ATC130528: Report of the Portfolio Committee on International Relations and Cooperation on the Budget Vote 5: International Relations and Cooperation, dated 22 May 2013

Report of the Portfolio Committee on International Relations and Cooperation on the Budget Vote 5: International Relations and Cooperation, dated 22 May 2013

The Portfolio Committee on International Relations and Cooperation (the Committee), having considered the Budget Vote 5: International Relations and Cooperation of the Department of International Relations and Cooperation (the Department), reports as follows:

1. Introduction

The Committee considered the Department’s Strategic Plan 2013-2018, the Annual Performance Plan (APP) 2013-2014 and the budget allocation for 2013/14 on 24 April 2013. The purpose of the meeting was primarily for the Department to outline updates in its strategic plan, and demonstrate the alignment of its annual performance plan to its budget for the 2013/14 financial year.

In his presentation, the Director General recalled that according to the South Africa ’s Constitution, the President has the ultimate responsibility for the foreign policy and international relations of South Africa . The Minister of International Relations and Cooperation is entrusted with the formulation, promotion and execution of South Africa ’s foreign policy and with daily conduct of its international relations.

The Department was working for the realisation of South Africa ’s foreign policy objectives. These were to be achieved through coordinating and aligning South Africa ’s international relations abroad; monitoring developments in the international environment; communicating government’s policy positions; developing and advising government on policy options. Its mandate extended to creating mechanisms and avenues for achieving objectives; protecting South Africa ’s sovereignty and territorial integrity; contributing to the creation of an enabling international environment for South African business; sourcing development assistance and assisting South African citizens abroad.

2. Overview of the Department’s Medium Term Strategic Framework (MTEF) 2013-2018

The Department’s budget vote was informed by South Africa ’s strategic vision for the country, region, continent and the world. In pursuit of the country’s foreign policy objectives, it would be acting in support of Government’s medium term strategic objectives and the twelve strategic outcomes. Outcome 11 focussing on external relations is the responsibility of the Department. It has also taken due cognisance of the recommendations in Chapter 7 of the National Development Plan 2030. It reported as fully aware of the great responsibility placed on it to contribute to a better life for all in South Africa and in Africa . It has thus undertaken to achieve the mandate through pursuing the high-level objectives of the enhanced African Agenda and sustainable development; strengthen political and economic integration of the Southern African Development Community (SADC); strengthen South-South relations; strengthen relations with the strategic formations of the North; participate in global system of governance; and strengthen political and economic relations.

During the course of the financial year, the Department would particularly focus on five strategic areas. It would focus on supporting the strengthening of the African Union (AU) Commission; expediting the implementation of the New Partnership for Africa’s Development (NEPAD) Infrastructure Programme; ensuring that South Africa makes a positive impact as the chair of the Brazil, Russia, India, South Africa (BRICS) Forum after hosting the summit in March 2013; participating in the G20 and the G20 Development Committee and pursuing regional political and economic integration.

South Africa was aware that regional integration should be pursued through a three-pronged approach, namely, regionally, continentally and globally. In order to build greater productive and export capacity, including global competiveness across the region, it would be necessary to advance a developmental integration agenda in Southern Africa . The agenda should combine trade integration, infrastructure development and sector policy coordination.

The Committee became aware that the previous budget programme dealing with International Relations has since been divided into two budget programmes. International Relations would be focussing on Bilateral Relations and International Cooperation programme would deal with Multilateral Relations. The split was reported as allowing for a more focussed approach to planning.

The annual performance plan of the Department was reported to be significantly different from previous APPs. It was far more detailed in its approach, and was compliant with the Framework for Management Performance Assessment (MPAT). To this end, the Office of the Director General has established a new unit called Strategic Planning, Monitoring and Evaluation Management. The unit is to coordinate and evaluate the strategic planning and monitoring processes of the Department.

The Department intended tabling a new Bill that will repeal the African Renaissance Fund (ARF), and establish a new fund, the Partnership Fund for Development. Then the South African Development Partnership Agency (SADPA) would be operationalised as a strategic entity for all outgoing development cooperation.

