1. WELCOME TO THE MICT SETA STAKEHOLDER ROADSHOW 7 February 2014

2. NSDS Target Target AGENDA Agenda TIMEDESCRIPTIONPRESENTER 09h00 – 09h10Welcome and Introduction Hennie Rheeder Manager: QMS & IT 09h10 -09h45ETQACharlton Philiso Senior Manager: ETQA 09h45 – 10h20SSPSekgana Makhoba Senior Manager: SSP 10h020– 10h55Learning ProgrammesJabu Sibeko Senior Manager: LPD 10h55 – 11h15 MID-MORNING TEA

3. NSDS Target Target AGENDA Agenda TIMEDESCRIPTIONPRESENTER 11h15 – 11h50MICT SETA OverviewOupa Mopaki CEO: MICT SETA 11h50– 12h00CEO Wrap-upOupa Mopaki CEO: MICT SETA 12H00 – 12H45 LUNCH 12h45 – 15h00Training on the New Online Grant System Sekgana Makhoba Senior Manager: SSP 15h00 AFTERNOON TEA

4. Charlton Philiso Senior Manager: ETQA

5. CONTENTS – Performance to date – QCTO – qualifications review – Challenges – Opportunities

6. ACCREDITED PROVIDERS AS AT JANUARY 2014 Total for the year: 335 Total since 2001: 2,267

7. PERFORMANCE TO DATE ASSESSORS

8. PERFORMANCE TO DATE MODERATORS

9. PERFORMANCE TO DATE CERTIFICATES PRINTED End User ComputingTechnical Support 1211 1388 System SupportSystem Development 870 1335 Film and TelevisionJournalism 117 24 AdvertisingDatabase Administration 181 121 Broadcasting EngineeringDatabase Development 45 50 Design Foundation 39 Total for 2013/14: 5 381

10. PERFORMANCE AGAINST SCARCE AND CRITICAL SKILLS LIST

11. Scarce Skills (Electronic Media and Film Subsector) OFO CodeOccupationTotalInterventions Number of Learners 264204Radio Journalist19 Bursary/Internship/ Learnership 42 265401 Director (Film, Television, Radio or Stage) 11 Bursary/Internship40 264101Author24Bursary/Internship34 352102 Camera Operator (Film, Television or Video) 4 Bursary/ Internship/Learnership 25 343907Continuity Person8 Internship/ Learnership12 352105Radio Station Operator5 Bursary/ Internship/ Learnership 8 241107Financial Accountant4 Bursary/Internship8 121101Finance Manager3 Bursary/Internship6 352103Sound Technician5 Bursary /Internship/Learnership 6 343101Photographer10 Bursary /Internship5

12. Scarce Skills (IT and Electronics) OFO CodeOccupationTotalInterventions Number of Learners 252301 Computer Network and Systems Engineer 50Internship300 251201Software Developer37Internship280 352201 Telecommunications Technical Officer or Technologist 35Bursary/Internship/ Learnership140 311301 Electrical Engineering Technician 71 Bursary/Internship/Learnership/ Apprenticeship/Learnership 160 122101 Sales and Marketing Manager 24Bursary/Internship38 251401Applications Programmer26Bursary/Internship/ Learnership36 215201Electronics Engineer20Bursary/Internship/Learnership36 351201 ICT Communications Assistant 16Bursary/Internship/ Learnership26 214401Mechanical Engineer35Bursary/Internship20 214201Civil Engineer29Bursary/Internship18 215101Electrical Engineer32Bursary/ Internship8 215103Energy Engineer20Bursary/Internship/Learnership0

13. Scarce Skills (Telecommunications) OFO CodeOccupationTotalInterventions Number of Learners 252301 Computer Network and Systems Engineer 45Learnership840 251203Developer Programmer25 Bursary/Internship/ Learnership 400 352201 Telecommunications Technical Officer or Technologist 23 Bursary/Internship/ Learnership 200 522304ICT Sales Assistant60 Bursary/Internship/ Learnership 80 235601ICT Trainer32 Bursary/Internship/ Learnership 35 243402 ICT Business Development Manager 101 Bursary/Internship/ Learnership 20 133102ICT Project Manager34Bursary/Internship20 252901ICT Security Specialist29Bursary/Internship20 241204Financial Markets Practitioner28Bursary/Internship16 242401 Training and Development Professional 15 Bursary/Internship/ Learnership 10

