2. Why do we need a Skill Strategy?
South Africa is still one of the most divided countries in the
world…
Of our 40 million people
14 million are economically active
…..
Unemployed
4.6 million
Those
with
formal
jobs and
income
8 million
Supporting 14 million young and old people and 13
million others who are not economically active
Sme
1.4 m
3. Why do we need a Skill Strategy?
Poverty has a racial and gender face:
Of the 4.6 million unemployed 4.2 million
are black and 58% are women
Those
with
formal
jobs and
income
8 million
Supporting the 27 million people who are not
economically active - majority black
Sme
1.4 m
4. Why do we need a Skill Strategy?
Our population is young and thousands more
school-leavers are looking for jobs every year:
School leavers
1999 - 512 000
Unemployed
4.6 million
Those
with
formal
jobs and
income
8 million
Supporting the 18 million young people under the age of 20
Sme
1.4 m
5. Why do we need a Skill Strategy?
We need economic
growth & social
development
The unemployed
Those
with
formal
jobs and
income
Sme
6. Why do we need a Skill Strategy?
We need a Skill Strategy
to support Economic and
Employment Growth and
Social Development!
7. The formal sector must grow by becoming
more productive, competitive and overall
generating more jobs.
The SME sector must grow
Development sector initiatives must
support improved subsistence as well as
lay the basis for SME and formal sector
growth
Economic & employment growth and social
development?
8. Growth in the
Formal Sector?
1. Attract new direct investment for new jobs - both South African as well as
foreign.
2. Find and exploit new markets and new technologies for new jobs.
3. Promote labour-intensive sectors for more jobs.
4. Increase productivity and competitiveness across the board to secure
and expand jobs.
5. Support innovation, research and development as a source of ideas for
new jobs.
6. State to stimulate investment by enhancing infrastructure and supporting
entrepreneurs.
9. Skills for growth in the
Formal Sector?
Skills must complement
these initiatives &
sometimes they
can even
lead the way …
but skills
on their own
don’t make jobs.
Knowing HOW TO
do something doesn’t
mean you will be able
to find a job, find
clients, afford the
equipment you need,
or …
even want to!
10. Skills Development Strategy supports formal sector
job growth
Levy / grant system provides incentive for employers to skill workers ...
EnterpriseYear1
0,5%
ofpayroll
SARS
Year 1
50%
grant
Via DoL : 80% to SETA
SETA
20% to NSF NSF
11. Skills Development Strategy supports workplace
growth strategy
Grant
Skills Plan
Developed by Skills
Development
Facilitator and
Workplace Skills
Team
Grant is triggered by Skills
Plan
Skills Plan is prepared by
SDF and SD Team
12. Skills Development Strategy also supports formal sector
employment equity
Skills Plan must support
both
Growth Plan and Equity Plan
Growth Plan
Equity
Plan+
13. Skills for job growth in the
SME Sector?
Skills Development initiatives must compliment
other support measures:
Micro Credit
Technology support
Business support
Skills Development
Marketing & exports
14. Job growth in the
Development Sector?
Development interventions are those that
•improve the quality of life of the poor
•secure basic services and infrastructure
•lay the basis for rising standards of living over time through access
to new forms of income generation
Initiatives such as:
•Integrated Rural Development Strategy
•Urban Renewal Strategy
•Local Economic Development
•Spatial Development Initiatives (linked to formal sector growth)
Including programmes such as:
•Working for water (job creation for environmental protection)
•Community-based public works
•Building of houses, access to water, upgrading schools, roads etc.
•SME initiatives linked to local opportunities
•Youth Community Service
15. Skills for job growth in the
Development Sector?
Development Project
Project Skills
Plan for
development
project
Access to National Skills Fund by submission of
Project Skills Plan
administered by Provincial DoL: ESDS officers
Competent
people
implement
development
project
16. Skills for access to the LM
by the young
School-leaver profile
For 1999
512 000 sat for the matriculation examination
49% passed – 240 000
12% got exemption – 61 000
So…the rest have no qualifications…
Nearly quarter of a million young people in 1 year!
