2015 16 Fourth Quarter Report to Portfolio Committee on

2015/16 Fourth Quarter Report to Portfolio Committee on International Relations and Cooperation 24 August 2016

TABLE OF CONTENTS 1. DIRCO Performance Information 2. DIRCO Financial Report 3. ARF Report 2

Introduction During the period under review the department had to contend with the following circumstances: • • The unstable rand remains a concern The general pressure on the economy Volatility in the commodities market Global instability, particularly the rise in terrorism and pressures of international migration 3

Programme 1: Administration Quarter 4 targets Q 4 Achievement 100% compliance with 30 day payment period 99, 62% achieved in this quarter due to outstanding information from end users Complete 36 fieldwork investigations as per time frames in vetting Strategy 63 fieldwork investigations for security clearances were completed 100% lodged grievances handled within 30 days Only 25% (2 of 8) lodged grievances handled within 30 days due to unavailability of union representatives 100% of disciplinary cases finalised within 90 days from date being initiated 75% (3 of 4) disciplinary cases finalized within the 90 days from date being initiated 4

Programme 1: Administration Quarter 4 targets 100% of documents legalised as per the Service Delivery Charter Q 4 Achievement 100% (9 207) documents legalised as per the Service delivery charter 100% Percentage consular 100% (198) of cases reported, attended to as per assistance responded to as per the Service Delivery Charter in the following the Service Delivery Charter categories: Citizens in distress Detainee/prisoners new cases Mortal remains Adoption Whereabouts 5

Programme 1: Administration Quarter 4 targets Q 4 Achievement 20 training programmes and 27 training programmes implemented in line with Work Skill Programme which includes: Mission Administration Course (MAC), Foreign Affairs Assistant Course (FAAC), Computer Courses & Generic Skills Training (GSD) Programmes 11 protocol training programmes completed with various government departments including Parliament One research paper on “The future of the African Caribbean Pacific Group (ACP) – Post 2020” produced Two briefing sessions and discussions held in support of foreign policy Four roundtable briefing sessions and discussions held • Strategic Partnerships: The SA Experience • USA Foreign Policy and the role of USA Military in Africa • Palestine • Formulating Foreign Policy within a rapidly changing global environment 6

Programme 1: Administration Quarter 4 targets Q 4 Achievement UPDATE ON CONSTRUCTIONS IN Q 4 Construction of Chancery in Dar Es Salaam 80% completion in Dar Es Salaam. Delay in delivery of crucial material due to project negotiations and further delays due to freight material hold up at the port Construction of Chancery and staff housing in three staff houses in Lilongwe, 95% completed. Delays due to extreme weather conditions (unseasonal flooding) 7

Programme 2: International Relations Quarter 4 targets Q 4 Achievement 3 structured bilateral mechanisms to promote national priorities, the African Agenda and the Agenda of the South • 3 structured bilateral mechanisms were not achieved due to scheduling difficulties 7 high-level visits/engagements to promote national priorities, the African Agenda and the Agenda of the South • Only 3 high level visits were undertaken where discussions centred on areas of mutual interest. The State Visits to Nigeria, Saudi Arabia and UAE by President Zuma was held in February and March where issues such as global terrorism, migration, peace and security and climate change was discussed. Possible UAE investment in a energy renewable project in SA, focussing on increased agricultural and agro processed exports to UAE, increased cooperation on Ocean’s economy, e. g. shipbuilding and maritime security 8

Programme 2: International Relations Quarter 4 targets Q 4 Achievement • 25 Trade and Investment Seminars were held and attended to promote South Africa as trade destination and to promote the Presidential nine point plan. The following priority sectors were identified: Agro-processing ; Minerals and Mining; Engineering; ICT; pharmaceuticals; tourism; green energy and Operation Phakisa (Blue Economy) were promoted. 10 bilateral meetings held • with targeted government ministries 21 Engagements and networking opportunities with different government ministries were held to explore cooperation and to advance objectives of the presidential nine point plan and the five government priorities. Areas of discussion and possible cooperation included: export promotion; the strengthening of SMME’s; the promotion of the automotive sector; and the promotion of South Africa’s industrial hubs 20 trade and investment seminars 9

