by 839 delegates and there were 110 exhibitors from
different sectors showcasing a variety of goods and services, and quite a large percentage
of them were Tshwane based businesses. It is envisaged that the 2015 event will attract even
larger numbers of participants and exhibitors.
TITIIC is one of the City’s key initiatives aimed at addressing key developmental challenges
that it faces. The primary focus of the conference is to facilitate the inflow of domestic and
foreign investments into the identified priority sectors of the City’s economy resulting in
growth, competitiveness and job creation, and highlighting the inherent potential of the City
to export local niche products and services
This project has a high job creation and investment attraction value. It will profile Gauteng
and City of Tshwane as an investment destination.
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5.2 Trade and Investment Strategic Focus
The core responsibility of the Trade and Investment Unit is to promote, facilitate and expand
foreign and local investment in the City of Tshwane including increasing exports to key
regional and international markets. T&I assists local and international companies to establish
and build their businesses in Tshwane. The Unit assists prospective investors by navigating the
challenges of investing and providing the information required to make good investment
decisions. Furthermore, T&I facilitates a coordinated approach that saves investors time and
money. Trade and Investment Unit’s services include the following:
Information on the business and regulatory environment
Information on issues such as economic factors, business costs, the taxation regime,
ease of doing business, investment regulations, skills availability and immigration
Introductions to key stakeholders and role players
Facilitation of outbound and inbound trade and investment missions
Facilitation of joint venture and equity partnerships
Provision of information on financing options and investment incentives
Assistance to investors to obtain work and business permits, access to suitable land,
factory space, etc
Provision of technical capacity building services for existing and potential exporters
Promote goods and services produced or manufactured in the City of Tshwane
Given that TEDA is a relatively new entity, the focus of the Trade and Investment unit for the
2014/2015 is to gather and collate baseline information pertaining to the trade and
investment environment in the City of Tshwane. To this end, research relating to the outlook
for foreign direct investment was conducted. With regards to trade, an analysis of the City`s
export environment was also conducted. In addition to gathering the requisite intelligence,
the unit will also focus on the identification of potential investment opportunities in order to
develop an investment opportunity pipeline.
Based on the outlook of trade and investment environment in the City of Tshwane and more
specifically the outlook for FDI in South Africa, TEDAs strategic trade and investment focus in
the subsequent years is illustrated in the diagram below:
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19
Based on the findings of the trade and investment intelligence gathered and the fact that
TEDA is a relatively new entity, strategic emphasis will be placed on image building as well as
investment retention and expansion during the 2015/2016 period. The period 2016 to 2018 will
see a move from image building to competitive positioning while maintaining the status quo
on investment retention and expansion. In line with projected economic growth and
commensurate with the outlook for FDI for the years 2018 to 2020, TEDA will focus on investor
targeting and the attraction of FDI, both greenfield as well as through Merger and
Acquisition activity.
5.3 Marketing and Communication Strategic Focus
The overall objective of Marketing and Communication is to promote Tshwane as a viable
investment destination through the implementation of an integrated Marketing and
Communication programme.
The Marketing and Communications Business Unit was established as an income stream
through events as well as a marketing and communication arm for TEDA and the City of
Tshwane. TEDA’s key messaging will be channeled through this business unit. In the execution
of its mandate, Marketing and Communication collaborates with City of Tshwane’s
Communication, Marketing and Events department, Department of Economic Development
as well as Tshwane Convention and Visitor’s Bureau(TCVSB) in Meetings, Incentives profiling,
Conventions , Events and Exhibitions that help raise the city’s competitiveness and brand.
