gauteng master skills plan 2 (msp2) for the period 2015

Gauteng Master Skills Plan 2 (MSP2) for the period 2015 - 2020

MSP2 Final Report

30 September 2015

MSP2 Final Report i

Contents

Executive summary ............................................................................................................................... vii

1. Introduction ...................................................................................................................................... 1

1.1. Overall purpose ........................................................................................................................ 1

1.2. Conceptual framework: Skills development Value Chain ......................................................... 1

1.3. Study methodology ................................................................................................................... 3

1.4. Analytical framework................................................................................................................. 4

1.5. Skills demand, supply and skills gap modelling ....................................................................... 5

1.6. GCR Master Skills Plan 2 (2015 to 2020) and GCR Skills Strategy ........................................ 5

1.7. Limitations of the study ............................................................................................................. 6

1.8. Structure of the document ........................................................................................................ 6

2. High-level findings: first Master Skills Plan (2010 – 2015) .............................................................. 8

2.1. Purpose, vision, mission and goals of MSP1 ........................................................................... 8

2.2. Achievements of MSP1 ............................................................................................................ 8

2.3. Key learnings of the first MSP ................................................................................................ 11

2.4. Justification for an MSP2 and implications of MSP1 learnings for MSP2 .............................. 13

3. Setting the context for the MSP2 framework ................................................................................. 15

3.1. Relationship between economic growth, development and employment .............................. 15

3.2. Economic context ................................................................................................................... 15

3.3. The ‘Development Cascade’ .................................................................................................. 23

3.4. Municipal development drivers ............................................................................................... 28

3.5. Identifying skills priority areas in the GCR .............................................................................. 31

3.6. Implications of the contextual reality for the MSP2 ................................................................ 31

3.7. Four Pillars of skills priority for the MSP2 ............................................................................... 33

4. Second Master Skills Plan (2015 to 2020) .................................................................................... 35

4.1. Mission, objectives and principles of MSP2 ........................................................................... 35

4.2. Six elements of MSP2 ............................................................................................................ 38

MSP2 Final Report ii

5. Gauteng City Region Skills Strategy 1 (GSS1) ............................................................................. 49

5.1. GSS development methodology, limitations and risks ........................................................... 49

5.2. Modelling skills supply, skills demand and the skills gap in the GCR .................................... 50

5.3. GCR Skills Strategy: Key challenges ..................................................................................... 57

5.4. Defining priority skills focus areas for the GSS ...................................................................... 57

5.5. Strategic Focus Areas and Related Skills Programmes ......................................................... 58

5.6. Applying MSP Strategic Programmes to the TMR focus areas in the GCR........................... 60

6. High-Level implementation plan (HIP1) for the Gauteng Master Skills Plan 2015 to 2020 .......... 62

6.1. Elements of the high-level implementation plan 1 (HIP1) ...................................................... 62

6.2. Element 1: Re-structure the GCR institutional skills landscape ............................................. 63

6.3. Element 2: Clarify skills implementation capacity ................................................................... 66

6.4. Element 3: Implement the embedded skills development methodology ................................ 67

6.5. Element 4: Sign-off and implementation of the GCR Skills Strategy (GSS) baseline (GSS1) 70

6.6. Element 5: Clear monitoring and evaluation (M&E) framework ............................................. 72

6.7. Element 6: Finalise implementation plan activities ................................................................. 76

7. Conclusion ..................................................................................................................................... 78

MSP2 Final Report i

List of Figures and Tables

Figure 1: Skills Development Value Chain .............................................................................................. 2

Figure 2: MSP2 – Skills Planning Methodology ...................................................................................... 4

Figure 3: Gross Value Add (GVA) per Sector in the GCR (2013) ......................................................... 16

Figure 4: Gross Value Add (GVA) Per Municipality in the GCR (2013) ................................................ 17

Figure 5: Relative Size and Growth of Economic Sectors in the GCR (1995 to 2020) ........................ 19

Figure 6: Projected Size and Growth of Economic Sectors in the GCR (2014 to 2020) ...................... 20

Figure 7: Changes in Skills Profile of the GCR Workforce (2014 to 2020) ........................................... 21

Figure 8: NDP Strategic Thrusts ........................................................................................................... 25

Figure 9: GCR Transformation, Modernisation and Reindustrialisation (TMR) Strategy...................... 27

Figure 10: Interpreting Skills Requirements from the NDP and TMR Strategies .................................. 32

Figure 11: MSP2 – Skills Priorities for the Gauteng Skills Strategy...................................................... 33

Figure 12: MSP2 – ‘4E’ Principles Framework ..................................................................................... 36

Figure 13: MSP2- Relationship between ‘4E’ Framework and Skills Priorities ..................................... 37

Figure 14: MSP2- Six Structuring Elements ......................................................................................... 38

Figure 15: MSP2 – Proposed Institutional Framework for Skills in the GCR ........................................ 40

Figure 16: MSP2 – Skills Development Methodology ........................................................................... 45

Figure 17: GCR Skills Model Overview ................................................................................................. 50

Figure 18: Skills composition and extent of informal employment of different sectors in Gauteng in

2013 ...................................................................................................................................................... 51

Table 1: MSP1 – Priority Skills Targets ................................................................................................ 12

Table 2: Projected employment by skills and formality under the Middle Road scenario..................... 52

Table 3: Scenarios, Economic Sectors and Skills Categories in the Economic Model ........................ 53

Table 4: Skills Gap per Sector per NQF Level ...................................................................................... 56

Table 5: MSP2 – Matching Strategic Skills Programmes to TMR Programme Priorities ..................... 60

Table 6: MSP2- Element 1 Implementation Plan (Restructure the GCR Institutional Landscape) ....... 63

Table 7: MSP2- Element 2 Implementation Plan (Clarify Skills Implementation Capacity) .................. 66

Table 8: MSP2- Element 3 Implementation Plan (Implement the Embedded Skills Development

Methodology) ........................................................................................................................................ 67

Table 9: MSP2- Element 4 Implementation Plan (GCR Skills Strategy Baseline)................................ 70

Table 10: MSP2- Element 5 Implementation Plan (Monitoring & Evaluation Framework) ................... 72

Table 11: MSP2- Element 6 Implementation Plan (Finalise Implementation Plan) .............................. 76

MSP2 Final Report ii

Abbreviations and Acronyms

4E Framework Proposed framework for MSP2: Excellence; Employability; Entrepreneurship; Economic growth

ABET Adult Basic Education and Training

AD Artisan Development

AET Adult Education and Training

Agri Agriculture

AGRISETA Agriculture Sector Education and Training Authority

AIDS Acquired Immune Deficiency Syndrome

APP Annual Performance Plan

Apr April

ASS Annual Schools Survey

ATR Annual Training Report

Aug August

B Bachelor’s Degree

BANKSETA Banking Sector Education and Training Authority

BBBEE Broad Based Black Economic Empowerment

BP Bachelors Pass

BPO Business Process Outsourcing

BPO&O Business Process Outsourcing & Off-shoring

CATHSETA Culture Art Tourism Hospitality and Sports Sector Education and Training Authority

CBO Community-Based Organisation

CEO Chief Operating Officer

CES Core Education Skills Development

CETA Construction Sector Education and Training Authority

CDP Career Development Programme

CHE Council on Higher Education

Com Communication

Const Construction

Co-op Cooperative ("coop") or co-operative ("co-op")

CSIR Council for Scientific and Industrial Research

CWP Community Work Programme

D Doctorate (PHD)

DBE Department of Basic Education

Dec December

DED Department of Economic Development

DID Department of Infrastructure Development

Dip Diploma

DHET Department of Higher Education and Training

DOE Department of Education

DOL Department of Labour

DPSA Department Public Service and Administration

MSP2 Final Report iii

DSD Department of Social Development

DTI Department of Trade and Industry (the dti)

E&T Education and Training

ECD Early Childhood Development

Eco Trsfm Economic Transformation

Eco Infra Economic Infrastructure

EDP Entrepreneur Development

EPWP Extended Public Works Programme

ETDP SETA Education Training and Development Sector Education and Training Authority

EWSETA Energy and Water Sector Education and Training Authority

EXCO Executive Committee

FabLabs Fabrication Laboratory (Arts & Craft eKasilabs and Kusile Mobile Science labs)

FASSET Finance and Accounting Services Sector Education and Training Authority

FEDUSA Federation of Unions of South Africa

FBO Faith-Based Organisation

Feb February

FET Further Education and Training

Fin Financial

FOODBEV Food and Beverage Sector Education and Training Authority

FP&M Fibre Processing and Manufacturing Sector Education and Training Authority

FY Financial Year

GAP Gauteng Accelerator Programme

GC General Certificate

GCR Gauteng City Region

GCRA Gauteng City Region Academy

GCRO Gauteng City Region Observatory

GDE Gauteng Department of Education

GEDP Gauteng Economic Development Plan (2015 to 2020)

GET General Education and Training

GETC General Education and Training Certificate

GEYODIS Gender, Youth and Disability

GGDA Gauteng Growth and Development Agency

GIKES Gauteng Innovation and Knowledge Economy Strategy

Govt/Gov Government

GP Gauteng Province

GPG Gauteng Provincial Government

GSF GCR Skills Forum

GSP GCR Skills Planning Committee

GSS Gauteng City Region Skills Strategy [GSS1 - GSS1 (FY15/16) and GSS2 (FY16/17)]

GTAC Government Technical Advisory Centre

GTMS Government Transformation & Modernisation Skills Development

GVA Gross Value Add

H Honours Degree

HC Higher Certificate

HEI Higher Education Institutes

HEMIS Higher Education Information Management System

MSP2 Final Report iv

HET Higher Education and Training

HIP1 High-Level Implementation Plan 1

HOD Head of Departments

HR Human Resource

HRD Human Resource Development

HSRC Human Sciences Research Council

HWSETA Health and Welfare Sector Education and Training Authority

ICT Information, Communication and Technology

IDS Infrastructure Development & Management Skills

INDLELA Institute for the Development of Learnerships and Learnership Assessment

Infra Infrastructure

INSETA Insurance Sector Education and Training Authority

IPAP Industrial Policy Action Plan

IT Information Technology

JMMS Junior and Middle Management categories

L1 National Qualifications Framework (NQF) Level 1










LGC Local Government Committee

LGSETA Local Government Sector Education and Training Authority

LSEN Learners with Special Educational Needs

M Master’s Degree

M&E Monitoring and Evaluation

Manuf Manufacturing

Mar March

MEC Member of Executive Council

MERSETA Manufacturing Engineering and Related Services Sector Education and Training Authority

MICT SETA Media, Information & Communication Technologies Sector Education and Training Authority

MOU Memorandum of Understanding

MPAT Management Performance Assessment Tool

MQA Mining Qualifications Authority

MSP Master Skills Plan

MSP1 First Master Skills Plan for the Gauteng City Region

MSP2 Second Master Skills Plan for the Gauteng City Region

MST Maths Science and Technology

NAMB National Artisan Moderating Body

ND National Diploma

NDP National Development Plan

NGO Non-Governmental Organisation

MSP2 Final Report v

NGP New Growth Path

NIP National Infrastructure Plan

NLRD National Learner Record Database

NPO Non-Profit Organisation

NQF National Qualifications Framework

NSG National School of Governance

NSA National Skills Authority

NSDS III National Skills Development Strategy III

NYDA National Youth Development Agency

Oct October

OFO Organising Framework for Occupations

OOP Office of the Premier

PCF Premier’s Coordinating Forum

PEIS Public Employment Initiatives Skills

PESD Priority Economic Skills Development

Phys Plng Physical Planning

PIVOTAL Professional, Vocational, Technical and Academic learning programmes (that result in occupational qualifications or part qualifications on the National Qualifications Framework)

Plng Planning

POS Public Ordinary Schools

PPP Public Private Partnership

Progs Programmes

PSDF Provincial Skills Development Forum

PSDS Provincial Skills Development Strategy

PSET Post School Education and Training System

PSETA Public Sector Education and Training Authority

PSP Premier’s Skills Partnership

PSS Provincial Skills Strategy

Q1 Quarter 1

QCTO Quality Council for Trades and Occupations

R Rand (South African)

R&D Research and Development

RACI Responsibilities, Accountabilities, Consultation and Informed parties

RMS Repair and Maintenance Skills

RPL Recognition of Prior Learning

SA South Africa

SALGA South African Local Government Agency

SAQA South African Qualifications Authority

SASAMS South African School Administration and Management System

SASSETA Safety and Security Sector Education and Training Authority

SBD Small Business Department

SD Skills Development

Sept September

SERVICES SETA Services Sector Education and Training Authority

SETA Sector Education and Training Authority

SIC Standard Industrial Classification (Codes)

SIP Strategic Integrated Project

MSP2 Final Report vi

SMART Specific, Measurable, Achievable (Attributable/Accurate), Realistic (Relevant) And Time Bound M&E principles

SMME Small, Medium and Micro Enterprises

SOPA State of the Province Address

SQF Sub Quality Framework (to the NQF)

StatsSA Statistics South Africa

T&C Technology and Communication

TBA To Be Announced

TEP Tourism Enterprise Partnership

TETA Transport Sector Education and Training Authority

T/form Transform

TMR Transformation, Modernisation and Re-Industrialisation

TOR Terms Of Reference

TVET Technical & Vocational Education and Training

U&UT Universities and Universities of Technology

UNISA University of South Africa

Urb Dev Urban Development

VADC Vocational & Artisan Development Committee

W&RSETA Wholesale & Retail Sector Education and Training Authority

WSPs Workplace Skills Plans

Y1 Year 1

Y2 Year 2

Y3 Year 3

Y4 Year 4

Y5 Year 5

YDEC Youth Development & Employment Committee

Yrs Years

MSP2 Final Report vii

Executive summary

Introduction

The development of the Second Master Skills Plan for the Gauteng City Region (MSP2) for the period

2015 to 2020 is based on a review of the successes and failures of the first Master Skills Plan for the

Gauteng City Region (MSP1) for the period 2010 to 2015. This review process included document

analysis and research; interviews, meetings with key stakeholders; and an extensive analysis of the SA

skills context and modelling of the Gauteng City Region (GCR) skills landscape and skills gap. Draft

recommendations were developed and tested with stakeholders at a two day strategic session, prior to

being finalised for approval.

Key findings

MSP1 was not successful in implementing a high-level skills strategy for the GCR. Although the

document influenced GCRA's activities, it had little influence on skills planning or implementation in the

GCR, within provincial departments and across government sectors and the private sector. Key

problems were its static (document) nature, limited consultation during and after its implementation, the

complex and inefficient skills landscape in the GCR, a lack of clear roles for its implementation and

limited capacity applied to its implementation, monitoring and review. Further limited resources were

applied to its implementation and no mechanisms for ensuring commitment to its intents were

implemented. In addition, there have been significant changes to the skills landscape during its period

of implementation.

Proposed framework for MSP2

It is proposed that MSP2’s implementation be focused on a ‘4E’

Framework:

Excellence: Quality in terms of radically improved public

service delivery and educational outcomes, that leads to:-

Employability: By ensuring workplace-ready skills (creating

skilled entrepreneurs); augmented by:-

Entrepreneurship: Focusing on creating next-generation

businesses that will create sustained employment growth; that

together drive:-

Economic growth in the GCR, thus creating sustainable

employment.

Excellence

Employability

Entrepreneurship

Economic Growth

TMR Outcome

MSP2 Final Report viii

Six elements of MSP2

This Master Skills Plan sets out the requirements for the development and implementation of a master

skills strategy for the GCR for the next six years (2015-2020). Six elements are required to ensure

successful implementation. These elements include the following:

1. A Rationalised GCR

Institutional Skills Landscape

that prioritises skills planning as

core to provincial development

outcomes and creates

consultative structures across

all government and private

sectors.

2. A Clarified GCR Skills

Implementation Capacity

through a strong and inclusive

GCR Skills Forum (GSF

previously known as the PSDF)

as the coordinative body for skills in GCR. This requires a new GCRA that adopts the role as

the strategic skills planning and implementation agency in the GCR, coordinating skills

initiatives across the GCR.

3. Embedding a GCR Skills Development Methodology in the province through which public

sector, private sector, infrastructure skills needs and public employment skills requirements

are developed, coordinated and implemented.

4. Developing & Implementing a GCR Skills Strategy (GSS), which is annually reviewed and

reported on by the GCRA to all skills agencies in the province.

5. A Clear Monitoring & Evaluation Framework for the implementation of the GSS, which

guides the re-planning and implementation of skills needs across the province.

MSP2 Final Report ix

6. A High-Level Implementation Plan covering the institutional elements (E1, E2, E3, and E5)

and the ongoing GSS review process.

Once implemented, these six elements will provide the framework for the

regular redevelopment of the GCR Skills Strategy (GSS). Failure to

implement these six elements will place the development and implementation

of the GSS at risk.

Skills priority pillars for MSP2

The GCR Skills Strategy (GSS) is the highest-level coordinative strategy for

skills development for the GCR. The GSS identifies and prioritises a

programme of action for the GCR in relation to four skills priorities:

Government Skills: Core skills required by Provincial & Municipal

public sector bodies to transform and modernise public service and

improve service delivery.

Private Sector Skills: Scarce skills and skills for growth and

employment drivers in GCR’s priority economic sectors.

Infrastructure Development Skills: Skills required to drive GCR

SIP and TMR infrastructure programmes.

Job Creation Skills: Coordination and focus of skills developed

through and for public employment programmes.

Defining GCR skills focus areas

Skills Demand (based on economic projections) and Supply modelling and alignment of skills objectives

in the ‘development cascade’ identifies key skills gaps in the GCR. The following six skills focus areas

must form the focus of the GCRA’s implementation of the GSS.

Focus 1: Driving Government Transformation & Modernisation, as this has the greatest

potential to positively impact growth and service delivery.

Focus 2: Driving Entrepreneur Development to support TMR TEP and GCR employment

creation targets.

Focus 3: Driving Infrastructure Development & Management Skills, in order to support

massive investments in infrastructure in the GCR.

Focus 4: Driving Creation of Priority Economic Growth Skills required to unleash economic

growth in the GCR.

Focus 5: Driving Core Education & Skills Development Excellence: The GSS focuses on

radically improving the quality of core education outcomes in the GCR through departments &

agencies mandated with key skills areas across the skills value chain.

Focus 6: Driving Artisan Development in the GCR, through fast-track implementation of

interventions envisaged by the DHET.

Priority skills programmes for the MSP2

MSP2 Final Report x

The following priority programmes are identified in the GSS. The top three programmes for the GCRA

to focus on are highlighted.

A. Public Sector Skills (Provincial & Local Government):

GCR 4E Government Transformation & Modernisation Skills Development (G4E-GTMS)

GCR 4E Core Education Skills Development (G4E-CES)

GCR 4E Career Development Programme (G4E-CDP)

B. Private (Economic) Sector Skills (GCR):

GCR 4E Priority Economic Skills Development (G4E-PESD)

GCR 4E Entrepreneur Development (G4E-EDP)

GCR 4E Artisan Development (G4E-AD)

C. Infrastructure Development Skills (GCR):

GCR 4E Infrastructure Development & Management Skills (G4E-IDS)

GCR 4E Repair and Maintenance Skills (G4E-RMS)

D. Employment Creation Skills (GCR):

GCR 4E Public Employment Initiatives Skills (G4E-PEIS)

GCR 4E GEYODI Skills (G4E-GEYODIS)

Conclusion

The MSP2 will require a fundamental shift in the approach to skills planning in the GCR, as well as to

the structures through which skills planning is undertaken, and how skills development programmes

are identified, developed and implemented by all skills implementing agents. Given the limited success

achieved with the MSP1, this shift in approach is deemed necessary to ensure that the GCR can

identify, develop and deploy the skills it requires to fuel its economic growth trajectory. It is only through

ensuring skills are available to support economic and social development goals that the GCR will be

able to achieve the bold targets set out in the Transformation, Modernisation and Reindustrialisation

(TMR) strategy.

