FOREWARD

By the Minister Of Labour

I am pleased to present this National Skills Development Strategy to the people of South Africa. It represents the culmination of research and discussion within the Department of Labour and the National Skills Authority. During November 2000 the draft Strategy was the subject of wide-ranging consultation. The National Skills Authority has reviewed many comments and views that emerged during this consultation. In January 2001 it presented me with recommendations for our country's first comprehensive skills development strategy.

These were recommendations and proposals that I am most happy to accept for a number of reasons.

• First, in this Strategy we have identified for the first time priorities for skills development and set success indicators against which our progress can be measured. Thus the Strategy charts the way ahead for my Department, for the Sector Education and Training Authorities and other key institutions.
• Secondly, the Strategy outlines the contribution that skills development will make to our emerging national human resources development strategy. The Government is committed to the development of the people of South Africa. All Government Departments are working together closely to ensure that our people have education and skills. Thus, for example, the Department of Education is committed to reforms in general schooling, further and higher education. Similarly the Department of Trade and Industry is encouraging innovation and entrepreneurial development. The Skills Strategy outlines the distinctive contribution of my Department to the human resources development programme - and significantly the measures by which its contribution will be assessed. It provides also a framework for all government departments to lead skills development in their sectors.
• Thirdly, I was encouraged by the support that the draft Strategy attracted during the consultation exercise. Although there was a good deal of debate about the precise nature of the success indicators and the wording of objectives, the fundamental approach was endorsed. The concept of setting indicators and measuring progress towards their achievement was much applauded, and this philosophy is a further sign of my Department's commitment to accountability and transparency.

The great challenge is to implement this Strategy and to ensure a more appropriate and sustained investment in our people. This will involve mobilising the active commitment and participation of employers, unions, workers, government departments and communities.

My Department will be responsible for monitoring progress in implementing the strategy. The necessary and appropriate monitoring and reporting systems are being put in place to enable this to happen. I am depending on the National Skills Authority to review the reports prepared by my Department, and if necessary to initiate their own investigations, to advise me on any issues that might require policy review or new implementation approaches. Successes and failures must be recorded so that we can all learn from good practice and from mistakes. The strategy must also be a dynamic one. I am looking forward to receiving reports from my Department, and from the National Skills Authority, on progress in meeting the success indicators. I am also inviting the Authority to keep the targets under regular review to ensure that they continue to meet the most important needs of our country

I would like to thank the many thousands of women and men who have contributed to the development of this exciting strategy. The targets that I am setting are ambitious, but no revolution has succeeded without vision, ambition and determination. Our national skills revolution is no exception. The challenge now is to make a working reality of the vision.

Let's get to work.

February 2001

Skills for Productive Citizenship for All

Preface

It is widely agreed that South Africa is not yet equipped with the skills it needs for economic and employment growth and social development. Hence the Skills Development and the Skills Development Levies Act were passed in 1998 and 1999 respectively. The legislation charged the Minister of Labour to prepare a National Skills Development Strategy, taking into consideration the advice of the National Skills Authority.

The National Skills Authority was established in terms of the Skills Development Act, 1998. It is made-up of representatives from organised business, labour, government and organisations that reflect community and provider interests. Its functions include:

• advising the Minister of Labour on a national skills development strategy;
• liaising with Sector Education and Training Authorities on this strategy, and;
• reporting to the Minister on the implementation of the strategy.

A draft strategy was prepared following discussions within the Department of Labour and the Authority based on research and commissioned studies. In November copies of the draft strategy were circulated to key stakeholder bodies and groups. Workshops were held in each province. The Authority received many comments on the draft strategy. These have all been reviewed and as a result the objectives and success indicators have been revised.

The targets or success indicators that are defined in this strategy will be reviewed annually and if necessary revised. They define priorities and outcomes that can be measured but there is scope to improve data collection and ways in which the impact of the strategy can be measured. In some instances the success indicators measure activities rather than their overall impact. But over time the indicators can be refined to measure outcomes more precisely.

The Department of Labour will prepare regular progress reports on each indicator. The National Skills Authority will review these reports. Through these processes the Minister of Labour will be advised about progress and any emerging problem areas. The Minister may amend or refine the targets if he is persuaded that changes are needed to meet the ever-changing skill needs of the country.