Two planned policy options were reported on. Notably, these have not changed from the information given in 2012/13. These relate to the establishment of SADPA and the tabling of a Foreign Service Bill to cater for the unique work environment in which the Department operates. The Bill was expected to create the necessary flexibility to address the challenges posed by operating at the global level.

South Africa was elected as a member of the Economic and Social Council for the period 2013-2015. The main focus would be in shaping the implementation of the post-2015 United Nations Development Agenda.

Economic diplomacy would be prioritised given its importance in promoting South Africa ’s value-added exports and attracting Foreign Direct Investment (FDI). Focus would be on skilling diplomats, including Heads of Mission, in the tools of economic diplomacy.

3. Situational analysis

The Department gave a situational analysis which underlined a continued trend of South Africa , Africa and the broader South’s socio-economic development being slowed by challenges of the developed countries. The global environment continued to be characterised by a major shift in global, economic and social dynamics. These included the realignment of new economic powers, new media and social networks; environmental change; heightened demand for scarce resources and the changing nature of conflict and insecurity. The new economic powers were influencing the balance of the global distribution of power, resulting in the formation of new political and economic groupings. South Africa and African economies are increasingly linked to these new economic powers.

The Middle East remained in turmoil, exacerbated by the Arab uprisings, primarily in North Africa , Bahrain , Syria and Yemen . Military conflict continued in the Syrian Arab Republic ; Iran remained isolated in the face of perceptions that they were playing a destabilising regional role. Natural and man-made disasters were impacting on all aspects of human development, particularly food security.

The rising nationalistic tendencies in Europe were mentioned. The Department mentioned the increased tensions over disputed territories in the South China Sea . The tension between the two Koreas since the testing of a nuclear device by North Korea and joint military exercises between the United States and South Korea was also mentioned.

The global governance system remained under threat from unilateralist tendencies by some superpowers. There has been evidence of a gradual erosion of multilateral approach to issues.

Africa was reported to have seen a significant advancement in democracy and good governance as demonstrated by the increasing number of credible elections. However, there has also been a significant threat to stability with the rise of terrorist groups such as Al Qaeda, Al Shabaab, Boko Haram and the Lord’s Resistance Army. Peace and security challenges have remained prevalent in the Democratic Republic of Congo, Nigeria , Sudan , Somalia , Central African Republic , Mali and Ivory Coast . Unconstitutional change of governments and armed secessionist groups continued to be a threat in countries such as Mali and Nigeria respectively.

Governments were faced with increased challenges of improving the well-being of their citizenry in an increasingly unfavourable global economic climate. Increasing trend in intra-state tension and even conflict has been attributed to competition for resources and markets, particularly in the African continent, and the growing discontent among people globally. The recent conflicts in the Middle East and North Africa attested to the new trend against socio-economic conditions and authoritarian governments.

Along with the ongoing world economic recession, the emergence of the Brazil , Russia , India , China and South Africa (BRICS) Forum created hope for Africa ’s development. The mooted BRICS Development Bank could further accelerate Africa ’s growth. The South continued to influence the world order, more so with the latest wave of emerging economies such as a grouping involving Colombia , Indonesia , Vietnam , Egypt , Turkey and South Africa (CIVETS).

Africa ’s economic integration in pursuit of increased intra-continental trade has become more important in light of the current global economic environment. Efforts to built infrastructure in the continent would be intensified to improve connectivity of African economies. These would create new value chains and facilitate the movement of goods within the continent. Africa has abundant natural resources; however, political stability and good governance should be entrenched.

South Africa was potentially at the heart of global shipping routes. It was believed that the southern part of South Africa should reposition itself to play an increasing role in shipping networks by 2013/14 due to problems associated with the use of the Suez Canal .

4. Distribution of the Budget

According to the Estimates of National Expenditure 2013, the Department is expected to be allocated R5, 548.40 billion for 2013/14 financial year. However, over the medium term, spending is expected to increase to R6.2 billion owing to inflation related adjustments made across all programmes and unitary fees incurred for the head office building. More than R334 million of this increase provides for inflation related adjustments to spending on compensation of employees and foreign exchange rate fluctuations. An amount of R151.6 million makes provision for inflation related adjustments made to accommodation lease commitments. The 13.8 per cent increase in spending on operating leases over the MTEF period was because of increases in the cost of leasing mission buildings.

