Outline

1
Outline

• About UYF
• Programmes of UYF
• Description, Achievement, Lessons, Challenges
  Context (Conditions, Policies)
• Financial information
• Plans 2004 - 2006

2
History
3
History
4
Focus of the Fund
INVESTMENTS PROJECTS
Skills Development Transfer
Youth Entrepreneurship
Contact, Information Counselling

• SME Finance
• SME Finance
• Cooperative Funding
• Micro Finance
• Business Development Support
• Entrepreneurship Education
• New Venture Creation Learnership
• Business skills development voucher programme

• Youth information service
• Youth line
• Youth portal
• Youth advisory centres
• Youth Card

• On-the-job Training / Skills Development
• National Youth Service
• School to Work (FETCs)

5
Commitments
TYPE NO of PROJECTS AMOUNT
Core projects 74 R589 million
M E, CBR 16 R 13,6 million
TOTAL 90 R602 million
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Targets
At current funding commitment level
50 000 jobs by 2006
7
Participants to date
Total beneficiaries in excess of 650 000
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EntrepreneurshipTarget Market
9
PROGRAMME AREAS
10
EF PROGRAM STRUCTURE

• Progress Fund R100 million Fund provides
  finance from R100k to R5,000k to SMEs which are
  beneficiaries of procurement contracts.
• Franchise Fund R125 million Fund provides
  finance from R150k to R3,000 for purchase of new
  or existing franchises.
• General Fund R90 million Fund provides finance
  from R50k to R5,000k to SMEs which are not
  covered by Franchise or Progress Fund
• Micro-Finance Provides finance of up to R50k for
  start up or expansion of existing business.
• Co-operatives Provides finance to groups of
  people in co-operative up to R500,000 per
  co-operative

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ACHIEVEMENTS

• Micro 1015 enterprises (2000 jobs)
• SME 60 SMEs (979 jobs)
• Co-investment R50 million (71)
• Private sector involvement Banks
• High (50) support for women in micro
• Returns 21-22 (Portfolio)
• Bank direct commitment of R160 million and
  indirect of R320 million)
• Strong expression of interest from other Banks
• Partnership in process with ECDC and Ithala
• Achieved significantly more than Khula,
  Msele-Nedventures, NEF Ventures, Equity Africa

12
2004/2005 PLAN

• Approve R60 m loans/investments to SMMEs
• SME (70), Co-operatives (28), Micro (1,208)
• Leverage private sector finance 21 (R340m
  R170m)
• Implement partnerships with ECDC, Ithala, MEEC,
  NPDC Provincial Investment Promotion Agencies
  and Provincial Departments
• Create / preserve 3,000 jobs
• Women-owned SMMEs 60
• Design, develop, implement mainstream micro
• Gross portfolio return gt20

13
MEDIUM TERM PLAN

• Fully disburse in next 4 years
• Co-investment target from 71 to 0.51
• Create / sustain 17,000 jobs for mainly youth
• 67 (vs 50) of SMMEs - women-owned
• Successful mainstream micro-finance model
• Successful mainstream co-operatives model
• Lower cost of financing for micro-businesses and
  co-operatives (partnership with SACCOL)
• Gross portfolio return (gt20)

14
CHALLENGES

• Attracting private sector investment in SMME
• Increased private sector investment vs UYF
  influence
• Managing stakeholder expectations
• Managing growth
• Balance developmental financial returns
• Maintain focus (especially if seen as successful)
• Balancing breadth / depth of programs
• Improving outreach
• Creating and strengthening partnerships
• Lower operating costs of programs / projects
• Lowering cost of financing to SMMEs.

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EntrepreneurshipEducation
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How Voucher Programme Works

• Client completes voucher application form
• Undergoes assessment and identification of
  required intervention
• Pays contribution (10) into BDSVP account
• Selects preferred SP from SP directory
• Attends the approved intervention
• Endorses voucher on completion of intervention
• Provides continuous feedback to AA on the
  provision of services including final evaluation
  of the intervention

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BusinessDevelopment Services Voucher Programme
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Business Development Services Voucher Programme
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Future Plans2004/5

• Entrepreneurship Education
• Review of entrepreneurship education programmes
  (UWC) and finalisation of EE strategy
• Hosting of National Entrepreneurship Conference
  (EE, BDS, access to finance)
• 20 000 young people to be assisted to enhance
  their entrepreneurial skills.
• BDS Voucher Programme
• Roll out of programme to remaining provinces
  Free State, Mpumalanga, Northern Cape North
  West (RFP for SPs AAs already issued)
• Provision of business support to 6000 young
  entrepreneurs
• Approximately 9000 direct jobs to be
  created/sustained through programme.

