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Assisting designated groups, including new entrants to participatein accredited work, integrated learning and work-basedprogrammes to acquire critical skills to enter the labour marketand self-employment.The NSDS seeks to assist unemployed young people to develop the skills required to enter intothe labour market and/or self-employment. Young people are offered opportunities to acquireworkplace experience, mostly in areas identified as scares skills.

5.1 Success Indicator 4.1: By March 2010 at least 125 000unemployed people assisted to enter and at least 50%successfully complete programmes, including learnerships andapprenticeships, leading to basic entry, intermediate and highlevel scarce skills. Impact of assistance measured.The aim of this indicator is to assist unemployed young people to participate in structured learningprogrammes such as skills programmes, learnerships and apprenticeships. These programmesshould lead to the acquisition of identified scarce skills.

5.1.1 Progress made to date

The 2005/06 MoU targets for all the SETAs for this success indicator is that 29 568 unemployedpeople should have entered the programmes, of which 14 784 should have successfullycompleted the programmes. By the end of March 2006 a total of 46 676 learners have entered learning programmes and4 256 of them have successfully completed the programmes. This is a performance result of158% and 29% respectively against the MoU targets for the period 2005/06.

Table 4.2: Breakdown of learning programmes

The NSF has reported the following contributions to this indicator:

� Learnerships: The NSF planned to fund an additional 11 067 unemployed learners inlearnerships in collaboration with SETAs starting in June 2006

� Bursaries: For the 2005 academic year an amount of R 26 255 000 has been allocated to theNational Research Foundation (NRF) for bursaries to post-graduate studies that is, Honours to

Period Learnerships ApprenticeshipsSection 13 Skills programmes Total

2005/06Entered 21 818 5 920 18 938 46 676

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Post-doctoral studies in scarce skills areas. From this amount the NRF awarded 621 bursariesto post graduates students

� Furthermore, an amount of R 49 022 149 was allocated to the National Student Financial AidScheme (NSFAS). This was targeted for under-graduate students in scarce skills areas.NSFAS awarded 6 320 undergraduate bursaries, mainly to students with disabilities.

Contribution of Umsobomvu Youth Fund (UYF)

The National Youth Service of the UYF focuses on developing and implementing innovative skillsdevelopment interventions that promote self-employment where there is a service imperative. Forthe period of 2005/06, 5 944 young people have been able to earn a livelihood after completingthese programmes.

Table 5.1: Case Study No. 2 - Correctional Science Learnership

Name of Province Gauteng and Free State

Name of project Correctional Services Learnership

Location Zonderwater and Kroonstad Training Colleges

Beneficiaries The beneficiaries are unemployed youth with a minimum qualificationof Grade 12

Funding partners SASSETA and Department of Correctional Services

Type of training Various Modules were offered on Rehabilitation of Offenders, cultureof the Correctional Centres, Physical Training and Self Defence.

Number trained to date 980

Number placed to date 855

Minister Nkondo Balfour, Minister of Correctional Services handing out a competency certificate to oneof the learners with a disability at the 2006 Correctional Services Certificate Ceremony

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Short description of the project

The Department of Correctional Services initiated the project in 2004, with the assistance of thePOSLEC SETA, which is now SASSETA. It targeted unemployed youth with at least a grade 12qualification. Learners were trained for three months to equip them with the knowledge ofcorrectional centres, offenders and rehabilitation. Furthermore, they were taught about what isexpected from them as correctional officials. At the end of their theoretical training they were sentto different correctional centres for nine months for the workplace-learning component of thelearnership. There they were mentored by qualified correctional officials and trainers. Once theymet all the requirements, they received a competency certificate from SASSETA that werehanded out at the Kroonstad College on 1 June 2006.

Learners were very grateful for the training they received. Their feedback was that the trainingwas well organised, of a high standard and relevant to the work they would be doing. They feltthat they are well equipped to start working as qualified correctional officials and to deal with thechallenges of that occupation. Learners also felt that their lives have changed for the better sincethey were previously unemployed and now earn a good salary in full-time employment.

5.2 Success Indicator 4.2: 100% of learners in critical skillsprogrammes covered by sector agreements from FET and HETinstitutions assisted to gain work experience locally or abroad, ofwhom at least 70% find placement in employment orself-employment

The aim of this indicator is to offer young people the opportunity to gain work experience that willenable them to find employment or become self-employed. Employers who offer workplaceexperience to young people in sector-relevant programmes receive incentives in the form of WorkExperience Grants from the SETAs.

