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Chapter Nine

9. Other NSDS implementing agentsThis chapter deals with the three institutions that have partnered with the Department in the implementationof the National Skills Development Stratagy. The chapter first gives a brief background of the institution andthen the type of programmes that the institutions are responsible for, then the progress and impact of thoseprogrammes.

9.1. INDLELA

Despite the ongoing assessment in the various trades, INDLELA has to focus on going one step further inensuring that all the people of South Africa are developed in the technical and vocational fields. This willensure that the necessary skilled labour force that is required will be established with the focus on small,medium and micro enterprises and thus ensure that a number of businesses are kick-started as a result.

9.1.1. INDLELA’s profile

There are currently three sections operating and these are:

1. Assessment Section2. Technical Training Section3. Finance and Administration Section.

9.1.1.1. Assessment Section

The INDLELA’s introspection has revealed the following shortcomings relating to trades assessment:

� The decline in the number of candidates coming through for assessment

� Under-utilisation of facilities

� High failure rate of candidates.

The above negative aspects can be attributed to, among others, the following:

� Poor preparation of candidates for trade tests

� Providers providing below standard training

� Low numbers due to providers charging exorbitant fees for preparation, etc.

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Below is the annual statistics of the candidates assessed during April 2004 to March 2005

Activity 1: Maintain current assessment

1.) The following number of candidates was assessed during April 2004 to March 2005, in thesections as indicated

9.1.1.2. Technical Training Section

The introspection has also revealed that INDLELA has to realign its core business and more emphasisshould be placed on technical training.

Skills programmes

The tool design and manufacturing is located in this section. This section will enroll learners from NQFLevel 2 – NQF Level 4.

There are many other training programmes that will be introduced over a period of time. There are no otherproviders in South Africa that have packaged training in this way; it can only be found at INDLELA and thisgives government the leverage of providing training to all South Africans. This training will ultimately berolled out to other institutions and INDLELA is leading the way. In future, hospitality courses will be offeredand the kitchen will be used for practical work.

SectionNo. of

technicalstaff

No. oftrade

AssistantsArranged Withdrawn Absent Tested Pass Pass %

AutomotiveEngineering 8 10 1 887 34 420 1 467 683 47%

ElectricalEngineering 8 8 1 562 20 266 1 296 541 42%

MechanicalEngineering 3 6 1 085 34 122 960 365 38%

Services,Manufacturingand ProcessTechn.

7 8 693 7 102 590 364 62%

Physical Planningand Const. 8 26 1 777 27 277 1 500 880 59%

Total 34 58 7 004 122 1 187 5 813 2 833 49%

Programme Duration Number of learners Partnership / feeder

Basic house wiring 40 days 14 FET College- TembisaCampus

Basic hand skills 40 days 12 TUT – SoshanguveCampus

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9.1.1.3. Small Industry (SMMEs) Development (Master Craftsman Section)

This section will concentrate on the development of a Master craftsman/Artisan programme. This willinclude crafts and jewellery processing.

It should also prepare training programmes for people in the rural areas. The training should blend with theresources available in those areas. People have to be trained in their own areas and be empowered tocreate jobs in those areas.

The Master Craftsman Model has the following features:

� The technical skills: theory and practical

� Business management and entrepreneurship

� Skills transfer.

This also allows an individual through a choice of selectives to take Master Industrial Practitioner or theMaster Entrepreneurial Craftsman which is for small industries (SMMEs).

The incubation process, venture creation, development of cooperatives and business development will bemanaged from this section. It will advise on all business related matters.