14. Scarce Skills (Advertising) CodeOccupationTotalInterventions Number of learners 216603Multimedia Designer47 Bursary/Internship/Learne rship 60 216604Web Designer7 Bursary/Internship/ Learnership 55 243101Advertising Specialist27Bursary/Internship35 251301Multimedia Specialist3Bursary/Internship35 441901 Classified Advertising Clerk 5 Bursary/Internship/ Learnership 15 441302Proof Reader3Bursary/Internship15 216601Graphic Designer20 Bursary/Internship/Learne rship 14 216602Illustrator5 Bursary/Internship/ Learnership 10 264201Copywriter10Bursary/Internship6 432201Production Coordinator4 Bursary/Internship6

15. QUALIFICATIONS REVIEW – Expiry in 2015 – New qualifications – Mapping to occupations

16. CHALLENGES AND OPPORTUNITIES OFO Occupation Advertising SpecialistMultimedia Specialist AnalystNewspaper or Periodical Editor Broadcast Transmitter OperatorPhotographer Camera Operator (Film, Television or Video)Photographer's Assistant Casting DirectorPhotographic Developer and Printer Classified Advertising Clerk CopywriterProduction Assistant (Film, Television or Radio) Data and Telecommunications CablerProgram Director (Television or Radio) Data Entry OperatorRadio Journalist Database Designer and AdministratorRadio or Television Programme Organiser DesignerRadio Presenter Director (Film, Television, Radio or Stage)Radio Station Operator Director of PhotographySound Technician Electronics and Telecommunications Trades AssistantSpecial Effects Person Electronics EngineerStage Manager Electronics Engineering TechnologistTechnical Director Film and Television Production ManagerTelecommunications Cable Jointer Film and Video EditorTelecommunications Engineering Technologist Film TechnicianTelecommunications Field Engineer Graphic DesignerTelecommunications Line Mechanic ICT SystemsTelecommunications Network Engineer IllustratorTelecommunications Technical Officer or Technologist Light Technician Location Manager (Film or Television)Telecommunications Technician Media MonitorTelevision Equipment Operator Media ProducerTelevision Journalist Microphone Boom OperatorVideo Producer MultimediaWeb Designer Web Developer Web Technician Word Processing Operator

17. QUALIFICATIONS REVIEW QualificationUptake analysis 63769: National Certificate: Business Analysis Support Practice: NQF Level 5 No learners reflected on NLRD. 62069: National Certificate: Radio Production: NQF Level 5 Yes 49122: National Certificate: Radio Station Management: NQF Level 5 58978: National Certificate: Journalism: NQF Level 5Yes 58820:National Certificate: Advertising No uptake of learners 50479:Further Education and Training Certificate: Advertising: NQF Level 4 49121: National Certificate: Interactive Media: NQF Level 5 49138: National Diploma: Copywriting: NQF Level 5 49127: Further Education and Training Certificate: Design Foundation: NQF Level 4 Yes, high learner uptake 49121: National Certificate: Interactive Media: NQF Level 5 60509: National Certificate: Design Techniques: NQF Level 5

18. QUALIFICATIONS REVIEW QualificationUptake analysis 57611:National Certificate: 2D Animation: NQF Level 5 Yes 57607:National Certificate: 3D Animation and Visual Effects: NQF Level 5 49121: National Certificate: Interactive Media: NQF Level 5 60509: National Certificate: Design Techniques: NQF Level 5

19. QUALIFICATIONS REVIEW 65876: Certificate: Yes Telecommunications Systems: NQF Level 5 65874: Further Education and Training Certificate: Telecommunication Systems: NQF Level 4 59057: Further Education and Training Certificate: Telecommunication Network Operations: NQF Level 4 21797:Certificate: Telecommunications for Customer Premises Equipment: NQF Level 4 21799:Certificate : Telecommunications for Customer Premises Equipment: NQF Level 3 21799: Certificate : Telecommunications for Customer Premises Equipment: NQF Level 3 78963: Certificate: Telecommunications for Customer Premises Equipment: NQF Level 2

20. QUALIFICATIONS REVIEW 61450:Further Education and Training Certificate: Film and Television Production Operations: NQF Level 4 No uptake of learners only for the :73298: Further Education and Training Certificate: Photography: NQF Level 4 58394: National Certificate: Film and Television Production NQF Level 5 73298: Further Education and Training Certificate: Photography: NQF Level 4

