SOUTH AFRICA’S NATIONAL

DEVELOPMENT PLAN (NDP)

A COMPELLING BLUEPRINT FOR

THE FUTURE

kpmg.co.za

At the national conference of the ruling party held at Manguang from 16 to 20 December 2012, the ANC issued a draft declaration where the following was said about the NDP, We engaged in vigorous and searching debates on the persistence of the legacy of apartheid colonialism, reflected in the triple challenges of poverty, inequality and unemployment. Responding to these challenges, we are boldly entering the second phase of the transition from apartheid colonialism to a national democratic society. This phase will be characterised by decisive action to effect economic transformation and democratic consolidation, critical both to improve the quality of life of all South Africans and to promote nation building and social cohesion. Consequently, in pursuance of these objectives, we embraced Vision 2030 and the National Development Plan as a platform for united action by all South Africans to eradicate poverty, create full employment and reduce inequality as critical building blocks towards a truly united, non-racial, non-sexist, democratic and prosperous society (source: www.npconline.co.za).

KPMG shares this vision for South Africa and all her people, and is

fully committed to the goals of the NDP. We commend the outstanding

work already done by the National Planning Commission (NPC), and

the NDP itself that has emerged as a result of an inclusive, robust process

of engagement. The insights are self-evident and the NDP gives us

an outstanding framework to now all work with.

SOUTH AFRICA’S NATIONAL DEVELOPMENT PLAN

THERE IS A COMPELLING RELEVANCE IN THIS FOR THE BRICSSouth Africa has already shown the world unprecedented leadership and common purpose in achieving a political democracy – constructively and peacefully. There is now the opportunity – and pressure – to achieve a truly functional and sustainable economic and therefore ultimately social democracy.

As an association of emerging national economies, the BRICS are uniquely globally positioned by their large, fast-growing economies. Through this, each has a significant influence and effect on regional and global affairs. This is even more apparent in the case of South Africa (referred to by the ‘S’ in the BRICS) where the representation is de facto more about an Africa-wide perspective than simply South Africa as a single nation. As such, it goes without saying how important it is to the success of the BRICS and Africa that South Africa continues to succeed. The NDP, as the agreed anchor mechanism to achieve South Africa’s Vision 2030, is absolutely central to this.

Of course, the political perspective is only part of the story. The economic realities are even more compelling – ie, the desire to have a prosperous nation, with equality – and to get there the business investment opportunities are practically endless. Therefore, while the NDP is very much South African focused, it should be useful and of interest to other countries wanting to do business with (or through) South Africa. It talks very much to where we’re going as a nation and invites a number of areas for potential collaboration / co-operation.

It is in this specific context of the BRICS Summit 2013 taking place in Durban, South Africa, that we have prepared this brief document. For some, it may be your first exposure to South Africa’s NDP. For others, you may be a co-architect of the NDP itself, now driving it forward. And, of course, many inbetween. For everybody, we hope that you will find use in this document, explicitly within the context of everything that you’re thinking about regarding taking the BRICS forward, at this milestone juncture.

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THE DIAGNOSTIC

A BRIEF SUMMARY OF THE NDP

Moving from a current reality of poverty and inequality to a nation with a future secured by prosperity and equity, the NDP presents a compelling blueprint for action. As South Africans – and anyone with an interest in South Africa – it’s our future and it’s up to all of us to make it work. This is very much about Government, business, labour and civil society working together.

While it is almost impossible to do justice to the whole NDP in just a picture or a few words, the following graphic and table present a useful summary of the founding diagnostic and the plan.

A COMPELLING BLUEPRINT FOR THE FUTURE

KPMG IS PROUD TO BE ON THIS JOURNEYAt KPMG, we believe that we can make the most meaningful contribution to the NDP by continuing to focus on:

•The business community and related issues

• The relationship between business and Government

• Influencing our own people and networks to galvanise them into action.

We are therefore working with Business Leadership South Africa (BLSA) and our prominent stakeholder network to ensure that our contribution is wider than a KPMG perspective alone.

To this end, on 7 March 2012, working with BLSA and leveraging the highly valued interest and support of the NPC, KPMG facilitated a robust discussion with several business leaders around a business response to the National Development Plan. Bobby Godsell, Chairman of BLSA and a member of the NPC, was a key panellist in this discussion. To guide the process, KPMG prepared a comprehensive summary document which was widely circulated – drawing on the NPC’s own communications and sharing our observations in summarising the context, key challenges and plans for achieving Vision 2030. This culminated in a formal submission, on behalf of business, to the National Planning Commission in May 2012.