The Department’s total spending on consultants’ averages 0.5 per cent and 1.4 per cent of total spending on compensation of employees in 2012/13 and over the medium term, respectively. Spending on consultants was expected to increase to R33.5 million in 2015/16, mainly for conducting feasibility studies for infrastructure projects, ICT services and also for the provision of training services. The Department employed an additional 229 people in 2011/12, the majority of whom were in salary levels 1 to 12, with a minimal increase in expenditure on compensation of employees. In 2013/14, the Department has planned to employ an additional 225 people to strengthen its capacity.

The Department’s spending on infrastructure increased from R165.3 million in 2009/10 to R206.9 million in 2012/13, and is expected to increase to R223.8 million over the MTEF period. The spending focus over the MTEF period will be on the completion of renovations to capital projects. An amount of R202.9 million in 2013/14, R213.9 million in 2014/15 and R223.8 million in 2015/16 has been budgeted for the construction of new state owned chanceries, official residences and staff accommodation abroad. The amounts would also cover the renovation and upgrading of the state owned property portfolio abroad. In particular, the Department intended to complete the construction of chanceries in Dar es Salaam , Tanzania ; and Lilongwe , Malawi , and progress substantially with the construction of chanceries in Kigali ( Rwanda ) and Mbabane ( Swaziland ). The Department would engage the private sector for the development of chanceries and official residences on vacant state owned land in New Delhi (India), Riyadh (Saudi Arabia), Dakar (Senegal), Bamako (Mali), Gaborone (Botswana) and Montevideo (Uruguay), through development agreements or public private partnerships.

Table 1 Budget Allocation-International Relations and Cooperation

Programme	Budget				Nominal Rand change	Real Rand change	Nominal per cent change	Real per cent change
R million	2012/13	2013/14	2014/15	2015/16	2012/13-2013/14		2012/13-2013/14
Programme 1: Administration	1 275.6	1 327.8	1 403.3	1 468.0	52.2	- 18.2	4.09	-1.43
Programme 2: International Relations	2 360.2	2 653.4	2 840.6	3 017.8	293.2	152.5	12.42	6.46
Programme 3: International Cooperation	438.8	447.9	452.7	464.5	9.1	- 14.7	2.07	-3.34
Programme 4: Public Diplomacy and Protocol Services	298.3	243.9	243.9	249.4	- 54.4	- 67.3	-18.24	-22.57
Programme 5: International Transfers	898.6	875.4	924.3	966.8	- 23.2	- 69.6	-2.58	-7.75
TOTAL	5 271.5	5 548.4	5 864.8	6 166.5	276.9	- 17.3	5.25	-0.33

Source: Estimates of National Expenditure 2013

Table 1 illustrates the changes in allocations from the years 2012/13 and 2013/14. For programme 1: Administration, there is a nominal increase of 4.09 per cent in 2013/14, however the allocation has declined in real terms by 1.43 per cent. Programme 1 is the second biggest allocation of the Department’s overall budget. The largest allocation will be given to Programme 2: International Relations with the nominal increase being 12.42 per cent or in real terms 6.46 per cent. It must be noted that in previous years the Department had four programmes, however, It has split its International Relations and Cooperation Programme into two programmes namely: Programme 2: International Relations and Programme 3: International Cooperation. Programme 3: International Cooperation, would receive a nominal increase of 2.07 per cent, but in real terms the 2013/14 allocation has declined by 3.34 per cent. Programme 4: Public Diplomacy and Protocol Services experienced a nominal decline of 18.24 per cent in its 2013/14 allocation and a real change of 22.57 per cent. Finally, Programme 5: International Transfers which would receive the third largest allocation of the overall budget experienced a decline of 2.58 per cent in its 2013/14 allocation, which is a real decline of 7.75 per cent.

4.1. Expenditure per programme

Programme 1: Administration

The programme was reported responsible for policy development and management of the Department. The programme has been allocated R1 327.8 billion for the 2013/14 financial year. Over the medium term, spending in this programme was expected to increase to R1.5 billion because of inflation related adjustments for compensation of employees and increases in rental costs for office accommodation. Spending on consultants was expected to increase to R28.1 million over this period mainly because feasibility studies for infrastructure projects, ICT services and training services are to be conducted. The Department employed an additional 54 people between 2009/10 and 2012/13, the majority of which were reported in salary levels 7 to 12. As at 30 September 2012, there were 28 vacant posts. This was due to retirements and resignations mainly in salary levels 7 to 12. Over the medium term, moderate increases are expected in the number of additional posts created as the Department strengthens the skills of existing staff.