Correctional Services learners about to receive competency certificates for completing the CorrectionalScience Learnership at the 2006 ceremony.

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5.2.1 Progress made to date

The 2005/06 MoU targets for all the SETAs for this success indicator is that 8 301learners should be assisted to enter workplaces, of which 5 811 should find placement.

By the end of March 2006 a total of 2 751 learners had entered workplaces, and 276 ofthem have been appointed in full-time positions. This is a performance rate of 33% and5% respectively against the MoU targets.

This success indicator has been faced by serious challenges. Progress is mainlyhampered by the lack of commitment from employers to provide learners with workexperience. Employers are reluctant to sign agreements with institutions of learning tooffer work experience to learners who have completed learning programmes. Such workexperience would assist learners to get employment.

Contribution of the UYF

The Skills Development and Skills Transfer Programme of the UYF assists unemployedyoung people to gain entry into occupations where there is a demand. During thisfinancial year, 19 public FET colleges were funded to deliver this programme. This hasenabled 1 287 young people to access learnerships delivered through the colleges.

Table 5.2: Case Study No. 3 - Work-Readiness Programme

Short description of the project

The project was initiated by the Guarantee Trust in 2003 and is aimed at providing long termemployment or self-employment within the accounting sector. The programme targetsunemployed graduates with an NQF Level 6 accounting qualification. Learners complete afive-month Work-Readiness Programme, during which they do an internship with an accountingpractice of one month. Each candidate is then entered into a FASSET learnership contract withan accounting practitioner for three years, subject to agreement by the employer and learner.

To date 370 young people have been trained and placed with different accounting practitioners.

Name of Province Gauteng (Midrand)

Name of project Bonani (for unemployed Commerce Graduates)

Location Guarentee Trust

Beneficiaries The beneficiaries are unemployed youth with a minimum qualification of a degreein commerce

Funding partners FASSET SETA

Type of training Work-Readiness Programme leading to a three-year Accounting LearnershipContract

Number trained to date 300 (since 2003) (Blacks: 98.6%; Women: 58%; People with disabilities: 4.3%)

Number placed to date 220 (Blacks: 98%; Women: 69.6%; People with disabilities: 1%)

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5.3 Success Indicator 4.3: By March 2010 at least 10 000 youngpeople trained and mentored to form sustainable new venturesand at least 70% of new ventures in operation 12 months aftercompletion of programme.

The aim of this indicator is to assist young people who aspire to start their own businesses. Theyare trained in business skills through new venture creation programmes that will enable them tostart their own sustainable businesses. SETA and NSF funds are provided for these initiatives.

5.3.1 Progress made to date

The 2005/06 MoU targets for all the SETAs for this success indicator are that 1 669 young peopleshould be trained and mentored to start new ventures, and 1 168 (70%) of these new venturesshould still be operational 12 months after completion of the programme.

By the end of March 2006, a total of 981 young people had entered new venture creationprogrammes, and none of these new ventures have been reported as being sustainable. This is a59% and 0% performance respectively against the MoU targets.

Contribution of the UYF

In 2005 the UYF launched a programme, Business Opportunities Support Service. Theprogramme is aimed at assisting young entrepreneurs to access identified business opportunitiesthrough technical assistance, mentorship and funding. The programme has assisted 1 700 retailand vending opportunities since its establishment in mid-2005. This has increased theparticipation of youth in the mainstream economy and advanced the objective of broadeningeconomic empowerment among the historically disadvantaged individuals.

The Business Development Services Voucher Programme of the UYF is aimed at assisting young

One of the unemployed commerce graduates on the Work-Readiness Programme aspiring to beadmitted to the FASSET learnership.

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entrepreneurs to access quality business services. The vouchers enable potential andexisting entrepreneurs to acquire innovative business development services. Duringthe period of 2005/06 the programme assisted 5 608 young people nationally and ledto the creation or sustenance of 6 851 jobs.

Table 5.3: Impact data on Business Development Services VoucherProgramme

Source: UYF Annual Report 2006

Case Study No. 4: New Venture Creation Learnership

This case study describes the New Venture Creation Learnership that empowers youngunemployed people with entrepreneurial skills to run their own franchise businesses. Thelearnership is managed by Unilever Foods and funded through grants from the FOODBEV SETA.JOBWORX is the training provider for the learning programme.

