1. NATIONAL YOUTH DEVELOPMENT AGENCY
QUARTERLY REPORTING: PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION

2. Agenda Situational analysis Quarter two performance
Quarter two financials
Youth labor market insights
Questions

3. Situational analysis

4. Situational analysis
The NYDA has for quarter two achieved 77% of its Key Performance Indicators and has spent 44% of its allocated budget.
The Agency was allocated an additional R31 million in the Medium Term Budget Policy Statement for the grant program specifically. This will be used to address the demand for the program.
Provincial DESTEA has further committed R1.5 million to our grant program.
The Agency contributed to both the JOBS Summit and Investment Summit, releasing its position papers on the labor and capital markets and its need to address the national crises of youth unemployment.
We have thus far established eight of our planned seventeen district centers for the financial year under consideration.

5. Detailed quarter two 2018 / 2019 performance report

6. SUMMARY OF PERFORMANCE
More stringent verification measures were applied in 2018/2019 Quarter 2 based on inputs from the External Audit process. Data collection measures have been applied across all programmes.

7. PROGRAMME AREA 1: ECONOMIC PARTICIPATION KEY PERFORMANCE INDICATOR
STRATEGIC OBJECTIVE
KEY PERFORMANCE INDICATOR
YTD TARGET
YTD ACHIEVEMENT
REASON FOR VARIANCE
To provide socio- economic empowerment interventions and support for young people in South Africa
Number of youth owned enterprises supported through the Grant Programme
335
315
Individuals – 347
Enterprises – 238
Cooperatives – 30
Target was not met due to a gap between approval and disbursements.
Number of beneficiaries supported with business development support services offered by the NYDA
9 900
9 938
BMT – 4141
Governance Training – 583
Sales Pitch – 1398
BBBEE – 715
Linkages – 129
Mentorship – 2412
Vouchers – 560
YTD target met and exceeded
Number of jobs created and or sustained through supporting entrepreneurs and enterprises
1660
1927
MKL - 193
Voucher – 834
Grant - 900
Number of jobs facilitated through placements in job opportunities
1550
3065
Target was overachieved due to more individuals as compared to co-ops and entrepreneurs supported which created more jobs than expected

8. PROGRAMME AREA 1: ECONOMIC PARTICIPATION KEY PERFORMANCE INDICATOR
STRATEGIC OBJECTIVE
KEY PERFORMANCE INDICATOR
YTD TARGET
YTD ACHIEVEMENT
REASON FOR VARIANCE
To provide socio- economic empowerment interventions and support for young people in South Africa
Establishment of the NYDA Youth Fund
Approved project plan by management
 Project plan approved by management (EXCO)
Target met 
Establishment of the NYDA Skills Fund
Implement approved project plan
Implemented the approved project plan
To provide increased information and universal access to young people
Number of young people provided with youth development information
Outreach –
CRM –
NSFAS
Target was not met due to mid-year changes to align to AG requirements
Remedial Action
Workshops conducted for outreach officers and developed business processes in order to rectify the collection of evidence
Number of new Service Delivery Channels established and operationalised for young people to access NYDA information 2 7
Kiosks - 0
Satellites - 5
Branches - 2
Outreach vehicles -0
Target was overachieved due to good relations with municipalities and preparations for new service delivery channels that started from the previous financial year
To lobby key stakeholders to support and implement youth development programmes
Number of public and private key stakeholders lobbied to implement youth development programmes 10 15
Target was overachieved due to willingness of stakeholders to partner with NYDA

9. KEY PERFORMANCE INDICATOR YTD TARGET YTD ACHIEVEMENT
 PROGRAMME AREA 2: EDUCATION AND SKILLS DEVELOPMENT
STRATEGIC OBJECTIVE
KEY PERFORMANCE INDICATOR
YTD TARGET
YTD ACHIEVEMENT
REASON FOR VARINACE
To facilitate and implement skills programmes for young people
Number of young people trained to enter the job market
36 000
38 596
Life Skills –
Job Preparedness –
YTD target met and exceeded
To facilitate and implement education opportunities in order to improve the quality education attainment for the youth
Implement the Solomon Mahlangu Scholarship programme
Monitoring of the existing scholarship recipients who are in the 1st, 2nd, 3rd and 4th year of their study
Monitored the existing scholarship recipients who are in 1st, 2nd, 3rd and 4th year.
Monitoring report submitted
Target met