Pra

ctic

eTheo

ryPra

ctic

eTheo

ryPra

ctic

eTheo

ry

Advance technologyand design

Advance Leadership-, Management- ,and Entrepreneurship Skills

Skills transfertechniques

Skills transfertechniques

Skills transfertechniques

Advance Leadership-,Management- ,

and Entrepreneurshipskills

Advance Leadership-, Management- ,

and Entrepreneurshipskills

Advance technologyand design

Advance technologyand design

EXIT

EXIT

EXIT

Project work at company/enterprise site;Project and research work to enter in personal portfolio

of evidence

Project work at company/enterprise site;Project and research work to enter in personal portfolio

of evidence

Project work at company/enterprise site;Project and research work to enter in personal portfolio

of evidence

NQF 6 ; National Degree- Master Industrial

Practitioner- Master Entrepreneurial

Craftsman

NQF 5 ; National Diploma- Master Industrial

Practitioner- Master Entrepreneurial

Craftsman

NQF 5 ; NationalCertificate- Master Industrial

Practitioner- Master Entrepreneurial

Craftsman

Job opportunities- Functional management position in the

industrial sector- Entrepreneur of a small/medium enterprise

Job opportunities- Functional management position in the

SMME sector- Entrepreneur of a small/medium enterprise

Job opportunities- Line management position in the SMME

sector- Entrepreneur of a micro enterprise with a

limited range of products or services

10 20 30 40 50 60 70 80 90 100%

120 credits = 1200 notional hours

Master-Artisan Training and Qualification-Path (NQF Level 5-6)(stand alone qualification “National Certificate” at NQF Level 4 NQF Level 4 appliesto Trades/Crafts with Craftsmen at NQF Level 3)

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9.2. National Productivity Institute (NPI)

9.2.1 Collaboration with the Service SETA

In collaboration with the Service Seta, the NPI participated in the roll-out process of 14 NQF Level 4learnerships that were rolled out in Johannesburg, Pretoria, Durban, Cape Town, Polokwane, Nelspruit andEast London. NPI facilitators trained 1 369 learnership delegates during the period March 2004 to March2005. The enthusiasm with which the productivity lessons were received by the learners can be seen in thepost-classroom contact. The NPI facilitators have maintained this contact with learners who undertookproductivity measurement and improvement exercises in the organisations where they did practicalassignments. The NPI has maintained a close relationship and will continue to collaborate with Outlearning,the organisation employed by the Service SETA to project manage the learnership roll-out process.

9.2.2 Relationship with the Department of Labour’s Provincial Office inGauteng South

The NPI and the Gauteng South Office have developed a Memorandum of Understanding (MoU) for aproject aimed at improving productivity amongst predominantly Black emerging enterprises located withinthe jurisdiction of their labour centres. The purpose of this project is to assist the emerging entrepreneurs togrow their businesses through productivity improvement, in order to facilitate their entry into the mainstreameconomy.

As a pre-requisite, the NPI registered as a service provider with the Department of Labour in October 2004,as the project was to be funded through the National Skills Fund (NSF).

An important aspect of the project is the training of unemployed university graduates who will be used totrain emerging entrepreneurs identified in the townships, and nurture the enterprises to facilitate theirgrowth. Discussions are in progress to find a means of training private Education, Training andDevelopment (ETD) services providers to undertake the training of these emerging entrepreneurs, and aproposal to this effect has been dispatched to the Gauteng South Office.

9.2.3 Productivity Incorporated in qualifications aligned to the NationalQualifications Framework (NQF)

In furthering the NPI`s mission to ensure wide distribution of productive behaviour and competenciesthroughout the economy, Standard Generation Bodies (SGBs) and Sector Education Training Authorities(SETAs) were engaged to facilitate the incorporation of:

� Productivity unit standards in their qualifications

� Productivity specific outcomes in their unit standards

� Productivity in their learnerships.

These engagements have resulted in productivity being incorporated in 15 qualifications in the GeneralEducation Training (GET) and Higher Education Training (HET) bands.

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9.2.4 Productivity specific qualifications

The NPI has facilitated the incorporation of productivity in 42 SAQA-aligned qualifications as a means ofensuring that the South African economy has people equipped to advance organisational productivity andcompetitiveness. The incorporation of productivity in study material has been extended to the FET colleges`qualification and the national school curriculum.

This year two NQF Level 5 productivity-specific qualifications have been designed and developed: theCertificate in Productivity Management and the Diploma in Productivity Management. The qualificationswere designed in collaboration with the Generic Management SGB and submitted to the NationalStandards Body 06 for registration in February 2005.

