Presentation to the Portfolio Committee on Higher
Education and Training
11 August 2010
Parliament of South Africa
Delegation
Mr. Ivan Molefe
-
Chairperson of the Board
Mr. Mike Wilson
-
Board member
Mr. Joel Dikgole
-
Chief Executive Officer
Ms. Daphne Matloa
-
Chief Financial Officer
Mr. Andile Sipengane
-
Chief Officer: Qualifications and Research
Dr. Hennie Zwarts
-
Chief Operating Officer
Presentation Structure
1.
Mandate, Budget and Strategic Plans 2010/11
2.
Budget analysis of the 2009/10 financial year
3.
SWOT Analysis of W&RSETA
4.
Provincial allocations and special projects for 2010
5.
Plans to reduce the high unemployment rate among young people
6.
Training providers and BEE status including allocation / budget spent per
provider
2010/11 Strategic Plans & Budgets
NSDS Indicator
Action Plan
Target
Projected
Budget
1 1.1 Update SSP
Develop 2011 – 2016 SSP
31 Aug ‘10
R3m
2 1.2: Scarce Skills Guide
Develop guide
600
R6m
3 2.1: WSP/ATR Large Levy Paying
Regions
290
R 230 m
4 WSP/ATR Medium Levy Paying
ISDF Project R 8m
Mandatory Grants for levy
paying organisations
545
5 2.5: Small BEE Firms and Co-ops
Support to Organisations
700
R 20m
6 2.7: NQF Level 1 & ABET
Interventions
AET Interventions
600
R 15m
2.2 WSP / ATR Small Levy Paying
HET
3307
2010/11 Strategic Plans & Budgets
NSDS Indicator
Action Plan
Target
Projected
Budget
7
2.8: Learnerships and Skills
Programmes
Concentration on
employed learners
2500
R 80 m
8
3.2: Small non-levy paying
organisations
Project RAVE II
1000
R 30m
9
4.1: Learnerships / Skills
Programmes
Concentration on
unemployed learners
650
R 40m
Artisans training
50
R 10m
10 4.3: New Venture Creation
2010/11 Strategic Plans & Budgets
NSDS Indicator
Action Plan
Target
Projected
Budget
11
Skills Centres: 1000
learners
2
R 30 m
12 5.2: NVC Providers
Accredited Training
Providers
2
R 500K
NSDS Targets
Action Plan
Target
Projected
Budget
13 SETA Accreditation
SAQA audit
Accreditation R 500K
14 Provincial linkages
Participation in Provincial 9
Skills Development
Forum
R 4,5 m
15 Governance SETA Board
Audits / Board / AGM
R2m
5.1: Institutes of Sectoral
Excellence (ISOEs)
Clean audit
reports
2010/11 Strategic Plans & Budgets
SETA Targets
Action Plan
Target
Projected
Budget
16 HET & FET Collaboration
Final year students enrolled
on scarce skills qualifications
offered a 12 months
sponsored work opportunity
with a monthly stipend.
2000
R 20 m
17 Inter-SETA Collaboration
Rural projects for learners
1000
R 50m
18 Management Development
Programme
Stakeholder committee to
develop programme
30
R 10 m
19 Women Development
Programme
Stakeholder committee to
develop programme
50
R 10 m
Priority 2 – NSDS 2.5
Skills for Rural Development and Co-operatives
 Collaboration with other SETAs eg. AGRISETA
 Partnerships with CBOs, NGOs & Co-ops should be considered to promote
community involvement;
 Partnership with FETs to build delivery capacity
 Market rural programmes through radio broadcasts – identified as a very
effective form of reaching the rual and deep rural areas
 Target: 1000 learners
Priority 3
Workplace Learning Opportunities to Accompany FET/HET
 Market work-based learning to 5 000 participating organisations to offer at
least 1 learner an opportunity;
 Target: 3 500 in small organisations, 500 graduates and 1 000 retrenched in
medium and large companies;
 Minimum 6 to 18 months work-based learning opportunities with stipend for
duration of Training
 Permanent employment opportunities if possible;
 Small organisations supported to implement work-based learning
 Training providers and training materials
 Work-based learning guide
Adult Education and Training – NSDS 2.7
 Refocus ABET to AET;
 Implement RPL to establish skills gaps;
 W&RSETA NQF Level 1 Qualification approved and Learnership
registered;
 900 learners currently on NQF Level 1 Business Practice
Learnership;
 Implement recently registered W&R NQF Level 1 Learnership
2009/10 Budget Analysis
STATEMENT OF FINANCIAL PERFORMANCE – COMPARISON TO BUDGET FOR THE
YEAR ENDED 31 MARCH 2010
`
ACTUAL
2009/10
R’000
BUDGET
2009/10
R’000
VARIANCE
Favourable
