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JOBS FUND PRESENTATION. Presenter: Kwezi Dazana Jobs Fund 07 Aug 2012. Background of the Jobs Fund. The Fund was announced by the President during the State of the Nation Address in Feb 2011 - PowerPoint PPT Presentation
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JOBS FUND PRESENTATION
Presenter: Kwezi DazanaJobs Fund07 Aug 2012
BACKGROUND OF THE JOBS FUND
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The Fund was announced by the President during the State of the Nation Address in Feb 2011
The Minister launched the Jobs Fund on the 7th June 2011 and appointed DBSA as an implementing agent
Intention of the Jobs Fund is to partner with projects that will results in the creation of new sustainable jobs.
The Jobs Fund issues grant funding and in return expects sustainable jobs to be created.
WHAT THE JOBS FUND WILL NOT FUND
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Bail out of distressed companies
Start-up companies and initiatives
Training activities that are not linked to job placement
Initiatives with huge capital investment but minimal job creation
potential
Loans or Advances of cash
Double Dipping Funding
FOCUS AREAS OF THE JOBS FUND
Enterprise Development • Investments in product development, local procurement, marketing support,
equipment upgrading or enterprise franchisingInfrastructure Investment
• Local infrastructure investment projects such as light manufacturing enterprise zones, local market and business hub facilities, critical transport and communication links and upgrading of infrastructure servicesSupport for Work Seekers
• Support programmes with a particular focus on unemployed young people such as job search projects, training activities and support for career guidance and placement servicesInstitutional Capacity Building
• Projects aimed at strengthening institutions through which jobs are created
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TARGETED BENEFICIARIES
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Public Sector
Municipalities
Government departments
Public entities
Private Sector Business enterprises
Non Government Sector NGOs CBOS
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ALLOCATIONS AS PER MTEF
Year 1 R2,0bn
Year 2 R4,5bn
Year 3 R2,5bn
Total R9bn
GUIDING PRINCIPLES OF THE JOBS FUND
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• Targeting youth unemployment, skills and enterprise development• Partners with existing innovative approaches to employment creation • Partners with intermediaries for the support of SMME development• Provides once-off grants per project only repayable if utilised
inappropriately • Support projects on a co-financing ratio of 1:1 • Focus on developmental return rather than financial return• Focuses on project risk (viability of the project) and not credit risk
CRITERIA FOR PROJECT APPROVAL
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Eligibility Impact Due diligence Track record Private sector led/linkages Commercial basis No outstanding legal
decisions Matched funding
Potential for job creation Innovation Additionality Sustainability Capacity to implement Contribution to economic
development
APPLICATION PROCESS
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Approval Phase
1. Investment Committee Approval
Submission of Appraisal report to the Investment Committee
No Reject/Amend
Yes Approve
Investment Committee
Approval Phase
1. Investment Committee Approval
Submission of Appraisal report to the Investment Committee
No Reject/Amend
Yes Approve
Investment Committee
Pre Approval Phase
1.Initial screeningBusiness plan/ proposal
2. Evaluate against Jobs Fund Criteria
No Reject
Yes Engage
3.Preparation of Appraisal Report
Expert Team of Assessors
Pre Approval Phase
1.Initial screeningBusiness plan/ proposal
2. Evaluate against Jobs Fund Criteria
No Reject
Yes Engage
3.Preparation of Appraisal Report
Expert Team of Assessors
Post Approval Phase
1. Implementation Implementation
plan Sign off
Agreement Disbursement of
funds
2.Monitoring/ Supervision
Project ManagementMonitoringReporting
3. ExitEvaluateClose Out Report
DBSA
Post Approval Phase
1. Implementation Implementation
plan Sign off
Agreement Disbursement of
funds
2.Monitoring/ Supervision
Project ManagementMonitoringReporting
3. ExitEvaluateClose Out Report
DBSA
Request for Proposals
Request for Proposals
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REGIONAL BREAKDOWN OF APPLICATIONS 1ST WINDOW
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LESSONS LEARNT FROM CALL FOR PROPOSALS
• Eligibility– No co-funding– Minimum funding requirements not met
• Competitive fund– In First Call for Proposals 2,651 applications worth R320 billion
competing for R2 billion • Linkage to jobs
– No link between funding and jobs to be created• Funding models
– Project finance or balance sheet funding not job related
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SECOND CALL FOR PROPOSALS CLOSED IN MAY
• All applications were submitted electronically i.e. no manual applications
• Each application – gets unique reference number• Develop Competitive Analysis Report (CAR)• Develop Concept note and CAR on projects to Committees• Investment Committee(IC) determines cut-off on CAR and
concepts to full appraisal• Full due diligence and full appraisal• Appraisal to committees, IC approves or rejects• Contracting and implementation
REGIONAL BREAKDOWN OF APPLICATIONS FROM 2ND WINDOW
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Window
EC FS GTG KZN LIM MP NC NW WCGrand Total
ED 49 17 186 80 14 23 4 17 97 487
ICB 7 8 51 10 5 4 5 23 113
INF 25 2 41 24 7 7 2 11 30 149
WORKS 11 5 92 23 6 6 4 48 195Grand Total 92 32 370 137 32 40 6 37 198 944
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FRAMEWORK FOR PROJECT PIPELINE
Project origination per Province– Extend Jobs Fund footprint – Ensure a more balanced Provincial breakdown– Allows easier access to clients during appraisal
Preparations to date– Jobs Fund has partners with DFI’s in all Provinces and currently using their
offices for appraisal and meeting applicants– Jobs Fund teams structured to originate per Province
FRAMEWORK FOR PROJECT PIPELINE CONTINUED
• Introduce the Jobs Fund and its criteria to prospective businesses• Establish networks• Share lessons learnt• Build strong relations and linkages in all provinces• Assist and guide prospective applicants (e.g. SMME’s)• Structure projects in preparation for the next window• Prepare for third call of proposals which is anticipated to be towards the end of
the year
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