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POLICY

STRATEGIC INTERNATIONAL RELATIONS (POLICY NUMBER 12187) [Replaces Previous Policy known as Strategic

External Relations)

REVISED AND APPROVED BY COUNCIL: 28 OCTOBER 2015 – C14/10/15

(Previous Policies: C27/03/11 of 30 March 2011 C11/04/13 of 24 April 2013

C42/02/14 of 26 February 2014)

Strategy and Operations Directorate

Office of the Executive Mayor

Strategic International Relations Policy

of the

City of Cape Town

October 2015

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Document Title: Strategic International Relations Policy

Document status

Review of Policy Number 12187 as approved by Council on 24 April

2013 and Amended by Council on 26 February 2014

Date of previous reviews:

Policy on External Relations approved by Council on 30/03/2011

Strategic External Relations Policy approved by Council on 24/04/2013

Strategic External Relations Policy Amended by Council on 26/02/2014

Review date To be reviewed every five years

Reference Codes [to be inserted by Committee Services]

Contact:

Dr Denver van Schalkwyk

Manager: International Relations

Strategy and Operations Directorate

Office of the Executive Mayor

E: [email protected]

T: +27 (0) 21 400 1369

mailto:[email protected]

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CONTENTS

Contents .................................................................................................................................................................. iii

Abbreviations ......................................................................................................................................................... iv

Definitions ............................................................................................................................................................... iv

1. PROBLEM STATEMENT ..................................................................................................................................... 1

2. DESIRED OUTCOMES....................................................................................................................................... 2

3. STRATEGIC INTENT ........................................................................................................................................... 3

4. POLICY PARAMETERS ..................................................................................................................................... 5

5. ROLE PLAYERS AND STAKEHOLDERS ............................................................................................................ 5

6. REGULATORY CONTEXT .................................................................................................................................. 6

7. POLICY DIRECTIVES ......................................................................................................................................... 6

8. IMPLEMENTATION PROGRAMME................................................................................................................ 11

9. MONITORING, EVALUATION AND REVIEW ................................................................................................ 12

Annexure 1: PARTNERSHIP GRADES SUMMARY TABLE ................................................................................... 13

Annexure 2: PROCEDURE SUMMARY TABLE..................................................................................................... 14

Annexure 3: TYPES OF AGREEMENT SUMMARY TABLE ................................................................................... 15

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ABBREVIATIONS

BEP Business Enhancement Partnership

BPO Business Process Outsourcing

BRICS Brazil, Russia, India, China and South Africa

DIRCO Department of International Relations and Cooperation

EDP Economic Development Partnership

GIP Government Improvement Partnership

IDP Integrated Development Plan

IGR Intergovernmental Relations

IRU International Relations Unit

Mayco Mayoral Committee

MFMA Local Government: Municipal Finance Management Act (Act No. 56 of 2003)

MSA Local Government: Municipal Systems Act (Act No. 32 of 2000)

NDP National Development Plan

NGP New Growth Path

ODA Official Development Assistance

SADC Southern African Development Community

SALGA South African Local Government Association

SDP Social Development Partnership

SFA Strategic Focus Area

DEFINITIONS

“African Union” The African Union (AU) is a continental union consisting of 54

countries in Africa aiming to achieve greater unity and

solidarity between the African countries and Africans.

“ASEAN” The Association of Southeast Asian Nations (ASEAN) is a

political and economic organisation of ten Southeast Asian

countries.

“BRICS” BRICS is the acronym for an association of five major

emerging national economies, i.e. Brazil, Russia, India, China

and South Africa who are all developing or newly

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industrialised countries, distinguished by their large, fast-

growing economies and significant influence on global affairs.

“BEP” A Business Enhancement Partnership (BEP) is concluded

between participants focusing on facilitating reciprocal trade

and investment relations. Within the context of this Policy, a

BEP forms part of the grading system of partnerships between

the City and international stakeholders.

“City” Means the City of Cape Town, a municipality established by

the City of Cape Town Establishment Notice No. 479 of 22

September 2000, issued in terms of the Local Government:

Municipal Structures Act, 1998 (Act No. 117 of 1998), or any

structure or employee of the City acting in terms of delegated

authority.