5.3.1 Brand Communication Objectives
The following communication objectives have been identified:
5.3.1.1 To enhance the TEDA brand perceptions
This means that TEDA has to build a strong brand by communicating a consistent promise to
all stakeholders in order to create lasting relationships. The desired outcomes for this
objective are:
Awareness building;
Internally focused and externally directed;
Informative and proposition based communication; and
Educate on TEDA offerings and projects
5.3.1.2 To build and maintain positive brand reputation
This is important in order to convert TEDA stakeholders into brand ambassadors and maintain
support. The objective has to be:
Externally focused and internally directed; and
Mostly interactive and conversational and need to use stakeholders and clients to
build brand reputation
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20
5.3.1.3 To advocate Economic development in Tshwane
The aim is to leverage various initiatives and TEDA’s position as a champion and advocate of
economic development dialogue and issues in Tshwane. The desired outcomes are:
Leadership building;
Leveraging partnerships/ sponsorships and use as platforms for industry dialogue;
and
Challenging / advocating policy issues
5.3.2 TEDA Brand Talking Points
The following points have been identified as key in advancing the TEDA brand:
We promote trade and investment opportunities and deliver economic value;
Doing business in the Capital City is smart business;
We contribute to improving the quality of life of all Tshwane’s citizens;
We showcase relevant investments that respond to Tshwane’s socio economic
challenges;
We promote innovative investment solutions ; and
Unleashing the Capital City’s Economic potential for Socio economic impact
Year/focus
area
2015/16 2016/17 2017/18 2018/19 2019/20
Deliverables Creation of
Awareness
Stress
Differentiation
Maintain
Brand loyalty
Harvesting Maintenance/
Diversification
Branding Develop Brand
Architecture
Test acceptability
of TEDA logo
Thought
leadership
programme
(through TEDA
Lounge)
Adaptation of
look and feel
Brand Book
Thought
leader
programme
Re-evaluate
association
with mother
brand – drop
logo & carry
tag line –
Municipal
Entity….
Brand
reinforcement
Stabilize brand
Product Define projects
Educate internal
& external
stakeholders
about TEDA.
Investor business
information
Communicate
projects
through
appropriate
media
platforms
Establish an
investor/
Keep brand
promise using
products and
services
Update
services in the
centre.
Evaluate
brand offering
in line with
demand or
customer
needs
Launch new
service
offering in line
with target
market needs
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21
Year/focus
area
2015/16 2016/17 2017/18 2018/19 2019/20
Deliverables Creation of
Awareness
Stress
Differentiation
Maintain
Brand loyalty
Harvesting Maintenance/
Diversification
centre proposal
and identification
of location.
Established TEDA
business lounge
entrepreneur
business
information
centre
Develop App
for Tshwane
accredited
township
businesses
Promotion Inform and
educate target
market on
product offerings
Create brand
value
proposition. Stress
differences and
claim our position
as drivers of the
city’s economy
Develop
regional
campaigns
showcasing
TEDA’s
response to
regional needs
Township
Economy
Road shows
Launch new
projects
Reinforce
messages
Continue with
campaigns
Launch new
projects in line
with target
market needs
Market
Research
Post analysis
campaigns
Brand research
Test brand
positioning –
Measure
awareness
levels
Post analysis
campaign
Customer
brand insights.
Track product
offering vs.
demand and
ROI.
Post analysis
campaign
Track product
loyalty and
relevance
Review
product
offering and
identify areas
of product
advancement
in line with
target market
needs as per
market
research.