1. INTRODUCTION

1.1 The Government's commitment to promote active labour market policies is well demonstrated in the Skills Development Act, 1998 and the Skills Development Levies Act, 1999. These two pieces of legislation introduce new institutions, programmes and funding policies designed to increase investment in skills development. There are two over-riding priorities that this legislation seeks to address. The first is the ever-present reality of the global economy and the imperative to increase skills to improve productivity and the competitiveness of industry, business, commerce and services. The second is to address the challenges of social development and the eradication of poverty.

1.2 The implementation of the skills development legislation has begun. In April 1999 the National Skills Authority was established. On 20 March 2000, 25 Sector Education and Training Authorities came into being. From 1 April 2000 a pay roll levy was introduced to fund the new skills development implementation framework and to provide grants to encourage employers to invest in training and the development of their staff.

1.3 Many challenges remain to ensure that the legislation is implemented effectively, however. The institutions to promote skills development are only newly established. Many more employers have yet to be convinced of the economic and commercial benefits of skills development. The national qualifications framework is still at an early stage of development and the country requires more, and better prepared, trainers and assessors.

1.4 But a start has been made. This strategy seeks to set priorities and to define indicators to measure progress. The achievement of the indicators will depend upon the work of the Sector Education and Training Authorities, and a commitment to them by public and private employers, workers and other stakeholders. The Department of Labour, through its provincial offices and labour centres, will also play a crucial role in the delivery of the strategy.

1.5 But if this is to be a national strategy it must be shared and owned by government departments, employers, workers and the community, and by the organisations and structures that represent them. The targets, too, must be commonly accepted. It is not enough that people know about them. There must be a shared commitment to their realisation and achievement.

1.6 To achieve this, Sector Education and Training Authorities and the Provincial Offices of the Department of Labour are being asked to commit to sector and provincial targets that are aligned to the national targets. Their own effectiveness and efficiency will be measured against these targets.

1.7 Progress in achieving targets will be monitored by the Department of Labour and the National Skills Authority. At the next, and subsequent, Annual Skills Conferences, a report will be presented on progress made in meeting the targets so that everyone can know how well the country is doing.

2. The Vision

2.1 The title of the Strategy document - Skills for productive citizenship for all - summarises the vision for the future. This vision includes the following:

• skills: financial and other support should be directed towards the acquisition of skills that are needed by employers and communities and that increasingly will reflect qualifications and standards that are part of the National Qualifications Framework. Skills development is about enabling and empowering individuals through the acquisition of competencies that are in demand. It is not about the provision of diversionary activities simply to keep unemployed people active for short periods of time or about merely filling programmes offered by training providers. Skills must be linked to quality provision and qualifications (either in whole or part) that hold currency throughout the country
• productive citizenship: the concept of citizenship in South Africa has been understood mainly in political terms - "the right to vote" and to be consulted. But as poor people, particularly, have discovered the ability to vote is not enough on its own. Citizenship must also include the right to actively contribute to and participate in making decisions that affect investment and work. Skills development is as much about building the capacity of people to engage in these decisions as to execute the roles and functions that will flow from them. In the workplace the decisions are about productivity, the organisation of work and technology; in new and small enterprises they are about entrepreneurship, sustainability and growth and in communities they are about the focus, pace and trade-offs linked to local economic development.
• for all: the vision is an inclusive one. The intention is to create opportunities for those in work as well as for the unemployed; for new entrants to the world of work as well as for older people; for women as well as men and for people with disabilities who for too long have not been valued for their capabilities.