“Commonwealth of Nations” The Commonwealth of Nations, commonly known as the

Commonwealth (formerly the British Commonwealth), is an

international intergovernmental organisation of 53 member

states that were mostly territories of the former British Empire.

“Council” Means the Council of the City or any of the other political

structures, political office bearers, councillors or staff

members, of the City duly authorised by delegation.

“GIP” A Government Improvement Partnership (GIP) focuses on

exchanging international best practices regarding good

governance principles. Within the context of this Policy, a GIP

forms part of the grading system of partnerships between the

City and international stakeholders.

“IDP” The Integrated Development Plan (IDP) is a strategic

developmental plan, setting strategic and budget priorities for

the City over five years. It aligns the resources and the

capacity of the City to its overall development aims, and

guides the municipality‟s budget.

“International Relations” International relations refers to the interactions between and

behaviour of a number of actors or stakeholders in the global

system. These actors or stakeholders include governments at

all spheres, international organisations, international private

sector actors, and multinational enterprises.

“MERCOSUR” Mercosur is a sub-regional bloc comprising of ten countries

with the common aim to promote free trade and the fluid

movement of goods, people, and currency between

member states.

“ODA” Official Development Assistance (ODA) refers to the official

resource flows, either in cash or in the form of commodities or

services, from members of the international community (i.e.

foreign donors) to less privileged members (e.g. cities,

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provinces, countries) of the international community. It should

be stressed that although the donors of ODA are mostly

countries, that multilateral organisations such as the United

Nations (UN) are also contributing ODA to recipients annually.

“SADC” The Southern African Development Community (SADC) is an

inter-governmental organisation headquartered in Gaborone,

Botswana. Its goal is to further socio-economic cooperation

and integration as well as political and security cooperation

among 15 Southern African states.

“SALGA” The South African Local Government Association (SALGA) is

an autonomous association of municipalities with its mandate

derived from the Constitution of the Republic of South Africa.

This mandate defines SALGA as the voice and sole

representative of local government. SALGA interfaces with

parliament, the National Council of Provinces (NCOP),

cabinet as well as provincial legislatures.

“SDP” A Social Development Partnership (SDP) focuses on the social

enhancement of especially the most marginalised groups in

society. Within the context of this Policy, a SDP forms part of

the grading system of partnerships between the City and

international stakeholders.

“South-South Cooperation” South-South cooperation is a broad framework for

collaboration among countries of the South in the political,

economic, social, cultural, environmental and technical

domains. These countries share knowledge, skills, expertise

and resources to meet their development goals through

concerted efforts. Recent developments in South-South

cooperation have taken the form of increased volume of

South-South trade, South-South flows of foreign direct

investment, movements towards regional integration,

technology transfers, sharing of solutions and experts, and

other forms of exchanges.

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1. PROBLEM STATEMENT

1.1 The City of Cape Town‟s (hereinafter “the City” or “this City‟) Strategic International

Relations Policy (hereinafter “the Policy” or “this Policy”) has an important role to play in

determining the City‟s international relations priorities and objectives, and in delineating

the powers, roles, functions and procedures of the relevant City authorities. It has the

potential to be a powerful tool to enhance the global profile of Cape Town as an

attractive place to visit, live, work and do business.

1.2 To be effective in this regard, the Policy needs to guide decision making pertaining to

the international relations of the City in a manner that is articulate, and that aligns with

the strategic aims of the City as identified in the Integrated Development Plan (IDP).

1.3 Ideally, the Policy should situate Cape Town within a changing global context. South

Africa‟s accession to the BRICS group of countries (i.e. Brazil, Russia, India, China and

South Africa), encourages economic growth in Africa and rapid technological change

that bring with them tremendous opportunities for the City. On the other hand, the

spread of terrorism, organised crime and environmental change pose global risks that

require international cooperation and partnership in order to be dealt with effectively.

1.4 The Policy needs to reflect the above-mentioned global reality, one in which local

governments will play an increasingly critical role both as regulators and as facilitators of

economic growth and development.