9.2.5 National schools debates

The NPI is actively involved in creating awareness of productivity concepts through the national schoolsdebates in collaboration with the Provincial Departments of Education. The schools debates target youngpeople to eventually join the mainstream economy. They are sensitised about productivity concepts andtheir impact on the economy. This project also provides an opportunity to develop life skills such as publicspeaking, topic presentation and self-confidence. These skills are critical as young people further theirstudies, start their own businesses or join the labour market.

During 2004, the number of learners exposed to productivity awareness increased exponentially to 4 168due to more schools participating intra-provincially.

Productivity awareness workshops for educators and officials of the Department of Education reached 143participants: 53 more than was targeted due to the exceptional cooperation from provincial educationdepartments in the Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Mpumalanga, Northern Cape,North West and Western Cape.

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9.2.6. Sustainable SMME Initiatives

The NPI`s objective is to grow SMMEs into viable and sustainable concerns through productivityimprovement and increased competitiveness. We also work with micro enterprises to enable them to jointhe main-stream economy. This is implemented in partnership with provincial SMME directorates, labourcentres, donor agencies (Kellogg Foundation and Gold Fields Foundation), Eastern Cape DevelopmentCorporation, Tshwane Metropolitan Council, Manufacturing Advice Centres (now part of SEDA), and smallbusiness service providers.

Key results Area measure/indicator Results

Productivity mindset - 1 500 workers trained onproductivityproductivity improvement

- 1369 workers trained

- 78 emerging entrepreneurstrained

- 18 ETD service providerstrained on productivityimprovement

- 24 Business managerstrained on coordinatingproductivity improvement

- 75 ETD service providerstrained

- Training of 30 managerssuspended

- National school debates - 143 educators and officialsfrom DET attendedawareness workshop

- 4 168 learners exposed toproductivity awareness

- 25 Government managerstrained on coodinatingproductivity improvement

- Postponed

- Productivity incorporated in17 qualifications

- 15 qualifications withproductivity to be registeredby 3 SGBs

- 1 Productivity specificqualification completed andregistered

- 2 productivity qualificationssubmitted for registration

Research and Innovation - 2 cutting-edge solutions 3 new solutions developed:ID; COPI and PRODMIP

Regulatory and SocialProcesses

- 12 BEE procurementtransactions

- 12

- SETA accreditation 31 March2005

- Achieved

- NPI ETD QualityManagement System (QMS)by 31 March 2005

- QMS implementation inprogress

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9.2.6.1. Productivity awareness

A critical part of the NPI`s work is to enhance the productivity awareness amongst SMMEs and theirservice providers. This enables them to identify those factors that may impact positively or negatively ontheproductivity of their own enterprises and to manage them.

For the first time this year we conducted productivity awareness workshops with special focus on tourismSMMEs, emerging farmers, women and young entrepreneurs. The response was very positive andaltogether 336 SMMEs were reached.

9.2.6.2. Productivity coaches

The second programme developed by the NPI focused on developing productivity coaches to build theproductive capacity of SMMEs. These coaches are trained to assess and develop productivity improvementprojects with SMME and Micro business owners and workers. Three provincial SMME directorates(KwaZulu-Natal, Free State and Mpumalanga) have signed a Memorandum of Understanding with the NPIto train SMME productivity coaches in their provinces. A total of 37 productivity coaces have been trained(this provides capacity for 740 SMMEs annually). Currently, 336 SMMEs including emerging farmers,women, young entrepreneurs and entrepreneurs with disabilities have been assessed and allocated toproductivity coaches.

Productive Capacity Building Programme (PCBP) training for the productivity coaches and the SMMEs isincomplete due to the unsuitability of SMMEs that were recommended for the programme, leading torepeated SMME assessments that affected our time-frames negatively. Coaches were also not prepared forthe intensity of the work and the Free State experienced a 35% drop-out rate. This caused numerousdelays and increased the workload.