21. QUALIFICATIONS REVIEW 48792:Certificate: Broadcast EngineeringYes 65876: Certificate: Yes Telecommunications Systems: NQF Level 5 65874: Further Education and Training Certificate: Telecommunication Systems: NQF Level 4 59057: Further Education and Training Certificate: Telecommunication Network Operations: NQF Level 4 21797:Certificate: Telecommunications for Customer Premises Equipment: NQF Level 4 21799:Certificate : Telecommunications for Customer Premises Equipment: NQF Level 3 21799: Certificate : Telecommunications for Customer Premises Equipment: NQF Level 3 78963: Certificate: Telecommunications for Customer Premises Equipment: NQF Level 2

22. CHALLENGES AND OPPORTUNITIES Challenges – Certification turnaround times – Monitoring – Public perception about SETA qualifications – Provision of services at no cost – Maintain the compliance and performance standards whilst improving turnaround times – Improving performance Opportunities – Improve evaluation turnaround times – Improve the image of the SETA

23. Sekgana Makhoba Senior Manager: Sector Skills Planning

24. CONTENTS –Performance to date –Divisional Plan –Mandatory Grants processes –Challenges and opportunities

25. NSDS Target Target SECTOR PROFILE Subsector Sub sector per sizeNumber of employersLevy payingSubmitted WSPs Telecoms7%1228425146 Film and Electronic Media12%215130677 Advertising13%2303453121 Electronics14%2469554196 IT54%93982128656

26. NSDS Target Target NUMBER OF EMPLOYERS PER SUB-SECTOR

27. Target TOTAL NUMBER OF EMPLOYERS vs. LEVY-PAYING AND PARTICIPATING EMPLOYERS

28. Number of Employees Per Sub-Sector Total 154123

29. NSDS Target Target MONITORING AND EVALUATION Total: 107

30. NSDS Target Target SSP DIVISIONAL PLAN – SMEs and SDFs Skills Development Workshops and Fora – Introduction of a new SETA Management System (SMS) and support – Compliance with SDA & SDLA requirements ATRs and WSPs submissions (February - April) Mandatory Grants allocations Equity Training Committees – Research and development of a credible SSP – Development of Career Guide and meaningful Career Guidance – Monitoring and Evaluation

31. MANDATORY GRANTS PROCESS Annual Training Reports (ATRs) and Workplace Skills Plans (WSPs) submissions (Feb-April) ATRs and WSPs evaluation and approvals (March-June) Receipt of levy reports from DHET and uploading on the SETA Management System (SMS) Mandatory Grants payment report from the SMS for verification and approval purposes Mandatory Grants payments (quarterly basis) Payment of skills development levies by employers to SARS (Monthly)

32. NSDS Target Target CHALLENGES – Accounting for mandatory grants expenditure – Critical and scarce skills – Training Committees – Employers and I/SDF communication gaps – Employer records and information management

33. NSDS Target Target OPPORTUNITIES – Learning Organisations – Meaningful stakeholder participation resulting in improved relations – Effective and more accurate workplace planning and reporting (WSP/ATR) – Credible and reliable SSP – Relevant and credible MICT SETA

34. Jabu Sibeko Senior Manager: Learning Programmes

35. CONTENTS – Performance to date – Learning Programmes Plan – Discretionary Grants (DG) application process – Challenges and opportunities

36. PERFORMANCE TO DATE Learning Programme2013/14Impact (Employment) Internships12601008 Skills Programmes317237 MCSE280 (+120)280 (120 in progress) Bursaries – Universities & FETs600600 in progress Learnerships15511085 End-user computing learnership1320 Total5448 (3408)3330 (2610) (76.5%)

37. LEARNING PROGRAMMES PLAN – Engage MICT stakeholders through focused group meetings/workshops – Establish effective collaborative partnerships with Universities and public FET Colleges – Align completion of learning programmes with graduations/issuing of Certificates – Market public FET graduates to MICT employers – Advance planning of graduations in partnership with the MICT SETA

38. LEARNING PROGRAMMES PLAN Learning Programme2014/15 PIVOTAL Programmes (80% of Discretionary Grants budget) Graduate Internship Programme610 Skills Programmes1900 Short Courses1000 Bursaries – Universities1003 FET Graduate Workplace Experience1500 Learnerships3276 Total9289

