Addressing the post schooling challenge in South Africa

1. CHIETA PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON SKILLS DEVELOPMENT IN THE ENERGY SECTOR: 3 MARCH 2015

2. Addressing the post schooling challenge in South Africa

3. STRUCTURE OF THE PRESENTATION • CHIETA vision, mission and values • CHIETA strategic focal areas • Legislative and policy context • Profile of the chemical sector • Profile of Energy, Oil and Gas sub sector within the chemical industry • Current status of skills in Energy, Oil and Gas sub sector • Key and critical skills for petroleum sub-sector and associated risks • CHIETA’S own operation Phakisa in NSDS 3 to support our companies • Partnerships, trust of industry, high quality of training, excellent response time to address new needs of industry, full focus on needs of industry and needs of citizenry • Fully addressing the Skill need national project Phakisa for the energy sector

4. STRUCTURE OF THE PRESENTATION • STATUS AND IMPACT OF CHIETA SKILLS DEVELOPMENT PROGRAMMES IN SUPPORT OF SCARCE AND CRITICAL SKILLS IN ENERGY, OIL AND GAS SUB SECTOR • CHIETA PLANS, CONTRIBUTIONS AND SUPPORT ON FUTURE ENERGY,OIL AND GAS SUB SECTOR RELATED PROGRAMMES

5. VISION, MISSION VALUE STATEMENT CHIETA’s VISION is to provide world class education and training for the chemical sector CHIETA’s MISSION is to contribute to sustainable development through facilitating the provision of skills for the growth of the economic sector THE VISION AND MISSION ARE FOUNDED ON A VALUE STATEMENT OF STAKEHOLDER ORIENTATION, ACCOUNTABILITY, INTEGRITY, PEOPLE, PERFORMANCE AND SERVICE EXCELLENCE

6. KEY STRATEGIC FOCAL AREAS POSITION CHIETA AS A SUSTAINABLE AND VALUE ADDING BUSINESS PARTNER TO GOVERMENT AND TO ALL OF ITS STAKEHOLDERS MOVING BEYOND NUMBERS AND DEMONSTRATE IMPACT ON SOCIO ECONOMIC IMPERATIVES OF SA MAINTAIN AND CONTINUOUSLY IMPROVE ON A GOOD CORPORATE GOVERNANCE CULTURE IN DISPERSING OUR MANDATE SUSTAINED AND CONTINUOUS IMPROVEMENT OF PERFORMANCE AND SERVICE DELIVERY TO ALL CHIETA STAKEHOLDERS CHIETA’S OWN OPERATION PHAKISA

7. LEGISLATIVE AND POLICY CONTEXT NATIONAL SKILLS DEVELOPMENT STRATEGY III (which falls under the HRDS-SA) where CHIETA together with industry address priority skills shortage areas through managing and facilitating high quality education to meet social and developmental demands NATIONAL DEVELOPMENT PLAN 2030 where CHIETA supports directly through skills development creating a more inclusive and equitable South African society INDUSTRIAL POLICY ACTION PLAN (IPAP) where CHIETA has been identified as one of the key players to develop customised artisinal programmes in support of IPAP identified sectors for economic growth GOVERNMENT MEDUIM TERM STRATEGIC FRAMEWORK which serves as a frame of reference articulating government programmes to improve the conditions of life of South Africans

8. LEGISLATIVE AND POLICY CONTEXT CONTINUED NATIONAL INFRASTRUCTURE DEVELOPMENT PROGRAMME (SIPS) in support of economic development and service delivery to poorest provinces in SA. SIPS most relevance to CHIETA are the energy related SIP with the emphasis on quality and sustainable energy for economic growth and skilling our youth NATIONAL SKILLS ACCORD articulating improved funding, workplace exposure, align training to the new growth path and the improved role and performance of TVET colleges YOUTH EMPLOYMENT ACCORD working together to address youth unemployment and expansion of opportunities for greater employment and empowerment of youth in our country NEW GROWTH PATH (NGP) with strong focus on growth and innovation which is critical for the chemical and related sub sectors SA BENEFICATION STRATEGY providing SA with a competitive advantage in managing our mineral resources