10. PROGRAMME AREA 3: RESEARCH AND POLICY KEY PERFORMANCE INDICATOR
STRATEGIC OBJECTIVE
KEY PERFORMANCE INDICATOR
QUARTER 2 TARGET
QUARTER 2 ACHIEVEMENT
REASON FOR VARIANCE
To create and produce information and knowledge for better youth development planning and decision making
Number of stakeholders satisfaction surveys conducted 1
Quarter 2 target met
Design Corporate Strategy and Planning structure aligned to the Integrated Youth Development Strategy (IYDS)
Approved Corporate Strategy and Planning (CSP) structure by Board
 Target deferred to Quarter 4
The Board will review all structures in the last quarter and the target will be met in the last quarter
Review of M&E Framework and aligned to the Integrated Youth Development Strategy (IYDS)
Implement approved M&E Framework
M&E Framework approved

11. PROGRAMME AREA 4: ENHANCED PARTICIPATION IN NYS
STRATEGIC OBJECTIVE
KEY PERFORMANCE INDICATOR
QUARTER 2 TARGET
QUARTER 2 ACTUAL
REASON FOR VARIANCE
To engage young people in service activities geared towards fostering patriotism, social cohesion and nation building
Protocols, procedures and coordination tool developed and implemented for National, Provincial and Local Government
Approved protocols, procedures and coordination tool by NYS ED.
Initiated implementation of protocols, procedures and coordination tool through a facilitation process
Protocols, procedures and coordination tool approved by NYS ED.
Facilitated a session on the NYS coordination tools, protocols and procedures
YTD target met
Facilitate the development of Annual Plans by Government Departments for 2019/2020
Finalise facilitation roll out plan
Facilitation roll out plan finalised, approved and signed by the ED
Number of National Youth Service programme (NYS) projects registered 30

12. PROGRAMME AREA 4: ENHANCED PARTICIPATION IN NYS
STRATEGIC OBJECTIVE
KEY PERFORMANCE INDICATOR
QUARTER 2 TARGET
QUARTER 2 ACTUAL
REASON FOR VARIANCE
To engage young people in service activities geared towards fostering patriotism, social cohesion and nation building
Number of young people enrolled in the NYS Category 1
4000
1621
Target was not met due to postponement of projects by implementing partners
Remedial Action
Catch up plan in place, pursuing different partners to assist in implementing Category 1 skills programme
Number of young people enrolled in NYS Category 2 and 3 Expanded Volunteer Programme (EVP) implemented
37 500
25 000
Catch up plan in place and confirmed dates of engagement with the implementing partners and embarking on alternative plan in case they renege from the partnership agreements

13. PROGRAMME AREA 5: GOVERNANCE AND ADMINISTRATION
STRATEGIC OBJECTIVE
KEY PERFORMANCE INDICATOR
QUARTER 2 TARGET
QUARTER 2 ACTUAL
REASON FOR VARIANCE
To establish a credible, efficient and effective organization
Implement the Human Resource Strategy
Implement 25% of phase 2 of HR strategy
25% of phase 2 HR strategy implemented
YTD target met
Implement an Integrated Marketing and communications Strategy
Implement 25% of phase 2 of the Integrated Marketing & Communications strategy
25% of phase 2 Integrated Marketing & Communications strategy implemented
Payment of legitimate service provider invoices within the 30-day period
100% of legitimate service providers paid within the 30-day period
100% of legitimate service providers paid within the 30 day period

14. GRANTS BREAKDOWN PER SECTOR
These sectors are as defined in the Customer Relationship Management (CRM) system application used by the NYDA.
Most grants (62%) were issued for personal services e.g. saloons, spas, car wash and catering
Manufacturing services, e.g. brick, furniture and clothing manufacturing constitute 15% of grants that were issued
Retail services, e.g., shops, exports and imports constituted 11% of grants that were issued
The other sectors e.g. agriculture constitutes 6%, construction 3% and other non-specified business types constituted 3%.

15. GRANTS BREAKDOWN BY AGE
In Quarter 2 grants were highly consumed by young people between the ages of 26 – 30 who constituted 40% of the grants issued, followed by those aged at 39%. There was a lower consumption for young people between the ages of

16. JOBS CREATED AND SUSTAINED
In Quarter 2 jobs created and sustained were acquired from three programmes, namely; Market Linkages, Voucher and Grant Programmes. Grant programme contributed 47% to jobs creation. Voucher programme created 43% to jobs creation. Through Market Linkages jobs were created because the programme enabled young entrepreneurs to be linked with business opportunities.

17. JOBS CREATED AND SUSTAINED PER AGE
In Quarter 2 jobs created and sustained through grant programme were highly consumed by young people between the ages of 26 – 30 who constituted of the jobs created and sustained, and the ages between who constituted 25.1% followed by those aged at 27.3%. There was a lower consumption for young people between the ages of at 8.5%.

