NATIONAL YOUTH DEVELOPMENT AGENCY QUARTERLY REPORTING: PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION

Agenda Quarter 4, 2017 / 2018 financial year Jobs research

Quarter 4 (2017/2018)

Situational Analysis The Agency worked to ensure the final achievement of the Annual Performance Plan for the 2017 / 2018 financial year. Overall the Agency achieved 23 out of 24 Key Performance Indicators translating to a 96% achievement and spent 99% of its allocated resources for the final quarter.

Detailed QUARTER four (2017/2018) performance report

PROGRAMME AREA 1: ECONOMIC PARTICIPATION KEY PERFORMANCE INDICATOR STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2017/2018 ANNUAL TARGET 2017/2018 ANNUAL ACHIEVEMENT REASON FOR VARIANCE To provide socio-economic empowerment interventions and support for young people in South Africa Number of youth owned enterprises supported through Grant Programme 800 801   Target was overachieved due to partnership with KZN government Department of Economic Development which provided additional funding that enabled the NYDA to issue more grants to support entrepreneurs Number of beneficiaries supported with key fundamentals for success offered by the NYDA 18 000 21 808 Target was overachieved due to the high demand of BBBEE and Sales Pitch training that was the bi-product of outreach interventions where NYDA products and services were presented. Number of jobs created and or sustained through supporting entrepreneurs and enterprises 3200 4071 Target overachieved due to more grants issued from additional funds received from the Economic Department in KZN. This target is linked to the number of jobs that are created by grant funding beneficiaries

PROGRAMME AREA 1: ECONOMIC PARTICIPATION KEY PERFORMANCE INDICATOR STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2017/2018 ANNUAL TARGET 2017/2018 ANNUAL ACHIEVEMENT REASON FOR VARIANCE To provide socio-economic empowerment interventions and support for young people in South Africa Number of jobs facilitated through placements in job opportunities 5000 8586   Target was over achieved due to the partnership with Lulaway and Catalyx which assisted in job placements Establishment of the NYDA Youth Fund NYDA Youth Fund established (conceptualization, design and consultations) Annual target achieved Establishment of the NYDA Skills Fund NYDA Skills Fund established (conceptualization, design and consultations)

KEY PERFORMANCE INDICATOR  PROGRAMME AREA 1: ECONOMIC PARTICIPATION STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2017/2018 ANNUAL TARGET 2017/2018 ANNUAL ACHIEVEMENT REASON FOR VARIANCE To provide increased universal access to young people Number of young people provided with youth development information 1 500 000 87 673   Target was not met as outreach evidence was based on estimates which are not accurate due to the size and nature of events that were covered. However the achievement on estimated outreach was 1 475 367 Number of new Branches operationalised for young people to access NYDA information 2 Annual target met Number of new satellite offices operationalised for young people to access NYDA information 20 Number of new outreach vehicles procured for young people to access NYDA information Number of new information kiosks operationalised for young people to access NYDA information 4 6 Target was overachieved due to high demand by municipalities for NYDA kiosks to provide information to young people

PROGRAMME AREA 2: EDUCATION AND SKILLS DEVELOPMENT STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2017/2018 ANNUAL TARGET 2017/2018 ANNUAL ACHIEVEMENT REASON FOR VARIANCE To facilitate and implement skills programmes Number of young people skilled to enter the job market 64 500 74 313   Target was overachieved due to a high demand for the life skills programme by partners like the National Department of Rural Development To facilitate and implement education opportunities in order to improve the quality education attainment for the youth Number of youth supported to access higher education 500 504 The target was overachieved because Solomon Mahlangu family had to add people eligible for the scholarship

PROGRAMME AREA 2: EDUCATION AND SKILLS DEVELOPMENT STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2017/2018 TARGET 2017/2018 ANNUAL ACHIEVEMENT REASON FOR VARIANCE To engage young people in service activities geared towards fostering patriotism, social cohesion and nation building National Youth Service Unit reconfigured to deliver on its mandate NYS structure submitted for approval The NYS structure was approved by NYDA Board 95% of funded vacancies filled.   Target was overachieved as a result of a board decision to elevate the NYS programme and approve the structure to deliver on the mandate Norms and standards for National Youth Service Programme (NYSP) developed and capacity building interventions provided Approved norms and standards by NYDA Exco 10 capacity building interventions reports Norms and standards approved by NYDA Exco 17 capacity building interventions Target was overachieved due to government departments’ appetite to gain a better understanding of National Youth Service