Programme 2: International Relations Quarter 4 targets Q 4 Achievement 22 meetings with highlevel potential investors and importers • 23 Engagements and networking opportunities with potential investors where a range of issues were discussed such as investment opportunities, how to set up a business in South Africa and strengthening existing partnerships with SA companies. 20 engagements with chambers of commerce • 38 Engagements and networking opportunities with Chambers of Commerce held where discussions centred on business opportunities in SA, business opportunities in central Europe, Operation Phakisa (Blue Economy) and infrastructure development 12 tourism promotion events • Initiatives, engagements, networking opportunities with 27 tourism stakeholders where emphasis was on increased exposure of SA as a tourist destination and preferred destination for business 10

Programme 3: International Cooperation Focus area of the Targets Q 4 Achievements Promotion & protection of human rights South Africa participated in the 31 st Session of the Human Rights Council that was held in Geneva. South Africa’s human rights priorities and policy positions in the area of economic, social, cultural, development, civil and political rights area were advanced through the negotiation of resolutions and through the delivery of national statements and explanations of vote United Nations Commission for Social Development (CSo. CD) 54 th Session of CSo. CD Participated in the 54 th Session of CSo. CD, at the UN Headquarters. During the meeting South Africa’s national priorities and foreign policy positions were promoted through the negotiations on the following resolutions: • Social Dimensions of the New Partnership for Africa’s Development (NEPAD) • Future Organization and Methods of Work of the Commission for Social Development • Rethinking and Strengthening Social Development in the Contemporary World. 11

Programme 3: International Cooperation Focus area of Targets Q 4 Achievements Nuclear Security Summit Participated in the NSS in Washington, D. C and reflected South Africa’s positions on nuclear security in a national statement, as well as a national report. In line with South Africa’s views, the Summit adopted a Communiqué on nuclear security that inter alia decided that the nuclear security issue will hence fourth be transferred to the International Atomic Energy Agency (IAEA) and other multilateral institutions. The inclusion of this outcome was a success for South Africa 12

Programme 3: International Cooperation Focus areas of targets Peace and stability; socio-economic development; good governance and democracy Q 4 Achievement Participated in the AU Assembly in Addis Ababa during January 2016, where SA was re-elected to serve on the AUPSC for an additional 2 -year term. South Africa participated inter alia in the following decisions taken by the Assembly: • Placing in abeyance the dissolution of the African Capacity for the Immediate Response to Crises (ACIRC) • The Scale of Assessment – Ministerial Committee was mandated to continue to develop modalities for implementation of alternative sources of financing In addition, SA also participated in the AUPSC, APRM and NEPAD on the sidelines of the summit. 13

Programme 3: South-South and North-South Cooperation Focus areas of targets Q 4 Achievements G 77 plus China SA handed over the G 77 chair to Thailand after a year characterised by some high-level achievements: • The adoption of the 2030 Agenda for Sustainable Development in September 2015 which is the Global Plan to address development and poverty in the next fifteen years • The adoption of the Addis Ababa Action Agenda at the 3 rd International Conference on Financing for Development in July 2015 where concrete policies and actions were outlined to address development financing and the means of implementation for the 2030 Agenda. EU The 13 th Ministerial Political Dialogue held on 26 February 2016 where discussions centred on various issues of mutual interest. Some of the key outcomes: • The parties agreed to intensify the migration dialogue • EU offered to collaborate with SA in the field of Ocean Economy to share knowledge and technologies. 14

Programme 4: State Protocol services Performance Indicator Q 4 Achievements 100% of requests for protocol services for state and ceremonial events, incoming and outgoing state visits. All requested Protocol Services were rendered: • 6 272 visits through the State Protocol Lounges • 10 incoming and outgoing international visits for principals • 24 incoming and outgoing international visits for provincial and local governments 3 Media briefings, 40 statements, 2 opinion pieces and 3 Public participation programmes (PPP) 3 Media Briefings on international developments 40 media statements issued on Presidential and Ministerial visits and engagements 2 Opinion Pieces 1 Public Participation Programmes – 3 Schools in Limpopo were visited in support of the Back to School Campaign 1 International Women’s Day event hosted by the Minister 15

FINANCIAL REPORT 16

Expenditure per Programme (R’ 000) Programmes Administration International Relations International Cooperation Public Diplomacy and Protocol International Transfers Total Adjusted Appropriation Projection Quarter 4 % of Actual to Variance projection 1, 381, 600 308 600 3, 506, 175 924 556 525, 201 160 398 363, 557 142 663 734, 401 580 321 6, 510, 1 937 797 854 496 122 160, 8% -60, 8% 1 087 201 117, 6% -17, 6% 137 580 85, 8% 14, 2% 69 039 48, 4% 51, 6% 428 322 106, 7% -6, 7% 2 218 264 114, 5% -14, 5% 17