87
22
5.4 Human Capital
The aim of Human Capital is to create capacity and capability to enable TEDA to effectively
execute its strategic goals. Human Capital ensures that the organisation’s people
management practices are aligned to the legislative framework and benchmarked
standards. The HR function has the responsibility to ensure that TEDA responds to its primary
objective which “cultivate and environment within which City of Tshwane can grow its
human capital and the economy”
Through Human Capital strategies, TEDA will contribute towards the following City of
Tshwane’s Strategic Objectives:
Promote shared economic growth and job creation; and
Continued institutional development, transformation and innovation
In order to take talent management strategies enhancement, Human Capital function must
strengthen all the areas of work illustrated below through professional capability, line
management empowerment and effective execution. To realise this, Human Capital at TEDA
will focus on the following functional aspects:
Figure 2: Functional aspects of HR
5.4.1 Human Resources Medium term Strategic Goals
In order for TEDA to become an employer of choice, the unit is driven by the following:
Strategic alignment of the human capital to ensure successful execution of mandate
Effective talent management strategy to attract and retain best calibre
Competency based and benchmarked talent management practices
Inculcating a culture of performance and on-going development
Best people management practices governed by an appropriate policy framework
TALENT ATTRACTION, SOURCING ONBOARDING AND ONGOING SUPPORT
ORGANISATIONAL DEVELOPMENT, INDIVIDUAL DEVELOPMENT AND DEVELOPMENT
EMPLOYEE WELLNESS PROGRAMMES
REMUNERATION AND BENEFITS STRUCTURE, RECOGNITION AND PROGRAMMES
EMPLOYEE / EMPLOYER RELATIONS MANAGEMENT
LEGISLATIVE COMPLIANT MANAGEMENT PRACTICES
HR POLICIES AND PROCEDURES
*STRATEGIC LEADERSHIP AND DIRECTION
*ALLOCATION OF ROLES AND RESPONSIBIILITIES
*FUNCTIONAL EFFECTIVENESS
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23
5.4.2 Current Staff Profile
The table below indicates the employment equity profile within TEDA. Currently policies and
procedures have been implemented to ensure that the organisation complies with the
governing legislation.
The organization has realized a need to conduct a skills audit in order to determine the skills
and knowledge that the organisation currently has and identify the skills and knowledge gap
that the organisation has to bridge. The skills gap will provide an opportunity to inform the
type of training and development required and assist in targeting appropriate skills needed
during recruitment and selection process.
Table 1: Current Staff Profile
In the financial year 2013/14, there was a review of the TEDA Business Plan and 5 year
Strategy to define the business of TEDA and set targets. This process led to the re-alignment of
the organizational structure to reflect the enhancements on the Business Plan. Thus far, 35
posts have been filled and TEDA will continue acquiring and developing specialized skills.
In the current financial year job competencies are being defined through job profiling and
job evaluation exercises.
Table2: Staff Projections
Business Units
2013/14 Approved
posts as per the
structure
No. of filled posts No. of Vacant
positions
Office of the CEO 5 3 2
Company Secretary 3 3 0
Internal Audit 1 0 1
Risk and Compliance 3 0 3
Chie Financial Officer 11 8 3
Corporate Services 13 9 4
Asset Management 6 0 6
Trade and Investment 5 3 2
Projects Portfolio 7 3 4
Marketing and Communications 7 6 1
Total 62 35 26
Level No. Gender Race
M F A I C W
Executive 6 2 4 6 - - -
Senior Management 11 6 5 10 1 - -
Middle Management 7 1 6 7 - - -
Operational 9 5 4 9 - - -
Support 2 - 2 2 - - -
Total 35 14 21 34 1 - -
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24
To create a culture of high performance and individual accountability TEDA will adopt the
following principles:
Scorecard based tool to ensure outputs are measurable and aligned to the
organisation’s goals
The model will be enhanced on a piecemeal basis to incorporate the 360 feedback,
on living organisational values and measurement of leadership competencies
The linking of employee development, career progression, succession planning and
reward systems
A remuneration structure will be managed in alignment with individual performance
90
25
6. SDBIP SCORECARD
TEDA contributes to the City’s Strategic Objective 2: Promote Shared Economic Growth and Job Creation. Below are the targets set for TEDA to
meet in the 2014/15 financial year.
Table 3: Contribution towards the SDBIP
Key Performance
Area
Output
Objective
Indicator Annual
Target
2014/15
Baseline as
of end of
mid-year
2013/14
Target
Quarter 1
Target
Quarter 2
Target
Quarter 3
Target
Quarter 4
Job Intensive
Economic Growth
Facilitate
economic
growth that is
labour
absorptive
Nr of job
opportunities
facilitated by the
TEDA
250
1000 62 62 63 63
Rand value of
investment
facilitated by the
TEDA
R500 Million R1 billion - - - R500 Million
Nr of SMME’s
and
entrepreneurs
supported by
TEDA
300 500 75 75 75 75
91
26
7. TEDA SCORECARD
The TEDA Scorecard is aligned to the strategic objectives of TEDA and its business units.