9. LEGISLATIVE AND POLICY CONTEXT CONTINUED SA BIOFUELS STRATEGY aimed at a 2% penetration of biofuels in the national liquid fuel supply INTEGRATED RESOURCE PLAN on additional electricity generation of more than 50 000 megawatt by 2030 through envisaged renewable energy INTEGRATED AND SUSTAINABLE RURAL DEVELOPMENT STRATEGY (ISRDS) to create socially cohesive and stable rural communities with viable institutions, sustainable economies and universal access to social amenities to be able to attract and retain skilled people who are equipped to contribute to economic growth PFMA WHERE CHIETA DISBURSES OF ITS MANDATE IN AN ACCOUNTABLE AND TRANSPARENT MANNER, HAVING OBTAINED OUR 13TH CONSECUTIVE UNQUALIFIED FINANCIAL AUDIT IN 2014

10. PROFILE OF THE CHEMICAL SECTOR CHIETA SUB- SECTOR PROFILE Energy, Oil and Gas Energy, Oil, Gas and base Chemicals

11. PROFILE OF CHEMICAL SECTOR CONTINUED Sector Profile – Representation • Department of Environmental Affairs • Public owned companies and critical Interest Groups • NECSA • PETROSA • SAPIA • SAOGA • LP GAS

12. PROFILE OF CHEMICAL SECTOR CONTINUED CHIETA LEVY PAYING COMPANIES IN THE CHEMICAL SECTOR

13. PROFILE OF CHEMICAL SECTOR CONTINUED PARTICIPATION IN THE LEVY-GRANT SYSTEMWSPs SUBMITTED

14. PROFILE OF CHEMICAL SECTOR CONTINUED PROFILE OF THE SECTORTOTAL EMPLOYMENT

15. PROFILE OF CHEMICAL SECTOR CONTINUED PARTICIPATION IN THE LEVY-GRANT SYSTEMEMPLOYEES REPRESENTED BY WORKPLACE SKILLS PLANS

16. PROFILE OF ENERGY, OIL AND GAS SUB SECTOR • There are 195 levy paying companies in the petroleum sector • They constitute 10% of all levy paying companies within the chemical industry • PETROLEUM INDUSTRY CONTRIBUTE 45% OF THE CHIETA LEVY INCOME • At current value this is R 206 million per financial year • Petroleum industry currently employ 45 473 employees • Employment in the petroleum sub sector constitute 29 % of total employment in the chemical sector

17. PROFILE OF ENERGY,OIL AND GAS SUB SECTOR CONTINUED

18. PROFILE OF ENERGY,OIL AND GAS SUB SECTOR CONTINUED

19. PROFILE OF ENERGY,OIL AND GAS SUB SECTOR CONTINUED

20. PROFILE OF ENERGY,OIL AND GAS SUB SECTOR CONTINUED

21. PROFILE OF ENERGY,OIL AND GAS SUB SECTOR CONTINUED

22. PROFILE OF ENERGY,OIL AND GAS SUB SECTOR CONTINUED

23. PROFILE OF ENERGY,OIL AND GAS SUB SECTOR CONTINUED

24. KEY AND CRITICAL SKILLS NEED FOR ENERGY, OIL AND GAS SUB SECTOR • Critical industry partners are SAPIA, NPEA and SAOGA • Integrated and focused skills planning TOGETHER with stakeholders in the chemical and petroleum industry is core to the CHIETA organisational management processes and sustained service delivery • The compilation of the CHIETA sector skills plan involves ACTIVE participation all stakeholders through the CHIETA chamber structures including the stakeholders from the petroleum industry. 9 subsector skills plans are developed which articulate and define scarce and critical skills needs and subsequent challenges with associated risks • Emanating from this stakeholder consultative process, the Petroleum subsector has defined its list of occupations which they regard as key and critical to industry

25. KEY AND CRITICAL SKILLS NEED FOR ENERGY,OIL AND GAS CONTINUED • This information is forthcoming from detailed analysis of the workplace skills plan submitted by the petroleum companies, extensive stakeholder engagements that are further complimented with independent research • The petroleum sub sector skills plan also provide specific perspective on priority skills, employment in these occupation and number of vacancies as a percentage of total employment • Currently in the petroleum subsector skills (September 2014) plan 1679 vacancies exist in priority skills areas which constitute currently 3.7% of total employment in the sector

