South Africa's HRD Strategy for Inclusive Growth

1. HRD PRESENTATION TO PORTFOLIO COMMITTEE 3 SEPTEMBER 2002

2. APARTHEID LEGACY • Poor schooling – “bantu education” leading to • adult illiteracy. No ECD provision. • 2. Poor quality education and training providers • in general with islands of excellence for the • few • Low level of commitment to training by • employers and poor alignment of training • to business and service goals • Research and Development served the needs • of the few • Overall education and training served the • interest of apartheid

3. Background • HRD Strategy was adopted by Cabinet at its Lekgotla in January 2001 • HRD Strategy was launched in April 2001 by the Ministers of Education andLabour • The adopted HRD Strategy is not based on manpower planning – but on an integrated approach to • building the base of high quality general education for all, • growing the future through research and development and • improving the interface between the demand for and supply of productive skills for social development and economic and employment growth. • It has five longer-range Strategic Objectives and eight one year priorities.

4. VISION A nation at work for a better life for all

5. MISSION To maximize the potential of the people of South Africa, through the acquisition of knowledge and skills, to work productively and competitively in order to achieve a rising quality of life for all, and to set in place an operational plan, together with the necessary institutional arrangements, to achieve this.

6. OVERALL OBJECTIVES • To improve SA’s Human Development Index • - to ensure “a rising quality of life” • To reduce disparities in wealth and poverty • and develop a more inclusive society • – “for all” • To improve international confidence and • investor perceptions of the economy • - “A nation at work”

7. STRATEGIC OBJECTIVES • Improving the foundations for human development • Improving the supply of high-quality skills which • are more responsive to societal and economic need • Increasing employer participation in lifelong learning • Supporting employment growth through industrial • policies, innovation, research and development • Ensuring that the four strategic objectives of the • HRD strategy are linked

8. SA’s INTEGRATED HRD STRATEGY IS BASED ON FIVE STRATEGIC OBJECTIVES: GROWING THE FUTURE National capacity for Innovation, Research and Development 4 5 3 2 HRD STRATEGY Enhancing the linkages between the other four strategic objectives DEMAND SIDE Increasing employer participation in lifelong learning SUPPLY SIDE Improving the supply of high-quality skills 1 BUILDING THE BASE “Improving the foundations for human development”

9. TARGET AREAS Each objective is broken into measurable target areas

10. Science-industry partnership R&D expenditure Growth Sectors supported More public & private employer participation Increase Scarce Skills HRD Joint initiatives to enhance interface between supply and demand Participation in FE and HE institutions Skills development in SMMEs Placement of graduates Skills development in social development Early Childhood Development Adult Basic Education & Training Schooling Access, Pass rates, M&Sc So HRD STRATEGIC OBJECTIVES HAVE SUB-THEMES TO ADDRESS KEY CHALLENGES:

11. STRATEGIC OBJECTIVE 1 Target 2002/3 Target 2004/5 Target 2014/5 Target Area Early Childhood development 200 000 ECD places 335 000 ECD places 800 00 Places by 2010 50 000 learners for level 4 Adult basic Education and training 63% workers ABET level 4 NQF level 1 70% workers ABET level 4 NQF level 1 80% workers ABET level 4 NQF level 1 1 million no longer functionally illiterate 2.5 million no longer functionally illiterate 6.5 million no longer functionally illiterate Literacy Reduced repetition rate Universal General education Improved pass rates 60 % pass rate 70 % pass rate 90 % pass rate

12. STRATEGIC OBJECTIVE 2 Target 2002/3 Target 2004/5 Target 2014/5 Target Area 500 new bursaries March 2003 500 new Bursaries - If funds 500 new Bursaries- If funds Increase supply of scarce skills Immigration Act FET: Increase Student no’s By 0.5% p.a. FET: Increase Student no’s By 0.5% p.a. FET: Increase Student no’s By 0.5% p.a. Increased participation in FET and HET institutions Increase in 20 – 24 yr olds in HE institutions Increase in 20 – 24 yr olds in HE institutions Increase in 20 – 24 yr olds in HE institutions -Review NSFAS criteria for loans to include skills targeting. -Tracer studies to track placement. -Improved student career guidance Establish current baseline and then establish improvement targets over time Increased placement of FET and HET graduates