MSP2 Final Report 1

1. Introduction

“Education is the most powerful weapon you can use to change the world” Nelson Mandela

1.1. Overall purpose

The Gauteng Department of Education (GDE), through the Gauteng City Region Academy (GCRA),

commissioned a study to review the success of the Master Skills Plan for the period 2010 – 2015

(MSP1) and to develop a new Master Skills Plan for the period 2015 to 2020 (MSP2) aligned with

new national and provincial strategic frameworks.

The Gauteng City Region (GCR) is unique as it represents the economic growth engine of the country

and the African subcontinent, serving as a high-density hub for trade, industry, employment and skills

production. Gauteng is also faced with a unique confluence of socio-economic realities that require

structured approaches to ensure that skills supply and demand meet each other in a goal directed way.

This document presents a proposed framework for the new Master Skills Plan (2015 to 2020) referred

to as MSP2), that incorporates learnings from the first Master Skills Plan (referred to as MSP1) to ensure

that the province has an up to date, systematic and logical process to confirm scarce and critical skills,

prioritise and re-prioritise provincial projects, review and revise processes so as to determine progress

towards meet its economic goals.

1.2. Conceptual framework: Skills development Value Chain

The Master Skills Plan 2 for the period 2015 to 2020 is built on a conceptual overview of, and analysis

of the outcomes from the skills development Value Chain in the GCR. The Skills Development Value

Chain sets out the specific components that comprise the full skills production process in the province

and furthermore identifies the key break points, gaps or inefficiencies in the Value Chain that create

blockages in the production of skills required for the economy.

Figure 1 overleaf illustrates this conceptual Skills Development Value Chain, which is comprised of the

following core educational and skills development components:

Early Childhood Development (ECD), covering children from age 0 to 5, operated by both

the public sector and by private individuals;

General Education and Training (GET), comprising the compulsory schooling period

including primary school (Grades R to Grade 7) and the first two years of secondary schooling

(Grades 8 and 9);

Further Education and Training (FET), comprising of the voluntary Secondary Schooling

stage (Grades 10 to 12), as well as Technical and Special secondary schooling and also the

Technical & Vocational Education and Training (TVET) Colleges;

Higher Education and Training (HET), comprising of Universities and Universities of

Technology (U&UT).

MSP2 Final Report 2

Figure 1: Skills Development Value Chain

In addition to the core educational elements, the Skills Development Value Chain also outlines skills

development initiatives revolving around the workplace. These components include:

Workplace-based Training Support, including Recognition of Prior Learning (RPL) and

workplace skills development programmes; and

Sector Education and Training Authorities (SETAs), financing, developing and delivering

sector-specific skills programmes to employed- and unemployed people.

In addition to these workplace-based programmes, certain programmes also aim to develop skills

amongst unemployed, informally-employed and under-employed people. These components include:

Community Colleges, which aim to develop practical skills and basic literacy amongst work

seekers; and

Public Job Creation Programmes, aimed at providing unemployed people with an opportunity

for part-time or full-time employment, along with the opportunity to develop employable skills.

These education and skills elements together form the Skills Development Value Chain, that when

operating effectively, feed skills into the employment marketplace at various stages. These are

indicated by the purple arrows in Figure 1, and include:

MSP2 Final Report 3

Mostly un-skilled School leavers entering the workplace for the first time, from Grade 9

onwards;

Mostly un-skilled Matriculants entering the workforce, or if they have adequate results and

the means to study further combined with meeting qualification / institutional requirements,

those that enter other elements of the Skills Development Value Chain, notably TVET Colleges,

Universities and Universities of Technology;

Semi-Skilled and Skilled people entering the workforce with formal skills obtained from the

TVET and U & UT elements, many of which enter the workplace as a part of formal workplace

training and development processes such as apprenticeships and learnerships; and

Highly Skilled people entering the workforce from advanced stages of the U & UT value chain

(people with Honours, Masters and Doctorate degrees and professional qualifications).

The effectiveness of skills produced by this Value Chain, in relation to the specific demand for skills in

specific economic sectors, results in the following outcomes:

People entering formal employment in the private or public sector, who progress in their

careers via practical experience, workplace training and development;

People choosing, or being forced to seek economic opportunities in the informal sector;

Those that cannot access formal or informal employment (for various reasons), who end up as

unemployed or discouraged work seekers (including unemployed graduates); and finally,

Those people that choose to remain economically inactive and in most cases, dependent on

the economy via the social grant system.

1.3. Study methodology

An eleven-step skills planning methodology has been applied to the development of the MSP2 Gauteng

City Region Skills Strategy (GSS) Baseline for 2015 to 2016:

MSP2 Final Report 4

Figure 2: MSP2 – Skills Planning Methodology

The Contextual Analysis includes Step A: National Growth and Development Plans and Step B:

Provincial Growth Strategy and Planning. The implications of these are set out in Chapter 3, Section

3.3.

The assessment of the Regulatory framework, structures and approval processes include Step C:

Skills Development Regulatory Framework; Step D: Provincial Skills Development Forum and Other

Key Engagements; and Step I: Validation with Stakeholders. Engagement has been managed through

a Steering Committee for this project, but clear recommendations are made to ensure that a provincial

skills forum is developed (Element 2).

Modelling and Prioritisation of GCR skills requirements includes Step E: Provincial Skills

Development Priorities and Job Creation Enablers, which are outlined in Section 3.5. Step F includes

Skills Demand and Supply modelling and Step G: Scarce and Critical Skills that are set out in Chapter

5, Section 5.2.

Steps A to G then culminate in Step H: Strategic Skills Plan, which is outlined in Chapter Error!

eference source not found.: Master Skills Plan (Six Elements) and Chapter 5: GCR Skills Strategy 1.

Finally, Implementation, Monitoring and Review processes are developed in Step H: Monitoring

Framework and Step J: Implementation Plan. These are set out in Chapters 4 and 6.

It is relevant to note that stakeholder engagement was central to each of the 11 steps (refer to Annexure

8 for a list of stakeholders engaged).

1.4. Analytical framework

This project applied a mixed-method analytical framework. Methods used include the following:

MSP2 Final Report 5

A Desktop information review was conducted of 77 documents related to the Gauteng Master

Skills Plan 1, the Skills Value Chain in South Africa and the GCR; Development Plans and

Strategies; Provincial Strategic and Operational Plans; Skills Policy and Legislation; Skills

Strategies, Frameworks and Plans; Skills Statistics, and Statutory Reports. Annexure 7

provides a reference list of documents consulted.

A total of 26 in-depth interviews (either face-to-face or telephonic) were held that covered

officials at the GCRA and GDE, other provincial departments (DED, DID), key SETAs

(Bankseta and Merseta), the National Department of Education (DoE) and Department of

Higher Education and Training (DHET), additional organisations identified by the GCRA as key

(Sci-Bono, National Youth Development Agency, Automotive Industrial Development

Corporation, SALGA), along with senior officials in the province (Head of Department:

Education; MEC: Education and Head of Planning in the Office of the Premier). Annexure 8

lists those stakeholders engaged through the process of developing the MSP2.

A total of 99 stakeholders were engaged through a two-day strategic stakeholder workshop

where the draft MSP was presented and components of the MSP were debated, with inputs

provided by stakeholders towards a revised MSP.

A total of 329 stakeholders were engaged through an online survey. This survey instrument

asked respondents from across the skills value chain for their views on the current status of the

skills environment in South Africa and the GCR, as well as their views on and support for the

approach proposed for the MSP2.

A total of two workshops with Deloitte skills/adult learning & development-, actuarial

analytics & forecasting subject matter experts facilitated by the MSP2 research team to

review research findings, determine the skills value chain, identify current priorities in the SA

skills development and Post School Education, proposed recommendations and Training

(PSET) environment, identify key stakeholders as well as brainstorm the format and layout of

the draft MSP2.

1.5. Skills demand, supply and skills gap modelling

A comprehensive spreadsheet model has been developed to analyse skills supply and demand in the

Gauteng City Region (GCR) and to ascertain skills gaps and predict future skills demand and supply

during the MSP2 period. The key components of the modelling approach include:

GCR Historical Economic and Skills Productivity Analysis (1995 to 2013): This is based

on analysis of the GCR’s economy over the last twenty years, including sectoral splits at a

municipal level of analysis.

GCR Economic and Skills Demand Projection (2014 to 2020): This historical data has been

used to project economic growth (Gross Value Add) over the next six years, and from this, to

ascertain based on labour productivity trends the potential demand for skills to support the

GCR’s economic growth projection.

GCR Skills Supply Analysis (2014 to 2020): An analysis of historical outputs from the Skills

Value Chain (Basic Education onwards) was used to project future skills production in the GCR.

GCR Skills Gap Analysis: Based on the above, the model correlates demand data with supply

data, in order to assess current skills gaps and surpluses at a sectoral and occupational level.

1.6. GCR Master Skills Plan 2 (2015 to 2020) and GCR Skills Strategy

Based on the above analytical processes, the eleven step methodology has been used to produce two

specific outcomes. First, a set of six elements to frame Master Skills Plan 2 are outlined (see Section

4.2). Second, a Gauteng Skills Strategy Baseline for the period 2015 to 2020 is outlined (see Section

5.

MSP2 Final Report 6

1.7. Limitations of the study

This study was bound by limitations on time and resources for its completion.

The review of the MSP1 is not intended to be a full, formal evaluation of the programme. Rather,

it is a strategic review intended to highlight key learnings and achievements, along with a

justification and implications to inform the development of an MSP2;

Time and cost limitations placed constraints on the extent to which full engagement during the

project process was possible with key stakeholders. As a consequence, alternative methods

were used to obtain maximum inputs into the plan. These included holding a two-day strategic

workshop (through which almost 100 organisations were engaged) and an online survey used

to canvass views from a wide range of stakeholders across all skills sectors.

Project time and cost limitations also constrained the extent to which comprehensive data could

be identified, procured and included in the skills modelling process. Therefore, certain important

datasets that are available should be procured and included into further iterations of the skills

modelling process.

These limitations were also considered in the development of the final recommendations. As a result,

the process of implementing the proposals for MSP2 will substantially address the above shortcomings

over time, as a revised skills institutional framework and skills strategy methodology are implemented

and applied.

1.8. Structure of the document

This document includes the following:

Chapter 2: Learnings from MSP1

The chapter reflects on learnings and achievements of the MSP 2010 to 2015,

presents a justification for MSP2 and implications for a revised MSP based on

these learnings.

Chapter 3: Development Context

The chapter presents national development imperatives, provincial

development priorities and municipal development drivers to be considered as

part of the MSP2. Through an understanding of priorities, four priority skills

pillars are identified as the focus of the MSP2.

Chapter 4: Gauteng MSP 2015 to 2020 Framework

The chapter is introduced by illustrating the Skills Development Value Chain.

It presents the mission, objectives and principles of MSP2.

Section 4.1 provides an overview of the 4E Framework, followed by an

introduction of the six elements of the MSP2 that are critical for successful

implementation.

Section 4.2 elaborates on what is believed to be the structure of a rationalised

GCR institutional skills landscape (Element 1).

In Section 4.3 the implementation capacity required for a driving institution

(Element 2) as well as placement of GCRA as the proposed driving institution

for the MSP2.

Section4.4 illustrates the embedded GCR Skills Development Methodology

(Element 3).

Section 4.5 provides an overview of Elements 4, 5 and 6 are provided in.

Chapter 5: Gauteng City Region Skills Strategy 1 (GSS1) – Element 4

MSP2 Final Report 7

The chapter presents the first GCR Skills Strategy to be approved (section

5.1). A review of the status quo, supply and demand dynamics and skills gaps

is presented as justification for a list of priority focus areas for the province.

Chapter 6: High-level Implementation Plan – Element 6

The key actions and deliverables for the period September 2015 – March 2016

are presented, with stakeholders accountable for implementation. These

actions and deliverables are considered key to establish the basis from which

MSP2 will be implemented.

MSP2 Final Report 8

2. High-level findings: first Master Skills Plan (2010 – 2015)

A review of the first Master Skills Plan (MSP1) was completed and findings presented in this chapter

are a reflection of themes identified through a range of interviews with leadership and management at

the Gauteng City Region Academy (GCRA), as well as stakeholders in other Gauteng Provincial

Departments (refer to Annexure 8 for a list of stakeholders interviewed). The Implementation Plan

developed in 2010 and the revised Implementation Plan developed in 2012, were scrutinised, with data

collected by programme managers and verified by the GCRA to determine achievements against those

targets that were set for MSP1.

This chapter firstly presents the purpose, vision, mission and goals set for MSP1 (section 2.1). It then

considers the critical success factors identified in MSP1 and provides an indication of the extent to

which implementation of the MSP1 was responsive to those critical success factors. Findings in

response to research questions posed as part of the review of the MSP1, are considered in Section 2.2

and elaborated on as part of Annexure 1. Section 2.3 considers of the key learnings of the MSP1 and

the chapter is concluded with a reflection on the implications of these learnings for a revised MSP2.

2.1. Purpose, vision, mission and goals of MSP1

Purpose: The Master Skills Plan aimed to mobilise all key stakeholders towards responding to

the skills demands of the province. It focused on synergies required between basic,

vocational, skills and higher education to produce knowledge and employable skills

to enable the GCR vision of Gauteng.

Vision: To educate and support sustainable communities through partnership of all role

players in Gauteng.

Mission: To ensure that Gauteng develops quality skills that meet the requirements of industry

and the public sector for economic and employment growth in a coordinated way.

Goals: (i) Overview of skills gaps with a clear socio-economic picture of the skills landscape in

Gauteng;

(ii) Forecast skills requirements to 2015;

(iii) MSP to respond to skills needs; and

(iv) Unify and coordinate various initiatives for education and Skills Development

through the MSP.

2.2. Achievements of MSP1

Six critical success factors were identified in the first Master Skills Plan. Ideally the Implementation

Plan should have built these into activities to ensure successful implementation. This section reflects

on achievements of MSP1 against each critical success factor. .

MSP2 Final Report 9

The following reflects on achievements of MSP1 against each critical success factor identified in the

first Master Skills Plan:

1) Successful implementation of the MSP1 should occur within the relevant policy

framework

This was partly achieved – the introduction of new strategies as well as the change in political

leadership of the province, had implications for usefulness of the MSP1.

2) Institutional stakeholders in the Education and Skills Process

This was partly achieved – not all stakeholders listed as key in the MSP1 were consulted to

ensure synergy in driving interventions within the skills space. Implementation of the MSP1

did not mobilise all key stakeholders around their specific contribution. Although synergy was

visible between the GCRA and the Gauteng Department of Economic Development (DED)

(who were the only other Department that aligned their Skills Plan to the MSP1), there was an

absence of synergy with the Gauteng Provincial Executive and other Gauteng Provincial

Departments, National Departments (specifically the Department of Basic Education (DBE)

and the Department of Higher Education and Training (DHET) who are considered key role

players in terms of skills development), Local Government, Private Sector Institutions,

Professional Bodies, Regulators and key Associations.

Although achievements are acknowledged, the networks and partnerships built were

insufficient to meet the objectives of the MSP. It was found that each institution has their own

Skills Plan and the GCRA has limited awareness of what skills programmes are being

implemented by other Provincial Departments and stakeholders. Interviewees indicated that

more could be done to build relationships with the Sector Education and Training Authorities

(SETAs) and private sector relationships, especially where such partnerships would expose

public servants to opportunities to gain skills from the private sector (through exchange

programmes).

3) Consultation with Stakeholders

This was not achieved to the extent that the MSP1 had intended - The MSP1 indicated that

inputs from sister departments, municipalities and the private sector are vital to the success of

the document. The GCRA mobilised few stakeholders to respond to the skills demands of the

province. Interviews and analysis of achievements against the Implementation Plan indicate

that the type of consultation with relevant stakeholders was insufficient to meet the purpose,

vision, mission and goals of the MSP1. Relationships were built with the Human Resource

Development (HRD) counterparts in other Departments and GCRA mainly supported them to

develop their Workplace Skills Plans (WSPs) and their Annual Training Reports (ATRs).

Relationships were also built with some private sector organisations for placement of youth.

However, no relationships were built with municipalities mainly due to a shift in focus of new

political priorities.

The reality of ‘silo syndrome’ affects the visibility of partnerships and creates duplication. It

further perpetuates the challenge of organisations shifting their focus to non-core activities as

they strive to address skills development.

A number of stakeholders felt that the province has not intervened correctly in the scarce skills

areas identified in the MSP1. Some of the reasons include a lack of a coordinated and

synchronised set of activities of all key stakeholders (public and private) across the skills

MSP2 Final Report 10

development value chain; clarity on which stakeholders are responsible for what and clarity on

the priorities of the province as a whole.

The Implementation Plan fell short in terms of responding to the five major challenges listed in

the MSP1 in 2010 that impact scarce and critical skills development and training in the province.

These are still challenges in 2015:

• No proper system to monitor skills development and training;

• SETA information does not provide provincial breakdown, rendering it inappropriate for

provincial planning;

• Higher and Further Education institutions are not producing sufficient and appropriate

graduates to meet needs of industry and public sector agendas;

• Shortage of qualified Maths, Science and Technology (MST) teachers makes it difficult

to produce enough learners to take up careers in areas which present a high level of

scarcity of skills; and

• Certain technical and vocational careers are not accorded the prestige and recognition

they deserve, hence are often viewed as a last resort.

4) Change management

This was not achieved - the MSP1 stated that the development of skills systems into a unified

whole will require that the whole skills system goes through progressive phases of

development. However, no change management process was included as part of the

Implementation Plan. There was limited advocacy and consultation with stakeholders to ensure

ad hoc projects become synchronized to reach specific outcomes. In addition, both

Implementation Plans (2010 and 2012) did not specify outcomes beyond quantitative targets

that were set for training. The review further found that the DHET scarce skills list guided the

interventions of Institutions, rather than the MSP1.

5) Monitoring, Measurement and Evaluation

The MSP1 emphasised the importance of creating a monitoring structure and specified three

actions for the Implementation Plan. The following was established from the review of the

MSP1:

• M&E would be based on indicators in the MSP1 – in the MSP the Action Plan did

not clearly align to the Implementation Plan’s high level activities and indicators. The

Implementation Plan showed no link to operational plans of stakeholders to enable

monitoring of progress towards targets. In addition, indicators in the Implementation

Plan were insufficiently broken down in the first Implementation Plan, with no

Monitoring & Evaluation (M&E) framework included. Reporting focused on numbers

reached or numbers trained.

• An agreed schedule of reporting and M&E of activities – quarterly reporting was

submitted. Evaluation was done on some programmes but minimal evidence of impact

was shown through programmes evaluated.

• Reporting on non-governmental activities in areas of skills development that

impact on the plan, will be enhanced and this will include a clearer picture of highly

commendable activities and investments related to skills development undertaken in

the private sector (modalities to be jointly worked out with representatives of big

business within Gauteng). This was not achieved. However, it was found that Non

Government Organisations (NGOs) are active in skills development in areas that align

to the MSP1 priorities. Closer engagement with and acknowledgement of the role of

NGOs could improve partnerships with GCRA.


6) Implementation of the MSP1

The MSP1 accentuated that its success depends on the full contribution of all stakeholders in

the province. Although key skills areas for the province were identified, the review found that

implementation of the MSP1 did not sufficiently meet the overall purpose, vision, mission and

objectives set out for the MSP1. Critical success factors identified in the MSP were not

sufficiently addressed.

Key findings from the review include the following:

MSP1 spoke about putting in place mechanisms to ensure optimal and substantive

participation in the planning, stewardship and M&E of the strategy – these were not put in

place as part of implementing the MSP1.

MSP1 indicated that the GCRA should facilitate coordination through the Provincial Skills

Development Forum (PSDF) with the forum playing an active role to facilitate skills

development activities in the province to support local growth and development priorities.

The forum will play a key role in the development and support the implementation. The

PSDF was only launched late in 2014 and has few executory sub-committees considered

functional.

MSP1 stated the need for credible capacity within the GCRA to provide a single process

and set of products related to labour market analysis and the modelling of skills supply and

demand for all sectors. The review found that GCRA had insufficient capacity to drive the

Implementation requirements identified in the MSP1. As a result, achievements are limited.

