DEPARTMENT OF BASIC EDUCATION · 9/6/2018 · • The implementation of the National Skills Development Strategy Three (NSDS III) and the SETA institutional landscape was due to

Department of Higher Education and Training

National Skills Development Plan

(NSDP)

Presentation to the National Skills Authority

Thursday, 6 September 2018

PART A:

National Skills Development Plan Background

National Skills Development Plan Principles

National Skills Development Plan Outcomes

National Skills Development Plan Institutional Arrangement

PART B:

SETA Landscape

2

NATIONAL SKILLS DEVELOPMENT PLAN OUTLINE

3

• The implementation of the National Skills Development Strategy Three (NSDS III) and

the SETA institutional landscape was due to lapse on 31 March 2016.

• In light of the above, the Department of Higher Education and Training (DHET) set in

place a process to develop proposals to review the NSDS III and the SETA institutional

landscape.

• The DHET considered two sets of documents to conceptualise the proposals for the

NSDS III and the SETA institutional landscape:

Policy Instrument : The White Paper for Post-School Education and Training

outlines the policy imperatives of integrating the skills development system as a key

component of the post-school education and training system.

Reports: Two key reports with recommendations based on the evaluation of the

performance of the SETAs and the skills development system were produced. These

reports are - the Ministerial Task Team report on SETA Performance as gazetted in

2013 and the Human Resource Development Council Skills System Review report of

2014.

• The WP-PSET and review reports underpinned the proposals for reviewing the skills

development system, specifically the NSDS and the SETAs.

NATIONAL SKILLS DEVELOPMENT PLAN BACKGROUND

4

• The first proposal on the NSDS and SETA Landscape review was outlined on the NSDS and

SETAS Landscape proposals for post 2016 (NSLP 2016).

• The NSLP was issued by the Minister of Higher Education and Training (MHET) on

10 December 2015 for public comment.

• The MHET was inundated with requests to extend the period of engagement and consultation

on the proposals for the SETA Landscape. Considering the nature and scope of the proposals to

transform and review the SETAs, the Minister approved that the NSDS III and SETA Landscape

be extended until 31 March 2020 so as to provide sufficient time to engage on the proposals and

recommendations to transform and review the SETAs.

• Further, the public comments, consultation with the National Skills Authority (NSA),

engagements at National Economic Development and Labour Council (NEDLAC), presentation

to the Portfolio Committee and inter-government department engagements highlighted a

number of concerns and recommendations in relation to the proposals outlined in the NSLP.

• The main concerns included that the review did not include recommendations related to other

skills development institutions such as the Quality Council for Trades and Occupations, the role

of the National Skills Authority and the National Skills Fund. Secondly, the proposals would

require radical shifts which would result in the system focusing on aligning institutional

arrangement shifts instead of skills development interventions. In the main, the NSLP was not

supported.


5

• The second iteration of proposals outlined in the National Skills Development Plan (NSDP) were

informed by the comments received on the NSLP, while also working closely with the WP-PSET

planning task team. In addition, the National Development Plan (NDP) provided a key basis for

refining the proposals for the Skills Development System.

• As such the proposals of the NSDP was extended to a skills development system and strategy

review. Thus it is beyond just being a SETA Landscape review.

• The refinement of the proposals of the NSDP stems from a lengthy process of engagement and

consultation with NSA, NEDLAC, intergovernmental engagements, Sector Education and

Training Authorities (SETAs), Quality Councils (QCs) as well as a public comment phase.

• The NSDP proposals including the principles and outcomes are in the main supported as per

public comments and engagement phase outputs.

• The NSDP was approved by the MHET in 2018 with further refinements and the introduction of

specific outcomes for the skills system.

• The NSDP is now being presented to the NSA and key stakeholders for final consideration.


6

Vision

An educated, skilled and capable workforce for South Africa

Key Policy Instruments

- National Development Plan

- New Growth Path

- White Paper for Post-School ..System

- Industrial Policy Action

Contribution towards

- Economic growth - Employment creation - Productivity - Social Development

Shifting to a Longer-term Plan


7

PRINCIPLE 1: Locating the NSDP within an

integrated post-school system

• Promoting greater levels of integration within the post school-system: for

planning, funding, monitoring, evaluation

and reporting.