PROGRAMME AREA 2: EDUCATION AND SKILLS DEVELOPMENT STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2017/2018 TARGET 2017/2018 ANNUAL ACHIEVEMENT REASON FOR VARIANCE To engage young people in service activities geared towards fostering patriotism, social cohesion and nation building National Youth Service Programme (NYSP) Central Information Management System developed Approved concept and functional specification for the management of the Central Information Management System by NYDA Exco Concept and functional specification for the management of the Central Information Management System approved by NYDA Exco Annual target met Annual planning Framework developed and 2018/19 NYSP plans finalised Developed NYSP Annual Planning Framework and finalization of the 2018/19 plans NYSP Annual Planning Framework developed and 2018-19 plans finalised NYSP Communication and Marketing plan developed and implemented Developed the NYSP Communication and Marketing plan and phase 1 implemented NYSP Communication and Marketing plan developed and phase 1 implemented Number of National Youth Service Programme projects registered 55 68 Target overachieved due to an increased appetite for government departments to register projects and align with NYS norms and standards   Number of young people enrolled and participating in the NYS Category 1 500 765 Target overarched due to a concerted effort by the NYDA to engage government departments to implement NYS Category 1 Number of young people enrolled and participating NYSP category 2 and 3 expanded volunteer 10 000 13 778 Target was overachieved due to the introduction of the NPO incubator programme and its alignment to category 2 and 3 expanded volunteer programme

PROGRAMME AREA 3: RESEARCH AND POLICY KEY PERFORMANCE INDICATOR STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR 2017/2018 TARGET 2017/2018 ANNUAL ACHIEVEMENT REASON FOR VARIANCE To create and produce information and knowledge for better youth development planning and decision making Number of programme evaluations and stakeholder satisfaction surveys conducted 8 Annual target met To mobilise and leverage financial resources from key stakeholders Total value of funds sourced from the public and private sectors to support the youth development programme base R108 million R120 million Target overachieved due to willingness of investors in the NYDA products and services   To lobby key stakeholders to support and implement youth development programmes Number of public and private key stakeholders lobbied to implement youth development programmes 10 17 Target overachieved due to willingness of stakeholders to partner with the NYDA

Financial performance Quarter four 2017 / 2018

Quarter four financial performance – Annual budget Key Programmatic Area Annual budget Q4 Actual Percentage Budget classification Economic Participation R 76,551,615 R 77,504,933 101% Decent employment through inclusive economic growth Education and skills development R 74,267,999 R 73,598,622 99% Quality basic education & decent employment through inclusive economic growth National Youth Service R 33,960,882 R 32,232,033 95% Nation building and social cohesion Service Delivery Channel R 21,654,216 R 21,376,999 An efficient, effective and development orientated public service Research and Policy R 5,421,600 R 4,947,931 91% Administration R 70,737,670 R70,108,832 Employee costs R 163,500,000 R 163,967,836 100% CAPEX R 11,000,000 R 11,369,791 103% An efficient, effective and development orientated public service Total R 457,093,982 R455,107,017

Per economic classification Key Programmatic Area Annual budget Q4 Actual Percentage Goods and services R 282,593,982 R 279,769,390 99% Employee costs R 163,500,000 R 163,967,836 100% CAPEX R 11,000,000 R 11,369,791 103% Total R 457,093,982 R455,107,017

Quarter four financial performance – budget chart

Quarter one 2018 / 2019

Situational analysis The NYDA hosted the June Month program across the country with an increased level of roll out of products and services during the month and the main event hosted in collaboration with the Department of Arts and Culture and the Gauteng Provincial Government at Orlando Stadium in Soweto. The Agency further hosted the BRICS Youth Summit as part of the BRICS activities which culminated in BRICS Youth adopting two important policy decisions put forth by South Africa being the establishment of a BRICS Youth Secretariat and representation of youth in the BRICS Business Council. The Agency received a fourth successive clean audit from the Auditor General of South Africa and a performance achievement of 96%. We have continued with the rollout of new district centers with five new centers established during quarter one. Building on the clean audit we are lobbying for funds for youth development and have received R1.5 million from DESTEA and have submitted a proposal to MTEC. NYDA has achieved 65% of Q1 targets and expended 85% of Q1 budget and 16% of annual budget.