The Implementation Plan provided no baseline data against which to measure

improvement and indicators were not clearly defined in the Implementation Plan.

The Implementation Plan had limited usefulness (this is elaborated on in Section 2.3

below). It is recommended that activities and indicators move beyond numbers towards

quality, which must be clearly defined in terms of outcomes that link to an M&E

Framework.

The budget for implementation of the MSP1 was not maintained in terms of priority areas

identified in the Plan.

It was difficult to determine what was delivered since the adoption of the MSP in 2010

without interviewing Programme Managers and relying on them to provide quantitative

numbers for achievements. This was because there was no central database that

measured progress against indicators set for the MSP1.

The Terms of Reference (ToR) for the review of the MSP1 identified five research questions against

which to measure achievement of its implementation. Annexure 1 provides additional insights gathered

through the review in response to each of these questions.

2.3. Key learnings of the first MSP

Seven key learnings were identified from the MSP1:

Strategic Positioning

It is acknowledged by stakeholders that the MSP1 was a step in the right direction, mainly

because it clarified the scarce skills focus areas. Interviewees shared the view that the MSP1

was not sufficiently strategic in nature. This has had the effect of not providing a guiding

framework for stakeholders to use to synchronise activities in the skills space and to guide their

organisational direction. The MSP2 must therefore strive to operate on a more strategic level,

in a way that creates a framework that coordinates and synchronises the activities of all key


stakeholders in the skills space. It must also be inclusive of national, provincial and sector

strategies.

Limited usefulness

Interviewees shared the view that the MSP1 was of limited practical use in shaping

implementation within and across organisations. They noted that the Implementation Plan was

too broad and responsibilities were not clear as to which organisation takes responsibility for

what action, which resulted in stakeholders not considering the MSP1 when developing their

own skills strategies. Although there was a revision of the Implementation Plan for FY13/14

and FY14/15, it was also not clear who would perform what activity.

The MSP1 identified 39 priority skills areas as the biggest critical skills gaps on which to focus

capacity building efforts. Targets were set for the number of people to be skilled annually over

the period so that the demand for skills could be met (shown below).

Table 1: MSP1 – Priority Skills Targets

However, the Implementation Plan did not define the beneficiaries, nor did it clarify which

stakeholders are accountable for providing skills transfer, how many they are committed to

producing or the mechanism to be used (bursaries, skills programmes, learnerships, work

placements or other mechanisms used to transfer skill). Interviewees indicated that the plan

was informed by the needs across the country, rather than by Gauteng’s specific needs. The

MSP also did not align to the South African Organising Framework for Occupations (OFO)

codes, which is necessary for targeted skills development.

Sectoral coverage

While the four pillars of the MSP1 do include state and non-state sectors, general consensus

is that the plan did not sufficiently create a framework for province-wide skills development. It

did not align the development of skills with the public sector (from national to provincial to local

level) and between the public and private sector and sub-sectors. The Cities and Municipalities

were also not coordinating skills requirements with the province or each other.

Key Forums driving the MSP1

A rationalised institutional framework was not in place that was clear on representation, roles

and functions in terms of skills development in the Gauteng City Region. There were no Forums

that measured implementation progress and kept organisations accountable. The PSDF was

only established in 2014. Although it was legislatively mandated, with a Terms of Reference,

it has had a dual launch but has created no traction and is poorly perceived. There is no clear

relationship between the PSDF and other provincial Advisory Forums and there are insufficient

Executing Forums in place to drive the MSP focus areas.

Insufficient buy-in, consultation and advocacy

The MSP1 did not pass through structures such as the Executive Committee (EXCO) and the

Premier’s Coordination Forum, hence the leadership of the province was insufficiently engaged

and were not held accountable to meeting the MSP1 objectives. There was also insufficient


consultation to ensure key inputs from stakeholders in the skills space and to obtain

commitment by stakeholder groupings at the onset of the MSP1. In addition, there was not

sufficient advocacy to create awareness of the MSP1 and its objectives.

Interviewees indicated that the MSP1 did not clarify the roles of stakeholders – key to

successful implementation is an understanding of the roles of all stakeholders towards meeting

the MSP objectives. No interviewee could indicate an institution, department or resource other

than the GCRA whose work has been fundamentally guided by the MSP1.

Political / legislative priorities

Priorities changed with new political mandates, creating a misalignment of targets set in 2010

and implementation achievements reached by 2015. The MSP1 did not include a methodology

to prioritise and re-prioritise projects to ensure alignment to revised national and provincial

priorities over the five years. Hence, the MSP1 did not remain relevant. There is a need to

align skills development to long-term strategic plans rather than political term of office.

Institutional mandate of the MSP

There was concern amongst interviewees regarding who ‘owns’ and ‘drives’ the MSP2 and

where it should be housed institutionally. The GCRA was not functioning optimally during

implementation of the MSP1. The stability of the GCRA as the Coordinating Agency was

questioned, given the turnaround in Chief Executive Officers (CEOs), changes in organisational

focus and insufficient capacity.

The placement of the GCRA as a department within the GDE may have diluted its ability to

effect province-wide skills development. There is consensus that the MSP2 should be a key

strategic driver of the proposed new strategic direction of the GCRA, through which it aims to

become the driver of skills development across the Gauteng City Region, from the Premier

down to in the public sector and across all key economic sub-sectors in the private sector.

Because skills development is transversal and touches across all sectors, almost all

stakeholders recommended that the GCRA be placed under the Office of the Premier (OOP)

and working closely with DED to ensure no duplication.

It was recommended that as a Coordinating Agency, the GCRA will need to be focused on

results and be actively engaged with stakeholders if it is to drive the objectives of the MSP2.

2.4. Justification for an MSP2 and implications of MSP1 learnings for MSP2

Based on learnings from the MSP1 and MSP2 is justified for the following reasons:

There is currently no GCR framework to guide skills development across sectors and levels.

Stakeholders are working in silos, not being aware of duplicated efforts and not being able to

maximize spend and skills development through a coordinated efforts. There is a need to

minimise duplication.

A consolidated framework is needed that will coordinate and synchronise activities related to

skills development, as well as coordinate the actions of public and private stakeholders..

The skills landscape has complex institutional arrangements. There is limited acknowledged

success of forums/bodies that demonstrate effective outcomes.

There is failure of quality skills development delivery across the skills development value chain.

There is need for clarification of stakeholder roles and functions in the skills space and to

formalise processes to create targets and accountability.


All Stakeholders engaged on the MSP are keen to strengthen coordination efforts and work

with less structures that are more focused on producing skills results.

There is currently little clarity on how skills needs translated into priority projects to ensure

successful implementation. A methodical process is needed to the MSP strategy so that it

remains relevant by aligning to long-term national and provincial strategic plans rather than

being guided by political terms of office.

The MSP2 should consider the following to ensure that it turns learnings from the MSP1 into successes

as an outcome of implementing the MSP from 2015 to 2020:

Obtain buy-in at the highest level (the Premier, Members of Executive Council (MECs) and

Heads of Departments (HODs) with an Agency that has authority to drive MSP objectives.

MSP must give direction, align to provincial skills needs and address them.

Be inclusive of all levels of public sector and all sub-sectors of private sector.

Track progress for skills development in a consolidated way across the province (obtain a

clear view of combined effort of private and public sectors towards reaching provincial needs).

Use sound, structured methodology to clarify and communicate priorities to be driven.

Ensure commitment to real engagement, consultation and co-development of specific

objectives, targets and actions – ensure these are inculcated into stakeholder plans and

operationalised at ground level. All role-players need to mobilise to address priority skills

needs.

Have structured stakeholder consultation and validation: a single place for discussion,

development and coordination of skills.

Simplify institutional arrangements for the GCR - reiterate and strengthen core functions of

institutions.

Specify targets in skills development terms (Critical & scarce skills aligned to OFO codes &

occupations and NQF/Sub Quality Framework levels).

Define a logical structured and coordinated institutional landscape for GCR skills planning,

development, implementation, monitoring and review. Clarify representation, roles and

functions of structures (forums and working groups).

Reposition PSDF as the GCR Skills Forum (GSF) to rebrand it to function as the supreme

body for engagement, development, ratification and coordination of GCR skills needs. Formally

and structurally (re)establish, implement, resource and drive it.

Extensive consultation across levels (political leadership at all levels to citizens) to ensure

buy-in and advocacy to ensure continuous commitment.

Reposition the GCRA: Currently the institution is not achieving its set mandate. Its core

mandate is not clear with role confusion between ‘strategic skills oversight’ and ‘academy’.

Explore placement of GCRA under OOP as skills strategist and custodian of the MSP

(research, develop, guide implementation, M&E).

Align the provincial budget to address key skills needs to developmental programme needs.


3. Setting the context for the MSP2 framework

The Master Skills Plan 2 (MSP2) must respond to the economic realities of South Africa generally, and

the Gauteng City Region (GCR) in particular. It must also develop a skills platform that responds directly

to the development plans for the GCR. In order to do this, the MSP2 must be founded on a clear

understanding of the role that the GCR plays in international, sub-regional and local economies, as well

as in the cascade of national, provincial and local development plans and frameworks. This section

constructs the case for the skills priorities that the MSP2 must focus on, based on these considerations.

3.1. Relationship between economic growth, development and employment

The MSP2 is premised on the clear causal relationship between economic growth and employment.

Generally, employment demand increase in response to economic growth. However, depending on

conditions in different economies and economic sectors, the relationship between employment and

economic growth may not be directly correlated due to changes in technology and productivity.

Contrary to the commonly held view, government cannot create employment except through direct

employment in the public sector. Employment is only created through the growth in economic activity.

Government’s role in employment creation is therefore limited to the extent to which it achieves the

following conditions:

First, creating the framework and conditions for economic growth, which as a

consequence of economic growth businesses will generally demand higher levels of

employment;

Second, public investments in infrastructure development that will provide a base for future

economic growth (notably, infrastructure that has a direct impact on stimulating economic

activity such as roads, ports and ITC networks); and

Third, understanding the skills value chain and supporting and guiding the development of

required skills to fuel economic growth.

The first and second conditions are beyond the sphere of influence of the MSP2 (and are covered in

the Gauteng Department of Economic Development’s (GDED) draft Economic Development Plan (2015

to 2020). Notwithstanding this, the relationship between these two conditions as critical stimulants of

employment creation and the demand for skills must be clearly understood for the formulation of the

MSP. However, the third condition is the key role of the MSP2: - to assess and set out the skills

required to support and fuel the development and economic growth trajectory of the GCR.

3.2. Economic context

Skills are a necessary condition for economic growth. However, in most cases, skills are not a

sufficient condition to fuel economic growth. Further, it is important to clearly understand the relationship

between international, national and GCR-level economic conditions if the MSP2 is to support the

economic growth plans of the GCR.


3.2.1. International economic competitiveness

The GCR is the major economic hub in South Africa and plays a pivotal role in Sub-Saharan Africa.

The Gauteng economy contributes 35% to South Africa’s Gross Domestic Product (GDP) and 7.7% to

Africa’s GDP. The economy has grown from R379 billion in 1995 to about R1 trillion in 2014 and is

projected to double to R2 trillion by 2030 (GDE, 2-15: Draft GEDP).

The GCR remains the single most important economic zone on the African continent. However, the

South African and the GCR economy is consistently losing ground to other sub-regional economies and

economic centres, most notably Nigeria and the East African Community. South Africa’s economic

growth was ranked ninth (9) out of 17 African countries in 2015 (Trade Economics, 2015), and is ranked

56th in terms of economic competitiveness out of 144 economies surveyed across the world (World

Economic Forum, 2014-2015).

While there are many interrelated reasons for the relative decline in the GCR’s economic

competitiveness and low economic growth rates, the relatively low productivity and low skills levels

of South Africa’s workforce are primary contributing factors. These must be addressed boldly and

directly by the MSP2 if the GCR is to meet its economic potential.

3.2.2. GCR economic considerations

While the establishment and development of the GCR was based on its mineral resources, its economic

fundamentals have radically changed over the last 30 years. In order for the MSP2 to develop a skills

strategy that meets the demands for skills in the GCR, a clear understanding of its economy and the

economies of its metropolitan areas is required. Figure 3 illustrates the overall composition of the

GCR’s economy, with respect to Gross Value Add (GVA) and Employment per Sector in 2014. The

figure shows the relative scale of key economic sectors in the GCR generally.

Figure 3: Gross Value Add (GVA) per Sector in the GCR (2013)

-R20 000 R30 000 R80 000 R130 000 R180 000

TH: Finance, insurance, real estate and businessservices

SC: Manufacturing

TJ: General government

TF: Wholesale and retail trade, catering andaccommodation

TG: Transport, storage and communication

SE: Construction

TI: Community, social and personal services

SD: Electricity, gas and water

PB: Mining and quarrying

PA: Agriculture, forestry and fishing

Gross Value Add (R-Million)

SIC

Eco

no

mic

Secto

rs

Ekurhuleni Johannesburg Metsweding Sedibeng Tshwane West Rand


From Figure 3 it can be ascertained that the GCR’s total GVA of R630-bn in 2013 is dominated by the

Finance, Insurance, Real Estate and Business Services (27,3% of GVA); Manufacturing (19,1% of

GVA); General Government Employment (17,5% of GVA); Wholesale and Retail Trade, Catering and

Accommodation (14,5% of GVA); as well as Transport (9,4% of GVA). Primary sectors are very small

(Mining: 1,8% of GVA, Agriculture and Forestry: 0,4% of GVA), with Community, Social and Personal

Services and Construction each comprising 4,1% of GVA and electricity, gas and water comprising

1,9%.

Figure 4 demonstrates the GCR’s GVA per municipality. The graph clearly portrays the dominance of

three areas, namely Johannesburg, Tshwane and Ekurhuleni. In relation to the predominant economic

sectors in each region, Johannesburg’s largest sector is Finance, Insurance, Real Estate and Business

Services, Tshwane is dominated by Finance, Insurance and Real Estate as well as General

Government (roughly equal in scale), and Ekurhuleni is dominated by manufacturing. While the

provincial Transformation, Modernisation and Re-Industrialisation (TMR) strategies conform to these

focus economic clusters, it is also important to note relative sizes of sectors and the need to focus on

economic sectors that have the greatest potential to create employment. For instance, while

Johannesburg’s manufacturing sector is a relatively small component of its economic composition, this

sector is roughly similar in output to manufacturing in Ekurhuleni.

Figure 4: Gross Value Add (GVA) Per Municipality in the GCR (2013)

R0

R50 000

R100 000

R150 000

R200 000

R250 000

Gro

ss V

alu

e A

dd (

R-M

illio

ns)

PA: Agriculture, forestry andfishing

PB: Mining and quarrying

SD: Electricity, gas and water

TI: Community, social andpersonal services

SE: Construction

TG: Transport, storage andcommunication

TF: Wholesale and retail trade,catering and accommodation

TJ: General government

SC: Manufacturing

TH: Finance, insurance, realestate and business services


Figure 5 exemplifies the relative growth of employment across key economic sectors in the GCR

between 1995 and 2013 based on real economic data. This figure shows the dominance of four

economic sectors, namely Wholesale and Retail; Community, Social and Personal Services; Finance,

Insurance and Real Estate and General Government. However, also striking is the very slow growth of

manufacturing over this 25 year period, in comparison to other sectors. Further, the extremely small

contributions of primary sector activity are notable (Agriculture, Forestry & Fishing and Mining &

Quarrying).

Figure 6 illustrates the projected growth in employment across these sectors between 2015 and 2020.

This clearly shows that the bulk of new employment is projected to originate from the following sectors

(in order of magnitude): Wholesale & Retail; Finance, Insurance & Real Estate; General Government;

Construction; and Transport, Storage and Communications.

3.2.3. GCR Full Time versus Part Time Employment

It must be noted that these employment projections are based on assumptions made regarding the

functioning of each economic sub-sector, given its historical growth trajectory and assumptions made

regarding its likely future growth, labour productivity and likely changes in employment and skills

intensity.

These scenarios therefore do not include jobs created through direct government-sponsored job

creation programmes, such as those envisaged through Tshepo 500,000, and like the Expanded Public

Works Programme and Community Works Programme in the past. These are mostly part-time

employment positions comprising a set number of work-days per week, and mostly do not lead to any

sustained, full-time employment. Therefore, these part-time, public sector-sponsored job opportunities

should be separately considered.


Figure 5: Relative Size and Growth of Economic Sectors in the GCR (1995 to 2020)


Figure 6: Projected Size and Growth of Economic Sectors in the GCR (2014 to 2020)


Figure 7 shows the skills mix of the GCR economy between 1995 and 2013 and projected forward to

2020. It is notable that formally employed semi- and unskilled job numbers have stayed roughly static

over the last 20 years, while skilled, highly skilled and informal jobs have risen substantially, along with

a consistent rise in highly skilled employment.

Figure 7: Changes in Skills Profile of the GCR Workforce (2014 to 2020)

It is also important to note the diverse skills profiles between different economic sectors. Figure 7

illustrates the skills profiles for four sectors in the GCR, as well as how these have changed since 1995

and how they are projected to change between 2015 and 2020. Notable features include the high level

of informal employment in Wholesale & Retail (grey area), the increasing skills profile over time for

manufacturing and the highly skilled nature of employment in the Government sector (as shown in

Figure 8).


Figure 8: Projected Growth & Skills Profile of Three GCR Economic Sectors (2014 to 2020)


Based on the above analysis, critical features of the GCR economy from a skills perspective are outlined

below.

Key Economic Sectors: Gauteng’s total GVA of R630-bn in 2013 is dominated by the Finance,

Insurance, Real Estate and Business Services; and Manufacturing; General Government;

Wholesale & Retail Trade, Catering, as well as the Transport sectors. Primary sectors are small

(Mining, Agriculture and Forestry), with Community, Social and Personal Services and

Construction each comprising a small portion of GVA.

Historical Sectoral Growth: Past growth patterns create a platform for assessing potential

future sectoral growth in the GCR. Sectors that have grown strongly in the past and are

projected to continue to grow into the foreseeable future are the Wholesale & Retail Trade,

Catering and Accommodation; Community, Social and Personal Services; General

Government Employment; Construction; Finance, Insurance and Real Estate and Business

Services.

Prioritised Economic Sectors: The GCR Economic Development Plan (GDE, 2015)

prioritises eleven economic sectors for specific targeted intervention over the next five years.

These are Food and Beverages, Furniture and Timber; Clothing, Footwear, Textile and Leather;

Pharmaceuticals, Plastics and Chemicals; Machinery and Equipment; Construction, Building

Material and Real Estate; Automotive and Components; Mining and Mineral Beneficiation;

Finance and Retail; ICT; and Tourism and Creative Industry (crafts, music and film). The MSP2

must take cognisance of these in its skills strategy planning. This will assist to drive the

economic development goals of the province, namely a modern, diverse, inclusive and more

equal economy that drives employment creation.

Significant City Differences: The economies of each municipal area in the GCR differ vastly

in scale, as well as in sectoral composition, historical growth trajectory and productivity levels.

Therefore, nuanced skills development strategies are required that support the economic

advantages in each municipality.

Variable Skills Composition: Different economic sectors have highly variable skills profiles,

implying that growth in these sectors will result in different demand for skills of different types.

Increasing Skills Intensiveness: The GCR’s economy is becoming progressively less labour

intensive and more skills intensive, which is contrary to the ever-increasing supply of relatively

poorly skilled people entering the employment market. Between 1995 and 2014, the number

of unskilled and semi-skilled jobs remained generally static. This is a critical failing of South

Africa’s education system generally, that is exacerbated given the relatively higher skills base

of the GCR’s economy.

Skills Polarisation: The consequence of greater skills intensity and the increasing pool of low-

skilled labour is creating a polarisation of the workforce between skilled and highly skilled

employees and ever increasing numbers of informally employed people.

Unemployment and Under-Employment: The inevitable outcome of a mismatch between a

low demand for skills and the available supply, results in an increased rate of unemployment.