This document summarised principal possible contributions from business to achieving Vision 2030, as well as various caveats, insights and other observations around the Plan. Copies of both of these documents are available on request from KPMG.

And the journey continues... On 11 April 2013, KPMG is hosting a significant BLSA event focused on the BLSA Working Group on the NDP.

OUTCOMES FOCUS AREAS PRIORITIES There is a real opportunity to build a stronger economy, eliminate poverty and reduce inequality

National Development Plan

Building the country we want needs the efforts of all

Bobby Godsell (Chairman of Business Leadership South Africa and a member of the NPC) Business Day, 14 March 2013

•Economy and Employment

•Economic infrastructure

• Environmental sustainability and resilience

• Inclusive rural economy

• South Africa in the region and the world

• Transforming Human Settlements

• Improving education, training and innovation

• Health care for all

• Social protection

• Building Safer Communities

• Building a capable and developmental state

• Fighting corruption

• Nation building and social cohesion

While the achievement of the objectives of the National Development Plan requires progress on a broad front, three priorities stand out:

•Raising employment through faster economic growth.

• Improving the quality of education, skills development and innovation.

•Building the capability of the state to play a developmental, transformative role.

President Jacob Zuma Handover of the National Development Plan during the Joint Sitting of Parliament, August 2012

There are excellent resources prepared by the National Planning Commission explaining all of this, from succinct summaries and visual representations to the detailed plan itself. You are invited to refer to, among others:

Planning for Thandi’s future – Diagnostic Report – National Planning Commission (NPC)

Our Future, Our plan, Speak out! – NPC

www.npconline.co.za

SOUTH AFRICA’S NATIONAL DEVELOPMENT PLAN

FROM WORDS TO ACTIONIt is widely acknowledged that the NDP, as powerful a document as it is, currently best describes an intent without a clear plan yet that is practically capable of timely implementation. The need for this plan implies resolution of a number of strategic discussions, including prioritisation (specifically in terms of resource allocation and inter-dependencies), funding and ownership (accountability).

There are clearly two sides to the same coin – ie, the need to:

•Capacitate the State to enable delivery (being referred to as ‘fixing the engine room’), at all levels of Government

• Mobilise every South African to collectively own, actively participate in and enjoy the fruits of the NDP.

The strength of South Africa’s Constitution is globally acknowledged and something to be truly proud of. This has had such an impact on all South Africans that it has become part of our vocabulary. There is widespread knowledge of it and it is referred to in multiple contexts, with deep respect, across our society. As a nation, we need to get the NDP to the same level of awareness – where every South African realises that whatever they’re doing positively around any of the thirteen specific focus areas, working towards achieving overall prosperity and equality for all, they are in fact supporting the NDP and bringing us all that much closer to achieving Vision 2030. We need to be thinking, talking and acting on the NDP and its underlying premise – addressing the current legacy of poverty and inequality – in everything that we do.

MOVING FORWARDIf you would like to find out more, or want to give us feedback on your thoughts as to an even stronger role that we can play at KPMG in support of the NDP, please let us know.

Through our global network, and direct interest in and support of the BRICS, we would also be delighted to further contribute to the whole opportunity of the development of an appropriate BRICS Development Plan – increasingly seen as a fundamental enabler to the success of the BRICS, which the world is looking to. As opined in a thought provoking article by Kuseni Dlamini on IOL news (www.iol.co.za), a BRICS Development Plan – as we have seen with the South African NDP – “will be a necessary starting point for strategic conversations between business, government, labour and organs of civil society.”

To share your next part of the strategic conversation and call to action with KPMG, you are invited to contact MOSES KGOSANA (Chief Executive, KPMG in South Africa, and Senior Partner, KPMG Africa) or TSHIDI MOKGABUDI (Chairperson, KPMG Advisory and the senior partner responsible for KPMG’s support of the NDP) directly. Their contact details are given below.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

© 2013 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in South Africa. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

The opinions of the authors are not necessarily the opinions of KPMG. MC10044

We look forward to sharing the future with you!

CONTACT DETAILS:MOSES KGOSANA +27 (0)84 647 8012 moses.kgosana@kpmg.co.za

TSHIDI MOKGABUDI +27 (0)82 719 0624 tshidi.mokgabudi@kpmg.co.za

Most critically, we seek a united, prosperous, non-racial, non-sexist and democratic South AfricaNational Development Plan: Nation Building and Social Cohesion