Programme 2: International Relations

The programme was reported responsible for strengthening political, economic and social relations with targeted countries to advance South Africa ’s national priorities. The programme has been allocated R2 653.4 billion for the 2013/14 financial year. The spending focus over the medium term would be on promoting relations through political and socio-economic development.

The budget allocation over this period would enable the Department to contribute to the realisation of key national outcomes through strengthened bilateral cooperation with individual countries of the South and the North. These would include increased exports of South African goods and services, foreign direct investment with technology transfers into value added industries and mineral beneficiation. This would extend to increased inbound tourism and skills development.

The decrease in expenditure between 2009/10 and 2012/13 was due to cost cutting measures implemented in 2010/11 on service items such as communications, catering, venues and facilities, and travel. Over the medium term, spending in the programme was expected to increase to R3 billion due to cost of living and inflation related adjustments on obligatory expenses such as foreign allowances and accommodation leases. The 35.4 per cent increase in spending on contractors in 2009/10 relates to maintenance costs that were completed in 2010/11.

Spending on the Asia and Middle East and Americas and Caribbean subprogrammes was expected to decrease by 10 per cent over the medium term due to foreign exchange fluctuations and budget realignment. Spending on goods and services would increase by 11.8 per cent due to foreign exchange rate fluctuations and inflation adjustments to property leases. Spending on operating leases would increase by 16.2 per cent over the same period because of an expected increase in office and accommodation rental costs as well as foreign exchange fluctuations.

The Department employed an additional 112 people under this programme between 2009/10 and 2012/13, the majority of whom were in salary levels 7 to 10. The increase in the number of posts was due to the Department having the capacity to fill vacant posts. As at 30 September 2012, the vacancy rate was 8.4 per cent due to resignations. Over the medium term, the Department was planning to employ an additional 38 people, which would result in the programme having a full establishment.

Programme 3: International Cooperation

The programme was reported responsible for participation in international organisations and institutions in line with South Africa ’s national values and foreign policy objectives. The programme has been allocated R447.9 million for the 2013/14 financial year.

The spending focus over the medium term would be on participating in the United Nations (UN) system of governance through South Africa ’s elective membership to the UN Economic and Social Council, as well as in the integration of the SADC through infrastructure programmes. The increase in spending between 2009/10 and 2012/13 was because South Africa played a leading role in conflict prevention, peacekeeping, peace building and post-conflict reconstruction. It also participated in all the forums of the UN system. There was an increase in spending under the programme between 2009/10 and 2012/13, because South Africa served as a non-permanent member of the UN Security Council. Spending on operating leases decreased by 28.1 per cent between 2009/10 and 2012/13 as officials’ residences in Brussels were acquired and the building of staff accommodation facilities in Addis Ababa was completed.

Expenditure was expected to increase to R464.5 million over the medium term because of South Africa ’s participation in the UN Economic and Social Council, the provision of support to the effort of pursuing the African Agenda on the continent, as well as efforts made towards the promotion of regional integration. Spending on the South-South cooperation subprogramme was expected to increase due to the greater focus on economic diplomacy. Expenditure includes an increase in compensation of employees as the Department plans to employ 38 people over the medium term. The required additional capacity is due to economic diplomacy and development initiatives assuming more importance.

Programme 4: Public Diplomacy and Protocol Services

The programme was reported to provide strategic public diplomacy direction and state protocol services both nationally and internationally. The programme has been allocated R243.9 million for the 2013/14 financial year.

The spending focus over the medium term would be on enhancing programmes for creating public awareness both locally and abroad, facilitating incoming and outgoing visits, and hosting the diplomatic community in South Africa . The budget allocation over this period would enable the Department to market and brand South Africa in international affairs, to fulfil its international obligations and to ensure that there is continued foreign representation in South Africa .