26. KEY AND CRITICAL SKILLS NEED FOR ENERGY,OIL AND GAS CONTINUED KEY AND CRITICAL SKILLS DEFINED BY THE PETROLEUM SECTOR IS: • Engineering/Operations Managers • Engineers ( Chemical, Mechanical, Industrial, Electrical, Mining And Civil) • Engineering Technologist • Artisans (Welders, Electricians, Boilermakers, Pipe Fitter, Mechanical/Diesel Fitter, Instrument Mechanician) • Chemical Plant Controllers • Gas/Petroleum Controllers • Health And Safety Managers and Practitioners • Operations/Production/Project Managers • Geologist/Surveyors • ICT Project Managers • Boiler and Pressure Valve Inspectors • Production Coordinators • Metallurgical And Material Technicians • Accountants/HR/Sales And Marketing/Business Managers and Research and Development Manager

27. KEY AND CRITICAL SKILLS NEED FOR ENERGY,OIL AND GAS CONTINUED • In addition, the following skills priorities have been identified: industry namely: • Together with SAPIA, design and implement the SA Petroleum Institute in support of an integrated skills development strategy for the petroleum industry • Implement a coherent approach to skills development in the oil and gas industry inclusive of a marine oil and gas academy aimed at linking industry with public institutions and private providers and learners in the oil and gas value chain, developing local capacity benchmarked against global standards • Skills to support new and emerging developments such as shale gas exploration and extraction through hydraulic fracturing or “ fracking”. Will require people with a strong maths and science base and skills development emphasizing trans-disciplinary natural and social science skill-sets

28. KEY AND CRITICAL SKILLS NEED FOR ENERGY,OIL AND GAS CONTINUED • Our homework with partners show: • Hydraulic fracking is expected to commence in 2018 • Entrepreneurship and technology development are critical for successful exploitation of shale gas • The fields of forensic chemistry becomes important to establish baseline conditions before fracking starts to be used in potential litigation and monitoring of impact in years to follow • Local communities will play a strong role in the monitoring and evaluation of environmental conditions and need to be trained to do specific observations and monitoring • Significant opportunities for small business/entrepreneurship • Specialised skills development support needed in hydro-chemistry, forensic chemistry, economics,social sciences, geo-hydrology, earth stewardship science and data management

29. KEY AND CRITICAL SKILLS NEED FOR ENERGY,OIL AND GAS CONTINUED • Key challenges and unrealised opportunities related to skills development were identified by the petroleum sector, Department of Energy, SAPIA and CHIETA namely: • Ongoing artisan development • optimisation of RPL to develop semi skilled staff into artisans through industry acceptable programs, • poor quality of maths and science that stifle the supply of candidates, enhance the quality of training offered by TVET Colleges (currenty not to the satisfaction of industry), • harnessing of resources released by industry by TVET Colleges, • artisan training programmes to be more geared for the specific and unique needs of the petroleum industry and • Much clearer articulation between TVET Colleges and universities to allow for artisans to develop into higher level professionals

30. KEY AND CRITICAL SKILLS NEED FOR ENERGY,OIL AND GAS CONTINUED • Recruitment and training of technicians in terms of training content offered by universities of technology, absence of training programmes to up-skill technicians to higher level technical positions, optimisation of RPL for technicians, amendment of registration requirements by ECSA • Shortage of engineers and need to increase the enrolment numbers • Engineering programmes not addressing the specific needs of industry • Engineers not registering with ECSA and engineers not meeting the professional development requirements in order to maintain there registration.

31. STATUS AND IMPACT OF CHIETA SKILLS INTERVENTIONS FOR ENERGY, OIL AND GAS SUB SECTOR • Petroleum sub sector plan forms part of the CHIETA sector skills plan for the chemical industry which defines key and critical or scarce skills needed • Implementation transpires through the CHIETA strategic plan and annual performance plans with specific performance indicators and pre-determined performance targets and budgetary allocations • In NSDS 3 (2011- 2016) CHIETA met and exceeded its organisational performance targets for every financial year thus far and within an unqualified audit opinion by the AG (SA) for 13 consecutive years • Performance and monitoring are done continuously by the CHIETA governance structures to ensure sustained delivery and performance