7.1. Strategic Objective 1:
To develop, facilitate and promote viable foreign and local investments into City of Tshwane
Contributing to:
Vision 2055 - Outcome 2: A growing economy that is inclusive, diversified and competitive; and
CoT Strategic Objective 2: Promote shared economic growth and job creation
Key Performance
Area No. Output Performance Indicator
Annual
Performance
Target Baseline Cumulative Quarterly Targets
2014/15 Q1 Q2 Q3 Q4
Trade and Investment
facilitation, promotion
and after care
1.1 Trade investment
intelligence acquired
Number of trade and
investment reports /
studies produced
1 2 - - 1 -
Number of export market
briefs produced 2 None 1 - 1 -
1.2 New and existing
investments attracted
and / or expanded
Number of investment
leads generated,
followed up and
facilitated
20 5 8 5 4 3
1.3 Export development and
promotion services
provided
Number of capacity
building initiatives held for
SMME export readiness
2 1 1 - 1 -
Number of outward and
inward trade and
investment missions
undertaken, hosted
and/or participated
2 1 1 - 1 -
92
27
7.2 Strategic Objective 2
To establish and maintain an economic Infrastructure Investment Vehicle.
Contributing to:
Vision 2055 - OUTCOME 5: An African Capital City that promotes excellence and innovative governance solution; and
CoT Strategic Objective 5: Improve financial sustainability
Key
Performance
Area
No. Output Performance
Indicator
Annual
Performance
Target Baseline Cumulative Quarterly Targets
2014/15 Q 1 Q2 Q3 Q4
Financial
Sustainability 2.1
TEDA’s Financial
sustainability
model
Development and
implementation of the
funding model with
multiple revenue
streams
Financial
sustainability
model
N/A - - Model
developed
Implementation
of the model
7.3 Strategic Objective 3: To identify, design, develop and manage projects with strategic economic and social benefits for the greater Tshwane community
Contributing to:
Vision 2055 - Outcome 2: A growing economy that is inclusive, diversified and competitive; and
CoT Strategic Objective 2: Promote shared economic growth and job creation
Key
Performance
Area
No. Output Performance Indicator
Annual
performanc
e target Baseline Cumulative Quarterly Targets
2014/15 Q 1 Q 2 Q 3 Q 4
Project portfolio
management
3.1 Development of
Cullinan Area
Needs and demand
assessment (desk top study)
conducted
1 None 1 - - -
Project Charter produced 1 None - 1 - -
Feasibility study 1 none 1
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28
Contributing to:
Vision 2055 - Outcome 2: A growing economy that is inclusive, diversified and competitive; and
CoT Strategic Objective 2: Promote shared economic growth and job creation
Key
Performance
Area
No. Output Performance Indicator
Annual
performanc
e target Baseline Cumulative Quarterly Targets
2014/15 Q 1 Q 2 Q 3 Q 4
3.2
Advance Bio
manufacturing
Project Charter produced 1 None 1 - - -
Facilitate funding application 1 None - 1 - -
Facilitate the Feasibility Study
development 1 None - - - 1
3.3
Tshwane Agro-
processing Hub
Project Charter produced 1 None 1 - - -
Funding Application 1 None - 1 - -
3.4 Region 1 youth
greening project
Partnership Agreements
entered into 1 None 1 - - -
No. of participants trained
according to the agreement None - - 50
3.5 TITIIC Planning and execution of
TITIIC
Launch of
TITIIC
Conference
4th TITIIC
Project plan
and
monitoring
instruments
developed
and ratified
Project plan
implementat
ion and
reporting
Project plan
implementat
ion and
reporting
Launch in
May 2015
94
29
7.4 Strategic Objective 4: To develop and maintain a strategic immovable and property asset portfolio for maximum return on investment
Contributing to:
Vision 2055 - Outcome 2: A growing economy that is inclusive, diversified and competitive; and