The GCR has a high rate of unemployment and has witnessed a significant increase in

unemployment between 2008 and 2015 (StatsSA, 2015). Making inroads into this increasing

unemployment remains a key challenge facing the GCR 21 years after democracy.

3.3. The ‘Development Cascade’

The MSP2 must be grounded in the cascade of development frameworks and plans at a national,

provincial (GCR) and city level. The figure below illustrates this ‘Development Cascade’ of plans in

South Africa and how they guide and influence the levels of plan below them, while simultaneously

creating the context for understanding skills priorities at each level.


Figure 8: GCR Skills ‘Development Cascade’

The sections below elaborate on the strategies, plans and priorities at a National, Provincial and

Municipal level.

3.3.1. National Development Plan (NDP)

The National Development Plan (NDP) sets out a broad economic and developmental plan for South

Africa up to 2030, based on a comprehensive review of the status quo.

The NDP calls for a paradigm shift in South Africa’s economic development. Specifically, this requires

the nation to clearly establish the conditions for growth, to identify the opportunities on which growth

can be built, as well as the development of capabilities to convert these opportunities into economic

growth and employment. This, in turn, will drive poverty reduction and raise living standards.

Critical to this is effective government, strong leadership and active citizenry. The MSP’s core function

must be to drive the development of capabilities, and that such capabilities should be focused on

building effective government, strong leadership and ensuring active engagement of all partners

in skills development in the GCR.

A further priority set by the NDP is the need to develop the necessary skills to employ 11-million people

by 2030. This implies that the MSP2 must focus on developing employable skills in areas of real

economic potential. In addition, the acknowledgement that 70% of new jobs are projected to arise

from the Small Medium and Micro Enterprise (SMME) sector, implies that the onus is on the MSP2 to

drive the development and growth of the SMME sector.

The NDP also identifies the need, as far as possible, to identify the best kind of employment to absorb

work seekers. It is worthwhile considering the following:

Highly skilled employment is noted to be good for economic growth, but not for employment

creation;


Public schemes are good for creating short-term job opportunities, but not for long-term growth;

Labour-intensive employment is good for growth, and good for employment where it can

compete with mechanised workplaces; and

Government employment is considered bad for both jobs and economic growth, given that

government employment is funded via taxation revenues and does not directly result from

increased economic activity as is the case in the private sector.

Figure 8: NDP Strategic Thrusts

In order to achieve its overall goal of prosperity and

equity for all, nine strategic thrusts are identified in

the NDP: Create Jobs; Expand Infrastructure; Use

Resources Properly; Inclusive Planning; Quality

Education; Quality Healthcare; Build a Capable State;

Fight Corruption and Unite the Nation. While all nine

thrusts have relevance for the MSP2 GCR Skills

Strategy (GSS), the following core and secondary

focus areas are identified that can be directly

influenced by the MSP2:

Core NDP Focus Areas for the MSP2:

o Build a Capable State: Radically

transforming the operation and

effectiveness of the public service at

Provincial and Municipal level.

o Quality Education: Driving radically

improved quality outcomes from all steps

in the GCR’s Skills Development Value

Chain.

Secondary NDP Focus Areas for the MSP2:

o Inclusive Planning: Ensuring that skills planning is linked to economic and development

planning and that all key stakeholders are included in skills planning;

o Expand Infrastructure: Driving the conversion of large infrastructure budgets into

implemented infrastructure frameworks to support economic growth.

3.3.2. Industrial Policy Action Plan (IPAP)

The Department of Trade and Industry’s (the DTI) Industrial Policy Action Plan (IPAP 2014 to 2016)

outlines an action plan to drive domestic demand fulfilment, to create competitive exports, in order to

drive growth and employment. Its objectives are to diversify the economy beyond traditional

commodities and non-tradable services, to intensify industrialisation, to promote a more labour-

absorbing industrial path, greater Broad-Based Black Economic Empowerment (B-BBEE) participation

in industry, and contributing to industrial development in Africa.

These will be achieved using a range of levers, including overall economic policy, improved

procurement arrangements improved industrial financing, better developmental trade policy, attention

to competition policy, improved regulation of intellectual property, and innovation and technology.


3.3.3. Strategic Infrastructure Projects (SIPs)

Linked to the massive infrastructure investment identified in the NDP, the Strategic Infrastructure

Projects (SIPs) set out nineteen large-scale infrastructure investment projects across South Africa that

are intended to drive employment and create a platform for future economic growth. Of the nineteen

SIPs identified, eleven have a direct footprint in the GCR:

SIP2: Durban-Free State - Gauteng logistics and industrial Corridor

SIP6: Integrated municipal infrastructure project

SIP7: Integrated urban space and public transport programme

SIP9: Green energy in support of the South African economy

SIP9: Electricity Generation in support of socio-economic development

SIP10: Electricity Transmission and distribution for all

SIP11: Agri-logistics and rural infrastructure

SIP12: Revitalisation of public hospitals and other health facilities

SIP14: Higher education infrastructure

SIP15: Expanding access to communication technology

SIP16: Bulk water supply and distribution

Skills for implementing these projects will be significant, and the Department of Higher Education and

Training (DHET) has developed a detailed skills projection approach, based on a 21-step process to

enable the planning process for SIP skills requirements. The process of defining a methodology for

skills development for the MSP2 has taken note of the extensive knowledge developed during this

process and has used this to develop a proposed Embedded Skills Development Methodology for the

MSP2.

Alignment between these two methodologies will be critical, given the importance of the GCR economy

to overall SIP implementation.

3.3.4. GCR Transformation, Modernisation and Reindustrialisation (TMR) Strategy

The development vision for the GCR is encapsulated in the Transformation, Modernisation and Re-

Industrialisation (TMR) strategy launched by the new Premier in 2014. The vision of the TMR is “An

integrated City-Region, characterised by social cohesion and economic inclusion, the leading economy

on the continent, underpinned by sustainable socio-economic development.”


Figure 9: GCR Transformation, Modernisation and

Reindustrialisation (TMR) Strategy

The TMR sets out ten Pillars

(four Transformations, four

Modernisations and two Re-

Industrialisations) that will drive

the future growth trajectory of the

GCR (State of the Province

Address, 2014). The Ten Pillars

have been allocated to specific

Government Clusters to oversee

their implementation. Pillars

entrusted to the Economic

Cluster are highlighted in blue,

the Social Cluster in green, and

the Governance Cluster in red.

To operationalise the Ten Pillars, specific Development Corridors have been identified across the

GCR. The aim of Development Corridors is to Reconfigure Gauteng’s Space Economy; Ensure a

balanced approach towards growth and development across the five corridors; Derive greatest benefit

from local comparative advantages; Allow for more focused interventions that will be specific to the

needs of a particular corridor; and Reduce destructive competition, add-value as well as advance

competitive advantages (Office of the Premier, 2015).

The five Development Corridors each addressing a major City / Municipal Region in the TMR, are

outlined as follows:

The Central Corridor (City of Johannesburg): Focuses on Banking, Finance, Information

Technology and Biotechnology.

The Northern Corridor (City of Tshwane): Focuses on Tshwane’s role as administrative and

diplomatic capital of South Africa, and drives development of the Manufacturing sector,

specifically through motor manufacturing.

The Eastern Corridor (Ekurhuleni): Focuses on a resurgence in manufacturing activity through

re-industrialisation.

The Western Corridor (West Rand): Focuses on the benefits accruing from the tourism sector,

based around Lanseria Airport.

The Southern Corridor (Sedibeng): Focuses on the competitive advantages brought about by

the water and water-based tourism economy.

In addition to the Development Corridors, the TMR identifies a range of catalytic ‘Game Changer’

Projects. Numerous Game Changer projects are identified and more are in the pipeline. These include,

for instance, the development of the OR Tambo ‘Aerotropolis’, the development of other ‘dry ports’ and

freight modal interchanges, large-scale urban development projects (such as Steyn city and the

Lanseria new city), extensions to the Gautrain network, and water- and tourism-based developments

in the Sedibeng area. Such projects are intended to create real activity to support the focus areas in

each Development Corridor. Game Changers should enable the following:

Promote development throughout the GCR;


Be catalytic with a ripple effect and have potential to take the GCR to a higher level or trajectory

of growth and development;

Have a major infrastructure component in the project content;

Support radical spatial, social and economic transformation across the GCR;

Be based on multi-year inter-governmental and inter-departmental collaboration and

cooperation and in partnership with the private sector;

Promote and support economic development and job creation, leading to improved service

delivery, the entrenching of good governance, deepening of democracy and strengthening of

partnerships; and

Encourage innovative approaches to funding, including crowding in private sector investment.

Unlike the NDP, the skills requirements to support the TMR are not explicitly stated. Therefore the

onus is on the MSP2 to align its skills requirements Pillars, at a Provincial level, to the five

Corridors and the Game Changers by means of an explicit skills strategy to support the TMR’s

vision.

3.3.5. GCR Economic Development Plan (GEDP)

There are a range of other key development plans that have been developed in order to move the GCR

towards a better economic trajectory.

The DED has been developing the GCR Economic Development Plan (GEDP) in parallel with the

development of the MSP. This plan is premised on developing a GCR economy reflective of successful

City-Regions, namely: Strong visionary leadership; Strong institutions and strong economic

juggernauts; Connectivity / mobility; A spatial coalition of partners working together for a common vision;

Advanced skills and human capital; A knowledge intensive economy; and a High labour absorption rate

and robust economic growth.

The GEDP projects a 4% growth rate (against the NDP’s 5,4% target) for the GCR between 2015 and

2020, based on achieving employment targets through the GCR’s Corridor Development programme

and sector and industry-specific interventions, supported by other growth plans. These interventions

are deemed sufficient to create a fiscal shock of R70-billion per annum, which in turn will induce

employment of nearly 2,0-million jobs (and moderate unemployment to 20,6%), slow down poverty

creep and slow down the worsening of the Gini coefficient.

It is noted that the baseline modelling used for the EDP and the MSP have different methodologies and

departure points. The MSP modelling derives skills demand from projected economic output in

Gauteng’s key economic sectors, based on the imputed and assumed changes in productivity of

employment in each sub-sector. In contrast the EDP develops its economic projections premised on

labour share as the driver of growth through aggregate demand. Given these two different approaches,

a level of difference in results achieved is inevitable. A further difference is that the MSP modelling

derived projections at an economic sector level in each municipality and aggregated this, whereas the

EDP modelled sectoral outcomes at the provincial level. Notwithstanding the above, there is a level of

comparability between the economic growth projections from both models. Both project an economic

growth target reaching around 4% by 2020 (EDP: 2020 Target of 4%; MSP: 2020 Target of 3.7%,

average growth 2,9%.

Various engagements have been held between the DED and the GCRA / GDE to ensure the two

strategies align as far as possible. In addition to this, the two models have key points of similarity:


Both modelling outcomes consider the negative impact that current exogenous conditions play

on dampening economic growth potential in the GCR.

Both acknowledge the importance of understanding the growth of existing and new businesses

as a critical condition for employment creation and therefore labour absorption.

Both models consider the importance of infrastructure investments as a catalyst to economic

growth, both via expenditure on the infrastructure, as well as due to the eventual economic use

of such infrastructure.

Both economic growth forecasts are also premised on the GCR achieving certain key ‘Goldilocks

conditions’ during the next six years in order to meet their growth projections. That is, they are

premised on these conditions being fully achieved, in the short term. These include:

The radical transformation of the public sector, in order that it plays a much better facilitative

role in economic development

Large and sustained programmes of public sector investment in economic and social

infrastructure, both in new infrastructure creation and the maintenance, rehabilitation and

replacement of existing infrastructure.

A ramp-up in Public-Private Partnerships that rapidly secure joint investments in large-scale

infrastructure projects, and sustain this investment to 2020 and beyond.

Significantly changed conditions that facilitate and stimulate the growth of existing and new

SMMEs that (as per the NDP) are projected to create 70% of new employment.

There are however differences in the projected employment by 2020 emanating from both

models. While the MSP model projects an increase of 1,09-million additional employment

opportunities between 2015 and 2020, the EDP starts with an assumed figure of 2.0-million. The

following reasons explain this disparity:

The (albeit relatively small) differences in economic growth projections influences ultimate

employment projections reached in the MSP, versus the employment targets in the EDP.

The EDP includes the projected 500 000 additional public employment "job opportunities” to be

created by the Tshepo 500 000 programme. These figures, currently, are not included in the

MSP’s core calculations, and have been included as a separate projected figure. This inflates

EDP assumed employment figures by up to 500 000, depending on the ultimate success of the

Tshepo 500,000 programme.

The MSP calculation is based on Full Time Employment (FTE), whereas the EDP includes “job

opportunities” for a portion of the projected employment, which would account for up to 250

000 additional jobs.

While both employment growth projections include assumptions relating to employee productivity, the

MSP’s finer-grain projections based at a municipal, sectoral level does influence employment

outcomes, especially in sectors projected to be more skills-intensive (and less labour-intensive) into the

future.


3.3.6. Other GCR Economic and Development Plans and Strategies

The following sub-plans contribute to the economic vision outlined in the GEDP. The Gauteng

Township Revitalisation Strategy, which aims to ensure that township economies contribute at least

30% to the GCR’s economy. This will be achieved by ensuring appropriate regulatory and legal

frameworks; promoting manufacturing and productive activities; economic infrastructure support;

promoting entrepreneurship; financing and investing in township economies; Promoting access to

markets; promoting innovation and indigenous knowledge systems; and establishing the social and

economic value of the township economies.

The Gauteng Informal Business Upliftment Strategy aims to integrate informal businesses into all

sectors of the economy. This will be achieved via financial and non-financial support; economic

infrastructure facilities; law enforcement and proper monitoring; and supporting informal township trade.

The Economic and Industrial Plans for West Rand and Sedibeng aim to overcome the spatial and

economic disparities of these lagging areas in relation to the GCR. This will take the form of focused

investment in sectors offering comparative and competitive advantages in these regions. This will also

be driven by corridor development programmes in these areas.

The Gauteng Trade and Investment Strategy aims to enhance Gauteng’s status as an investment

destination, and to grow trade with other regions in line with bilateral and other trade agreements. Four

programmes will drive this: A comprehensive export development strategy; an investment support

programme; an Africa Focus programme, and an Investment Aftercare Programme.

From an infrastructure perspective, two key strategies are relevant. Firstly, the GCR Integrated

Infrastructure Masterplan (GIIMP), and secondly the GCR 25-year Transport Master Plan (GTMP).

These plans define the status quo in relation to transport, network infrastructure and social

infrastructure, and set the spatial vision for the GCR in relation to where and how massive infrastructure

expenditure will occur.

3.4. Municipal development drivers

Each City and Municipality in the GCR has its own growth and development plans and frameworks1.

Common elements of these municipal spatial and economic development frameworks that are relevant

from a skills perspective are outlined below:

Improved Governance: This theme supports the NDP’s ‘Build a Capable State’ strategy;

Regionally-Specific Economic Growth Sectors: economic growth is based on facilitating the

growth of specific, value-adding economic sectors in that region;

Township Regeneration: Programmes aimed at stimulating township economies;

Spatial Restructuring: Concerted efforts to overcome inherited Apartheid spatial form;

Infrastructure Development: Implementation of massive infrastructure projects, with a new

focus on maintenance and management of existing infrastructure networks; and

1 It is beyond the ambit of this document to outline these in detail.


Employment Creation: Implementing mass, government-driven employment schemes such

as the Extended Public Works Programme (EPWP), Community Works Programme (CWP) and

the Tshepo 500 000 programme (specifically aimed at youth, women and people with

disabilities).

3.5. Identifying skills priority areas in the GCR

In order to align the MSP2 with the ‘Development Cascade,’ it is necessary to interpret the skills

priorities required to support the GCR’s TMR strategy, whilst simultaneously considering the NDP’s

requirements, as well as the specific plans of each City in the GCR.

Figure 10 provides a Skills Matrix that analyses the relationship, from a skills development perspective,

between the nine NDP focus areas and the TMR’s Ten Pillars. Key skills requirements at each

intersection are then highlighted. The table shows that the four key focus areas from the NDP are

broadly applicable across the Ten Pillars, but that it is not possible for the MSP2 to identify or resolve

all skills needs in the GCR. A targeted approach is therefore required.

3.6. Implications of the contextual reality for the MSP2

A number of key opportunities and challenges are identified that must be dealt with in the MSP2. Key

challenges to be addressed by the MSP2 include:

Overcoming the serious structural problems in the GCR’s skills environment, most notably low

productivity and low skills levels, the MSP2 must intervene boldly and decisively;

Developing skills that meet the progressively less labour-intensive and more skills-intensive nature

of the GCR economy;

The MSP2 must identify and prepare for the development of ‘new economy’ skills that are required

to produce a step-change in the GCR economy;

The MSP2 must create the environment for economic growth in the GCR, through a radical

transformation of the role of, and productivity in the public sector; and

In order to ensure South Africa’s skills value chain produces skills that will fuel the growth of the

GCR economy, there must be a clear focus on improving the quality of educational and skills

outcomes. In addition, there must be a focus on producing skills that are in demand in the economy

and to develop higher levels of entrepreneurial activity in the economy.


Figure 10: Interpreting Skills Requirements from the NDP and TMR Strategies P

rovin

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SIP11 SIP2; 6; 9; 10; 15; 16

SIP9 SIP7; 11 SIP14 SIP12 SIP16

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Fight Corruption

Unite the Region

3. Accelerated Social Transformation

Jobs & SMMEs

Water & Sanitation

- Social Dev Skills

Excellent Education

Quality Healthcare

CapableState

FightCorruption

-

2. Decisive Spatial Transformation

- HumanSettlement

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Physical Plng Skill

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- -

4. Transformation ofState & Governance

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6. Modernization of the Economy

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S 9. Reindustrialize Gauteng Province

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- -

10. Lead Africa’s New Indus Rev.

Jobs & SMMEs

Expand Infrastruct

- Regional Eco/ Infra

Strategic Planning

- - - Unite The Region

KEY: Economic Cluster = BlueSocial Cluster = Green

Governance Cluster = Red

KEY: Primary MSP2 FocusSecondary MSP2 Focus


In relation to the development of the MSP2, the following must be considered:

Developing skills requires a long-term perspective, and therefore must be informed by long-term

economic planning;

South Africa, the GCR and each Metro’s economic circumstances must be understood as a

prerequisite for defining skills requirements;

There are a clear set of development objectives at a national, provincial and municipal level that

the GCR Skills Strategy must interpret and incorporate in order to support and achieve those

strategic objectives as part of its implementation;

National, provincial and local development as well as economic growth frameworks, cannot be

successful without the required skills to implement them;

A skills strategy for the GCR cannot expect to achieve all skills needs, and must therefore prioritise

areas of intervention that will achieve maximum impact at a GCR level;

Skills planning must be undertaken with the full participation of public and private sectors if it is to

fully articulate the needs and ensure it sets the correct priorities.

3.7. Four Pillars of skills priority for the MSP2

The MSP2 identifies four Skills Priority Pillars that will structure and focus its relationship to the skills

needs of the National Development Plan (NDP), Transformation, Modernisation and Re-

Industrialisation (TMR) and City strategies. These are:

Figure 11: MSP2 – Skills Priorities

for the Gauteng Skills Strategy

Skills for a Radically Transformed Public Sector: All development

frameworks agree that the public sector requires a radical shift in the form

and content of service delivery, in order to drive a true developmental state

that supports and encourages economic growth. This pillar of the MSP is

identified as having the most significant potential to bring about a radically

transformed GCR.

Skills for Growing the Economy: Skills required to drive regional and

provincial economic growth (and specifically the lack of scarce skills

currently limiting economic competitiveness) and competitive advantages

must be created, as well as the development of and support for increased

entrepreneurial activity.

Skills for Infrastructure Implementation and Maintenance: Massive

infrastructure investments are central to economic strategy and must be

supported by ensuring skills are available within government and the private

sector to convert money to implemented projects. Furthermore, the urgent

need to better manage and maintain existing infrastructure must also

become a provincial skills priority.