9.2.6.3. Developing existing SMMEs

Business student and SMME development

The NPI, in conjunction with Peninsula Technikon (Pentech), has undertaken an intervention whereby theoperational weaknesses of six clothing SMMEs were diagnosed and a programme of performanceimprovement was implemented for each SMME.

Pentech provided 12 volunteer students, who were mentored in the improvement implementation processand were given a practical factory experience. Simultaneously each SMME owner benefited from thestructuring of a suitable and factual garment pre-costing system. The system also facilitates aproduction-planning and line-loading system which, if used correctly, has a major beneficial impact onmanufacturing effectiveness.

This project, initially involving 12 students and six SMMEs, ran for a period of eight months from Februaryto October 2004.

100 Enterprises Incubation Programme

In 2004, the Provincial Government of the Western Cape initiated the 100 Enterprises IncubationProgramme to demonstrate their support for the SMME development. This ongoing programme is beingmanaged by the NPI`s Cape Regional Office. The objective of the programme is to assist newly establishedSMMEs to develop into growing and sustainable business entities. Assistance will be in the form oftechnical/functional expertise provided by the Department of Economic Development and Tourism and/orappointed consultants. The assistance will enable SMMEs to develop the knowledge, skills andtechnical/administrative infrastructure needed to enable the continued growth and sustainability of thefledgling business.

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9.2.6.3 Programme structure

Implementation

The result achieved for 114 enterprises (88% PDI-owned) included the resolution of arrear VAT issues,implementation of effective bookkeeping systems in 27 enterprises, tender applications and costing. Twoenterprises were assisted with renegotiating joint-venture and services-level agreements, 12 businesseswere assisted with re-costing their product services, dramatically improving their cashflow, and financialviability assessment were performed for over 50 of the enterprises.

9.2.7 Rural community initiatives

Rural communities have a high incidence of unemployment due to their geographic displacement frommajor markets. One of the NPI`s strategic objectives is to facilitate the inclusion of the marginalised throughmaximising the use of resources in the mainstream economy. This is achieved through maximising the useof resources in the community for the economic benefit. The NPI acts as a catalyst to bring the communityand its resources together, and to facilitate business linkages between the community and establishedbusinesses, thus facilitating the development of viable rural communities.

The process entails:

� Establishment of community structures

� Identification of sources of competitive advantage

� Development of business projects

� Linkage to economic resources such as finance and markets.

9.2.7.1 Mashabane community

This process is currently being piloted in KwaZulu-Natal at the Mashabane community, located in theUmhlabuyalingana Local Municipality. During the previous financial year the NPI had facilitated funding ofR1.2 million for the development of the local municipality. During this financial year, this funding wasincreased to R4 million. The municipality is utilising the funds for the development of a local business hubthat will provide both retail and manufacturing space.

Support was also provided by the NPI to the following selected businesses:

Key results Area measure/indicator Results

100 Enterprises IncubationProgramme

To provide assistance in the formof technical/functional expertise tonewly established SMMEs toenable them to develop intogrowing and sustainable businessentities

Since the start of the programmeon 3 January 2005, 108enterprises (95% of the total)have been engaged in thesupport process. More than 2 000hours were spent at theseenterprises.

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9.2.7.2 Arts and crafts

Funding was secured from the Department of Economic Development for product development and trainingof the crafters in design aspects. The crafters attended the SAITEX exhibition in Midrand. An excitingprospect is that the project has been linked to Woolworths, and the crafter’s have produced a trial order tothe client’s satisfaction.

9.2.7.3 Organic farming

The community has been linked with BioSwiss Industries to produce organic vegetables for the exportmarket. BioSwiss Industries will provide technical training and also purchase the produce for export. Soiltesting will be undertaken in the near future.

9.2.7.4 Bee-keeping

Umhlabuyalingana Local Municipality was linked with the Bee Foundation by the NPI and they will beimplementing a large-scale project to set up Mashabane people as bee keepers. The Foundation guaranteeoff-take of the honey produced.

