ATC131105: Budget Review Recommendation Report of the Portfolio Committee on Communication on Brand South Africa, dated 31 October 2013

Budget Review Recommendation Report of the Portfolio Committee on Communication on Brand South Africa, dated 31 October 2013

Table of Contents

1.1       Mandate of Committee.................................................................................................. 2

1.2       The Role and Mandate of the Committee is to:................................................................ 2

1.3       Description of Core Functions of BSA:........................................................................... 2

1.3.1       Mandate, Vision and Mission................................................................................... 2

1.4       BSA’s measurable strategic outcome oriented goals 2012/13:.......................................... 3

1.5       Purpose of the BRR Report........................................................................................... 3

1.6       Method......................................................................................................................... 3

1.7       Outline of the Contents of the Report............................................................................. 3

2.1       2013 State-of-the-Nation Address (SoNA)....................................................................... 4

2.2       Outcome-Based Approach............................................................................................. 5

2.2.1       Delivery agreement targets for 2012/13..................................................................... 5

2.3       Organisational Environment............................................................................................ 5

3.1       2011/12 BRRR Recommendations.................................................................................. 6

3.1.1       Summary of key financial and non-financial performance recommendations made by Committee           6

3.2       2013/14 Committee Budget Report................................................................................. 6

4.1       Overview of Vote Allocation and Spending (2009/10 2014/15).......................................... 6

4.2       Financial Performance................................................................................................... 7

4.2.1       Quarterly Spending Trends...................................................................................... 7

4.2.2       Summary............................................................................................................... 8

4.3       Adjustments 2012/13..................................................................................................... 8

4.4       Final Total and Programme Expenditure.......................................................................... 8

4.5       Auditor-General (AG) Report:.......................................................................................... 9

4.5.1       Predetermined objectives........................................................................................ 9

4.5.2       Irregular, fruitless, wasteful and unauthorised expenditure.......................................... 9

4.5.3       Financial and Performance Management................................................................. 10

4.6       Financial Performance 2013/14..................................................................................... 11

4.6.1       Quarterly Spending Trends..................................................................................... 11

4.7       2014/15 MTEF Financial Allocations.............................................................................. 11

5.1       Service Delivery Performance for 2012/13..................................................................... 11

5.1.1       Targets based on APP.......................................................................................... 11

5.1.2       Overall Service Delivery Performance..................................................................... 12

5.2       Concluding Comments on Service Delivery Performance............................................... 12

7.1       Governance and Operational Issues.............................................................................. 15

1        Introduction

The Portfolio Committee on Communications (the Committee), considered the performance and submission to National Treasury for the medium term period of the Brand South Africa (BSA), formerly known as the International Marketing Council (IMC)and reports as follows:

1.1       Mandate of Committee

In terms of Chapter 4 of the Constitution of the Republic of South Africa, Act 108 of 1996 (the Constitution) gives a mandate to Portfolio Committees to legislate, conduct oversight over the Executive and also facilitate public participation.

According to Section 5 of the Money Bills Amendment Procedure and related Matters Act, the National Assembly Committee’s must annually assess the performance of the Departments. The Committee must submit an annual Budgetary Review and Recommendation Report (BRRR) for the Department in terms of its oversight responsibilities for tabling at National Assembly. The report should be considered by the Committee on Appropriations when it is considering and reporting on the Medium Term Budget Policy Statement (MTBPS) to the House and should be submitted to the Minister of Finance and all relevant Ministers.

1.2       The Role and Mandate of the Committee is to:

·         Consider legislation referred to it;

·         Exercise oversight over the Department and it entities;

·         Consider International Agreements referred to it;

·         Consider Budget Vote of the two Departments;

·         Facilitate public participation process; and

·         Consider all matters referred to it in terms of legislation, the Rules of Parliament and resolutions of the House.