CoT Strategic Objective 2: Promote shared economic growth and job creation
Key
Performance
Area
No. Output Performance Indicator
Annual
performance
target Baseline Cumulative Quarterly Targets
2014/15 Q 1 Q 2 Q 3 Q 4
Property
Management 4.1
Manage, develop and
facilitate strategic land and
building portfolio
Number of land parcels
identified for development 1 N/A - - 1 -
No. of buildings identified for
revitalisation 1 N/A - - - 1
7.5 Strategic Objective 5: To facilitate the implementation of agreements signed between CoT and key stakeholders.
Contributing to:
Vision 2055 - Outcome 2: A growing economy that is inclusive, diversified and competitive; and
CoT Strategic Objective 2: Promote shared economic growth and job creation
Key
Performance
Area
No. Output Performance Indicator
Annual
performance
target Baseline Cumulative Quarterly Targets
2014/15 Q 1 Q 2 Q 3 Q 4
Establishment
and maintenance
of strategic
Partnerships
5.1
Facilitation of the
implementation of agreements
entered into by City
No. of initiatives implemented
to support the signed
agreement
1 N/A - - - 1
95
30
7.6 Strategic Objective 6:
To promote Tshwane as a viable investment destination through the implementation of an integrated Marketing and Communication
programme
Contributing to:
Vision 2055 - Outcome 2: A growing economy that is inclusive, diversified and competitive; and
CoT Strategic Objective 2: Promote shared economic growth and job creation
Key performance Area No. Output Performance Indicator
Annual
performance
target Baseline Cumulative Quarterly Targets
2014/15 Q 1 Q 2 Q 3 Q 4
Implementation of
Marketing,
Communication and
Events programmes
6.1 City’s increased
competitiveness
Number of marketing
events hosted to promote
City’s competitiveness
1
SMME Fair
Youth
Entrepreneurship
drive.
- - - 1
6.2
TEDA positioned
and profiled as
brand
Number of internal and
external platforms used to
profile and position TEDA
12 3 3 3 3 3
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31
7.7 Strategic Objective 7:
To establish and build TEDA as a strong and effective organization in the context of good governance best practice
Contributing to:
Vision 2055 - Outcome 2: A growing economy that is inclusive, diversified and competitive; and
CoT Strategic Objective 4: Promote Good governance and active citizenry
Key
Performance
Area
No. Output Performance
Indicator
Annual
performance
target Baseline Cumulative Quarterly Targets
2014/15 Q 1 Q 2 Q 3 Q 4
Building a
strong and
effective
organization
7.1
Corporate
governance
compliance
Unqualified audit
without repeated
findings
100%
100% 100% 100% 100%
7.2
A well-resourced
and performance
managed
workforce
supported by ICT
strategy
Establishment and
implement of good
human resource
practices;
Implementatio
n of selected
HR good
practices
Implementation
of PMDS for all
TEDA
employees
Development
of Talent
management
strategy
Development
of human
capital
model
Assessment of
HRM
processes for
automation
7.3
Risk Management
strategy
implemented
No. of strategic risk
monitoring reports
compiled and
submitted to the
Board
4
1
1 1 1
7.4
Systems and
Processes
improvement
Introduction of
systems and
processes
guidelines towards
improved TEDA
operations
Standard
operating
procedures
developed
- -
Systems and
process
assessment
Development
of standard
operation
procedures
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32
8. FINANCE STRATEGY
The TEDA broad finance strategy is to develop a sound financial management to ensure that
the entity is able to fund its operations, generate income, and be a profitable organisation.
The income or profit generated will be used to attract investments as well projects that will
improve economic growth, shareholders value creation and value protection. This will ensure
sustainability, agility and governance.
Financial strategy of TEDA includes long term financial sustainability model that will ensure
that TEDA is less depended from COT. The model will provide;
• Business needs analysis – internal and external;
• Break even forecast
• Balance sheet forecast
• Profit and loss forecast
• Working capital forecasts
• Accurately determine how long the entity will take to be self-sustainable
• Which processes and systems to be implemented to be ensure self-sustainability
• Map consultative process that involves TEDA management in the identification of
viable revenue streams and sustainable income generating initiatives.