Expenditure was expected to decrease to R249.4 million over the medium term, because of the once-off allocation of R78 million in 2012/13 for hosting the African Global Diaspora summit and the 2013 Africa Cup of Nations. Spending in the Protocol Services subprogramme would decrease by 9.2 per cent over the medium term, due to the once-off spending on the African Global Diaspora summit in 2012. Spending on goods and services would decrease by 12.1 per cent over the medium term as fewer events, conferences and summits are scheduled to be held in the period. The Department employed an additional 36 people between 2009/10 and 2012/13, the majority of whom filled vacancies at salary levels 7 to 10 in the Public Diplomacy subprogramme. As at 30 September 2012, the vacancy rate was at 21 per cent. This was due to an increase in the approved establishment for the Soutpansberg guesthouse to be operationalised. The plan was to employ an additional 44 people in 2013/14 to fill all the posts on its approved establishment.

Programme 5: International Transfers

The programme was reported to provide South Africa ’s contribution with regard to membership fees of international organisations, and facilitates transfers to the African Renaissance and International Fund (ARF). The programme has been allocated an amount of R875.4 million for the financial year 2013/14.

The major spending focus over the medium term would be on making transfers to the ARF and timeous payment of South Africa ’s membership fees to international organisations. The allocation of R518 million for the ARF would include, an additional allocation of R73 million appropriated during the 2012 adjusted estimates of national expenditure process for the recapitalisation of the fund in relation to socioeconomic programmes. The transfers to foreign governments and international organisations are expected to increase from R380.6 million in 2012/13 to R441.8 million in 2015/16, due to inflationary increases.

This programme does not have any personnel to it. Its objective is to facilitate transfers to a public entity and international organisations.

4.2. Public entities and other agencies

African Renaissance and International Cooperation Fund (ARF)

The ARF was established under the African Renaissance and International Cooperation Fund Act (2001). The fund is mandated to:

· enhance cooperation between South Africa and other countries, in particular African countries;

· promote democracy and good governance;

· work for the prevention and resolution of conflicts;

· promote socioeconomic development and integration; and

· provide humanitarian assistance and human resource development.

Table 2: African Renaissance and International Cooperation Fund: Programmes

Programme	Budget
R million	2012/13	2013/14	2014/15	2015/16
Maloti-Drakensberg Transfrontier		0.0	-	-
Zimbabwe Projects	0.0	0.0	-	-
African Monitor	30.0	45.0	47.7	49.8
Africa 's Musical Instruments International Vocational Innovation Centre	75.5	40.5	42.9	44.9
Pan African Women's Organisation	195.0	220.0	233.2	243.9
Sudan Elections	0.0	0.0	-	-
Other Objectives	144.5	171.4	178.1	186.3
TOTAL	445.0	476.9	501.9	525.0

Source: Estimates of National Expenditure 2013 .

The spending focus over the medium term would be on projects relating to the promotion of peace and stability in Africa , reconstruction and development, socio-economic development and integration, and support for urgent humanitarian needs, specifically to the Pan African Women’s Organisation and African monitor projects. This would help the fund to promote the African Agenda and democracy, good governance, and the prevention and resolution of conflict. Spending on Africa ’s Musical Instruments International Vocational Innovation Centre would decrease by 15.9 per cent over the MTEF period due to the reprioritisation of funds to the Pan African Women’s Organisation and African Monitor projects.

The ARF’s activities are administered and managed by its advisory committee, which comprises representatives from the Department and National Treasury. This committee makes recommendations to the two ministers for concurrence to fund all its projects. In its current format, the ARF does not have any personnel and allocations are earmarked for the funding of projects. It is completely supported and administered by the Department. Plans to set up an agency to administer the fund’s operation, including the monitoring of its projects are well under way.

5. Observations and concerns raised by the Committee

5.1. The budget allocation for 2013/14 was still not adequate for the mandate the Department is charged with. The Department should look into reprioritisation of resources to more urgent priorities. The annual performance plan should adequately reflect the focus and priorities like economic diplomacy, increased intra-Africa trade and closer cooperation with the new CIVETS formation.

5.2. The plan should inform where focus will be to increase tourism as the Department has indicated. Tourism was regarded as a catalyst to economic development and job creation.

