Briefing by the Department of Higher Education and Training on its Strategy/Policy for SMMEs and Co-Operatives

1
Briefing by the Department of Higher Education
and Training on its Strategy/Policy for SMMEs and
Co-Operatives

• Portfolio Committee on Small Business Development
• 18 March 2015

2
Introduction

• The Department of Higher Education and Training
  (DHET) was formed in 2009 after reconfiguration
  of government, from splitting from the erstwhile
  Department of Education into the Department of
  Basic Education (DBE) to focus primarily on
  schooling and DHET to focus on further and higher
  education, as well as skills development.
• The Skills development function was previously
  located within the Department of Labour,
  transferred to DHET in 2009, by Presidential
  Proclamation.
• DHETs mandate is to create a fully articulated
  Post-School Education and Training (PSET) system
  (NOT equivalent to post-matric)
• Increase opportunities
• Improve access and articulation in a
  differentiated system and
• Improve skills production pipeline in
  intermediate and high level skills.
• Critically, change the shape and size of the
  system- more Technical and Vocational Education
  and Training (TVET) versus university graduates

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Purpose of DHET

• Provide strategic and policy direction to the
  Institutions and entities of the Post-School
  Education and Training (PSET) in the country,
  public and private.
• Premised on the Ministers Delivery Agreement and
  the White Paper for Post-School Education and
  Training.
• Constantly identifying the priorities for PSET
  system.
• Planning to meet the immediate and long-term
  education and training needs of the country,
  within the context of the National Development
  Plan Vision 2030.
• Monitor implementation of plans in the PSET system

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Responsibilities of DHET

• Public universities, National Institutes of
  Higher Education and private higher education
  institutions
• Public and private Further Education and Training
  (FET) Colleges
• Adult Education Training centres and all other
  adult education initiatives with the exception of
  DBEs Khari-Gude basic literacy and numeracy
  programme
• The levy grant institutions Sector Education and
  Training Authorities (SETAs) and the National
  Skills Fund (NSF)
• Regulatory institutions and other organisations,
  systems, and frameworks National Qualifications
  Framework (NQF), South African Qualifications
  Authority (SAQA), two quality councils (Council
  of Higher Education CHE/ Higher Education
  Quality Committee HEQC and Quality Council of
  Trades and Occupations QCTO), National Skills
  Authority, National Board for FET (NBFET) and
  National Board for Adult Basic Education and
  Training (NBABET)
• The Human Resources Development Strategy for
  South Africa (HRDSA), whose council is chaired by
  the Deputy President, Secretariat services
  provided by the DHET.

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The Post-School Education and Training System
SKILLS PLANNING
QUALITY ASSURANCE AND ADVISORY BODIES,
QUALIFICATIONS FRAMEWORKS
UNIVERSITIES, UNIVERSITIES OF TECHNOLOGY AND
COMPREHENSIVES
Workplace learning governed by SETAs
COLLEGES
NSDS DIRECTING ROLE OF SETAs AND NSF WITHIN
COMMITMENTS OF HRDSA, NGP, IPAP, NDP, RURAL
DEVELOPMENT, OTHER GOVT PRIORITIES
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Priorities of Government

• Government outlined 5 key priorities as follows
• Education
• Health
• Fight against crime and corruption
• Rural Development and
• Job creation.
• All these priorities are inter-related
• Success of each is very much dependent on the
  success of others
• Broken down into 14 government outcomes,
  following the introduction of an outcome-based
  system of delivering services
• The outcomes system, by implication, breaks down
  the silos in terms of service delivery, by
  recognizing the inter-dependencies that exist in
  aspects aimed at achieving government objectives.

7
Priorities of Government

• Cabinet adopted A Skilled and Capable Workforce
  to Support an Inclusive Growth Path as one of
  the priority outcomes for this government
  Outcome 5
• A skilled and capable workforce is critical for
• decent work
• an inclusive economy
• labour absorption
• rural development
• reduction of inequalities
• creation of a more diversified and knowledge
  intensive economy
• realisation of all other Government Strategies,
  including growing the SMME sector in the country.

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Five Interlinked Outputs of Outcome 5
9
Policy Framework

• In February 2011, the Minister of Higher
  Education and Training launched the third phase
  of the National Skills Development Strategy (NSDS
  III)
• The strategy sets out eight (8) goals that must
  be achieved by the PSET. Goal 6 of the NSDS III
  speaks of Encouraging and supporting
  cooperatives, small enterprises, worker
  initiated, non-governmental organisation (NGO)
  and community training initiatives.
• First Outcome Cooperatives supported with skills
  training and development, to expand and
  contribute to sector economy and employment
  growth
• Second Outcome Partnership projects to provide
  training and development support to small
  businesses are established in all sectors and
  their impact reported on and
• Third Outcome Support for Worker, NGO and
  community-based education programmes are
  supported and impact thereof measured and
  reported on.