Skills through Learning and Work Opportunities: The many and varied

government-supported employment creation and skills transfer

programmes and projects must be refocused towards the real needs of the

GCR. These programmes and projects must ensure that employable skills

are developed by beneficiaries.


Through focusing on these four priority Skills Pillars, the MSP2 will have maximum impact on other

development objectives as well, such as employment creation and accelerated social transformation

(with a focus on education, healthcare, poverty and social development challenges and community

safety).


4. Second Master Skills Plan (2015 to 2020)

The Second Master Skills Plan (MSP2) builds on the First Master Skills Plan (MSP1). However, the

analysis of the first Master Skills Plan (MSP1) and the current South African skills environment identifies

key issues that must be resolved if the new Master Skills Plan is to be successfully implemented.

Hence, the MSP2 is developed on the premise that a document on its own will not succeed, however

good it is. How the MSP is embedded in the Gauteng City Region’s (GCR’s) institutional framework

and high-level planning processes is critical. In addition, it is necessary to streamline and improve

functioning of skills bodies for GCR that currently do not create a solid platform for researching,

discussing and developing skills strategy. Consequently, MSP2 is based on five pillars, only one of

which directly develops the future skills strategy for the GCR.

This chapter presents the mission, objectives and principles of the new Master Skills Plan 2015 to 2020.

It then sets out the six elements that provide structure to the MSP2, and explores these in more detail.

4.1. Mission, objectives and principles of MSP2

4.1.1. Mission of MSP2

The MSP2 responds to the Transformation, Modernisation and Re-industrialisation (TMR)

mandate of propelling Gauteng to a higher growth trajectory through developing the framework for

identifying and developing the skills required for the GCR to fuel its development and economic

growth trajectory.

The mission of the MSP is therefore to be the coordinating instrument whose value is

driven by mobilising key public and private stakeholders who contribute towards skills

development and economic growth and development of the province.

The MSP reflects stakeholders’ collaborative agreements on priorities and programmes that

respond to the skills demands of the GCR, across the skills development value chain. Based on this,

stakeholders take accountability for specified targets and agreements on how often and in what

format regular updates are provided. Updates feed into a Gauteng skills development dashboard

(a centralised monitoring platform) which tracks stakeholders achievements against skills outcomes

achieved in order to support economic growth and development targets set for the GCR between 2015

and 2020.

4.1.2. Objectives of MSP2

The MSP2 aims to achieve the following seven objectives:

1) A Universal Gauteng City Region Skills Strategy: A GCR Skills Strategy is collaboratively

developed and agreed whereby the MSP2 identifies and responds to the skills needs of

the NDP and TMR and prioritises the focus areas that will propel the GCR to a higher economic

growth trajectory, in relation to the ‘development cascade’, across the skills value chain.


2) Coordination across the Skills Value Chain: The MSP2 is the coordinating instrument

that mobilises key public and private stakeholders that contribute towards skills development

and economic growth and development of the province. The platform to ensure mobilisation of

stakeholders is the combination of a rationalised GCR Institutional Skills Landscape which

clarifies advisory and executing forums and their functions, along with a high-level

implementation plan.

3) Role Clarity and Accountability: National, provincial and local stakeholders clarify their

roles in skills development in the GCR, and take accountability for specified targets that

support overall GCR skills requirements. Each stakeholder is responsible for developing an

operational plan that aligns to the high-level implementation plan.

4) Record of Agreements and Partnerships: The MSP2 reflects stakeholders’ collaborative

agreements on priorities and programmes that respond to the skills demands of the province

across the skills development value chain.

5) Regular Skills Strategy Updates: Stakeholders agree on how often and in what format

regular updates are provided.

6) Data and Information Hub: Skills achievements are collated in a GCR skills development

dashboard (a centralised platform), and are analysed and synthesised in a format that

dynamically monitors skills achievements.

7) Monitoring & Evaluation: Achievements are recorded and regularly communicated

against skills development and economic growth and development targets set for the GCR from

2015 – 2020. Monitoring and evaluation is built into the regular revision of the skills strategy for

the GCR.

Each objective is translated into specific targets and indicators as part of each annual high-level

implementation plan to ensure their continual focus across stakeholders.

4.1.3. Principles of MSP2

Figure 12: MSP2 – ‘4E’

Principles Framework

Three key principles govern MSP2:

1) The MSP2 is not a document – it is a process whereby

stakeholders identify and execute skills programmes based on a

systematic, logical agreed-upon GCR methodology. Annual

review, revision, rationalisation and reprioritisation ensures that

the MSP remains current and relevant in the light of rapidly

changing needs.

2) The MSP2’s success is measured by the ‘4E’ Framework, which

refers to outcomes of measurement that are aligned to:

Excellence: Quality in terms of radically transformed public

service delivery and educational outcomes, that leads to…

Employability: By ensuring workplace-ready skills (creating

skilled entrepreneurs); augmented by…

Entrepreneurship: Focusing on creating next-generation

businesses that will create sustained employment growth; that

together drive…

Economic growth in the GCR.

Excellence

Employability

Entrepreneurship

Economic Growth

TMR Outcome


3) The MSP2 takes its lead from national and provincial strategies, as well as advisory and

forums and executive (implementation) structures. The MSP has implementation ability

at a cross-sectoral, strategic level through relevant eexecuting committees where public and

private sector stakeholders actively identify and resolve blockages, and drive programmes that

ensure development of occupations and sectors that fuel economic growth.

4.1.4. GCR priority skills pillars

Based on the ‘4E’ Framework, the assessment of the ‘Development Cascade’ and the supply and

demand modelling for the MSP2, four Priority Skills Pillars are identified that must structure the outcome

of the MSP2. These are:

Pillar 1: Skills for a radically transformed Public Sector. Radical transformation of the

operation and improved effectiveness of the Public Sector has the greatest potential to radically

transform overall economic activity in the GCR.

Pillar 2: Skills for Growing the GCR Economy. Based on the principles of employability and

entrepreneurship driving the GCR economy in the future, MSP2 must identify and produce

excellent skills required for the economy to meet its growth potential.

Pillar 3: Skills for Infrastructure Maintenance and Implementation. South Africa’s national

and provincial growth plans include massive infrastructure implementation as a foundation for

economic growth. The massive shortfalls in maintenance of existing, rapidly degrading

infrastructure networks also require improved and increased skills in the GCR.

Pillar 4: Skills through Learning / Work Opportunities. Significant resources continue to be

spent on public works projects such as the EPWP, CWP and the newly-proposed GCR Tshepo

500 000. The MSP2 must optimise the focus of these programmes on developing employable

skills and entrepreneurship that offer opportunities for sustained economic growth.

Figure 13: MSP2- Relationship between ‘4E’ Framework and Skills Priorities


4.2. Six elements of MSP2

The MSP2 is structured around six elements that are critical for the successful development,

implementation, monitoring and review of a GCR Skills Strategy. These six elements are illustrated in

Figure 14 below.

Figure 14: MSP2- Six Structuring Elements

Elements 1 to 3 relate to the placement and exercising of skills planning powers, the placement of

functions, institutional structures for skills development and the definition of a clear skills development

process for the GCR.

Element 1: A Rationalised institutional skills landscape for Gauteng. This will ensure that

the development of skills strategies for the GCR happens at the right level and that forums

through which all public and private organisations contribute to skills development are simple,

streamlined and effective.

Element 2: Clarified Implementation Capacity for Skills in Gauteng. This element

proposes that roles and responsibilities in provincial skills strategy development and

implementation must be clear and that there should only be one consultative forum (with

executive capacity) through which all key role players participate in the development of a

provincial skills plan.

Element 3: An Embedded Skills Development Planning Methodology for Gauteng. This

element proposes a clearly defined method through which the skills strategy for Gauteng is

developed, tested and adapted annually, along with clear points in the process where

stakeholders can provide input.

Element 4 is the dynamically developed Master Skills Plan 2 for the GCR, known as the GCR Skills

Strategy (GSS) that is developed through Elements 1, 2 and 3.

Rationalised GCR Institutional Skills Landscape

Embedded GCR Skills Development Methodology

Clarified GCR Skills Implementation Capacity

GCR Skills Strategy Baseline (GSS)

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industry changes and skills outcomes from all actors. This element proposes that, having

implemented Elements 1, 2 and 3, a single provincial skills strategy is developed that sets the

skills priorities for the province. This strategy guides the actions of all skills implementers, but

is reviewed annually to ensure it reflects changes in skills supply and demand.

Elements 5 and 6 relate to the implementation of, and constant monitoring and evaluation of the

GCR skills strategy and its outcomes, through Element 3’s Embedded Skills Development Methodology

so that the MSP2 remains current and relevant.

Element 5: A Clear Monitoring and Evaluation Framework for Skills Outcomes. This

element proposes all skills role players contribute to the collation and analysis of skills data on

a provincial basis, in order that statutory information is available on progress towards provincial

skills targets.

Element 6: Clear Implementation Plan for MSP2. This element sets out a high-level

implementation process for Elements 1, 2 and 3, as well as the implementation procedure for

Element 4 (Provincial Skills Strategy).

Key aspects relating to each Element of MSP2 are outlined in the following sections.

4.2.1. Element 1: Rationalised GCR institutional skills landscape

Skills planning is an integral part of, and must flow directly from the GCR’s economic and spatial

planning process. It is important that the skills strategy for the GCR is developed in close relationship

with overall development and economic planning undertaken for the province. Plans to grow the

economy can only succeed if backed by skills required to implement those plans. Further, a

misalignment of skills and development plans will impede economic growth prospects by creating skills

surpluses and shortfalls that undermine employability and waste limited skills development resources.

This implies that the Office of the Premier (OOP), in association with the Provincial Planning and

Governance Cluster, should be the ultimate custodian of GCR skills planning. This requires a

move in the skills planning and implementation function from its current custodian, the Department of

Education (DOE), to the Planning function located in the OOP, reporting ultimately to the Office of the

Premier. The Gauteng Department of Education (GDE), the Department of Economic Development

(GDED) and the Department of Infrastructure Development (GDID) are the most important provincial

public entities supporting skills planning and implementation.

The Institutional Skills Landscape must ensure alignment across Public National, Provincial and

City stakeholders to provide streamlined implementation of the MSP2. This implies links to the Human

Resource Development Council of Southern Africa (HRDCSA) at a national level, and the creation of a

provincial skills structure that echoes the HRDCSA’s functions, yet provides executive capacity for skills

development and implementation at the GCR level. It must further allow for inclusive Public-Private

consultation so that all sectoral stakeholders engaged in economic growth and skills development are

afforded a platform to which they can present and resolve challenges and blockages relating to skills

development in the province. In addition, the Institutional Skills Landscape must create opportunities

for innovation.


A single Consultative Structure for Skills planning and implementation is proposed for the GCR. It is

recommended that the current Provincial Skills Development Forum (PSDF)2 be re-constituted,

restructured, capacitated and adequately resourced to become the GCR Skills Forum (GSF). The GSF

must be representative of National, provincial and local government; organised Business, Organised

Labour, Educational Agencies (Academia, Public sector and independent voices of associates), Local

Government, SETAs, Quality Councils & Professional Bodies and Civil Society, Non-Profit

Organisations (NPOs), Non-Governmental Organisations (NGOs), Faith-Based Organisation (FBOs)

and Community-Based Organisations (CBOs).

A proposed structure for the GCR Skills Forum (GSF) is illustrated in Figure 15, and discussed in more

detail below.

Figure 15: MSP2 – Proposed Institutional Framework for Skills in the GCR

2 The Provincial Skills Development Forum (PSDF) was launched during 2014, but has not realised its potential

as the skills forum for the GCR. The PSDF is mandated in the National Skills Act, and its current Terms of

Reference covers much of the requirements for the new GSF (refer to Annexure 6). The Forum is newly formed

(two meetings have been held) and it is at a point where sub-committees must be established. The only existing

sub-committee is the GPG HRD Steering Committee, which meets every second month and is regarded as

functional. It is recommended that other sub-committees are set up to meet objectives of the MSP 2015 to 2020.

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The GSF should have a plenary committee to be known as the Premier’s Skills Partnership (PSP),

chaired by the Premier3. This will be the ultimate structure at which decisions are taken for ratification

by principals. Under the PSP, a GCR Skills Planning and Implementation Committee (GSPIC) must

be constituted. This committee will comprise representatives from all Sub-Committees of the GSF, and

will be responsible for overseeing the development and implementation of the GCR Skills Strategy. This

body will be the key driver of the revision of the GSS annually, based on information and intelligence

provided by, and support from the GCRA, and using systems implemented by the GCRA for the GSF,

in association with DHET.

Under the GSPIC, the Provincial advisory body for skills, echoing the HRDCSA at the national level,

should be placed. This will be the GCR Human Resources Development Council (GHDC), an

advisory structure providing recommendations to the GSPIC, for ultimate ratification by the PSP for final

approval by the Provincial Executive and Premier.

The GSF should comprise a set of Sub-Forums and Committees representing the key education and

skills sub-sectors in Gauteng’s Skills Value Chain. These could be existing, working skills structures,

re-constituted or new sub-committees. Initially, these sub-committees are proposed to comprise the

following, but these can be adapted as required by the partners to the GSF – it is also recommended 4that governance structures include strategic alignment between all sub structures:

An Early Childhood Development and Pre-Natal Support Sub-Committee, to consult on and

develop strategy related to furthering the rollout of the Gauteng Province’s ECD programme as

well as to provide a forum for creating synergy between the various public sector departments

engaged in ECD, namely the Department of Social Development (DSD), the Department of

Education (DOE) and the Department of Health (DOH) at the provincial level and the

Department of Basic Education (DBE) at a national level.

A Basic and General Education Committee, covering basic education and general education

up to Grade 12. This should include participation from all public and private stakeholders

engaged in delivery of and improvement of basic education.

A Technical Education Committee, covering technical schools and TVET colleges, as well

as aspects relating to the training of Artisans. A key task of this team will be to coordinate,

develop and implement arrangements related to TVET colleges in Gauteng, and to strengthen

the role of technical schools in the province. This includes working with DHET to identify and

implement Centres of Specialisation in TVET colleges.

A Higher Education Committee covering Universities and Universities of Technology,

possibly incorporating the current Deans’ Forum in operation in Gauteng.

A Workplace Training Sub-Committee, to consider coordination of key skills development

interventions such as Recognition of Prior Learning (RPL), experiential training and other

vocational learning facilitated within the workplace via Mandatory, PIVOTAL and Discretionary

grant funding from the SETAs.

A Community College, CBO and NPO Committee, that focuses on the development and

implementation of an appropriate Community College model for Gauteng, as well as on the

coordination of publicly supported skills initiatives across the province, as envisaged in Tshepo

500,000. This must focus on coordinating and improving the outcomes from Community Works

Programme (CWP), Expanded Public Works Programme (EPWP) and other basic skills

initiatives, through the coordinative structures envisaged for the Tshepo 500,000 programme.

3 Note that the PSP is outlined in the Terms of Reference for the PSDF.

4 DHET has noted that it received a particularly poor response from colleges in the GCR when it called for Volunteer Centres of Specialisation,

albeit that this came with the potential of monetary and other support for implementation.


The Public Service HRD Forum, which is currently in operation, comprising representatives

from the fourteen provincial government departments and HRD representatives from each

Municipality or Metro in the GCR. This must deal with the needs for the radical transformation

of skills within the provincial and local public sector departments. Other, as deemed necessary

by the GSF Plenary.

In addition to the above Committees, the GSF must provide for the establishment of cross-cutting,

thematic Skills Priority Working Groups, in order that skills priorities identified for the GCR are

strategically developed and implemented across the above Committees. Again, these Working Groups

may be constituted as required, but it is proposed that there should at least be the following to start, in

line with the skills priorities identified for the GCR:

A Skills Value Chain Integration Working Group, that must oversee and ensure that the

linkages and gaps between steps in the GCR’s skills value chain are addressed by all other

committees from a strategic perspective.

A Working Group for the Radical Transformation of the Public Sector, aimed at addressing

the TMR’s focus on transforming the state machinery from a skills perspective, in a holistic way

for Provincial and Municipal levels.

A Skills through Learning and Work Opportunities Working Group, specifically aimed at

coordinating and improving work-based opportunities for TVET students and Artisans in

training.

A Working Group addressing Skills for Growing the Economy, Infrastructure

Implementation and Management. The focus of this Working Group is to ensure that critical

skills requirements are clarified, escalated and included in overall skills planning processes,

and to ensure capacity to implement and manage the GCR’s proposed massive infrastructure

spend.

A Careers Guidance Working Group, which must articulate careers guidance needs for the

GCR, and coordinate disparate careers guidance programmes and initiatives across the GCR.

While focused on creating a pipeline of good students from schools into scarce skills areas, this

should also offer opportunities for existing employed and unemployed graduates to access

opportunities. A core focus will be to better link learner and student data to the needs in the

economy.

Other thematic Working Groups, as deemed necessary. It is likely, for instance, that the

development of Entrepreneurism in the GCR may require an overarching Working Group in

order to deal with all bottlenecks and opportunities in the Skills Value Chain in a coordinated

manner.

Furthermore, a systematic review of all existing skills-related forums in the GCR is recommended

to ensure a single skills forum structure with sub-committees or sub-forums representing sectoral

interests. This must identify well-structured and operating forums, in order to align them within the new

single GSF structure. Forums or committees that are deemed ineffective must improve their operation,

or be subject to dissolution where these continue to not meet their mandate.

National public partners to the GCR’s skills planning processes are the national Department of

Education (DoE), the Department of Higher Education and Training (DHET) and the Department of

Labour (DOL), and are viewed as key stakeholders in GCR skills planning and economic development.

All fourteen provincial departments should be represented through the Human Resource

Development Committee (HRD Committee), which should be constituted as the public sector

subcommittee of the GSF. Further, a Public Sector Skills Sub-committee, related to the existing

Premier’s Coordinating Forum (PCF) should drive mutually beneficial skills requirements between

provincial and local government.


As the coordinating consultative skills Forum for the GCR, the functions of the GSF must include:

Collection, collation, analysis and interpretation of skills datasets;

Research and development related to GCR skills requirements, including consultation,

ratification and adjustment of the GCR Skills Strategy;

Managing inputs from the diverse interest groups and representative groupings relevant to skills

development in Gauteng;

Overseeing the development and approval of the GCR Skills Strategy;

Identifying, creating and implementing formal partnerships aimed at developing skills required

in the GCR to meet the targets of the GSS;

Accounting for high level skills development and implementation performance in the GCR;

Offering advice to the Premier on skills-related issues; and

Monitoring and evaluating skills development outcomes in the GCR.

4.2.2. Element 2: Clarified skills implementation capacity

Coordinated skills implementation capacity in the Gauteng City Region (GCR) is critical to ensure the

success of the MSP2. Important skills implementation considerations are outlined below.

GCR Skills Planning Support Function: Element 1 establishes the Office of the Premier (OOP) as

the ultimate point of contact for the provincial skills planning function. The GSF provides this direct

linkage to the OOP and its planning function, with the Gauteng Department of Education (GDE),

Department of Economic Development (DED) and Department of Infrastructure Development (DID) as

key partners in this process. However, it is noted that the OOP planning function, along with the

mandated research entity, the Gauteng City Region Observatory (GCRO), do not have the necessary

capacity and expertise to undertake provincial skills planning functions. This therefore requires a

dedicated institutional capacity to support the GSF.

GCR Skills Forum (GSF): The GSF, with its Plenary (Premier’s Skills Partnership) chaired by the

Premier, is responsible for consultation, ratification and adjustment of the GSS. Members of the GSF

must be clear on their role and contribution with their individual performance agreements being aligned.

GCR Executive Skills Authority: In order to successfully fulfil the roles required of it in relation to

provincial skills planning, the GSF will require a dedicated executive capacity to support it. It is

proposed that a realigned, renamed, restructured and re-capacitated Gauteng City Region

Academy (GCRA) reporting directly to the OOP should play this role.