On completion of the learnership, learners will be able to enter into a franchise agreement withChop Chop Franchise. This is a mini-franchise concept involving mobile food vending trolleys forselling grilled chicken, bread rolls, coke and airtime at a very affordable price. Each trolley isbranded and comes fully equipped. The start-up cost of only R 1 000 makes it a highly affordablebusiness for the unemployed.

Franchisees will operate their own businesses whilst working towards obtaining a nationallyrecognised qualification. The bulk of the profits to be made will be invested in the franchisee,making the overall start-up package affordable to a prospective participant in the project. This isan ideal new venture for townships and rural areas due to the low start-up and operational costs,the back-up and support from all stakeholders, and the high quality affordable product.

A total of 80 unemployed people have been trained through the New Venture CreationLearnership. Unilever Foods sponsored the making and branding of 60 trolleys. Chop ChopFranchise provides training and support to the 62 franchisees.

Total beneficiaries 5 608

Jobs created 6 851

Businesses established 4 069

Young women 2 198

Rural entreprenuers assisted 1 389

Young people with disabilities 76

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The New Venture Creation Chop Chop trolley.

5.4 Conclusion

The SETAs and the UYF play an important role in this objective by ensuring that the youth of thiscountry have relevant skills and are able to compete meaningfully in the labour market. SETAshave performed well in this objective by exceeding the target of training of unemployed youth by58%. Through its youth programmes, the UYF assisted a large number of young people toestablish their own ventures and also to create and sustain more jobs. This is one area whereSETAs and the UYF are performing very well and should be encouraged.

The challenge in respect of Success Indicator 4.3 is that there is no standard definition for ʻnewventure creationʼ, and SETAs are reluctant to define this differently for each sector. A majorconcern by SETAs is the requirement for the new venture to be in operation 12 months aftercompletion of the programme. The monitoring of such progress is seen to be outside the role ofthe SETAs.

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Improving the quality and relevance of provision.

The NSDS emphasises the importance of the quality in the provision of skills developmentprogrammes. This implies that education and training providers that are utilised to offer skillsprogrammes should comply with minimum quality assurance standards.

6.1 Success Indicator 5.1: By March 2010 each SETA recognisesand supports at least five Institutes of Sectoral or OcupationalExcellence (ISOEs) within public or private institutions andthrough public-private partnerships where appropriate, spread aswidely as possible geographically for the development of peopleto attain identified critical occupational skills, whose excellence ismeasured in the number of learners successfully placed in thesector and employer satisfaction ratings of their training.

The aim of this indicator is to ensure that there are institutions of excellence that are able to offertraining that addresses identified critical skills. It is crucial for these institutions to be as widelyspread across the country as possible. This is in order to reach as many disadvantagedcommunities as possible. Such institutions will receive incentives in the form of Sectoral orOccupational Excellence Grants from SETAs.

6.1.1 Progress made to date

The 2005/06 MoU target for all the SETAs for this success indicator is for 55 Institutes of Sectoralor Occupational Excellence to be in operation and supported by a relevant SETA.

By the end of March 2006, a total of 31 institutes had been recognised and supported, a 56%performance result against the MoU target for the period 2005/06.

6.2 Success Indicator 5.2: By March 2010, each province has atleast two provider institutions accredited to manage the deliveryof the New Venture Creation qualification. 70% of new venturesstill operating after 12 months will be used as a measure of theinstitutions’ success.

The indicator ensures that there are accredited providers in each province that have met theminimum quality assurance standards and are capable of offering programmes in new venturecreation. Such institutions will receive incentives in the form of New Venture Creation DeliveryGrants from the NSF and SETAs.

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6.2.1 Progress made to date

The 2005/06 MoU targets for all the SETAs for this success indicator is for 33 provider institutionsto be recognised.

By the end of March 2006, a total of 41 institutions have been recognised and supported, a 124%performance result against the MoU target for the period the 2005/06.

6.3 Success Indicator 5.3: By March 2010 there are measurableimprovements in the quality of the services delivered by skillsdevelopment institutions and those institutions responsible for theimplementation of the NQF in support of the NSDS.

While SETAs are not required to establish hard targets for this indicator, the measurement of theindicator is considered critical since the single most common and recurring complaint fromvarious sources continues to be the perceived lack of quality assurance in skills developmentprogrammes.