Detailed quarter one 2018 / 2019 performance report

PROGRAMME AREA 1: ECONOMIC PARTICIPATION KEY PERFORMANCE INDICATOR STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR QUARTER 1 TARGET QUARTER ACHIEVEMENT REASON FOR VARIANCE To provide socio- economic empowerment interventions and support for young people in South Africa Number of youth owned enterprises supported through the Grant Programme 50 105 Individuals – 15 Enterprises – 80 Cooperatives – 10 Target was overachieved due to new policy review which allows branches to approve grants up to 100k Number of beneficiaries supported with business development support services offered by the NYDA   3900 4689 - BMT – 1512 - Governance Training – 347 - Sales Pitch – 689 - BBBEE – 492 - Linkages – 55 - Mentorship – 1307 Vouchers – 287 Target was overachieved because trainers have been assessed and can now fully implement ILO training programme Number of jobs created and or sustained through supporting entrepreneurs and enterprises 260 806  MKL - 98 Voucher – 425 Grant - 283 Target was overachieved due to the improvement of Grant, Voucher and MKL performance which are the programmes that contribute to jobs created and sustained. Number of jobs facilitated through placements in job opportunities 250 1678 This is due to stakeholder relations between NYDA and service providers that facilitated placements

PROGRAMME AREA 1: ECONOMIC PARTICIPATION KEY PERFORMANCE INDICATOR STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR QUARTER 1 TARGET QUARTER ACHIEVEMENT REASON FOR VARIANCE To provide socio- economic empowerment interventions and support for young people in South Africa Establishment of the NYDA Youth Fund Develop the project plan Draft project plan developed but not approved   Target not met due to project plan not approved Establishment of the NYDA Skills Fund Approved project plan by NYDA management To provide increased information and universal access to young people Number of young people provided with youth development information 389 250 48 666 Outreach – 31 359 CRM – 17 307 Target not met because evidence for outreach was based on estimates that are not reliably and verifiable Number of new Service Delivery Channels established and operationalised for young people to access NYDA information No target 5 Kiosks - 0 Satellites - 5 Branches - 0 Outreach vehicles -0 No target for Quarter 1, but there is achievement of 5 satellites established and operationalized To lobby key stakeholders to support and implement youth development programmes Number of public and private key stakeholders lobbied to implement youth development programmes 4 Sasol Pride factor Qunu workforce Moripe PTY, LTD Quarter 1 target met

ESTABLISHMENT OF BRANCHES & DISTRICT OFFICES KEY PERFORMANCE INDICATOR STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR QUARTER 1 TARGET QUARTER ACHIEVEMENT REASON FOR VARIANCE To provide increased information and universal access to young people Number of new Service Delivery Channels established and operationalised for young people to access NYDA information No target Established  Groblersdal Thabazimbi Tzaneen Ladysmith Mahikeng No target for Quarter 1, but there is achievement of 5 satellites established and operationalized QUARTER 2 TARGET 6 To be operationalised  Sedibeng Ekurhuleni (Branch) Alfred Nzo OR Tambo (Branch) Kuruman Pietermaritzburg

PROGRAMME AREA 2: EDUCATION AND SKILLS DEVELOPMENT STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR QUARTER 1 TARGET QUARTER 1 ACHIEVEMENT REASON FOR VARIANCE To facilitate and implement skills programmes for young people Number of young people trained to enter the job market 18 000 20 615   Life Skills – 12 586 Job Preparedness - 8029 This target was met due to invites by government departments to train their beneficiaries on their programmes which we supported as NYDA. To facilitate and implement education opportunities in order to improve the quality education attainment for the youth Implement the Solomon Mahlangu Scholarship programme No target N/A

PROGRAMME AREA 3: RESEARCH AND POLICY KEY PERFORMANCE INDICATOR STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR QUARTER 1 TARGET QUARTER 1 ACHIEVEMENT REASON FOR VARIANCE To create and produce information and knowledge for better youth development planning and decision making Number of stakeholders satisfaction surveys conducted 1 Quarter 1 target met Design Corporate Strategy and Planning structure aligned to the Integrated Youth Development Strategy (IYDS) Reviewed Corporate Strategy and Planning (CS&P) structure and approval by NYDA management  Target not met Draft structure referred to HRR committee for recommendation Review of M&E Framework and aligned to the Integrated Youth Development Strategy (IYDS) Reviewed M&E Framework and aligned to the Integrated Youth Development Strategy (IYDS) Reviewed M&E Framework aligned to the Integrated Youth Development Strategy (IYDS)