As stated in the SDA, TEDA is to pursue financial sustainability and as a result two projects
stated in the business plan will generate income for TEDA. The type of revenue within the
Type 1 project stated will be defined post feasibility/business case stage. The possibilities of
income will be derived from; leasing, equity, development facilitation, investment facilitation
and project management.
8.1 TEDA’s Envisaged Revenue Streams
Read with the understanding that every project is unique and the project partner strategies
change from time to time which impact on the type of income stream is deployed or
negotiated, the streams are as follows:
Equity deals
o Using the land value of the property as seed for Equity with a development
scheme for equity income.
Leasing
o Receiving rental income on properties which have been transferred to TEDA.
Grant applications
o Soliciting low interest loans for project implementation
Developing a fee-for-service structure
o This entails development facilitation, project management service fee
Soliciting in-kind support
o Obtaining donors without conditionalities attached
Using third-party funding
o Obtaining funding for a portion of a project, e.g. feasibility study funding
Borrowings based on collateral security from assets under TEDA’s care;
o Obtaining land and building assets which TEDA can leverage to borrow.
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33
9. FINANCIAL IMPLICATION
Summary of the budget
Table 4: Budget Summary per economic classification
Description 2012/13 Allocation 2013/14 Allocation 2014/15 Allocation
Remuneration of Board
Members 1 954 000 3 543 572 2 190 522
Employee Costs 3 086 000 19 440 500 28 274 127
Admin and Operating
Expenditure 14 349 007 20 747 261 14 545 351
Marketing, Trade &
Investments - 3 664 510 990 000
Projects 5 610 993 14 160 993 1 500 000
TOTAL 25 000 000 61 556 836 47 500 000
TEDA submitted a budget request of R251 million for the financial year 2014/15 and 10%
increment for the two outer years (2015/16 & 2016/17). The aforementioned request was not
approved and a budget of R47.5million per annum for the MTREF: 2014/15; 2015/16 and
2016/17 was subsequently allocated.
The reprioritization exercise to accommodate unavoidable expenses such as employee
related costs, board fees and other operating costs taking into account inflation
adjustments, planned appointments and core business needs is depicted in the table
above.
Table 5: Staff Expenditure
TOTAL STAFF EXPENDITURE
SALARIES AND WAGES 2012/13 YEAR 2013/14 YEAR 2014/15
YEAR
Projected %
Growth/Decrease
Staff Remuneration 1 602 028 19 440 500 28 274 127 31%
TOTALS 1 602 028 19 440 500 28 274 127 31%
The total amount for salaries and wages growth is 31% due to the increase in filled posts that
will enable the entity to deliver on its mandate. The focus during the 2014/15 will be to
capacitate core functions. The projected salary and wages costs in 2014/15 will therefore
amount to R 28 274 127.
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34
10. TEDA RISK REGISTER 2014/15
N
o
Conte
xt
Strateg
ic
Object
ive
Risk
Name
Risk
Own
er
Risk
Descripti
on
Root Cause Consequen
ce
Inher
ent
Risk
Score
Residual
Risk
(Current
)
Residual
Risk
(Desired
)
Residual
Risk
Gap
Controls Task Details
1 Huma
n
resour
ces
TEDA
SO 3
Incorrect
assessme
nt of
projects
CEO Inadequ
ate
clusterin
g and
sectoring
of
projects.