This indicator is presently being monitored by the South African Qualifications Authority (SAQA)audit processes, which is also analysing the interface between the SETA ETQA system and theNational Learnersʼ Records Database. The National Qualifications Framework (NQF) is currentlyunder review and this success indicator will be monitored further during the remaining period ofNSDS 2005 – 2010.

6.4 Success Indicator 5.4: By March 2010, there is an NSAconstituency-based assessment of an improvement in stakeholdercapacity and commitment to the NSDS.

The NSA is in the process of developing criteria to measure this success indicator. Therefore, it isnot possible to report on performance against this success indicator at this stage.

6.5 Conclusion

The achievement of targets for this objective was a success in this first year of the strategy. Atotal of 31 ISOEs were recognised, representing a 56% performance against the target.Furthermore, 41 provider institutions have been recognised and supported, representing a 124%performance against the target. However, the challenge is that there is no standard definition ofan ISOEs. To address this, a framework has been developed by the Department that is in thepublic comment process before formulating the final framework. The other challenge, also raisedin Chapter 5, is that there is no standard definition for ʻnew venture creationʼ, and SETAs arereluctant to define these enterprises differently for each sector.

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EEqquuiittyy TTaarrggeettss

7.1 Achievement of Equity Targets (NSDS Principle No 3)

Transformation remains at the forefront of all skills development activities so as to createemployment opportunities for previously disadvantaged communities of our country. Theachievement of equity targets in the NSDS 2005 – 2010 is therefore critical to the previouslydisadvantaged. The equity statistics have been reported under the learner-focused SuccessIndicators, i.e. 2.7, 2.8, 4.1, 4.2 and 4.3, and are summarised in Table 7.1.

Table 7.1: Equity targets and achievement for learners completing learningprogrammes (April 2005 to March 2006)

Table 7.1 indicates that meeting equity targets is a real challenge. The targets that have beenexceeded are those for Blacks and women in Success Indicator 2.7, 3.1 and 4.3 respectively.However, the general performance is reasonable, considering that this was the first year ofimplementation of NSDS 2005 – 2010.

No specific quantitative targets are set for the youth, other than that youth development should becovered across all the success indicators. The statistics on implementation indicate that forSuccess Indicators 2.7 and 2.8, 11% of those trained were youth. In respect of Success Indicator4.1 and 4.2, 25% of the people trained were also youth, and for Success Indicator 4.3, a 100%achievement was attained. In view of the fact that most beneficiaries in all other successindicators are young people, progress on youth development is even higher than indicated in thefigures in Table 7.1.

7.2 Case studies relating to equity targets

Two case studies are described below to indicate the improvement of the lives of people withdisabilities and equipping youth through skills development programmes. The first programmehad a major impact on the lives of people with disabilities while the second assisted young peoplewho were previously unemployed to be employed by a large motor manufacturing company.

[Note: No target was set for youth. This was an initiative of the Department to include youth in equity targets.]

Category Target SI 2.7%

SI 2.8%

SI 3.1%

SI 4.1%

SI 4.2%

SI 4.3%

Total%

Blacks 85 94 60 99 51 40 66 68

Women 54 15 34 68 35 20 75 41

People withdisabilities 4 0.5 0.3 2.9 0.9 2 0.8 1

YouthYouth in allcategories 11 10 64 33 17 100 39

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Case study No. 5: Unicraft Centre for people with disabilities

Short description of the project

The project started in January 2006. The training was initiated by the Unicraft Centre for peoplewith disabilities. The stakeholders for this project are the Association for Persons with Disabilities(APD), Clotex and the Department of Labour.

The project targeted people with disabilities in communities in Beaufort West. Currently 24 peoplewith disabilities are being trained at the Centre, of which 12 do cloth painting and the other 12 dobeading. Learners who do cloth painting learn to trace pictures on material, iron serviettes oncloth, and how to make placemats, cushions, tablecloths, shirts and aprons. They also learn howto use patterns and make their own patterns, to use sewing machines and over-lockers, and howto finish products to ensure quality. They also learn about paint techniques, colour schemes andmixing colours.

Name of Province Western Cape

Name of project Beading and Cloth Painting Project for people with disabilities

Location Beaufort West Unicraft Centre

Beneficiaries Unemployed people with disabilities

Funding partners NSF and Department of Social Services

Type of training Beading and cloth painting

Number trained to date 24 (Blacks: 79%; Women: 83%; People with disabilities: 100%)

Number placed to date 24 (Blacks: 79%; Women: 83%; People with disabilities: 100%)

People with disabilities at the Unicraft Centre with the table cloths, cushion covers and serviettes theypainted, also showing their certificates of competence.

