Umsobomvu Youth Fund Presentation to Portfolio Committee on Labour 17 March 2006

Outline of the presentation  The UYF team  UYF Products and Services  Recap of our previous presentation Challenges  Consolidation of audited financials  Access to UYF services – especially rural areas Envisaged Plans for 2006  State of the Nation Address Programme of Action  Approved plans for 2006/7

The UYF Team  Mr M Kekana – Chief Executive Officer  Ms J Law – Chief Finance Officer  Mr M Ntlangeni – Director – Process Cycle Management

UYF Products & Services  Contact Information & Counselling: Counselling, Advice and Referral Information  Skills Development & Transfer Training (Graduate Development, Supplier Development, Cooperatives Development, and Entrepreneurship Education) Skills Programmes Project Management Support Service  Business Development Support: Business Consulting Service (Voucher Programme); Volunteer Mentorship Service Job and Opportunities Seekers Support Service (“Graduates Dbase”) Business Opportunities Support Service  Enterprise Finance Micro loans – R1000 to R Small loans – R to R Medium loans – R to R8 million

UYF Products & Services (CIC)  Content Development and Management;  Provision of Counselling, Advice and Referral Information;  Management of the following channels to provide the Counselling, Advice and Referral Information: Mobile Youth Advisory Centres; The Youth Card; The Call Centre; The Internet Portal; Other electronic communication platforms (e-business) including the Mindset Channel.

UYF Products & Services (SD&T)  Graduate Development Training (provides life &professional skills [including drivers licence, writing & communication skills, computer literacy, etc] to graduates to enhance their employability).  Utilise existing project management capacity to continue provide coordination & project management capacity for: National Youth Service Programme; FET Colleges Training programme; Unused Training Facilities programme (to open facilities that have been closed but can be availed for the training of unemployed youth e.g. old mining towns, teachers colleges, etc); and Those skills programmes that arise from ASGI-SA

Challenges  Consolidation of Audited Financial Statements GAAP requires application of AC132 which stipulates the consolidation of underlying investments due to control (why control by UYF?). Materiality level of UYF set at R due to small amount of assets under control and amount lent as at year end To Address:  Adopting International Financial Reporting Standards (fair value reporting i.s.o consolidation)- IAS 28

Challenges  Access to UYF services Issue is about scale Growth limited due to unavailability of viable service providers in rural areas. Therefore, growth dictated by presence of Service Providers  To address: Propose to set up UYF outlets Outlets will also facilitate integration of services

Plans (highlights)  Support government’s 6% growth target focusing especially on the second economy (ASGI-SA)  Skills development & transfer Supporting more FET Colleges Support project consolidate (DBSA/ Dept of Provincial & Local govt.) Launch the Graduate Development Programme (Social Capital for the unemployed graduate) Implement Service Programmes along volunteer lines – e.g. teaching Maths and English, caring for orphans or child headed households

Plans (highlights)  Business Development Support Expand the Entrepreneurship Education project to more schools and provinces Increase Entrepreneurship Education for out-of-school youth Launch the Mentorship voucher product & reinstatement of the company registration voucher Launch the Business Opportunities Support Service (linking youth to business opportunities)

Plans (highlights)  Enterprise Finance Expand the Cooperative Programme both for production coops and savings coops Franchise Cadet Programme (with Sanlam & Business Partners) Training of loan officers (up to 500 to serve communities to improve access to finance)  Implementation of pilot UYF outlets at least by March 2006 Enable scaling up of UYF programmes; and Integration of UYF services.

State of the Nation - POA  Registration of unemployed graduates completed and focus turns to finding employment opportunities.  As part of ASGI-SA to increase support to SMMEs with special focus on women and youth. Attention to ensure programmes are effective.  100 New Youth Advisory Centres are to be established.  youth to participate in the National Youth Service Programme & 5000 volunteers to be enlisted to provide mentoring support to vulnerable children.  Programmes aimed at skills development and business support of the youth will be closely monitored to ensure more support for the youth.

State of the Nation - POA  Registration of unemployed graduates completed and focus turns to finding employment opportunities.  As part of ASGI-SA to increase support to SMMEs with special focus on women and youth. Attention to ensure programmes are effective.  100 New Youth Advisory Centres are to be established.  youth to participate in the National Youth Service Programme & 5000 volunteers to be enlisted to provide mentoring support to vulnerable children.  Programmes aimed at skills development and business support of the youth will be closely monitored to ensure more support for the youth.

State of the Nation - POA  Registration of unemployed graduates completed and focus turns to finding employment opportunities.  As part of ASGI-SA to increase support to SMMEs with special focus on women and youth. Attention to ensure programmes are effective.  100 New Youth Advisory Centres are to be established.  youth to participate in the National Youth Service Programme & 5000 volunteers to be enlisted to provide mentoring support to vulnerable children.  Programmes aimed at skills development and business support of the youth will be closely monitored to ensure more support for the youth.

State of the Nation - POA Based on 5 yr review following changes were adopted:  Major focus to be on linking youth to viable opportunities and facilitating exit opportunities (in skills programmes) and supporting self-employment;  Increase focus on market linkages to promote partnerships with government and the private sector;  Implement UYF interventions as Products and Services as opposed to Programmes and foster more internal integration;  Intervene directly as UYF and overtime only retain Service Providers in some of the areas where necessary;  Dominate and lead the enterprise micro finance arena;  Support Accelerated Shared Growth Initiative of South Africa (ASGI-SA);  Utilising UYF’s expertise to assist other organisations (including government departments) to implement youth development programmes using their own resources.

Highlights 2006/7  Contact Information & Counselling 53 Municipalities are to implement YAC points JOBS – implement programmes aimed at placing graduates by focusing e.g. BPO Industry & Tourism Launch of livelihood channel with Mindset  Training Use of Unutilised Training Facilities (Research almost complete) Increased intake into National Youth Service Programme  Introduction of the Volunteer Youth Service Corps (Big Brothers Big Sisters SA launched) Graduate Development Programme Intake Use UYF model for defining & scaling up the Social Sector EPWP programmes (Community Home Based Care)

Highlights 2006/7  Business Development Support Introduction of the Volunteer Mentorship Programme (with organised business formations) Launch of Business Opportunity Support Service Increased implementation of Youth-in-LED  Enterprise Finance Implementation of two Public Public Partnerships with provincial governments  Northern Cape Fund – R15 million (for micro & small enterprises)  Free State Fund – R10 million (for micro & small enterprises) Potential participation in a Womens Empowerment Fund Integration of micro finance entities & entering into a partnership with an International Player

Highlights 2006/7  Support to ASGI-SA Framework developed  Retail Network Management Opening of the first UYF managed and operated Youth Advisory Centre

Thank You unleashing the potential of youth