Presentation to Parliament’s Portfolio Committee on Labour 10 August 2004

Vision Skills for global competitiveness

Mission To create opportunities in the secondary agriculture sector for economic and employment growth through skills development

Agriculture = Jobs! “A direct investment in the agricultural sector has been shown to create twice as many jobs as the manufacturing sector.” (Sunday Times Business Times, March )

The Case for Agriculture Provides 10.5% of all jobs in the economy through direct employment Provides 16% of all jobs in the economy through indirect employment Contributes 5% to GDP (Sunday Times Business Times, March )

The Case for Agriculture (cont.) Is the top employment generator for people with low skills and literacy levels Provides wealth creation and poverty alleviation opportunities for 13 million rural South Africans (Sunday Times Business Times, March )

Strategic Objectives (SSP to 2005) To address the low skills base of the secondary agriculture sector To develop and implement Learnerships To facilitate the development and implementation of appropriate skills programmes for the sector

Strategic Objectives (cont) (SSP to 2005) To implement skills programmes aimed at SMMEs To implement awareness programmes on HIV & AIDS, safety, business principles and relationship skills

Strategic Objectives (cont) (SSP to 2005) To make Learnerships available to new entrants To make skills programmes available to new entrants

The Current State of Affairs: A Critical Assessment of SETASA

Problems Identified (Nov 2003 – Mar 2004) Ineffective systems  Financial Management  Grants Administration  Learnerships  ETQA

Problems Identified (cont.) (Nov 2003 – Mar 2004) Lack of reliable baseline data and integrated MIS Urgent need to fast-track delivery Protracted delays in registering qualifications and learnerships

Problems Identified (cont.) (Nov 2003 – Mar 2004) Inadequate staffing structure Dysfunctional governance structure Impractical working environment

Additional Challenges Need to increase SETASA’s profile within the Secondary Agriculture sector Need to meet the expectations of the Secondary Agriculture sector, the DoL and the public

Renewal Strategy A multi-faceted Integrated Intervention Framework Governance Management and Staffing Policies, Procedures and Management Systems Strategy and Programme Develop Action Plan 3000 Learners 38 Learnerships 300 Companies Claiming Grants 10 IiP Sites 700 Learners in Learnerships Deliver INTERNALEXTERNAL

Action Taken 2003 to 2004 Integrated Quality Management System (QMS) developed New Financial, Grants and IT Administration Systems implemented

Action Taken (cont.) 2003 to 2004 New Mandatory and Discretionary Grants Application and Management Systems developed and implemented Accreditation and Audit System to Operationalise the ETQA Function developed and implemented

Action Taken (cont.) 2003 to 2004 Learnership Management System developed and implemented New Business Plan approved by DoL DoL reporting and other requirements met

Action Taken (cont.) 2003 to 2004 Roadshow successfully presented in 4 Provinces reaching over 200 stakeholders Increased presence of SETASA in sector New Logo, Vision and Mission

SETASA ACHIEVEMENTS 2003/2004

Achievements Finance and Grants Disbursements R77,5 million disbursed in Mandatory Grants (2003/04 - R31.35 million) R13,7 million of Unclaimed Surplus Awarded as Discretionary Grants for Learnerships Implementation and Strategic Projects

Achievements Finance and Grants Disbursements (cont.) Unqualified Audit for 2003/2004 fiscal year (qualified in 2002/03) R6,7 million spent on Special Projects

PER YEAR R’000 Project expenses paid Adjusted income* Income % variance-112%18%12% Administration costs Administration cost % variance-160%33%6% Administration surplus - Rand Administration surplus - %83%16%19% Financial Overview *Income adjusted for changes in estimates in respect of previous years

Surplus Funds: Projects Total Allocated = R32,2 million Total Spent = R6,7 million Total Awarded = R13,7 million CUMULATIVE R’000 Surplus funds available (A) Surplus funds allocated (B) (B) as % of (A)-41%95%53% Surplus funds spent (C) (C) as % of (B)-13%12%21%

Mandatory Grants Total Paid = R77,5 million PER FINANCIAL YEAR 2001* TOTAL* R’000 Mandatory grants paid 60% Adjusted income 60% Overall pay-out %65% *50% for the 2001/02 Financial year

Achievements Skills Planning 455 Employers Participating in Skills Development  237 from employers with < 50 employees  95 from employers with 50 to 150 emplyees  123 from employers with > than 150 employees SMME Strategy implemented Skills Strategy for Fruit Packaging and Processing Industry developed

Achievements Skills Planning (cont.) Skills research study on the Secondary Agriculture Sector completed Capacity building programme provided to 600 SMMEs 6 enterprises committed to IiP

Achievements Quality Assurance 300 Assessors trained 6 MoUs signed with other ETQA’s 15 E&T Providers provisionally accredited

Achievements Learnerships & Skills Programmes 30 Managers trained on HIV & Aids policy formulation and procedures 1012 Learners completed ABET training (additional 2000 in system) 36 Learnerships registered

Achievements Learnerships & Skills Programmes (cont.) 500 new learners (under-30) in Learnerships and apprenticeships 231 HET bursaries awarded 870 new learners in Learnerships funded through discretionary grants

Achievements Governance Identified critical weaknesses in existing governance structures Developed plan for improving and strengthening governance

Achievement Against DoL Targets Objective One: Life long learning

Achievement Against DoL Targets Objective Two: Fostering Skills Development in the formal economy

Achievement Against DoL Targets Objective Three: Stimulating and Supporting Skills Development in Small Businesses

Achievement Against DoL Targets Objective Four: Promoting skills development for employability and sustainable livelihoods through social development initiatives

Achievement Against DoL Targets Objective Five: Assisting new entrants into employment in labour market

Key Priorities 2004/ additional ABET learners in learning programmes 40 Moderators/Verifiers trained 30 E&T Providers accredited

Key Priorities (cont.) 2004/ Learnerships registered 1000 learners in Learnerships MoUs with 5 additional ETQAs

Key Priorities (cont.) 2004/2005 Capacity building programmes for 578 additional SMMEs 20 enterprises committed to IiP Mandatory grants paid quarterly

Key Priorities (cont.) 2004/ learners in skills programmes 3 generic NQF L1 Learnerships registered Staffing and governance problems resolved

Key Priorities (cont.) 2004/2005 Unit Standards and Qualifications for Pest Control, Poultry and Fibre sectors registered All surplus funds committed to discretionary grants and special projects

Thank You!