   
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Role of Umsobomvu in NYSP

• In 2003 Implementation Plan was developed and
  adopted by Cabinet
• The Umsobomvu strategy was to ensure that there
  was a national framework which would ensure the
  implementation of NYS to scale
• 5 000 young people will commence the project in
  2004.
• The responsibility for implementing this
  programme falls to many agencies. UYFs
  responsibility is to resource the youth
  development components.
• The National Youth Service Programme is an
  initiative of the Presidency and managed by a
  Project Partnership Team. Govt. dept. are
  resource agents.

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Role of Umsobomvu

• UYF will support the youth service
• programme in a number of ways, including
• Funding for the youth development components
• Assisting with exit opportunities
• Running capacity building for the institutions
  that
• are managing the programmes and
• Developing the training material and running the
• training programmes for the technical advisors
• and the programme and institutional assessors.
• Many of these roles are likely to be particularly
  intense during the first phase of implementation.
• In the immediate term UYF is developing the scope
  of the initial service projects with govt.
  departments.

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Areas of service2004

• Department of Health 3 000
• Department of Social Development
• 500
• Community Development Worker Support
• 250
• MPCCs 250
• Conservation and environment 500
• Agriculture 500
• Infrastructure 1 000
• Construction 1 000
• Additional 500
• The Sector plans agreed by the EPWP are
• guiding the location and nature of projects.

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Programme DescriptionSchool to Work

• The School to Work (STW) Programme is a strategic
  intervention aimed at improving the employability
  of youth in high growth sectors through the
  development of high level technical skills
  training and work experience
• Targets unemployed matriculants graduates

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Programme Model

• Life professional skills training for holistic
  development
• Technical skills training entrepreneurship
  education to assist youth to acquire sufficient
  preparation for the world of work
• Structured work experience to develop learners
  occupational competencies an opportunity to
  apply theory
• Case management (counselling support, mentorship,
  follow-up and aftercare)

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Target Areas

• Accounting
• Agriculture
• Banking and Financial Services
• Engineering
• Information Technology
• Sport and Entertainment
• New sectors under FETC RFP
• Mining
• Manufacturing
• Agri-processing
• Engineering

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Lessons Learnt (cont.)

• External integration
• Partnerships with Setas
• Poslec Seta Learnership for People with
  Disabilities
• Chieta Medical Sales Representative Learnership
• Insurance Seta Formalisation of the RAF
  Internship into a Learnership
• Benefits
• Joint project design
• Co-funding
• Access to employers
• Integration of life skills entrepreneurship
  education
• Integration of Enterprise Funding and BDS for
  self-employment exit opportunities

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2004-2005 Plans

• Formalise current projects into learnerships
• Contract 18 public FET colleges (34 proposals
  received)
• Increase provincial representation through FET
  colleges, parastatals Setas. New projects in
  NW, NC, EC FS
• Increase participants to 3500 by March 2005
• Increase employment rate to 90 through BDS
  Enterprise Finance
• Increase partnerships
• Conceptualise Career Development Programme with
  DoE

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The Public FET Colleges Programme

• In line with our mandate, UYF has identified DoE
  as a strategic partner to deliver skills
  development interventions for unemployed youth.
• UYF DoE are currently finalising the
  operational plan which will guide the
  implementation of identified interventions, one
  of which is to support public FET colleges to
  deliver skills learnership programmes.

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The Public FET Colleges Programme

• The FET Colleges Programme began in
• February with the following investment
• from UYF
• Technical support to enable colleges to
  consolidate various capacity building
  interventions they have received.
• Technical support to assist colleges to align
  their programmes with SETA requirements
• R18 million direct investment into training
  programmes over the next 2 years.

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Purpose and Nature

• CIC Project Purpose
• Young people make informed decisions about their
  skills development, employment and
  self-employment and are linked to sustainable
  livelihood opportunities (What is CIC?)

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Achievements since 2001

• UYF Institutional Infrastructure and Capacity
  Developed
• CDMP operational - Content Development and
  Management Project (CDMP),
• YouthConnect operational as of March 2004
• YL (Call Centre) has serviced 60 000 callers in
  last year
• Internet Portal now live!
• SAY! to be launched in June 2004
• Service Provider Institutional Infrastructure and
  Capacity Developed
• 13 YACs operational
• YACs have serviced 86 554 direct beneficaries and
  benefited 408 indirect beneficiaries

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Achievements since 2001 - Continued

• CDMP
• 46 Information Products developed in key
  information areas and converted for the web (CDMP
  Information Products)
• Database of 18 000 Youth Service Providers
• Database of careers and 900 bursaries
• 20 Project Management Resources developed
• IP has deployed an information site, corporate
  site and also systems for the development,
  management and dissemination of content (Internet
  Portal Screenshot)
• SAY! is conservatively expected to reach 65 000
  in Year 1 young people in 2004/5

