EXPANDED PUBLIC WORKS PROGRAMME

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EPWP ECONOMIC SECTOR VENTURE LEARNERSHIPS PORTFO
LIO COMMITTEE MEETING 26 OCTOBER 2005
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EPWP ECONOMIC SECTOR BACKGROUND(1)

• The EPWP economic sector aims to create 3000
  sustainable businesses in various sectors through
  tapping into government expenditure on goods and
  services.
• These businesses will be develop through a
  programme known as new venture creation
  learnership. The learnership will provide
  learners with business and management skills. The
  learnership costs will be covered by the 23
  SETAs.
• The learnership will target persons in the 2nd
  economy as learners. These learners will all be
  registered as new companies and will be provided
  with theoretical and practical training.

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EPWP ECONOMIC SECTOR BACKGROUND(2)

• For the practical training, learners will be
  given Government contracts. These Government
  contracts will cover the following sectors food
  and beverages, clothing, furniture, property,
  cleaning services, labour recruitment,
  infrastructure, security, catering and waste
  management, inter alia.
• Each learner will be awarded 3 projects to
  execute. The cumulative value of these contracts
  should total at minimum R800 000.
• All learners will also receive mentoring
  assistance throughout the learnership.
• All learners will have access to finance through
  ABSA bank, which has been selected as the
  preferred provider through a tender and
  adjudication process. ABSA provides working
  capital at prime 1.

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EPWP ECONOMIC SECTOR PROGRESS TO DATE.(1)

• A management plan on the venture creation
  learnership has been completed. This plan
  provides guidance on all aspects of the
  learnership and fully documents all processes.
• 170 learnerships/emerging enterprises have been
  established and are underway in Limpopo and the
  Eastern Cape. These learnerships relate to the
  building of schools.

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EPWP ECONOMIC SECTOR PROGRESS TO DATE.(2)

• Of the 170 learners/emerging enterprises, 40 have
  graduated from the programme. A graduation
  ceremony was held in August 2005.
• NDPW, DPW (Limpopo) and the CIDB worked
  collectively on registering the 40 learners on
  the CIDB register. By September 2005, 70 of the
  40 learners have been registered. A database of
  learners are available. These learners are now at
  Level 3 and 4 on the CIDB register. Learners will
  therefore moved up from Level 1 and 2 on the
  register through our venture learnership
  programme.

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EPWP ECONOMIC SECTOR LIFE STORY.(1)

• The success of the EPWP Economic Sector venture
  learnership programme (Limpopo, Sakhasonke) is
  illustrated through the life story of one of the
  learners/emerging enterprises, Lucky Ndlovu.
• Lucky is a 31 year old man, previously unemployed
  from Mopani in the Limpopo Province, where 30 of
  the population is unemployed.
• For his 1st project, Lucky built 4 classrooms and
  an ablution block for Seghashife High School in
  Makele Village and for his 2nd project he built 4
  classrooms and an ablution block for Farel
  Primary School at Violet, in Bushbuckridge. For
  the 2nd project, he employed 16 people and
  through the programme Lucky is now able to tender
  successfully for Government projects and manage
  the finance and business operations of his
  contracting company.

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EPWP ECONOMIC SECTOR PROGRESS TO DATE.(2)

• In the Eastern Cape, the 50 selected
  learners/emerging enterprises, will receive their
  1st contracts by December 2005, valued at R1
  million each. Mentoring criteria were drafted and
  the tender is out.
• Discussions are underway, with ABSA to fund
  evaluation studies of the venture learnerships,
  fund company registration costs and venue and
  advertisement costs related to the learnership.
• The Energy SETA has committed to fund 12
  learnerships in Gauteng, as a pilot project.
  Further commitments for 30 learnerships per annum
  have also been made by the SETA. These
  learnership will be for electrical businesses.
  NDPW (Operations Branch) has committed to provide
  contracts to these 12 learners and NDPW will
  strive to provide learners with cumulative
  projects valued at R1,8 million.

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EPWP ECONOMIC SECTOR PROGRESS TO DATE.(3)

• The FoodBev SETA has also committed to fund 25
  learnerships, as a pilot project. The aim of
  these learnerships are to develop businesses that
  will supply dairy, meat, fish, and bread
  products. Discussions will be held with the
  Department of Correctional Services to provide
  the 25 learners with contracts to supply the
  above-mentioned products.
• NDPW has communicated with all 23 SETAs and NDPW
  is to present to all the SETAs on the venture
  learnership programme in October/November 2005.
  The intention is to obtain funding from the
  SETAs, similar to the Energy SETA commitment.
• In August 2005, the New Venture Creation
  Learnership NQF Level 2 was registered with SAQA.
  A tender has been placed for the drafting of the
  curriculum.

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EPWP ECONOMIC SECTOR PROGRESS TO DATE.(4)

• NDPW has commissioned a study to analyse
  Government expenditure on goods and services.
  GOPA has been appointed as the service provider.
  The 1st phase of the report will be completed in
  mid-November 2005. Study will be completed in
  February 2006.
• NDPW is liaising with DPW, Limpopo on undertaking
  an evaluation study of the Sakhasonke programme.
  Funding proposals have been prepared and
  institutions have been approached.
• NDPW capacity currently being developed 3
  deputy director positions advertised and closed.
  The last interviews are scheduled for 4 November
  2005.

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EPWP ECONOMIC SECTOR PROGRESS TO DATE.(5)

• BUSA will also fund the drafting of a sector and
  implementation plan, which will include the
  venture learnerships. A TOR is currently being
  devised. The sector plan will review best
  practice. Provinces are requested to provide
  information on potential SMME strategies that can
  be expanded on for the EPWP economic sector.
• The dti is supporting this initiative. The matter
  was discussed with the dti in September 2005. The
  dti supports the use of Government expenditure.
  It is expected that a sector plan will be
  completed by March 2005 which includes
  initiatives such as cooperatives. National and
  provincial institutional frameworks will also be
  covered.

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EPWP ECONOMIC SECTOR CHALLENGES

• Limited funding for training with SETAs.
• Funding for mentoring. The evaluation of
  Sakhasonke, Limpopo is the 1st step in addressing
  this challenge. The dti has requested this study.
• Training providers both quality and quantity
  has to be addressed. Discussing the matter with
  the Services SETA.
• Institutional arrangements will be addressed
  through the sector plan compilation and
  interactions with all the provinces.

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• THANK-YOU!
• Carmen-Joy Abrahams
• EPWP, DPW
• carmen-joy.abrahams_at_dpw.gov.za
• OR
• Thami Ngqungwana
• The dti
• Thamin_at_thedti.gov.za