Purpose: To provide sector oversight over SOCs by advancing industrialisation, transformation, intergovernmental relations and international collaboration services; and support the Shareholder Representative to strategically position and enhance the operations of SOCs.
To contribute to the performance of SOCs on an ongoing basis by:
The Chief Directorate Intergovernmental Relations (IGR) was established in line with the intergovernmental Relations Framework Act (2005) to foster relations and co-operation between the Department, different spheres of government and foreign states to advance DPE SOCs, mandate and objective.
At the core of the IGR Unit is:
Transformation, in all its facets, has deep-rooted political, social and economic foundations in the South African context. To address these socio-economic challenges, the DPE has through its Transformation Framework and Guidelines identified areas of intervention in ensuring SOCs’ contributions to create opportunities for participation by marginalised sectors of our society and previously disadvantaged individuals in the sectors our SOCs operate.
The Transformation Framework and Guidelines is thus premised on four key pillars critical to transformation, which are:
(a) Skills Development;
(b) Employment Creation;
(c) Procurement; and
(d) Corporate Social Investment (CSI) Contributions.
The South African BBBEE Code, not only aims to correct racial imbalances, but also strives to promote social investment and the empowerment of communities. It is thus important that as required by both the BBBEE Codes and the Companies Act (2008), SOCs commit 1% of the Net Profit after Tax (NPAT) and other additional financial resources for development of the communities in which their businesses operate through social compacts. In this regard, the programme will:
Based on their procurement capacity, manufacturing capabilities and their role in providing infrastructure and economic services, SOCs are better positioned to support industrialisation of the Economy. They serve as clusters of expertise and have important linkages to various parts of the economy, as anchor institutions in their sectors, channels for international knowledge spillovers, and hubs for human capital development.
As set out in the New Growth Path (NGP) and Industrial Policy Action Plan (IPAP), procurement of locally manufactured products is one of the key levers identified by government to support industrial development in South Africa. Government is currently using (i) designation/local content, (ii) National Industrial Participation Programme (NIPP) and (iii) the Competitive Supplier Development Programme (CSDP) as distinct procurement levers to leverage procurement, develop new industrial and technological capabilities.
In ensuring implementation of these programmes, DPE will monitor the implementation of its Localisation Strategic Framework (LSF) to ensure SOCs’ contribution to the achievement of national imperatives. This is intended for increased local content, investment, technology accumulation and establishment of trading partners so that in the medium to long term they can buy from local service providers than multinational Original Equipment Manufacturers (OEMs). This will support SMMEs development, transformation, localisation, reduce the trade imbalance and create jobs.
In this regard, the programme will:
(a) Ensure achievement of high local content in SOCs’ procurement expenditures
(b) Facilitate the implementation of Supplier Development and Localisation in
SOC Capital Expenditure Programmes
(c) Ensure SOCs invest in Research and Development activities directed at increasing the country’s industrial capabilities.
The office of the Deputy Director-General, which provides strategic leadership and management of programme personnel.
Shareholder management and oversight of Eskom’s financial performance.
Shareholder management and oversight of Alexkor, including review of its strategy to enhance financial sustainability and overseeing implementation of the Richtersveld Deed of Settlement.
Shareholder management and oversight, including forestry management, timber harvesting, timber processing and related activities, both domestically and internationally, as well as oversight of the entity’s restructuring.
Responsible for the following SOCs:
Supports the security of supply by:
The office of the Deputy Director-General provides strategic leadership and management of programme personnel.
Aligns the corporate strategies of Transnet with government’s strategic intent and monitors financial and operational performance.
Aligns SA Express’s corporate strategies with government’s strategic intent and monitors financial and operational performance.
Shareholder management and oversight of Denel’s financial performance and strategy implementation.
Aligns SAA’s corporate strategies with government’s strategic intent and monitors financial and operational performance.
Responsible for the following SOCs:
Provides oversight on Transnet’s implementation of the Market Demand Strategy including the 4.0 Strategy to optimise the economic impact of infrastructure investment on the economy by monitoring the rollout of Transnet’s Capital Expenditure Programme, quarterly and annually; and by assessing any significant deviations from corporate plans and potential cost overruns and possible time delays on major capital projects.
The office of the Deputy Director General, which provides strategic leadership and management of the programme.
To provide specialist economic modelling and sustainability services.
Conduct topical research to inform the development of policies and strategies.