SETASA

1
Presentation to Parliaments Portfolio Committee
on Labour 10 August 2004
2
Vision

• Skills
• for
• global competitiveness

3
Mission

• To create opportunities in the secondary
  agriculture sector for
• economic and
• employment growth
• through skills development

4
Agriculture Jobs!

• A direct investment
• in the
• agricultural sector
• has been shown to create
• twice as many jobs
• as the
• manufacturing sector.
• (Sunday Times Business Times, March 14 2004)

5
The Case for Agriculture

• Provides 10.5 of all jobs in the economy through
  direct employment
• Provides 16 of all jobs in the economy through
  indirect employment
• Contributes 5 to GDP
• (Sunday Times Business Times, March 14 2004)

6
The Case for Agriculture (cont.)

• Is the top employment generator for people with
  low skills and literacy levels
• Provides wealth creation and poverty alleviation
  opportunities for 13 million rural South Africans
• (Sunday Times Business Times, March 14 2004)

7
Strategic Objectives (SSP - 2000 to 2005)

• To address the low skills base of the secondary
  agriculture sector
• To develop and implement Learnerships
• To facilitate the development and implementation
  of appropriate skills programmes for the sector

8
Strategic Objectives (cont)(SSP - 2000 to 2005)

• To implement skills programmes aimed at SMMEs
• To implement awareness programmes on HIV AIDS,
  safety, business principles and relationship
  skills

9
Strategic Objectives (cont)(SSP - 2000 to 2005)

• To make Learnerships available to new entrants
• To make skills programmes available to new
  entrants

10
The Current State of AffairsA Critical
Assessment of SETASA
11
Problems Identified(Nov 2003 Mar 2004)

• Ineffective systems
• Financial Management
• Grants Administration
• Learnerships
• ETQA

12
Problems Identified (cont.)(Nov 2003 Mar 2004)

• Lack of reliable baseline data and integrated MIS
• Urgent need to fast-track delivery
• Protracted delays in registering qualifications
  and learnerships

13
Problems Identified (cont.)(Nov 2003 Mar 2004)

• Inadequate staffing structure
• Dysfunctional governance structure
• Impractical working environment

14
Additional Challenges

• Need to increase SETASAs profile within the
  Secondary Agriculture sector
• Need to meet the expectations of the Secondary
  Agriculture sector, the DoL and the public

15
Renewal StrategyA multi-faceted Integrated
Intervention Framework
16
Action Taken 2003 to 2004

• Integrated Quality Management System (QMS)
  developed
• New Financial, Grants and IT Administration
  Systems implemented

17
Action Taken (cont.)2003 to 2004

• New Mandatory and Discretionary Grants
  Application and Management Systems developed and
  implemented
• Accreditation and Audit System to Operationalise
  the ETQA Function developed and implemented

18
Action Taken (cont.)2003 to 2004

• Learnership Management System developed and
  implemented
• New Business Plan approved by DoL
• DoL reporting and other requirements met

19
Action Taken (cont.)2003 to 2004

• Roadshow successfully presented in 4 Provinces
  reaching over 200 stakeholders
• Increased presence of SETASA in sector
• New Logo, Vision and Mission

20
SETASAACHIEVEMENTS2003/2004
21
Achievements Finance and Grants Disbursements

• R77,5 million disbursed in Mandatory Grants
  (2003/04 - R31.35 million)
• R13,7 million of Unclaimed Surplus Awarded as
  Discretionary Grants for Learnerships
  Implementation and Strategic Projects

22
Achievements Finance and Grants
Disbursements(cont.)

• Unqualified Audit for 2003/2004 fiscal year
  (qualified in 2002/03)
• R6,7 million spent on Special Projects