1.5 In addition, the Policy should provide adequate guidance regarding the full range of

international relations options available to decision-makers in the City. It should thus

recommend mechanisms to evaluate existing relationships, and provide guidance on

the manner in which the City could proactively seek to build new relationships with

partners that have the potential to enhance Cape Town‟s economic, social and

cultural life.

1.6 To achieve this, amendments to the existing Policy are required. Coupled with, and

crucial to this is that since Council approved the amended Strategic External Relations

Policy in February 2014, a number of structural changes in the Office of the Executive

Mayor were instituted. As a result, the former External Relations and Protocol Unit has

been restructured as the International Relations Unit (IRU) in order to be more strategic in

nature, with its primary purpose now being to advance the international relations and

related activities of the City.

1.7 The IRU is no longer responsible for the City‟s Inter-Governmental Relations (IGR)

activities as all issues and activities related to the South African Local Government

Association (SALGA), which constitutes almost all of the City‟s IGR activities, have been

delegated to the Executive Support Office as instructed by the City Manager.

1.8 Additionally, IGR transpires on a daily basis within the exclusive domains of the various

City Departments. Involving the IRU has in the past given rise to unnecessary delays,

miscommunication and duplication of roles and responsibilities. Therefore, the IRU will

only, from time to time and as the need arises, serve as the so-called first stop for certain

IGR enquiries, after which it will be referred to the relevant City Department(s), who will

take full responsibility for the matter concerned.

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2. DESIRED OUTCOMES

2.1 The overarching outcome of the Policy is to promote Cape Town as a competitive

global hub for economic, social and cultural activity; one that values international

connectivity as a means to facilitate job creation through private sector-led economic

growth and is recognised for its open and competitive regulatory environment, which is

balanced by the City‟s values of cooperation and partnership to promote excellence

and innovation in local government.

2.2 With regards to the above-mentioned enabling environment, it is the intention of the

City to utilise its international relations to actively facilitate inward investment,

particularly in the catalytic growth sectors identified in the IDP. This includes attracting

domestic and foreign investment in the following sectors:

2.2.1 Oil and gas;

2.2.2 Agro-processing;

2.2.3 Financial services;

2.2.4 Corporate head offices;

2.2.5 Medical technology;

2.2.6 Green industries;

2.2.7 Tourism and events; and,

2.2.8 Business process outsourcing.

2.3 The Policy seeks to enrich Cape Town‟s broader social and cultural life through

improved global and regional connections. In doing so, it facilitates the Cultural

Transition identified by the Economic Development Partnership (EDP) Towards 2040

Agenda wherein the Western Cape and Cape Town as a consequence, becomes „a

meeting point for East and West and an important connector with the new markets of

Africa, Asia and Latin America‟. By enhancing Cape Town‟s international connections,

the Policy facilitates the following:

2.3.1 Interplay of new ideas;

2.3.2 Networking for local cultural, community and sports organisations; and,

2.3.3 Championing the City on the global stage.

2.4 Fundamental to the successful realisation of the broad economic and social aims of the

Policy, is the articulation of a clear set of goals and objectives that promote the interests

of the City and that align with the values and strategic policy objectives of the

administration. These include:

2.4.1 Attracting investment;

2.4.2 Promoting Cape Town businesses abroad;

2.4.3 Attracting visitors;

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2.4.4 Attracting large strategic events;

2.4.5 Promoting Cape Town civic life;

2.4.6 Promoting the City of Cape Town as a model of excellence and innovation

in government;

2.4.7 Gaining policy insights from other international city governments; and,

2.4.8 Shaping the social policy agenda, particularly with regard to matters of

redress, reconciliation, delivery and diversity.

2.5 The Policy clarifies powers, functions, roles and responsibilities of the IRU and other

interested or affected parties.

2.6 It sets out the criteria and procedures to be followed when establishing formal relations

with international parties with the aim of enabling sufficient flexibility so that the City is

able to capitalise on ad hoc opportunities when such opportunities are deemed

valuable.

2.7 The Policy aims to ensure that appropriate controls are in place to curtail fruitless

initiatives and onerous and costly commitments where these do not result in tangible

benefits for the City.