PRINCIPLE 2: Contributing to the

country's socio-economic objectives

• Contribute to strategies and priorities of various sectors of the economy for an inclusive growth.

PRINCIPLE 3: Advancing an equitable and integrated system

• Contribute towards transformational and

developmental imperatives such as gender, race, class, youth, disability and

geography.

NATIONAL SKILLS DEVELOPMENT PLAN PRINCIPLES

8

PRINCIPLE 4: Greater inclusivity and collaboration

• Public and private sector collaborations;

• Strong focus on workplace based learning

opportunities in both public and private sector;

• Quality education and training provision with

strong articulation between programmes and

qualification offerings.

PRINCIPLE 5: Focus on support system for

learners and employers

• Ensure prospective learners and the public are aware of

when and how to access opportunities;

• Employers where required are supported through simplified

processes;

• Standardisation of processes, systems, including

stipends/learner allowances etc

• Harness the use of technology.

PRINCIPLE 6: Strong emphasis on accountability

• Improve governance, monitoring and evaluation,

• Review SETA Standard Constitution Regulations

with stronger emphasis on accountability.


9

PRINCIPLE 7: Understanding demand

• Analysis of sectoral growth, development plans

and labour market – towards evidence based

skills priorities and occupations in demand;

• Research and innovation will be key.

PRINCIPLE 8: Steering supply – qualifications

and provision

• Quality Councils will ensure the design, development and maintenance of

occupational standards and qualifications.

PRINCIPLE 9: Steering funding – funding

mechanisms

• Alignment between levy and fiscus funding.


OUTCOME ONE:

Identify and increase production

of occupations in demand

• Primary aim of determining occupations in high demand

is to improve the responsiveness of the post-school

education and training system to the needs of the

economy and to the broader developmental objectives of

the country;

• National list of occupations in high demand will be

produced and reviewed every two years;

• The methodology of Centres of Specialisation will be

encouraged.

Sub Outcomes

• Targets for priority occupations;

• Targets for priority qualifications; and

• Indication of interventions required to improve enrolment

and completion.

Targets will be set for three year period and annually

determined through service level agreement

NATIONAL SKILLS DEVELOPMENT PLAN OUTCOMES

10

OUTCOME TWO:

Linking education and workplace

• Improving the relationship between education and

training and work is a key policy of the White Paper for

Post-School and Education;

• The WP-PSET is unequivocal that the main purpose of

the TVET is to prepare students for the world of work;

• OECD- TVET systems in 20 countries concluded that a

key feature common to effective TVET systems

everywhere is a focus on training for employment.

Sub Outcome

• Opening of workplace based learning opportunities

increased.

Performance Indicators

• Number of learners requiring work Intergrated learning

placed;

• Number of TVET lectures exposed to workplaces;

• Number of learners participating in other various

workplace based learning opportunities – learnerships,

internships etc

Targets will be set for three year period and annually determined

through service level agreement


11

OUTCOME THREE:

Improving the level of skills in

the South African workforce

• South Africa is challenged by low productivity in the

workplace, as well as slow transformation of the labour

market and a lack of mobility of the workforce;

• From 2010 to 2014 the share of the employed with a

matriculation certificates increased by 2.6% from 49% to

52%, whilst the share of employed with tertiary

education increased from 19.3% in 2010 to 20.5% in

2014; and

• The number of and share of the employed with primary

completed or lower was still over 2 million workers in

2014.

Sub Outcome

• Increase the number of workers participating in various

learning programmes from 37% in 2016 to the minimum

of 80% by 2030.


• Number of workers trained and supported.




12

OUTCOME FOUR :

Increase access to occupationally

directed programmes

• NDP sets the target of 30 000 artisans produced

annually by 2030, this is an indication that South

Africa’s intermediate skills base is too low to

support the country’s socio-economic

development goals.

Sub Outcomes

• Occupational qualifications developed; and

• Increase access for intermediate and high level

skills.


