Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698930907455.pdf (South Africa)
OVERVIEW OF THE ECONOMIC RECONSTRUCTION & RECOVERY PLAN JUNE 2022 PRESENTATION OUTLINE The Focus Areas and Pprogress on the Implementation of the Plan 1.

Ensuring energy security 2.

Industrialization/growing the productive economy 3.

Presidential Employment 4.

Infrastructure that meets the goals of NDP 5.

Macro-economic interventions and enablers of growth 6.

Green Economy Interventions 7.

Agriculture and food security 8.

Reviving the Tourism Sector Conclusion 2 1.


ENSURING ENERGY SECURITY 1.1 HIGH LEVEL - ENSURING ENERGY SECURITY PROGRESS SUMMARY Time Frame Deliverable Planned Actual Status Procurement 2021 2600 2583 January 2022 2000 1 996 No Action 1.

2.

3.

4.

5.

6.

7.

8.

9.

Renewable Energy Bid Window 5 (Target 2600MW).

25 Preferred bidders announced with a total generation capacity of 2583MW and financial closure expected by June 2022 and commercial closure by 2025.
(Procurement, financial closure and commercial operation) Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

(Target 2000) Emergency procurement delayed due to legal challenges (Procurement, financial closure and commercial operation) Small Scale Embedded Generation.

Section 34 Determination completed.

Currently 553 SSEGs registered with NERSA with generation capacity of 268MW December 2021 Ongoing 268 Renewable Energy Bid Window 6 (Target 2600MW) Procurement has commenced.
Request for Proposal issued to the market on 7 April 2022 with closing date of 13 August 2022.
April 2022 2600 Ongoing Remainder of 11831MW Section 34 Ministerial Determination Transmission Company from a restructured Eskom and facilitating a trading company (ERA Amendments to create a trading platform have been finalised) Ongoing Dec 2021 11 831 Ongoing Achieved Dec 2021 Enable upstream petroleum sector investments through the finalisation of Upstream Petroleum Bill (the Bill was tabled in Parliament on 1st July 2021) March 2022 Completed Completed Finalise the Biofuels Regulations (Regulations were Gazetted on 1st September 2021) March 2022 Completed Completed Preparation for Nuclear Build Programme.
NERSA’s concurrence on section 34 Ministerial Determination for procumbent of 2500MW from nuclear energy was granted.

Preparations for procurement will commence, considering NERSA suspensive conditions.

10.

Life extension of Koeberg.
Project on schedule for completion in 2024 2030 2024 2500 Approved onerous condition 2024 On schedule 4 1.2 HIGH LEVEL - ENSURING ENERGY SECURITY IPP Programme Achievements and Impact 92 IPPs selected as preferred bidders 6422 MW 6422 MW electricity capacity procured 5250 MW already operational from 81 IPPs 62949 GWh energy generated by Renewable Energy sources R209.7 billion attracted for investment energy infrastructure in all bid windows All data as at 30 June 2021, after 7 bid rounds (Bid Windows 1, 2, 3, 3.5, and 4) 5 1.3 ESKOM FLEET PLANT PERFORMANCE (EAF) EAF Projection and Actuals (%) Insights 90 85 80 75 70 65 60 75.5 75.5 75.5 75.5 75.5 75.5 75.5 75.5 75.5 69.0 69.0 68.5 68.0 67.5 67.0 66.5 66.0 65.5 Actuals IRP 2019 Eskom Journey 2035 • The actual Eskom fleet plant performance has deteriorated to unprecedented levels compared to Eskom’s input into the IRP 2019 with an EAF averaging 75.5% • Calendar year 2021 actual of 61.8% • Eskom Journey 2035 assumes improvement in EAF, as older and unreliable generation units decommission, resulting in EAF of 69% from 2030, compared to 75.5% assumed for the IRP 2019.
• Although EAF improvement may be interpreted as a the lower baseload generation good indicator, capacity base poses a system stability threat.

1.4 ESKOM FLEET PLANT PERFORMANCE (EAF) EAF Projection and Actuals (%) Insights 90 85 80 75 70 65 60 • Historical trend analysis based on the Eskom Data Portal (2021) shows steadily increasing unplanned outages from 2017¹ • Eskom plant performance has been deteriorating at ~- 2,1% per year since 2019 (-6% over the past three years).
• Although Eskom Journey 2035 assumes improvement in 75.5 75.5 75.5 75.5 75.5 75.5 75.5 75.5 75.5 EAF (at 69%), 67.5 67.0 66.5 66.0 65.5 68.5 68.0 69.0 69.0 • Eskom System Operator expects the downward trend in plant performance to continue in the medium term.