2.8 By articulating these aims and clarifying relevant decision-making criteria and

processes, the Policy seeks to integrate the City‟s international relations within its

broader development agenda for Cape Town.

2.9 The result is a strategic approach to managing the City‟s relationships with international

stakeholders in a manner that maximises the benefits to the City that accrue from global

political, economic, social and environmental change while seeking to minimise

potential risks and costs.

3. STRATEGIC INTENT

The Policy is informed by the following strategic objectives that relate to the City‟s international

relations priorities:

3.1 The Integrated Development Plan

Two priority areas listed under the IDP Strategic Focus Area 1 have direct implications for

the Policy:

3.1.1 Create an enabling environment: The IDP objective to create an enabling

environment for entrepreneurship, innovation and growth is expressed in the

Policy‟s clauses concerning the promotion of Cape Town businesses abroad

and the facilitation of business networks.

3.1.2 Provision and maintenance of economic and social infrastructure: This

objective is addressed by the stated aim to utilise the City‟s international

profile to facilitate inward investment into Cape Town. Investment in

infrastructure is one area where this proactive approach can result in

tangible gains.

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The following priority area listed under IDP Strategic Focus Area 5 also has direct

implications for the Policy:

3.1.3 Efficient and productive administration: The Policy‟s emphasis on seeking to

build partnerships with successful cities that share many of Cape Town‟s

physical and socio-economic characteristics, and learning from them

through knowledge and skills transfers, has direct positive implications for

improved governance and administration in the City.

3.2 Economic Development Partnership (EDP): Towards 2040 Agenda

The following transition identified by the EDP supports, and is informed by, the Policy:

3.2.1 Cultural Transition: The transition is defined as one where barriers to local and

global connectivity give way to a „high level of local connectivity and global

markets fluency‟. Its goal is for the Western Cape to become „a global

meeting point between East and West and an important connector with the

new markets of Africa, Asia and Latin America‟.

3.3 National Development Plan

The Policy notes the following general recommendations detailed in Chapter 7 of the

National Development Plan (NDP): Positioning South Africa in the World where

applicable.

3.3.1 On cooperation with the BRICS group and Africa: „Deepen cooperation with

Brazil, Russia, India and China as part of the BRICS group while promoting

regional and global integration. This requires a thorough review of the

country‟s current and future regional and international commitments.‟

3.3.2 On achieving tangible benefits through external relations: „Achieve

measurable outcomes related to food, water, energy, education, health,

transport and communication infrastructure, national defence, adjustment

to climate change and economic growth to benefit all South Africans.‟

3.4 Department of International Relations and Cooperation‟s (DIRCO) Strategic Plan

The Policy is consistent with the DIRCO‟s Strategic Plan 2013 to 2018. It actively promotes

three of its strategic priorities. These are:

3.4.1 Priority 3: Enhanced African Agenda and Sustainable Development. This

priority area emphasises the promotion of socio-economic development

and championing sustainable development and opportunities in Africa.

3.4.2 Priority 3: Strengthen South-South Relations. This emphasises how South Africa

shares many positions on political, economic and social issues with other

developing countries in the Global South and how greater South-South

cooperation can play a role in shaping the global agenda.

3.4.3 Priority 2: Strengthening Political and Economic Relations. The priority area

notes the continued importance of strategic engagement at a bi-lateral

level and how these relationships establish an important basis for

strengthening political and economic partnerships in the various regions of

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the world. Emphasis is also placed on “strengthening economic relations for

the promotion of South Africa‟s trade, investment and tourism potential and

opportunities”.

4. POLICY PARAMETERS

4.1 The Policy is concerned with the international relations of the City. It is primarily aimed at

informing strategic decisions regarding the City‟s relations with foreign stakeholders, and

foreign local governments in particular.

4.2 The Policy informs and guides the activities of the IRU.

4.3 The Policy has wide-ranging transversal implications as its provisions apply to relations

between the City and international stakeholders.

5. ROLE PLAYERS AND STAKEHOLDERS

The following role players are identified for the purpose of implementing the Policy:

5.1 The International Relations Unit (IRU)

5.1.1 The IRU is responsible for providing support to the Executive Mayor, Executive

Deputy Mayor and the Director: Strategy and Operations with respect to the

City‟s international relations matters.