• Number of qualifications developed;

• Number of artisans produced;

• Dedicated grant for artisan development;

• Artisan recognition of prior learning prioritised;

• Partnerships established.

Targets will be set for three year period and

annually determined through service level

agreement


13

OUTCOME FIVE:

Support the growth of the public

college system

• The NDP situates TVET Colleges as critical pillars for social and

economic development;

• Countries with strong TVET colleges have good relationships

between industry and the TVET Colleges;

• Community Education and Training (CET) Colleges will cater for

the knowledge and skills needs of the large number of adults

and youth requiring education and training opportunities;

• Stats SA estimates that more than 18 million people above 20

years have educational levels below the National Senior

Certificates;

• More than 3.3 million youth aged 15-24 years and 4.6 million

aged 25-34 years who are not in education, employment or

training (NEET).

Sub Outcomes

• Support the TVET and CET Institutional Types


• Support of Centres of Specialisation;

• Support colleges implementing occupational programmes;

• Number of learners in workplace based learning opportunities

and lectures exposed to workplace; and

• Number of skills development support for the local small

business and cooperatives.


14

OUTCOME SIX:

Skills development support for

entrepreneurship and

cooperative development

• It is estimated that SMMEs contribute more than 30%

to South Africa’s GDP. With regard to employment,

SMMEs absorb about 70%-80% of the employed

population but contribute less than 4% to export

earnings;

• Support for the cooperatives can play an important

role, not just in the margins, but in the mainstream of

the economy.

Sub Outcomes

• To increase support for entrepreneurial activities and

the establishment of new enterprises and

cooperatives.


• SETAs identify in their skills planning research,

established and emergent enterprises and

cooperatives and their skills needs;

• Number of entrepreneurship and cooperative activities

supported by skills levy institutions; and

• Number of workplace based learning opportunities

created.




15

OUTCOME SEVEN:

Encourage and support worker

initiated training

• Trade unions, their educational programmes

as other worker-initiated programmes, play an

important role in skilling workers in broader

sectoral policy and capacity to effectively

engage in the workplace and broader

economy;

• Worker initiated education and training can

also contribute to the workforce that is better

able to understand the challenges facing the

economic sectors in which they operate.


Skills Levy Institutions will work with the trade

unions in their sectors in identifying the required

skills needs, especially to better understand their

sectors and implement relevant interventions.

Targets will be set for three year period and

annually determined through service level

agreement


16

OUTCOME EIGHT:

Support career development

services

• One of the milestones in someone’s life is to make

a career choice, this decision will have significant

impact on the rest of someone’s life;

• The NDP talks about the need for every individual

to ‘embrace their potential’, this embracing and

freeing up is critical to the nations socio-economic

development;

• Career development services therefore, do not just

aim to provide quality career and study related

information and counselling but also contribute to

the larger goal of assisting people our people to

embrace and fulfil their potential; and

• The OECD (2017) Report – Getting Skills Right in

South Africa calls for the provision of a tailor made

career advice services to students early on, based

on better skills needs.


• Career development must be accessible especially

in rural areas and for targeted beneficiaries of the

NSDP and prioritisation of both sectoral and

government priorities.


17

•Understanding demand and signalling implications for supply

•Steering the system to respond to skills supply;

•Supporting the development of the institutional capacity of skills

providers;

•Performing system support functions and managing budgets

Scope of SETAs

•Stakeholder Driven Boards;

•Limit Board Size determined by DHET based on sector;

•Limited duration

•Board focus on Strategic (not operational) and DHET determine

remuneration;

•Administrator appointed based on review report by an Assessor appointed by the department.

Accounting Authorities

•Oversight role in accordance with Public Finance Management Act,

Skills Development Act and applicable envisaged Regulations

Executive Authority/DHET

•Longer term planning aligned to MTSF and fiscal allocation to

educational institutional planning;

•Reporting – non performance re claw back.

Planning, Reporting and Accountability

•Levy at 1% (NSF =20 and SETAs = 80%);

•Mandatory Grant, Discretionary Grant and Administration Budget to be reviewed in alignment with

the NSDP.

Funding

•Strengthen the role of NSA for monitoring and evaluation;

•Strategic advice on improvement of the skills development system;

•Be an expert body in skills development.

