Outline

• About UYF

• Programmes of UYF

• Description, Achievement, Lessons, Challenges Context (Conditions, Policies)

• Financial information

• Plans 2004 - 2006

Feb 1998 Budget Speech - Minister of Finance announces a levy on the demutualisation proceeds establish the UYF 

Sep 1998 Government Gazette - Demutualisation Act  

Oct 1999 Monies are transferred from SARS to the Umsobomvu Youth Fund account and placed a deposit with CPD 

Oct 1999 National Treasury begins the process of appointing the Board of Directors  

Nov 1999 Articles of Association drafted 

Jan 2000 Board of Directors appointed 

Feb 2000 Board of Directors meet for the first time 

Mar 2000 Board begins the process of appointing the CEO 

History

Jul 2000 Government Gazette amending the Demutualisation Act to exempt the UYF from income tax 

Aug 2000 Consultative Forum  

Jan 2001 CEO and COO are appointed 

Jan 2001 Strategic planning session between the Directors and Management to establish four key result areas for the UYF Mar 2001 Bankers, auditors and asset consultant are appointed 

Mar 2001 Work commenced on the internal structure, policies, procedures and systems to administer the UYF 

Mar 2001 Board of Directors approve the focus areas of the UYF 

Apr 2001 Recruitment process to fill 10 strategic posts begins 

History

INVESTMENTS & PROJECTS

Contact, Information & Counselling

Skills Development &

Transfer

Youth

Entrepreneurship

Youth information service-Youth line-Youth portal-Youth advisory centres-Youth Card

On-the-job Training / Skills Development-National Youth Service

School to Work (FETCs)

SME FinanceSME FinanceCooperative FundingMicro FinanceBusiness Development Support-Entrepreneurship Education-New Venture Creation Learnership-Business skills development voucher programme

Focus of the Fund

Commitments

TYPE NO of

PROJECTS

AMOUNT

Core projects 74 R589 million

M& E, CBR 16 R 13,6 million

TOTAL 90 R602 million

Targets*

Project Type Participants JobsYouth Advisory Centres 129,600 12,960 School to Work 4,010 3,409 Youth Service 1,450 1,160 Business Development Support 12,000 12,000 Entreprenuership Finance 1,570 12,100 Letsema Volunteer Campaign 1,500 30 Total 150,130 41,659

50 000 jobs by 2006

*At current funding commitment level

Participants to date

Programme Number of beneficiaries

1. Youth Advisory Centres 80 554

2. Youth Line 83 480

3. Business Development Services Voucher Programme 3 356

4. Entrepreneurship Education 10 000

4. Small & Medium Enterprise Finance 60

5. Micro Finance 1 015

6. Youth Co-operatives Finance 120

7. School to Work 2 236

8. Community Youth Service 990

9. Skills Training (including Volunteer Campaign) 1 572

10. Youth Portal 507 000

Total beneficiaries in excess of 650 000

EntrepreneurshipTarget

Market

Aspiring entrepreneurs

Start-ups

ExistingBusinesses

PROGRAMME AREAS

EF PROGRAM STRUCTURE

Progress Fund: R100 million Fund – provides finance from R100k to R5,000k to SMEs which are beneficiaries of procurement contracts.

Franchise Fund: R125 million Fund – provides finance from R150k to R3,000 for purchase of new or existing franchises.

General Fund: R90 million Fund – provides finance from R50k to R5,000k to SMEs which are not covered by Franchise or Progress Fund

Micro-Finance: Provides finance of up to R50k for start up or expansion of existing business.

Co-operatives: Provides finance to groups of people in co-operative up to R500,000 per co-operative

Micro: 1015 enterprises (2000 jobs)

SME: 60 SMEs (979 jobs)

Co-investment: R50 million (7:1)

Private sector involvement – Banks

High (50%) support for women in micro

Returns = 21%-22% (Portfolio)

Bank direct commitment of R160 million and indirect of R320 million)

Strong expression of interest from other Banks

Partnership in process with ECDC and Ithala

Achieved significantly more than Khula, Msele-Nedventures, NEF Ventures,

Equity Africa

ACHIEVEMENTS

2004/2005 PLAN

Approve R60 m loans/investments to SMMEs

SME (70), Co-operatives (28), Micro (1,208)

