1. Skills Development Strategy
Together we are getting the SKILLS DEVELOPMENT show on the road
National Skills Authority &
Department of Labour

2. South Africa is still one of the most divided countries in the world…
Why do we need a Skill Strategy?
South Africa is still one of the most divided countries in the world…
Of our 40 million people
14 million are economically active
…..
Those with formal jobs and income
8 million
Sme
1.4 m
Unemployed
4.6 million
Supporting 14 million young and old people and 13 million others who are not economically active

3. Poverty has a racial and gender face:
Why do we need a Skill Strategy?
Poverty has a racial and gender face:
Those with formal jobs and income
8 million
Sme
1.4 m
Of the 4.6 million unemployed 4.2 million are black and 58% are women
Supporting the 27 million people who are not economically active - majority black

4. Why do we need a Skill Strategy?
Our population is young and thousands more
school-leavers are looking for jobs every year:
School leavers
Those with formal jobs and income
8 million
Sme
1.4 m
Unemployed
4.6 million
Supporting the 18 million young people under the age of 20

5. We need economic growth & social development
Why do we need a Skill Strategy?
We need economic
growth & social
development
Those with formal jobs and income
Sme
The unemployed

6. Why do we need a Skill Strategy?
to support Economic and Employment Growth and Social Development!

7. Economic & employment growth and social development?
The formal sector must grow by becoming more productive, competitive and overall generating more jobs.
The SME sector must grow
Development sector initiatives must support improved subsistence as well as lay the basis for SME and formal sector growth

8. Growth in the Formal Sector?
1. Attract new direct investment for new jobs - both South African as well as foreign.
2. Find and exploit new markets and new technologies for new jobs.
3. Promote labour-intensive sectors for more jobs.
4. Increase productivity and competitiveness across the board to secure and expand jobs.
Support innovation, research and development as a source of ideas for new jobs.
State to stimulate investment by enhancing infrastructure and supporting entrepreneurs.

9. Skills for growth in the Formal Sector?
Skills must complement
these initiatives &
sometimes they
can even
lead the way …
but skills
on their own
don’t make jobs.
Knowing HOW TO do something doesn’t mean you will be able to find a job, find clients, afford the equipment you need, or …
even want to!

10. Skills Development Strategy supports formal sector job growth
Levy / grant system provides incentive for employers to skill workers ...
Enterprise
0,5% of payroll
Year 1
50% grant
Year 1
Via DoL : 80% to SETA
SETA
SARS
NSF
20% to NSF

11. Skills Development Strategy supports workplace growth strategy
Grant
Grant is triggered by Skills Plan
Skills Plan
Developed by Skills Development Facilitator and Workplace Skills Team
Skills Plan is prepared by SDF and SD Team

12. Skills Development Strategy also supports formal sector employment equity
Growth Plan +
Equity Plan
Skills Plan must support
both
Growth Plan and Equity Plan

13. Skills for job growth in the SME Sector?
Skills Development initiatives must compliment other support measures:
Micro Credit
Technology support
Business support
Marketing & exports
Skills Development

14. Job growth in the Development Sector?
Development interventions are those that
improve the quality of life of the poor
secure basic services and infrastructure
lay the basis for rising standards of living over time through access to new forms of income generation
Initiatives such as:
Integrated Rural Development Strategy
Urban Renewal Strategy
Local Economic Development
Spatial Development Initiatives (linked to formal sector growth)
Including programmes such as:
Working for water (job creation for environmental protection)
Community-based public works
Building of houses, access to water, upgrading schools, roads etc.
SME initiatives linked to local opportunities
Youth Community Service

15. Skills for job growth in the Development Sector?
Access to National Skills Fund by submission of
Project Skills Plan
administered by Provincial DoL: ESDS officers
Project Skills Plan for development project
Competent people implement development project
Development Project

17. Skills for access to the LM by the young
18(2) Learnerships
depend on learners being able to access
relevant work experience
Targets will be set, incentives designed and national campaigns conducted to persuade employers
be they large or small, public or private –
to provide work experience so
that young people can be assisted
to enter productive employment