National Skills Authority

NSDP INSTITUTIONAL ARRANGEMENTS

18

•Focus on the unemployed;

•Not in Employment Education and/Training;

•Community Education and Training Sector;

•Government priority programmes;

•Small business and cooperative development;

•Research in post-school

National Skills Fund

•Ensure that the required occupations are available : design, development and maintenance of occupational standards and qualifications;

•Funding to be reviewed;

•Quality assurance functions held by SETAs and National Artisan

Moderation Body will be performed by QCTO.

Quality Council for Trades and Occupations

•Social partners will continue to play an active role, i.e. in Accounting

Authorities and the NSA for the implementation, monitoring and

evaluation of the NSDP.

Social Partners

NSDP INSTITUTIONAL ARRANGEMENTS

19

SETA landscape review is guided by Section 9 of the Skills Development Act, 97 of 1998 (as

amended). The following principles have been crafted to guide further the process:

Fit for purpose Comprehensive

coverage

Viability and

sustainability

Value chain and

proposition

•Align skills

development strategies

with national priorities

and industrial policy

framework

•Coverage of all

economic sectors;

•Employer based

(inclusivity);

•No special interest

SETA; and

•Alignment with the

employment equity

•Ability for the SETA to

sustain functions and

improve performance;

•Securing sustainable

income (levy) and

resource based

(financial viability) to

support meaningful

skills development

interventions;

•Operational and skills

development activities

based on funds

available to the SETA

and funds distribution

leverages value add for

skills development in

the sector (financial

Management.

•SETAs dealing with

related functions to be

grouped together.

PROPOSED SETA LANDSCAPE

20

No SETA RATIONALE

1. • Agriculture Sector Education

and Training Authority

• Food and Beverages

Manufacturing Industry Sector

Education and Training Authority

Streamline and integrate the value chain of interrelated and

interdependent sectors of forestry, agriculture, food and

beverage subsectors.

2. • Financial and Accounting

Services Sector Education and

Training Authority

• Banking Sector Education and

Training Authority

Insurance Sector Education and

Training Authority


interdependent sectors of finance, accounting, insurance and

investment subsectors.

3. • Public Service Sector Education


• Local Government Sector

Education and Training

• Energy and Water Sector



interdependent sectors of the public service, local government,

energy and water subsectors.


21

No SETA RATIONALE

4. • Construction Education and

Training Authority

• Energy and Water Sector



interdependent sectors by transferring electrical contractors

subsector from EWSETA to CETA.

5. • Manufacturing, Engineering and

Related Services Sector


• Fibre Processing and

Manufacturing Sector Education


Streamline and integrate value chain of interrelated and

interdependent sub-sectors of manufacturing, engineering

clothing textile, footwear and leather and furniture, timber,

printing, packaging and publishing.

6. • Education, training and

Development Practices Sector


No change proposed.

7. • Safety and Security Sector


No change proposed.

8.

• Services Sector Education and

Training Authority

No change proposed.


22

No SETA RATIONALE

9. • Chemical Industries Education


No change proposed.

10. • Media, Advertising, Information

and Communication

Technologies Sector Education


No change proposed.

11. • Transport Education and

Training Authority

No change proposed.

12. • Culture, Arts, Tourism,

Hospitality and Sport Education


No change proposed.

13.

• Wholesale and Retail Sector


No change proposed.

14.

• Health and Welfare Sector


No change proposed.

15.

• Mining Qualifications Authority No change proposed.


23

24

• NSA to provide advise:

1. Finalisation of the NSDP;

2. SETA Landscape;

3. Establishment/ Re-establishment gazette – number of SETAs and

establishment period (31 March 2020 until ?) eg. 10 years linked to

phase in;

4. Implementation plan, role of social partners and the phase in options

including legislative amendments.

5. Other matters arising from the NSDS III Evaluation.

Way Forward

Thank you

Documents

DEPARTMENT OF BASIC EDUCATION · 9/6/2018 · • The implementation of the National Skills Development Strategy Three (NSDS III) and the SETA institutional landscape was due to