Umsobomvu Youth Fund

1
Umsobomvu Youth Fund

• Presentation to
• Portfolio Committee on Labour
• 17 March 2006

2
Outline of the presentation

• The UYF team
• UYF Products and Services
• Recap of our previous presentation
• Challenges
• Consolidation of audited financials
• Access to UYF services especially rural areas
• Envisaged Plans for 2006
• State of the Nation Address Programme of Action
• Approved plans for 2006/7

3
The UYF Team

• Mr M Kekana Chief Executive Officer
• Ms J Law Chief Finance Officer
• Mr M Ntlangeni Director Process Cycle
  Management

4
UYF Products Services

• Contact Information Counselling
• Counselling, Advice and Referral Information
• Skills Development Transfer
• Training (Graduate Development, Supplier
  Development, Cooperatives Development, and
  Entrepreneurship Education)
• Skills Programmes Project Management Support
  Service
• Business Development Support
• Business Consulting Service (Voucher Programme)
• Volunteer Mentorship Service
• Job and Opportunities Seekers Support Service
  (Graduates Dbase)
• Business Opportunities Support Service
• Enterprise Finance
• Micro loans R1000 to R100 000
• Small loans R 100 001 to R500 000
• Medium loans R500 000 to R8 million

5
UYF Products Services (CIC)

• Content Development and Management
• Provision of Counselling, Advice and Referral
  Information
• Management of the following channels to provide
  the Counselling, Advice and Referral Information
• Mobile Youth Advisory Centres
• The Youth Card
• The Call Centre
• The Internet Portal
• Other electronic communication platforms
  (e-business) including the Mindset Channel.

6
UYF Products Services (SDT)

• Graduate Development Training (provides life
  professional skills including drivers licence,
  writing communication skills, computer
  literacy, etc to graduates to enhance their
  employability).
• Utilise existing project management capacity to
  continue provide coordination project
  management capacity for
• National Youth Service Programme
• FET Colleges Training programme
• Unused Training Facilities programme (to open
  facilities that have been closed but can be
  availed for the training of unemployed youth e.g.
  old mining towns, teachers colleges, etc) and
• Those skills programmes that arise from ASGI-SA

7
Challenges

• Consolidation of Audited Financial Statements
• GAAP requires application of AC132 which
  stipulates the consolidation of underlying
  investments due to control (why control by UYF?).
  
• Materiality level of UYF set at R700 000 due to
  small amount of assets under control and amount
  lent as at year end
• To Address
• Adopting International Financial Reporting
  Standards (fair value reporting i.s.o
  consolidation)- IAS 28

8
Challenges

• Access to UYF services
• Issue is about scale
• Growth limited due to unavailability of viable
  service providers in rural areas. Therefore,
  growth dictated by presence of Service Providers
• To address
• Propose to set up UYF outlets
• Outlets will also facilitate integration of
  services

9
Plans 2005-2006 (highlights)

• Support governments 6 growth target focusing
  especially on the second economy (ASGI-SA)
• Skills development transfer
• Supporting more FET Colleges
• Support project consolidate (DBSA/ Dept of
  Provincial Local govt.)
• Launch the Graduate Development Programme (Social
  Capital for the unemployed graduate)
• Implement Service Programmes along volunteer
  lines e.g. teaching Maths and English, caring
  for orphans or child headed households

10
Plans 2005 - 2006 (highlights)

• Business Development Support
• Expand the Entrepreneurship Education project to
  more schools and provinces
• Increase Entrepreneurship Education for
  out-of-school youth
• Launch the Mentorship voucher product
  reinstatement of the company registration voucher
• Launch the Business Opportunities Support Service
  (linking youth to business opportunities)

11
Plans 2005 - 2006 (highlights)

• Enterprise Finance
• Expand the Cooperative Programme both for
  production coops and savings coops
• Franchise Cadet Programme (with Sanlam Business
  Partners)
• Training of loan officers (up to 500 to serve
  communities to improve access to finance)
• Implementation of pilot UYF outlets at least by
  March 2006
• Enable scaling up of UYF programmes and
• Integration of UYF services.

