2. Outline About UYF Programmes of UYF Description, Achievement, Lessons, Challenges Context (Conditions, Policies) Financial information Plans 2004 - 2006

3. Feb 1998Budget Speech - Minister of Finance announces a levy on the demutualisation proceeds establish the UYF Sep 1998Government Gazette - Demutualisation Act Oct 1999Monies are transferred from SARS to the Umsobomvu Youth Fund account and placed a deposit with CPD Oct 1999National Treasury begins the process of appointing the Board of Directors Nov 1999Articles of Association drafted Jan 2000Board of Directors appointed Feb 2000Board of Directors meet for the first time Mar 2000Board begins the process of appointing the CEO History

4. Jul 2000Government Gazette amending the Demutualisation Act to exempt the UYF from income tax Aug 2000Consultative Forum Jan 2001CEO and COO are appointed Jan 2001Strategic planning session between the Directors and Management to establish four key result areas for the UYF Mar 2001Bankers, auditors and asset consultant are appointed Mar 2001Work commenced on the internal structure, policies, procedures and systems to administer the UYF Mar 2001Board of Directors approve the focus areas of the UYF Apr 2001Recruitment process to fill 10 strategic posts begins History

5. INVESTMENTS & PROJECTS Contact, Information & Counselling Skills Development & Transfer Youth Entrepreneurship  Youth information service -Youth line -Youth portal -Youth advisory centres -Youth Card  On-the-job Training / Skills Development -National Youth Service  School to Work (FETCs)  SME Finance  Cooperative Funding  Micro Finance  Business Development Support -Entrepreneurship Education -New Venture Creation Learnership -Business skills development voucher programme Focus of the Fund

6. Commitments TYPE NO of PROJECTS AMOUNT Core projects 74R589 million M& E, CBR16 R 13,6 million TOTAL90R602 million

7. Targets* 50 000 jobs by 2006 *At current funding commitment level

8. Participants to date ProgrammeNumber of beneficiaries 1. Youth Advisory Centres80 554 2. Youth Line83 480 3. Business Development Services Voucher Programme3 356 4. Entrepreneurship Education10 000 4. Small & Medium Enterprise Finance 60 5. Micro Finance1 015 6. Youth Co-operatives Finance120 7. School to Work2 236 8. Community Youth Service990 9. Skills Training (including Volunteer Campaign)1 572 10. Youth Portal507 000 Total beneficiaries in excess of 650 000

9. Entrepreneurship Target Market

10. PROGRAMME AREAS

11. EF PROGRAM STRUCTURE  Progress Fund: R100 million Fund – provides finance from R100k to R5,000k to SMEs which are beneficiaries of procurement contracts.  Franchise Fund: R125 million Fund – provides finance from R150k to R3,000 for purchase of new or existing franchises.  General Fund: R90 million Fund – provides finance from R50k to R5,000k to SMEs which are not covered by Franchise or Progress Fund  Micro-Finance: Provides finance of up to R50k for start up or expansion of existing business.  Co-operatives: Provides finance to groups of people in co-operative up to R500,000 per co-operative

12.  Micro: 1015 enterprises (2000 jobs)  SME: 60 SMEs (979 jobs)  Co-investment: R50 million (7:1)  Private sector involvement – Banks  High (50%) support for women in micro  Returns = 21%-22% (Portfolio)  Bank direct commitment of R160 million and indirect of R320 million)  Strong expression of interest from other Banks  Partnership in process with ECDC and Ithala  Achieved significantly more than Khula, Msele-Nedventures, NEF Ventures, Equity Africa ACHIEVEMENTS

13. 2004/2005 PLAN  Approve R60 m loans/investments to SMMEs  SME (70), Co-operatives (28), Micro (1,208)  Leverage private sector finance = 2:1 (R340m : R170m)  Implement partnerships with ECDC, Ithala, MEEC, NPDC; Provincial Investment Promotion Agencies and Provincial Departments  Create / preserve 3,000 jobs  Women-owned SMMEs = 60%  Design, develop, implement mainstream micro  Gross portfolio return >20%

14. MEDIUM TERM PLAN  Fully disburse in next 4 years  Co-investment target from 7:1 to 0.5:1  Create / sustain 17,000 jobs for mainly youth  67% (vs 50%) of SMMEs - women-owned  Successful mainstream micro-finance model  Successful mainstream co-operatives model  Lower cost of financing for micro-businesses and co-operatives (partnership with SACCOL)  Gross portfolio return (>20%)

15. CHALLENGES  Attracting private sector investment in SMME  Increased private sector investment vs UYF influence  Managing stakeholder expectations  Managing growth  Balance developmental & financial returns  Maintain focus (especially if seen as successful)  Balancing breadth / depth of programs  Improving outreach  Creating and strengthening partnerships  Lower operating costs of programs / projects  Lowering cost of financing to SMMEs.