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Beading was a challenge in view of the small size of the beads and the equipment that was notvery appropriate for people with disabilities. Nevertheless, learners tried their best and succeededin producing attractive earrings, neckpieces and key rings.

The project generates income through selling items produced at the local market and throughspecial orders received from time to time. This makes the project sustainable and viable.

The main benefit of the project is that it helped the learners to realise their self-worth. Before theprogrammes their lives had little meaning and they were a burden to their families. Some wereinitially very withdrawn, while others were arrogant, but through the project they learnt disciplineand how to work together as a team.

Most of them started the project with very limited skills, but through the skills developmentprogrammes they realised that they could actually do something with their hands that wouldenable them to generate income. This improved their self-esteem and pride as they discoveredwhat they were able to do.

The aspiration of the project manager is to see learners develop even further to start their ownbusiness, so she will be introducing a programme in entrepreneurship soon.

People with disabilities showing the shirts they painted.

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Case study No. 6: The Hummer Project for unemployed youth

Short description of the project

The Hummer project was started in 2005. It is housed at the Struandale Plant of GeneralMotors in Port Elizabeth. The aim of the project is to equip unemployed youth with motorassembly skills and to employ them temporarily for a period of three to four years toassemble the Hummer car. They receive training in hand-skills (metal) and HIV and AIDSawareness, together with on-job-coaching to prepare them for assembling work.

The minimum requirement for admission into the project is grade 12 with maths andscience. A total of 500 young people have been trained and 466 of these have been placedin the company. The project is also aimed at providing permanent or long-term employmentin the formal sector as the skills they acquired are transferable to other motor manufacturingcompanies.

The learners were satisfied with the quality of training they received, the facilities andtechnical equipment, and also with the frequent and supportive interaction withmanagement. They feel that their lives have changed for the better since joining the projectas they now earn good salaries. They realise that their marketability has increasedconsiderably as there is a national need for motor assemblers.

Learners in the HummerAssembly Project atGeneral Motors in PortElizabeth.

Name of Province Eastern Cape

Name of project Hummer Project

Location The project is taking place at General Motors at the StruandalePlant in Port Elizabeth

Beneficiaries The beneficiaries are unemployed youth with a minimumrequirement of Grade 12 with Maths and Science

Funding partners NSF and General Motors

Type of training Vehicle Assembly (Handskills, production, material handling)Administration and HIV and AIDS

Number trained to date 500 (Blacks: 98%; Women: 30%; People with disabilities: 0%)

Number placed to date 466 (Blacks: 98%; Women: 28%)

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CCoonncclluussiioonnss aanndd rreeccoommmmeennddaattiioonnss bbyy tthhee NNaattiioonnaall SSkkiillllssAAuutthhoorriittyy ((NNSSAA))

This chapter presents the conclusions and recommendations of the NSA. After studying thepreceding chapters on the progress towards achieving the objectives of NSDS II, the NSA hastaken note of the successes achieved, as well as the challenges and obstacles that need to beaddressed. In this section of the report the NSA presents an overview of where the nation standsin relation to the vision, mission and main objectives of the NSDS. It also indicates the mainareas of concern that need to be addressed, and gives direction for the way forward and the nextyear of NSDS II.

8.1 Prospects of success in implementing NSDS 2005 – 2010

NSDS 2005 – 2010 was developed through a lengthy and complex process of consultation withall the social partners. This resulted in agreement on ways in which skills development wouldenhance productivity and economic growth, and improve the lives of South Africaʼs labour force.The SETAs and the NSF continue to be regarded as the key agents responsible for implementingthe NSDS. The NPI and the UYF support the implementation of the NSDS by focusing theirprogrammes on productivity and youth empowerment respectively.At the end of NSDS 2001 – 2005 there were still a number of challenges that needed to becarried over and resolved in the NSDS 2005 - 2010. The following are some of the challengesfrom the first phase of the NSDS that still needed to be dealt with in the NSDS 2005 - 2010:

� Verification and validation of information provided by SETAs in order to ensure reliable results

� Tracking learners in learnerships in order to confirm their placement status after completion ofthe programmes

� Addressing the problem of aggregated figures that do not reflect actual performance per sectoror province

� Inefficient SETA governance structures

� Poor marketing and communication of NSDS activities

� Inability to achieve the targets for people with disabilities

� The lack of accurate and regular reporting on financial performance by the SETAs

� The lack of understanding among social partners, the media and the public of the role andimpact of the SETA activities on skills development.