2.2 This Vision is underpinned by six guiding principles:

• lifelong learning: communities and workplaces are changing continuously. If individuals are to shape these changes and take advantage of them to improve the quality of their lives, they need to upgrade and improve their skills continuously
• the promotion of equity: there are not only legacies to be erased but positive interventions are demanded if we are to build an inclusive society and widen opportunities. In recent years there has been a net decline in the number of black people in jobs. Of our 40 million people only 20 per cent have jobs in the formal sector. Of the 4,6 million people who are unemployed, 4,2 million are black and 58 per cent are women. Through skills development we need not only to provide opportunities for disadvantaged groups but also encourage effective collaboration amongst people from diverse backgrounds
• demand-led: for too long skills development has been pursued in the absence of a realistic assessment of how the skills are to be employed. The emphasis will be on the skills and competencies required to support productivity, international competitiveness, the mobility of workers, self-employment and meeting defined and articulated community needs
• flexibility and decentralisation: the role of Government and the National Skills Authority is to provide the framework, direction and coordination for the skills strategy and to monitor its implementation. Public and private employers and workers are best placed to make judgements about priorities and to determine the most effective providers to meet those needs
• partnership and cooperation: at national, sector, provincial, community and workplace levels the definition and implementation of the skills development strategy should be based on partnerships between and amongst the social constituencies
• efficiency and effectiveness: the delivery of skills development programmes and initiatives must be characterised by cost-efficiency and should lead to positive outcomes for all those who invest in training and skills development.

2.3 The following mission statement has been adopted to encapsulate the goals of the national skills development strategy:

To equip South Africa with the skills to succeed in the global market and to offer opportunities to individuals and communities for self-advancement to enable them to play a productive role in society.

2.4 To fulfil this mission five objectives have been identified to drive the national skills strategy:

• to develop a culture of high quality lifelong learning
• to foster skills development in the formal economy for productivity and employability
• to stimulate and support skills development in small businesses
• to promote skills development for employability and sustainable livelihoods through social development initiatives
• to assist new entrants into employment

2.5 These objectives will frame the work of the Department of Labour and the Sector Education and Training Authorities. They will also define the uses of the National Skills Fund and the skills development levies. The objectives offer priorities around which government, employers, trade unions and the wider community can unite to achieve the skills revolution our country so badly requires.

2.6 The skills strategy is designed to support economic and employment growth and social development.

3. The Context

3.1 Throughout the world a number of factors influence the ways in which industry, commerce and services are organised, and all aspects of the world of work are subject to increasing rates of change. South Africa is not isolated from these and amongst the most important influences for change are:

• globalisation: the recognition that no single national economy is immune from the pressures of competition and the opportunities to function in a worldwide market. Although the World Competitiveness Yearbook 2000 improves the country's overall ranking, it is still at the bottom of a league of 47 countries for economic literacy, its education system, unemployment and skilled labour and the availability of information technology skills
• the demand for higher skills: technological developments and dramatic changes in the accessibility of information have led to a demand for higher skills. This phenomenon has been seen in South Africa. Between 1970 and 1998 high skilled jobs have increased by nearly 20 per cent and during the same period the number of unskilled jobs fell by a similar proportion, though by a far greater number. This trend will continue
• structural changes: the nature of national formal economies is also changing, with less reliance on industries based on agriculture and mining and growth in service related industries. Between 1970 and 1995 there was a net decline in jobs in agriculture and mining in South Africa, some slight growth in manufacturing but a significant increase in jobs in the financial sector
• organisation of industry and business: the demand for efficiency and effectiveness has resulted in changes in business organisation with flatter and more integrated structures and a greater emphasis on team working rather than on hierarchies. Both globally and in South Africa these changes have been accompanied by the growth of non-standard forms of employment (e.g. a shift to short-term contracts, part-time work, casualisation, etc)
• growth of small businesses: in all developed economies the largest group of employers is made up of small and medium sized businesses and it is this sector that has generated the most jobs in recent years. In 1997 the SMME sector in South Africa absorbed nearly 57 per cent of people employed in the private sector and contributed 42 per cent of the gross domestic product. There is potential for increasing the number of small businesses and generating new jobs
• societal changes: economies and labour markets have to adapt to changes in society. For example, many countries are experiencing significant demographic changes. There are other factors that affect the labour market in South Africa particularly. Unemployment rates are high and are estimated at either 25 or 37 per cent, depending on the definitions used. Whatever definition is used Black South Africans are most affected by unemployment and rates are above the national average. There are more unemployed women than men. People who have never worked before or who cannot specify a previous occupation dominate the ranks of the unemployed. Unemployment is also highest in the under 34 year old age groups. The country is also characterised by poverty and evident gulfs that exist between rich and poor. A significant further challenge is the incidence of communicable diseases, including HIV/AIDS, compounded by poor living conditions and poverty. There is also a causal relationship between unemployment and crime. The imperative of improved social cohesion suggests that people who would be otherwise unemployed and prey to a variety of temptations should be assisted into jobs, self-employment or further education and training.