1.3       Description of Core Functions of BSA:

1.3.1       Mandate, Vision and Mission

Mandate:

BSA was given the mandate of nation brand management, which was influenced by government policy imperatives. The objective was to enhance South Africa’s global competitiveness and international reputation and to build pride and patriotism amongst South Africans and contribute to social cohesion and nation brand ambassadorship.

Vision:

For South Africa to be acknowledged as a Top 20 Nation Brand and a Top 30 Competitive Nation by 2020.

Mission:

To build and manage South Africa’s nation brand reputation in order to strengthen the country’s global competitiveness.

1.4       BSA’s measurable strategic outcome oriented goals 2012/13:

·           Brand alignment by stakeholders;

·           Increased pride and patriotism amongst South Africans;

·           An articulated and contextualized SA policy;

·           Positive perceptions about SA amongst target audiences;

·           A sustainable organisation; and

·           Increased economies of scale and scope.

BSA’s activities are influenced by the National Development Plan (NDP), South Africa’s national objectives of Gross Domestic Product (GDP) growth, job creation, poverty alleviation and social cohesion based on the Constitution, the Medium Term Strategic Framework (MTEF), the Nation Plan of Action, the National Communications Framework and the country’s International Relations Strategy. The policy messages derived from the State of the Nation (SoNA) sets the tone for BSA’s task each year.

1.5       Purpose of the BRR Report

According to Section 5 of the Money Bills Amendment Procedure and Related Matters Act, the National Assembly, through its Committees, must annually assess the performance of each national department. The Committee must submit an annual BRRR for each Department that falls under its oversight responsibilities for tabling in the National Assembly. The Standing Committee on Appropriations (SCOA) should consider these when it is considering and reporting on the MTBPS to the House.

The Committee considered the Strategic Plan and Budget of Brand South Africa on 20 March 2013 and its Annual Report 2012/13 on 16 October 2013.

1.6       Method

For the period under review, the Committee, in exercising its oversight role, interacted with BSA and analysed its 2013-2015 Strategic Plan, the 2012/13 Annual Report, the Auditor-General (AG) Report, SoNA, NDP, and the 2012/13 Estimates of National Expenditure (ENE).

1.7       Outline of the Contents of the Report

This report is aligned to broader government policy frameworks, NGP, NDP and the governing party’s priorities (job creation, poverty alleviation, combating crime and corruption, rural development, education and health). It reviews the initiatives taken by BSA to ensure that the priorities of the plan are realised. Furthermore, the report reviews the recommendations made in the previous year’s BRRR to ascertain whether they have been acted upon. It also looks at the recommendations made by the Committee regarding the 2012/13-budget vote report. The report then assesses the financial as well as service delivery performance to ascertain whether the budget allocated to BSA was spent as envisaged in the Annual Performance Plan (APP). Finally, it summarises the observations made by the Committee after considering all necessary documents and presentations before making recommendations aimed at improving service delivery.

2        Overview of the key relevant policy focus areas

2.1       2013 State-of-the-Nation Address (SoNA)

In his SoNA in February 2013, President Jacob Zuma stated: “Let me hasten to add that government departments at all levels must work closely with communities and ensure that all concerns are attended to before they escalate. That responsibility remains. We are a caring government.” Furthermore he said, “This programme of action will be implemented differently as the activities of departments must be aligned with the NDP.”

Although some analysts may argue that the 2013 SoNA did not make any unswerving pronouncements on BSA, however, the articulation by the President can also be used to highlight BSA’s work (programmes and activities) through its direct communication with the citizenry whose resultant interaction acts as an enabling tool that promotes BSA locally and internationally, whether these are national communication strategy, online reputation management, socio-economic environment surveys, research and opinion polls, tracking indices reflecting competitiveness and reputation, stakeholder engagements, media briefings and press conferences.

