Presentation to Joint Committee on the Improvement of Quality of Life and Status of Youth and Disabled Persons Umsobomvu Youth Fund Friday, 28 February 2003

Feb 1998Budget Speech - Minister of Finance announces a levy on the demutualisation proceeds establish the UYF Sep 1998Government Gazette - Demutualisation Act Oct 1999Monies are transferred from SARS to the Umsobomvu Youth Fund account and placed a deposit with CPD Oct 1999National Treasury begins the process of appointing the Board of Directors Nov 1999Articles of Association drafted Jan 2000Board of Directors appointed Feb 2000Board of Directors meet for the first time Mar 2000Board begins the process of appointing the CEO History

Jul 2000Government Gazette amending the Demutualisation Act to exempt the UYF from income tax Aug 2000Consultative Forum Dec 2000CEO and COO are appointed Jan 2001Strategic planning session between the Directors and Management to establish four key result areas for the UYF Mar 2001Bankers, auditors and asset consultant are appointed Mar 2001Work commenced on the internal structure, policies, procedures and systems to administer the UYF Mar 2001Board of Directors approve the focus areas of the UYF Apr 2001Recruitment process to fill 10 strategic posts begins History

Young people today Lack of skills that are in demand (both technical and life skills); Few employment opportunities in a slow economic growth environment. Despite large number of vacancies, the no of unemployed is still high Lack of access to finance for study and business purposes Lack of access to valuable economic information and counselling support regarding employment/ self- employment; and Access to basic health services and awareness regarding healthy living

Strategic guiding principles Government’s mandate –Create a platform for job creation and skills development transfer for youth Strategic guiding principles –Vision: “To enhance the active participation of youth in the mainstream economy” –Mission : “ To facilitate and promote the creation of jobs and the development of skills for the South African Youth” Policy

Strategic guiding principles Key Performance Areas –Skills development –Job creation –Prudent resource management –Communication of information Core competencies -Co-ordinating ability -Access to networks and resources -Being a catalyst for youth development Policy

Target group years Predominantly out of school Catering for different cohorts –Skilled/ unskilled –Rural/ peri-urban –Women –Disabled –Hiv / Aids Not to duplicate the education’s sphere

The structure of UYF Umsobomvu Employment Programmes Division Youth Entrepreneurship Division  Capacity Building, Research, Evaluation, Education & Training Unit  Finance, Administration & IT Unit  Communication Unit  Human Resources Unit Support Business Units

Youth employment programmes Youth Line Youth Portal Contact, Information and Counseling Youth Advisory Centres School To Work Career Development Bridging Programmes Community Youth Service Building & Construction Home-based Care Agriculture & Conservation Employment Programmes Division

Contact, Information & counseling Radio & TV

Youth entrepreneurship programmes Youth Entrepreneurship Funding Business Development Services* Micro Finance SME Finance Entrepreneur support Enterprise support * Support provided using voucher scheme

The model informing our focus Provide information & counselling Provide a platform to acquire skills Enhance employability Provide support for self -employment

For effective practice Intergrated approach to youth development There is no single model Leverage resources through collaboration Provide extended service: Support & follow-up Hire and develop quality staff Adult support and structure Commit to continuous improvement Treat youth as a resource Make use of work (including community service) Policy

Investment philosophies -Always have a policy of diversifying its exposure by syndicating projects with other funders/donors and by forming linkages; -Neither be a tag along or a Fund for departments nor should it aim to displace existing programmes; -Each project must specify outcome measures for on-going monitoring and evaluation; -Pursue a strategic (narrow) focus in order to achieve sustainable impact; -Endeavour to attain national coverage; and -Not intending to build a huge bureaucracy. Policy

How UYF will function Support Service Providers e.g. - Auditors - Treasury - Research - IT - Consultants UYF - Finance - Management - Board - Committees - Monitoring & evaluation Core Functions Service Providers & Partners - NGOs & CBOs - Academic institutions - Private sector - DFIs - Government - Labour Focus Areas -Contact, info, counselling -Skills dev.& transfer -Entrepreneur support

Promises Presented May 2001 R123 m to R172 m per annum Implementation of focus areas as described Building of instituional capacity

How UYF has / will evolve (phase 1) 1 st 6 months6 to 18 months12 to 24 months Business plan, benchmarks Implementation of pilot programmes Pilot grass-roots programmes Infrastructure & systems Exploring linkages Generate policy parameters Human capacity Capacity building programme Strengthen linkages ConsultationsBrand awareness Integration of UYF programmes

How UYF has / will evolve (phase 2) Year 2-3Year National planning integrates Youth dev. Implementation of pilot programmes Capacity at provincial and local level Share experiences in Africa Best practice model All nodal points have youth programmes Comprehensive review

Targets: Youth employment programmes Contact, Info & Counselling Youth ServiceSchool to Work young people have accessed & used info each year 600 young people (’02); 1500 (’03), 3000 (’04) in prog each year 500 young people (‘02/03); 1000 (‘03), 2000 (’04) in prog each year 15 youth advice centres (‘02); 30(’03); 70 (’05) Youth-line (’02) Youth Portal (‘02)

Targets: Youth entrepreneurship FundingBusiness Dev. Support Job creation impact (5 yrs) youth owned SMMEs have access to finance (’06) young entrepreneurs have received BDS support jobs created 2500 sustainable businesses (’06) youths provided basic entrepreneurship orientation training Voucher scheme (’02) 300 BDS service providers and mentors trained 100 providers accredited

How much? ProgrammeFunds CommittedFunds Approved Youth Advisory Centre60,213,34322,625,493 Call Centre1,010,640 Internet Portal5,612,000 School to Work89,904,71131,185,847 Youth Service35,437,55324,691,370 Business Development Services8,800,000 Enterprise Funding254,616,931 Research and Development1,866,086 Communications3,877,815 TOTAL 461,339,079354,286,182

Challenges Capacity –Govt. support (line managers) –Private sector support –Funding not sufficient –NGOs/CBOs (institutional and individual capacity) Policy & strategy –Consensus (e.g. with organised labour) –Co-ordination(Intergrated youth, rural, H.R. develoment) Policy

Challenges Information –Access to right channels –Alternative channels of communication Youth –Participation –“Unrealistic” expectations –Lack of capacity amongst youth structures Risk management –Monitoring and evaluation Policy

Key milestones Integrated Sustainable Youth Economic Participation Programme linking with other developmental projects using the experience –Public works –Skills Projects with DoL and Setas –Youth diversion –Youth Service Policy

Key milestones Youth Service –Infrastructure to manage project and volunteer based projects Mainstream micro finance (Systems, etc) Provincial coordination Youth Card Policy

Sustainability Good and effective practice (management) Focused approach - not everything to every one Form linkages (e.g. National Skills Fund) Donor funding Government’s on-going funding Youth entrepreneurship

Thank you