5.3. In 2011, the Department embarked on disposing of some of the properties belonging to the South African embassy in Windhoek . An update was sought on the matter.

5.4. A further elaboration was needed on the rationale for the split into two of the former Programme 2: International Relations and Cooperation to, Programme 2: International Relations (Bilaterals) and Programme 3: International Cooperation.

5.5. South Africa hosts and still offers to host international organisations for which it bears the cost for their presence in South Africa . It would be advisable that a cost-benefit analysis is undertaken as a review on the basis of the actual value added for hosting some of these organisations.

5.6. The decision by government to create the Management Performance Assessment Tool Framework (MPAT) was an important step in monitoring compliance by departments with good governance practices. It was noted that in response to this requirement, the Office of the Director General has established a unit which will monitor compliance with MPAT. The Department was cautioned against such a unit becoming a super structure.

5.7. Para-diplomacy is a newly recognised notion under which provinces and municipalities could be authorised to engage their counterparts abroad. In order to avoid the increasing risk of uncorrelated foreign policy postures, the Government approved ‘Measures and Guidelines for the Coordination of South Africa’s International Engagements’. A further discussion on the challenges regarding the implementation of the guidelines was needed.

5.8. There was a need to examine the criteria for opening embassies and missions abroad. It seemed South Africa was opening offices in many countries with no clear linkages to the country’s economic interest in some of the countries. Furthermore, while there was a cabinet decision to open missions in every African country, it was not clear why this should happen.

5.9. The strategic plan did not adequately reflect economic diplomacy and regional integration as key focus areas. Reference to these two approaches would be in line with prioritisation of Africa ’s development as elaborated under the African Agenda.

5.10. There was still low trade between South Africa and the rest of Africa . An elaboration of a Departmental strategy, if any, in conjunction with other departments would be appreciated.

5.11. There was a need for an update on the projects funded under the African Renaissance Fund. It was referred to as the only entity under the Department.

5.12. South Africa operated in many countries as part of peacekeeping missions. A further elaboration on the impact these efforts yielded would be of importance.

6. Responses by the Department

6.1. Political and economic considerations inform the establishment of embassies and missions abroad. Prior 1994, South Africa had embassies mostly in Europe because of the country’s political history. Post-1994, the Department began opening embassies and missions in Africa in response to the change to a democratic landscape.

6.2. The plan has been to open missions or embassies in all African countries. History has taught the Department that it becomes an advantage to have early presence in small countries, as these countries tend to become lucrative markets later on. In the future, the Committee will be briefed in the event of embassies being opened.

6.3. South Africa ought to be exporting more into Africa . As the most diverse economic region in Africa regarding resources utilisation, South Africa should be exporting at least 60 per cent of finished products. With the Department of Trade and Industry’s resolution to value-add through the implementation of the Industrial Policy Action Plan 3 (IPAP3), it was believed that during the next administration (2014-19), the investment in technology transfer should be able to create a basket of products and services.

6.4. The Government’s implementing agent for the building of the headquarters of the Pan African Parliament (PAP), is the Department of Public Works (DPW). Construction on the site in Midrand has not gone ahead due to related environmental impact assessment issues. Given the project’s budget escalations as reported by DPW, National Treasury has advised that alternative procurement methods be considered. The Department has escalated the lack of progress on the project through its principals to the political leadership of the responsible department. The new target is to complete the headquarters of the PAP by 2016.

6.5. An update on the activities of the ARF will be made available to the Committee in due course. The ARF would soon be replaced by the South African Development Partnership Agency (SADPA). The plan is to have the strategic plan and operational framework of SADPA launched during the 2013/14 financial year.

6.6. A review would be taken in 2014 to determine the cost benefit analysis of each embassy or mission. Such a report would be shared with the Committee.

6.7. The process for the disposal of property in Windhoek was yet to be completed. Public Works would normally be involved in such cases.

6.8. A review would be undertaken regarding leases of properties by missions and embassies abroad. The aim would to make an assessment that would reduce the costs related to lease accommodation.