9.2.7.5 Ground nuts

The community has been linked to a cultivation project and a five-year implementation plan has beenformulated. In addition, the NPI has conducted a preliminary research study on community-based ruralincome generated in order to inform the development of a rural community empowerment programmeinitiated in a partnership between the NPI and the Development Bank of South Africa. The study entailed anexamination of a sample of community-based rural income-generated projects to identify best practices aswell as lessons learnt with respect to their design and implementation.

9.2.8 Emerging farmers

The NPI is also developing a project designed to assist emerging farmers to develop into mainstreamfarmers. This project will assist them in utilising their current farm land effectively in order to sustainthemselves and to improve their standard of living as well as that of the surrounding communities.

For the pilot project productivity audits were performed in the Eastern Cape region for emerging farmers.These audits were conducted in order to establish their needs as well as the challenges that each farmerfaces, and also to ascertain their assets and current capacity. Ten emerging farmers were audited in Ugie,Port St Johns, Maclear and Mthatha. Of these, seven were selected to work within this project based on:

� Accessibility

� Willingness to participate

� High impact potential

� Management potential.

The audits focused on problem analysis, structural and assets assessment, farmers` needs, entrepreneurialand farming skills, farming techniques, support from key organisations, such as Agri SA and theDepartment of Agriculture, access to information, finance and capital, as well as training.

Preliminary results of the audits revealed constraints such as: outdated farming equipment or lack thereof,poor access to water, no access to finance, no electricity, poor roads network and transportation, poorsecurity in theft of livestock, inadequate skills and resources in disease management, no processing

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facilities, inadequate marketing/warehouse, no telecommunication systems, inadequate farming experience,poor access to information, unskilled labour, and poor servicing of loans. This project will be carried over tothe new financial year.

Finances

A full report on the finances is included in the NPI Annual Report for 2005. The report indicates thefollowing summary:

Revenue R50 587 567Expenditure R50 702 195Surplus/ (Deficit) (R114 628)

9.3 Umsobomvu Youth Fund (UYF)

9.3.1 Governance

The Board recently approved a Corporate Governance Manual. There have otherwise been no majordevelopments in this regard to report on.

9.3.2. Mandates

The UYF achieves its mandate by focusing on three programme areas being:

� Information and counselling to provide advice and referral of information to the youth on issuesrelating to economic participation

� Skills development and transfer aimed at providing life and technical skills and workexperience to unemployed youth. This is achieved through the School to Work programmetargeting scarce skills and the National Youth Service focusing on community service

� Youth entrepreneurship support aimed at providing business development support (such asbusiness planning), entrepreneurship education and enterprise finance to youth SMMEs.

Key Results Area Measure/ Indicator Results

Viable Rural Communities Viable rural communities 3income generating projectsestablished with initial sales ofproducts sourced from theMashabane community (pilot).

4 in-progress

- Secured R4million forprojects-initial has beenincreased from R1.2million toR4million

- Secured additional R250K forCraft project.

- Peanut project now includedin provincial initiative.

- Bee keeping projectsuccessfully linked to honeytraining and programme.

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9.3.3. Key issues (work with the Department of Labour)

� Labour centres: Training with the labour centres by the UYF is complete. Planning perprovince is underway including identification of pilot sites. The UYF is working with GautengSouth to be tabled at the PEMs forum

� National skills development programme: Various SETAs are supporting the FET Colleges’programme with the Department of Education pursuant to the memorandum it signed with theDepartment of Labour. Other SETAs (e.g CETA) support the National Youth ServiceProgramme

� National Venture Creation learnership: The Department of Labour is reviewing its positionregarding the National Venture Creation Learnership. Outstanding issues from the pilotsupported by DANIDA in KwaZulu-Natal need to be addressed

� Imbizo (outreach) programme: We continue to participate with the Minister’s Imbizoprogramme

� African Union Commission: We submitted a position paper regarding youth, poverty andunemployment. The UYF and the NEPAD Youth Secretariat are busy developing a proposal tohost an Africa Union Youth Conference which will lead to the adoption of the African YouthPolicy in November 2006.