16. Entrepreneurship Education

17. How Voucher Programme Works  Client completes voucher application form  Undergoes assessment and identification of required intervention  Pays contribution (10%) into BDSVP account  Selects preferred SP from SP directory  Attends the approved intervention  Endorses voucher on completion of intervention  Provides continuous feedback to AA on the provision of services including final evaluation of the intervention

18. BusinessDevelop ment Services Voucher Programme

20. Future Plans 2004/5 Entrepreneurship Education Review of entrepreneurship education programmes (UWC) and finalisation of EE strategy Hosting of National Entrepreneurship Conference (EE, BDS, access to finance) 20 000 young people to be assisted to enhance their entrepreneurial skills. BDS Voucher Programme Roll out of programme to remaining provinces : Free State, Mpumalanga, Northern Cape & North West (RFP for SPs & AAs already issued) Provision of business support to 6000 young entrepreneurs Approximately 9000 direct jobs to be created/sustained through programme.

21. Role of Umsobomvu in NYSP In 2003 Implementation Plan was developed and adopted by Cabinet The Umsobomvu strategy was to ensure that there was a national framework which would ensure the implementation of NYS to scale 5 000 young people will commence the project in 2004. The responsibility for implementing this programme falls to many agencies. UYF’s responsibility is to resource the youth development components. The National Youth Service Programme is an initiative of the Presidency and managed by a Project Partnership Team. Govt. dept. are resource agents.

22. Role of Umsobomvu UYF will support the youth service programme in a number of ways, including: Funding for the youth development components; Assisting with exit opportunities; Running capacity building for the institutions that are managing the programmes; and Developing the training material and running the training programmes for the technical advisors and the programme and institutional assessors. Many of these roles are likely to be particularly intense during the first phase of implementation. In the immediate term UYF is developing the scope of the initial service projects with govt. departments.

23. Areas of service 2004 Department of Health 3 000 Department of Social Development 500 Community Development Worker Support 250 MPCCs250 Conservation and environment 500 Agriculture 500 Infrastructure: 1 000 Construction: 1 000 Additional 500 The Sector plans agreed by the EPWP are guiding the location and nature of projects.

24. Programme Description School to Work The School to Work (STW) Programme is a strategic intervention aimed at improving the employability of youth in high growth sectors through the development of high level technical skills training and work experience Targets unemployed matriculants & graduates

25. Programme Model Life & professional skills training for holistic development Technical skills training & entrepreneurship education to assist youth to acquire sufficient preparation for the world of work Structured work experience to develop learners’ occupational competencies & an opportunity to apply theory Case management (counselling support, mentorship, follow-up and aftercare)

26. Target Areas Accounting Agriculture Banking and Financial Services Engineering Information Technology Sport and Entertainment New sectors under FETC RFP Mining Manufacturing Agri-processing Engineering

27. External integration Partnerships with Setas Poslec Seta: Learnership for People with Disabilities Chieta: Medical Sales Representative Learnership Insurance Seta: Formalisation of the RAF Internship into a Learnership Benefits Joint project design Co-funding Access to employers Integration of life skills & entrepreneurship education Integration of Enterprise Funding and BDS for self-employment exit opportunities Lessons Learnt (cont.)

28. 2004-2005 Plans Formalise current projects into learnerships Contract 18 public FET colleges (34 proposals received) Increase provincial representation through FET colleges, parastatals & Setas. New projects in NW, NC, EC & FS Increase participants to 3500 by March 2005 Increase employment rate to 90% through BDS & Enterprise Finance Increase partnerships Conceptualise Career Development Programme with DoE

29. The Public FET Colleges Programme In line with our mandate, UYF has identified DoE as a strategic partner to deliver skills development interventions for unemployed youth. UYF & DoE are currently finalising the operational plan which will guide the implementation of identified interventions, one of which is to support public FET colleges to deliver skills & learnership programmes.

30. The Public FET Colleges Programme The FET Colleges Programme began in February with the following investment from UYF: Technical support to enable colleges to consolidate various capacity building interventions they have received. Technical support to assist colleges to align their programmes with SETA requirements R18 million direct investment into training programmes over the next 2 years.

31. Purpose and Nature CIC Project Purpose Young people make informed decisions about their skills development, employment and self-employment and are linked to sustainable livelihood opportunities (What is CIC?)What is CIC?

32. Achievements since 2001 UYF Institutional Infrastructure and Capacity Developed  CDMP operational - Content Development and Management Project (CDMP),  YouthConnect operational as of March 2004  YL (Call Centre) has serviced 60 000 callers in last year  Internet Portal now live!  SAY! to be launched in June 2004 Service Provider Institutional Infrastructure and Capacity Developed  13 YACs operational  YACs have serviced 86 554 direct beneficaries and benefited 408 indirect beneficiaries

33. Achievements since 2001 - Continued CDMP  46 Information Products developed in key information areas and converted for the web (CDMP Information Products)CDMP Information Products  Database of 18 000 Youth Service Providers  Database of careers and 900 bursaries  20 + Project Management Resources developed IP has deployed an information site, corporate site and also systems for the development, management and dissemination of content (Internet Portal Screenshot)Internet Portal Screenshot SAY! is conservatively expected to reach 65 000 in Year 1 young people in 2004/5