3.2 These various factors influence national economies in different ways and their impact on individuals will take different forms. But a number of trends are discernable and that will impact on our economy and labour market:

• demands for skills and a better educated workforce will increase rather than diminish across the total range of sectors and occupations
• structural changes in the labour market will not be reversed and will probably accelerate
• skills development will be increasingly a life-long commitment since the pace of change will accelerate.

3.3 These trends have been recognised in reforms that are being introduced in education at all levels. The skills development legislation and the establishment of organisations such as the South African Qualifications Authority are recognition of the need to invest in education and training and to assure that this is quality provision. We also need to accept that education and training are not restricted to the years of formal education or to the training that people receive when they first begin work.

3.4 Thus there are a number of challenges to be addressed:

• We have only three million skilled and highly skilled people as opposed to seven million trapped in semi/unskilled work or unemployment. Compared to middle-income and advanced industrial countries, South Africa faces specific shortages of professional managers and technicians and craft and skilled workers
• Of the four million plus people who are unemployed, some 50 per cent are young people who have completed more than nine years of schooling. Youth unemployment is aggravated by the inadequate provision of technical and vocational education and training opportunities. Just one per cent of secondary school students is enrolled in technical/vocational institutions. In the countries of the OECD, 50 per cent of secondary school-age students are in technical and vocational education programmes
• Many small businesses in our country are 'informal' and fall outside regulatory and taxation arrangements. In practice, many are trapped at the low-value-adding end of the production spectrum. The challenge is to assist these enterprises to climb the value chain and this will require skills
• Public services at national, provincial and local government levels need the skills to implement the policies and programmes that have been introduced to improve living standards and reduce levels of poverty. There is a need to give effect to the principle of customer-care. Public services need to be provided in cost-efficient and effective ways and a greater spirit of professionalism should permeate the public sector

Whilst many employers have provided skills development opportunities for their staff, a commitment to training has not characterised the South African labour market. An ILO Country Profile of South Africa reported that although 87 per cent of a sample of manufacturing companies claimed to provide skills development opportunities, in practice 70 per cent offered induction and initial training only. The same report suggested that in no firm did production workers account for more than 10 per cent of those who had received training during the previous year.

3.5 It is against this background that the Minister of Labour has adopted the five objectives of the National Skills Development Strategy.

Targets or success indicators

3.6 For each objective, targets or success indicators have been set. These success indicators are valuable since they:

• provide something to aim for. As such the targets are stretching - even ambitious - but feasible
• focus activity and effort rather than dissipate and fragment them
• enable progress to be measured and assessed. One implication of setting targets is that baseline data for each will have to be established.

3.7 The success indicators are defined in terms of national targets. It is recognised that not all sectors of the economy are the same or enjoy comparable opportunities. Thus whilst each sector and province should contribute to the targets the contribution that each will make will vary.

3.8 At this stage some of the success indicators measure activities rather than outputs or impact. For example, one success indicator concentrates on the take-up of skills development grants by larger companies. At best this is only an approximate measure of the involvement of employers in skills training. But it is a quantitative measure that can be assessed with comparative ease. Over time the success indicators will be developed to measure impact more precisely. But a start must be made to quantify and measure what is happening.

 3.9 Central to the achievement of objectives and targets is the pursuit of equity. The social cohesion and elimination of poverty for which our society yearns will not be achieved without tackling endemic problems of racial and gender inequalities and negative discrimination. The following national targets are therefore adopted for the beneficiaries of learning programmes across the five objectives:

• 85 per cent to be black
• 54 per cent to be female
• 4 per cent to be people with disabilities.

The Five Objectives Reviewed

Objective 1 Success indicator

Developing a culture of high quality life-long learning 1.1By March 2005, 70 per cent of all workers have at least a Level One qualification on the National Qualifications Framework1.2By March 2005, a minimum of 15 per cent of workers to have embarked on a structured skills learning programme, of whom at least 50 per cent have completed their programme satisfactorily1.3By March 2005, an average of 20 enterprises per sector (to include large, medium and small enterprises), and at least five national government departments, to be committed to, or have achieved, an agreed national standard for enterprise-based, people development.