Leverage private sector finance = 2:1 (R340m : R170m)

Implement partnerships with ECDC, Ithala, MEEC, NPDC; Provincial

Investment Promotion Agencies and Provincial Departments

Create / preserve 3,000 jobs

Women-owned SMMEs = 60%

Design, develop, implement mainstream micro

Gross portfolio return >20%

MEDIUM TERM PLAN

Fully disburse in next 4 years

Co-investment target from 7:1 to 0.5:1

Create / sustain 17,000 jobs for mainly youth

67% (vs 50%) of SMMEs - women-owned

Successful mainstream micro-finance model

Successful mainstream co-operatives model

Lower cost of financing for micro-businesses and co-operatives

(partnership with SACCOL)

Gross portfolio return (>20%)

CHALLENGES Attracting private sector investment in SMME Increased private sector investment vs UYF influence Managing stakeholder expectations Managing growth Balance developmental & financial returns Maintain focus (especially if seen as successful) Balancing breadth / depth of programs Improving outreach Creating and strengthening partnerships Lower operating costs of programs / projects Lowering cost of financing to SMMEs.

Entrepreneurs

hipEducation

Youth in generaleducation & training

EE Target Groups

How Voucher Programme

Works

Client completes voucher application form

Undergoes assessment and identification of required intervention

Pays contribution (10%) into BDSVP account

Selects preferred SP from SP directory

Attends the approved intervention

Endorses voucher on completion of intervention

Provides continuous feedback to AA on the provision of services including final evaluation of the intervention

BusinessDevel

opment Services Voucher

Programme

i. First BDS Voucher in South Africa

ii. First electronic voucher in the world

iii. 18 month pilot in 5 provinces until March 2004

iv. Focus is on one-on-one business support services

v. Initial focus is on 5 sectors

vi Youth entrepreneurs access up to 4 vouchers to purchase services for pre-start up and business

improvement activities

vii. Voucher values range >< R1 500 & R23 000

viii. Youth are expected to contribute towards the costof service (minimum 10% contribution)

Business Development

Services Voucher

Programme

Since the commencement ofpilot a year ago more than 2 278 have been assisted

by the programme

Pilot SitesE. CapeGauteng

KwaZulu-NatalLimpopoW. Cape

Sectors/ Sub-sectors

ConstructionManufacturing

TourismICT

Agro-processing

Service ProvidersOver 100

approved SPswith relevantexpertise andexperience

PartnersComsec

Open for BusinessTBDCJunior

AchievementInstitute for Dev.

Services

ServicesBusiness PlanningAccounting & FinanceMarketingMarket Access Operations Management Product development Business Registration

Future Plans2004/5

Entrepreneurship Education

Review of entrepreneurship education programmes (UWC) and finalisation of EE strategy

Hosting of National Entrepreneurship Conference (EE, BDS, access to finance)

20 000 young people to be assisted to enhance their entrepreneurial skills.

BDS Voucher Programme

Roll out of programme to remaining provinces : Free State, Mpumalanga, Northern Cape & North West (RFP for SPs & AAs already issued)

Provision of business support to 6000 young entrepreneurs

Approximately 9000 direct jobs to be created/sustained through programme.

 

 

Role of Umsobomvu in NYSP

• In 2003 Implementation Plan was developed

and adopted by Cabinet

• The Umsobomvu strategy was to ensure that

there was a national framework which would

ensure the implementation of NYS to scale

• 5 000 young people will commence the project

in 2004.

• The responsibility for implementing this

programme falls to many agencies. UYF’s

responsibility is to resource the youth

development components.

• The National Youth Service Programme is an

initiative of the Presidency and managed by a

Project Partnership Team. Govt. dept. are

resource agents.

Role of Umsobomv

u

UYF will support the youth service

programme in a number of ways, including:

• Funding for the youth development components;

• Assisting with exit opportunities;

• Running capacity building for the institutions that

are managing the programmes; and

• Developing the training material and running the

training programmes for the technical advisors

and the programme and institutional assessors.

• Many of these roles are likely to be particularly

intense during the first phase of implementation.

• In the immediate term UYF is developing the scope

of the initial service projects with govt. departments.