Expenditure per Economic Classification (R’ 000) Quarter 4 Adjusted % of Actual Programmes Appropriation Projection Actual to Variance projection Compensation of 2, 986, 9 8 15 133 91 504 97, 4% 2, 6% employees 231 2, 575, 5 8 061 87 148 44 978 143, 9% -43, 9% Goods and services 740, 4 277 01 654 30 830 107, 3% -7, 3% Transfer payments 209, Payments for capital 285 33 862 50 952 150, 5% -50, 5% assets 6, 510, 114, 5% -14, 5% Total 854 1 937 797 2 218 264 Expenditure/projection as % of total 29, 8% 34, 1% budget 18

Expenditure continued… • Total expenditure for the Department as at the end of the fourth quarter amounts to R 2, 218 billion or 34. 1% of the adjusted appropriation. • This expenditure is 14. 5% higher than the projected expenditure for the period. • The details of the variances are discussed under each Programme. 19

Programme 1: Administration (R’ 000) Programme 1 Ministry Departmental Management Audit Services Financial Management Corporate Services Diplomatic Training, Research and Development Foreign Fixed Assets Management Office Accommodation Total Quarter 4 % of Actual Variance to projection 1 721 110, 4% -10, 4% Prog Appropriation Projection Actual 6, 230 1 559 16, 388 4 095 3 036 74, 1% 19, 832 4 330 5 814 134, 3% 12 8, 732 30 670 34 044 111, 0% 69 5, 928 176 014 282 043 160, 2% 68, 714 18 317 19 231 105, 0% 14 9, 160 11 158 54 563 489, 0% 25, 9% -34, 3% -11, 0% -60, 2% -5, 0% -389, 0% 296, 616 62 457 95 670 153, 2% -53, 2% 1, 381, 600 308 600 496 122 160, 8% -60, 8% 20

Programme 1 – Econ Classification (R’ 000) Quarter 4 Programme 1 - Econ Class % of Actual to Appropriation Projection Actual Variance projection Econonic Classification Compensation of 39 employees 7, 441 96 755 101 629 105, 0% -5, 0% 80 Goods and services 7, 349 182 280 348 795 191, 4% -91, 4% Transfer payments 1, 227 - 251 Payments for capital 17 assets 5, 583 29 565 45 447 153, 7% -53, 7% 1, 38 Total 1, 600 308 600 496 122 160, 8% -60, 8% Expenditure/projection as % of total budget 22, 3% 35, 9% 21

Programme 1 cont…. . Programme 1: Administration • Total expenditure for the Programme as at the end of the fourth quarter amounts to R 496 million or 35. 9% of the programme’s total appropriation. This expenditure is 60. 8% higher than what had been projected for the period. • Reasons for the high spending: – Corporate Services Payment relating to outstanding invoices for ICT infrastructure support services – Foreign fixed assets management Payment relating to outstanding invoices for Dar es Salaam and Lilongwe construction projects. 22

Programme 1 cont…. . Dar es Salaam – Construction of Chancery • Construction 80% completed. • Status of construction as at 31 March 2016: Structure and perimeter walls completed, but finishes, doors, windows and other finishing details still underway. • 2 extension of time claims have been received relating to a) request for advance payment – agreed and contract extended; and b) delays caused by the late submission of information and documents to the contractor. • Expected date of completion: 15 August 2016 Lilongwe – Construction of Chancery and 3 houses • Construction 85% completed • 4 extension of time claims have been received relating to a) rain; b) rain; c) Disruptions in supervision, as a result of consultants nor travelling; and d) delayed payments. • Status of construction as at 31 March 2016: Practical completion of chancery reached, occupation achieved and residences deemed ready for occupation in April 2016. • Expected date of completion: 26 July 2016 23

Programme 2: International Relations (R’ 000) Programme 2 Africa Asia and Middle East Americas and Caribbean Europe Total Prog Appropriation Projection Actual Quarter 4 % of Actual to Variance projection 1, 18 89, 2% 2, 010 397 145 354 289 83 138, 5% 7, 594 186 628 258 446 58 109, 4% 5, 602 163 054 178 424 90 166, 6% 0, 969 177 729 296 042 3, 50 117, 6% 6, 175 924 556 1 087 201 10, 8% -38, 5% -9, 4% -66, 6% -17, 6% 24