34. CDMP Information Products Information StreamTitles Employment 1.You and the Workplace: A Guide for Young People 2.Using Labour Market Information: A Guide for Young People 3.Fact Sheet: Special Public Works Programmes 4.Industry Profiles Entrepreneurship 1.From Idea to Opportunity: A Guide for Young People 2.Getting Business Finance: A Guide for Young Entrepreneurs 3.Starting Your Own Business: A Guide for Young Entrepreneurs 4.Writing a Business Plan: A Guide for Young Entrepreneurs 5.Starting a Co-operative: A Guide for Young People 6.Networking Your Way To Business Success: A Guide for Young Entrepreneurs Education and Training 1.Career Planning and Development: A Guide for Young People 2.Education and Training Options in South Africa: A Guide for Young People 3.A Learner’s Guide to Higher and Distance Education 4.Careers and Occupations Directory for Young People Citizenship 1.Fact Sheet: Establishing and Running Community Committees 2.Fact Sheet: Types of Organisations Working In and With Communities 3.Fact Sheet: How to Raise Funds 4.Fact Sheet: Public Participation – Getting Involved in Decision-Making that will Affect Your Community 5.Fact Sheet: What are My Right s and Responsibilities as a Volunteer? 6.Fact Sheet: Why Should I Volunteer? 7.Fact Sheet: Making Use of Volunteers 8.Is My Community Project Working? A Basic Guide to Evaluation 9.Let’s Get Involved with Our Communities: A Guide 10.Understanding My Community’s Needs: A Guide 11.Developing Life- Skills for Citizenship: A Guide 12.Get Active! You’re A South African 13.My Rights and Responsibilities as a South African Citizen 14.What Does Democracy Mean for Me? 15.The Nuts and Bolts of Volunteer Programmes and Policy 16.Understanding Volunteering: A Guide for Young People Health and Wellbeing 1.Coping with Teenage Pregnancy: A Guide for Young People 2.Dealing with HIV/ AIDS in the Workplace: A Guide for Young People 3.Fact Sheet: Substance Abuse and Addiction 4.Fact Sheet: Do I Have a Substance Abuse Problem? 5.Fact Sheet: How Substance Abuse Affects Your life 6.Fact Sheet: Sexually Transmitted Infections 7.Fact Sheet: Preventing HIV/AIDS 8.Fact Sheet: Voluntary Testing and Counselling 9.Fact Sheet: Positive Living 10.Fact Sheet: Healthy Eating 11.Fact Sheet: The ABCs of Good Health 12.Fact Sheet: Leisure and Fitness 13.Safe Sex Revolution: A Guide for Young People back

35. Lessons Learned UYF Investments  UYF investments are skewed to infrastructure, labour, capacity building and operational costs  Currenty the average YACs costs are: o± 45% on Infrastructure and Operations o± 40 % on Labour and Capacity Building o± 15% on Direct Programme Related (some programme costs are built into Labour costs) Scale and Sustainability will be achieved through Partnerships (to be covered later)

36. Partnerships, Sustainability and Scale Key Principles of Sustainability Working through Infomediaries Deploying innovative dissemination tools – Internet Portal, Community Print Media, Radio, On-demand Print, On-demand Mulit-media Datacasting Through Partnerships with:  GCIS – 2000 Points of Presence (POPs), databases of 5000 + government services  MPCCs – projected 50 sites nationally  USA Telecentres – projected 100 sites nationally with internet connectivity  DoL Labour Centres – approximately 150 sites nationally  Local Governments - approximately 290 local governments  LoveLife Centres – as sites for info dissemination  Strategic partnerships with Youth Formations and Bodies – SAYC, NYC, etc.  Network of Municipal Libraries  Network of Higher Education and FET Institutions Libraries/ Student Centres  Mindset Livelihoods Channel – 800 000 households, 2000 schools  Community Radio – average of 80 000 listenership per station Use Youth Advisory Centres for learner recruitment & reference purposes

37. CIC going forward Key to CIC Impact: Move Information Content to where Young People are – focus less on physical infrastructure and more on creating access Use ICT to effectively develop, manage and disseminate content Target UYF investments to information content development and training of infomediaries Ensure integration with partners who share common purpose

38. Performance UYF pioneering almost all the initiatives in South Africa 2 years of programme experience. Growing i.t.o geographic coverage & scale Received R855 milliion, committed R500 million to 88 projects. More than 100 000 young people have participated in UYF projects

39. Challenges Risk of being perceived as a panacea Improving access especially for rural areas Launch of the “Take it to the People” concept Recruitment of Prov. Coordinators Dependancy on partners Youth development agenda not mainstreamed Diminishing resource base (sustainability) Capacity (internally & externally)

40. Challenges Capacity of Service Providers – OD, accreditation, partnerships & job development Formalise partnerships with the public and private sector institutions = sustainability