1. Regional Skills Forums February 2017
Presentation: Snapshot of NSDS III & CHIETA Vision 2030
Ayesha Itzkin, CHIETA Acting CEO
Regional Skills Forums
February 2017

3. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA 5-YEAR ORGANISATIONAL PERFORMANCE IN NSDS III CHIETA performance footprint, 1 April 2011 to 31 March 2016
Number of learners supported in NSDS III has grown exponentially
This is due to lessons learned in NSDS I and II
After Ten years of building credible relationships
CHIETA has won the trust of Industry by
listening carefully to their skills needs
including these needs in skills planning and funding processes
timely disbursements of funds, and
providing real skills planning support to industry
A total of learners were supported with occupationally directed training
(18.1) and (18.2) learners were in training
learners were certificated on Learnerships, skills programs, internships and bursaries
CHIETA certificated 2844 artisans
378 small businesses were received funding support
397 co-operatives and NGOs were supported
The unit level of funding per learner in many programmes was often below the national recommended SETA funding levels due to successful Industry partnerships and co-funding models implemented together with CHIETA member companies.

4. SDL Income vs Employer Grant and Project Expenses 2011 -2016
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
SDL Income vs Employer Grant and Project Expenses

5. Skills Development Levy income from 2011 - 2016
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Skills Development Levy income from

6. Administration income vs expenditure 2011 - 2016
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
Administration income vs expenditure

7. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS /16 as per Annual Report
Unqualified audit opinion and clean audit outcome
4% increase in SDL income from R426.6 million for the year ended March 2015 to R443.5 million for the year ended March 2016
Total Revenue increased by 4% from prior year
SDL income escalated by annual equivalent average of 21% for the entire period since inception
Grant and Project expenses increased by 11% from R397 million in to R442 million in
Mandatory Grant expense of R98.7 million represented 87% of MG levy income received (R113 million received, the balance was swept into the discretionary grant pot)
89% of Discretionary Grants were utilised on PIVOTAL programs
98.3% of funds available in the Discretionary reserve were committed as at 31 March 2016

8. DG Program – Sector Skills / NSDS Priority Expenditure 2015/16 (R’000)
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
DG Program – Sector Skills / NSDS Priority
Expenditure 2015/16 (R’000)
No. of Beneficiaries
Average Cost per Learner
% of Total DG expenditure
Work Integrated Learning
R62,668
2 087
R30,027
23.0%
Learnerships
R85,568
5 811
R14,725
31.4%
Artisans / Apprenticeships
R44,468
1 864
R23,856
16.3%
Bursaries
R43,095
1751
R24,611
14.6%
Skills Programs
R24,437
6792
R3,598
9.0%
ABET
R2,053
427
R4,807
0.8%
Recognition of Prior Learning (RPL)
R8,659
1362
R6,357
3.2%
TVET Support (Partnerships)
R3,254
195
R16,688
1.2%

9. DG Program – Sector Skills / NSDS Priority Expenditure 2014/15 (R’000)
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
DG Program – Sector Skills / NSDS Priority
Expenditure 2014/15 (R’000)
No. of Beneficiaries
Average Cost per Learner
% of Total DG expenditure
Work Integrated Learning
R49,463
1766
R28,008
20%
Learnerships
R87,786
5 671
R15,480
35.5%
Artisans / Apprenticeships (Including RPL)
R45,211
2 294
R19,708
18.3%
Bursaries
R25,669
948
R27,076
10.4%
Skills Programs
R21,649
8 559
R2,529
8.8%
ABET
R2,655
795
R3,340
1.1%
Career Guidance
R573
4291
R574
0.2%

10. ORGANISATIONAL ACHIEVEMENTS
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ORGANISATIONAL ACHIEVEMENTS
In 2015/16 CHIETA
Re-organized and optimized its business processes and designed and implemented even further enhanced delivery systems and controls for its identified risks
Continued to build strong relationships with the chemical industry, public education and learning institutions and organized labour within our sector
Focused on mega or multi party 3-way partnerships - Industry/Public Education Institutions/CHIETA partnerships for high impact delivery and innovation
Continuous efforts to ensure every workplace in the chemical sector becomes a training space providing experiential learning and employment experience
Put into place the building blocks for impact assessment.

11. CHIETA ORGANISATIONAL ACHIEVEMENTS
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA ORGANISATIONAL ACHIEVEMENTS
CHIETA Governing Board is highly effective and has worked diligently to ensure their oversight role was discharged accountably
Attained great success through excellence in terms of performance and delivery on it’s targets as contracted with the Minister of Higher Education & Training in CHIETA’s Strategic Plan
Safeguarded sound corporate governance and oversight of the CHIETA mandate, which is a priority in public entities
Through its well functioning stakeholder driven research and skills planning framework, CHIETA ensured strong integration between the Sector Skills Plan, the funding allocation and meeting its organisational targets
Effective CHIETA Chambers and stakeholder structures fed valuable information on the skills needs into CHIETA’s skills planning processes.