The entity supports many of government’s policy frameworks and activities that enhance the nation’s global competitiveness. For instance, ‘BSA supports the NDP by mobilising South Africans to work together to address priorities that will help give life to our Vision 2013’. [1]

Lastly, the vision of the entity is to see South Africa acknowledged as a Top Nation Brand and a Top 30 Nation in the Global Competitiveness Index by 2020. In addition to this, it has a double mandate: to build South Africa’s nation brand reputation in order to improve South Africa’s global competitiveness, and to build pride and patriotism among South Africans and contribute to social cohesion and nation brand ambassadorship internationally and domestically respectively.

More importantly as the Minister put it, ‘ to contribute to fostering civic pride, social cohesion and patriotism, and to growing South Africa’s brand reputation and improving its global competitiveness.’

In summary, the following are the long term goals and strategic objectives of BSA:

·         To ensure that all partners across government, the private sector and civil society are aligned behind nation brand in terms of corporate identity, behaviours, messaging and imaging;

·         To contribute to increased pride and patriotism, active citizenship and social cohesion;

·         To monitor nation brand performance on global competitiveness and to inform target audiences, and policy development processes, with regard to the country’s policies that impact on it’s competitiveness;

·         To inform and influence conversations and perceptions about South Africa by global and local audiences and proactively manage the ‘narrative’ by enhancing success stories and achievements and communicating the national vision and plan;

·         To collaborate with partners and leverage each other’s resources to extend brand and messaging reach and impact in a cost effective manner; and

·         To ensure sound governance, compliance, human capital and risk management systems to ensure the long-term sustainability of the organisation.

2.2       Outcome-Based Approach

2.2.1       Delivery agreement targets for 2012/13

BSA’s mandate relative to South Africa’s needs is to build the nation brand reputation in order to improve the country’s global competitiveness and is fulfilled by three-core programmes [2] (Administration (1); Brand Strategy Development and management(2); and Reputation Management(3)) achieved through six strategic outcomes which are:

·         Brand strategy development and management;

·         Reputation management;

·         Brand knowledge management and performance management;

·         Organisational development ;

·         Stakeholder and partner alignment and integration; and

·         Prudent financial management and control.

In addition, BSA’s 2012/13 business plan identified clear target markets briefed by a further five (5) key components; (a) The long-term market potential; (b) South Africa’s ability to compete effectively in the market; (c) the scope and nature of market access; (d) the country’s importance relative to others as a source of investment as well as, (e) the interest of South African private sector in those markets. [3]

2.3       Organisational Environment

The IMC was established in 2002 to develop and implement a proactive and coordinated international marketing and communication strategy for South Africa to contribute to job creation and poverty reduction, and to attract inward investment, trade and tourism.

BSA is a subprogramme (programme 4) under Budget Vote 1 of the Presidency and under Minister Collins Chabane and it is the only entity of the Presidency reporting to the Committee.

3        Summary of previous key financial and performance recommendations of Committee

3.1       2011/12 BRRR Recommendations

3.1.1       Summary of key financial and non-financial performance recommendations made by Committee

Having assessed the performance of BSA in 2011/12, the Committee recommended that the Minister should:

(i)      look into the issue of bloated structure of non-executive directors at BSA;

(ii)     ensure compliance with the 2 per cent requirement of employing people living with disabilities; and

(iii)    ensure that BSA prioritises the marketing of the country as an investment destination.

3.2       2013/14 Committee Budget Report

Although the Committee was satisfied with BSA’s Strategic Plan 2013 – 2017; APP for 2013 – 2014; and accordingly supported its implementation; the Committee did recommend that the Minister should ensure:

·         equal focus on promoting BSA to South Africans;

·         that in future BSA’s Strategic Plan contains a detailed report on the mitigation of identified risks;

·         that the Executive Authority furnishes the Committee with a clearly defined strategy on the reasons behind the high number of Directors on the BSA Board;

·         BSA arranges a workshop with the members of the Committee to engage on its programmes and activities to enable members to become brand ambassadors in their respective constituencies; and

·         BSA urgently fills all funded vacant posts.