13. STRATEGIC OBJECTIVE 3 Target 2002/3 Target 2004/5 Target 2014/5 Target Area 75% large firms get WSP grant 75% large firms get WSP grant Increased employer participation in skills development Quality WSP’s IIP 100/141 dept. do WSP’s 141 depts. do WSP Quality WSP’s IIP 20 000 l’ships 80 000 l’ships 250 000 l’ships SAMDI increase Mgt. training SAMDI increase Mgt. training SAMDI increase Mgt. training + ABET level 4 20% SMME SD Grant DTI targets + ABET level 4 20% SMME SD Grant DTI targets Skills Development for SMME’s Skills development for social development Target ? SD lead to IDP success Target ? SD lead to IDP success

14. STRATEGIC OBJECTIVE 4 Target 2002/3 Target 2004/5 Target 2014/5 Target Area Research and development expenditure Derive from new R & D Strategy Science- industry partnership Road mapping targets later Identification of economic sectors with significant growth and employment potential Derive from integrated manufacturing strategy

15. STRATEGIC OBJECTIVE 5 • Ensuring that the four strategic objectives • of the HRD Strategy are linked • 2002/3 • HRD Strategy Launched 23 April 2001 • Quarterly progress reports to Cabinet • Inter-government collaboration on learnerships • and scare skills bursaries, Immigration Act. • 2004/5 • Social partners • Provincial and Local government • NEPAD • 2014/5 • Under discussion

16. 2002/3 HRD PRIORITIES INNOVATION, RESEARCH AND DEVELOPMENT 7 SUPPLY SIDE Too few jobs yet some skills very scarce! 5a Scarce skills bursaries Immigration of scarce skills 5b DEMAND SIDE 8 HRD linkages Up-skill existing public & SMME workforce No-where for unemployed and school-leavers to go 3 &4 6 Learnerships with incentives for employers to provide work experience FOUNDATION FOR HUMAN DEVELOPMENT 1 2 ECD ABET

17. PRIORITY AND PROGRESS AREAS FOR 2001 Targets for 2001 Priority Progress Building consensus on HRD Strategy • Agreed by Cabinet Completed • Launch of strategy Launched April • Cabinet Review - 2002 • Plans for 2002 agreed - 2002 -PSETA functioning Launch Oct. -Review of Departmental WSPs Completed -Development of targeted Senior Mgt. Programmes Completed Improving Public Service delivery Scare Skills -Immigration Bill -Identification of scarce skills Completed -Bursary programme started - 2002 -1 000 bursaries awarded - 2002

18. PRIORITY AND PROGRESS AREAS FOR 2001 Targets for 2001 Priority Progress SMMEs Policy review including SETA In Progress Contribution Learnerships 3 000 young people in learnerships - 2002 -Implementation of ABET Plan Completed -Targets established by SANLI Completed -Targets established by SETA’s Completed for Level 1 workers in Oct. ABET and Literacy -Approval of policy by cabinet Completed -Implementation of policy - 2002 ECD

19. Key South African HRD CHALLENGES RESEARCH AND INNOVATION Need to EXPAND our capacity to Innovate andresearch Too few jobs yet some skills very scarce! SUPPLY SIDE Need to INCREASE the quantity of those with quality further and higher learning REDUCE Graduates without jobs? Retrenchees? Long-term unemployed? DEMAND SIDE Need to INCREASE the number of employers and workers in quality lifelong learning School leavers? ADULT BASIC EDUCATION AND TRAINING Redress GENERAL EDUCATION INCREASE the quality of schooling for all EARLY CHILDHOOD DEVELOPMENT Improve and expand