Areas of service2004

• Department of Health 3 000

• Department of Social Development

500

• Community Development Worker Support

250

• MPCCs 250

• Conservation and environment 500

• Agriculture 500

• Infrastructure: 1 000

• Construction: 1 000

• Additional 500

The Sector plans agreed by the EPWP are

guiding the location and nature of projects.

Programme Description

School to Work

• The School to Work (STW) Programme is a strategic intervention

aimed at improving the employability of youth in high growth sectors

through the development of high level technical skills training and

work experience

• Targets unemployed matriculants & graduates

Programme Model

• Life & professional skills training for holistic development

• Technical skills training & entrepreneurship education to assist youth to acquire sufficient preparation for the world of work

• Structured work experience to develop learners’ occupational competencies & an opportunity to apply theory

• Case management (counselling support, mentorship, follow-up and aftercare)

Target Areas

• Accounting

• Agriculture

• Banking and Financial Services

• Engineering

• Information Technology

• Sport and Entertainment

• New sectors under FETC RFP

• Mining

• Manufacturing

• Agri-processing

• Engineering

External integration

Partnerships with Setas

• Poslec Seta: Learnership for People with Disabilities• Chieta: Medical Sales Representative Learnership• Insurance Seta: Formalisation of the RAF Internship into a Learnership

Benefits

• Joint project design• Co-funding• Access to employers• Integration of life skills & entrepreneurship education• Integration of Enterprise Funding and BDS for self-employment exit opportunities

Lessons Learnt (cont.)

2004-2005 Plans

• Formalise current projects into learnerships

• Contract 18 public FET colleges (34 proposals received)

• Increase provincial representation through FET colleges, parastatals & Setas. New projects in NW, NC, EC & FS

• Increase participants to 3500 by March 2005

• Increase employment rate to 90% through BDS & Enterprise Finance

• Increase partnerships

• Conceptualise Career Development Programme with DoE

The Public FET

Colleges Programm

e

• In line with our mandate, UYF has identified

DoE as a strategic partner to deliver skills

development interventions for unemployed

youth.

• UYF & DoE are currently finalising the

operational plan which will guide the

implementation of identified interventions,

one of which is to support public FET

colleges to deliver skills & learnership

programmes.

The Public FET

Colleges Programm

e

The FET Colleges Programme began in

February with the following investment

from UYF:

• Technical support to enable colleges to

consolidate various capacity building

interventions they have received.

• Technical support to assist colleges to align

their programmes with SETA requirements

• R18 million direct investment into training

programmes over the next 2 years.

Purpose and Nature

• CIC Project Purpose

• Young people make informed decisions about their

skills development, employment and self-employment

and are linked to sustainable livelihood opportunities (

What is CIC?)

Achievements since

2001

• UYF Institutional Infrastructure and Capacity

Developed

CDMP operational - Content Development and Management

Project (CDMP),

YouthConnect operational as of March 2004 YL (Call Centre) has serviced 60 000 callers in last year

Internet Portal now live!

SAY! to be launched in June 2004

• Service Provider Institutional Infrastructure and

Capacity Developed

13 YACs operational

YACs have serviced 86 554 direct beneficaries and

benefited 408 indirect beneficiaries

Achievements since 2001 -

Continued

• CDMP

46 Information Products developed in key

information areas and converted for the web (

CDMP Information Products)

Database of 18 000 Youth Service Providers

Database of careers and 900 bursaries

20 + Project Management Resources

developed

• IP has deployed an information site, corporate

site and also systems for the development,

management and dissemination of content (

Internet Portal Screenshot)

• SAY! is conservatively expected to reach 65

000 in Year 1 young people in 2004/5

CDMP Information

Products

Information Stream Titles

Employment

1. You and the Workplace: A Guide for Young People2. Using Labour Market Information: A Guide for Young People3. Fact Sheet: Special Public Works Programmes4. Industry Profiles

Entrepreneurship

1. From Idea to Opportunity: A Guide for Young People2. Getting Business Finance: A Guide for Young Entrepreneurs3. Starting Your Own Business: A Guide for Young Entrepreneurs4. Writing a Business Plan: A Guide for Young Entrepreneurs5. Starting a Co-operative: A Guide for Young People6. Networking Your Way To Business Success: A Guide for Young Entrepreneurs