3.10 The notion of life-long learning is one of the key principles of the South African Qualifications Authority. It is recognition that individuals should have opportunities for self-improvement at any stage of their lives, be they employed, unemployed or seeking a first job. As the economy grows and develops, so new skills will be demanded and people will need to retrain for them. The provision of opportunities to learn at any age also guarantees second chance opportunities for people, who for a variety of reasons may have ´missed out´.

3.11 Building a culture means changing current negative attitudes and encouraging employers and individuals to accept skills development as an investment rather than a cost. The new levy-grant system is designed to provide incentives for employers to train. Workplace skills plans have been introduced to encourage employers and workers to take seriously staff development issues. However helpful the legislation may be in helping to shape attitudes, the objective must be to look beyond compliance with legislation and embed a commitment to the development of people and their skills as a national goal. Around the world companies, individuals and communities are reaping the benefits of investing in their people. This commitment and culture must be built in South Africa as well.

3.12 There must also be a commitment to quality so that standards can be raised continually, so that qualifications have a national and international currency and that people can be confident that the investment made in skills development is worthwhile. The new Sector and Education Training Authorities, together with professional and other bodies, have a statutory duty to promote quality and to monitor standards.

3.13 The concept of quality must also extend to jobs and employment opportunities. Skills development is about equipping people for quality jobs in which they can take pride.

3.14 The skills development legislation and the projects and programmes of the Labour Market Skills Development Programme being implemented by the Department of Labour are designed to win irrevocable changes in attitudes towards skills development. The Minister is committed to promoting an agreed national standard that will be a benchmark to assess the commitment of companies and government departments to the personal development of their staff.

3.15 Too many people were denied access to general schooling when they were young and hence cannot easily take advantage of new learning opportunities. Helping adults to reach the starting block (NQF 1) is a prerequisite for further learning.

3.16 The achievement of this objective suggests that greater prominence will have to be given to prior recognition of learning and experience and this will demand people with expertise to undertake such assessments.

3.17 It is also hoped that employers will seize on the opportunities to reskill personnel when they are forced to contemplate retrenchments.

3.18 Skills development will need to embrace activities other than those that are job specific. In addition to job competencies many workers seek literacy and numeracy skills and there is much to be done to improve working practices, including health and safety.

Objective 2 Success indicator

Fostering skills development in the formal economy for productivity and employment growth 2.1By March 2005, 75 per cent of enterprises with more than 150 workers are receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured2.2By March 2005, at least 40 per cent of enterprises employing between 50 and 150 workers are receiving skills development grants, and the contributions towards productivity and employer and employee benefits are measured2.4By March 2005, learnerships are available to workers in every sector (Precise targets will be agreed with each SETA).· 2.5By March 2005, all government departments assess and report on budgeted expenditure for skills development relevant to Public Service, Sector and Departmental priorities

3.19 Between 1970 and 1995 formal employment grew by 17 per cent. Over the same period the workforce expanded by 36 per cent. During this period the number of jobs filled by black Africans actually declined. There was also a net loss of jobs for people with little or no education and a dramatic increase in jobs filled by people with tertiary education. The formal sector of the economy could grow by becoming more productive and competitive and in this way, not only secure employment, but also generate new jobs.

3.20 A stronger skills base should help to attract new, foreign and domestic investment to the country. There is also scope to find and expand new markets and to exploit technological innovation, research and development to create jobs. Although some industrial processes will continue to be capital intensive, there are sectors that will require more people if they are to be successful. There is potential for growth in the services sector, in tourism and in cultural industries.

3.21 The skills development strategy seeks to encourage employers to see people as the key to growth. The introduction of Workplace Skills Plans is the vehicle to align skills development with both business growth strategies and equity plans. Employers accessing skills development grants will signal and indicate their involvement in, and compliance with, the legislation. In the public service as well, Workplace Skills Plans can give focus to skills development for improved service delivery.

3.22 Traditionally the only focus for skills development in the formal economy was the individual firm. This is still vitally important but increasingly firms are embedded into production networks, and the value-chain is constructed across a sequence of inter-dependent firms. The output of one firm is the input for the next. Industry and sector-wide initiatives can help the chain to be stronger. The sector summits seek improved industrial strategies. Their implementation can be supported and enhanced through skills development initiatives that will enhance productivity, labour mobility and the portability of skills.