It states that a more likely low EAF, with an average of 63% for the period up to 2026 is more realistic.

• YTD the EAF is getting worse.

Which will result in a bigger gap between supply-demand.
Actuals IRP 2019 Eskom Journey 2035 ¹Source: Eskom Medium Term System Adequacy Outlook Report (Page 4, October 2021) 1.5 SEPARATION AND UNBUNDLING OF ESKOM No Intervention Intended outcome Funding/ Budget Committed High Level Outputs /Targets (Specify Timelines ) Implementation Progress with quantitative & qualitative analysis including focus on women, youth and persons with disabilities information where applicable Challenges & Mitigation Measures Status 1.5 Separation and Address the None Implementation of Eskom • In December 2021, National Transmission Company (NTC) unbundling of structural Roadmap by 2024 was established, registered and incorporated as a wholly Eskom challenges and allow for focus into each business operation owned subsidiary of Eskom.
• A licence application for NTC was submitted to the National Energy Regulator of South Africa (NERSA) on 24 December 2021.

• The process to appoint a Non-Executive Directors is in progress.

• Eskom is currently busy with the due diligence for both Generation and Distribution companies.

• Eskom is preparing Public Finance Management Act (PFMA) applications for establishment of Distribution and Generation Companies.
• Legal separation of Transmission, Generation and Distribution will be completed after the finalisation of Electricity Regulation Act which is currently undergoing the public participation process.

8 2.
INDUSTRIALISATION/GROWING THE PRODUCTIVE ECONOMY 2.1 MASTER PLANS COMPLETED Automotive Retail CTFL Poultry Sugar Completed, approved and in full implementation Steel Furniture Forestry Tourism Recovery Plan Digital Economy Aerospace & Defence Completed, awaiting approval and EOC Creatives Approved by the ESEIED cluster, en- route to cabinet 2.2 MASTER PLANS BEING DEVELOPED Plastic Chemicals Renewable Energy Creatives Cannabis Reasonable progress Agriculture & Agro- processing Oceans Mining & Beneficiation Gas Limited progress Health No progress, has been replaced by Medical devices 3.
PRESIDENTIAL EMPLOYMENT 12 3.1 PRESIDENTIAL EMPLOYMENT Highlights • School assistants programme delivering at scale, with quality outcomes for participants and schools.

• Social Employment Fund, Youth Service finalising contracting for 100,000 opportunities.

• All metros started implementation from February with signing of DORA, 30,000 opportunities.

• Strong outcomes from MISA waste programmes in Umsunduzi, Umthathaalso in progress, 7,607 in post.
• All 26 universities signed up for graduate programme, now recruiting, 3,000.

Challenges & Mitigation Measures For those programmes not meeting their targets or behind in meeting them, the main challenges are: • Transfer of Funds from DEL to Jobs Fund for Pathway Management Network not finalized before end of financial year.

• Procurement challenges (DFFE, DALRRD, DHET).

DALRRD now has OCPO ruling that extends the Vodacom platform for vouchers but too late to issue most vouchers.
• DHET/NSF re-issuing RFP.

• Government to person payment systems (DSD) • DSD unable to vet and pay remaining applicants unless rollovers approved.

• Slow processes of concluding MOAs (DHET, DEL) 13 534,208 77% Achieved: 378,269 Target: 199,173 Achieved: 115,781 Target: 199,173 Achieved: 40,399 Target: 60,742 87% 24,187 2,177 1,567 2,000 58% 27 487 Overall 84% youth 66% women 4.
INFRASTRUCTURE THAT MEETS THE GOALS OF NDP 15 4.1 INFRASTRUCTURE THAT MEETS THE GOALS OF NDP Intervention Intended outcome Increase infrastructure investment Growth in fixed capital formation Implementation Progress with quantitative & qualitative analysis including focus on women, youth and persons with disabilities information where applicable • The Public Sector its R280.7 billion spent 65% of infrastructure budget in 2020/21, a decrease from the 71% spent in 2019/20.
• In Q4 of 2021 the total fixed capital formation increased by 1.9% (q/q sa), with the private sector increasing by 4.2%, the public corporation by 1.4%, but general government decreasing by 6.9%.

