NATIONAL SKILLS FUND

1. NATIONAL SKILLS FUND NSA CONSULTATIVE WORKSHOP MPUMALANGA 2-3 MAY 2013

2. THE NSF FRAMEWORK AND ALLOCATION OF FUNDS

3. LEGAL MANDATE OF THE NSF Per Skills Development Act, 1998, as amended, • Money in the fund may be used: • To fund projects identified in the NSDS as National Priorities, • To fund such other projects related to the achievement of the purpose of the Act as the DG determines and • The administration of the fund within the prescribed limit, as regulated from time to time.

4. A distinct perspective on the NSF • The NSF should be seen as a national resource that initiate and respond to national priorities • Must target gaps and complement resource shortages for national priorities • Promote & drive partnership based programmes • Should play a catalytic role in skills development (Across all sectors)

5. KEY FUNDING PRIORITIES • Human Resource Development Priorities agreed with the HRDC • Minister Priorities consulted and agreed with the NSA • Priorities aligned to the NSDS, supporting key MTSF priorities • Priorities identified by the DG, supporting the purposes of the SDA • Skills Infrastructure priorities

6. c) Priorities aligned to the NSDS supporting key MTSF priorities • New Economic Growth Path • Industrial Policy Action Plan • Skills to support rural development • Skills for a green economy • Skills for education and health • Skills to support the justice sector

7. d) Priorities identified by the DG, supporting the purposes of the SDA • Worker Education • Skills System Capacity • Training Layoff

8. e) Priorities to address Skills Infrastructure • Re-capitilisation of public delivery infrastructure • Community Education Centres • Skills Development Institutes • State-owned enterprises

9. KEY ELEMENTS OF THE FRAMEWORK • Grant Approach • Reactive approach • Proactive/Interventionist approach • Open Calls • Closed Calls (NSA Constituencies; FET Colleges; Govt Depts) • Targeted skills training interventions/programme • Targeted applicants/partners (i.e., DHET, State, NGO’s, Co-ops, Agencies, Private providers) • Grant types (i.e. Pivotal, TLS, Co-op grants, Skills planning & capacity building (public), etc)

10. Eligibility criteria • Two categories applicable to determine eligibility, namely: • Project eligibility: (Whether project supports national priorities per NSDS, i.e., HRDSA, NGP, RDS, IPAP, etc; Implementation methodology, support of developmental imperatives) • Applicant eligibility: (Whether applicant possess requisite implementation capacity, governance & M&E structures, compliance to country’s laws, no history of fraud) • Funding Exclusions: (Individual gain, disaster relief, once-off activities

11. Application process • Unsolicited applications: Re-active approach to project funding. • Solicited applications: Pro-active approach, in which NSF issues specific calls for proposal at given intervals, i.e., • January to March each year • April to June each year • July to September each • October to December each year

12. Monitoring and Evaluation • DHET/NSF Systems to ensure all funded initiatives/projects keep on track & reach planned outputs • Project proposals to include impact indicators/milestones against which ongoing monitoring will be performed • Monthly site visits • Broad project reviews on half-yearly basis.

13. NSF Performance, Income, Expenditure

14. Some key interventions: Current and planned FET SECTOR • R2.5bn over 3 years targeting FET Programme expansion and skills development programme offering- targeting over 100,000 learners • R1.5bn over 3 years targeting infrastructure re-capitalisation of FETC and facilitate expansion (Nation wide) • R153m to provide support the FET turnaround strategy (Governance, Financial management, planning, curricula matters • R64m in other individual FET projects Total R4.2 billion investment over medium term

15. Some key interventions: Current and planned University Sector • R797m in bursaries for 2013, accumulating to R2.5 billion over the medium term • R404m allocated to University of Pretoria to increase intake in the MBCH and Veterinary Science programmes. • R212m to university of Johannesburg to t increase its capacity to provide on the job training required to qualify in engineering studies • R84m to assist the University of Walter Sisulu to upgrade the BCOM degree to CA accreditation • R103m in individual university projects (social sciences,infrastructure) Total University R3.3 billion investment over medium term

16. Some key interventions: Current and planned Government • R461m to support DHET capacity building initiatives (NAMB, HSRC,HETMIS and Wits projects) • R449m to public entities(Transnet,SAMSA,SAWIT,SEDA) • R359m to DPW (EPWP, artisans) • R339m to DTI (Tooling ,Monyetla,Graduateprogramme • R190m to DRLRD (NARYSEC programme • R118m to FS & KZN provincial government • R91m to selected SETAs (TLS,Landreform,public sector) • R111m to DCS for offender training • R13m to Defence (MSDS project) Total Government R2.13 billion investment over medium term

17. Key Areas of Support to FETs NSF Funding supports the following • Expansion of NC(V) enrolments • Expansion of Report 191 enrolments (N1-N3 and N4-N6 • Skills Programmes • Learnerships & internships • Apprenticeships • Development of project management capacity • Development of College capacity (programme accreditation & staff development) • Support to additional/replacement of teaching & learning equipment

18. FET EXPANSION PROGRAMME

19. CONCLUSION • Neither the NSDSIII nor the NSF Framework can lay claim to be a panacea of all our skills problem • Our success will depend on our vigilance against anti-progress elements such as institutional problems, weak/problematic partnerships; resource wastage • Given what we know about today’s socio-economic problems and the unpredictability of the economy, we need a measure of bold and decisive risk taking as well as a balanced and flexible approach to skills development.

20. THANK YOU