1. Department of Higher Education and Training
National Skills Development Plan (NSDP)
Presentation to Portfolio Committee of Higher Education and Training
Wednesday, 22 August 2018

2. NATIONAL SKILLS DEVELOPMENT PLAN OUTLINE
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

3. NATIONAL SKILLS DEVELOPMENT PLAN BACKGROUND
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 Instruments : 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;

4. NATIONAL SKILLS DEVELOPMENT PLAN BACKGROUND
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. NATIONAL SKILLS DEVELOPMENT PLAN BACKGROUND
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. NATIONAL SKILLS DEVELOPMENT PLAN BACKGROUND
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. NATIONAL SKILLS DEVELOPMENT PLAN PRINCIPLES
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.

8. NATIONAL SKILLS DEVELOPMENT PLAN PRINCIPLES
PRINCIPLE 4: Greater inclusivity and collaboration
Public and private sector collaborations;
Strong focus on workplace based 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. NATIONAL SKILLS DEVELOPMENT PLAN PRINCIPLES
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.

10. OUTCOME ONE: Identify and increase production of occupations in demand
NATIONAL SKILLS DEVELOPMENT PLAN OUTCOMES
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 10

11. OUTCOME TWO: Linking education and workplace
NATIONAL SKILLS DEVELOPMENT PLAN OUTCOMES
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

12. NATIONAL SKILLS DEVELOPMENT PLAN OUTCOMES
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.
Performance Indicators
Number of workers trained and supported. 12

13. OUTCOME FOUR : Increase access to occupationally directed programmes
NATIONAL SKILLS DEVELOPMENT PLAN OUTCOMES
OUTCOME FOUR : Increase access to occupationally directed programmes
NDP sets the target of 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.
Performance Indicators
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

14. OUTCOME FIVE : Support the growth of the public college system
NATIONAL SKILLS DEVELOPMENT PLAN OUTCOMES
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 years and 4.6 million aged years who are not in education, employment or training (NEET).
Sub Outcomes :
Support the TVET and CET Institutional Types
Performance Indicators
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.
OUTCOME FIVE : Support the growth of the public college system 14

15. NATIONAL SKILLS DEVELOPMENT PLAN OUTCOMES
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.
Performance Indicators
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.
Targets will be set for three year period and annually determined through service level agreement 15

16. OUTCOME SEVEN : Encourage and support worker initiated training
NATIONAL SKILLS DEVELOPMENT PLAN OUTCOMES
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.
Performance Indicators
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

17. OUTCOME EIGHT: Support career development services
NATIONAL SKILLS DEVELOPMENT PLAN OUTCOMES
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.
Performance Indicators
Career development must be accessible especially in rural areas and for targeted beneficiaries of the NSDP and prioritisation of both sectoral and government priorities.
Targets will be set for three year period and annually determined through service level agreement 17

18. NSDP INSTITUTIONAL ARRANGEMENTS
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

19. NSDP INSTITUTIONAL ARRANGEMENTS
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

20. PROPOSED SETA LANDSCAPE
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. 20

21. PROPOSED SETA LANDSCAPENo
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
Streamline and integrate the value chain of interrelated and interdependent sectors of finance, accounting, insurance and investment subsectors. 3.
Public Service Sector Education and Training Authority
Local Government Sector Education and Training
Energy and Water Sector Education and Training Authority
Streamline and integrate the value chain of interrelated and interdependent sectors of the public service, local government, energy and water subsectors. 21

22. PROPOSED SETA LANDSCAPENo
SETA
RATIONALE 4.
Construction Education and Training Authority
Energy and Water Sector Education and Training Authority
Streamline and integrate the value chain of interrelated and interdependent sectors by transferring electrical contractors subsector from EWSETA to CETA. 5.
Manufacturing, Engineering and Related Services Sector Education and Training Authority
Fibre Processing and Manufacturing Sector Education and Training Authority
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 Education and Training Authority
No change proposed. 7.
Safety and Security Sector Education and Training Authority 8.
Services Sector Education and Training Authority 22

23. PROPOSED SETA LANDSCAPENo
SETA
RATIONALE 9.
Chemical Industries Education and Training Authority
No change proposed.
10.
Media, Advertising, Information and Communication Technologies Sector Education and Training Authority
11.
Transport Education and Training Authority
12.
Culture, Arts, Tourism, Hospitality and Sport Education and Training Authority
13.
Wholesale and Retail Sector Education and Training Authority
14.
Health and Welfare Sector Education and Training Authority
15.
Mining Qualifications Authority 23

24. Thank you