4        Overview and assessment of financial performance

4.1       Overview of Vote Allocation and Spending (2009/10 2014/15)

	2009/10 (‘000)	2010/11 (‘000)	2011/12 (‘000)	2012/13 (‘000)	2013/14(‘000)	2014/15(‘000)
	Final Appropriation	Final Appropriation	Final Appropriation	Final Appropriation	Estimates	Estimates
Total	161.4	170.1	140.1	154.8	160.4	167.7

The table above seeks to provide an overview of budget allocation and forecast estimate patterns of the BSA. The budget for BSA for the coming years is set to increase mainly because of inflation-related adjustments. Therefore BSA’s total budget for 2013/14 is R160.4 million.

Transfer and subsidies accounts for the largest share of the Presidency’s budget by R540.9 million or 50.8 per cent due to the transfers to departmental agencies (namely National Youth Development Agency (NYDA) and BSA). The spending focus for the Presidency over the medium term was on making transfers to BSA to among others develop and implement an international marketing and communications strategy for South Africa to contribute to job creation and poverty reduction, and attract investment, trade and tourism. Overall, BSA received all funds allocated in line with the medium term expenditure framework. The baseline funding from the Presidency increased by six(6.2) per cent from R140 million during the 2011/12 financial year to R148.8 million for the 2012/13 financial year. An additional amount above the baseline of R6 million was received from the Presidency for the 2013 African Cup of Nations (AFCON) campaign.

Over the five year review period, with the exception of 2011/12 where there was a considerable drop in financial allocation, there is a steady increase in government funding for BSA, with the year 2012/13 totalling an allocated budget of R154.8 million. This is a considerable increase from the R140.1 million of the 2011/2012 funding allocation, see Graph 1 below. There is yet another increase to R160.4 million for the financial year 2013/14 and R167.7 million for the financial year 2014/15.Increased funding will ensure South Africa a destination of choice while promoting social cohesion.

Graph 1

4.2       Financial Performance

4.2.1       Quarterly Spending Trends

4.2.1.1      First Quarter Financial Performance 2012/13

BSA’sexpenditure was R40 million, or 26.9 per cent of the available budget of R154.8 million. Planned expenditure is equal to the actual expenditure and this is commendable.

4.2.1.2      Second Quarter Financial Performance 2012/13

Expenditure of BSA was R77.4 million, or 50 per cent of the available budget of R154.8 million. Planned expenditure was R77.4 million so the entity is in line with the projected expenditure.

4.2.1.3      Third Quarter Financial Performance 2012/13

Expenditure for BSA was R113.8 million, or 73.5 per cent of the available budget of R154.8 million. Planned expenditure was R119.8 million so the entity was behind by R6 million. This is primarily due to funds allocated during adjustment estimates that were not transferred to the entity because of delays in submission of the compliance documentation by the entity. These issues have persisted for only one month.

4.2.1.4      Fourth Quarter Financial Performance 2012/13

Expenditure for BSA was R154.8 million, or 100 per cent of the available budget of R154.8 million.

4.2.2       Summary

There is substantial evidence that shows the effectiveness and efficiency of BSA in terms of its allocated budget versus expenditure. It is evident that BSA has been consistent in spending all allocated budget within the quarters with the exception of quarter 3 where it spent slightly less than the expected expenditure. However, the entity is evidently on par with spending of its financial allocation having spent all its allocation by end of financial year. This is a commendable feat when considering the responsibility of the entity in relation to its mandate.

4.3       Adjustments 2012/13

Adjustments are listed under the Budget Vote 1 of the Presidency. It is important to note that because BSA is a programme of the Presidency and under Budget Vote 1, it is difficult if not impossible to analyse its programmes in isolation of the Presidency, hence the limited information to unpack its programmes.

4.4       Final Total and Programme Expenditure

According to the Presidency annual report, programme 4 (BSA) expenditure was R154.8 million, or 100 per cent of the available budget of R154.8 million by end of financial year 2012/13. This is one of two programmes (the other being programme 3 - NYDA), of the Presidency that have managed to spend the budget as per allocation, see Graph 2.

