NATIONAL SKILLS FUND

NSA CONSULTATIVE WORKSHOPMPUMALANGA2-3 MAY 2013

THE NSF FRAMEWORK AND ALLOCATION OF FUNDS

LEGAL MANDATE OF THE NSF

Per Skills Development Act, 1998, as amended, a) Money in the fund may be used:

To fund projects identified in the NSDS as National Priorities,

To fund such other projects related to the achievement of the purpose of the Act as the DG determines and

The administration of the fund within the prescribed limit, as regulated from time to time.

A distinct perspective on the NSF

a) The NSF should be seen as a national resource that initiate and respond to national priorities

b) Must target gaps and complement resource shortages for national priorities

c) Promote & drive partnership based programmes

d) Should play a catalytic role in skills development (Across all sectors)

4. KEY FUNDING PRIORITIESa) Human Resource Development Priorities

agreed with the HRDCb) Minister Priorities consulted and agreed with

the NSA c) Priorities aligned to the NSDS, supporting

key MTSF prioritiesd) Priorities identified by the DG, supporting

the purposes of the SDAe) Skills Infrastructure priorities

c) Priorities aligned to the NSDS supporting key MTSF priorities

• New Economic Growth Path• Industrial Policy Action Plan• Skills to support rural development• Skills for a green economy• Skills for education and health• Skills to support the justice sector

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d) Priorities identified by the DG, supporting the purposes of the SDA

•Worker Education• Skills System Capacity• Training Layoff

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e) Priorities to address Skills Infrastructure

• Re-capitilisation of public delivery infrastructure

• Community Education Centres• Skills Development Institutes• State-owned enterprises

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5. KEY ELEMENTS OF THE FRAMEWORK

i. Grant ApproachReactive approachProactive/Interventionist approach

Open CallsClosed Calls (NSA Constituencies; FET Colleges; Govt Depts)

ii. Targeted skills training interventions/programmeiii. Targeted applicants/partners (i.e., DHET, State,

NGO’s, Co-ops, Agencies, Private providers)iv. Grant types (i.e. Pivotal, TLS, Co-op grants, Skills

planning & capacity building (public), etc)

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b) Eligibility criteriai. Two categories applicable to determine

eligibility, namely:Project eligibility: (Whether project supports

national priorities per NSDS, i.e., HRDSA, NGP, RDS, IPAP, etc; Implementation methodology, support of developmental imperatives)

Applicant eligibility: (Whether applicant possess requisite implementation capacity, governance & M&E structures, compliance to country’s laws, no history of fraud)

ii. Funding Exclusions: (Individual gain, disaster relief, once-off activities

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c) Application process

i. Unsolicited applications: Re-active approach to project funding.

ii. Solicited applications: Pro-active approach, in which NSF issues specific calls for proposal at given intervals, i.e.,January to March each yearApril to June each yearJuly to September eachOctober to December each year

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e) Monitoring and Evaluation

i. DHET/NSF Systems to ensure all funded initiatives/projects keep on track & reach planned outputs

ii. Project proposals to include impact indicators/milestones against which ongoing monitoring will be performed

iii. Monthly site visitsiv. Broad project reviews on half-yearly basis.

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NSF Performance, Income, Expenditure

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7. Some key interventions: Current and plannedFET SECTOR•R2.5bn over 3 years targeting FET Programme expansion and skills development programme offering- targeting over 100,000 learners•R1.5bn over 3 years targeting infrastructure re-capitalisation of FETC and facilitate expansion (Nation wide)•R153m to provide support the FET turnaround strategy (Governance, Financial management, planning, curricula matters•R64m in other individual FET projectsTotal R4.2 billion investment over medium term

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7. Some key interventions: Current and plannedUniversity Sector• R797m in bursaries for 2013, accumulating to R2.5 billion

over the medium term• R404m allocated to University of Pretoria to increase intake

in the MBCH and Veterinary Science programmes.• R212m to university of Johannesburg to t increase its

capacity to provide on the job training required to qualify in engineering studies

• R84m to assist the University of Walter Sisulu to upgrade the BCOM degree to CA accreditation

• R103m in individual university projects (social sciences,infrastructure)

Total University R3.3 billion investment over medium term15

7. Some key interventions: Current and plannedGovernment •R461m to support DHET capacity building initiatives (NAMB, HSRC,HETMIS and Wits projects)•R449m to public entities(Transnet,SAMSA,SAWIT,SEDA)•R359m to DPW (EPWP, artisans)•R339m to DTI (Tooling ,Monyetla,Graduate programme•R190m to DRLRD (NARYSEC programme•R118m to FS & KZN provincial government•R91m to selected SETAs (TLS,Land reform,public sector)•R111m to DCS for offender training•R13m to Defence (MSDS project)Total Government R2.13 billion investment over medium term

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Key Areas of Support to FETsNSF Funding supports the following1. Expansion of NC(V) enrolments2. Expansion of Report 191 enrolments (N1-N3 and N4-

N63. Skills Programmes4. Learnerships & internships5. Apprenticeships6. Development of project management capacity7. Development of College capacity (programme

accreditation & staff development)8. Support to additional/replacement of teaching &

learning equipment 17

7. FET EXPANSION PROGRAMME

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PROVINCE BUDGETEastern Cape 250 710 272R Free State 116 592 490R Gauteng 362 072 198R KwaZulu Natal 689 431 306R Limpopo 390 256 957R Mpumalanga 100 471 053R North West 85 334 536R Northern Cape 103 535 678R Western Cape 401 604 978R NATIONAL 2 500 009 466R

8. CONCLUSION• Neither the NSDSIII nor the NSF Framework can lay

claim to be a panacea of all our skills problem• Our success will depend on our vigilance against

anti-progress elements such as institutional problems, weak/problematic partnerships; resource wastage

• Given what we know about today’s socio-economic problems and the unpredictability of the economy, we need a measure of bold and decisive risk taking as well as a balanced and flexible approach to skills development.

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THANK YOU