Lack of knowledge
to operate
model
Inflexibility/inappropr
iateness of
model
Insufficient resources
to apply the
model
Incomplete
projects
Cost
overruns
Loss of
stakeholder
support
leading to
diminished
relevance
of TEDA
67
Major
34
Minor
3
Insignific
ant
31
Minor
Project
Assessment
model
developed
Develop
procedure
manual
Task owner:
Executive
PPM
Due date:
30 June
2015
Conduct
training on
appropriat
e model
Task owner:
Executive
PPM
Due date:
Ongoing
Review the
assessment
model to
introduce
flexibility
and
appropriat
eness
Task owner:
Executive
PPM
Due date:
30
100
35
N
o
Conte
xt
Strateg
ic
Object
ive
Risk
Name
Risk
Own
er
Risk
Descripti
on
Root Cause Consequen
ce
Inher
ent
Risk
Score
Residual
Risk
(Current
)
Residual
Risk
(Desired
)
Residual
Risk
Gap
Controls Task Details
September
2014
2 Huma
n
resour
ces
TEDA
SO 5
Inadequa
te
stakehold
er
engagem
ent
CEO Internal
and
external
stakehol
ders.
Lack of
communication
amongst
key stakeholders
Unclear
communication
channels
with the main
shareholder
Duplication
of projects
and efforts
Missed
opportuniti
es
72
Major
36
Minor
7
Insignific
ant
29
Minor
Communic
ation with
key
strategic
stakeholder
s
Communic
ation
strategy
Develop
and
implement
a
stakeholder
engageme
nt strategy
Task owner:
CEO
Due date:
30
December
2014
3 Servic
e
deliver
y
TEDA
SO 7
Lack of
financial
sustainab
ility plan
CEO Limited
funding
allocate
d for
FY15.
Failure to raise
enough capital for
business
sustainability Lack of
revenue generating
model Inadequate
budget allocations
from CoT Limited
working capital
Inadequate
engagement with
other spheres of
government
Perception by CoT
that TEDA has a lack
of critical skills
Loss of
credibility /
Inability to
attract
investment
Inability to
effect
TEDA's
mandate
Closure of
TEDA Over
reliance on
CoT
funding No
job
opportuniti
es will be
created
Inability to
86
Critic
al
26 Minor 4
Insignific
ant
22 Minor Continuous
monitoring
on the
budget
and
performan
ce
Develop a
financial
sustainabilit
y plan Task
owner:
CFO Due
date: 30
December
2014
101
36
N
o
Conte
xt
Strateg
ic
Object
ive
Risk
Name
Risk
Own
er
Risk
Descripti
on
Root Cause Consequen
ce
Inher
ent
Risk
Score
Residual
Risk
(Current
)
Residual
Risk
(Desired
)
Residual
Risk
Gap
Controls Task Details
grow and
transform
the
economy
Inability to
create/est
ablish
foreign
market
opportuniti
es
Damage to
TEDA's
reputation
Inability to
deliver on
projects
Credibility
of
TEDATEDA
becoming
irrelevant
Reputation
al damage
Wasted
resources
Inability to
obtain
funding
from main
shareholde
r Delayed
ROI
102
37
N
o
Conte
xt
Strateg
ic
Object
ive
Risk
Name
Risk
Own
er
Risk
Descripti
on
Root Cause Consequen
ce
Inher
ent
Risk
Score
Residual
Risk
(Current
)
Residual
Risk
(Desired
)
Residual
Risk
Gap
Controls Task Details
4 Servic
e
deliver
y
TEDA
SO 1
Failure to
attract
investors
CEO Failure to
facilitate
investme
nt –
failure to
become
a one-
stop
investme
nt shop,
–
duplicati
ons of
functions
with CoT,
not
taking
advanta
ge
ofavaila
ble
marketin
g
platforms
, lack of
knowled
ge of
governm
ent
program
mes and
incentive
schemes
Lack of resources
Change in
government policies
lack of operating
model to respond to
mandate
Unfavourable
Global Economic
climate
Incorrect
targeting
of
investments
Investing
on
poor/low
ROI(Return
on
Investment)
Inability to
fulfill
mandate
Loss of
stakeholder
support
leading to
diminished
relevance
of TEDA
86
Critic
al
26 Minor 9
Insignific
ant
17
Insignific
ant
Project
Assessment
model
developed
Investment
assessment
framework
to be
developed
Task owner:
Executive
Trade and
Investment
Due date:
30
December
2014
Develop
investment
promotion
strategy
Task owner:
Executive
Trade and
Investment
Due date:
30
September
2014 To
package
investment
incentives
Task owner:
Executive
Trade and
Investment
Due date:
Ongoing
Employ
additional
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38
