Sector Profile: Isett Seta Labour Sector Profile: Isett Seta The following tables provide insight into the Isett Sector which comprises of the following sub-sectors: Information Systems (IT) Telecommunication Technologies Electronics 23/02/2019 ISETT SETA

# Of Companies by Size Company Size Companies % of Total 1-49 Organisations 4247 92.07% 50-149 Organisations 249 5.40% 150+ Organisations 117 2.54% Total Organisations 4613 100.00% 23/02/2019 ISETT SETA

# Of Employees by Company Size Total Employees Company size Population % of Total 1-49 47964 23.8% 50-149 21983 10.9% >150 131902 65.3% Total 201849 100.0% 23/02/2019 ISETT SETA

Scarce Skills Description/category of scarcity identified Related occupation Projected need over next 2 years Learning programme to address scarcity IT Technical Support (Hardware and Networking) IT System Development (Software Development incl. database) Physical and Engineering Science Technicians 316369* (Isett and Non-Isett) Isett = 116659 Non-Isett=199710 Skills programmes, internships and learnerships 2.1 Telecommunication Technology 2.2 Electronics (Dev. and Maintenance) Electrical and Electronic equipments mechanics and fitters 181550* Isett = 68296 Non-Isett=113254 3. Project management Project management 2232* Isett = 1100 Non-Isett=1132 Skills programmes and learnerships 4. Venture Creation (Entrepreneurship) Business Professionals 1648* Isett = 565 Non-Isett=1083 5. End User Computing Administrative Support Staff 4048* Isett =1123 Non-Isett=2925 Short course 23/02/2019 ISETT SETA

Labour SETA Profile 23/02/2019 ISETT SETA

NSDS 2001 – 2005 Achievements Indicator 1.1 – No of Workers at NQF 1 Labour NSDS 2001 – 2005 Achievements Indicator 1.1 – No of Workers at NQF 1 As at March 2005, 95% (baseline = 201,400) of employees in the ISETT sector had a qualification higher than NQF Level 1 on the National Qualifications Framework. Indicator 1.2 – No of workers on structure learning programmes As at March 2005, 63% (127675) of employees in the ISETT sector had been scheduled for structured skills development programmes of whom (13,850) have completed their programmes satisfactorily. Indicator 1.3 – No of enterprises that achieved national standard of people development As at March 2005, 13 enterprises have committed is starting to implement Investors In People (IIP), and 01 enterprise has already achieved the standard. 23/02/2019 ISETT SETA

Labour NSDS 2001 – 2005 Achievements Indicator 2.1 – No of large enterprises that received skills development grants As at March 2005, 104 enterprises with more than 150 employees were claiming grants. This represents 100% participation. Indicator 2.2 – No of medium enterprises that received skills development grants As at March 2005, 152 enterprises in the ISETT sector employing between 50 and 149 employees were claiming grants. This is 100% participation. Indicator 2.3 – No of learnerships available to workers in sector As at March 2005, 15 Learnerships were registered and made available across the ISETT sector. 23/02/2019 ISETT SETA

Labour NSDS 2001 – 2005 Achievements Indicator 3.1 – No of small enterprises that received skills development support As at March 2005, Independent Skills Development Facilitators were made available to all small businesses that required assistance. Large businesses were offered grants to assist small businesses with skills development as well. Indicator 5.1 – No of unemployed young people that entered learnerships or apprenticeships As at March 2005, 6,731 Learners have entered Isett Seta funded Learnerships and 1,546 have completed. No of learners on learners or apprenticeships that were placed in employment As at March 2005, 1,546 of Learners have completed Learnerships while 897 have been permanently placed or self-employed, and 652 are studying further. 23/02/2019 ISETT SETA

Annual Financials & Audit Results Labour Annual Financials & Audit Results SDL Income = R210,345,000 SDL income increased by R36.652m (21%) over previous year. About 8% of the increase was due to annual salary increases, nearly 3% due to increase in stakeholders in the ICT sector and 10% due to the adoption of the AC111 revenue recognition policy. Total Investment Income = R16,395,000 Investment income increased by R6.603m over previous year. R5.000m of this total relates to the previous year. The net movement from last year after reinstating the R5.000m is a decrease of R3.397m. The drop is brought about by the decrease in interest and the reduced capital amount invested in the current year due to accelerated learnership implementation. Total revenue = R265,981,000 Total revenue increased by R67.813m over previous year due to an increase of R36.652m,R6.603m & R24.842m on SDL,Invetment & NSF income respectively. Total expenses = R245,313,000 Total expenses increased by R46.411m from R198.902m in the previous year. This is made up of increases of R19.585m,R2.105m & R24.842m on Mandatory Grant,Administration & NSF expenses respectively. Expenses as percent of SDL Income =99% Expenses exclude NSF expenses. Net surplus / (deficit) = R20,668,000 The contribution to the net surplus is from investment income of R16.395m and the difference of R 4.271m is a net saving for the year. Total Cash & Cash equivalents = R168,615,000 This will be utilised for learnership projects committed in 2004/05 and Grant provision of R100.000m. 23/02/2019 ISETT SETA

Annual Financials & Audit Results Labour Annual Financials & Audit Results At the time of drafting this report, the final audit report had not been issued by the AG. However the preliminary report indicated that the following issues have been addressed: Treatment of VAT. NSF projects. The Fixed assets register. Opening balances relating to the 2004/05 period. The following actions will be taken to address the above: VAT – We have requested an extension of two months from SARS for the final submission of the Vat. The extension is from 30 September 2005 to 30 November 2005.A firm of consultants was engaged to look at the entire VAT treatment of the Grants system from the inception of the Isett to date. Fixed Assets – A project has already been initiated to ensure full compliance with the Companies Act of the fixed asset register. NSF – a separate set of general ledger accounts has been set up in order to account for NSF projects separately from Isett accounts. Thus all SLA’s signed with the vendors will now distinguish between the Isett and the NSF obligations and payments will be split accordingly between the two. Opening Balances – The discipline has already been put in place to close off the system (Great Plains) every month and do proper cut-offs from month to month. 23/02/2019 ISETT SETA

Committed Funds and Projects Labour Committed Funds and Projects The funds will be utilised as follows: R100.000m will be used for Grant payments. R68.615m will be used for Learnerships commitments. 23/02/2019 ISETT SETA

Move learners from NQF level 4 to 5 Labour Key Challenges for 2005 - 2006 Move learners from NQF level 4 to 5 Identify learners for venture creation Partner with employers on ICT Hubs Forge partnerships with FET/HED Institutions Forge partnerships with NGO/CBO and CO OPS Implement ABET as End User Program within ICT Develop new Learnerships for the Electronics sub-sector 23/02/2019 ISETT SETA