32. STATUS AND IMPACT OF CHIETA SKILLS INTERVENTIONS FOR ENERGY,OIL AND GAS SUB SECTOR CONTINUED • Forming partnerships is a primary delivery arm for critical skills development as per the White Paper on PSET combining theory, funding and workplace learning in an integrated manner • CHIETA has developed a detailed occupational handbook defining the outputs and competency of each occupation within the petroleum and gas sector and all 9 sub-sectors. It forms an important part of our integrated research and skills planning agenda. • Throughout NSDS 3 (2011- 2016) CHIETA displayed excellent performance of its organisational targets for every financial year and within an unqualified audit opinion

33. STATUS AND IMPACT OF CHIETA SKILLS INTERVENTIONS FOR ENERGY,OIL AND GAS SUB SECTOR CONTINUED • Performance and monitoring are done continuously by the CHIETA governance structures to ensure sustained delivery and performance on performance areas • CHIETA implemented a supply side database which link learners to member companies and workplaces for workplace experience and employment opportunities - free labour broking service • In terms of mandatory grant support to the petroleum sub sector CHIETA disbursed an amount of R126 million over the last three financial years commencing 2012/13 in support of their respective workplace skills plans • The following slide illustrate the CHIETA discretionary grant investment and number of learners supported over the same period

34. STATUS AND IMPACT OF CHIETA SKILLS INTERVENTIONS FOR ENERGY,OIL AND GAS SUB SECTOR CONTINUED • NOTE: WORKPLACE EXPERIENCE FINANCIAL INVESTMENT IN THE PETROLEUM SECTOR CONSTITUTE 53% OF TOTAL CHIETA BUDGET ON WORKPLACE EXPERIENCE

35. BUDGET FOR CHIETA STRATEGIC PROGRAMMES FOR 2014/2015 FINANCIAL YEAR

36. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS • Operation Phakisa related initiatives • Advancing skills development in maritime sector aimed at growing the ocean economy and related sectors. CHIETA already contributing to the identified six industry areas and critical skills needed for off shore oil and gas related area • Above-mentioned is the Phakisa project. CHIETA intervention in support of the oil and gas exploration. Currently a partnership has been concluded with the SA Oil and Gas Alliance to partner in skills development for Saldanha Bay and the West Coast Corridor development • CHIETA Initiative at planning stage for Dube trade port skills development to provide a suitable skills pool of artisan related occupations such as coded welders and boilermakers as part of infrastructure programme development • Hydraulic fracking as already articulated earlier slides • Skills development partnerships to empower the implementation of the targets in the biofuels strategy

37. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED • Green economy zones in the Northern Cape for solar and wind energy and relevant skills development support • Water and waste management to seek sustainable solutions towards waste water management and security to communities and industry (related also to hydraulic fracturing)

38. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED • SIPS Where CHIETA are primarily involved in the energy node as articulated earlier. CHIETA is also actively supporting the pilot project in the Waterberg with training of coded welders from the local communities in conjunction with industry to support infrastructure development that will have linkages with energy provision (Big players in the petroleum sector partnering with CHIETA on coded welding intervention AFROX, SASOL, SAOGA, NECSA, FLUOR, SAIW, etc • Discussions with Dept of Home Affairs on alerting CHIETA on importing of foreign skills • Partnership blue print that was implemented at Flavius Mareka TVET in Sasolburg with SASOL and surrounding companies and CHIETA to integrate funding, theory and workplace education and experience with scarce and critical skills need of the sector – this to be expanded to targeted TVET College taking cognisance of geographical layout of petroleum companies • Nuclear energy- discussion in process with Dept of Energy and NECSA on required partnership as articulated to CHIETA

39. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED

40. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED

41. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED

42. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED

43. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED

44. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED

45. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED

46. CHIETA FUTURE ENERGY,OIL AND GAS PROGRAMMES AND PARTNERSHIPS CONTINUED

47. White Paper Post-School E & T “The Department of Higher Education and Training, along with the institutions that it is responsible for, is located at the nexus between the formal education system and the workplace. It is our responsibility to ensure that those entering the labour market are qualified and competent to take up the employment and income generating opportunities that exist, and that will exist as the economy grows and changes in the future.”

48. CHIETA Our sincere appreciation for the invitation to present to the portfolio committee on energy regarding the chieta context on skills development for a vibrant energy sector in South Africa Thank you Questions, comments and issues requiring clarity