5.1.2 It is overseen by an International Relations Manager.

5.1.3 The IRU is responsible for facilitating and coordinating the international travel

arrangements of only the Executive Mayor and Executive Deputy Mayor.

5.1.4 It is also responsible for providing a facilitation service for visiting international

delegations.

5.1.5 The IRU is responsible for maintaining a searchable online database of all

international relations agreements entered into by the City.

5.2 Stakeholders that may be consulted on matters pertaining to the international relations

of the City include:

5.2.1 All City of Cape Town Departments

5.2.2 All nine South African Provincial Governments and their Departments

responsible for International Relations.

5.2.3 National Stakeholders:

The National Department of International Relations and Cooperation, and;

South African Local Government Association.

5.2.4 International Stakeholders:

South African diplomatic representation abroad;

International Organisations, and;

Foreign city governments.

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5.2.5 Other Stakeholders:

The Western Cape Destination Marketing, Investment and Trade

Promotion Agency (Wesgro);

Cape Town-based businesses;

Cape Town Tourism;

Cape Chamber of Commerce;

The Economic Development Partnership, and;

Non-government institutions.

6. REGULATORY CONTEXT

This section provides an overview of the relevant legislation and policies that have a bearing on the

international relations of the City.

6.1 Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

6.2 Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998)

6.3 Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)

6.4 Integrated Development Plan of the City of Cape Town, 2012 to 2017

6.5 Travel Management Policy of the City of Cape Town (February 2013)

7. POLICY DIRECTIVES

7.1 A grading system of partnerships between the City and international stakeholders shall

apply.

7.1.1 The grading system will be used to inform internal management decisions

only and should not affect the legal standing of agreements concluded

between the City and international stakeholders.

7.1.2 The grading system applies to bi-lateral, tri-lateral and multi-lateral

agreements between international stakeholders and the City.

7.1.3 There will be three grades of partnership, namely:

(a) Business enhancement partnerships; focusing on facilitating reciprocal

trade and investment relations;

(b) Governance improvement partnerships; focusing on exchanging

international best practices regarding good governance principles; and,

(c) Social development partnerships; focusing on the social enhancement

of especially the most marginalised groups in society.

7.1.4 A different set of criteria shall apply to each grade when proposals,

applications, and existing agreements are assessed or reviewed by the IRU,

who will then make a recommendation to the Executive Mayor for decision.

7.1.5 The IRU makes recommendations according to these criteria to the Executive

Mayor who shall then have the discretion to decide which of the three sets of

criteria is most appropriate for evaluating the merits of each case.

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7.1.6 For business enhancement partnerships, the IRU will make recommendations

to the Executive Mayor by taking the following factors into consideration

when evaluating new partnership proposals or reviewing existing partnership

agreements:

(a) Potential to attract inward investment to Cape Town;

(b) Depth of capital markets;

(c) Market access for goods and services from Cape Town;

(d) Existing synergies with Cape Town-based industries;

(e) Opportunities for skills transfer;

(f) Opportunities for technology transfer;

(g) Opportunities for business networking; and,

(h) Scale of existing trade.

7.1.7 The number of business enhancement partnerships shall be limited to a

focussed group of partners that most closely align with the factors detailed in

Section 7.1.6.

7.1.8 The City shall proactively seek partnerships with stakeholders that align with

the factors detailed in 7.1.6.

7.1.9 Each business enhancement partnership agreement shall be reviewed as per

the stipulations contained therein.

7.1.10 For governance improvement partnerships, the IRU will make

recommendations to the Executive Mayor by taking the following factors into

consideration when evaluating new partnership proposals or reviewing

existing partnership agreements:

(a) Track record of excellence and innovation;

(b) Comparable socio-economic challenges;

(c) Opportunities for knowledge transfer; and,

(d) Opportunities for skills transfer, bearing the below in mind:

(i) Opportunities for personnel exchanges and secondments;

(ii) Comparable size, population and Gross Domestic Product;

(iii) Existing local, regional, national or historical ties;

(iv) Access to donor funding; and,

(v) National membership of BRICS, African Union (AU), Southern

African Development Community (SADC), Commonwealth of

Nations, Association of Southeast Asian Nations (ASEAN) or

Mercado Comun del Sur (MERCOSUR).