9.3.4. Operations (key programme areas)

� Contact information and counselling: Up to 16 June 2005, the UYF had reached up to2 318 million youth through the youth portal, call centre and visits to the Youth AdvisoryCentres

� Skills development and transfer: There are 12 072 youth participating in National Youth ServiceProjects which have been registered with the National Youth Service Unit. There are 1 400young people in the 19 FET Colleges being supported by the UYF. A total of 10 additionalcolleges are being considered

� Business development services: By March 2005 6 171 youth owned businesses have beensupported with services such as business planning through the voucher programme. The

Entrepreneurship Education pilot programme is running in 30 schools affecting 180 teachers. Asuccessful entrepreneurship conference was held in Nelspruit

� Entrepeneurship finance: A total of 105 SMEs have been advanced in excess of R120 millionthrough the Franchise Fund (with business partners), Progress Fund with First National Bank(FNB) and the General Fund. A total of 1 500 youth micro enterprises have been supported tothe tune of R14 million.

9.3.5. Skills development and transfer

Below is a list of projects highlighting financial and beneficiaries’ statistics from currently contractedprojects, projects under consideration for approval and end by providing a snapshot of planned projects forthe 2005/06 financial year of the UYF.

List of current projects

Table 9.1 illustrates the number of currently contracted projects with youth participation. It is important toindicate that these figures are only representative of projects where funds have been approved and ServiceLevel Agreements have been or will be executed before 31 January 2005.The 2003/04 projects have been

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excluded since they have either ended or young people have graduated during 2004.

Table indicate a total financial commitment of R81 516 847.55 targeting 2 654 unemployed youth at anaverage cost of R30 714.71 per participating youth (inclusive of feasibility studies, programme developmentcosts, project management, travel allowances, post project support for participants and other costs relatedto implementing these projects). As indicated in the next sections, costs per participant are being reducedthrough the targeting of Public FET Colleges as training providers and more importantly, the mainstreamingof the National Youth Service within the Public Service to support service delivery, skills development andto create livelihood opportunities through the Expanded Public Works Programme.

Table 9.1: Current/approved projects (Period ending 31 January 2005)

National Youth Service Programme

Project name Sector Province Grantscommitted

R

Beneficiaries(direct)

Reach for Life Health Mpumalanga 1 490 960 20

Community Aids Response Health Gauteng 1 895 613 20

Siyanceda Project Health Western Cape 1 230 455 38

Midrand EcoCity Project Construction Gauteng 4 530 328 100

17 Shaft Youth Project Construction Gauteng 6 488 447 100

Educo Africa Environment Western Cape 5 639 982 24

WC Nature Conservation Board Environment Western Cape 5 528 149 84

South African Council of Churches Project SocialDevelopment National 2 587 050 270

29 390 984 656

School to Work Programme

Project name Sector Province Grantscommitted

R

Beneficiaries(direct)

NSA EMERGE Programme Accounting Gauteng andKZN 2 718 450 63

Treasury Development Programme Banking Gauteng 2 239 852 30

Master Network Engineering Diploma-JHB ICT Gauteng 5 520 356 50

Master Network Engineering Diploma-CT ICT Western Cape 6 164 52 50

Master Network Engineering Diploma-PTA ICT Gauteng 5 097 570 50

NERPO Project Agriculture Mpumalanga 3 790 988 42

Public Service ICT Internship Project ICT National 628,895 126

Dept. of Home Affairs Internship Project Governanceand Admin. National 2 500 000 250

Junior Insurance Administrators Learnership forYouth with disabilities Insurance Gauteng 1 236 988 50

29 897 626 711

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Public FET Colleges Programme

Project name Sector Province Grantscommitted

R

Beneficiaries(direct)

