Jobs Fund Briefing – Innovation for job creation
Contents
1. Objectives and background
2. Performance to date
3. Current funding window
4. Funding criteria
5. Application process
6. How to access the application form
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Objectives and Background
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Problem Statement
• Despite periods of strong economic growth over the last
decade, South Africa’s level of unemployment remains high
• The official unemployment rate taken from the Labour Force
Survey Q1 2015/16 sits at 26.4%
• Roughly one in four South Africans in the labour force is
unemployed
• If discouraged workers are included (those who have given
up searching for employment) the unemployment rate rises to
approximately 34%
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Addressing The Unemployment Challenge
• To address the challenge of unemployment sustainably, South
Africa requires (amongst other things) high rates of sustained
economic growth
• The macro-economic policy environment, infrastructure asset
base, schooling system and regulatory frameworks are all key
determinants of the growth path
• The Jobs Fund is not intended to tackle these long-term, structural
causes of low growth and unemployment
• Many other government initiatives are directed at these challenges
• Rather, the Jobs Fund is an opportunity to complement these
efforts with a limited and targeted programme of support for
effective labour market interventions that promise job creation in
the short to medium term
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Jobs Fund Mandate
• The primary mandate of the Jobs Fund is to support initiatives that
pilot innovative approaches to employment creation
• To create 150 000 new jobs
• To learn from these innovative models and build a knowledge base
that can be used to contribute toward evidenced based policy
making
• The impact it seeks, is to contribute toward achieving positive
systemic impact on poverty reduction, through the catalytic projects
the Fund supports
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Background To The Jobs Fund
•
R9 billion fund administered by the National Treasury - GTAC
•
Launched in June 2011, completed 5 calls for proposals
•
Operates on challenge fund principles – allocation process is:
– Competitive
– Transparent
•
Co-finance innovative public and private sector projects with the potential to
contribute significantly to sustainable job creation
•
Jobs Fund Partners share risk and costs by matching the Jobs Fund allocation:
Emphasis on partnership and collaboration
•
Overcome barriers related to: cost, technology and infrastructure
•
Create 150,000 sustainable jobs (over the project portfolio implementation
period)
•
Focus on projects that benefit women and youth
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Funding Strategy - Challenge Fund Approach
• Challenge Fund Principles - open, transparent and competitive allocation
of funding
Open
• Public sector entities, local
authorities, NGOs and
business can apply
• Leveraging private sector
capacity to achieve public
sector goals
Transparent
• Clear application and
assessment processes
• Clearly communicated
criteria
Competitive
• Independent investment
committee
• Applications compete against
one another for funding
•
Open, public calls for proposals – targeted windows (Innovation)
•
Matched Funding
•
Funding Criteria are designed to maximise job creation i.t.o:
- Innovation, Impact, Sustainability and Value for money
•
Good practice project performance tracking, grant management, and Evaluation &
learning
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Performance to Date
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Jobs Fund Performance To Date
Projects
•
•
Four calls for proposals were completed in the period 2011/12 to 2014/15
The 5th call for proposals was sector-specific; it targeted the Agricultural Sector
and 18 new projects were approved in early September 2015
108 projects in total have been approved and 86 of those have been contracted
(CFP 1 to 5)
•
Funding (as at end June 2015)
•
•
•
•
R4.74 billion in grants committed
R2.63 billion in grants disbursed to the implementing projects
R3.54 billion in matched funding has been leveraged from project partners
Agricultural round – another possible R800 million committed
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Current Funding Window
Innovation For Job Creation
Cross-sectoral
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Definition of Innovation
Innovation is defined as a new product or process that either
unlocks long term job creation, or removes barriers to job
creation. The product or process does not have to be new in
absolute terms, but must be new to a given society.
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Innovation definition expanded
• New product, process or commercially viable business model that
either unlocks long term job creation, or overcomes barriers to job
creation.
• The product or process does not have to be new in absolute terms,
but must at least be new to a given society.
• This definition includes developments of adaptations of existing
products, processes and business models for use in new
applications or contexts.
• To be called an innovation, an idea must be replicable at
an economical cost and must satisfy a specific need(in this case job
creation).
• In summary, innovation is creating new value or capturing value in a
new way which consequently leads to job creation.
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Different forms of innovation
•
•
•
•
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Product/Service
– Introduces a new product or product improvement; or
– A change in what the product offers.
Process
– Developing a new way of doing things; or
– Changes in the way in which products/services are created or delivered.
Paradigm
– Changing the participants or direction of what is presently the dominant
paradigm. i.e. community ownership vs. commercially driven.