18. National Skills Fund Funding envelopes:
Development of learnerships & skills programmes
Learnerships
Skills programmes
Industry support for new investment
NSF services
Total projected income: R500 million
R100 m Fiscus
R160 m Levy income
R 15 m European Union
Other (Poverty Relief etc)

20. Skills development supports quality lifelong learning
ALL Skills Plans
progressively
Expressed as standards and qualifications
Quality assured by SETAs and other ETQAs
Provide learners with nationally accredited certificates, which are industry recognized
Provide the basis for further career pathing and lifelong learning

21. SETA functions Develop a sector skills plan
Implement its sector skills plan by
Establishing learnerships
Approving workplace skills plans
Allocating grants
Monitoring education and training in its sector
Promote learnerships by
Identify workplaces for practical work experience
Support the development of learning materials
Improve the facilitation of learning
Assist in learnership agreements / register agreements.
Apply to be accredited as ETQA with SAQA
Liaise with the NSA and employment services
Report to the Director General of Labour

22. Sector Skills Plan
Competitiveness analysis (drivers of change e.g. globalisation, new processes, new products, new markets)
Service improvements for public service in sector
Equity and social issues (e.g. existing inequalities, legislation, government policy)
Current skills profile and skills supply structure
Desired future industry strategy and objectives
Sector Plan actions – individuals, companies, SETA, education and training providers

23. Why the LMSDP? Infrastructure and systems Institutions
Skills Development Act
Skills Development Levies Act
Manpower Training Act
Guidance and Placement Act
Infrastructure and systems
Institutions
Capacity building (HRD)

24. LMSDP: EXPECTED OUTCOMES
Project 1: Capacity of DoL developed (PMU).
Project 2: Information systems for strategic planning
developed and operationalised.
Project 3: National learnership and skills programmes designed and
implemented
Project 4: National in-service training system developed and
implemented.
Project 5: Institutional capacity development for stakeholders
established.
Project 6: National funding system established.
Project 7: Education and Training Quality Assurers (ETQA) supported.

25. Project 8 : Provincial Implementation.
(Youth, SDIs and Social Plan).
Project 9: Effective Public/Private Partnerships established for the effective delivery of ESDS through a regulatory framework.
Project 10: SDS Capacity building framework and programme
established
Project 11: Designated Groups
Project 12: Restructuring of Indlela

26. Institu-tional capacity
The Minister of Labour
The National Skills
Authority
The National Skills
Strategy Steering
Committee
The National Skills
Strategy Executive
Committee
The PMU 1 2 3 4 5 6 7 8
Provincial imple-
mentation 9 10 11
Project
Steering
Committee
Project
Steering
Committee
Project
Steering
Committee
Project
Steering
Committee
Project
Steering
Committee
Project
Steering
Committee
Project
Steering
Committee
Project
Steering
Committee
Project
Steering
Committee
Project
Steering
Committee
Project
Steering
Committee
Learner
-ships & Skills Programmes
Public/
Private
Partnerships
established
In-service training
Institu-tional capacity
SDS
Capacity
Building
Strategic
Info
System
Funding systems
ETQAs
Capacity of
DoL
Designated
Groups

27. PROJECT TEAM SA Project Manager EU Team Leader EU Assistant
Co-ordinator
PROJECT
TEAM
EU LT
Consultants
Financial
Controller
EU ST
Consultants
PSC
Secretary

28. Project Steering Committees
SA Project
Manager
Project Steering Committees
EU Team
Leader
NSA
representatives
PROJECT
STEERING
COMMITTEE
Project
Co-ordinator
Other NSA approved
representative
SETA
representatives
PSC
Secretary

29. LMSDP EU GTZ DANIDA Netherlands Irish Aid Australia US Aid Swiss
Norway

30. Skills Strategy for the NATION
National Skills
Development Strategy
E T
Q A
U R
I G
T E
Y T
Sector Skills Plan
Provincial Skills Plan
Workplace Skills Plan
Project Skills Plan