Programme 2 – Econ Classification (R’ 000) Quarter 4 % of Actual to Variance projection 2, 1 27, 079 687 231 662 187 96, 4% 3, 6% 1, 3 179, 1% -79, 1% 44, 636 233 296 417 849 - 1 994 4, 440 4 029 5 171 128, 3% -28, 3% 30, 020 3, 5 06, 175 924 556 1 087 201 117, 6% -17, 6% Programme 2 - Econ Class Appropriati Projection on Compensation of employees Goods and services Transfers and subsidies Payments for capital assets Total Expenditure/projection as % of programme budget 26, 4% 31, 0% 25

Programme 2 continued…. • Total expenditure for the Programme as at the end of the fourth quarter amounts to R 1, 087 billion or 31 % of the programme’s total appropriation. • This expenditure is 17. 6% higher than projected expenditure for the period due to the depreciation of Rand against major foreign currencies. 26

Programme 3: International Cooperation (R’ 000) Programme 3 Global system of governance Continental cooperation South-south cooperation North-south dialogue Total Quarter 4 Prog Appropriation Projection Actual % of Actual to Variance projection 28 3, 020 78 444 78 831 100, 5% 15 4, 796 55 622 34 858 62, 7% 3, 686 872 1 002 114, 9% 8 3, 699 25 460 22 889 89, 9% 52 5, 201 160 398 137 580 85, 8% -0, 5% 37, 3% -14, 9% 10, 1% 14, 2% 27

Programme 3 – Econ Classification (R’ 000) Programme 3 - Econ Class Quarter 4 Prog % of Actual Appropriation Projection Actual to Variance projection 32 1, 657 88 556 93 499 105, 6% 20 1, 449 71 720 43 926 61, 2% 26 - - 2, 069 122 155 127, 0% 52 5, 201 160 398 137 580 85, 8% Compensation of employees Goods and services Transfer and subsidies Payments for capital assets Total Expenditure/projection as % of programme budget -5, 6% 38, 8% -27, 0% 14, 2% 30, 5% 26, 2% 28

Programme 3 cont……. Programme 3: International Cooperation • Total expenditure for the Programme as at the end of the fourth quarter amounts to R 137. 6 million or 26. 2% of the programme’s total appropriation. • This expenditure is 14. 2% lower than projected expenditure for the period due to cost containment measures that were implemented on operational expenditure. 29

Programme 4: State Protocol and Public Diplomacy (R’ 000) Programme 4 Quarter 4 Prog Appropriation Projection % of Actual to Variance projection Actual Public Diplomacy 6 8, 533 22 113 17 457 78, 9% 21, 1% Protocol Services 29 5, 024 120 550 51 582 42, 8% 57, 2% Total 36 3, 557 142 663 69 039 48, 4% 51, 6% 30

Programme 4: Economic Classification (R’ 000) Quarter 4 Prog % of Programme 4 Appropriation Projection Actual to Variance projection 14 Compensation of employees 0, 054 42 591 34 189 80, 3% 19, 7% 22 Goods and services 1, 627 99 852 34 408 34, 5% 65, 5% Transfer and subsidies 263 74 263 Payments for capital assets 1, 613 146 179 122, 6% -22, 6% 36 Total 3, 557 142 663 69 039 48, 4% 51, 6% Expenditure/projection as % of programme budget 39, 2% 19, 0% 31

Programme 4 cont……. Programme 4: Public Diplomacy and Protocol • Total expenditure for the Programme as at the end of the fourth quarter amounts to R 69. 0 million or 19. 0% of the programme’s total appropriation. • Expenditure for this programme is 51. 6% lower than what had been projected for the period. • Lower than projected expenditure is attributable to savings realised due to cost containment measures that were implemented during Forum on China. Africa Cooperation (FOCAC) Summit which was held in December 2015. 32

Programme 5: International Transfers (R’ 000) Programme 5 Quarter 4 % of Actual Variance to projection 15 4, 037 8 400 0, 0% 100, 0% 58 3 0, 284 93 180 428 322 108, 9% -8, 9% 73 4 4, 321 01 580 428 322 106, 7% -6, 7% Prog Appropriation Projection Departmental agencies Membership contribution Total Economic Classification Transfer payments Total Expenditure/projection as % of programme budget 73 4 4, 321 01 580 428 322 106, 7% -6, 7% 54, 7% 58, 3% 33