18. Quarter two 2018 / 2019 financial performance

19. Medium Term Strategic Framework outcome
Annual Budget 2018 / 2019
Key Programmatic Area
Budget allocation
16 / 17
17 / 18
18 / 19
Medium Term Strategic Framework outcome
Economic Participation R
R 76,551,615 R
Decent employment through inclusive economic growth
Education and skills development R
R 74,267,999 R
Quality basic education & decent employment through inclusive economic growth
National Youth Service R
R 33,960,882 R
Nation building and social cohesion
Universal access to opportunities R
R 21,654,216 R
An efficient, effective and development orientated public service
Research and Policy R
R 5,421,600 R
Administration R
R 70,737,670 R
Employee costs R
R 163,500,000 R
CAPEX R
R11,000,000 R
Total R R R

20. Quarter two financial performance – Annual budget
Key Programmatic Area
Annual budget
Q2 Actual
Percentage
Budget classification
Economic Participation R R
49%
Decent employment through inclusive economic growth
Education and skills development R R
40%
Quality basic education & decent employment through inclusive economic growth
National Youth Service R R
32%
Nation building and social cohesion
Universal access to opportunities R R
34%
An efficient, effective and development orientated public service
Research and Policy R R
31%
Administration R R
45%
Employee costs R R
47%
CAPEX R R
An efficient, effective and development orientated public service
Total R R
44%

21. Quarter two financial performance – YTD budget
Key Programmatic Area
Q2 budget
Q2 Actual
Percentage
Budget classification
Economic Participation R R
98%
Decent employment through inclusive economic growth
Education and skills development R R
100%
Quality basic education & decent employment through inclusive economic growth
National Youth Service R R
62%
Nation building and social cohesion
Universal access to opportunities R R
86%
An efficient, effective and development orientated public service
Research and Policy R R
Administration R R
95%
Employee costs R R
99%
CAPEX R R
An efficient, effective and development orientated public service
Total R R

22. Budget analysis Description Annual Budget 2018 / 2019 Quarter 2 Actual
Administration R R
Communications R R
Information, Communication and Technology R R
Audits R R
Risk and legal R R
Research costs R R
Youth development disbursements R R
Training R R
Travel R R
Overheads R R
Grants and vouchers R R
CAPEX R R
Goods / services R R
Compensation budget R R
Total R R

23. Quarter 2 Financial Performance – Budget Chart

24. Youth labor market insights

25. Insights
Employment rates tend to increase with more education, but less so for young, low-income or female work seekers One of the reasons why Matric is so celebrated in South Africa is that we have a chronic unemployment problem, and, in general, more education makes finding a job easier. However in addition to education, employment rates also depend on other characteristics such as race, age and gender. It is clear that employment rates increase consistently with more education, but there is also a persistent employment gap between younger and older work-seekers. This gap is usually explained as a requirement for work experience. Thus although education increases the likelihood of finding a job, it does not erase other barriers to employment

26. Insights
In looking for work, young people face barriers tied both to job requirements and to soft skills.
Employers are often concerned that Matric is not a guarantee of foundational skills like numeracy and literacy as the quality of basic education is generally low. Thus employers may ask applicants for further academic requirements for entry-level jobs as a signal of quality. For example, only 21% of the approximately learners who passed Matric in 2017 also passed Mathematics with 40% or more). Employers are also increasingly looking for soft skills, such as initiative, persistence and leadership, in the people that they hire - qualities that are difficult for young people to signal without a point of referral such as prior work experience. Organisations such as the OECD have commented on the high levels of mismatch in the SA labour market, implying that, in many cases, employees chosen are not the most suitable for the job in question. We must challenge employers to look beyond academic qualifications and focus instead on the specific characteristics required by their jobs and businesses in hiring young employees to improve their matches. Employers could consider developing job profiles that include both hard and soft skill requirements, and using appropriate matching and assessment tools to identify these traits in potential hires. In many cases this approach has paid off, and employers have acknowledged the positive impact of holistically matching candidates with job requirements instead of searching for the highest qualified candidate overall.

27. Insights
Practical, non-tertiary solutions are needed to provide school-leavers with functional work skills so that they can earn an income.
Formal education is obviously important, but it is not a silver bullet to solve youth unemployment. The high premium that employers place on work experience shows gaps between formal education and work readiness. Many people learn their most valuable skills on the job. Yet the traditional success model in South African labour markets remains school to university to employment. We must envision a new paradigm for the labour market, which includes multiple paths to economic engagement. The main message of this paradigm is that everyone should be able to find a way to sustainable income through work. For some, it might come through short-term work experiences such as internships and learnerships that either convert to permanent employment or make it easier to find a job by serving the work requirement. Existing structures could be made more inclusive to expand paths to employment, e.g. skills development programmes funded by SETA levies could be expanded to include new entrants and the unemployed. To move towards this model we would need better alignment between education, training, and workplace requirements so that all the paths definitively increase employability. That means better coordination between employers and the broad education system to ensure that young people are more prepared for the world of work beyond formal education.

28. questions