Graph 2

4.5       Auditor-General (AG) Report:

BSA achieved an unqualified report during the year under review. The financial statements present fairly, in all material respects, the financial position of BSA as at 31 March 2013, and its financial performance and cash flows for the year then ended in accordance with the SA Standards of GRAP and the requirements of the Public Finance Management Act (PFMA).

4.5.1       Predetermined objectives

BSA obtained three unqualified reports for the 2010/11, 2011/12 and 2012/13 financial years.

4.5.2       Irregular, fruitless, wasteful and unauthorised expenditure

BSA obtained three unqualified reports for the 2010/11, 2011/12 and 2012/13 financial years. At the same time, the entity also incurred irregular expenditure amounting to R11. 9 million and fruitless and wasteful expenditure of R1. 35 million over the last three year periods. [4] However, it must be noted from these above figures, for instance, that all amounts have accrued from the 2010/11 financial year till this financial year.

During the 2012/13 financial year alone, the entity incurred R12 million in irregular expenditure of which R 5. 6 million has been condoned. The amount incurred is higher than the R3. 3 million incurred as irregular expenditure in the 2011/12 financial year.

In the past three financial years, R132 million has been incurred as fruitless and wasteful expenditure by BSA, it should be borne in mind that for the 2012/13 financial year, the entity only incurred R354 000 with regards to fruitless and wasteful and unauthorised expenditure, compared to R209 000 in the previous financial year.

Worryingly, however, is that, while the entity has improved in the amount recorded as fruitless and wasteful expenditure in each of the preceding financial years from the amount incurred in 2010/11, it has nevertheless slightly regressed on this achievement when the current financial year is compared and analysed to the 2011/12 financial year.

Table 2: Irregular, fruitless, wasteful and unauthorised expenditure

Year Incurred	Irregular Expenditure R’000	Fruitless and wasteful expenditure R’000
2010/11	R 786 264	R  751 433
2011/12	R 406 1850	R 209 807
2012/13	R10 738 795	R 354 037

Source: BSA (2010/11-2012/13)

In addition to irregular, fruitless and wasteful expenditure, the AG has also emphasised other recurring matters in his report to BSA and these include:

· Non-compliance with legislation – Financial statements submitted for auditing were not prepared in accordance with the prescribed  financial reporting framework and supported by full proper records as per section 55(1)(a) of the PFMA. Similarly in the previous financial years the AG raised the issues of non-compliance with laws and regulations. For instance, policies and procedures were not adhered to and as a result, instances of non-compliances with PMFA were noted as detailed in compliance with laws and regulations (2010/11).

In addition, the Auditor-General identified the following internal control deficiencies:

· Leadership – Management did not exercise adequate oversight responsibility regarding compliance with laws and regulations(2011/12; and 2012/13 financial years);

· Expenditure management- steps taken by the accounting authority in the 2009/10 financial year to resolve a contract were unsuccessful causing fruitless and wasteful expenditure to be incurred (2010/11). Similarly, in both financial years, 2011/12 and 2012/13, the accounting authority did not take effective steps to prevent irregular expenditure and fruitless and wasteful expenditure, as per section 51(1)(b) of the PFMA;

· Procurement and contract management -(2011/12)quotations were awarded to suppliers whose tax certificate matters had not  been cleared by the South African Revenue Services (SARS) and were not in order as required by Treasury Regulations (TRs) 16A9.1(d) and the Preferential Procurement Regulations (PPR);

·         Contracts were awarded to bidders who did not submit a declaration of past supply chain practices such as fraud, abuse of SCM system and non-performance, which is prescribed in order to comply with TRs 16A9.1;

·         The preference system was not applied in all procurement of goods and services above R30 000 as required by Section 2(a) of the Preferential Procurement Policy Framework Act (PPPFA) and TRs 16A6.3(b);

·         Contracts were awarded to bidders based on preference points that were not allocated and calculated in accordance  with the requirement of the PPPFA and its regulations; similarly in the2012/13 financial year the following deficiencies were also identified;

·         Bid adjudication was not always performed by committees which were composed in accordance with policies of the BSA, as required by TRs; and

·         Contracts were awarded to bidders based on points given for criteria that differed from those stipulated in the original invitation for bidding, in contravention of TRs 1616.3(a) and PPR.