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CDMP Information Products
Information Stream Titles
Employment You and the Workplace A Guide for Young People Using Labour Market Information A Guide for Young People Fact Sheet Special Public Works Programmes Industry Profiles
Entrepreneurship From Idea to Opportunity A Guide for Young People Getting Business Finance A Guide for Young Entrepreneurs Starting Your Own Business A Guide for Young Entrepreneurs Writing a Business Plan A Guide for Young Entrepreneurs Starting a Co-operative A Guide for Young People Networking Your Way To Business Success A Guide for Young Entrepreneurs
Education and Training Career Planning and Development A Guide for Young People Education and Training Options in South Africa A Guide for Young People A Learners Guide to Higher and Distance Education Careers and Occupations Directory for Young People
Citizenship Fact Sheet Establishing and Running Community Committees Fact Sheet Types of Organisations Working In and With Communities Fact Sheet How to Raise Funds Fact Sheet Public Participation Getting Involved in Decision-Making that will Affect Your Community Fact Sheet What are My Right s and Responsibilities as a Volunteer? Fact Sheet Why Should I Volunteer? Fact Sheet Making Use of Volunteers Is My Community Project Working? A Basic Guide to Evaluation Lets Get Involved with Our Communities A Guide Understanding My Communitys Needs A Guide Developing Life- Skills for Citizenship A Guide Get Active! Youre A South African My Rights and Responsibilities as a South African Citizen What Does Democracy Mean for Me? The Nuts and Bolts of Volunteer Programmes and Policy Understanding Volunteering A Guide for Young People
Health and Wellbeing Coping with Teenage Pregnancy A Guide for Young People Dealing with HIV/ AIDS in the Workplace A Guide for Young People Fact Sheet Substance Abuse and Addiction Fact Sheet Do I Have a Substance Abuse Problem? Fact Sheet How Substance Abuse Affects Your life Fact Sheet Sexually Transmitted Infections Fact Sheet Preventing HIV/AIDS Fact Sheet Voluntary Testing and Counselling Fact Sheet Positive Living Fact Sheet Healthy Eating Fact Sheet The ABCs of Good Health Fact Sheet Leisure and Fitness Safe Sex Revolution A Guide for Young People
back
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Lessons Learned

• UYF Investments
• UYF investments are skewed to infrastructure,
  labour, capacity building and operational costs
• Currenty the average YACs costs are
• 45 on Infrastructure and Operations
• 40 on Labour and Capacity Building
• 15 on Direct Programme Related (some programme
  costs are built into Labour costs)
• Scale and Sustainability will be achieved through
  Partnerships (to be covered later)

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Partnerships, Sustainability and Scale

• Key Principles of Sustainability
• Working through Infomediaries
• Deploying innovative dissemination tools
  Internet Portal, Community Print Media, Radio,
  On-demand Print, On-demand Mulit-media
  Datacasting
• Through Partnerships with
• GCIS 2000 Points of Presence (POPs), databases
  of 5000 government services
• MPCCs projected 50 sites nationally
• USA Telecentres projected 100 sites nationally
  with internet connectivity
• DoL Labour Centres approximately 150 sites
  nationally
• Local Governments - approximately 290 local
  governments
• LoveLife Centres as sites for info
  dissemination
• Strategic partnerships with Youth Formations and
  Bodies SAYC, NYC, etc.
• Network of Municipal Libraries
• Network of Higher Education and FET Institutions
  Libraries/ Student Centres
• Mindset Livelihoods Channel 800 000 households,
  2000 schools
• Community Radio average of 80 000 listenership
  per station
• Use Youth Advisory Centres for learner
  recruitment reference purposes

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CIC going forward

• Key to CIC Impact
• Move Information Content to where Young People
  are focus less on physical infrastructure and
  more on creating access
• Use ICT to effectively develop, manage and
  disseminate content
• Target UYF investments to information content
  development and training of infomediaries
• Ensure integration with partners who share common
  purpose

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Performance

• UYF pioneering almost all the initiatives in
  South Africa
• 2 years of programme experience. Growing i.t.o
  geographic coverage scale
• Received R855 milliion, committed R500 million to
  88 projects. More than 100 000 young people have
  participated in UYF projects

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Challenges

• Risk of being perceived as a panacea
• Improving access especially for rural areas
• Launch of the Take it to the People concept
• Recruitment of Prov. Coordinators
• Dependancy on partners
• Youth development agenda not mainstreamed
• Diminishing resource base (sustainability)
• Capacity (internally externally)

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Challenges

• Capacity of Service Providers OD,
  accreditation, partnerships job development
• Formalise partnerships with the public and
  private sector institutions sustainability