(unfavourable)
Skills Development Levy: Income
466515
Skills Development Levy: penalties and interest
4132
Other income
(213)
411920
0
54595
4132
(213)
TOTAL REVENUE
411920
58514
REVENUE
470434
2009/10 Budget Analysis
STATEMENT OF FINANCIAL PERFORMANCE – COMPARISON TO BUDGET FOR THE
YEAR ENDED 31 MARCH 2010
EXPENDITURE
Employer grant and project expenses
Administration expenses
TOTAL EXPENDITURE
(433782)
ACTUAL
2009/10
R’000
BUDGET
2009/10
R’000
VARIANCE
Favourable
(unfavourable)
(381474)
(52308)
(596172)
(52449)
214698
141
(648621)
214839
2009/10 Budget Analysis
STATEMENT OF FINANCIAL PERFORMANCE – COMPARISON TO BUDGET FOR THE
YEAR ENDED 31 MARCH 2010
SURPLUS /(DEFICIT) FROM OPERATIONS
Interest Income
NET SURPLUS/(DEFICIT) FOR THE YEAR
ACTUAL
2009/10
R’000
BUDGET
2009/10
R’000
VARIANCE
Favourable
(unfavourable)
36652
(236701)
273353
60854
72600
(11746)
97506
(164101)
261607
Strengths
 Provincial presence;
 Large constituencies – levy income;
 Sound governance (clean reports – AG, SAQA, DoL):
 Qualified staff (intellectual capital);
 Formalised policies;
 Performance Management System (PMS) for staff;
 IiP organisation – standard of good practice ;
 Efficient mandatory grant payment system;
 experienced and effective SGB;
 good reputation amongst stakeholders;
 responsive to sector needs;
 Career path and scarce and critical skills guide for the sector (qualifications framework);
 Stable leadership
Weaknesses
 poor SMME participation in rural areas;
 disbursement of funds;
 lack of W&R programmes in FETs and HETs;
 ratio of employees : training providers is not balanced;
 high learner drop out rates;
 poor stakeholder buy-in and participation;
 inadequate project management;
 fragmented SMME sector;
 inadequate communication reach;
 inadequate IT infrastructure
Opportunities
 Rural outreach and participation (require inter-SETA collaboration,
increase training and provider base;
 reduction of unemployment amongst youth and graduates;
 transition to DHET- opportunities for better collaboration with HETs;
 development of qualifications from NQF level 5 – 10;
 integration of work-based experience with curriculum;
 positioning W&R as career of choice (opportunity to provide progression from
school – university – workplace;
 proposed new landscape – transfer of Motor and Fuel Retail sectors;
 qualifications partner with QCTO;
 vibrant informal sector;
 emerging new trends – opportunities for qualifications;
 high number of unskilled people;
Threats
 SETA Relicencing by Minister of HET (new SETA landscape);
 registration as quality and assessment partner;
 cash reserves taken over by National Treasury;
 economic crisis / recession;
 drastic changes in legislation resulting in non-existence of the SETA;
 poor governance (placement under administration, financial management, Board);
 loss of credibility with stakeholders;
 fraudulent activities;
 sector is not preferred career of choice –sectoral determination base low, long
irregular hours;
 impact of SARS collection systems on levy income
Current Special projects
Limpopo / Mpumalanga
W&RSETA / P&L Hardware (R 990K)
Management development programme for 60 Managers to retain them within the company
and province
Eastern Cape
W&RSETA / South African Institute of Chartered Accounts (R 4,5m)
35 learners on pilot programme to address accounting skills within sector
Free State
W&RSETA / Free State Department of Public Works (R 4m)
30 learners on NVC project
2010 Projects
No. of
Learners
Project Name
Region
Budget
Grassroots
GP
R 10,020,000
200
Makro ABET for Deaf people 09/10
GP
R 255,000
138
DG 10/11 - Smollan
GP
R 18,480,000
560
DG 10/11 - Cashbuild
GP
R 660,000
20
DG 10/11 - Devland Cash & Carry WEEG
project
GP
R 300,000
20
DG10/11-Cecil Nurse WEEG project
GP
R 60,000
4
DG 10/11 - Duplix Liquids
GP
R 33,000
11
DG 10/11 - Ellerines
GP
R 150,000
10
DG 10/11 – GSM
GP
R 2,310,000
70
WSP/ATR 2010/2011
National
R 8,000,000
2010 Projects
Budget
No. of
Learners
KZN
R 5,500,000
300
DG 09/10 - Learnerships KZN
KZN
R 8,530,500
235
Perfect Match - New Venture Creation
KZN
R 1,046,000
20
DG 09/10 -Apex Stationers Learnership