• As a proportion of GDP, investment increased to 14.4%.
Stimulate construction sector growth Increased sector to contribution GDP and sector value-add growth in growth and sector confidence • In Q4 of 2021 the FNB/BER Composite Building Confidence Index declined slightly to 34 index points from 35 index points in Q3 of 2021, while the Civil Construction Index declined to 15 index points from 17 index points.

• Construction sector GVA declined q/q in 4Q 2021 by 2.2%.

Overall, the sector declined during 2021 by 1.9%, the fifth consecutive year to do so.
Improve the quality and rate of infrastructure investment Quality and quantum of investment to support growth and job creation improved • The Infrastructure Fund has packaged a number of catalytic programmes and projects with a capital value of R21 billion.
Of this, R2.6 billion was approved through the fifth window of the Budget Facility for Infrastructure for the Social Housing Programme; Phase 2, cluster 2 of the Student Housing Infrastructure Programme; and Phase 1 of the Olifantspoort and Ebenezer Water Supply Scheme Programme, with the remainder of the funding to be sourced from project owners’ equity and the debt from capital markets.
Challenges & Mitigation Measures Lack of skills required for project design, preparation and development; a lack of long-term infrastructure planning; Delays in the procurement process have resulted in a high projects; postponement inadequate funding, inability of public sector to generate funding required for projects; delayed payment from government.
cancellation approved and of project management, governance, monitoring and Poor evaluation, Low productivity, high labour labour disputes and strikes; threat of construction mafia and other disruptive behaviour on construction sites; the impact of Covid- 19 which halted or delayed construction on several projects and required a reallocation of some infrastructure budgets has affected both the ability of spend on allocated infrastructure projects and the construction sector more broadly.
turnover, Budget reforms and improvements in infrastructure value chain are being undertaken to improve the efficiency of spending 5.

MACRO-ECONOMIC INTERVENTIONS AND ENABLERS OF GROWTH 17 5.1 MACRO-ECONOMIC INTERVENTIONS AND ENABLERS OF GROWTH Structural reforms are critical for a stronger, more durable recovery...yet progress on reforms is mixed.
Actions Status Actions Status Raise licensing threshold for embedded generation Establish an independent economic regulator for water Implement emergency procurement of 2000MW Finalise the revised raw water pricing strategy Implement procurement of new generation capacity in terms of the IRP2019 Enable municipalities to procure power from independent power producers Restructuring of Eskom into separate entities transmission and distribution for generation, Establish a National Water Resource Infrastructure Agency Address institutional inefficiencies in municipal water distribution Corporatise the Transnet National Ports Authority (TNPA) Improve Energy Availability Factor (EAF) to over 70% Improve efficiency of ports Address institutional inefficiencies in municipal electricity distribution Establish Transport Economic Regulator through Economic Regulation of Transport Bill Complete spectrum auction Finalise White Paper on National Rail Policy Complete migration from analogue to digital signal Implement Third Party access to freight rail network Finalise Rapid Deployment Policy and Policy Direction Publish revised Critical Skills List Streamline process for wayleave approvals Improve water-use license application process Review Policy and framework processes for work visas Expand visa waivers and explore visa recognition system Revive the Blue Drop, Green Drop and No Drop water quality monitoring system Implement e-Visa system in Fourteen countries, India, Kenya and Nigeria including China, 6.
GREEN ECONOMY INTERVENTIONS 19 6.1 GREEN ECONOMY INTERVENTIONS No Intervention Intended outcome Implementation Progress with quantitative & qualitative analysis including focus on women, youth and persons with disabilities information where applicable Challenges & Mitigation Measures Status 6.1 6.2 Section 18 industry waste management plans 30% diverted landfill sites waste from Q1: 3,27% Q2: 2,25% Q3: 3,43% Q4: 3,09% (5 269,90/170 266)*100 Cum: 12,26% companies Challenges Three technical challenges/machinery breakdowns which led to partial processing.
Only two companies were consistent impact in processing.

No major realised from the secondary processors had Corrective Measures The processing fee review process still underway with different stakeholders.

Meeting with Treasury to seek guidance on unblocking challenges.

of Number buy- waste back centres constructed or refurbished before the end of the 2021/22 financial year.

DFFE Improvement in quality of waste management services.
2 Completed in the East and Western Cape 3 in progress at an advanced planning stage in the Free State and Gauteng.