17. Skills for access to the LM by the
young
18(2) Learnerships
depend on learners being able to access
relevant work experience
Targets will be set, incentives designed and national campaigns conducted to
persuade employers
- be they large or small, public or private –
to provide work experience so
that young people can be assisted
to enter productive employment
18. National Skills Fund
Funding envelopes:
a. Development of learnerships & skills programmes
b. Learnerships
c. Skills programmes
d. Industry support for new investment
e. NSF services
Total projected income: R500 million
R100 m Fiscus
R160 m Levy income
R 15 m European Union
Other (Poverty Relief etc)
19. Skills Development Strategy supports
formal sector job growth
Sector Growth Strategy
Including industry policy, sme development and
social development initiatives linked to sector
Sector Skills Strategy
Supports sector growth strategy and is responsive
to Workplace Skills Strategies
Workplace Skills Plans
Supports workplace growth strategy and is
responsive to Sector Skills priorities
20. Skills development supports quality
lifelong learning
ALL Skills Plans
progressively
•Expressed as standards and qualifications
•Quality assured by SETAs and other ETQAs
•Provide learners with nationally accredited
certificates, which are industry recognized
•Provide the basis for further career pathing and
lifelong learning
21. SETA functions
1. Develop a sector skills plan
2. Implement its sector skills plan by
– Establishing learnerships
– Approving workplace skills plans
– Allocating grants
– Monitoring education and training in its sector
1. Promote learnerships by
Identify workplaces for practical work experience
Support the development of learning materials
Improve the facilitation of learning
Assist in learnership agreements / register agreements.
1. Apply to be accredited as ETQA with SAQA
2. Liaise with the NSA and employment services
3. Report to the Director General of Labour
22. Sector Skills Plan
Competitiveness analysis (drivers of change e.g. globalisation,
new processes, new products, new markets)
Service improvements for public service in sector
Equity and social issues (e.g. existing inequalities, legislation,
government policy)
Current skills profile and skills supply structure
Desired future industry strategy and objectives
Sector Plan actions – individuals, companies, SETA, education
and training providers
23. • Manpower
Training Act
• Guidance and
Placement Act
• Skills
Development Act
• Skills
Development
Levies Act
• Infrastructure and systems
• Institutions
• Capacity building (HRD)
24. Project 1: Capacity of DoL developed (PMU).
Project 2: Information systems for strategic planning
developed and operationalised.
Project 3: National learnership and skills programmes designed and
implemented
Project 4: National in-service training system developed and
implemented.
Project 5: Institutional capacity development for stakeholders
established.
Project 6: National funding system established.
Project 7: Education and Training Quality Assurers (ETQA) supported.
LMSDP: EXPECTED OUTCOMES
25. Project 8 : Provincial Implementation.
(Youth, SDIs and Social Plan).
Project 9: Effective Public/Private Partnerships established for the
effective delivery of ESDS through a regulatory framework.
Project 10: SDS Capacity building framework and programme
established
Project 11: Designated Groups
Project 12: Restructuring of Indlela
26. The National Skills
Authority
The National Skills
Strategy Steering
Committee
The National Skills
Strategy Executive
Committee
The Minister of Labour
8
Provincial
imple-
mentation
Project
Steering
Committee
7
ETQAs
Project
Steering
Committee
Capacity
of
DoL
Project
Steering
Committee
1
Strategic
Info
System
2
Project
Steering
Committee
Institu-
tional
capacity
5
Project
Steering
Committee
In-service
training
4
Project
Steering
Committee
3
Project
Steering
Committee
Funding
systems
6
Project
Steering
Committee
11
Designated
Groups
10
SDS
Capacity
Building
Project
Steering
Committee
Project
Steering
Committee
9
Project
Steering
Committee
Public/
Private
Partnerships
established
Learner
-ships &
Skills
Programme
s
The PMU
27. SA Project
Manager
EU Team
Leader EU Assistant
Team Leader
EU LT
Consultants
EU ST
ConsultantsPSC
Secretary
Financial
Controller
Project
Co-ordinator
28. Project Steering Committees
SA Project
Manager
EU Team
Leader
NSA
representatives
PSC
Secretary
SETA
representatives
Project
Co-ordinator
Other NSA
approved
representative
30. Skills Strategy for the NATION
E T
Q A
U R
I G
T E
Y T
National Skills
Development Strategy
Sector Skills Plan
Provincial Skills Plan
Workplace Skills Plan
Project Skills Plan
