Micro Finance Skills Project Banking Sector Education and Training Authority (BANKSETA) 03 June 2003

BANKSETA Mission “To support and give effect to legislation by establishing an education, training and development framework to enable stakeholders to advance the national and global position of the banking sector.”

Governance Fully constituted Council Code of conduct King two Public Finance Management Act (PFMA) Audit Committee Internal Audit ( Gobodo) Unqualified Audit Reports Finance Committee Expertise Chief Financial Officer - First Rand/ Nedcor Remuneration Committee Formally agreed processes Annual research conducted by experts Business & Labour represented

Number of Organizations BANKSETA Membership Type of Organizations Number of Organizations Number of Employees Micro (1-5 employees) 1262 1276* Very Small (6 -10) 93 689 Small (11 - 50) 109 2569 Medium (51 - 150) 43 3550 Large (+150 employees) 160 137 550   1667 145 634 *Note: Although based on statistics gathered by SARS, the accuracy of this figure cannot be confirmed.

Major Constituencies Category of Contribution Number of Contributors Total Contributions Up To R 999 823 R 122 995 R1.000 toR9.999 128 R 462 102 R10.000 toR49.999 45 R 993 047 R50.000 to R99.999 12 R 900 175 Over R100.000 11  R 10 747 464

3 Levels of value add Operation and Infrastructure level Skills development level Strategic level

1 - Operation & Infrastructure Infrastructure to enable workplace skills planning & implementation reporting SMME friendly skills plan Web enabled submissions Call centre submissions Faxed submissions Contracted SMME assistance

WSP/WSPIG Participation 2003/2004 1-49 staff 9% 50- 149 staff 78% 150+ Staff 98% Grant Payment 2001 95 % 2002 96% 2003 96+ %

2 - Skills Development Incetivise employers to train Skills priorities Mandatory grants and Discretionary strategic grants Representative groupings to deliver sector specific products (Money Laundering Control Training) Skills priorities Leadership & management development Customer services & sales Financial Skills IT Skills Compliance Skills

3 - Strategic Level Scan for trends/changes impacting on the banking and micro finance environment in the short, medium and long term. Research and benchmarking Create a strategic plan based on results of research (3rd SSP) Beneficiaries: Designated groups SMME development Scarce skills SAQA/NQF

The environments and need for the MFSP Micro finance sector provides services to individuals and SMMEs. Bridges the gap between the traditional banking sector and the emerging market Lack of business knowledge, skills & professionalism. Consumer education Rights and responsibilities Financial literacy Entrepreneurial development

Micro Finance Skills Project - Overview - MFSP was established in 2002 Aims to develop skills in micro finance industry Three year, three phase project funded through a R 78 million grant from the National Skills Fund Unique approach: targets service providers & clients Recognizes the critical role that MFIs are playing in providing access to finance to the larger South African population

The project’s objectives To implement skills development initiatives: 1200 learners in micro-finance institutions over a three-year cycle between 2002 and 2004. 1200 SMME borrower enterprises by 2004. 6000 individual borrowers/consumers. To build capacity of Education providers BDS Service providers nationwide To research best practice models for the industry.

Development phase one July 2002n – Feb 2003 Training Development Curriculum Development Business Development Support Learner Support Learner selection Risk Management Loan Book Management Marketing Cash Management Customer Service Staff Management Training Provider Assessment

Delivery phase one: Feb 2003 – Aug 2003 Training: Pilot of 200 – KZN, WC and Gauteng Curriculum Reviewed & revised Learner Assessment Learner Selection Training Provider selection Business Development Support

Delivery phase two July 2003 – March 2004 Training: 400 MFI 500 SMME Borrowers 2200 individual borrowers 5 Provinces Curriculum Reviewed & revised Learner Assessment Learner Selection Training Provider selection Business Development Support

Delivery phase three: Feb 2004 – Dec 2004 Training: 600 MFI 700 Borrower 3800 individual borrower 9 nine province Learner Assessment Training provider selection Learner Support Business Development Support

Principles of the project Ensuring buy-in of stakeholders MFRC, MLA, MEA, Finmark Trust. Creating up stakeholder forums Strong focus on thorough research in all phases of the project Strong planning and management Incorporating and supporting SMME and BEE contractors

Project Governance & Management Project steering committee: organized labour, micro finance institutions & BANKSETA SDS consortium: Skills Framework, Deloitte & Touché, SAB &T (SMME , BEE and Traditional Corporate) Subcontracts (Total) BEE focus 68% Non-BEE 32% SMME 91% Non-SMME 9%

Expected Future Banking sector transformation MFI sector transformation Black Micro Finance/Lenders Association (To be established) Consolidation in the MFI industry

Concluding remarks Operational level Enabled providers Skills level Training programs & skilled people Strategic level Proper research & proper models for the implementation Developed initiatives that will enable sector growth

Thank You