PROGRAMME AREA 4: ENHANCED PARTICIPATION IN NYS STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR QUARTER 1 TARGET QUARTER 1 ACTUAL REASON FOR VARIANCE To engage young people in service activities geared towards fostering patriotism, social cohesion and nation building Protocols, procedures and coordination tool developed and implemented for National, Provincial and Local Government   Develop protocols, procedures and coordination tool Protocols, procedures and coordination tool developed Quarter 1 target met Facilitate the development of Annual Plans by Government Departments for 2019/2020 Develop a facilitation roll out plan Facilitation roll out plan for annual roll out developed Number of National Youth Service programme (NYS) projects registered 10 Number of young people enrolled in the NYS Category 1 500 713 The response on NYS support for category 1 partners continues to yield very good results Number of young people enrolled in NYS Category 2 and 3 Expanded Volunteer Programme (EVP) implemented 12 500 11 956 Target not met due to late evidence submitted by the NPO’s than expected and these are small NPO’s led by young people and still on the learning curve on how to do youth development work

PROGRAMME AREA 5: GOVERNANCE AND ADMINISTRATION STRATEGIC OBJECTIVE KEY PERFORMANCE INDICATOR QUARTER 1 TARGET QUARTER 1 ACTUAL REASON FOR VARIANCE To establish a credible, efficient and effective organization Implement the Human Resource Strategy Finalise phase 1 of the HR strategy Phase 1 of the HR strategy finalised and close out report submitted. Quarter 1 target met Implement an Integrated Marketing and communications Strategy Finalise phase 1 of the Integrated Marketing and Communications strategy Phase 1 of the Marketing and Communications strategy finalised and close out report submitted Payment of legitimate service provider invoices within the 30-day period 100% of legitimate service providers paid within the 30-day period 100% of legitimate service providers paid within the 30 day period

SUMMARY OF PERFORMANCE More stringent verification measures were applied in 2018/2019 Quarter 1 based on inputs from the External Audit process. Data collection measures have been applied across all programmes.

GRANTS BREAKDOWN PER SECTOR These sectors are as defined in the Customer Relationship Management (CRM) system application adopted by the NYDA. Most grants (62%) were issued for personal services e.g. saloons, spas, car wash and catering, Manufacturing services, e.g. brick, furniture and clothing manufacturing constitute 15% of grants were issued Retail services, e.g., shops, exports and imports constituted 11% of grants issued. The other sectors e.g. Agriculture constitutes 6%, construction 3% and other non-specified business types constituted 3%.

GRANTS BREAKDOWN BY AGE In Quarter 1 grants were highly consumed by young people between the ages of 31 – 35 who constituted 35% of the grants issued, followed by those aged 27-30 at 32%. There was a lower consumption for young people between the ages of 19-26.

JOBS CREATED AND SUSTAINED Jobs created and sustained are acquired from three programmes, namely; Market Linkages Programme, Voucher Programme and Grant Programme. Voucher programme contributed more to job creation. The low issuance of grants in Quarter 1 led to fewer jobs being created. Through Market Linkages jobs were created because the programme enabled young entrepreneurs to be linked with business opportunities.

Quarter one 2018 / 2019 financial performance

Medium Term Strategic Framework outcome Annual Budget 2018 / 2019 Key Programmatic Area Budget allocation 16 / 17 17 / 18 18 / 19 Medium Term Strategic Framework outcome Economic Participation R59 253 300 R 76,551,615 R 73 853 745 Decent employment through inclusive economic growth Education and skills development R74 099 686 R 74,267,999 R 64 714 815 Quality basic education & decent employment through inclusive economic growth National Youth Service R56 802 100 R 33,960,882 R 27 849 802 Nation building and social cohesion Universal access to opportunities R24 611 821 R 21,654,216 R 31 534 422 An efficient, effective and development orientated public service Research and Policy R10 173 573 R 5,421,600 R 9 730 000 Administration R69 283 719 R 70,737,670 R 76 593 810 Employee costs R145 529 300 R 163,500,000 R 170 000 000 CAPEX R12 000 000 R11,000,000 R 34 700 500 Total R451 753 500 R457 093 982 R 488 977 094

