PRESENTATION TO THE ENERGY PORTFOLIO COMMITTEE ON 6 NOVEMBER 2012

1. PRESENTATION TO THE ENERGY PORTFOLIO COMMITTEE ON 6 NOVEMBER 2012

2. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability OUTLINE • CHIETA’s mandate and scope • CHIETA’s Board and Chambers • The National Development Plan 2030 • The Strategic Infrastructure Projects (SIPS) • CHIETA’s role in skills development

3. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA’S MANDATE AND SCOPE • CHIETA strives towards world class education and training within the chemical sector of SA • We contribute to sustainable development through facilitating the provision of skills for growth in the Chemical Sector • CHIETA is organised into nine sub sectors/economy based constituencies namely Base Chemicals, Explosives, Fast Moving Consumer goods, Fertilizers, Glass, Petroleum, Pharmaceuticals, Speciality Chemicals and Surface Coatings

4. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA’S BOARD AND CHAMBERS • Five organised labour constituencies namely Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU), South African Chemical Workers Union (SACWU),Solidarity,United Association of South Africa(UASA) and General Industries Workers Union of SA (Giwusa) • Four Government Departments namely DOE,DTI, Science and Technology and Environmental affairs • Stakeholder driven organisation with Chambers one being Petroleum and base chemicals to drive Research and Skills planning in the context of the Sector Skills plan for the Chemical Sector

5. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability NATIONAL DEVELOPMENT PLAN 2030 The NDP issues pertinent to the chemical sector: • Vision is a firm trajectory of growth, eliminate poverty and reduce inequality • Reduce SAs over reliance on coal for energy and ensure a greater mix of energy sources for future demand (also as per Integrated Resource Plan) • Explore gas as an alternative to energy production in order to cut SAs carbon intensity and greenhouse gas emissions • Explore the shale gas potential of the Karoo

6. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability NATIONAL DEVELOPMENT PLAN 2030 • Exploration for and exploitation of newly discovered off-shore gas resources along the West Coast • The need to invest in a liquefied natural gas infrastructure • Upgrading of existing refineries to migrate to international clean fuel standards • Consideration of building a new refinery to reduce dependence on the import of refined products

7. The Catalyst for Skills, Economic Growth and Employability • CHALLENGES / NEEDS WITHIN the South African Petroleum Industries Association (SAPIA) • To explore gas as an alternative to energy production in order to cut South Africa’s carbon intensity and greenhouse gas emissions • Exploration of the shale gas potential of the Karoo • Exploration for and exploitation of newly discovered off-shore gas resources along the West Coast • The need to invest in a liquefied natural gas infra-structure • The need to build a new refinery to produce dependence on the import of refined products

8. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability STRATEGIC INFRASTRUCTURE PROJECTS • 18 Strategic infrastructure projects (SIPs) • Support chemical sector related skills development in relevant SIPs as the process unfolds Key SIPs: • Mathombo refinery (Coega) • SIP 3: South East node and corridor development • Energy related SIPs

9. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability CHIETA’S APPROACH • Sector Skills Plan including sub-sectors • Support national and sectoral imperativesWork in partnership with government, industry stakeholders, other SETAs and education and training providers to identify skills needs (current and future) and address them • Meetings with Department of Energy to confirm training needs • Support the Department of Higher Education and Training coordinated process of development of SIP skills plans • Partnership “ An integrated approach to the skills requirements of SAs petrochemical industry” with SAPIA, DoE, CHIETA, Wits etc

10. SDL levy income per sub sector

11. Number of WSP submitted per Subsector

12. Employees per Sub sector according to Company Size

13. GEOGRAPHIC LOCATION OF LEVY PAYERS BY SUB-SECTOR CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

14. THE NATIONAL EDUCATIONAL PICTURE CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability World Competitiveness Report 2012 1 The low educational levels of our human resources and the high unemployment in the country are the main contributors to the poor competitiveness rating. Figures to be updated with Census 2011 50 South Africa 51

15. WSP DATA - EDUCATION PROFILE OF CHEMICAL SECTOR CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

16. NUMBER OF DESIGNATED TRADES BY SUB-SECTOR CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

17. CHIETA SCARCE & CRITICAL SKILLS Note: Trade-related occupations constitute nearly 50% of scarce skills & Professionals constitute nearly 40%.

18. CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability “Working together we can indeed achieve the skills revolution that our country so urgently requires“. NSDS III Foreword, Minister Nzimande THANK YOU