39. DISCRETIONARY GRANTS APPLICATION PROCESS Receipt of Letter of Intent (LoI) Day 1 Receipt of Letter of Intent (LoI) Day 1 Desktop verification of Levy Contribution by SSP Day 1 Confirmation of accreditation status of the training provider by ETQA (L/ships & Skills Programmes) Day 2 Approval to conduct site vetting by Snr Manager – LPD Day 3 Approval to conduct site vetting by Snr Manager – LPD Day 3

40. DISCRETIONARY GRANTS APPLICATION PROCESS Site Vetting of Employer by LPD Advisor. Day 4 - 7 Site Vetting of Employer by LPD Advisor. Day 4 - 7 DG Committee evaluates the application, allocates budget and recommends to the CEO for approval Day 8 DG Committee evaluates the application, allocates budget and recommends to the CEO for approval Day 8 Drafting and signing of the SLA Day 13 - 15 Drafting and signing of the SLA Day 13 - 15 Verification of Service Level Agreement (SLA) details Day 9 - 13 Verification of Service Level Agreement (SLA) details Day 9 - 13

41. DISCRETIONARY GRANT PAYMENT PROCESS FLOW DISCRETIONARY GRANT PAYMENT PROCESS FLOW 1 st Disbursement: Submission of roll-out plan; Agreements; Uploading of learners on the database. 1 st Disbursement: Submission of roll-out plan; Agreements; Uploading of learners on the database. 2 nd Disbursement: Submission of progress report; Uploading of assessments; Site visit report. 2 nd Disbursement: Submission of progress report; Uploading of assessments; Site visit report. 3 rd Disbursement: Submission of progress report; Uploading of assessments; Site visit report. 3 rd Disbursement: Submission of progress report; Uploading of assessments; Site visit report. 5 th Disbursement: Submission of Moderation Report; Verification site visit by ETQA. 5 th Disbursement: Submission of Moderation Report; Verification site visit by ETQA. 4 th Disbursement: Submission of progress report; Uploading of assessments; Site visit report. 4 th Disbursement: Submission of progress report; Uploading of assessments; Site visit report. Issuing of Certificates by ETQA (L/ships) Issuing of Statement of Results (Skills Programmes) Verification of Placement by LPD Issuing of Certificates by ETQA (L/ships) Issuing of Statement of Results (Skills Programmes) Verification of Placement by LPD

42. SARS Tax Rebates  Employers can apply for Tax rebates to SARS for hosting learners on Learnerships  SARS Tax rebates for Learnerships  18.1 learners up to R 50 000 (R 25 000 commencement and completion allowances)  18.2 learners up to R 60 000 (R 30 000 commencement and completion allowances)  Disabled learners up to R 100 000 (R 50 000 commencement and completion allowances)  Form IT 180 as per Section 12H of the Income Tax Act www.sars.gov.za 42

43. CHALLENGES – Budgetary constraints – Few MICT companies in rural areas – Companies paying levies but not participating (WSP submissions) – Placement/jobs – Participating companies not submitting claims and reports – Equity: 85% Black, 15% White, 54% women, 4% disability

44. OPPORTUNITIES – Increased number of participating companies resulting in more learners being trained and employed – Partnerships (NSDS III) between FET colleges, universities and employers for integrated learning – Partnerships with Provincial and Local Municipalities to implement programmes in rural/township areas

45. Oupa Mopaki Chief Executive Officer

46. NSDS Target Target REVISED FUNDING MODEL: GAZETTE NOTICE NO 35940

47. THE ICT SECTOR SKILLS DEVELOPMENT COMMITMENTS ICT SECTOR CODE, GAZETTE NO. 35423, 6 JUNE 2012.

48. THE ICT SECTOR CODE SKILLS DEVELOPMENT COMMITMENTS – Introduction and Background – Skills Development Scorecard – Sector Skills Development Commitments – Principles for Measuring Skills Development – Status of the Codes – Definition of ICT SECTOR – Signatories to the Codes

49. – To claim contributions towards skills development a company must;. comply with the Skills Development Act. be registered with MICT SETA as an employer. have developed a Workplace Skills Plan and implemented programmes targeted at Priority Skills in the Sector. INTRODUCTION AND BACKGROUND