Programme 5 cont……. Programme 5: International Transfers • Total expenditure for the Programme as at the end of the fourth quarter amounts to R 428. 3 million or 58. 3% of the Programme’s total appropriation. • This expenditure is 6. 7% higher than projected expenditure for the period due to the depreciation of Rand against major foreign currencies. 34

Expenditure as at 31 March 2016 Final Actual Variance Appropriation Expenditure Programme Administration International Relations International Cooperation Public Diplomacy and Protocol Services International Transfers Total R'000 1, 381, 6 00 1, 381, 471 3, 506, 1 75 3, 640, 379 525, 2 01 523, 051 363, 5 57 333, 222 734, 3 21 766, 641 6, 510, 8 54 6, 644, 764 Expenditure as % of final appropriation R'000 % 1 29 100. 0% (134, 2 04) 103. 8% 2, 1 50 99. 6% 30, 3 35 91. 7% (32, 3 20) 104. 4% (133, 9 10) 102. 1% 35

Vote Expenditure as at 31 March 2016 Final Actual Variance Appropriation Expenditure Economic classification Compensation of employees Goods and services Transfer and Subsidies Payments for capital assets Total Expenditure as % of final appropriation R'000 % 3, 010, 1 3, 083, 74 (73, 51 1 590) 102. 4% 2, 502, 2 2, 530, 31 (28, 68 4 046) 101. 1% 740, 2 772, 53 (32, 64 8 274) 104. 4% 258, 17 71 1 - 100. 0% 6, 510, 8 6, 644, 76 (133, 54 4 910) 102. 1% 36

ARF 37

ARF Performance report - Quarter 4 Performance indicators Percentage of requests responded to for the quality assurance and review of project proposals in preparation for the ARF Board meetings Number of ARF structures and processes convened to identify and recommend projects in compliance with the ARF Act, 2000 and PFMA, 1999 Democracy governance and Target ACTUAL PERFORMANCE AGAINST TARGETS 100% of requests received responded to timeously as per objectives of the project plan. No new Project Proposals processed for ARF Board meeting. One Advisory Committee meeting to consider project proposals for recommendation One Scheduled Committee meeting was held during this period good 100% of approved disbursement to support democracy and good governance processed timeously as per the objective of the project plan. Ø 63 rd Meeting of the ARF Advisory Committee held on 23 February 2016 Processed payments totalling R 23 044. 11 for election observer missions in Tanzania and Seychelles. 38

ARF Performance report - Quarter 4 Performance indicators Annual Target Socio – economic 100% of approved disbursement to development support social – economic development processed timeously as per the objectives of the project ACTUAL PERFORMANCE AGAINST TARGETS Processed payments of R 1 728 449. 58 for rice and vegetable production project in Guinea (Conakry). Processed payments totalling R 4 500 761. 53 for Cuban Medical Brigade in Sierra Leone. Humanitarian Assistance Capacity-building 100% of approved disbursement to support humanitarian assistance processed timeously as per the objectives of the project 100% of approved disbursement to support capacity-building processed timeously as per the objectives of the project Processed R 42 829 886. 50 for Namibia drought relief project. Processed R 2 781 659. 54 for African Capacity Building Foundation final tranche payment Processed payments totaling R 27 119 915. 46 for Cuban Economic Package. 39

ARF Financial report – Quarter 4 Cash and cash equivalent at 1 April 2015 R'000 2 205 263 Appropriated funds 145 637 Interest received Receivables 143 765 210 822 Committed funds – existing projects Approved Grants for 2015/16 Disbursements 2015/16 Accumulated Surplus as at 31 March 2016 825 717 161 773 156 091 1 561 906 40

ARF Financial report - Quarter 4 2015/16 Approved projects: (a) Technical support of the fourth General Elections of Burundi (b) Timbuktu Manuscript (c) Cuban Medical Brigade in Sierra Leone (d) Transportation of Humanitarian Assistance to Madagascar (e) African Capacity Building Foundation (f) Cuban Economic Package R 38 031 000 R 7 201 000 R 3 985 000 R 195 000 R 2 361 000 R 110 000 41

Thank you