Market
– New or different structure / adding new participants
Organisation
– New or different organisational structure
– New or different participants within an existing organisational
structure/value chain
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Innovation Life Cycle
Stage of innovation:
1 - Initiate – begins with identification of a problem – define
vision, strategic intent
2 - Ideate – source ideas, brainstorming, seek inspiration
3 - Pilot - testing phase
4 - Operationalise – when pilot is successfully implemented
5 - Optimise – innovation can be improved
6 - Scale – replicate
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Jobs Fund focus
• Competitive applications from development stage 4
(operationalisation)
• Limited funding may be made available for applications within
development stage 3.
• Documentation must be available with reference to all the
stages the initiative has concluded
• Clear timelines on how project will progress
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Characteristics of an innovative project
•
•
•
•
•
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Initiative must be well documented
Designed for scale
Be collaborative
Designed for sustainability
Designed with the user in mind
Do no harm
Re-use and Improve
Source – Rockefeller Foundation & UNDP
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Monitoring & Evaluation
Allow for accurate recording and measurement of:
•
•
•
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Accounting /administration
Milestones
Key project indicators
Evidence
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Possible Interventions
• No preconceptions for innovation – a wide range of
interventions to be supported
• Innovation can be manifested in:
–
–
–
–
Products
Services
Funding model
Business model
• Projects should achieve:
–
–
–
–
Long-term, sustainable job creation
Innovative, scalable models of job creation
Skilled employees
Reduced barriers to job creation
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Funding Criteria
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Funding Criteria - Eligibility
• Minimum grant size of R10m and maximum of R100m
• Matched funding - 1:1 cash co-funding ratio
• Compliance with administrative requirements (tax clearance
certificates and annual financial statements for two years)
• Applicants must be solvent, have been operating for more
than two years (these criteria apply specifically to the lead
applicant)
• Applicants or partners to have a track record of more than
three years of technical experience in the area of interest
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Funding Criteria – Impact
• Innovation: Initiatives must comply with Jobs Fund definition
of innovation
• Contribution to systemic change: Applications that facilitate
long term, sustainable, systemic change to the labour market
will be given preference.
• Potential for job creation: Initiatives should demonstrate
clear ability to create and sustain new permanent jobs in the
long run, either directly or indirectly
• Sustainability. Initiatives should be able to convincingly
demonstrate a path to commercial sustainability beyond the
term of the Jobs Fund grant.
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Funding Criteria – Impact (Cont.)
• Additionality: The Jobs Fund aims to support initiatives that
would not have taken place without Jobs Fund support and
risk sharing, because other funders consider the risk of failure
too high or the projected financial return too low.
• Matched funding and value for money: The Jobs Fund aims
to leverage existing resources available within the economy.
The amount of matched funding provided within the
proposed intervention will be a key assessment criteria.
• Capacity to implement: Applicants must demonstrate
relevant experience, organisational capacity and key
capabilities.
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Application Process
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Who can apply?
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Private sector
Non-governmental organisations
Government departments
Municipalities
Cost and risk sharing required for:
- Ownership
- Impact
- Sustainability
• Matched funding benchmarks to be met
• Applications that exceed minimum matched funding ratios may be
considered more favourably
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Examples Of Ineligible Applications
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•
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Bail out of distressed companies
Start-up companies
Initiatives/applicants with no proven track record
Training activities not linked to job placement
Initiatives with large capital investment but minimal jobcreation potential
• Double dipping of funding, leading to double-counting of jobs
or duplication of government initiatives
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How To Apply
• Await opening of the relevant call for proposals
• Access the online application form on the Jobs Fund website
(www.jobsfund.org.za)
• Register on the site and create an application (online applications
are open & editable until call for proposals closes)
• If a concept is approved, a full business case will be required
• Contracting takes place once the business case budget and
monitoring plans are approved
• Once the contract is signed, an up-front portion of the grant value is
disbursed; subsequent tranches are disbursed on a quarterly basis
pending achievement of targets over the project lifespan
• The Jobs Fund website provides guidance
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How to access the application form
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GMS Landing page
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Apply to the Fund
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Registration on GMS
● Select the Registration Link
● Submit the applicable information
● Email Confirmation sent to applicants email address provided
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Complete Online GMS Application
● Click the green (“+”) to start your application (Home page)
● Complete Registration (Application Type, Business Sector, project name etc.)
● Being the application process
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Navigation – Application Tabs
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Completing the Concept note application
Validating and Submitting your CN Application
● Validate the CN Application to check that all the mandatory fields have been
completed
● GMS will return a validation report.
● When the validation report is blank, the CN Application will be complete and
ready for submission.
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Questions?
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Contact details
SURNAME
TELEPHONE
CELLPHONE
EMAIL ADDRESS
(012) 315 5349
060 965 1984
Sonja.Loggenberg@treasury.gov.za
(012) 406 9040
082 402 4825
Rulleska.singh@treasury.gov.za
(012) 406 9113
083 440 6723
Sean.scott@treasury.gov.za
Pieter Botes (012) 315 5705
081 400 2369
Pieter.Botes@treasury.gov.za
Sonja
Loggenberg
Rulleska
Singh
Sean Scott
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