Snapshot of NSDS III & CHIETA Vision 2030

1. Presentation: Snapshot of NSDS III & CHIETA Vision 2030 Ayesha Itzkin, CHIETA Acting CEO Regional Skills Forums February 2017

3. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA 5-YEAR ORGANISATIONAL PERFORMANCE IN NSDS IIICHIETA performance footprint, 1 April 2011 to 31 March 2016 • Number of learners supported in NSDS III has grown exponentially • This is due to lessons learned in NSDS I and II • After Ten years of building credible relationships • CHIETA has won the trust of Industry by • listening carefully to their skills needs • including these needs in skills planning and funding processes • timely disbursements of funds, and • providing real skills planning support to industry The unit level of funding per learner in many programmes was often below the national recommended SETA funding levels due to successful Industry partnerships and co-funding models implemented together with CHIETA member companies.

4. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability SDL Income vs Employer Grant and Project Expenses 2011 -2016

5. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability Skills Development Levy income from 2011 - 2016

6. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability Administration income vs expenditure 2011 - 2016

7. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ANNUAL FINANCIAL STATEMENTS AND AUDIT RESULTS - 2015/16 as per Annual Report • Unqualified audit opinion and clean audit outcome • 4% increase in SDL income from R426.6 million for the year ended March 2015 to R443.5 million for the year ended March 2016 • Total Revenue increased by 4% from prior year • SDL income escalated by annual equivalent average of 21% for the entire period since inception • Grant and Project expenses increased by 11% from R397 million in 2014-15 to R442 million in 2015-16 • Mandatory Grant expense of R98.7 million represented 87% of MG levy income received (R113 million received, the balance was swept into the discretionary grant pot) • 89% of Discretionary Grants were utilised on PIVOTAL programs • 98.3% of funds available in the Discretionary reserve were committed as at 31 March 2016

8. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

9. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

10. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ORGANISATIONAL ACHIEVEMENTS In 2015/16 CHIETA • Re-organized and optimized its business processes and designed and implemented even further enhanced delivery systems and controls for its identified risks • Continued to build strong relationships with the chemical industry, public education and learning institutions and organized labour within our sector • Focused on mega or multi party 3-way partnerships - Industry/Public Education Institutions/CHIETA partnerships for high impact delivery and innovation • Continuous efforts to ensure every workplace in the chemical sector becomes a training space providing experiential learning and employment experience • Put into place the building blocks for impact assessment.

11. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA ORGANISATIONAL ACHIEVEMENTS • CHIETA Governing Board is highly effective and has worked diligently to ensure their oversight role was discharged accountably • Attained great success through excellence in terms of performance and delivery on it’s targets as contracted with the Minister of Higher Education & Training in CHIETA’s Strategic Plan • Safeguarded sound corporate governance and oversight of the CHIETA mandate, which is a priority in public entities • Through its well functioning stakeholder driven research and skills planning framework, CHIETA ensured strong integration between the Sector Skills Plan, the funding allocation and meeting its organisational targets • Effective CHIETA Chambers and stakeholder structures fed valuable information on the skills needs into CHIETA’s skills planning processes.

12. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability ORGANISATIONAL ACHIEVEMENTS • Highly credible electronic skills planning platform from which verifiable company information is sourced and analyzed in order to plan for skills. • Hugely effective grant funding processes and monitoring of the delivery by companies to ensure success and compliance. • In 2015/16, of the ten CHIETA strategic programs all ten baseline targets were met or exceeded and this is 100% of its 58 pre-determined organizational targets. • Forty six out of 58 pre-determined organisational targets were exceeded (79%) Strong Organizational Risk Management Policy and Framework implemented on strategic and operational levels to mitigate external and internal risks and to ensure CHIETA meets strategic objectives • Sustained and increased levy income • Governing Board approved R58.9 million for bursaries • Excellent finance management.

13. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA Audited Performance Information 2015/16

14. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA Audited Performance Information 2015/16

15. CHIETA, the Catalyst for Enhanced Skills Economic Growth and Employability CHARACTERISTICS OF ANNUAL PERFORMANCE PLAN 2017/18 • Fifty nine (59) Performance indicators with predetermined organisational targets • Supported through ten strategic programmes • Estimated budget for 2017/18 for each strategic programme and each performance indicator worked out • Signed Service Level Agreement with DHET for 2017/18 • Materiality and Significance Framework this is set at 1% • CHIETA Organisational alignment and implementation plans made.

16. ESTIMATED BUDGET FOR CHIETA’S STRATEGIC PROGRAMS FOR 2017/2018 FINANCIAL YEAR

17. POSSIBLE SCENARIOS FOR THE CHEMICALS INDUSTRY FORK IN THE ROAD Global economic and commodity bounce back Reindustrialisation shapes SA GDP structure SA develops global mining/agriculture/manufacturing competitiveness Significant investment in oil/gas/coal /nuclear Skills base increasing and unemployment falling Despite being well funded SETAS out of touch, out of date Industry “goes it alone” on skills training, imports Expanded chemicals sector HIGHWAY TO PROSPERITY Global economy drives commodity recovery SA attracts massive new industrial investment Mining/agriculture/manufacturing competitiveness picks up Demand/policy sees much new oil/gas/coal/nuclear investment Skills base increasing and unemployment falling SETAS responsive to expanding chemicals industry Industry/Seta collaboration =global best practice example Collaborative skills environment Prescriptive skills environment 4X4 OFFROADING Global economy stalls Industrial disinvestment out of SA Mining/agriculture/manufacturing competitiveness declines Little investment in oil/gas/coal/nuclear High unemployment and low skills base Seta funding falls off Industry and CHIETA engage in highly creative collaboration to shore up niche industries against the odds – another global best practice case study in a chemicals unfriendly world POTHOLES AHEAD Global economy stalls and commodity prices flat SA deindustrialises further, services share of GDP up Investment in mining/agriculture/manufacturing declines Little new energy investment (no nukes, no fracking) Low skills, high unemployment economy SETA funding slides and SETA offering seen as out of touch with industry Little demand for new skills, skills imports Contracting chemicals sector

18. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA’S Vision 2030- Feed into legislative processes to alleviate current barriers to skills development-Enhance CHIETA’s research capability to fully understand the broad spectrum of skills needs and learning program design- Direct CHIETA bursary students’ research topics to the benefit of CHIETA’s understandings of the needs of the economy for the short, medium and long terms- To understand what are the emerging new technologies and the implications for skills training- To understand the Skills needs across SADC & Africa- To Support Community Colleges and up-skilling of school leavers with no prospects and people who have lost their jobs or are unemployed- Support SMME development so that the benefits are cascaded and many opportunities are opened up- Continue to work closely with all stakeholders- Put the required systems, processes, procedures and implementation guidelines in place for the CHIETA to grow into an Assessment Quality Partner- Other as determined by CHIETA stakeholders

19. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability APPRECIATION!! Governing Board and CHIETA Board Committees, Chambers and other Structures CHIETA Management and Staff CHIETA Stakeholders THANK YOU FOR YOUR CONTINUED SUPPORT.Without you we could not have done it!

20. QUESTIONS AND CLARITY