Given this strategic role change, it is proposed that the GCRA should consider a name change to reflect

this, such as the Gauteng City Region Skills Authority (GSA). In its new role, the GSA would not act

as a training or service provider as the GCRA does currently. This will ensure that permanent capacity

exists in the GCR to drive the planning and development, implementation, monitoring and regular

review of the GCR’s skills strategy, and that the skills strategy closely aligns with provincial plans. This

will require the GCRA to perform at a more strategic rather than operational / implementation level.

Further it would be necessary to ensure the GCRA has sufficient influence and in-house skills to

undertake key roles of information collation and analysis, research and development, partnership

development and monitoring as well as the development and management of the GCR Skills Strategy.


The GCRA therefore becomes the strategic implementing agency that ensures effective

implementation of the six MSP elements within the 4E Framework, on behalf of the PSF. The GCRA’s

core mandate should be revised to ensure its ability to influence and direct the development,

implementation and monitoring and evaluation of the skills strategy for the province. The GCRA will

need to be financed accordingly as well as have availability of a budget to ensure successful

implementation of the GSS every year. This will also entail that the GCRA mandate will need to be

reviewed as the proposed role no longer accommodates the GCRA’s current role as a training provider.

Implementing Partners: All public and private skills bodies and organisations contributing to skills

development in Gauteng should be represented on the GSF. This will ensure that their principals are

bound to align their skills strategies with the overall GCG Skills Strategy. They are obligated to report

back on progress in relation to the implementation of the Gauteng Skills Strategy (GSS) to the GSF via

the GCRA’s systems and by means of incorporating GSS outcomes in line with their core mandate, to

their Annual Performance Plans. It is recommended furthermore that in order to ensure an effective,

strategic and streamlined forum, extraordinary organisational design elements need to be applied to its

architecture and governance structure. Key Implementing Partners will form part of executory

committees that report back to the GSF quarterly on progress. Capacity to ensure effective

implementation must be considered for implementing bodies, with a budget aligned to prioritised needs

of the province.

4.2.3. Element 3: Embedded GCR skills development methodology

The principles of the MSP2 indicate that skills planning cannot be a static process. It must constantly

adapt to changes in demand for, and supply of skills. Therefore, if the GCR is to consistently develop a

defensible, regularly updated and empirically-backed GCR Skills Strategy, it is necessary to define a

consistent approach, or methodology, for its development and review. Further, this consistent

methodology must be embedded in the institutions that oversee, develop, implement and monitor

and review skills in the GCR in order to ensure consistency and to provide the platform for strategic

skills planning and implementation to improve annually.

An Embedded GCR Skills Development Methodology has been outlined that is:

Logical, structured and systematic: The methodology provides a step-by-step guideline to

stakeholders, asks the critical questions and provides a process whereby stakeholders provide

answers to these questions. The methodology is applied through a continuous feedback cycle

to guide the province’s overall planning cycle that clarifies skills priorities, plans processes for

proactive skills development, implements and monitors, reviews and revises provincial skills

needs. The benefit of the methodology is that it ensures that planning takes place early in order

to prioritise projects and actions aligned to skills needed to grow economies. These priorities

become embedded in the next year’s Implementation Plan.

Embedded and Institutionalised: The methodology is agreed by the MSP2 stakeholders. It

is adopted as the process followed by agencies and structures in relation to their roles for skills

development in the provincial skills development value chain. It requires acknowledgement in

sub-sector planning and requires feedback via statutory reporting. The process informs

decision making at critical points.

A continuous feedback cycle: The Skills Planning Methodology is repeated periodically

(annually) and is revised where required, to become increasingly accurate and effective over

time.


Clear Contact Points and Accountability: The Skills Planning methodology also links

stakeholders to specific roles and functions. Further, this approach ensures that skills plans

are linked to implementing institutions’ outcomes to structure accountability.

A four-step skills planning methodology has been developed for the GCR. This is based on the

experience of the Department of Higher Education and Training (DHET), through its Strategic Integrated

Project (SIP) Skills Planning approach. Each of the steps are premised by critical skills-related

questions, with sub-steps that guide the implementation process, which results in an approval and sign-

off process before commencement of a subsequent step.

The following illustrates the Embedded Skills Development Methodology:

Figure 16: MSP2 – Skills Development Methodology


A key component of Step 3 is to identify provincial Centres of Specialisation for delivery of needed

skills, working in collaboration with DHET. Due to the high cost of upgrading facilities and upskilling

staff to tackle specialist areas required by the GCR economy, it is necessary to focus these in specific

facilities. A proposed Priority Occupation Package grant system, using SETA and NSF funds, is likely

to be applied to assisting to fund the Centres of Specialisation upgrades.

Further, to facilitate the provincial skills planning methodology and approach, DHET proposes that a

formal Memorandum of Understanding be signed between DHET and the Gauteng Provincial

Government that sets out the respective obligations and supports to be offered by national and

provincial entities. Given that DHET’s responsibilities include the national mandate for all colleges,

universities, SETAs and (shortly) community colleges, this MoU will provide important clarity on roles,

obligations and resources in the skills planning, funding and implementation processes. A copy of the

standard MoU is included in Annexure 9.

4.2.4. Element 4: GCR Skills Strategy (GSS) baseline

Element 3 of the MSP2 develops a skills development methodology for the GCR, in place of a single

documented and static skills plan for the next six years. The GCR Skills Strategy (GSS) developed

in this Element documents outputs from the Embedded Skills Development Methodology,

including learnings and best practices. The GSS presents the GCR’s cross-sectoral skills priorities,

based on national and provincial strategies and specific analysis of the GCR’s skills supply and demand

profile. It identifies skills needs to support provincial and local development strategies.

The GCR Skills Strategy (GSS) considers the long-term skills development trajectory required to

support the needs of the GCR (towards 2030). The GSS is integrally linked to national and

provincial development Priorities. It must identify and drive skills needs required to implement the

priorities identified through the ‘development cascade’ and then develop the skills baseline for the next

six years as a supporting strategy to the provincial Transformation, Modernisation and Re-

Industrialisation (TMR) strategy.


A skills forecasting model has been developed that analyses and models the demand for skills, based

on historical economic data that is projected into the future to ascertain likely skills demands in different

economic sub-sectors. Data on skills supply is then collated from various sources, including primary

and secondary schooling, TVET, university and university of technology data as well as SETA data.

This supply data is then matched to the demand data, in order to ascertain skills gaps at a general

(sectoral) level, as well as at a finer-grained (occupation) level5.

From this background information, a medium-term (six year) GCR skills strategy baseline is

developed for the GCR. This baseline will be revised annually to ensure that it takes into account

changes in the skills demand, supply and impacts of skills programmes implemented. GSS accuracy

and inputs from stakeholders improves as iterations are completed annually through implementation

of the Embedded Skills Development Methodology. In doing so, it illustrates the credibility of data and

modelling of skills supply and demand in the GCR. The GSS1 (FY15/16) is presented as part of the

draft MSP process document (it is considered a commencement plan). The GSS2 (FY16/17) should

include updated baseline data and clear targets based on priorities identified by the OOP, and inclusion

of currently unavailable data. GSS2 will be developed from the GSS1 baseline, using the specified

methodology in Element 3.

The GSS is not intended to be a detailed skills plan for every skills implementing agent in the

GCR, but rather to be a general strategy from which skills implementers can take direction, in order to

ensure their strategies and implementation programmes support the overall provincial skills strategy.

The GSS therefore includes a high-level Implementation Plan only. It is the responsibility of

implementing agents to operationalise the GSS. It is incumbent on all skills implementers to align with

the GSS, as well as to ensure two-way information flows to improve the accuracy of the GSS supply

and demand data over time. Therefore, Provincial and municipal skills planning, sector strategic skills

plans (SETAs) and plans of Universities, Universities of Technology and other training providers should

be based around requirements identified in the GSS.

The GSS is Inseparable from Institutional Arrangements. Therefore, the GSS will only achieve its

purpose if it is closely related to a revised consultative structure (OOP and GSF) and GCR-wide

implementation body (revised GCRA), who strategically guides and drives consultation, definition and

implementation skills priorities in the GCR. In this way, shortcomings in the existing plan (such as the

lack of certain source data and limited consultative processes) can be addressed in later plan iterations.

4.2.5. Element 5: Clear monitoring and evaluation (M&E) framework

In order to ensure that the GSS is properly implemented, a clear Monitoring and Evaluation (M&E)

framework will be implemented. Key components of this framework include the following:

5 It is noted that DHET has already commenced the development of prototype systems, and will also shortly be undertaking further

systems development. It will be critical for the GCR’s skills planning systems to be aligned with, and where feasible inter-operable

with data sources used prototype that is available now on the Portal https://sip-skills.onlinecf.net. It is proposed that systems

developed for the GCR GSS must be compatible with, or even share components of the national system. DHET is in the process of

issuing a tender for further development of the national system. A national forecasting tool that has been professionally developed for

the DHET is also available for use by provinces.

https://sip-skills.onlinecf.net/


Clear Monitoring Framework: Monitoring must assess coverage as well as real impact of

programmes and entrenched (statutory) reporting must ensure outcomes (quantitative and

qualitative) can be adequately measured. This includes procedures for how the GSS and the

implementing agents’ plans that are implemented are articulated across different levels of

reporting e.g. the National Development Plan (NDP), Provincial Skills Strategy (PSS), SETA

Sector Skills Plan (SSPs) and Annual Performance Plans (APPs).

Data Repository: Sources of defensible skills data will be used to build a solid data platform

that can be used to model both supply-side and demand-side skills information. Data collation,

analysis, modelling and interpretation will be undertaken in order to inform skills modelling.

Reporting Framework: M&E information will be included in regular statutory reports. These

reports will be available to stakeholders, as well as to senior decision makers in order to assist

to guide skills implementation.

‘Skills Dashboard’: Information outputs from data and reporting will be assimilated to create

‘closed loop’ skills monitoring dashboard. This will provide uniform data to the skills sector in

the GCR, on which future modelling iterations will be based.

4.2.6. Element 6: High-level implementation plan (HIP)

A clear, high-level Implementation Framework required for all six elements of the MSP2, as well as for

the development, revisions of and implementation of the GSS. The following aspects must be

considered in the HIP:

Immediate Institutional Implementation Requirements: The first three elements (E1:

Rationalised Landscape; E2: Skills Implementation Capacity; E3: Skills Methodology) must be

implemented in the immediate term, as these changes form the institutional base for GSS

further development and implementation. These three will therefore form the focus of the short-

term implementation framework.

GCR Skills Strategy Implementation Plan: Preparations will be required to ensure that

available data sources are included in the assimilation and development of the first iteration of

the GSS. It is proposed that, given the initial institutional implementation requirements, the

outsourced capacity is used to develop the first GSS iteration, based on the modelling

framework already developed by the Deloitte team.

Monitoring and Evaluation Framework for Ongoing Implementation: Clearly defined M&E

framework and systems must be implemented in order to commence data capture, analysis

and production of skills information for GCR. Implementation evaluations should be considered

in the medium-term (two to five year projects) and impact evaluations should be conducted for

long-term projects (ten year projects).


5. Gauteng City Region Skills Strategy 1 (GSS1)

Element 4 of the second Master Skills Plan (MSP2’s) implementation framework is outlined in Section

Error! Reference source not found. This chapter outlines the rationale behind the development of

he Gauteng City Region Skills Strategy (2015 to 2020) and presents the Baseline Gauteng City Region

Skills Strategy (referred to as GSS1).

The aim of the GSS is to set out the high-level skills strategic framework for the GCR, against which all

skills implementers in the GCR will align their skills implementation programmes. This is based on the

following:

Focus: The GSS must focus on a limited number of skills areas that will create the maximum

potential for change in the Gauteng City Region (GCR) skills landscape.

Core Skills Areas: As a general rule, the GSS will not target core focus areas / areas of

responsibility of specific mandated departments and entities. It is deemed important that, while

many links in the GCR Skills Value Chain face serious difficulties, it is beyond the ambit of the

GSS to resolve all of these and this must remain the core focus of mandated departments and

implementing agencies.

Coordination and Gaps: A majority of the GSS skills focus areas relate to gaps in the Skills

Development Value Chain, or a lack of integration between links in the Skills Development

Value Chain.

It is important to note that in general, skills implementers (and specifically public sector bodies) have

already produced strategic and skills plans for the period 2015 to 2020 and detailed implementation

plans are set and being implemented for the 2015 to 2016 financial year. Therefore, it is most likely

that the GSS2 will have a greater impact and influence in FY16/17.

5.1. GSS development methodology, limitations and risks

The eleven-step skills planning methodology that is outlined in Chapter 1, section 1.3, has been applied

to the development of the MSP2‘s Gauteng City Region Skills Strategy (GSS) Baseline for 2015 to

2020. However, this methodology will be replaced by the Embedded Methodology for the development

of the GCR Skills Strategy outlined in Element 3 (refer to Section 4), once this is implemented.

It is noted that, given the relatively short time frame and limited resources available for this project,

certain limitations do exist with the GSS Baseline:

Baseline data for modelling: The modelling of the GCR’s skills demand and supply was

limited to some extent by what readily available.

Data and Information: There is no centralised repository for skills information in South Africa

at present. Therefore, significant effort has gone into identifying and collating the best possible

baseline data for skills in the GSS on which to model the skills supply, demand and gaps in the

GCR.


Time and Budget Constraints: Certain quality information sources that are potentially

available in the skills environment and that will add value to the future skills modelling for the

GCR could not be procured in time, or could not be obtained within the financial constraints of

this project. While reasonable alternative data has been used, it will be important to ensure

that those sources can be obtained and included in subsequent GSS modelling iterations

(specific data issues are outlined in the Annexures).

5.2. Modelling skills supply, skills demand and the skills gap in the GCR

A critical component of the GSS is to understand the supply and demand for skills in the GCR. The

modelling approach is outlined in Figure 18.

Figure 17: GCR Skills Model Overview

Outlined below are the outcomes from the following aspects of the modelling undertaken on the Skills

Value Chain for the GCR:

GCR Historical Economic and Skills Productivity Analysis (1995 to 2013): This is based

on analysis of the GCR’s economy over the last twenty years, including sectoral splits at a

municipal level of analysis (refer to Annexure 2 for a more complete description of the economic

analysis and future scenario projections.

GCR Skills Supply Analysis (2014 to 2020): An analysis of historical outputs from the Skills

Value Chain (Basic Education onwards) was used to project future skills production in the GCR

(refer to Annexure 3 for a more complete description).

GCR Economic and Skills Demand Projection (2014 to 2020): This historical data has been

used to project economic growth (Gross Value Add) over the next six years. From this, the

potential demand for skills to support economic growth projections, based on labour productivity

trends, was ascertained (refer to Annexure 4 for a more complete description of the skills

demand projections).


GCR Skills Gap Analysis: Based on the above, the model correlates demand data with supply

data in order to assess current skills gaps and surpluses at a sectoral and occupational level

(refer to Annexure 4 for a more complete description of the skills gap analysis).

5.2.1. GCR economic and skills productivity analysis and projection

A critical starting point for modelling the anticipated demand for skills in the GCR is to accept that, with

the exception of entrepreneurial skills (which are in any event very limited in the GCR), demand for

skills is derived from the demand for the goods and services they are required to produce.

Therefore, skills must align with the requirements of specific sub-sectors of the economy and must

adapt where and when this changes.

However, the volume and level of skills required by different economic sectors varies considerably.

Some sectors are relatively more skills intensive, with a higher proportion of workers highly skilled or

skilled. Others are relatively less skills intensive. There is also a dynamic element to this picture, as

generally, most sectors are becoming more skills intensive over time and there is increasing tendency

towards informalisation in many sectors. Figure 18 indicates the skills composition and level of informal

employment of different sectors of the Gauteng economy in 2013.

Figure 18: Skills composition and extent of informal employment of different sectors in

Gauteng in 2013

Source of basic data: Quantec Standardised Regional Database

0% 20% 40% 60% 80% 100%

Agriculture, forestry and fishing

Mining and quarrying

Food, beverages and tobacco

Textiles, clothing and leather goods

Wood, paper, publishing and printing

Petroleum products, chemicals, rubber and plastic

Other non-metal mineral products

Metals, metal products, machinery and equipment

Electrical machinery and apparatus

Radio, TV, instruments, watches and clocks

Transport equipment

Furniture and other manufacturing

Electricity

Water

Construction

Wholesale and retail trade

Catering and accommodation services

Transport and storage

Communication

Finance and insurance

Business services

Community, social and personal services

General government

Highly Skilled Formal

Skilled Formal

Unskilled Formal

Informal


In order to project future skills needs, historical sectoral growth trends, their related labour productivity

and resulting levels of employment are extrapolated into the future, based on assumptions relating to

overall economic growth scenarios, specific sectoral growth trajectories in each sector, per municipality.

Three growth scenarios are modelled. The “High Road” scenario is consistent with an average annual

growth rate of 4.3% and reaches a maximum of just over 6% in 2020. The “Middle Road” scenario

averages just under 3% a year, and the “Low Road” scenario averages only 1.6% a year – with the

growth rate falling to 1.2% in 2020. Under the “High Road” scenario, real GVA increases by around

35% between 2013 and 2020; under the “Middle Road” it increases by 22%; and under the “Low Road”

scenario it rises by only 11% over the period.

Analysing these scenarios, the “Middle Road” scenario was selected as the base case for the analysis,

with the proviso that reaching this target growth rate would only be possible if the GCR achieves its

economic stimulation and skills development targets to boost the economy from its current, more likely,

“Low Road” trajectory.

Changes in labour productivity then enable an estimate of future employment demand to be made.

Table 2 indicates the employment growth projected for Gauteng by the “Middle Road” model

disaggregated according to skills level and the formality of employment.

Table 2 shows that there is an increased skills intensity of formal employment, combined with relatively

strong growth in the number of informal employment opportunities. Overall, the number of highly skilled

formal employment opportunities is projected to increase by close to 150,000 by 2020 and the number

of skilled work opportunities by around 340,000. The number of unskilled employment opportunities

will grow at a relatively slower rate of around 2.9% a year between 2013 and 2020.

Table 2: Projected employment by skills and formality under the Middle Road scenario

Type of Employment Net Change Average Annual Growth: 2013 to 2020

Highly Skilled Formal 146 420 3.2%

Skilled Formal 340 289 3.1%

Unskilled Formal 241 806 2.9%

Informal 357 954 3.8%

Total 1 086 469 3.3%

Overall, under the selected “Middle Road” economic growth scenario, total employment opportunities

in Gauteng are projected to increase by close to 1.1 million from their current levels of around 4.3

million. This represents an average annual growth in total employment of around 3.3%.

The final step in the modelling of skills demand is to overlay an Organising Framework for Occupations

(OFO) profile of existing skills in each sector (obtained from SETA Sector Skills Plans) onto the numbers

in each broad category of skills determined in the previous step. Where necessary, these can be

adjusted to reflect skills for which there is currently a shortage. These OFO numbers then need to be

matched to appropriate qualifications offered by the various tertiary (and potentially secondary)

institutions. The annual change in the number of people with specific occupations will indicate the

number of additional qualifications demanded by the economy.

The economic model provides a forecast of skills demanded per SIC economic sector, per skills level

(Highly Skilled, Skilled and Semi / Unskilled), for the three scenarios. The scenarios, skills categories

and economic sectors are listed in Table 3 below.


Table 3: Economic Sectors in the Economic Model

Economic Sectors

Agriculture, Forestry and Fishing

Community, Social and Other Personal Services

Construction

Finance, Real Estate and Business Services

General Government

Manufacturing

Mining and Quarrying

Trade (Wholesale, Retail, Hotels and Restaurants)

Transport and Communications

The demand model selects a scenario and uses the output of the economic model (that is, the skills

demanded per economic sector, per skills category for the selected scenario) and uses these forecasts

as its inputs. These forecasts are then disaggregated into OFO groups and NQF levels.

An outline of the NQF levels is given in the Supply Analysis and the OFO groups are listed below:

Managers;

Professionals;

Technicians and Trades Workers;

Clerical and Administrative Workers;

Sales Workers;

Skilled Agricultural, Forestry, Fishery, Craft & Related Trades Workers;

Plant and Machine Operators and Assemblers;

Machinery Operators and Drivers;

Skilled Agricultural (Craft & Related Workers); and

Elementary Workers.