Maluti FET College Agriculture Free State 889 900 45

Umfolozi FET College Agriculture KZN 1 330 004 100

Taletso FET College Agriculture North West 621 400 50

Waterberg Agriculture Limpopo 821 900 50

Boland FET College Agriculture Western Cape 927 600 100

Coastal KZN FET College Engineering KZN 1 360 000 100

Orbit FET College Engineering North West 1 071 050 45

Gert Sibande FET College Engineering Mpumalanga 3 616 800 80

Ikhala FET College Engineering Eastern Cape 500 000 40

Lovedale FET College Engineering Eastern Cape 655 376 40

Ekurhuleni East FET College Engineering Gauteng 2 525 050 195

Capricorn FET College Engineering Limpopo 1 505 004 62

Northern Cape Urban FET College Engineering Northern Cape 521 050 40

False Bay FET College Engineering Western Cape 1 803 800 100

Eastcape Midlands FET College Manufacturing Eastern Cape 530,600 40

Tshwane North FET College Manufacturing Gauteng 1 316 000 100

Northern Cape Rural FET College - De Aar Manufacturing Northern Cape 721 592 40

Goldfields FET College Manufacturing Free State 835 600 40

Northern Cape Rural FET College - Kathu Mining Northern Cape 675 511 20

22 228 237 1 287

Total for SD&T (Approved and being implemented) 81 516 847 2 654

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Conclusion

As indicated above, the statistics presented here indicate a significant improvement in terms of the numberof participants (reach and scale) as well as the reduction in average costs per participant. This means moreyoung people can access UYF skills development programmes especially those in rural areas whereparticipation is compromised by the lack of accredited providers and employers capable of giving youthstructured occupational experience.

With respect to alignment with the NSDS, all current and planned projects are supported on condition theymeet minimum criteria which includes accredited learning, structures occupational experience or learning atthe workplace and exit opportunities being identified. The Public FET Colleges Programme for exampletargets colleges that are implementing NQF aligned programmes that respond to opportunities or localneeds. The criteria for the National Youth Service on the other hand stipulates that before projects can beregistered and supported financially, service activities should be structured (maintained), learning should beNational Qualifications Framework aligned and accredited and more importantly, exit opportunities (formalemployment, self-employment or further learning) should be identified.

With the possibility of accessing funds from the NSF to implement the National Youth Service, accreditedskills programmes and the New Venture Creation Learnership; possibilities abound to increase the portfolioof projects to facilitate youth access to skills development opportunities.

The achievement of the above targets largely depends on the availability of human and material resources.The inclusion of the National Youth Service, Public Service Internships and the recognition of PublicTraining providers (especially Public FET Colleges) in the final 2005-2010 National Skills DevelopmentStrategy will be a major milestone in this regard. This will in turn release UYF resources to cover ofprogramme development, monitoring, evaluation as well as overheads.

With respect to alignment with the NSDS, all current and planned projects are supported on conditionthey meet minimum criteria which includes accredited learning, structures occupational experience orlearning at the workplace and exit opportunities being identified.

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Chapter Ten

10. Conclusion and recommendations by theNational Skills Authority

10.1 Introduction

The National Skills Authority (NSA) is a statutory body appointed by the Minister of Labour to advise theMinister on matters related to skills development. The members of NSA are representatives of organisedlabour, organised business, the State, organisations of community and development interest.

The NSA received its mandate from Chapter 2 of the Skills Development Act, 97 of 1998 as amended. Thepurposes of the Act amongst others are to develop the skills of the South African workforce; to increase thelevels of investment in education and training in the labour market and to improve the return on thatinvestment; to encourage workers to participate in learnerships and other training programmes; to improvethe employment prospects of people previously disadvantaged by unfair discrimination and to redress thosedisadvantages through training and education and to ensure quality of education and training in and for theworkplace.

The functions of the NSA are mainly to advise the Minister on:

� the National Skills Development Policy and Strategy

� the guidelines on the implementation of the NSDS

� the allocations of subsidies from the NSF

� to report to him on the progress made in the implementation of the NSDS.

Since the launch of the NSDS 2001–2005 in February 2001, there have been substantial improvements inimproving the skills of the South African labour force. The process started slowly with all stakeholders tryingto determine their roles to realise the objectives of the strategy. The trends changed dramatically during thethird year of implementation signaling significant improvements in achievement of the strategy.