12. ORGANISATIONAL ACHIEVEMENTS
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
ORGANISATIONAL ACHIEVEMENTS
Highly credible electronic skills planning platform from which verifiable company information is sourced and analyzed in order to plan for skills.
Hugely effective grant funding processes and monitoring of the delivery by companies to ensure success and compliance.
In 2015/16, of the ten CHIETA strategic programs all ten baseline targets were met or exceeded and this is 100% of its 58 pre-determined organizational targets.
Forty six out of 58 pre-determined organisational targets were exceeded (79%) Strong Organizational Risk Management Policy and Framework implemented on strategic and operational levels to mitigate external and internal risks and to ensure CHIETA meets strategic objectives
Sustained and increased levy income
Governing Board approved R58.9 million for bursaries
Excellent finance management.

13. CHIETA Audited Performance Information 2015/16
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA Audited Performance Information 2015/16
Performance Indicator (Learnerships, Skills Programmes, bursaries and internships)
Target
Actual
Percentage variance
Employed learners entered
5360
6247
116%
Employed certificated
2655
3586
135%
Unemployed entered
4270
8540
198%
Unemployed certificated
2135
3859
181%

14. CHIETA Audited Performance Information 2015/16
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA Audited Performance Information 2015/16
Performance Indicator
Target
Actual
Percentage variance
Artisans entered
1720
1864
108%
Artisans certified
444
792
178%
TVET College Partnerships 18 20
111%
TVET Workplace experience entered
700
937
134%
Support to Co-operatives, NGOs, worker initiated training and small businesses
152
210
138%
Support to large, medium and small companies
689
791
115%

15. CHARACTERISTICS OF ANNUAL PERFORMANCE PLAN 2017/18
CHIETA, the Catalyst for Enhanced Skills Economic Growth and Employability
CHARACTERISTICS OF ANNUAL PERFORMANCE PLAN 2017/18
Fifty nine (59) Performance indicators with predetermined organisational targets
Supported through ten strategic programmes
Estimated budget for 2017/18 for each strategic programme and each performance indicator worked out
Signed Service Level Agreement with DHET for 2017/18
Materiality and Significance Framework this is set at 1%
CHIETA Organisational alignment and implementation plans made.

16. ESTIMATED BUDGET FOR CHIETA’S STRATEGIC PROGRAMS FOR 2017/2018 FINANCIAL YEAR
PROGRAM NUMBER
PROGRAMME NAME
BUDGET ALLOCATION 2017/18 1
Administration
65,531,534 2
Research and Skills Planning
9,751,928 3
Occupationally directed programmes
267,513,342 4
TVET Colleges
21,204,225 5
Adult and youth language and numeracy
4,882,500 6
Workplace based development
94,141,253 7
Support to NGOs , CBOs and SMMEs
1,863,225 8
Public Sector capacity building
3,307,500 9
Career Guidance
2,756,250 10
Government medium term priorities
58,557,994
TOTAL
529,509,750

17. POSSIBLE SCENARIOS FOR THE CHEMICALS INDUSTRY
FORK IN THE ROAD
Global economic and commodity bounce back
Reindustrialisation shapes SA GDP structure
SA develops global mining/agriculture/manufacturing competitiveness
Significant investment in oil/gas/coal /nuclear
Skills base increasing and unemployment falling
Despite being well funded SETAS out of touch, out of date
Industry “goes it alone” on skills training, imports
Expanded chemicals sector
HIGHWAY TO PROSPERITY
Global economy drives commodity recovery
SA attracts massive new industrial investment
Mining/agriculture/manufacturing competitiveness picks up
Demand/policy sees much new oil/gas/coal/nuclear investment
Skills base increasing and unemployment falling
SETAS responsive to expanding chemicals industry
Industry/Seta collaboration =global best practice example
Prescriptive skills environment
Collaborative skills environment
POTHOLES AHEAD
Global economy stalls and commodity prices flat
SA deindustrialises further, services share of GDP up
Investment in mining/agriculture/manufacturing declines
Little new energy investment (no nukes, no fracking)
Low skills, high unemployment economy
SETA funding slides and SETA offering seen as out of touch with industry
Little demand for new skills, skills imports
4X4 OFFROADING
Global economy stalls
Industrial disinvestment out of SA
Mining/agriculture/manufacturing competitiveness declines
Little investment in oil/gas/coal/nuclear
High unemployment and low skills base
Seta funding falls off
Industry and CHIETA engage in highly creative collaboration to shore up niche industries against the odds – another global best practice case study in a chemicals unfriendly world
Contracting chemicals sector

18. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
CHIETA’S Vision Feed into legislative processes to alleviate current barriers to skills development -Enhance CHIETA’s research capability to fully understand the broad spectrum of skills needs and learning program design - Direct CHIETA bursary students’ research topics to the benefit of CHIETA’s understandings of the needs of the economy for the short, medium and long terms - To understand what are the emerging new technologies and the implications for skills training - To understand the Skills needs across SADC & Africa - To Support Community Colleges and up-skilling of school leavers with no prospects and people who have lost their jobs or are unemployed - Support SMME development so that the benefits are cascaded and many opportunities are opened up - Continue to work closely with all stakeholders - Put the required systems, processes, procedures and implementation guidelines in place for the CHIETA to grow into an Assessment Quality Partner - Other as determined by CHIETA stakeholders

19. APPRECIATION!! Governing Board and CHIETA Board
CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability
APPRECIATION!!
Governing Board and CHIETA Board
Committees, Chambers and other Structures
CHIETA Management and Staff
CHIETA Stakeholders
THANK YOU FOR YOUR CONTINUED SUPPORT. Without you we could not have done it!

20. QUESTIONS AND CLARITY