7.1.11 Each governance improvement partnership agreement shall be reviewed as

per the stipulations contained therein.

7.1.12 For social development partnerships, the IRU will make recommendations to

the Executive Mayor by taking the following factors into consideration when

evaluating new partnership proposals or reviewing existing partnership

agreements:

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(a) Comparable socio-economic challenges;

(b) Shared democratic values;

(c) Existing historical ties;

(d) National membership of BRICS, AU, SADC, Commonwealth of Nations,

ASEAN or Mercosur, and;

(e) Opportunities for dialogue, networking, exchanges or partnerships for the

following types of Cape Town-based organisations:

(i) Community organisations

(ii) Non-governmental organisations

(iii) Sports organisations

(iv) Cultural organisations

7.1.13 Each social development partnership agreement shall be reviewed as per

the stipulations contained therein.

7.2 The IRU‟s recommendation to the Executive Mayor regarding the City‟s membership of

international organisations shall be guided by one or more of the three sets of factors

detailed in Section 7.1. Further to these, the Executive Mayor‟s final decision will also be

considerate to the following factors:

7.2.1 The international standing of the organisation;

7.2.2 The utility to be gained from membership; and,

7.2.3 The cost implications of membership.

7.3 Unless otherwise agreed as per 7.3.2 below, the City will only enter into the following

types of agreements with international organisations or stakeholders:

7.3.1 (a) Partnership agreements;

(b) Membership agreements;

(c) Memoranda of understanding;

(d) Grant agreements;

(e) ODA agreements, and;

(f) Statements of intent.

7.3.2 Other types of agreements may be entered into as a result of a decision by

the Executive Mayor.

7.3.3 Guidelines detailing the nature and scope of each type of agreement, and

the implications of each for the City, are provided in Annexure 3.

7.4 The IRU developed an Implementation Framework that provides more detailed

guidance on how the City intends to leverage its international relationships to further the

objectives of the IDP.

7.5 The following procedures shall be followed with respect to new proposals concerning

the international relations of the City:

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7.5.1 For partnership proposals generated by international stakeholders located

either within or outside South Africa, the following procedure applies:

(a) Consultation sought with the nearest South African diplomatic mission or

with DIRCO.

(b) A formal proposal is drafted by the proposing stakeholder that includes its

general information and a motivation guided by one of the three sets of

factors detailed in Section 7.1

(c) The proposal must be submitted to the IRU for review.

(d) The IRU makes a recommendation to the Executive Mayor for a final

decision.

(e) If the proposed relationship has financial implications, the proposal is

submitted to Council for final approval.

7.5.2 For partnership proposals generated by City departments, the following

procedure applies:

(a) A formal proposal, which should be guided by one of the three sets of

factors identified in Section 7.1., is drafted for consideration by the

relevant Executive Director.

(b) The proposal must be submitted to the IRU for review.

(c) The IRU makes a recommendation to the Executive Mayor for final

decision.

(d) If the proposed relationship has financial implications, the proposal is


7.5.3 In the case of proposals generated by Mayco members or Portfolio

Committees:

(a) A formal proposal, which should be guided by one of the three sets of

factors identified in Section 7.1, is drafted by the relevant individual.



decision.

(d) If the proposed relationship has financial implications, the proposal is


7.5.4 In the case of ODA agreements, proposals generated by Directorates or

international stakeholders:

(a) A formal proposal is drafted by the Directorate and/ or Donor Agency.



decision.

(d) If approved, the recipient Directorate must inform the Office of the City

Manager and the Finance Directorate, and prepare and submit a Report

for noting by Council.

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7.6 All recommendations and decisions regarding partnerships or memberships on the part

of the City shall be taken:

7.6.1 With due regard for costs;

7.6.2 By weighting such costs against the anticipated benefits to the City; and,

7.6.3 In accordance with the MFMA.

7.7 Where appropriate, the City shall be open to coordination and cooperation with the

Western Cape Government on matters relating to international relations.