10.2 Achievements

The NSDS 2001-05 has been a great success. Although this did not seem to be possible during the firstyears of the strategy, we can now proudly say that substantial progress has been made. The followingachievements are worth noting:

� Most of the indicators were achieved and exceeded. In instances where the targets were notachieved, performance was recorded generally at above 80% of the target

� There were improvements in the participation of SMMEs in skills development initiatives withthe numbers having grown to almost 39%. Large companies participating have increased toalmost 79%

� The submission of a Workplace Skills Plan by government departments has increased to 69%even though submission of their Annual Training Reports is still problematic

� More learners are been registered on learnership programmes

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� The strategy has also succeeded in ensuring that more and more Blacks and women arebeing empowered through skills development initiatives and employment opportunities

� The social development programmes rendered also brought many positive changes in the livesof the poorest of the poor. The initiatives proved to be sustainable in most cases.

10.3. Challenges

It is fair to note that there were a number of challenges that were identified during the process. Many of thechallenges revolved around the capacity of the implementing agencies to deliver on their obligations. Thefollowing were some of the challenges worth noting:

� The information provided by some of the SETAs could not be verified and/or validated resultingin skewed results. Some of the targets could not be measured to make conclusive remarkswhether achieved or not

� It is still difficult to measure the success of learnerships per sector, National QualificationsFramework level and the types thereof through the National Learners’ Records Database

� It is still not easy to trace the learners to confirm their placement status

� Many of the learnerships though registered have not been active

� Some of the figures are aggregated and do not reflect performance per sector or province. Forexample, even though there is improvement of participation of SMMEs in skills developmentactivities, the types of SMMEs and/or their industries could not be identified

� The fact that some of the government departments do not contribute their 1% levy makes itdifficult to measure performance and compliance of government on skills development

� There are still disparities in the performance of provinces. Some are doing extremely wellwhereas others are performing poorly

� The governance capacity of SETAs still needs to be addressed to ensure improvement on theoverall achievement of the strategy objectives

� There are still gaps in the financial performance of SETAs especially around the managementand disbursement of discretionary grants. This was noted from the financial reports and thenumber of qualified financial statements by the Auditor-General

� Communication and marketing of the NSDS needs to be enhanced

� There are still wider problems regarding the evaluation, selection and support system forlearners during and after their training has been completed

� The improvement in the quality-effectiveness and cost-effectiveness of the qualitymanagement systems of SETAs

� There is a need to develop an information system that will effectively provide the requisiteinformation at all levels of implementation for all stakeholders to access

� People with disabilities targets were not achieved for most of the objectives

� Measuring the real impact of the strategy on economic growth and return on traininginvestment need to be done on a broader scale of organisations.

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10.4. Recommendations

The report comes at a time when the term of office for the NSA was ending. The NSA introduced thesecond phase of the NSDS which extends over five years from 2005 to 2010. The new strategy hasemphasised the need to achieve the equity targets and to accelerate broad based Black economicempowerment and employment equity.

The NSDS 2005-2010 was developed after extensive consultation with various stakeholders over a periodof two years. The strategy aims to tighten the gap and challenges realised during the previous strategy tomaximise the impact. The NSA has made the following recommendations to ensure improvedimplementation and achievement of the new NSDS 2005 – 2010:

� A national colloquium should be held to discuss progress made on skills development in thecountry

� There should be linkages between the SETAs, private providers, HESA, FET and othertransversal training institutions to strengthen the delivery of skills to the broader labour force

� There should be an alignment between the NSDS and provincial growth and developmentstrategies

� Increased and improved awareness of the NSDS

� Improved participation of all stakeholders in skills development initiatives.

Having said that the NSA’s term of office comes to an end soon, the new NSA once appointed has toensure that all systems are improved to maintain the momentum. The SETAs have been re-established andreorganised to enable them to make great strides in the implementation of skills development plans. TheNSA has ensured that there are new national skills funding windows to provide support to the achievementof the new NSDS. The SETA Grant and Service Level Agreement regulations have been published aslevers to the implementation of the new NSDS. All these have been designed to assist in takingdevelopment of skills of the South African labour force to greater heights and thereby improve the country’seconomic competitiveness.