4.5.3       Financial and Performance Management

The accounting officer did not always review and monitor compliance with applicable laws and regulations in (2012/13), 2011/12 and in 2010/11 financial years.

4.6       Financial Performance 2013/14

4.6.1       Quarterly Spending Trends

During this quarter BSA has spent 26.9 per cent of its allocated budget from The Presidency, a promising indication that its well on course to spend its budget accordingly as is the case during 2012/13 financial years, see Table below:

4.7       2014/15 MTEF Financial Allocations

As mentioned earlier in this section, BSA falls within the budget vote of the Presidency which states that NYDA and BSA total expenditure should not exceed R578.9 million in 2014/15 and R601.5 million in 2015/16.

5        Overview and assessment of service delivery performance

5.1       Service Delivery Performance for 2012/13

5.1.1       Targets based on APP

An audit of the planned targets for the 2012/13 financial year indicates that BSA had a total of 171 targets and over 30 targets on projects opportunities that it participated on, through working with other stakeholders in government. This means that BSA achieved 106 or 63 per cent of the total of 171 planned targets, which is followed by 21 or 12.3 per cent of partially-achieved targets, and a total of 43 or 25 per cent of the targets that were not achieved during the current financial year.  In the previous financial year, the total number of planned targets was71 of which 54 were achieved. The decline in achievements of targets can be attributed to staff complement on delivery of the targets. However, an overall 81.8 per cent achievement of performance activities to date based on reporting by BSA is commendable and is proof that the organisation is developing a strong operational foundation in its policies, governance and information technology security environments.

5.1.1.1      Some broad highlights during this financial year include:

·         Closer co-operation was forged with BSA’s government partners and other stakeholders;

·         President Jacob Zuma appointed new members to the BSA Board of Trustees;

·         First year BSA reported directly to the Presidency; and

·         ‘Inspiring New Ways’, BSA’s new slogan, was launched.

5.1.2       Overall Service Delivery Performance

5.1.2.1      Increased support for reputation management

·         Team South Africa’s performance at the London Olympics proved to be a wonderful reputation enhancer;

·         The United Kingdom (UK) and the United States of America (USA) country offices did extensive work to offset the impact on South Africa’s image by the Marikana and other high profile incidents; and

·         Strengthening of the Global South Africans (GSA) programme.

5.1.2.2      Enhanced technology approach

·         The past year also saw the launch of Brand South Africa’s App, which is an all-in-one official information gateway to South Africa, boasting comprehensive country information for investors, tourists, citizens and South Africans abroad.

5.1.2.3      Becoming a destination of choice

§  South Africa proved it is a destination of choice for major sporting events by hosting the successful 2013 AFCON in February; and

§  Another boost for the country’s reputation came with the announcement that South Africa was chosen to host the greater part of the €1.5 billion international Square Kilometre Array (SKA) radio telescope.

5.1.2.4      South Africa improved its global competitiveness

• Improved its overall ranking and performance from 52nd to 50th according to the Institute for Management Development Global Competitiveness Report 2012/13:
• The country has been ranked 36th out of 50 countries in the Anholt-GfK Roper Nation Brand Index for the past two years; and
• 3rd best performing BRICS country on the Global competitiveness Report.
• Investor Perception survey highlights the headway being made by South Africa in positioning itself as a diverse and exciting investment destination;
• Ranked fifth overall in the Ibrahim Index of African Governance; and
• Quarterly media tours were held, exposing the international press to South Africa's business environment, as well as its regulatory and policy systems, in a bid to boost positive press coverage abroad.