EC
R 185,000
5
FastVents 22 CC Disability Learnership
EC
R 2,365,000
50
DG10/11
MP/ LP
R 5,808,000
160
Shoprite Special
WC
R 19,437,000
1000
DG 09/10 - Africa Skills Village
WC
R 1,248,000
25
DG 09/10 - Mason
WC
R 55,000,000
100
DG 09/10 - WEEG CPUT
WC
R 1,097,250
133
SMME Voucher System
National
R 51,054,000
8000
New Venture Creation
National
R 4,076,000
74
Project Name
Region
W&R SETA/ CTFL Project
Regional Allocations and Special Projects for 2010/11
KwaZulu Natal
FET/W&RSETA Collaboration (R 18, 6m)
 Train 300 learners on NQF level 1 qualification;
 300 NVC start up in Nkandla, Nambithi and Ugu
 Capacitaton of FET and BEE providers
Eastern Cape
Collaboration with St Thomas FET College (R 874K)
Train 50 deaf learners in food handling and bakery programmes. Learners to be
employed on completion of programme;
 Capacitate 12 facilitators, moderators & assessors
Future Projects
Eastern Cape
BEE Co-operative Skills Project (R 1,7 m)
 55 BEE co-ops supported;
 200 learners to be trained from Transkei and Ciskei
Just On Cosmetics (R 2,7m)
 Collaborate with EC Midlands FET public colleges;
 train 50 unemployed youth on NVC Learnership;
 50 small business in rural EC;
Future Projects
Western Cape
Upskilling Mathematics and Literacy skills of Matriculants (R 3,3m)
 500 grade 12 learners to prepare them for next level of learnership;
 Partnership with FET college
Crafters Project – non-levy paying (R 375K)
 350 levy paying owners / managers to be trained;
Free State / Northern Cape and North West (R 19,7m)
 Capacitate FET colleges in Motheo, Lejwleputswa, Maluti-a-Phofung and
Fezile Dabi to offer W&R qualifications;
 Capacitate FET colleges to become ISOEs
 200 learners to be trained
Reducing High Levels of Unemployment
Projects to address demand within sector to improve chances
of youth employment
W&R Scarce Skills Sponsorship Programme (R 50m)
2 000 Final year students and graduates to gain workplace experience on scarce
and critical skills
Workplace Experience and Employment Grant (WEEG) 2010/11 (R 253 m)
5 000 matric school leavers, unemployed graduates and retrenched W&R
employees to gain workplace experience in small companies.
Reducing High Levels of Unemployment
WEEG Project for FET Colleges (R 10m)
300 final year learners placed in companies to gain workplace experience;
partnership with WC Department of Economic Development and Tourism
Learning Programmes 2010/11 (R 100m)
2 000 learners on learnerships; 1 000 & 500 retrenchees on learnerships and
skills programmes respectively
Edcon (R 17,9m)
320 learners on learnerships
Reducing High Levels of Unemployment
eDEAF II (R 3,2m)
34 learners with hearing disabilities on skills programmes.
Thabo Mbeki Development Trust for the Disabled (R 8m)
100 learners enrolled on learnership programmes. 50 graduated in July 2010.
Makro Cadetship Programme (R 2,6m)
50 learners on cadetship programme. Learners will acquire BCom degree and
will be placed within Makro stores.
Training Provider Demographic Spread
Number of Training Providers
Provincial spread of Accredited BEE Training Providers
Budget Allocations to BEE Providers
Total funding
Provider Name
Region
Aluwa Training
GP
R 1 206,000.00
Asikhulume Training and Development
NC
R 0.00
B Wise Skills Development Consultants
KZN
Colatmse Institute
EC
R 45 455.00
Entercom
EC
R 2 130, 000.00
Grow Makhosikati Trading
MP
R 150 000.00
Khulisane Academy
GP
R 42 000.00
Kopure Business Trading and Consulting
FS
R 1 375 000.00
Letsatsi Learning Solutions (PTY) Ltd
GP
R 852, 000.00
Linganani Consultants T/A Phoenix
GP
R 175 000.00
Makwedeng Training Pty (Ltd)
KZN
R 525 000.00
R 3,171,000.00
Budget Allocations to BEE Providers
Total funding
Provider Name
Region
Marrian Ridge Computer Centre CC
KZN
R 9 019 800.00
Masifunde
WC
R 100 000.00
Perfect Match Enterprises
KZN
R 1,046,000.00
Siyathembana
WC
R 45 455.00
SPY-4-U
WC
R 136 000.00
Thahameso Training & Development Services
KZN
R 130 000.00
Thuto-Lore Academy
LP
R 220 000.00
Titan Skills Developers
KZN
R 441 000.00
Triple L Academy
WC
R 795 000.00
Thank you!
Questions and Comments, please