1. Eastern Cape and ECD Funding PRESENTATION TO SELECT COMMITTEE ON FINANCE Parliament, Cape Town 29 August 2008 By Denver A. Webb HOD, Department of Social Development Province of the Eastern Cape

2. “None of the great social problems we have to solve is capable of resolution outside the context of the creation of jobs and the alleviation and eradication of poverty. This relates to everything, from the improvement of the health of our people, to reducing the levels of crime, raising the levels of literacy and numeracy, and opening the doors of learning and culture to all…” -Pres. Thabo Mbeki, SONA, 9 February 2007

3. Introduction Vision To create a better life for all in the Eastern Cape by providing care, protection and development for the poor and the vulnerable. Mission To improve the quality of life and social well-being of people of the Eastern Cape through integrated and developmental social services in partnership with relevant stakeholders, utilizing appropriate and available resources.

4. Introduction ECD seen as very important intervention to reduce child poverty. Also important intervention to break cycle of inter-generational poverty. ECD interventions not an end in themselves, but integral part of the Eastern Cape poverty Eradication model Also contribution to EPWP

5. 5 Mitigating Vulnerability  Social grants  ECD  Free schooling  School Nutrition Scheme  Free basic services  Free Health Care  Housing  Social Relief of Distress  Access to land  Transport (bicycles, subsidized public transport)  HCBCs Promoting Sustainable Livelihoods  Youth Development Projects  Women’s cooperatives  Siyazondla  Sustainable Livelihoods projects  Learnerships and Internships  CDWs  EPWP  Micro-Enterprises  Cultural industries  Education  Healthcare  JIPSA  ASGISA Ensuring Full Participation in Economic Activity  SMMEs  Co-operatives  Small-scale farming  Access to formal Employment Industrialisation Agrarian development  Growth of EC economy  JIPSA  ASGISA TRACK FAMILIES/HOUSEHOLDS OVER THREE YEARS Social Security Database ? House holds Below R800 p.m. MLL? Poverty line of R430 per caoita with upper and lower thresholds ? R591, R800 or 1500 p.m income ? Educat. std? Access to land? Criteria for graduati ng? Skills? Educati on? Eastern Cape Poverty Reduction Model

6. 2001 CensusChildren 0 – 4 years Alfred Nzo47 304 Amathole147 120 Cacadu33 171 Chris Hani81 280 O R Tambo215 827 Ukhahlamba35 352 NM Metro77 230 Provincial Total637 284 StatsSA midyear estimates 2008 Total Population in the Eastern Cape6 579 300 Children 0 – 4691 300 Context: Eastern Cape Demography Informing ECD

7. 7 Registered and Accredited ECD Sites in Eastern Cape 2007/082008/09 DistrictRegisteredSubsidisedNewly Registered Subsidised Alfred Nzo75 1080 Amathole446416134437 Cacadu77 279 Chris Hani21921216228 O R Tambo224 14231 Ukhahlamba65 1075 NM Metro72 0 Totals117811411581202

11. Budget Allocation for ECD 2007/08 and 2008/09 Total budget allocation (R millions) 2007/082008/09 Department of Social Development (Vote 4) Sub-Programme 2.6: Child Care & Protection R162 316 000R227 783 000 Sub-Sub-Programme: Early Childhood Development R78 330 000R87 700 529 ECD % increase12%

12. Policy Speech Commitment In his 2008/09 Policy Speech, the MEC placed special emphasis on: Massification of Early Childhood Development (ECD) to reach poor communities in every corner of the Province and to address child poverty. “Early Childhood Development is one of the Apex and sectoral priorities that is seen as a major intervention to deal with child poverty. Not only does it provide poor children with daily sustenance, but it also provides them with a head start when they enter the mainstream of education. The Department will this year fund an additional 100 ECD centres with special focus in the 11 identified poorest municipalities. This intervention will be done in collaboration with other social needs cluster Departments and local municipalities. We will also accelerate the ECD registration campaign which started last year. An amount of R23, 6 million has been allocated for this increase. As part of this broader transformation programme to deal with child poverty, Madam Speaker, we are happy to announce that tariffs will increase from R9 to R12 per child per day in subsidised Early Childhood Development Centres (ECDs). This increase is meant to improve nutrition, recreation and administration of Early Childhood Development Centres to prepare them mentally and physically for assimilation of education at grade 1 level.”

13. Tariff Structure for Subsidised ECDs 2007/08 and 2008/09 2007/082008/09 AdministrationR3.00R4.00 RecreationR2.00R3.00 NutritionR4.00R5.00 Total per child per day of attendance R9.00R12.00

14. Assessment of Funding and Performance Had a registration campaign launch in October 2007. In 2007/08 set a target of registering 225 new ECD sites, which was not met. Only 17 new sites were funded for 2007/08. Signed SLA to formalise partnership with Department of Education in October 2007, to clearly establish roles and responsibilities. In EC, ECDs are subsidised on basis of signed 3 year SLA, annual allocation letter and submission of monthly claims of actual attendance. 72 800 children benefited from the ECD during 2007/08. 3 369 Work Opportunities were created in ECD through EPWP during 2007/08 Now special focus placed on the 11 poorest or least developed Local Municipalities.

15. Rural Beneficiaries 1141 ECD sites were funded, 72 800 children were subsidised and 2 282 caregivers benefited in 2007/08 785 sites are outside the NMM and Buffalo City, 49 728 children are subsidised, 1 570 caregivers benefited. 356 sites are in the NMM and Buffalo City, 23 072 children are subsidised, 712 caregivers benefited.

16. ECDs and EPWP ECD (along with HCBCs) seen as major contribution by social sector to EPWP. In terms of recent National report, Eastern Cape social sector EPWP target was 26 268 Work Opportunities by end 2008/09. Audited report of Work Opportunities created from April 2004 to 31 March 2008 shows EC created 25 348 WOs. Have the 2008/09 year to achieve the balance to meet target 100%. In actual numbers this constitutes the largest number of all Provinces.

17. Challenges Reliable baseline information for evidence-based decision-making Poor and inadequate infrastructure from which ECD services are run. Lack of clear policy on issue of provision of infrastructure. Inadequate monitoring of ECD services due to capacity constraints at local service office level. Delays in provision of training to ECD practitioners in EPWP. Quality of what takes place within ECDs as an educational foundation. Lack of general awareness on registration by public.

18. Conclusion In EC, we have seen a major improvement in funding norms, ensuring we no longer lag behind other Provinces in the subsidy. Striking a balance between improving funding levels and increasing number of ECDs that receive subsidies. Social development sector will strive for the R12 per child in 2009/10, so ECD in EC will not increase funding levels next year, but will increase coverage. Increased number of social work professionals (236 Social Workers, 42 Chief Social Workers, 21 Senior Social Workers, 300 Social Auxiliary Workers, 24 Contract Social Auxiliary Workers for the Child Protection Register) employed in the Department in 2007/08 has improved capacity for monitoring of ECDs. Also will be placing more emphasis on quality of what takes place within ECD.