Frank Groenewald Prague 10 November 2006 The South African Skills Development System.

Frank Groenewald

Prague

10 November 2006

The South African Skills Development System

Current reality

1. 46 Million People

2. Strongest economy in Africa

3. Per capita income the highest it has ever been

4. Stable and growing economy

5. Stable government system

6. High unemployment

7. HIV/AIDS

8. Poor education system

9. Lack of skills

10. Crime

List of Acronyms

• BEE Black Economic Empowerment

• DOL Department of Labour

• NSA National Skills Authority

• SGB Standards Generating Bodies

• SAQA South African Qualifications Authority

• ETQA Education and Training Quality Assurance

• SARS South African Revenue services

• SETA Sector Education and Training Authority

• SMME Small Micro and Medium Enterprises

SDA Legislative objectives• Developing a culture of high quality lifelong learning;

• Fostering skills development in the formal economy for productivity and employment growth;

• Stimulating and supporting skills development in small businesses;

• Assisting new entrants into employment to make South Africa a more equal place for everyone;

• Stimulate and support skills development in SMME’s;

• Improve employment prospects for previously disadvantage persons and Assist new entrants into the labour market;

• Promote opportunities for skills development in development initiatives.

SAQA objectives

• Integrated National Framework

• Facilitate access, mobility and progression with Education & Training

• Enhance Quality of Education & Training

• Accelerate the redress of past discrimination in Education & Training

• Full personal development of each learner

• Social & economic development of the nation at large

FITTING IT ALL TOGETHER

Department of Education

NSBs

Department

of Labour

ETQAs

(per industry sector)

SGBs

Training Providers

Assessors

National Skills Authority

SETAs

(per industry sector)

COMPANY

Skills Development

Planning unit

SAQA

SARS

Refund

Standards Quality

DOL NSA

22 SETAs

The flow of funds

National Skills Authority 20%

SETA Operations 10%

Mandatory Grants 50%

Discretionary Grants 20%

BANKSETABanking Sector Education

and Training Authority

“To support transformation and people development and through

partnerships, to enable stakeholders to advance the national and global position of the broader banking and

microfinance industry”.

BANKSETA Mission

THE SECTOR

Banking sector scope

Central banking Discount houses, commercial and other banking Building Societies Financial mediation Lease financing Securities dealings Activities ancillary to financial mediation

Major issues for bankingPWC Report 2005

1. Most Important Developments (Finance Sector Charter (HR most difficult) and Regulation)

2. Market Competition (Corporate vs Merchant and Investment banking, Retail, Home loans and Vehicle finance extremely competitive)

3. Drivers of Change (Foreign Entrants replace Technology)

SA Financial Services Conference 2005

1. Growing regulatory pressures (58/102 Act impact on banking)2. Pressure on bank charges3. Disintermediation and increased competition4. Diversification of income streams5. The Finance sector Charter6. Competition for good talent7. BEE Importance and Opportunities

 Provincial Employment Profile

6%4%

58%

11%

3%1%2%

2%

13%

Eastern CapeFree StateGautengKwaZulu-NatalMpumalangaNorthern CapeLimpopoNorth WestWestern Cape

BANKSETA Success factors

• Committed and Informed Sector

• Competent Council/Board providing strategic direction.

• Strong culture of corporate governance, ownership and ethics.

• Clear vision and objectives.

• Knowledgeable, competent, committed staff.

• Strong culture of needs driven delivering.

• Strong focus on evaluation and feedback

1. Accelerate social transformation through skills development: (85%,Black, 54% women, 4% disabled.)

2. Leverage the skills levy funds for the strategic benefit of the sector and the NSDS

3. Be cost-effective and co-source non-core delivery mechanisms.

4. Employ leading edge technology and best management practices.

5. Conduct research and benchmarking in order to improve the sector’s competitiveness through skills development.

6. Be a hub for sector collaboration.

BANKSETA principlesof operations

1. Information Technology related skills development

2. Management and Leadership skills development

3. Customer Interface related skills development

4. Specialist Financial skills development

5. Legislative Compliance related skills development

SKILLS DEVELOPMENT PRIORITY AREAS (critical skills)

1. Finance Sector Charter

2. Youth development

3. Consumer Education

4. SMME Development

5. Research, Benchmarking and Communication

BANKSETA STRATEGIC FOCUS

(Sector and National)

Strategy MatrixBANKSETA Finance

Sector Charter

SME Develop-ment and Support

Youth Develop-ment

Adult Education and CPD

Research Benchmar-

king and Communi-cation

Objective 1: Prioritizing and communica-ting critical skills for sustainable growth, development and equity

Skills audit for Banking

Research :

• Scarce

skills

• Future

skills

Skills Audit for Micro Finance

Career Guidance

Co-Operative Banks Shareholder Development

• Saratoga human capital benchmarking • ASTD Conference• BANKSETA International Conference

Strategy MatrixBANKSETA Finance

Sector Charter

SME Develop-ment and Support

Youth Develop-ment

Adult Education and CPD

Research Benchmar-king and Communi-cation

Objective 2: Promoting and accelerating quality training for all in the workplace. 

• Woman development projectDevelopment Project•International Executive Development Programme•Middle Management development programme

• SME

Voucher

programme

• CPD for

SME

market

• Building a

better

Business

• Investors in

People

Initiative for

SME

• 18.1

Learner-

ships

• CPD for

large and

Medium

firms

• Masters

Bursary

Scheme

• Abet

Support

• Lender

Education

•Investors in People Initiative

Strategy MatrixBANKSETA Finance

Sector Charter

SME Develop-ment and Support

Youth Develop-ment

Adult Education and CPD

Research Benchmar-king and Communi-cation

Objective 3: Promoting employability and sustainable livelihoods through skills development.

Co-Operative bank staff development

Strategy MatrixBANKSETA Finance

Sector Charter

SME Develop-ment and Support

Youth Develop-ment

Adult Education and CPD

Research Benchmar-king and Communi-cation

Objective 4

Assisting designated groups, new entrants in work-based programmes

Learnerships for unemployed people

•Graduate learnership for unemployed

•Bursaries

•Bridging Programmes

•New Venture Creation

Strategy MatrixBANKSETA Finance

Sector Charter

SME Develop-ment and Support

Youth Develop-ment

Adult Education and CPD

Research Benchmar-king and Communi-cation

Objective 5: Improving the quality and relevance of provision

BEE Training provider capacity building

Centres of Excellence

Lessons from the trenches

• Focus (Don’t try to be all things to all people.) • Cluster where appropriate (To Big or To Small) • Have principles of operations• Do not over regulate• Do not over engineer the process (Keep it simple)• Remember the research and benchmarking component• Don’t get discouraged (grudge purchase)• Have a long term vision• Evaluate and Advance• Prove that you are making a difference• Market and Communicate

The way Forward

Think Big

Start Small

Scale Fast

• Address• Block no. 15

• Thornhill Office Park

• 94 Bekker road

• Midrand

• Telephone• 011 805 9661

• Fax• 011 805 8348

• Call Centre• 086 102 0002

• Website• www.bankseta.org.za

Thank you