ATC140711: Joint Report of the Portfolio Committees on Communications and on Telecommunications and Postal Services on their deliberations on Brand South Africa (Programme 4 in Budget Vote 1: The Presidency), dated 11 July 2014
Sport, Arts and Culture
Joint Report of the Portfolio Committees on Communications and on
Telecommunications and Postal Services on their deliberations on Brand South
Africa (Programme 4 in Budget Vote 1: The Presidency), dated 11 July 2014
The
Portfolio Committees on Communications and on Telecommunications and Postal
Services, having considered the strategic plan of Brand South Africa (BSA),
report as follows:
1.
Introduction
Section 55(2) of the
Constitution of the Republic of South Africa, Act 108 of 1996, states that the
National Assembly must provide for mechanisms (a) to ensure that all executive
organs of state in the national sphere of government are accountable to it; and
(b) to maintain oversight of (i) the exercise of national executive authority
including the implementation of legislation; and (ii) any organ of state. In
terms of the Public Finance Management Act, 1999, the Accounting Officers must
provide Parliament or the relevant legislature with their respective
institutions medium-term strategic plan and where applicable with its annual
performance.
The
Money Bills Amendment Procedure and Related Matters
Act was promulgated in 2009, by which it vests powers to Parliament to reject
or recommend budgets of departments, it also makes provision for the
implementation of recommendations emanating from the Committees oversight.
The aim of the report is to
provide an overview of the 2014/15 Budget and Annual Performance Plan (APP) of
BSA who appeared before the Committee on 8 July 2014.
Their strategic plan was
referred to the Portfolio Committee on Communications for consideration and
report in the Announcements, Tablings and Committee Reports (ATC) Parliamentary
Paper on Friday, 27 June 2014.
2.
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 National Development Plan.
Although some analysts may
argue that the 2014
SoNA
did not make any unswerving
pronouncements on BSA, the articulation by the President can also be used to
highlight BSAs 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.
3.
Brand South Africa (BSA)
R
167
686
000
Brand South Africa (BSA) is a Schedule 3A Public Entity registered as a
Trust. The Accounting Authority is the Board of Trustees contemplated in
section 49 of the PFMA, and the Trustees are appointed by the President of the
Republic through the Executive Authority.
It is constituted as a Trust, and is therefore also subject to
the Trust Property Control Act.
BSA, as an umbrella organisation is the custodian of the national brand
and its work is derived from South Africas national objectives of Gross
Domestic Product (GDP), job creation, poverty reduction and social cohesion as
informed by the Constitution, the National Development Plan (NDP), and the
countrys International Relations Strategy. In discharging its mandate, BSA
operates as part of a networked of agencies and departments whose role is
ultimately to market and promote various aspects of South Africa; either
domestically or abroad.
Its purpose is 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 was transferred
to The Presidency during the 2011/12 financial year after it had applied and
was granted permission to change its name from IMC to BSA. BSA now falls under
Programme 4 of Budget Vote 1: The Presidency.
When the then International Marketing Council changed its
name to Brand South Africa, the shift in mandate moved the organisations focus
from only pursuing a positive and compelling brand image for the country to
building South Africas nation brand reputation to improve the countrys global
competitiveness.
Brand South Africa is 31
st
in the world in terms of overall
brand value, and has seen steady improvement in the quality of its air
transport rankings in the Brand Strength Index, a key area for further
development of its inbound tourism.
Programme 4
of Budget Vote 1
facilitates the transfer of funds
to BSA (as a sub-programme) for the agency to develop and implement a proactive
marketing and communication strategy for South Africa to contribute to job
creation and poverty reduction aimed at promoting South Africa and increasing
the familiarity and knowledge of South Africa as a visible, world class and
profitable business destination in targeted international trade, investment and
tourism markets.
The sub-programmes total budget is
transferred in full to Brand South Africa.
3.1
Objectives
-
Oversee the
implementation of a proactive branding, marketing and communication
strategy for South Africa by transferring funds to Brand South Africa for
the development of a branding framework and programme over the medium
term; and
-
Oversee the work
of Brand South Africa by analysing its strategic and annual performance
plans and quarterly reports on an ongoing basis.
The organisations strategic goals over the
medium term are to:
-
develop and
articulate the value proposition and positioning that will drive the long
term reputation of Brand South Africa
-
develop and
implement proactive and coordinated marketing communications and
reputation management strategies for South Africa
-
build awareness
of South Africa and the image of the nation brand in other countries
-
build patriotic
pride, positive citizenship and unity among South African by encouraging
citizens to live the values of the national brand and identify as South
Africans
-
increase South
Africas global competitiveness by developing symbiotic partnerships with
all stakeholders who can enhance the national brand and helping them to
enhance the countrys reputation
-
strengthen
institutional capacity and systems to
effectively ensure the long term sustainability of the organisation.