From the results obtained, it is evident that the greatest demand for skills is present within NQF level 6,

followed by NQF levels 1 and 2. The sectors indicating the greatest demand for skills are the

Community, Social and Other Personal Services sector, the General Government sector and the Trade

(Wholesale, Retail, Hotels and Restaurants) sector (refer to Annexure 2).

A negligible demand for skills within NQF levels 3, 4 and 5 is evident, while NQF level 6 presents a vast

demand for skills. This might be caused by an inappropriate disaggregation of skills demanded into the

NQF levels6.

6 At the time of writing this report, this could only be confirmed if data was directly attainable from SETAs, which would enable

the mappings to be independently assessed.


5.2.2. Modelling GCR skills supply

The varying levels of skills entering the open labour market were analysed by making use of linear

regression analysis. Results of the series of linear regressions used were projected forward for a six

or seven year period, depending on the volume of historical data sourced. This projection determined

the supply of skills in South Africa for the year 2020.

The supply analysis involved a detailed investigation, which aimed to assist in understanding the

movement of learners within the South African schooling system and within the Post-School Education

and Training (PSET) system.

The overall approach involved the use of transition percentages reflective of the rate at which learners

move through the education system. Mortality, dropout rates, migration and repeat rates of learners

were considered as dependent decrements in this analysis. Exit from the education system beyond a

Grade 9 qualification results in an individual with a progressively greater level of skill for the job market.

The further along the Skills Development Value Chain a person exits the system, the more valuable the

acquired skills are likely to be in the job market. While there will still be demand for semi-skilled

employment, the majority of economic growth is increasingly for skilled people.

Historical data for the period 2007 to 2014, depending on availability, was used in the analysis.

Adjustments to the data were made to ensure accuracy of the results and limit the effects of erosive

factors such as double counting. The data used to model and analyse learner movements in the school

system was taken from the Annual Day Ten Schools Survey. Data that was not available from the

Annual Day Ten Schools Survey was obtained from the South African School Administration and

Management System (SASAMS). In addition, PSET data was obtained from both publicly and privately

available resources (refer to Annexure 3 for more detail).

Explicit assumptions were made based on the availability of data7. Some of the key findings from the

Skills Supply Analysis are the following:

Investigations into the failure rate of learners indicated a staggering increase of learners failing

in 2007 to 2014. This failure rate is predicted to increase by 2020, should no remedial action

be implemented.

Projected results indicate a stable increase in National Qualifications Framework (NQF) level

4 qualifications and to a lesser extent an increase in NQF level 1 qualifications. A constant

number of individuals obtaining qualifications at a NQF levels 2 and 3 is predicted.

The total number of individuals predicted to qualify during the five year period (2015 to 2020)

is the highest by far for Business, Economics and Management Studies. A fairly large number

of skills are forecast within the Education, Engineering and Health Professions. Qualifications

with NQF level 4 are projected to be in vastly greater supply than all other Qualifications issued

in the province. Included in these NQF level 4 qualifications are learners who’s highest

qualification is Matric.

Scenario based investigation indicates that a 25% decrease in all fail rates at schools would

result in an increase of roughly 10% in the number of Grade 12 learners enrolled per year from

2015 to 2020.

7 A significant assumption underlying this analysis relates to the approach taken to account for unavailable databases by making

adjustments to publicly available data. This places risk on the reliability of the results, and it is important to bear in mind that the

results are based on appropriate estimates.


5.2.3. Matching skills supply and demand: The skills gap

The gap analysis is, in simple terms, determined by subtracting the total supply of skills from the total

skills in demand in the province. This does not address the issue of how the skills gap is distributed

within each economic sector. The grand total skills gap for the province may indicate a net over-supply

of skills when aggregated across all sectors. However, when this result is disaggregated, an oversupply

of skills may be found in some sectors, while a skills shortage may be found in other sectors. This

illustrates that the magnitude of each over-supply and under-supply of skills may cancel out when

aggregated across sectors.

In light of this, the approach underpinning the gap analysis attempts to disaggregate the skills gap as

far as possible in order to understand the distribution of the skills gap across economic sectors. The

more the skills gap is disaggregated, the greater the insight that can be gained from the analysis thereof.

Furthermore, this allows for a more practical strategy in terms of identifying precisely the areas in which

a shortage of skills exists. It is important to note that if the data is disaggregated to the extent that there

are too few observations in each sub-group, on average, this would result the loss of some statistical

credibility. For this study, because disaggregation was based on the skills gap per NQF level per sector,

statistical credibility was not compromised.

Due to the quality of the data sourced, which includes publicly available data, the furthest level of

disaggregation deemed appropriate for the skills gap was down to NQF level per sector, that is, the

number of skills per sector according to the NQF level of the skill. Such a disaggregation is present in

the demand side analysis but does not exist in the supply of skills results. Thus, a disaggregation of

the supply of skills must be conducted. This disaggregation serves to determine in which sector an

individual with a given skill will obtain employment. Since no data was attained, which indicates a

methodology for such a disaggregation, the method selected was based on a subjective ‘best estimate’

approach to enable comparison between demand and supply side data. The basis of this approach

can be illustrated by use of an example:

“Based on personal judgment, in which sector would we expect person A to work if he or

she has highest qualification B?” (Refer to Annexure 3 for further detail on this approach).

It must be noted that since the basis for the approach is subjective, it merely serves to indicate an

approximate view on the results. These results can only be improved with a set of data which objectively

addresses the question of which sectors each qualification is used in.

Some of the key findings from the Skills Gap Analysis are the following:

Following the subtraction of skills supplied from skills demanded as aggregated at an NQF

level, a vast over-supply of skills in NQF level 4 is observed. This over-supply includes

individuals whose highest qualification is Grade 12.

A significant demand for skills at NQF level 6 is observed. For all other cases, an over-supply

or negligible gap is observed.


The skills gap, aggregated at a sector level, indicates a net oversupply of skills in most sectors,

with a vast over-supply of skills in the Finance, Real Estate and Business Services sector. An

under-supply of skills is observed in the Trade (Wholesale, Retail, Hotels and Restaurants) and

Community, Social and Other Personal Services sectors. When disaggregating the results

further, an under-supply of skills is observed at certain NQF levels within a sector where a net

over-supply of skills exists across all NQF levels within the given sector. These disaggregated

results are shown in Table 4 where the red bars indicate an under-supply of skills per sector,

per NQF level while the blue bars indicate an over-supply of skills per sector, per NQF level.

For example, in the General Government Sector a net oversupply of skills is displayed, yet

there exists a clear undersupply of skills at NQF levels 6, 7, 9 and 10 in this sector.

Table 4: Skills Gap per Sector per NQF Level


5.3. GCR Skills Strategy: Key challenges

The skills demand and supply modelling, along with other analysis outlined above, has identified the

following key features of the GCR’s skills terrain:

High population growth and migration, including a net migration of skills from Gauteng, and a

net in-migration of less-skilled people;

High unemployment and Informal Sector growth, due to a lack of formal employment;

Low workforce productivity, rendering many economic sectors uncompetitive on an

international scale;

Very low SMME and entrepreneurial activity by world standards8, that limits the potential of

meeting employment targets intended to be created by SMMEs;

Weakening economic growth in the country, placing increased pressure on public sector growth

targets, as well as the decreased likelihood of meeting a ‘middle ground’ growth trajectory;

Poor skills outcomes (that is low quality skills) emanating from the Skills Development Value

Chain; and

Poor performance of the public sector, given its high and currently increasing employment

record, in relation to its potential output.

5.4. Defining priority skills focus areas for the GSS

Applying the GCR ‘4E’ framework to the four key Skills Priority Areas identified, yields an outline of the

core skills focus areas in relation to these areas. Figure 19 outlines these priorities in relation to the

Public and Private Sector generally and in relation to the ‘4E’ framework.

8 South Africa is ranked 43rd out of 189 economies (down from 37th in 2014) in the world in respect of the ease of doing business,

and 61st (down from 55th in 2014) with respect to the ease of starting a new business (World Bank “Doing Business”, cited in

News24, 14 July, 2015))).


Figure 19: MSP2 – Public and Private Priority Skills Focus Areas in the GCR

5.5. Strategic Focus Areas and Related Skills Programmes

The economic and skills modelling, as well as alignment of skills objectives in the ‘development

cascade’ identifies key skills gaps in the GCR. These gaps in turn become the six key focus areas for

skills development in the GCR.

Focus 1: Driving Government Transformation & Modernisation, as this has the greatest

potential to positively impact growth and service delivery.

Focus 2: Driving Entrepreneur Development to support the Transformation, Modernisation

and Re-Industrialisation (TMR), the Tourism Enterprise Partnership (TEP) and Gauteng City

Region (GCR) employment creation targets.

Focus 3: Driving Infrastructure Development & Management Skills, in order to support

massive investments in infrastructure in the GCR.

Focus 4: Driving Creation of Priority Economic Skills required to unleash economic growth

in the GCR.

Focus 5: Driving Core Education & Skills Development Excellence: The GSS focuses on

radically improving the quality of core education outcomes in the GCR through departments

and agencies mandated with key skills areas across the skills value chain.

Focus 6: Driving Artisan Development in the GCR, through fast-track implementation of

interventions envisaged by the DHET.


These focus areas define specific skills programmes that will form the core focus areas of the GSS

across each of the four skills priority pillars:

A. Skills for a radically transformed Public Sector (Provincial and Local

Government):

GCR 4E Government Transformation & Modernisation Skills

Development (G4E-GTMS):

This programme must focus on driving the development of strategic

planning skills focused on improving coordination within and between

departments, as well as across government (between national,

provincial and local government in the GCR).

GCR 4E Core Education Skills Development (G4E-CES):

This programme will focus on ensuring key mandated organisations are

assisted to radically improve quality of outcomes from the primary and

secondary schools system and that the GCR continues to extend its

Early Childhood Development (ECD) programme.

GCR 4E Career Development Programme (G4E-CDP):

This programme will consolidate disparate initiatives into a single,

coordinated career development approach for the GCR, in order to prepare

citizens/youth/learners for, and support them in, the world of work (employment/self-

employment).

B. Skills for growing the economy (GCR):

GCR 4E Priority Economic Skills Development (G4E-PESD):

This programme will coordinate, between all key implementing agents in the GCR, the best

alternatives for filling priority skills needs.

GCR 4E Entrepreneur Development (G4E-EDP):

This programme will implement a coherent approach to creating programmes to support the

development of entrepreneurship in the GCR. In addition, this programme will link together

disparate initiatives aiming to assist SMMEs to better access public sector tenders and

procurement processes.

GCR 4E Artisan Development (G4E-AD):

This programme will continue the recent provincial push to rapidly increase the output of

Artisans in the GCR and will coordinate job placements and work experience opportunities on

a provincial level.

C. Skills for Infrastructure implementation (GCR):

GCR 4E Infrastructure Development & Management Skills (G4E-IDS):

This programme will target the creation of key skills in government to grow competences to

develop partnerships around infrastructure delivery through Public Private Partnerships

(PPPs), as well as to sensitise key officials regarding large infrastructure procurement.


GCR 4E Infrastructure Repair and Maintenance Skills (G4E-IRM):

This programme will focus on developing and upgrading required infrastructure rehabilitation

and maintenance, specifically within municipalities.

D. Skills through learning / work opportunities (GCR):

GCR 4E Public Employment Initiatives Skills (G4E-PEIS).

This programme will aim to consolidate the focus of public employment initiatives (existing and

new, such as Tshepo 500 000) to ensure better, more employable outcomes for beneficiaries.

GCR 4E GEYODI Skills (G4E-GEYODI).

The final programme will create a specific framework for engaging with women, youth and

disabled individuals in learning skills and entering the workplace.

5.6. Applying MSP Strategic Programmes to the TMR focus areas in the GCR

Table 5 matches the GSS programmes to the specific focus areas of the TMR. This exercise confirms

that the prioritised strategic programmes match closely to the core challenges identified in the

implementation of the TMR by the OOP (2015).

Table 5: MSP2 – Matching Strategic Skills Programmes to TMR Programme Priorities

Challenge Programme MSP2 4E Focus Areas Key Partners

Raise Standard

of Living of

Township

Residents

Township Entrepreneurship Development:

Support development of township enterprises,

co-operatives & SMMEs

GCR 4E Entrepreneur

Development (G4E-EDP)

GCRA

DOE & GDED

Manufacturing & Production: Promote

Manufacturing & production activities

GCR 4E Artisan Development

(G4E-AD)

NAMB

DHET

Provision of Economic Infrastructure: Provide

necessary infrastructure to support economic

growth

GCR 4E Infrastructure

Development Skills (G4E-IDS)


(G4E-AD)

NAMB

DHET

Transform Regional Economies: R&D into

regional economic plans for Sedibeng and West

Rand districts

GCR 4E Priority Economic

Skills Development (G4E-

PESD)

GDED (home

department)

GCRA

Reduce

Unemployment,

provide skills &

development

Tshepo 500 000: Training & skilling of

unemployed youth & provision of sustainable job

opportunities



PESD)

DID (Tshepo IA)

Regional Tshepo

IAs

Public Employment Programmes: Expand

comprehensive integrated EPWP & CWP Rollout

GCR 4E Public Employment

Initiatives Skills (G4E-PEIS)

DID (IA)

GEYODI Work Opportunities: Gender, Youth

and Disability in infra, environment & social

sectors

GCR 4E GEYODI Skills (G4E-

GEYODIS)

DOE & GCRA

NYDA


Challenge Programme MSP2 4E Focus Areas Key Partners

Provide Supply-

Chain Links

Market Access Facilitation: Guidelines on

accessing markets

GCR 4E Entrepreneur

Development (G4E-EDP)

DID

DHET

Innovation and indigenous knowledge

sharing

National Agenda Science Councils,

Ekasi Fablabs &

GAP

Provincial Supplier Database: Expand

registration of Township entrepreneurs, SMMEs

and Co-ops on

GCR 4E Government

Transformation and

Modernisation Skills

Development (G4E-GTMS)

The DTI

DID

Develop Industry Agriculture Value Chain: Expand Agriculture

Value Chain



PESD)

DOA

The DTI

Aquaculture Development GCR 4E Priority Economic


PESD)

DOA

GTAC

The DTI

Sports, Arts, Culture: Expand creative, sport

and tourism sectors

GCR 4E Public Employment

Initiatives Skills (G4E-PEIS)

GCR 4E GEYODI Skills (G4E-

GEYODIS)

DID

The DTI

Buy more goods

and services

locally

Provincial Procurement: 30% of provincial

procurement in townships

GCR 4E Government

Transformation and

Modernisation Skills

Development (G4E-GTMS)


(G4E-AD)

DED, DID

NAMB, DHET,

GDED, GDID

75% spend on locally manufactured goods DED, DID

Entrench 30 day payment practices DOL

NAMB


6. High-Level Implementation Framework for the Gauteng Master Skills Plan 2015 to 2020

The purpose of the High-Level Implementation Framework 1 is to accelerate those key activities that

will ensure successful implementation of the second Master Skills Plan (MSP2). The High-Level

Implementation Framework 1 is a Plan that should be implemented from 1 September 2015 with

completion of activities by 31 March 2016. A revised High-Level Implementation Framework 2 will be

required by the Gauteng City Region Skills Forum (GSF), along with a revised Gauteng City Region

Skills Strategy (GSS2) for FY16/17 and will supersede accomplishments made in the seven-month

period. Adjustments can be made to the timing of each High-Level Implementation Framework after

implementation of the first Plan (April 2016).

The implementation plan uses the following broad time horizons for reference:

Immediate Term: To end October, 2015 (end of MSP2 approval period)

Short Term: To end March, 2016 (end of MSP2 Year 1)

Medium Term: MSP2 Period: October 2015 to end March, 2020

o Y2: end of MSP Year 2 (April 2016 to March 2017)




Long Term: Beyond MSP2 Period (2020 to GCR Planning Horizon of 2055)

The contents of this section are premised on the MSP2 (the contents of this document) being

approved by the Gauteng Provincial Government EXCO within the immediate term – that is, by

the end of October, 2015 so that MECs identify champions for implementation of the MSP2.

6.1. Elements of the high-level implementation plan 1 (HIP1)

The implementation of MSP2 will be in line with the six element framework. Set out in the next sections

are the key Indicator areas that will be used to determine the success of MSP2 in its first year of

implementation and the associated key actions required to implement these indicators.


6.2. Element 1: Re-structure the GCR institutional skills landscape

Listed in Table 6 below are activities to establish a functioning set of advisory and executive forums for skills development in the GCR, in line with Element 1

of the MSP2 Framework.

Table 6: MSP2- Element 1 Implementation Plan (Restructure the GCR Institutional Landscape)

Ref Indicator Ref Actions Time Period Start & End RACI-Who RACI How

E1.1 Changed

Location and

Revised

Functions of

GCRA

A Political signoff on placement of GCRA with OOP and

organisational form (department or Agency) and send

out agreed upon press release

Immediate

Term

Sept 2015 to

Oct 2015

OOP / DOE GPG Cabinet

Approval

B Review GCRA Draft Business Plan (2015-2020)

based on new responsibilities in line with MSP2

requirements (See E2.1)

Immediate &

Short Term

Oct 2015 to

Mar 2016

GDE / GCRA Internal Plus New

Consulting Contract

C Develop and approve Restructuring and Resourcing

Plan for new GCRA with a comprehensive

communications strategy with various levels of

advocacy.

Short Term Dec 2015 to

Mar 2016

GDE / GCRA New Contract:

Specialist HRD

D Implement GCRA Restructuring and Resourcing Plan,

including development and implementation of Change

Management Plan

Short Term &

Med Term Y1

April 2016 –

March 2017

OOP / GCRA Internal, supported

by specialist HRD

E Key engagements to popularise MSP2: Province,

Mayors Forum, Private Sector, Current Skills

Implementers

Immediate

Term

Short Term

Oct 2015 to

Dec 2015

GCRA Internal

F Shift the skills planning and implementation function

from its current custodian, the DoE, to the Planning

function located in the OOP

Immediate

Term

Nov 2015

Oct 2015 to

Mar 2016

OOP / GDE OOP & GCRA

E1.2 Re-constitute, Re-

structure, Re-

Launch and

Capacitate the

PSDF as GSF

A Rebrand and restructure the GSF to function as the

supreme body for engagement, development and

coordination in the GCR.

Short Term Oct 2015 to

Mar 2016

OOP / GCRA OOP (With

Support?)



B Launch GSF and MSP2: GCR Skills Sector Event Short Term Feb 2016? OOP / GCRA TBA

C Resource the GSF (through restructured GCRA) with

full-time capacity to drive, facilitate, monitor and report

on actions in HIP1

Short Term &

Med Term Y1

Apr 2016 – Mar

2017

OOP / GCRA Internal, supported

by specialist HRD

D Call for nominations for Committees (including

National, Provincial and Local Government,

Organised Business, Organised Labour, Educational

agencies and NGOs)

Short Term Dec 20165? OOP / GCRA

E1.3 Consolidate the

GCR Institutional

Skills Landscape

(GSF)

A Conduct a review of all existing skills-related forums

in the GCR to identify well-structured and operating

forums so as to align them to the GSF structure

Immediate

Term

Sept. to Oct

2015

GCRA Internal with HDR

Support from

GCRA SP

B Workshop with stakeholders to confirm Advisory and

Executive forums, purpose and functions and key

indicators that will define success factors of each

forum for GSS1 - explore recommendations in

Section 4.2.1.