12
State of the Nation - POA

• Registration of unemployed graduates completed
  and focus turns to finding employment
  opportunities.
• As part of ASGI-SA to increase support to SMMEs
  with special focus on women and youth. Attention
  to ensure programmes are effective.
• 100 New Youth Advisory Centres are to be
  established.
• 10 000 youth to participate in the National Youth
  Service Programme 5000 volunteers to be
  enlisted to provide mentoring support to
  vulnerable children.
• Programmes aimed at skills development and
  business support of the youth will be closely
  monitored to ensure more support for the youth.

13
State of the Nation - POA

• Registration of unemployed graduates completed
  and focus turns to finding employment
  opportunities.
• As part of ASGI-SA to increase support to SMMEs
  with special focus on women and youth. Attention
  to ensure programmes are effective.
• 100 New Youth Advisory Centres are to be
  established.
• 10 000 youth to participate in the National Youth
  Service Programme 5000 volunteers to be
  enlisted to provide mentoring support to
  vulnerable children.
• Programmes aimed at skills development and
  business support of the youth will be closely
  monitored to ensure more support for the youth.

14
State of the Nation - POA

• Registration of unemployed graduates completed
  and focus turns to finding employment
  opportunities.
• As part of ASGI-SA to increase support to SMMEs
  with special focus on women and youth. Attention
  to ensure programmes are effective.
• 100 New Youth Advisory Centres are to be
  established.
• 10 000 youth to participate in the National Youth
  Service Programme 5000 volunteers to be
  enlisted to provide mentoring support to
  vulnerable children.
• Programmes aimed at skills development and
  business support of the youth will be closely
  monitored to ensure more support for the youth.

15
State of the Nation - POA

• Based on 5 yr review following changes were
  adopted
• Major focus to be on linking youth to viable
  opportunities and facilitating exit opportunities
  (in skills programmes) and supporting
  self-employment
• Increase focus on market linkages to promote
  partnerships with government and the private
  sector
• Implement UYF interventions as Products and
  Services as opposed to Programmes and foster more
  internal integration
• Intervene directly as UYF and overtime only
  retain Service Providers in some of the areas
  where necessary
• Dominate and lead the enterprise micro finance
  arena
• Support Accelerated Shared Growth Initiative of
  South Africa (ASGI-SA)
• Utilising UYFs expertise to assist other
  organisations (including government departments)
  to implement youth development programmes using
  their own resources.

16
Highlights 2006/7

• Contact Information Counselling
• 53 Municipalities are to implement YAC points
• JOBS implement programmes aimed at placing
  graduates by focusing e.g. BPO Industry Tourism
• Launch of livelihood channel with Mindset
• Training
• Use of Unutilised Training Facilities (Research
  almost complete)
• Increased intake into National Youth Service
  Programme
• Introduction of the Volunteer Youth Service Corps
  (Big Brothers Big Sisters SA launched)
• Graduate Development Programme Intake
• Use UYF model for defining scaling up the
  Social Sector EPWP programmes (Community Home
  Based Care)

17
Highlights 2006/7

• Business Development Support
• Introduction of the Volunteer Mentorship
  Programme (with organised business formations)
• Launch of Business Opportunity Support Service
• Increased implementation of Youth-in-LED
• Enterprise Finance
• Implementation of two Public Public Partnerships
  with provincial governments
• Northern Cape Fund R15 million (for micro
  small enterprises)
• Free State Fund R10 million (for micro small
  enterprises)
• Potential participation in a Womens Empowerment
  Fund
• Integration of micro finance entities entering
  into a partnership with an International Player

18
Highlights 2006/7

• Support to ASGI-SA
• Framework developed
• Retail Network Management
• Opening of the first UYF managed and operated
  Youth Advisory Centre

19
Thank You

• unleashing the potential of youth