N
o
Conte
xt
Strateg
ic
Object
ive
Risk
Name
Risk
Own
er
Risk
Descripti
on
Root Cause Consequen
ce
Inher
ent
Risk
Score
Residual
Risk
(Current
)
Residual
Risk
(Desired
)
Residual
Risk
Gap
Controls Task Details
capacity
Task owner:
Head of
Corporate
Services
Due date:
Ongoing
5 Huma
n
resour
ces
TEDA
SO 7
Inadequa
te
manage
ment of
corporat
e risk
within
TEDA
CEO Lack of own-defined
standard
operating
procedures
Lack of knowledge
of
governance
frameworks and
processes
Lack of
accountability
Qualified
audit
reports
67
Major
20
Insignific
ant
3
Insignific
ant
17
Insignific
ant
Companies
Act
PFMA
Approved
policies
and
procedures
of TEDA
MFMA
Revise and
finalise
organisatio
nal design
process
Task owner:
CEO
Due date:
30
December
2014
Ensure
policies
and
procedures
are in
place for
key
business
processes
Task owner:
CEO
Due date:
Ongoing
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39
N
o
Conte
xt
Strateg
ic
Object
ive
Risk
Name
Risk
Own
er
Risk
Descripti
on
Root Cause Consequen
ce
Inher
ent
Risk
Score
Residual
Risk
(Current
)
Residual
Risk
(Desired
)
Residual
Risk
Gap
Controls Task Details
6 Servic
e
deliver
y
TEDA
SO 1
Failure to
facilitate
and assist
investors
CEO Ability to
become
single
pointof
investor
support.
Inadequate
resources
(Budget,Human
capacity)
Duplications of
functions with CoT
Not taking
advantage of
available marketing
platforms Lack of
knowledge
ofgovernment
programmes and
incentive schemes
Inadequate support
for SMMEs
Lack of job
opportuniti
es Liability
to grow
and
transform
the
economy
Inability to
create/
establish
foreign
market
opportuniti
es
40Min
or
12
Insignific
ant
2
Insignific
ant
10
Insignific
ant
Linking
investors to
strategic
alliances
on a
project by
project
basis High
level
analysis of
investor
requiremen
ts in
Tshwane
Gain an
understand
ing of the
investor
environme
nt through
market
research
Task owner:
Executive
Trade and
Investment
Due date:
Ongoing
Develop
investor
after-care
programm
e Task
owner:
Executive
Trade and
Investment
Due date:
Ongoing
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40
11. CONCLUSION
The original key performance indicators reflected in the 2013/14 business plan have been
reviewed and captured clearly to ensure ease of measurability and performance
monitoring. TEDA’s own projects is a milestone in ensuring that TEDA develops some maturity
level and reduces the reliance on City’s initiated projects as has been the case in the past.
The challenge that TEDA faces currently and in the short term period is limited funding.
The key performance areas have been updated from the previous approved Business Plan
based on the current and future capacity that TEDA intends to employ. There is a need to
further engage with the Department of Economic Development (DED) on the cross – cutting
deliverables in order to establish the contribution to be made by TEDA and how TEDA will lay
claim to the outputs derived from the joint initiatives with DED.
The main challenges is the availability of resources, however, TEDA will come up with
innovative and sustainable ways of delivering on its mandate and maximizing its
performance.
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41
Chief Executive Officer’s quality certification
I, Solly Mogaladi, Acting Chief Executive Officer of Tshwane Economic Development Agency
hereby certify that the budget and supporting documentation have been prepared in
accordance with the Municipal Finance Management Act and the regulations made under
the Act, and that supporting documentation are consistent with the 2014/15 Business plan of
the entity, the Service Delivery Agreement with the parent municipality and the Tshwane
Vision 2055.
_________________________________
Solly Mogaladi
Acting Chief Executive Officer: Tshwane Economic Development Agency
Date: ______________
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