The South African Skills Development System Frank Groenewald

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

Current reality 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 46 Million People Strongest economy in Africa Per capita income the highest it has ever been Stable and growing economy Stable government system High unemployment HIV/AIDS Poor education system Lack of skills 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 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 Department of Labour SAQA Skills Development National Skills Authority Planning unit Standards Quality SETAs (per industry sector) NSBs ETQAs (per industry sector) SGBs Assessors Training Providers DOL NSA Refund SARS COMPANY 22 SETAs

The flow of funds National Skills Authority 20% SETA Operations 10% Mandatory Grants 50% Discretionary Grants 20%

BANKSETA Banking Sector Education and Training Authority

BANKSETA Mission “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”.

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 banking PWC Report 2005 1. 2. 3. Most Important Developments (Finance Sector Charter (HR most difficult) and Regulation) Market Competition (Corporate vs Merchant and Investment banking, Retail, Home loans and Vehicle finance extremely competitive) Drivers of Change (Foreign Entrants replace Technology) SA Financial Services Conference 2005 1. 2. 3. 4. 5. 6. 7. Growing regulatory pressures (58/102 Act impact on banking) Pressure on bank charges Disintermediation and increased competition Diversification of income streams The Finance sector Charter Competition for good talent BEE Importance and Opportunities

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

BANKSETA principles of operations 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.

SKILLS DEVELOPMENT PRIORITY AREAS (critical skills) 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

BANKSETA STRATEGIC FOCUS (Sector and National) 1. Finance Sector Charter 2. Youth development 3. Consumer Education 4. SMME Development 5. Research, Benchmarking and 6. Communication

Strategy Matrix BANKSETA Finance Sector Charter SME Development and Support Youth Adult Develop- Education ment and CPD Objective 1: Prioritizing and communicating critical skills for sustainable growth, development and equity Skills audit Skills Audit Career for Banking for Micro Guidance Research : Finance • Scarce skills • Future skills Research Benchmarking and Communication Co-Operative • Saratoga Banks human Shareholder capital Development benchmarking • ASTD Conference • BANKSETA International Conference

Strategy Matrix BANKSETA Finance Sector Charter SME Development and Support Objective 2: Promoting and accelerating quality training for all in the workplace. • Woman development project Development 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 Youth Adult Develop- Education ment and CPD Research Benchmarking and Communication • 18. 1 Learnerships • CPD for large and Medium firms • Masters Bursary Scheme • Abet Support • Lender Education • Investors in People Initiative

Strategy Matrix BANKSETA Objective 3: Promoting employability and sustainable livelihoods through skills development. Finance SME Develop Youth Adult Sector -ment and Develop- Education Charter Support ment and CPD Co-Operative bank staff development Research Benchmarking and Communication

Strategy Matrix BANKSETA Finance Sector Charter Objective 4 Assisting designated groups, new entrants in work-based programmes Learnerships for unemployed people SME Development and Support Youth Development • Graduate learnership for unemployed • Bursaries • Bridging Programmes • New Venture Creation Adult Education and CPD Research Benchmarking and Communication

Strategy Matrix BANKSETA Objective 5: Improving the quality and relevance of provision Finance Sector Charter SME Development and Support BEE Training provider capacity building Youth Development Adult Education and CPD Research Benchmarking and Communication 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

Thank you • 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