3.23 The new learnerships are not restricted to younger people, but are open to all ages. Learnerships will also be at different levels on the national qualifications framework. The skills of those already in work need to be developed as well. Objective 5 centres on the need to train new entrants to the labour market, but the needs of those already in work must not be overlooked.

3.24 The development of skills in the formal economy means a better understanding of skill needs and directing resources to addressing the issue of skill shortages in the economy. The development of work place skills plans and the analysis of sector skills requirements through the Sector Skills Plans will help to identify needs. During 2001, the Minister will introduce a bursary programme to assist employers to train people in skill shortage areas.

3.25 Meeting the success indicators of Objective 2 will mean the effective implementation of much of the skills development legislation. Measuring the impact of this objective will involve analysing the benefits to employers and such factors as improvements in productivity, staff retention and efficiency will be reviewed. It is equally important to assess the benefits of skills development on employees, for example, in improvements in health and safety and working practices and the links between improved skills and promotion prospects.

Objective 3 Success indicator

Stimulating and supporting skills development in small businesses 3.1By March 2005, at least 20 per cent of new and existing small registered businesses to be supported in skills development initiatives and the impact of such support to be measured

3.26 Currently just under 72 per cent of all private sector enterprises in South Africa employ four people or less. International experience suggests that the most potent source of new jobs is likely to be in the small enterprise sector. For example, the dramatic growth in jobs in the United States of America in the last five years has been in small enterprise start-ups. Outsourcing and the sub-contracting of non-core business by larger enterprises create opportunities for new and small businesses. In South Africa there has been too great a tendency to equate small business development with survivalist activities and those of the informal sector of the economy. This is a mistaken view. For example, many of the highly successful computer and IT companies that have won international recognition are small enterprises. New, small enterprises are well placed to develop new technologies and to exploit commercially the results of research and development activities.

3.27 This Objective is designed to draw attention to both the actual and potential significance of small firms within the economy. This Objective signals the intention of the Department of Labour to ensure that the small business sector is not ignored. It must be conceded that more work is required to understand the dynamics of small businesses in each sector of the economy and the forms of targeted assistance that will most effectively encourage survival and growth.

3.28 Skills development is only one component of a strategy to stimulate business start-ups and the growth of small enterprises. Small businesses need access to credit, business support and advice and assistance in product development and marketing and exporting. The Department of Labour will work closely with the Sector Education and Training Authorities, the Department of Trade and Industry and other Departments and their Agencies to stimulate skills development for small business growth.

Objective 4 Success indicator

Promoting skills development for employability and sustainable livelihoods through social development initiatives 4.1By March 2003, 100 per cent of the National Skills Fund apportionment to social development is spent on viable development projects4.2 By March 2005, the impact of the National Skills Fund is measured by project type and duration, including details of placement rates which shall be at least 70 per cent

3.29 In his address to the nation at the opening of the 2000 session of parliament, President Mbeki spoke of the need to integrate development initiatives to maximise their impact. Such development interventions are those that improve the quality of life of the poor, that secure basic services and infrastructure and which lay the foundations for rising standards of living through access to new forms of income generation.

3.30 Social Development projects include self-employment initiatives in the micro and survivalist sectors.

3.31 In the many programmes that have been launched and are planned, such as the strategies for integrated, sustainable rural development and urban renewal, and local economic development programmes, there is the potential to build a stronger skills development component. Inevitably some development interventions are of relatively short duration but they can be designed and organised to ensure that people involved in them are equipped with the competencies to find jobs, to establish their own businesses or to continue to support their communities in practical ways after development projects have been completed.

3.32 Thus in the design of community-based public works programmes, the building of houses, roads and the up-grading of schools, skills development should be an integral component. The development of the human infrastructure is just as important as making improvements to the physical one and central to both is sustainability.

 3.33 A component of the National Skills Fund will be devoted to social development activities and the provision of practical assistance to unemployed and under-employed people. The National Skills Authority is already requiring that greater scrutiny be given to the selection of projects to be supported so that skills development is a primary focus.