6.9. The costs related to SADC elections observer missions were financed from the ARF. The next important elections would be in Zimbabwe later in the year. South Africa was preparing to deploy 80 election monitors/observers to Zimbabwe . One group would be deployed two months prior to and a second group one month prior to the elections and have presence there till results are announced. The current Zimbabwean parliament was expected to be dissolved on June 26 and a new administration had to be elected four months after that (October). The election date of a new parliament was still to be determined, but was expected to be around September. SADC would send the largest-ever observer mission of elections (400 people) to Zimbabwe , with South Africa contributing 180 people, consisting of civil society, parliament and officials.

6.10. South Africa ’s peacekeeping efforts in Africa have borne positive results. The operations were either under the auspices of the UN or the African Union (AU). Successful missions were carried out in Burundi and South Sudan . That saw South Africa being requested to conduct capacity building, especially in the security sector in the Democratic Republic of Congo (DRC), Central African Republic (CAR) and South Sudan . The professionalism with which the troops conduct themselves has come with accolades and has presented South Africa as a Protection force of choice both at the AU and UN levels.

6.11. The unanswered questions due to time constraints would be responded to in writing. Every effort would be made to complete the task on time.

7. Conclusions

After discussions during the briefing, the Committee concluded as follows:

The Department has been operating on a shoe-string budget year after year. Its main operations abroad have been affected by currency fluctuations. The Department has to carry out its mandate within unpredictable, at times turbulent, external environment to advance South Africa ’s national interest. The National Development Plan dictates that the Department should position itself to assume greater leadership role in Africa , leading development and growth in the continent. The interplay between foreign policy and national interest continue to be the baseline of their success in the conduct South Africa ’s foreign policy. Following from the above conclusions, it has, therefore, become important to have continued clear and focus driven plans which remain aligned to the budget allocated.

8. Recommendations

Having considered the Budget Vote 5: International Relations and Cooperation of the Department, the Committee recommends that the Minister should consider the following and report on progress:

8.1. Reprioritising spending to ensure greater achievement of the Department’s priorities. The Department is operating on a shoe-string budget year after year, though the mandate is growing wider and more complex.

8.2. 8.2 Addressing concerns relating to the ARF’s supply chain management and procurement, including finalising a database of approved service providers. This would ensure the implementation of the report of the Auditor-General 2011/12, which highlighted that the ARF did not have its own human resource management, supply chain management and IT Governance systems, it uses those of the Department.

8.3. 8.3 Addressing concerns relating to the monitoring and review of the implementation of projects under the ARF. This should include increasing visits to projects in the countries concerned.

8.4. 8.4 Supporting projects that contribute to South Africa ’s foreign policy priorities when considering requests for assistance under the ARF. This particularly relates to the consolidation of the African Agenda.

8.5. 8.5 Conducting a cost benefit analysis between the need for consultancy services continuously over the medium-term period, and in-house development of the needed capacity. The Department’s total spending on consultants is relatively increasing within its total spending on compensation of employees. Such services are on, among others, ICT and training services.

8.6. 8.6 Seeking a political buy-in into the operationalisation of the coordinating mechanism on foreign policy activities. This will ensure coordination of continuing practices of para-diplomacy and also curb the risk of different foreign policy pronouncements made to the outside world.

8.7. Seeking a continued coordinated approach and structured consultations with key departments such as Defence, Home Affairs, Finance and Tourism on activities abroad in conduct of foreign policy. This would take care of challenges of a public diplomacy nature which require a consultative process before addressing the outside world.

8.8. Introducing a deliberate policy requirement that all officials at headquarters and missions abroad undergo economic diplomacy training and re-orientation programme. This would ensure that economic diplomacy forms the basis for aligning foreign policy to domestic priorities.

8.9. Advancing a developmental integration agenda in Southern Africa combining trade integration, infrastructure development and sector policy coordination. The integration of SADC remains critical for the economic development of the region and for South Africa ’s global competitiveness.

The Committee recommends that the Budget Vote 5: International Relations and Cooperation be passed.

Report to be considered.

Sources

State-of-the-Nation Address 2013

The African Renaissance and International Fund Act 2000

Department of International Relations and Cooperation Strategic Plan 2013-2018

Department of International Relations and Cooperation Annual Performance Plan 2013-2014

Department of International Relations and Cooperation briefings 2012 to 2013

National Treasury Estimates of National Expenditure 2013