3.2
Programmes
BSA has the following
programmes:
3.2.1
Programme 1:
Administration R63 817 000
The purpose of this
programme is to achieve organisational sustainability as defined in the King
III report.
It is managed internally via
two divisions. The Corporate Services division manages planning and reporting,
board secretariat, human resources, information technology and the legal
functions. The Finance division manages budgeting, financial management,
payroll and supply chain management.
3.2.2
Programme 2: Brand
Strategy Development and Management - R44 827 000
The purpose of this
programme is to continue seeding the new positioning, inspiring new ways, to
all South African (local markets) and in key global markets to drive the
competitiveness of South Africa.
3.3.3
Reputation Management R59
042 000
The purpose of this
programme is to provide a positive disposition about South Africa amongst
target audiences, domestically and internationally by implementing a domestic
reputation management programme as well as an international reputation
management programmes specific to targeted markets. It is also to leverage from
strategic platforms while developing strategic partnerships with targeted
diplomatic corporations.
4.
Progress
made on the recommendations of the Committee in its 2012/13 Budgetary Review
and Recommendation Report (BRRR)
The Committee noted: (i)
that BSA has made progress in appointing people with disabilities; and (ii) the
improvement in the marketing of South Africa as a destination for investment in
its 2013/14 Strategic Plan.
5.
Expenditure Trends
Brand South Africa derives revenue mostly
from transfers from The Presidency, investment income and a once-off grant of
R6 million in 2012/13 for the Africa Cup of Nations tournament.
Funded mostly through a transfer from The
Presidency, the spending focus over the medium term will be on aligning the
organisations objectives, activities and interventions with the national
development plan through four broad strategic objectives: reputation
management, brand strategy and development, administrative support, and capital
expenditure. To achieve these objectives, the organisation will focus on
building awareness and promoting a positive image of the South African brand
domestically and internationally through various activities, such as promoting
active citizenship through a campaign called Play Your Part, training key
stakeholders on branding, promoting the countrys long term policies, and
accessing the media to communicate the countrys competitiveness and business
opportunities. Through its reputation management programme, the organisation
will increase the countrys international media reputation index to a range of
between 50 and 55 over the medium term.
Expenditure over the medium term will
increase due to the hosting of the inaugural South African competitiveness
forum, the development of the brand ambassador programme, and the acquisition
of additional office space. The brand ambassador programme is designed to
market South Africa and communicate the countrys development strategies and
programmes to the international community.
In 2013/14, BSA
commissioned a study of perceptions held of the country by South Africans
living abroad. The study was to inform the development of a brand monitoring
and reputation management tool. The entity is currently conducting a review of
the corporate identity manual and will provide stakeholder training on key
aspects of the manual. The study and the review are expected to increase
spending on consultants, travel and subsistence, communication, marketing,
printing, stationery and training over the medium term.
In addition, expenditure over the medium term
will increase due to the hosting of the inaugural South African competitiveness
forum, the development of the brand ambassador programme, and the acquisition
of additional office space. The brand ambassador programme is designed to
market South Africa and communication the countrys development strategies and
programmes to the international community.
Lastly as at 30 November 2013, the entity had
a funded establishment of 44 posts of which 7 were vacant due to resignations
and delays in the recruitment process. Currently, the entity is evaluating its
organisational structure to inform future appointments.
6.
Observations
The Committee noted: (i)
the number of Board members is determined by the President and therefore BSA
management is not in a position to influence this decision of an inflated
Board; (ii) the Board is however reviewing the number of Board members in
consultation with the President as a means to find efficient ways of operating;
(iii) it is BSAs role to bridge the gap between perception and reality in
relation to how people, locally and internationally perceive the performance of
South Africa; (iv) compliance in content development and distribution is
critical while branding is a complex issue that necessitates a broad consensus
with various stakeholders, and therefore takes time to achieve a uniform brand
for a country; (v) Programmes of the BSA are based on empirical research
conducted by the Agency; and (vi) Potential versus capability is a process
and that the Alive with possibilities slogan demonstrates the potential while
Inspiring new ways is a slogan based on market research that reflects the
progress path of South Africa.
7.
Recommendations
The Committee recommends
that:
a)
there
should be an equal focus, if not more, on promoting BSA to South Africans;
b)
BSA should
arrange a workshop with Members of the Parliament to engage on its programmes
and activities to enable members to become brand ambassadors in their
respective constituencies;
c)
BSA must
urgently fill all funded vacant posts; and
d)
BSA must
present data to the Committee that indicates how it has achieved a return on
investment for the allocated R167 million.
The Committee supports the
Strategic Plan and Budget for 2014-2019 of BSA and recommends that it be
approved.
The Democratic Alliance and
the Economic Freedom Fighters reserved their position on the report.
Report to be considered.
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