 3.34 To achieve this objective will require cooperation between Government Departments, Development Agencies and Non-Governmental Organisations at national, provincial and local levels. It will also require the expertise to plan and organise social development projects in such a way that skills development is integral to the activity and that people have the opportunity to acquire credits and qualifications that are accredited within the National Qualifications Framework and thus lay the foundations for life-long learning.

3.35 Opportunities also exist for collaboration with social development initiatives, such as community-based public works programmes, Working for Water, and youth development programmes to encourage self-employment. Whilst these may not be seen primarily as small business development opportunities, they provide a fertile ground for the identification of people with entrepreneurial talents.

Objective 5 Success indicator

Assisting new entrants into employment 5.1By March 2005, a minimum of 80,000 people under the age of 30 have entered learnerships5.2By March 2005, a minimum of 50 per cent of those who have completed learnerships are, within six months of completion employed (e.g. have a job or are self-employed), in full-time study or further training or are in a social development programme

3.36 There are many groups within South Africa that might make eloquent claims to be treated as priorities. The Minister believes that those leaving education merit special consideration and support for a number of reasons:

• Young people represent the future labour force and equipping them with skills is key for a well-functioning labour market
• A high proportion of the unemployed are young and nearly half of all unemployed people have nine or more years of education. Not to build on this foundation is wasteful in human and economic terms
• In 2000 57,8 per cent of those who sat the matriculation passed but only 14 per cent passed with exemption. The remaining 206,000 young people have no qualifications. There is an urgent need to give priority to those young people who leave school without a qualification or without the necessary exemptions to progress to higher education.

 3.37 The new learnership programme, although not restricted to young people, will offer them the opportunity to learn skills that are in demand and it should be feasible to expand the number of learnerships to a significant scale in a short period of time. The development of support programmes for young people will also involve improvements in information and access to guidance and placement services. These are matters that the Department of Labour, supported by the National Skills Authority, is taking forward.

Conclusion

3.38 This Strategy charts the ways in which South Africa can build its skills to enable it to compete more successfully in the global economy; attract investment; enable individuals and communities to grow to eradicate poverty and to build a more inclusive and equal society. It is based on the conviction that we have the means and the will to make progress to ensure a better life for all.

NATIONAL SKILLS DEVELOPMENT STRATEGY

OBJECTIVES AND SUCCESS INDICATORS

Objectives Success Indicators

1. Developing a culture of high quality life-long learning 

1.1 By March 2005, 70 per cent of workers have at least a Level One qualification on the National Qualifications Framework
1.2 By March 2005, a minimum of 15 per cent of workers to have embarked on a structured learning programme, of whom at least 50 per cent have completed their programme satisfactorily
1.3 By March 2005, an average of 20 enterprises per sector, (to include large, medium and small enterprises), and at least five national government departments, to be committed to, or have achieved, an agreed national standard for enterprise-based people development.

2. Fostering skills development in the formal economy for productivity and employment growth. 

2.1 By March 2005, at least 75 per cent of enterprises with more than 150 workers are receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured
2.2 By March 2005, at least 40 per cent of enterprises employing between 50 and 150 workers are receiving skills development grants and the contributions towards productivity and employer and employee benefits are measured
2.3 By March 2005, learnerships are available to workers in every sector. (Precise targets will be agreed with each Sector Education and Training Authority)
2.4 By March 2005, all government departments assess and report on budgeted expenditure for skills development relevant to Public Service, Sector and Departmental priorities,

3. Stimulating and supporting skills development in small businesses 3.1 By March 2005, at least 20 per cent of new and existing registered small businesses to be supported in skills development initiatives and the impact of such support to be measured.

4. Promoting skills development for employability and sustainable livelihoods through social development initiatives. 

4.1 By March 2003, 100 per cent of the National Skills Fund apportionment to social development is spent on viable development projects
4.2 By March 2005, the impact of the National Skills Fund is measured by project type and duration, including details of placement rates, which shall be at least 70 per cent.

5. Assisting new entrants into employment 

5.1 By March 2005, a minimum of 80,000 people under the age of 30 have entered learnerships
5.2 By March 2005, a minimum of 50 per cent of those who have completed learnerships are, within six months of completion, employed (e.g. have a job or are self-employed); in full-time study or further training or are in a social development programme.