NSDS 2005 – 2010 is therefore geared towards establishing mechanisms to address thesechallenges and ensure improvement in skills development initiatives nationally. The prospects forsuccess in implementing the NSDS 2005 - 2010 looks promising as the key implementing agentshave now been fully established and the necessary procedures and systems have beendeveloped. However, the achievements in 2005/06 already indicate fluctuating levels of successin respect of a number of targets. There are indications that the NSA may have to review sometargets in 2007.

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8.2 Achievement of NSDS targets in 2005/06

The strong foundation that was laid in establishing structures and procedures during NSDS 2001- 2005 meant that SETAs and other implementing agents could focus on targets set for them. Thechanges in the SETA landscape that resulted in mergers between some SETAs, as well aschanges in some SETA governance structures, did not adversely affect the ability of the SETAs todeliver on their mandates.

The following are some of the highlights of the achievements during the first year ofimplementation of NSDS 2005 – 2010:

� The SETA Performance Assessment scorecard was upgraded to measure the performance ofSETAs more comprehensively. This includes the validation of the currency and accuracy offinancial and other data

� A capacity-building project of SETA Boards, that included a board evaluation benchmarking,was completed

� The overall achievement was positive, with 46% of the NSDS targets achieved, and evenexceeded in some cases, while 36% could not be achieved.

8.3 Challenges to the achievement of NSDS targets in 2005/06

The first year of the NSDS 2005 - 2010 faced numerous challenges, and some of the specificchallenges are noted below. However, the primary challenge was massive adjustment of systemsand processes that SETAs and the NSF had to make between the first five years of the NSDSand NSDS 2005 - 2010. Many of the success indicators in NSDS II did not exist in the previousfive-year period of the NSDS. Important new areas are supporting BEE firms and co-operatives,new venture creation and the ISOEs.

Transitional changes between the first and the second phase of the NSDS required an enormousamount of planning and re-adjustment time by the Department and the primary implementingagents. The SETAs, in collaboration with the Department, spent over six months analysing andunpacking NSDS 2005 – 2010 to ensure that their initiatives supported the intent of the NSDS.

The changes in NSDS 2005 – 2010 necessitated major adjustments to the NSF funding windows,and the NSF had to develop a completely new model for strategic projects. This took place at thesame time as managing the rollover and completion of funding windows from the NSDS 2001 - 2005. As a result, many of the funding windows for NSDS 2005 – 2010 have notbeen activated by the end of the 2005/06 period. This matter was further complicated by the NSAending and starting a term halfway through the first year of NSDS 2005 – 2010.

The Government introduced the Joint Initiative on Priority Skills Acquisition (JIPSA) in March 2006as a key building block in achieving the objectives of the Accelerated and Shared Growth Initiativeof SA (Asgi-SA). These objectives are accelerating South Africaʼs economic growth to an averageof 4.5% between 2005 and 2009 and to 6% between 2010 and 2014, and also halvingunemployment and poverty by 2014. JIPSA is tasked with implementing actions to overcome theshortage of suitable skilled labour, especially building the priority skills identified by Asgi-SA.However, while there is substantial overlap between the objectives of the NSDS and JIPSA, thereis no proper liaison between JIPSA and the NSA to ensure that their efforts complement eachother. The NSDS and JIPSA initiatives should support one another in the skills revolution toimprove the competitiveness of the South African labour market.

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In addition to the above broad challenges, some specific challenges identified are:

� 18% of the success indicators for SETAs could not be measured due to lack of information,such as baselines

� 20% of the success indicators for the NSF could not be measured due to a completerestructuring of the NSF funding window mechanism

� 36% of the success indicators that could be measured were not achieved

� The equity targets for Black learners, women learners and learners with disabilities have notbeen achieved

� The SETAs are dependent on the Department of Labour to provide implementation guidelinesfor all their skills development initiatives. Over-dependency on Department of Labourguidelines stifles innovation in SETAs and often results in the non-achievement of targets

� Government departments have continued to lag behind in their submission of Workplace SkillsPlans (WSPs) and (ATRs). Non-reporting by government departments results in gaps ininformation on skills gaps and skills development initiatives

