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

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Title: 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

3
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

4
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.

5
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
6
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.

8
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.

10
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.

11
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.

12
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

13
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.

14
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

15
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

16
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.

17
Thank You
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