Challenge: Delay caused by SCM processes for appointing of contractors.

Corrective measure have been implemented.

20 6.2 GREEN ECONOMY INTERVENTIONS No Intervention Intended outcome 6.3 for Support and SMMES co-operatives 300 small contractors trained in the forestry sector.
Implementation Progress with quantitative & qualitative analysis including focus on women, youth and persons with disabilities information where applicable To date 74 potential contract workers have been trained on chainsaw operation Challenges & Mitigation Measures Status None GRAND TOTAL: 74 Males - 40 Female - 34 Youth - 38 PWD - 0 21 7.
AGRICULTURE AND FOOD SECURITY 22 7.1 AGRICULTURE AND FOOD SECURITY No.1 Intervention Intended outcome Funding/ Budget Committed High Level Outputs /Targets Implementation Progress with quantitative & qualitative analysis including focus on women, youth and persons with disabilities information where applicable Challenges & Mitigation Measures Dashb oard Enable of emergence an industrial and medicinal hemp and cannabis industry Diversification of the economy in order to increase economic growth, development of rural communities and create jobs 7.1 7.2 (Specify Time Lines ) Cannabis masterplan implemented • Minister announced the commencement of issuance of hemp permits as of 29 October 2021 and first batch of hemp applications and start issuing permits to those that meet the stipulated requirements.
Sign-off of the Agriculture and Agro-processing Plan Master (AAMP) • The negotiations phase among social commenced in October partners 2021 and concluded in March 2022.

• The final draft is being reviewed by all social partners for final comments and sign off is scheduled for all social partners for May 2022 their Further efforts aimed at resolving the legal challenges posed by the Drugs Act should be prioritised as failure to do this will put the whole issuing of hemp permits at risk.
Finding appropriate mechanisms of supporting resource poor growers in order to facilitate their participation in the industry.
23 7.2 AGRICULTURE AND FOOD SECURITY No.2 Intervention Intended outcome Funding/ Budget Committed 7.3 Currently land underutilized into turned production to uplift poor households from poverty Illima/Letsema Support food security programmes Implementation Progress with quantitative & qualitative analysis including focus on women, youth and persons with disabilities information 15 669, 97 ha of land were planted for food production.
High Level Outputs /Targets (Specify Time Lines ) The NDP target supporting of 000 300 smallholders by 2030.

Challenges & Mitigation Measures Dashboard Farmers depend on rainfall that has been erratic, wherein some of the rain was in the form of storms that firstly affected the time of planting an in some cases destroyed already existing crops.

increased irrigation support and investment to mitigate dry land farming.
Ensuring more support to emerging scale small- and farmers to upscale production schemes Illima/Letsema 4021 smallholder producers were supported.
24 7.3 AGRICULTURE AND FOOD SECURITY No Intervention Intended outcome Funding/ Budget Committed High Level Outputs /Targets (Specify Time Lines ) Support food security programmes 7.4 Ensuring more support to emerging and small- scale farmers : to upscale production schemes Million COE R175 from savings committed 2021/22 Financial year for • • 5000 Personnel employed Extension were on Department of Small Business Development a is working to programme and integrate capacitate smallholder farmers in their SMME programmes.
Challenges & Mitigation Measures Dashb oard • • Registration professional body to funding Fully employ Sufficient to Functional Extension Practitioners Implementation Progress with quantitative & qualitative analysis including focus on women, youth and persons with disabilities information where applicable 678 Assistant Agricultural Practitioners (AAPs) were employed Women: 438 Youth: 619 People living with disability: 4 however, to recruit fully functional The plan was practioners to extension challenges to source sustainable funding, agricultural graduates were employed as AAPs with a stipend of R7000.00 per month for 3 months.
due 25 8.

REVIVING THE TOURISM SECTOR 26 8.1 REVIVING TOURISM SECTOR Item Intervention Description Progress and Proposed Corrective Action (Where applicable) Status 8.1 Protect the supply base through, market entry facilitation programme to stimulate investment There is continuous engagement with provinces and product owners of strategic tourism assets in order to rejuvenate and protect supply.
The Database of Distressed High Impact Tourism Investment is regularly updated and projects have been introduced to funding partnerships.

8.2 Rollout a maintenance programme for state owned attractions The maintenance programme in National Parks has approximately 801 participants (296 women, 466 youth and 17 people with disabilities) cumulatively to date.

