1. Micro Finance Skills Project
Banking Sector Education and Training Authority
(BANKSETA)
03 June 2003

2. BANKSETA Mission
“To support and give effect to legislation by establishing an education, training and development framework to enable stakeholders to advance the national and global position of the banking sector.”

3. Governance Fully constituted Council Code of conduct King two
Public Finance Management Act (PFMA)
Audit Committee
Internal Audit ( Gobodo)
Unqualified Audit Reports
Finance Committee
Expertise
Chief Financial Officer - First Rand/ Nedcor
Remuneration Committee
Formally agreed processes
Annual research conducted by experts
Business & Labour represented

4. Number of Organizations
BANKSETA Membership
Type of
Organizations
Number of Organizations
Number
of Employees
Micro (1-5 employees)
1262
1276*
Very Small (6 -10) 93
689
Small ( )
109
2569
Medium ( ) 43
3550
Large (+150 employees)
160
1667
*Note: Although based on statistics gathered by SARS, the accuracy of this figure cannot be confirmed.

5. Major Constituencies Category of Contribution Number of Contributors
Total
Contributions
Up To R 999
823 R
R1.000 toR9.999
128 R
R toR49.999 45 R
R to R99.999 12 R
Over R 11  R

6. 3 Levels of value add
Operation and Infrastructure level
Skills development level
Strategic level

7. 1 - Operation & Infrastructure
Infrastructure to enable workplace skills planning & implementation reporting
SMME friendly skills plan
Web enabled submissions
Call centre submissions
Faxed submissions
Contracted SMME assistance

8. WSP/WSPIG Participation 2003/2004
1-49 staff 9%
staff 78%
150+ Staff 98%
Grant Payment % % %

9. 2 - Skills Development Incetivise employers to train Skills priorities
Mandatory grants and Discretionary strategic grants
Representative groupings to deliver sector specific products (Money Laundering Control Training)
Skills priorities
Leadership & management development
Customer services & sales
Financial Skills
IT Skills
Compliance Skills

10. 3 - Strategic Level
Scan for trends/changes impacting on the banking and micro finance environment in the short, medium and long term.
Research and benchmarking
Create a strategic plan based on results of research (3rd SSP)
Beneficiaries:
Designated groups
SMME development
Scarce skills
SAQA/NQF

11. The environments and need for the MFSP
Micro finance sector provides services to individuals and SMMEs.
Bridges the gap between the traditional banking sector and the emerging market
Lack of business knowledge, skills & professionalism.
Consumer education
Rights and responsibilities
Financial literacy
Entrepreneurial development

12. Micro Finance Skills Project - Overview -
MFSP was established in 2002
Aims to develop skills in micro finance industry
Three year, three phase project funded through a R 78 million grant from the National Skills Fund
Unique approach: targets service providers & clients
Recognizes the critical role that MFIs are playing in providing access to finance to the larger South African population

13. The project’s objectives
To implement skills development initiatives:
1200 learners in micro-finance institutions over a three-year cycle between 2002 and 2004.
1200 SMME borrower enterprises by 2004.
6000 individual borrowers/consumers.
To build capacity of
Education providers
BDS Service providers nationwide
To research best practice models for the industry.

14. Development phase one July 2002n – Feb 2003
Training Development
Curriculum Development
Business Development Support
Learner Support
Learner selection
Risk Management
Loan Book Management
Marketing
Cash Management
Customer Service
Staff Management
Training Provider
Assessment

15. Delivery phase one: Feb 2003 – Aug 2003
Training: Pilot of 200 – KZN, WC and Gauteng
Curriculum Reviewed & revised
Learner Assessment
Learner Selection
Training Provider selection
Business Development Support

16. Delivery phase two July 2003 – March 2004
Training:
400 MFI
500 SMME Borrowers
2200 individual borrowers
5 Provinces
Curriculum Reviewed & revised
Learner Assessment
Learner Selection
Training
Provider selection
Business Development Support

17. Delivery phase three: Feb 2004 – Dec 2004
Training:
600 MFI
700 Borrower
3800 individual borrower
9 nine province
Learner Assessment
Training provider selection
Learner Support
Business Development Support

18. Principles of the project
Ensuring buy-in of stakeholders
MFRC, MLA, MEA, Finmark Trust.
Creating up stakeholder forums
Strong focus on thorough research in all phases of the project
Strong planning and management
Incorporating and supporting SMME and BEE contractors

19. Project Governance & Management
Project steering committee: organized labour, micro finance institutions & BANKSETA
SDS consortium: Skills Framework, Deloitte & Touché, SAB &T (SMME , BEE and Traditional Corporate)
Subcontracts (Total)
BEE focus 68%
Non-BEE 32%
SMME 91%
Non-SMME 9%

20. Expected Future Banking sector transformation
MFI sector transformation
Black Micro Finance/Lenders Association
(To be established)
Consolidation in the MFI industry

21. Concluding remarks Operational level Enabled providers Skills level
Training programs & skilled people
Strategic level
Proper research & proper models for the implementation
Developed initiatives that will enable sector growth

22. Thank You