50. – The purpose of this Gazette is to quantify the Rand value committed by the ICT Sector on the training of black employees. – In 2012, Minister of Trade and Industry, Dr. Rob Davis Gazetted the ICT Sector Codes of Good Practice (ICT Sector Codes) in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act (B-BBEE Act, Act no. 53 of 2003). – This Gazette comes after a period of nine years (9) since the First Draft ICT Charter was released for public comment as part of the Sector’s commitments to B-BBEE. – The ICT Sector Code is binding to all stakeholders operating in the Sector. – Skills Development is one of the seven (7) elements of B-BBEE to promote skills development in the Sector. INTRODUCTION AND BACKGROUND

51. Oupa Mopaki Chief Executive Officer OVERVIEW 162 000 x 5% = 8 100 Black Employees 8 100 x R 35k = R 284m (284m/540m) x 1% = 0,53% of Leviable Amount

52. SKILLS DEVELOPMENT PRINCIPLE – The Skills Development Code defines the Sector’s financial commitment towards skills development spend on black employees, agreed targets and how skills development is calculated and measured. TRAINING OF BLACK EMPLOYEES – Black employees are defined as Africans, Indians and Coloureds who are South African by birth or naturalised before 1996. SECTOR SKILLS DEVELOPMENT COMMITMENTS

53. – The Sector committed to spending at least 3% of the total leviable amount on training black employees every year. This translates to R1.6b. – The Sector also committed to spending another 0.3% on disabled black employees. This translates to R162m. – The R1.6b and the R162m, between April 2014-March 2015, are based on the MICT SETA’s total 1% Skills Development Levy income for period 2012/13 which amounts to R540m. SECTOR SKILLS DEVELOPMENT COMMITMENTS

54. – The Sector committed to have the number black employees participating in Learnerships or Category B, C and D Programmes as 5% of total employees. This translates to 8 100 black employees based on the total of 162 000 employees in the MICT sector. – In order to determine the percentage of Leviable Amount relating to the training of 8 100 black employees, an average training cost of R 35k per employee per year is envisaged. The total training cost of R 284m is assumed to include the employees’ salaries and training providers’ fees whilst they are undergoing training. The percentage of Leviable Amount then translates to 0.53% of payroll. – The total ring-fence should then be R 1.6b + R 162m + R 284m = R 2b – SECTOR SKILLS DEVELOPMENT COMMITMENTS

55. – In terms of the BEE BILL, state owned entities must take into account and apply any relevant code of good practice in terms of the Amended Act in – determining criteria for awarding of incentives, grants and investments schemes in support of broad-based black economic empowerment. – The BEE BILL was submitted to the President in November 2013 to sign into law. STATUS OF THE CODES ON STATE OWNED ENTITIES

56. The “Information & Communications Technologies Sector” shall mean the sector in which employers and employees are associated for the carrying on of any one or more of the following activities: Marketing, manufacturing, assembling, servicing, installing, maintaining and/or repairing systems, software, equipment, machines, devices and apparatus, whether utilising manual, photographic, optical mechanical, electrical, electrostatic or electronic principles or any combination of such principles, that are primarily intended for the recording and/or processing and/or monitoring and/or transmission of voice and /or data and/or image and/or text or any combination thereof for use in any one or more of the following activities: –accounting, calculating, data processing, data transmission, duplicating, text processing, document reproduction, document transmission, record keeping and record retrieval, broadcasting or transmission for entertainment or information purposes of voice and/or image and/or text or any combination thereof and/or; the provision of services relating to the above. DEFINITION OF ICT SECTOR

57. Black IT Forum (BITF); Communications Cabling Association of South Africa (CCASA); Computer Society of South Africa(CSSA); Electronic Industry Federation (EIF); Independent Communications Authority (ICASA); Information Industry South Africa (IISA); Internet Service Providers Association (ISPA); Information Technology Association ( ITA); ISETT SETA; MAPPP SETA; National Association of Broadcasters (NAB); National Community Radio Forum ( NCRF); National Independent Telecommunications Organisations of S.A (NITOSA); NEDLAC- Community; NEDLAC – Labour; South African Communications Forum (SACF); South African Contact Centre Community (SACCCOM); South African SMME Forum (SMME Forum); South African VANS Associations (SAVA); Business Unity SA (BUSA). SIGNATORIES TO THE ICT SECTOR CODE

58. THANK YOU Head Office: 011 207 2600 Durban: 031 307 7248 East London: 043 726 0763 Cape Town: 021 461 3926 www.mict.org.za