5.2       Concluding Comments on Service Delivery Performance

To lead the global and domestic marketing of the nations’ brand is a complex task given the diversity of the target market. A brand of a nation gives instant value, credibility, reliability and reassurance to all stakeholders despite the constraints to the growth of our economy brought about by the unstable global economic outlook of recent years.

Through the work of BSA, South Africa remains well-positioned to weather the global storm, boasting a large economy that is widely recognised as having solid fundamental and sound effective financial systems and has remained as a top-performing, globally competitive developing nation. As such, the improvement in international rankings is a testament of BSA’s work to consolidate South Africa’s position by leveraging on opportunities presented by its involvement in platforms such as the G-20, BRICS, Southern African Development Community (SADC), African Union (AU) and New Partnership for Africa’s Development (NEPAD). The hosting of major events is also another testament of the trust and belief in BSA and the sterling work they do on behalf of South Africa.

As a mechanism to drive social cohesion and create a unified South Africa, BSA strives to strengthen its partnerships will all its stakeholders from government, to civil society, business and individuals. And BSA has done tremendous work based on its programmes such as ‘Play Your Part’ to ensure that all citizens play an active role to move the country towards a 2030 vision.

Lastly, BSA has managed to perform satisfactory despite a limited budget which is a concern when measured against its mandate and delivery of the business plan.

6        Finance and Service delivery performance assessment

Strategic Outcome 1: Brand alignment by stakeholder - Ensuring all partners across government, the private sector and civil society are aligned behind the nation brand in terms of corporate identity, messaging and imaging.

The National Brand Strategy driven and monitored under the Presidency formed an integral part of BSA and the coordination of all different role players, government, business and civil society was critical in achieving this outcome even though BSA does not have line authority to enforce compliance with the brand framework.

Strategic Outcome 2: Increased pride and patriotism amongst South Africans - Alignment of behaviour to the brand value to build pride and patriotism, entrench South African-ness to unite and mobilise the nation to promote active citizenship and contribute to social cohesion.

BSA subscribes to the annual National Perceptions Audit conducted by Kuper Research to understand how South Africans view themselves and the country. This research takes in to account various issues such as class mobility, inter-generational mobility and related social perceptions.

For example, in terms of social cohesion, 52 per cent of people identified themselves as South Africans which is a positive indication that the Apartheid boxes that once defined and identified individuals along racial lines is slowly disintegrating. In terms of cultural coexistence, 81 per cent agree that Black and White people in South Africa need each other to survive and prosper.

Strategic Outcome 3: An articulated and contextualised South African policy - Communicating policy positions, providing context and rationale. Informing and influencing stakeholders and target audience about South Africa’s policies that impacts on factors of competitiveness.

BSA increased coverage in the following markets: France, DRC, China and the UK. Furthermore, it increased reporting on business and political pillars across all markets due to BRICS Summit. In addition, Project Thrive International Investor Perception study conducted by BSA indicates a substantial increase in the country seen as a business destination by international investors.

Strategic Outcome 4: Positive perceptions about South Africa amongst the target audiences - influencing conversations and perceptions about South Africa through global and local audiences and proactively managing the narrative enhancing success stories and achievements.

BSA research tracks a wide range of competitiveness reputation, and related global studies and indices in order to monitor and evaluate country performance. These reports are subsequently supplemented by BSA commissioned research projects. BSA further convenes Research Reference Groups that reflect on; provide BSA with expert input and advice on key issues of concern. Through this process, an analysis of indicators that show South Africa as a top-performing globally competitive developing nation has been reported by BSA in this financial year.