Education and Training

1. Career Planning and Development: A Guide for Young People2. Education and Training Options in South Africa: A Guide for Young People3. A Learner’s Guide to Higher and Distance Education4. Careers and Occupations Directory for Young People

Citizenship

1. Fact Sheet: Establishing and Running Community Committees2. Fact Sheet: Types of Organisations Working In and With Communities3. Fact Sheet: How to Raise Funds4. Fact Sheet: Public Participation – Getting Involved in Decision-Making that will Affect Your

Community5. Fact Sheet: What are My Right s and Responsibilities as a Volunteer?6. Fact Sheet: Why Should I Volunteer?7. Fact Sheet: Making Use of Volunteers8. Is My Community Project Working? A Basic Guide to Evaluation9. Let’s Get Involved with Our Communities: A Guide10. Understanding My Community’s Needs: A Guide 11. Developing Life- Skills for Citizenship: A Guide12. Get Active! You’re A South African 13. My Rights and Responsibilities as a South African Citizen14. What Does Democracy Mean for Me?15. The Nuts and Bolts of Volunteer Programmes and Policy16. Understanding Volunteering: A Guide for Young People

Health and Wellbeing

1. Coping with Teenage Pregnancy: A Guide for Young People 2. Dealing with HIV/ AIDS in the Workplace: A Guide for Young People 3. Fact Sheet: Substance Abuse and Addiction4. Fact Sheet: Do I Have a Substance Abuse Problem?5. Fact Sheet: How Substance Abuse Affects Your life6. Fact Sheet: Sexually Transmitted Infections7. Fact Sheet: Preventing HIV/AIDS 8. Fact Sheet: Voluntary Testing and Counselling9. Fact Sheet: Positive Living10. Fact Sheet: Healthy Eating 11. Fact Sheet: The ABCs of Good Health12. Fact Sheet: Leisure and Fitness13. Safe Sex Revolution: A Guide for Young People

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Lessons Learned

• UYF Investments

UYF investments are skewed to infrastructure,

labour, capacity building and operational costs

Currenty the average YACs costs are:

o ± 45% on Infrastructure and Operations

o ± 40 % on Labour and Capacity Building

o ± 15% on Direct Programme Related (some

programme costs are built into Labour

costs)

• Scale and Sustainability will be achieved

through Partnerships (to be covered later)

Partnerships,

Sustainability and Scale

• Key Principles of Sustainability• Working through Infomediaries

• Deploying innovative dissemination tools – Internet Portal, Community

Print Media, Radio, On-demand Print, On-demand Mulit-media

Datacasting

• Through Partnerships with: GCIS – 2000 Points of Presence (POPs), databases of 5000 + government

services

MPCCs – projected 50 sites nationally

USA Telecentres – projected 100 sites nationally with internet connectivity

DoL Labour Centres – approximately 150 sites nationally

Local Governments - approximately 290 local governments

LoveLife Centres – as sites for info dissemination

Strategic partnerships with Youth Formations and Bodies – SAYC, NYC, etc.

Network of Municipal Libraries

Network of Higher Education and FET Institutions Libraries/ Student Centres

Mindset Livelihoods Channel – 800 000 households, 2000 schools

Community Radio – average of 80 000 listenership per station

• Use Youth Advisory Centres for learner recruitment

& reference purposes

CIC going forward

Key to CIC Impact:

• Move Information Content to where

Young People are – focus less on

physical infrastructure and more on

creating access

• Use ICT to effectively develop,

manage and disseminate content

• Target UYF investments to

information content development and

training of infomediaries

• Ensure integration with partners who

share common purpose

Performance

• UYF pioneering almost all the

initiatives in South Africa

• 2 years of programme experience.

Growing i.t.o geographic coverage

& scale

• Received R855 milliion, committed

R500 million to 88 projects. More

than 100 000 young people have

participated in UYF projects

Challenges

• Risk of being perceived as a panacea

• Improving access especially for rural

areas

• Launch of the “Take it to the People”

concept

• Recruitment of Prov. Coordinators

• Dependancy on partners

• Youth development agenda not

mainstreamed

• Diminishing resource base (sustainability)

• Capacity (internally & externally)

Challenges

• Capacity of Service Providers –

OD, accreditation, partnerships &

job development

• Formalise partnerships with the

public and private sector

institutions = sustainability