� Communication on the NSDS to the public and awareness creation is still inadequate

� There is no proper collaboration between the JIPSA initiatives and NSDS implementation

� There is no correlation between the number of firms claiming grants and the actual number offirms in a particular sector

� There is no common definition of what constitutes a new venture and a lack of clarity on therole of SETAs after training in new venture creation programmes. The financial challenge isthat the SETA mandate does not cover the funding of start-up costs of a new venture

� There is inadequate evaluation of the impact of individual SETAs in addressing scarce andcritical skills in the labour market

� No formal measurement system has been established for measuring the quality of skillsdevelopment initiatives supported by SETAs. This has not been possible in view of the fact thatthe review of the NQF has not been finalised

� The reporting by the Department of Home Affairs on the number of citizens emigrating orimmigrating with skills identified as scarce and critical is inadequate. This makes it difficult toplan efficiently for skills development initiatives

� The lowering of the threshold for levy payment by small firms to the R 500 000 annual payrollhas had some negative consequences. This has reduced the levy income of SETAs and theNSF, thus reducing the funds available for skills development initiatives. It has also resulted inincomplete reporting on skills development initiatives, as there is little incentive for such smallfirms to report on skills development

� Current projections show that almost 70% of Success Indicators 2.7 and 3.3 on ABET will notbe achieved by March 2010. This may indicate a real or perceived lack of leadership on ABETin the country

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� The fact that no national standard of good practice in skills development has yet beenapproved by the Minister of Labour means that this indicator could not be measured. The factthat this standard is yet to be developed and finally approved by the Minister raises questionsas to whether the target set in Success Indicator 2.4 will be achieved

� There is still no final framework for the Institutes of Sectoral or Occupational Excellence.

8.4 Recommendations

The first year of implementation of NSDS 2005 – 2010 suggests that some targets were easilyachieved. These targets may need to be reviewed to assess their relevance or considerextending them. The NSA should review the targets that have been exceeded by more than 65%,and make recommendations on how they should be adjusted. Leaving these targets unadjustedmight lead to SETAs not having any targets to work towards on certain indicators by the year2010.

All implementing agents need to pay urgent attention to the NSDS principle on promotingemployment equity amongst Black and women learners, and people with disabilities. SETAs needto be encouraged to report on sector-specific efforts to create skills development opportunities forpeople with disabilities.

The NSA should urgently review Success Indicator 2.7, relating to the achievement of the ABET 4qualification, as indications are such that this target will not be met by 2010. The relevance of anABET 4 qualification needs to be researched, and the findings should guide the NSA onappropriate targets for the implementation of ABET in general. There should be engagementswith SAQA regarding the ABET qualification. The proposed ABET should focus on suchchallenges as:

� Employer attitude towards ABET implementation

� Setting meaningful targets for different sectors

� Funding strategies for ABET

� Reasons for high drop-out rates

� Reasons for low enrolment in ABET by working adults

� The most appropriate ABET level as an entry to skills development for various sectors.

The NSA should work closely with the Department of Labour in strengthening skills developmentreporting processes. This will ensure that strategies for closing the skills gaps are based onappropriate information. This should be done in conjunction with the Employment ServicesSystem that the Department is currently developing to improve the accuracy of data, statistics andlabour market information.

The NSA needs to forge better relations with the Technical Working Group (TWG) of JIPSA. Thiswill avoid unnecessary duplication of efforts and promote coordination, where appropriate.Improved interaction between the NSA and the JIPSA TWG will promote convergence of ideas inidentifying skills needs, as well as appropriate skills development initiatives to address suchneeds.

The NSA has not been constantly informed about the implementation and disbursement of fundsof the NSF. To this extent the NSA is unable to advise and give direction to the NSF. It is criticalthat the NSA receives quarterly reports on the NSF in order to assess how NSF initiatives areimpacting on the NSDS.

The NSA will initiate a process to review NSDS 2005 – 2010 during September 2007 forconsideration and approval by the Minister, based on this NSDS Implementation Report and itsconclusions and recommendations. The review would be aimed at proposing adjustments to beintroduced from March 2008. The process would also start to inform the development of theNSDS for the period 2010 – 2015. An important lesson learnt during the change from the NSDS2001 – 2005 to the NSDS 2005 – 2010 was that major changes to Objectives and SuccessIndicators should be avoided, where possible, as they cause delays in implementation.

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