7.8 A searchable online database will be established and managed by the IRU. This

database will:

7.8.1 Contain details of all existing international agreements and memberships as

well as pending proposals;

7.8.2 Identify whether an existing international agreement or membership is due for

review; and,

7.8.3 Identify whether a pending proposal is approved, under consideration or

declined.

7.9 The nature of the evaluation and review of international partnerships and memberships

will be influenced by:

7.9.1 The grade of membership (for partnerships); and,

7.9.2 One of the three sets of factors detailed in Section 7.1 as deemed most

appropriate, in addition to Section 7.2 (for memberships).

7.10 International Agreements and memberships entered into prior to the adoption of the

Policy shall be reviewed keeping in mind one or more of the sets of factors detailed in

Sections 7.11 to 7.13 below.

7.11 Business enhancement partnership agreements shall be reviewed as per the stipulations

contained therein. Factors to be taken into consideration during a review may include:

7.11.1 The value of new inward investment to Cape Town attributable to the

partnership;

7.11.2 The partner‟s current economic standing;

7.11.3 New trade or other business opportunities attributable to the partnership;

7.11.4 The continued existence of complementary business sectors;

7.11.5 Whether or not tangible skills, knowledge or technology transfer has

occurred; and,

7.11.6 Whether or not representative business organisation exchanges and

collaboration has taken place.

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7.12 Governance improvement partnership agreements shall be reviewed as per the

stipulations contained therein. Factors to be taken into consideration during a review

may include:

7.12.1 The partner‟s record of good governance;

7.12.2 Whether or not personnel exchanges and secondments have occurred;

7.12.3 Whether or not knowledge and skills transfer has occurred;

7.12.4 Continued complementary characteristics such as size, population and Gross

Domestic Product;

7.12.5 Whether the partnership has facilitated access to donor funding, and the

value thereof; and,

7.12.6 The number and impact of collaborative projects.

7.13 Social development partnership agreements shall be reviewed as per the stipulations

contained therein. Factors to be taken into consideration during a review may include:

7.13.1 The partner‟s demonstrated commitment to democratic values;

7.13.2 The number and impact of collaborative projects;

7.13.3 Continued institutional or cultural ties, and;

7.13.4 Whether or not dialogue, networking, exchanges or partnership initiatives

have been established for the following types of Cape Town-based

organisations, and the positive impact thereof:

(a) Community organisations

(b) Non-governmental organisations

(c) Sports organisations

(d) Cultural organisations

7.14 A review of the City‟s memberships of international organisations shall be conducted as

per the stipulations contained in the membership agreement with the particular

international organisation. In the IRU‟s recommendation to, and the final decision by

the Executive Mayor, consideration should be given to the factors highlighted in section

7.2.

7.15 The City will act as the overarching Implementing Agent for ODA related projects.

However, it will be the responsibility of the recipient Directorates of ODA to execute the

actual implementation and M&E of ODA related projects and to provide donors with

updated information in this regard.

8. IMPLEMENTATION PROGRAMME

8.1 The provisions contained in the Policy shall apply on approval by Council.

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9. MONITORING, EVALUATION AND REVIEW

9.1 The implementation of this Policy will be monitored by the IRU.

9.2 The Policy will be reviewed every five years.

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ANNEXURE 1: PARTNERSHIP GRADES SUMMARY TABLE

Grade Priority criteria

Business

enhancement

partnerships

1. Potential to attract inward investment to Cape Town;

2. Depth of capital markets;

3. Access to markets for goods and services produced in Cape Town;

4. Existing synergies with Cape Town-based industry sectors, particularly

the catalytic growth sectors;

5. Opportunities for skills transfer;

6. Opportunities for technology transfer;

7. Opportunities for representative business organisation exchanges and

collaboration; and,

8. Scale of existing trade.

Governance

improvement

partnerships

1. Track record of excellence and innovation;

2. Comparable socioeconomic challenges;

3. Opportunities for knowledge transfer;

4. Opportunities for skills transfer;

5. Opportunities for personnel exchanges and secondments;

6. Comparable size, population and Gross Domestic Product;

7. Existing local, regional, national or historical ties;

8. Access to donor funding; and,

9. National membership of BRICS, AU, SADC, Commonwealth of Nations,

ASEAN or Mercosur.