This accounts for 808 FTEs and 185,917 person days.
The procurement processes for the expansion of this programme into Provincial Parks is at an advanced stage.
8.3 8.4 8.5 8.8 8.9 Reignite the domestic tourism market and develop targetted campaigns Key highlights on the Month of Love campaign: Preliminary Consumer Reach: 21 470 295 Key challenges: Increase in petrol price impact domestic tourism which relies on road transportation Implement norms and standards to create consumer confidence Facilitate re-entry into the regional and international markets Facilitate through transformation implementation of the Tourism Equity Fund (TEF) Build a bidding pipeline for future conference and mega events The Norms and Standards were published in the Gazette on 3 December 2021 for implementation In December a tourism activation was undertaken at the World Expo Dubai attracting over 50 000 visitors to the South African pavilion.
However due to the travel bans imposed after the discovery of the Omicron variant by South African scientists, provinces and other staff were not able to travel to the Dubai Expo for the provincial showcases.

Unpredictable travel ban continue to hamper recovery in international tourism.

The TEF is still under a court interdict and thus cannot be implemented until the legal processes are concluded.

Key Highlights: South Africa has won 31 of the bids submitted for the 2021/22 financial year.
These secured business pieces will contribute R380m to South Africa's economy between 2022 - 2027 and attract 13 170 international and regional delegates.

Key challenges: The current travel restrictions are impacting the successful hosting of international business events hosted in SA.

Ongoing efforts to manage Item 8.6.

Continue to rollout e-visa programme and Item 8.7.


Protection of aviation capacity through operations are led by the Department of Home Affairs and the Department of Transport respectively.
8.2 ERRP and TOURISM SECTOR RECOVERY PLAN (TSRP) ERRP • Tourism is one of covered in the ERRP the 8 areas E E R H T G I C E T A R T S / S E M E H T S R A L L I P TSRP • 3 Strategic Themes/Pillars • • • Re-Igniting Demand, Rejuvenating Supply and Strengthening Enabling Capability • Strategic Interventions These interventions and enablers will facilitate the preservation of R 189 billion of value, help the sector to recover to its 2019 output and employment levels by 2023, as well as position the sector for long-term sustainable growth, reducing the impact of the COVID -19 pandemic on employment by 125 000 jobs PROTECT AND REJUVENATE SUPPLY RE-IGNITE DEMAND STRENTHENING ENABLING CAPABILITY 3.
4.

2.

Support for the Protection of Core Tourism Infrastructure and Assets.

a Execute programme International Demand.

to global Marketing reignite Stimulate demand domestic through targeted initiatives and campaigns.

(Budget Resort Pilot) 5. an investment Launch and resource mobilisation programme to the support supply.

6.

Tourism Regional Integration.

7. Review the tourism policy to for provide enhanced support sector growth and development.

Deployment of the vaccine.


Stimulate government consumption.

demand through Form partnerships between industry and government.

targeted Partner with relevant departments to facilitation ensure improved travel through implementation of e-visas, tourist safety and quicker turnaround times tour in the processing of operators’ licences.

Reduced airlift capacity, brand positioning in key source markets and the easing of cross boarder travel restrictions.
The country may not be able to achieve its target of population immunity by the end of 2021.

The stop and start cycles the sector will experience as new waves and variants may occur.

28 8.3 REVIVING TOURISM SECTOR PROGRESS SUMMARY SOUTH AFRICAN INBOUND TOURISM PERFORMANCE 2021 COMPARED TO 2020 South Africa received a total of 2 255 699 tourist arrivals in 2021 which was a decline of -19,5% compared to 2020.
TOTAL INTERNATIONAL ARRIVALS 2 255 699 (-19,5%) in 2021 compared to 2 802 320 in 2020 2021 MAIN SOURCE REGION In 2021, Africa remains South Africa’s main source region for tourist arrivals, contributing about 83,1% of total international arrivals to the country.

Europe remains the main source region for overseas tourists.
TOP SOURCE REGION: AFRICA 1 873 609 (-12,3%) MAIN AFRICAN SOURCE COUNTRY: Mozambique 522 866 (23,7%) TOP OVERSEAS MARKETS: EUROPE 217 241 (-51,4%) MAIN OVERSEAS SOURCE COUNTRY: USA 82 020 (14,0%) Note: January-December 2021 compared to January-December 2020 Source: Stats SA Tourism and Migration Report: December 2021 and data cuts.

Thank you