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Skills Levy Institutions

• The NSDS III goals and outcomes cannot be
  achieved without cooperation and coordination
  from all key stakeholders, which include, but not
  limited to
• Government agencies (i.e. Small Enterprise
  Development Agency SEDA, training providers,
  employers, etc.)
• DHET institutions, SETAs and NSF are the key
  drivers of the NSDS III.
• The main responsibilities of SETAs and NSF are
  outlined in the NSDS III.

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Key Training Interventions - Cooperatives

• Output 4.6.1.2 Sector projects are established
  by sector stakeholders, supported by the NSF.
• The NSFs contribution to the Cooperatives
  includes (as an example)
• Project Cooperative Development Facilitators
  Learnership (12 months) 2011/12
• 187 Cooperative Development Facilitators
  completed (33 drop-outs)
• 31 August 2012
• Learners were across all the provinces
• Total NSF costs for this project R13.3 million
• Co-operative Development (using the
  above-mentioned trained 187 Cooperative
  Development Facilitators)
• NSF allocation R163.5 million
• Project duration August 2012 to July 2015
• Target beneficiaries 5 000 learners of
  co-operatives
• Progress 2870 learners benefited thus far during
  the 2012/13 and 2013/14 financial years.
• Expenditure to date amounts to R54.9 million.

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Key Training Interventions Cooperatives

• Skills development interventions at 28 sites
  Kuruman, Vryburg, Mathopestad, Botshabelo,
  Bloemfontein, Butterworth, King Williams Town,
  Addo, Patterson, Bushbuckridge, Nkomazi,
  Siyabuswa, Marapyane, Tzaneen, Lephepane, Giyani,
  Mogjadji, Nuanitaa, Johannesburg, Katlehong,
  Kagiso, Atteridgeville, Snake Park, Etwatwa,
  Sebokeng, MooiMpofana, Stanger and Esikhaweni.
• SETAs assisted and supported Cooperatives as
  follows
• 2012/13 578 and
• 2013/14 960

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Key training interventions - SMMEs

• National Skills Fund
• The Deutsche Gesellschaft für Internationale
  Zusammenarbeit GmbH (GIZ) Basic Entrepreneurial
  Skills Development Programme (BESD)
• Since 2009 to 2011, the NSF has co-funded with
  the GIZ, the GIZ BESD programme resulting in
• more than 100 unemployed youth participated in
  the Entrepreneurial Development Practitioners
  (EDPs) course,
• 450 Emerging Entrepreneurs (EEs) have
  participated and some are still participating in
  the Emerging Entrepreneur courses,
• 350 Emerging Entrepreneurs finished their
  training in the second half of 2011, and
• Over 90 of the unemployed young people who have
  been trained as EDPs, completed the course
  successfully.
• GIZ surveys have also shown that between 70-80
  of participating emerging entrepreneurs who
  completed the course report more customers and
  higher incomes and, on average, one new job was
  created per emerging entrepreneur.

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Key Training Interventions - SMMEs

• National Skills Fund (continue from previous
  slide)
• SEDA/NSF Basic Entrepreneurial Skills Development
  Programme (BESD)
• Allocation of R84 million over 3-years to Small
  Enterprise Development Agency (SEDA) to
• train 200 Entrepreneurial Development
  Practitioners (EDPs) and
• provide skills development to 2000 Emerging
  Entrepreneurs in all the provinces.
• The implementation planning of phase 1 commenced
  in early 2013 with GIZ providing technical
  assistance to SEDA during this phase.
• The roll-out of the training interventions
  commenced on 01 September 2014, namely 194 active
  Entrepreneurial Development Practitioners (EDPs)
  learners in training at 18 sites

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Key Training Interventions SMMEs.. cont

• (i.e. Bloemfontein 11, Botshabelo 8,
  Burgersfort 12, Bushbuckridge 10, George 6,
  Humansdorp 12, Kimberley 12, Klerksdorp 10,
  Kuruman 10, Philippe (WC) 10, Polokwane 12,
  Queenstown 12, Rustenburg 11, Thohoyandou
  12, Tzaneen 12, Uitenhage 12, uMgungundlovu
  10, and Welkom - 12.
• This training will be completed by the end of May
  2015, after training provided by these trained
  EDPs for the 2000 Emerging Entrepreneurs (EEs)
  will commence. Drop-outs to date total 28.
• The BESD Steerco (current members are DHET, SEDA
  and GIZ) has decided to amend the Steerco Terms
  of Reference to also include the new Department
  of Small Business Development.
• SETAs assisted and supported Small Businesses
  follows
• 2012/13 18 660 and
• 2013/14 13 460

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Conclusion

• The establishment of a focused Department is a
  welcome development in the countys efforts to
  develop the SMME and Cooperative sector
• The DHET is looking forward to contributing to
  the strategic direction provided by the new
  Department and will continue to strengthen
  partnerships with all role-players as recommended
  by the NSDS III.

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Thank You