For example, BSA worked hard to improve South Africa’s global reputation and to position the country as an investment destination of choice and trade partner with particular emphasis on South Africa being open to new global business. Highlights include South Africa’s’ ranking at 15 globally for Quality of Air Transport Infrastructure by the World Economic Forums’ Competitiveness Report. Further, when compared to its BRICS counterparts, South Africa came first in five of the ten criteria the World Bank uses to assess ease of doing business.

Strategic Outcome 5: A sustainable organisation - collaborating with partners to leverage each other’s resources to extend the brand and messaging reach and impacts in a cost effective manner. Implementation of governance, compliance and risk management system to enable the organisation to respond to its political, economical, social and environmental demands.

One of BSA’s key priorities is consistent messaging, which applies to South Africa’s corporate identity and to its imaging, behaviours and values. All of these impact on South Africa’s global competitiveness, its international reputation and its brand equity. In line with this, BSA developed a Corporate Identity Manual during the year and continued its training to ensure that all stakeholders have the identical approach to South Africa’s corporate identity. The positive and compelling brand image for South Africa, both domestically and internationally drives strategic opportunities for trade and tourism; hence the launch of BSA’s new payoff line “Inspiring New Ways” was extremely successful recording good reception and coverage on all media platforms.

7        COMMITTEES Observations and response

7.1       Governance and Operational Issues

The Committee noted no changes in terms of the bloated structure of non-executive directors at BSA.

8        Recommendations

The Committee recommends that the Minister should ensure that:

i.        there is equal focus on promoting BSA to South Africans;

ii.        in future BSA’s Strategic Plan contains a detailed report on the mitigation of identified risks;

iii.        the Committee is furnished with a clearly defined strategy on the reasons behind the high number of Directors on the BSA Board;

iv.        BSA arranges a workshop with the members of the Committee to engage on its programmes and activities to enable members to become brand ambassadors in their respective constituencies;

v.        BSA urgently fills all funded vacant posts;

vi.        there is compliance with the 2 per cent requirement of employing people living with disabilities; and

vii.        BSA prioritises the marketing of the country as an investment destination.

9        Appreciation

The Committee would like to thank the Minister in the Presidency, Mr Collins Chabane and his Deputy, Mr Obed Bapela, as well as the Acting Chief Executive Officer, Mr Miller M Matola, and the Board Members and Board of Trustees of BSA, Executive Management and staff of BSA and The Presidency. The Committee also wishes to thank its committee support staff, Committee Secretaries, Mr Thembinkosi Ngoma and Ms Teboho Sepanya, the Researcher, Mr Sandile Nene, the Content Advisor, Mr Mbombo Maleka and the Committee Assistant, Mr Edward Vos, for their professional support, commitment and dedication to their work. The Chairperson wishes to thank all the Members of the Committee for their active participation during the process of engagement and deliberations and their constructive recommendations reflected in this report.

Report to be considered.

10     Glossary of Terms

AFCON	African Cup of Nations
AG	Auditor-General
APP	Annual Performance Plan
AU	African Union
BRICS	Brazil, Russia, India, China and South Africa
BSA	Brand South Africa
DRC	Democratic Republic of Congo
ENE	Estimates of National Expenditure
IMC	International Marketing Council
NDP	National Development Plan
NYDA	National Youth Development Agency
MTBPS	Medium Term Budget Policy Strategy
MTEF	Medium Term Expenditure Framework
PFMA	Public Finance Management Act
PPPFA	Preferential Procurement Policy Framework Act
PPR	Preferential Procurement Policy
SADC	Southern African Development Community
SCM	Supply  Chain Management
SCOA	Standing Committee on Appropriations
SoNA	State-of-the-Nation Address
SKA	Square Kilometre Array
TR	Treasury Regulations
UK	United Kingdom
USA	United States of America

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[1] Chabane, OHM, C (2013).

[2] These are Administration; Brand Strategy Development and management; and Reputation Management

[3] Brand South Africa(2013) Annual Reports, pg 18

[4] Brand South Africa(2011);  Brand South Africa(2012); and Brand South Africa(2013) Annual Reports