Immediate

Term

Sept. to Oct

2015

GCRA Internal with HDR

Support from

GCRA SP

C Set up initial Plenary Committee known as the

Premier’s Skills Partnership (where decisions are

taken for ratification by principles)

Short Term Feb 2016 OOP / GCRA Internal with HRD

Support from

GCRA SP

D Rationalise ineffective ineffective forums and

structures: Incorporate into GSF substructures,

develop and implement turnaround plans or dissolve

Short Term Feb 2016 OOP / GCRA

/ GDE

Internal with HRD

Support from

GCRA SP

E Set up sub-committees to execute MSP2

implementation requirements to drive GSS1 and drive

development of GSS2

Call for nominations for chairpersons to drive new

sub-committees

Short Term Feb 2016 to

Mar 2016

OOP / GCRA

/ GDE /

GDED /

GDID

Internal with HRD

Support from

GCRA SP

F Constitute a GCR Skills Planning Committee with

representatives (chairpersons) from all sub-

committees of the GSF


Mar 2016

OOP /GCRA/

GDE/GDED

Internal with HRD

Support from

GCRA SP



G Finalise GSF organogram describing relationship

between Advisory and Executing Committees, with

representations and flow of data reported to/from

committees (quarterly reporting).


Mar 2016

OOP / GCRA

/ GDE /

GDED /

GDID / PSF

Internal with HRD

Support from

GCRA SP

E1.4 Drive MSP2

Implementation

Requirements

through Advocacy

& Accountability

A Clarify type and extent of consultation needed to

mobilise stakeholders to meet the mission, objectives

and principles of the MSP2

Immediate

Term

Oct 2015 to

Dec 2015

GCRA Internal with HRD

Support from

GCRA SP

B Ensure accountability through development and

signature of MOUs with clarity on stakeholder roles

and commitments to meeting the objectives and

principles of MSP2 (specifically MSP2, GSF & GSS

roles)


Mar 2016

GCRA – As

Required

GCRA

E1.5 Operationalise

and execute

operational plans

A Create operational plans by stakeholders to be

executed as part of GSS1 (specify accountability and

timeframes)


Mar 2016

GCRA – As

Required

GCRA & GSF

Skills Planning

Forum

B Identify gaps, blockages and risks across committees’

operational plans; develop mitigation plan as part of

operational plans

Medium Term Apr 2016 March 2017 GCRA & GSF

Skills Planning

Forum

C Capture outcomes of forums for GSS1 into Annual

Performance Plans

D Execute, monitor and report on progress of Element 1

implementation based on Indicators and Actions in

Implementation Plan

Short &

Medium Term

Oct 2015

(ongoing)

GCRA TBA – M&E

Arrangements


6.3. Element 2: Clarify skills implementation capacity

Table 7 below outlines activities required to re-structure and re-position the GCRA as the implementing agency within the OOP.

Table 7: MSP2- Element 2 Implementation Plan (Clarify Skills Implementation Capacity)

Ref Indicator Ref Actions Time Period Start & End RACI-

Who

RACI How

E2.1 Obtain support for

GCRA

realignment &

GSF

Establishment

A Clarify core mandate and roles that ensure the GCRA acts

as a strategic skills oversight agency with executive

capacity support for GSF (See E1.1 B). Implement

Communication Strategy

Immediate

Term

Aug to Sep

2015

GDE /

GCRA /

OOP

GPG Consultation

& Approval Process

B Develop and approve ToR for external capacity support

for GCRA repositioning and GSF establishment.

Immediate

Term

Sep to Oct

2015

OOP/

GDE /

GCRA

Internal with

support from

current Service

Provider

C Secure budget and procure external capacity support

required to ensure successful implementation while the

GCRA is being set up

Immediate

Term

Sep to Oct

2015

GDE /

GCRA /

OOP

GPG Consultation

& Approval Process

Procure Service Providers to work with GCRA through

realignment and change management, including

establishment of GSF.

Immediate

Term

Nov 2015

Oct 2015 OOP /

GDE /

GCRA

OOP & GCRA

E2.2 Capacitate the

GCRA as the

implementing

agency tasked to

drive the GSS

A Develop New Organisational Organogram and

Capacitation Plan with positions and skills required for

GCRA to fulfil revised roles and functions


Dec 2015

GCRA Internal Plus New

HRD Consulting

Contract

B Determine budget requirements for restructured GCRA

and GSF to ensure successful implementation of the MSP

via new GCRA and GSF capacity and structures


Dec 2015


HRD Consulting

Contract

C Develop Detailed Implementation and Change

Management Plan


Dec 2015


HRD Consulting

Contract

D Obtain approval for restructuring GCRA and Implementing

GSF Support Functions

Immediate /

Short Term

Dec 2015 GCRA GPG Consultation

& Approval Process



Who

RACI How

E Implement Restructuring, Resourcing and Change

Management Plan for GCRA to undertake revised

functions, including: information collation and analysis (as

part of monitor and conduct regular reviews of the GCR’s

Skills Strategies); developing GSS; research and

development; partnership development and monitoring;

project management (following up and facilitating the

driving of activities in operational plans developed by

stakeholders to deliver on the HIP); and implementation

and M&E activities.

Short Term

Medium Term

Y1

Dec 2015 to

Mar 2016

April 2016 to

Aug 2016

GDE /

GCRA

Internal Plus New

Consulting Contract

6.4. Element 3: Implement the embedded skills development methodology

Table 8 outlines implementation priorities for FY16/17 to inform the development of the Gauteng Skills Strategy 2 (2016 to 20-17) and the HIP2, in response to

Element 3 of the MSP2 Framework.

Table 8: MSP2- Element 3 Implementation Plan (Implement the Embedded Skills Development Methodology)


Who

RACI How

E3.1 Finalise GSS

Methodology for

Implementation

A Obtain approval on 19 Step Methodology in MSP2

approval process

Immediate

Term

Aug to Sep

2015

GDE /

GCRA /

OOP

GPG Consultation

& Approval

Process

B Finalise institutional requirements in OD plan for GCRA

and GSF, including role players and training needs (DHET

Training)


Dec 2015


HRD Consulting

Contract

C Implement Institutional requirements in line with

Capacitation and Change Management Plan

As Above



Who

RACI How

D Develop a data repository that is a centralised platform for

data collection, regular update and extraction:

Identify data available for modelling supply, demand

and gaps

Agree on how to align and link the data repository to

other central databases (e.g. DHET, DOL, HEMIS,

NLRD, SETAs, PASTEL Payroll, etc.)

Statistical analysis to model data supply and demand

via Embedded Methodology


Dec 2015


HRD Consulting

Contract

E Establish relationships and data linkages required to

resource Skills Methodology. Sign MoUs with key data

providers


Dec 2015


Consulting

Contract

F Procure external capacity to assist GCRA and GSF to

undertake first revision of GSS1 in order to embed and

record methodology, data requirements and model

structure


Dec 2015

GCRA Internal: New

Consulting

Contract

G Align GSF Methodology with DHET SIP Methodology

Negotiate, adjust and sign MoU with DHET regarding SIP

Skills Planning Requirements


Dec 2015

GCRA,

OOP &

DHET

New MOU

E3.2 Implement

Embedded

Methodology for

GSS2 review

(2016 to 2017)

A Implement Step 1: Stakeholder consultation/workshop

(GSF Planning Committee) to:

Review each step and sub-step of the Embedded SD

Methodology

Operationalise the methodology with clear

accountability and timeframe to each step and sub-

step


Dec 2015

GCRA GCRA & GSF

Skills Planning

Forum, supported

by Consulting team



Who

RACI How

B Implement step 2:

Develop Occupational Teams to refine the demand

model and to determine the skills gap

Consider needs based on mapping occupations back

to prioritised projects to determine timeframe of

demand per occupation

Prepare draft GSS2 with proposed actions and

implementing stakeholders – list actions based on top

and secondary priorities

Obtain confirmation from GSF/Premier – sign-off on GSS2

projects

Short Term Jan 2016 to

Mar 2016

GCRA –

As

Required

GCRA & GSF

Skills Planning

Forum, supported

by Consulting team

C Implement step 3:

Set up working groups for implementation

Strategic research to guide operationalisation of action

plans per working committee (collate best practices

and learnings globally/nationally; identify risks and

develop mitigation plan)

Identify actions not assigned to working groups –

create a committee to implement actions that are not

assigned

Develop M&E plan with M&E expert together with

each working committee, with outcomes aligned to the

4E framework

Short Term Jan 2016 to

Mar 2016

GCRA –

As

Required

GCRA & GSF

Skills Planning

Forum, supported

by Consulting team

D Implement step 4: review and revise GSS

Review progress towards outcomes for each working

group

Analyse accomplishments, challenges and non-

delivery

Medium Term

Y2

Y3

Y4

Y5

Review Cycle GCRA &

GDF

Planning

Team

GCRA & GSF

Skills Planning

Forum, supported

by Consulting team

(if / where required

for detailed

modelling)



Who

RACI How

Review success of working groups, sub-committees

and forums, based on delivery of outcomes for the

GSS1

Reflect on learnings of piloting the Embedded SD

Methodology (what works vs what doesn’t)

Prepare annual feedback report with proposed revisions

to the MSP2 methodology, working groups, etc. - to be

incorporated into the GSS2

E Determine changes needed to ensure alignment to MSP

elements

Develop Change Management Plan; obtain buy-in and

implement the plan

Recurring Recurring GCRA &

GSF

Planning

Team

TBA

6.5. Element 4: Sign-off and implementation of the GCR Skills Strategy (GSS) baseline (GSS1)

Table 9 outlines key implementation requirements to ensure that the GSS1 is implemented.

Table 9: MSP2- Element 4 Implementation Plan (GCR Skills Strategy Baseline)


Who

RACI How

E4.1 Confirm GSS

(2015 to 2020) is

linked to national,

provincial and

local development

priorities

A Consultations with key interest groups: Local Government,

OOP, DED, SALGA

Immediate

Term

Aug to Sep

2015

GDE /

GCRA /

OOP

GCRA Steercom

B Provide opportunity for stakeholders to comment on GSS1

Finalise GSS1

Immediate

Term

Aug to Sep

2015

GDE /

GCRA /

OOP

GCRA Steercom

C Update and approve of MSP2 and GSS. Immediate

Term

Sep to Oct

2015

OOP/

GDE /

GCRA

GPG Consultation

and Approval

Process



Who

RACI How

E4.2 MSP & GSS

Advocacy

A Identify private sector (organised business) and public

sector (sister Departments, National Departments and

Municipalities) whose Skills Plans must align to the MSP2

Immediate

Term

Aug to Sep

2015

GDE /

GCRA /

OOP

GCRA

B Develop a Communication Plan (Linked to GSF process)

to embed GSS Skills Priority Programmes in

Implementing Agents’ Training Strategies and Plans:

Define advocacy campaign developed for structured

stakeholder consultation, validation and discussion

around priorities of GSS1

Outcomes of consultation sessions minuted and

distributed; revisions built into GSS2 and HIP2

Immediate

Term

Aug to Sep

2015

GDE /

GCRA /

OOP

GCRA

C Develop and Implement active advocacy campaign of

engagement to popularise MSP2, outline GSS priorities

and align Skills Plans to the MSP2 through:

Document dissemination,

Presentations to key parties and existing forums

GSF Launch (see above)

Facilitate partnerships that will maximise

outcomes

Minute and distribute Action Minutes

Immediate

Term

Sep to Dec

2015

GCRA,

OOP,

GDE,

GDED,

GDID

Full Plan TBA

D Develop and sign MoUs with key public and private

stakeholders regarding MSP roles (GSF, Committees,

Subcommittees), key roles in GSS implementation;

actions regarding skills strategy and Priority Programme

areas.

Short Term Dec 2015

onwards

GCRA GPG Consultation

& Approval

Process

E4.3 A Confirm budgets for GSS Priority Programme

implementation

Short Term Dec 2015

onwards


& Approval

Process



Who

RACI How

Confirm

Resourcing of

GSS Priority

Programmes

B Confirm sources and quantum of Budgets required for

GSS Priority Programmes (across role players)

Short Term Dec 2015

onwards


& Approval

Process

C Identify funding mechanisms / funding partners and clarify

funding needs (in-kind contributions, equipment, money,

etc.)

Short Term Dec 2015

onwards


& Approval

Process

D Confirm budget for key projects versus shortfall: Actively

seek funding to maximise outputs and outcomes where

shortfall exists

6.6. Element 5: Clear monitoring and evaluation (M&E) framework

Table 10 below outlines implementation priorities in order to ensure Element 5 of the MSP2 framework is implemented.

Table 10: MSP2- Element 5 Implementation Plan (Monitoring & Evaluation Framework)


Who

RACI How

E4.4 Implement GSS

Programme M&E

Framework

A Develop a theory of change with a logic framework for

GSS:

Determine policy implementation outcomes to be

measured. Set out desired impact of prioritised

programmes

Clarify inputs, activities, outputs, intermediate and

long-term outcomes

Define Indicators, data sources and needs for

monitoring programme implementation

Immediate

Term

Sep to Dec

2015

OOP &

GCRA

GCRA



Who

RACI How

B Clarify monitoring and reporting framework

Set out reporting requirements (organisational /

Forums / OOP & GPG

Confirm time frames and level of detail

Immediate

Term

Jan to Apr

2015

GCRA GCRA

C Determine quantitative and qualitative data used to

measure outputs and outcomes - ensure alignment to the

4E framework.

Gain an understanding of the various data that will be

produced through reporting on projects

Confirm baseline data against which to measure

improvement and achievements

Determine data verification process – communicate to

implementing agents

Align the M&E Framework to specify outputs and

outcomes across the 4E Framework

Explore whether reporting can be built into MPAT and

what gaps may remain

Determine how to track progress across the province,

how often and how the M&E Framework fits into other

reporting cycles

Immediate

Term

Jan to Apr

2015

GCRA GCRA

D Define and design dashboard for GCR Skills data

collection, collation and presentation to stakeholders.

Determine the most suitable platform / medium for a skills

dashboard (website, etc.). Explore how to automate real-

time reporting to allow visibility of progress on outcomes

agreed upon by advisory and executory forums and

working groups

Determine capacity to develop the skills dashboard in-

house

Short Term Oct to Mar

2015

GDE /

GCRA /

OOP

GCRA



Who

RACI How

Develop TOR for dashboard development to close

gaps in-house

Procure Service Provider with clear scope of work and

deliverables

Define implementation approach and how stakeholder

access data

E Design Accountability systems in M&E Framework:

Indicators built into individual performance

agreements across various levels of management

(cascaded accountability) across National-, Provincial-

and Local structures

Compulsory key result areas are identified in

individual performance agreements

Detailed plan as an Annexures that specifies

indicators, descriptors, resources and timeframes for

deliverables per organisation

Immediate

Term

Jan to Apr

2015

GCRA GCRA

F Set out and communicate Monitoring and Evaluation

format and requirements: Ensure cascade of

responsibility:

Links to GSS Priority Programmes to statutory

reporting instruments

Set Targets based on GSS (Quantitative and

Qualitative). Design Priority Programme Tracking

system (Dashboard)

Short Term

Medium Term

Mar 2015

onwards

GCRA GCRA

E5.5 Operationalise,

Monitor and

Review Progress

of Implementation

A Each Department / Partner to establish, implement and

track a plan with indicators and timeframes

Short Term

Medium Term

Mar 2015

onwards

GCRA GCRA

B Regular Report on Achievements of targets with respect

to GSS Priority Programmes

Ongoing Mar 2015

onwards

GCRA GCRA



Who

RACI How

C Regular follow-up on required reporting:

Review and analyse reporting gaps, identify reporting

challenges

Measure progress against indicators set for the

MSP2, GSS1 and HIP1

Provide proposed actions for decision-making to guide

skills implementation

Ongoing Mar 2015

onwards

GCRA GCRA

D Evaluation Process:

Identify period for evaluations to be done to determine

specified outcomes of GSS

Explore role of CSIR, HSRC and QCTO as part of

evaluation process

Prepare TORs

Procure & Manage independent Service Providers

Periodic Mid-Term

Review

2017

E Change Management:

Determine changes needed to ensure alignment to

MSP elements

Develop Change Management Plan

Obtain buy-in and implement the plan

As Required

(Post-Review)

As Required

(2017)

OOP &

GCRA

TBA. Depending on

findings and

severity.


6.7. Element 6: Finalise implementation plan activities

Table 11 below outlines key implementation steps required to ensure that the implementation of MSP2 and GSS progresses quickly. This outlines the RACI

requirements (Responsibilities, Accountabilities, Consultation and Informed parties). Note some of these steps relate closely to the political approval process

outlined in Element 1.

Table 11: MSP2- Element 6 Implementation Plan (Finalise Implementation Plan)


E6.1 Finalise RACI A Stakeholder engagement / workshop to finalise

Implementation Plan and clearly define the list of

implementing agents and other relevant Departments /

Organisations to be listed as part of the RACI

Immediate

Term

1-2 Oct 2015 R: GCRA

C: All

Implementing

Agents

GCRA Function

E6.2 Contact list A Prepare and circulate contact list with key persons

involved in the GSS1 and HIP1

Immediate

Term

5-9 Oct 2015 R: GCRA

I: All

Implementing

Agents

E6.3 Sign-off and

approval

A Revise proposed HIP1

Obtain sign-off from GSF/Premier

5-15 Oct

2015

R: GSF

A: Premier

I: All

Implementing

Agents

GCRA Function

E6.4 Accessibility and

visibility

A Communicate the GSS and the High-Level

Implementation Plan; make it accessible

Communicate the M&E Framework and progress, make

progress accessible

16-21 Oct

2015

R: GCRA

I: All

Implementing

Agents

GCRA Function

E6.5 Drive

implementation

A Send calendar of event for the financial year to all

stakeholders, specifying tasks and accountability

22-26 Oct

2015

R: GCRA

I: All

Implementing

Agents

GCRA Function

E6.6 Streamline core

functions

A Clarify core activities and non-core activities of

implementing agents

22-26 Oct

2015

R: GCRA GCRA Function



Identify partners that can drive non-core functions of

implementing agents – formalise

I: All

Implementing

Agents

E6.7 Acknowledgement A Develop platform to communicate acknowledgements

Acknowledge implementing agents who achieve and

deliver on indicators and targets

26 Oct 2015

– 31 Mar

2016

R: All

Implementing

Agents

A: GCRA

I: All

Implementing

Agents

GCRA Function


7. Conclusion

This document sets out the key findings from the review of the first Master Skills Plan (MSP1), and

details proposals for the implementation of the second Master Skills Plan (MSP2). While MSP1 started

the process of skills planning for the Gauteng City Region, analysis of the MSP1 and its implementation

identified certain inherent difficulties in the development and implementation of MSP1, and created the

platform on which the second Master Skills Plan (MSP2) could be developed.

The proposed framework for the MSP2 starts from a different perspective. Most importantly, it identifies

the appropriate location of the skills planning function in the GCR, which is close to the development

and economic planning function of the GCR, reporting to the Office of the Premier. Recommendations

then set out the institutional structures required to support this revised location. Working from this

institutional framework, the methodology through which the future GCR Skills Strategy is developed

and regularly revised is set out, along with requirements for its monitoring, evaluation and

implementation.

The Gauteng Skills Strategy baseline is also set out, and identifies the key focus areas for skills

development in the GCR over the six-year period of the MSP2. These focus areas are intended to

provide structure and guidance to all implementers of skills to ensure that provincial efforts are

coordinated towards meeting the most important skills needs in the province.

The MSP2 will require a fundamental shift in the approach to skills planning in the GCR, as well as to

the structures through which skills planning is undertaken, and how skills development programmes

are identified, developed and implemented by all skills implementing agents. Given the limited success

achieved with the MSP1, this shift in approach is deemed necessary to ensure that the GCR can

identify, develop and deploy the skills it requires to fuel its economic growth trajectory. It is only through

ensuring skills are available to support economic and social development goals that the GCR will be

able to achieve the bold targets set out in the Transformation, Modernisation and Reindustrialisation

(TMR) strategy.

Most importantly, MSP2 is based on the premise of an on-going process of engagement, modelling and

discussion around the skills needs of the GCR into the future. In this way, skills development in the

province can dynamically adapt to changes in the economy, technological change and shifts in

development priorities. It is also envisaged that the skills planning and implementation methodology will

improve each time it is repeated.

gauteng master skills plan 2 (msp2) for the period 2015

Documents