Quarter one financial performance – Annual budget Key Programmatic Area Annual budget Q1 Actual Percentage Budget classification Economic Participation R 73 853 745 R 11 592 873 16% Decent employment through inclusive economic growth Education and skills development R 64 714 815 R4 081 653 6% Quality basic education & decent employment through inclusive economic growth National Youth Service R 27 849 802 R 2 546 511 9% Nation building and social cohesion Universal access to opportunities R 31 534 422 R5 567 391 18% An efficient, effective and development orientated public service Research and Policy R 9 730 000 R719 507 7% Administration R 76 593 810 R 15 294 389 20% Employee costs R 170 000 000 R 36 082 621 21% CAPEX R 34 700 500 R 2 369 791 An efficient, effective and development orientated public service Total R 488 977 094 R 78 254 736

Quarter four financial performance – YTD budget Key Programmatic Area Q1 budget Q1 Actual Percentage Budget classification Economic Participation R 14 463 436 R 10 592 873 80% Decent employment through inclusive economic growth Education and skills development R 4 178 403 R3 368 660 98% Quality basic education & decent employment through inclusive economic growth National Youth Service R 4 962 405 R 2 546 511 51% Nation building and social cohesion Universal access to opportunities R 6 883 605 R5 567 391 81% An efficient, effective and development orientated public service Research and Policy R 1 432 500 R2 432 500 50% Administration R 19 148 453 R 15 294 389 Employee costs R 36 500 000 R 36 082 621 99% CAPEX R 4 500 000 R 2 369 791 53% An efficient, effective and development orientated public service Total R 92 068 802 R 78 254 736 85%

Budget analysis Description Annual Budget 2018 / 2019 Quarter 1 Actual Administration R6 641 836 R704 011 Communications R17 295 400 R6 938 307 Information, Communication and Technology R22 885 550 R2 185 292 Audits R5 800 000 R702 092 Risk and legal R1 858 000 R505 436 Research costs R2 000 000 R0 Youth development disbursements R81 480 858 R9 676 825 Training R37 325 551 R4 733 761 Travel R19 467 664 R2 748 434 Overheads R32 611 983 R7 224 209 Grants and vouchers R56 770 752 R4 383 957 CAPEX R34 839 500 R2 369 791 Goods / services R318 977 094 R42 172 115 Compensation budget R170 000 000 R36 082 621 Total R488 977 094 R78 254 736

Quarter one financial performance – budget chart

Jobs landscape

Data on jobs 30% of young people who find employment leave job opportunities within the first three months. Young people who prequalified for interviews, only 50% arrived for the actual interviews. The above was attributed to the following: Lack of transport money; Not remembering the date or venue of the interview; Lack of appropriate interview etiquette; Job not being in line with expectations. Young people founds jobs too overwhelming or they were not formally inducted into the workplace. Others did not know how to deal with the rules and procedures that governed the institution. Lack of communication skills was another as they could not thoroughly express their conflicts. Dismissals for inappropriate conduct, late arrivals, poor quality work. Lack of motivation, inappropriate training and not taking a job seriously were also factors noted.

Reasons for data set It was noted that many possessed technical skill but work readiness is severely lacking. Young people, in our view lack social capital. This referred to as the links, shared values and understanding in society that enable individuals and groups to trust each other and be able to work together with each other so that the group and or individuals can thrive. This is often due to the circumstances of society such as poverty, violence, crime and poor health. They lack credentials, role models and mentors. Research indicates that having family and friends who are employed increases ones chances of finding and remaining in employment. High attrition have a knock on effect as they adversely affect ability to find new employment and they increase training and recruitment for employers. Employers are reluctant to hire entry level employees and then rely on labor brokers which offer little or no long term employment progression. Job hopping is poorly regarded as it reflects a lack of commitment. Future employability is then affected by a lack of work experience.

Jobs Data Percentage of Youth Living in Households Without an Employed Member, 2010-2016

Recommendations Young people need mentorship through the job process in order to maintain employment. Work readiness programs are being rolled out by institutions such as NYDA, Harambee, Lullaway, however post readiness support needs to be developed. The private sector can assist by potentially paying transport subsidies or paying salaries weekly, providing uniforms, conducting induction sessions and offering logistical support. Research suggests that once placed in employment for six months, young people gained confidence on their ability to be resilient and endure workplace challenges. This data should be strongly considered in the Youth Employment Services Training program. A robust National Youth Service program may also assist in providing real life working experience in a safe learning environment and allow young people to develop the skills they need to succeed in employment. Employers globally are noting the need for real life work experience and the value it adds to employment.

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