THE NEW FUNDING REGULATIONS Presentation at the Annual Roadshow March/April 2013 Johann Engelbrecht

KEY ASPECTS OF THE FUNDING REGULATIONS ITEM IMPLICATION Mandatory grants drop from 50% → 20% Discretionary increase from 20% → 49,5% Possible reduction in submission of WSP/ATR ALL research funded from Admin Further pressure on limited admin budget Possible reduction in research budget 80% of discretionary to PIVOTAL May not be able to address actual needs in sector especially rural structures Other development work neglected 95% of all funds CONTRACTED Pressure on employers and SETA in making sure to allocate funds and employers train in the allocated time Focus exclusively on Public Providers May have impact on reaching rural areas Loose flexibility of private providers WSP/ATR submission date end April annually None Very complex WSP/ATR format May contribute to reduction in submission

BEFORE NEW FUNDING REGS DISCRETIONARY FUND CALCULATION ITEM BEFORE NEW FUNDING REGS AFTER NEW FUNDING REGS Gross est. levy income R265 000 000 Discretionary R114 120 000 R151 485 000 Statutory (20%/49,5%) R53 000 000 R131 175 000 Mandatory transfer (27%x40%/27%x20%)xR265m R28 620 000 R14 310 000 PIVOTAL (10% of levy/included above) R26 500 000 (included above) Interest/penalties R6 000 000 Project funding R29 000 000 R31 000 000 DRDLR (Coops/NARYSEC) R8 000 000 R10 000 000 NSF (Land reform) R21 000 000 TOT. DISCR/PR FUNDS R143 120 000 R182 485 000

DHET EXPECTATIONS / AgriSETA APP ITEM Learnerships Empl Learnerships Unempl Skills Prg Empl Skills Prg Unempl Bursaries Empl Bursaries Unempl Internships Artisans Graduate Placement TOTAL AgriSETA # VALUE 1 000 R17,838m 1 125 R34, 115m R4,281m 5 780 R27,559m 75 R2,676m 185 R6,600m 400 R14,270m 208 R9,265m 485 R17,303m 10 258 R133,303m

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