Social

development

partnerships

1. Comparable socio-economic challenges;

2. Shared democratic values;

3. Existing local, regional, national or historical ties;

4. National membership of BRICS, AU, SADC, Commonwealth of Nations,

ASEAN or Mercosur; and,

5. Opportunities for dialogue, networking, exchanges or partnerships for

the following types of Cape Town-based organisations:

i. Community organisations

ii. Non-governmental organisations

iii. Sports organisations

iv. Cultural organisations.

14

ANNEXURE 2: PROCEDURE SUMMARY TABLE

Applicant Procedure

International

stakeholder

1. Consult DIRCO or SA Embassy/ Consulate;

2. A formal proposal is drafted by the proposing stakeholder that includes

its general information and a motivation guided by one of the three sets

of factors detailed in Section 7.1;

3. The proposal must be submitted to the IRU for review and to make a

recommendation to the Executive Mayor for final decision; and,

4. If financial implications, the proposal is submitted to Council after

consultation with the Accounting Officer.

City

department

1. A formal proposal is drafted for consideration by the relevant Executive

Director. This proposal should be guided by one of the three sets of

factors detailed in Section 7.1;





Mayco

OR

PC

1. Relevant individual drafts a formal proposal, which is guided by one of

the three sets of factors detailed in Section 7.1;





15

ANNEXURE 3: TYPES OF AGREEMENT SUMMARY TABLE

Type of Agreement Details

Partnership Agreements

1. Formal agreement entered into between the City

and one or more international stakeholders;

2. Focuses on addressing a specific issue or set of

issues of mutual concern;

3. Factors detailed in Section 7.1 apply;

4. Entails a commitment to action by all parties for the

duration of the partnership;

5. Commitment to action may include financial

commitments, and;

6. The benefits of each partnership must be reviewed

according to factors detailed in Sections 7.11-7.13

of the Policy.

Membership Agreements

1. Formal agreement committing the City to

membership of an international organisation;

2. Organisations may include, but are not limited to,

international organisations, alliances, networks,

forums, associations and platforms;

3. May entail financial commitments;

4. May include commitment to attend organisation

meetings, and;

5. The benefits of each membership must be

reviewed according to factors detailed in Sections

7.11-7.13 of the Policy.

Memoranda of Understanding

1. Formal agreement entered into between the City

and one or more international stakeholders;

2. Generally takes the form of an expression of shared

understanding pertaining to a specific issue;

3. May include a commitment to action by one or

more parties;

4. May entail financial commitments;

5. Variations may include, but are not limited to,

Memoranda of Agreement, Friendship Agreements,

Cooperation Agreements and Collaboration

Agreements, and;

6. The benefits of each Memorandum must be

reviewed according to factors detailed in Sections

7.11-7.13 of the Policy.

Grant Agreements

1. Formal agreement pertaining to grant monies

entered into between the City and one or more

international stakeholders;

2. Entails financial commitments on the part of one or

more of the parties to the agreement;

3. Conditions of grant may entail commitments to

action on the part of one or more of the parties,

and;

4. The benefits of each Agreement must be reviewed


of the Policy.

16

ODA Agreements 1. Formal agreement entered into between the City

and one or more international stakeholders from

outside South Africa

2. Entails commitments by Donor to commit funding

and/ or technical assistance and City who is

responsible for specified obligations imposed under

the Agreement;

3. Conditions of Agreement always entail

commitments to action on the part of both parties,

i.e. the Donor being solely accountable for project

expenditure and the IA (i.e. the City) to manage

received resources, and;

4. The benefits of each Agreement must be reviewed


of the Policy.

Statements of Intent

1. Formal statement referring to intended future

actions, or a statement of values;

2. May be issued unilaterally to together with one or

more partner international stakeholders;

3. Generally does not entail financial commitments;

4. Includes joint declarations, charters and accords,

and;

5. The benefits of each Statement must be reviewed


of the Policy.

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