23
Financial Overview
PER YEAR 2001 2002 2003 2004
PER YEAR R000 R000 R000 R000
Project expenses paid - 1 131 2 888 2 655
Adjusted income 20 640 43 715 51 716 58 063
Income variance - 112 18 12
Administration costs 1 391 3 612 4 808 5 107
Administration cost variance - 160 33 6
Administration surplus - Rand 3 769 690 1 133 1 209
Administration surplus - 83 16 19 19
Income adjusted for changes in estimates in
respect of previous years
24
Surplus Funds Projects
Total Allocated R32,2 million
Total Spent R6,7 million
Total Awarded R13,7 million
CUMULATIVE 2001 2002 2003 2004
CUMULATIVE R000 R000 R000 R000
Surplus funds available (A) 16 250 20 729 34 047 61 060
Surplus funds allocated (B) 0 8 503 32 267 32 267
(B) as of (A) - 41 95 53
Surplus funds spent (C) 0 1 131 4 019 6 674
(C) as of (B) - 13 12 21
25
Mandatory Grants
Total Paid R77,5 million
PER FINANCIAL YEAR 2001 2002 2003 2004 TOTAL
PER FINANCIAL YEAR R000 R000 R000 R000 R000
Mandatory grants paid 60 2 326 11 605 25 104 38 440 77 525
Adjusted income 60 10 094 30 523 37 368 40 474 118 459
Overall pay-out 65
50 for the 2001/02 Financial year
26
AchievementsSkills Planning

• 455 Employers Participating in Skills Development
  
• 237 from employers with lt 50 employees
• 95 from employers with 50 to 150 emplyees
• 123 from employers with gt than 150 employees
• SMME Strategy implemented
• Skills Strategy for Fruit Packaging and
  Processing Industry developed

27
AchievementsSkills Planning (cont.)

• Skills research study on the Secondary
  Agriculture Sector completed
• Capacity building programme provided to 600 SMMEs
  
• 6 enterprises committed to IiP

28
AchievementsQuality Assurance

• 300 Assessors trained
• 6 MoUs signed with other ETQAs
• 15 ET Providers provisionally accredited

29
AchievementsLearnerships Skills Programmes

• 30 Managers trained on HIV Aids policy
  formulation and procedures
• 1012 Learners completed ABET training (additional
  2000 in system)
• 36 Learnerships registered

30
AchievementsLearnerships Skills Programmes
(cont.)

• 500 new learners (under-30) in Learnerships and
  apprenticeships
• 231 HET bursaries awarded
• 870 new learners in Learnerships funded through
  discretionary grants

31
AchievementsGovernance

• Identified critical weaknesses in existing
  governance structures
• Developed plan for improving and strengthening
  governance

32
Achievement Against DoL TargetsObjective One
Life long learning
33
Achievement Against DoL TargetsObjective Two
Fostering Skills Development in the formal economy
34
Achievement Against DoL TargetsObjective Three
Stimulating and Supporting Skills Development in
Small Businesses
35
Achievement Against DoL TargetsObjective Four
Promoting skills development for employability
and sustainable livelihoods through social
development initiatives
36
Achievement Against DoL TargetsObjective Five
Assisting new entrants into employment in labour
market
37
Key Priorities2004/2005

• 3000 additional ABET learners in learning
  programmes
• 40 Moderators/Verifiers trained
• 30 ET Providers accredited

38
Key Priorities (cont.)2004/2005

• 38 Learnerships registered
• 1000 learners in Learnerships
• MoUs with 5 additional ETQAs

39
Key Priorities (cont.)2004/2005

• Capacity building programmes for 578 additional
  SMMEs
• 20 enterprises committed to IiP
• Mandatory grants paid quarterly

40
Key Priorities (cont.)2004/2005

• 1500 learners in skills programmes
• 3 generic NQF L1 Learnerships registered
• Staffing and governance problems resolved

41
Key Priorities (cont.)2004/2005

• Unit Standards and Qualifications for Pest
  Control, Poultry and Fibre sectors registered
• All surplus funds committed to discretionary
  grants and special projects

42
Thank You!