NATIONAL SKILLS FUND
NSA CONSULTATIVE WORKSHOP
MPUMALANGA
2-3 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 PRIORITIES
a) Human Resource Development Priorities
agreed with the HRDC
b) Minister Priorities consulted and agreed with
the NSA
c) Priorities aligned to the NSDS, supporting
key MTSF priorities
d) Priorities identified by the DG, supporting
the purposes of the SDA
e) 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 Approach
Reactive approach
Proactive/Interventionist approach
Open Calls
Closed Calls (NSA Constituencies; FET Colleges; Govt Depts)
ii. Targeted skills training interventions/programme
iii. 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 criteria
i.
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 year
April to June each year
July to September each
October 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 visits
iv. Broad project reviews on half-yearly basis.
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NSF Performance, Income, Expenditure
NSF Income & Expenditure Analysis
3,000,000,000
2,500,000,000
Amount
2,000,000,000
1,500,000,000
Revenue
Expenditure
1,000,000,000
500,000,000
-
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7. Some key interventions: Current and planned
FET 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 projects
Total R4.2 billion investment over medium term
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7. Some key interventions: Current and planned
University 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 term
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7. Some key interventions: Current and planned
Government
• 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 FETs
NSF Funding supports the following
1. Expansion of NC(V) enrolments
2. Expansion of Report 191 enrolments (N1-N3 and
N4-N6
3. Skills Programmes
4. Learnerships & internships
5. Apprenticeships
6. Development of project management capacity
7. Development of College capacity (programme
accreditation & staff development)
8. Support to additional/replacement of teaching &
learning equipment
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7. FET EXPANSION PROGRAMME
PROVINCE
Eastern Cape
Free State
Gauteng
KwaZulu Natal
Limpopo
Mpumalanga
North West
Northern Cape
Western Cape
NATIONAL
R
R
R
R
R
R
R
R
R
R
BUDGET
250 710 272
116 592 490
362 072 198
689 431 306
390 256 957
100 471 053
85 334 536
103 535 678
401 604 978
2 500 009 466
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8. CONCLUSION
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•
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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