1. Presentation to Portfolio Committee on Labour Annual Report 2005/6 31 October 2005

2. Portfolio Committee 31-10-062 Outline  Introduction  The First Five Years: Highlights  Key issues from the audited financials Commitments (contracted and non-contracted) Impact data 2005/6 Year Under Review  Challenges  Next Three Years

3. Portfolio Committee 31-10-063 Introduction  UYF marked its 5th anniversary in March 2006 with an established, solid foundation which can be taken to scale;  An effective organisation, institutionalising the following: A clear strategic framework; Scalable programme models and products; Policies, Systems, Procedures and processes HR capacity of skilled, committed women and men with common a vision;  A network of service providers and YACs for nationwide access;  A strong, recognisable brand; and  A world class institution with ISO9001:2000 certification

4. Portfolio Committee 31-10-064 Situational Analysis* Employment status2001200220032004 % Change 2001-2004 Not economically active3.3m3.2m3.6m3.7m10.9% Employed5.4m5.1m 5.3m-2.1% Unemployed5.1m5.6m5.9m6.0m18.4% Total13.8m13.9m14.6m15.0m8.6% Unemployment rate 48.5%52.5%53.8%53.3% * Based on Labour Force Survey

5. Portfolio Committee 31-10-065 Unemployment in South Africa  Biggest challenge facing post-democratic SA;  A threat to the sustainability of our democracy;  There has been considerable economic growth since 1994 but not sufficient to create enough number of jobs;  There has been 17% increase in employment between 1995 and 2002;  Overall unemployment rate is 26%, with a youth unemployment rate of 70% (LFS 2005).

6. Portfolio Committee 31-10-066 Unemployment Trends (1995-2005)

7. Portfolio Committee 31-10-067 Unemployment by Age

8. Portfolio Committee 31-10-068 Unemployment by Education

9. Portfolio Committee 31-10-069 UYF’s Approach to Youth Development

10. Portfolio Committee 31-10-0610 Approved & Forecasted Commitments to 31 March 2007 PRODUCT OR SERVICE AS AT 31 MAR2006 R’M TO DATE 31 AUG 06 R’M TOTAL FORECAST 31 MAR 07 R’M TOTAL R’M Contact Information and Counselling 85.8 29.28 (Budget 18.5) 62.2 (Budget 46.5) 177.3 Skills Development and Transfer 205.7 R34.98 (Budget 54.43) 68.7 (Budget 48.5) 309.4 Business Development Services 103.4 32.5 (Budget 18.8) 78.9 (Budget 52.8) 214.8 Enterprise Finance396.5 21.84 (Budget 37.66) 12.0 (Budget 55.9) 430.3 Capacity Building and Research 36.9 10.2 (Budget 20.5) 35.4 (Budget 38.1) 82.5 Process Cycle Management20.3 7.0 (Budget 9.1) 19.8 (Budget 21.9) 47.1 Communications23.5 0.8 (Budget 2.7) 2.5 (Budget 4.5) 26.8 TOTAL872.1 136.6 (Budget 161.7) 279.5 (Budget 268.2) 1,288.2

11. Portfolio Committee 31-10-0611 First Five Years: Highlights and Achievements CONTACT, INFORMATION & COUNCELLING  Youth Portal 4,914,277 hits  Call Centre 189,622  YAC Mobile – 110,731 Youth  Youth Advisory Centre Beneficiaries - 396,073 Youth  SAY Card/Members - 68,037 Youth

12. Portfolio Committee 31-10-0612 First Five Years: Highlights and Achievements ProvinceNumber of YACs Gauteng2 YACs; 12 YAC Points Free State7 YAC points Limpopo2 YACs; 17 YAC points Mpumalanga8 YAC Points Western Cape2 YACs; 19 YAC Points Eastern Cape21 YAC Points Northern Cape1 YAC; 5 YAC Points Kwa Zulu Natal1 YAC; 9 YAC Points North West1 YAC; 8 YAC Points

13. Portfolio Committee 31-10-0613 First Five Years: Highlights and Achievements SKILLS DEVELOPMENT & TRANSFER  National Youth Service – 15,023 youth  School to Work – 4,667 youth  STW FETCs – 1,296 youth  GDP & partnership related training– 650 youth  Entrepreneurship Education – 30,629 youth  Total = 52, 266 +-75 accessed exit opportunities  Attrition rate = less than 5%  Accreditation NQF level 2-4

14. Portfolio Committee 31-10-0614 First Five Years: Highlights and Achievements Business Consulting Services# of AAs Total BeneficiariesJobs CreatedLoansTenders Eastern Cape1 1,7673,703R 28,630,220R 23,996,393 Free State1 403327R 991,000R 125,000 Gauteng2 2,3087,023R 6,764,500R 21,561,600 KwaZulu Natal1 1,7312,151R 25,989,000R 20,932,170 Limpopo1 9982,033R 7,136,000R 16,050,000 Mpumalanga2 60149R 754,093R 791,000 Northern Cape1 240191R 625,000R 0 North West* (figures not yet available) 1 2530R 0 Western Cape1 1,2301,690R 20,512,300R 5,600,000 Subtotal (inception – 31.03.06)11 9,53117,167R 155,672,113R 89,056,163 1 ST Quarter 2006 National Data11 1,661426R1,700,000R1,750,000 Total11 11,19217,593157,371,113R90,806,163

15. Portfolio Committee 31-10-0615 First Five Years: Highlights and Achievements BUSINESS OPPORTUNITY SUPPORT SERVICES (BOSS) PartnerDescription of business opportunityPerformance NestleIce cream vending business for the benefit of 3000 young entrepreneurs. 102 young entrepreneurs in 4 provinces have been trained in business management and motorbike driver licenses MTNRetail opportunity for 100 young people through cell phone container businesses An M-Charge business opportunity for 20,000 young entrepreneurs is also being negotiated with MTN for the sale of airtime from cellphones. 20 young entrepreneurs have been assessed and selected. Currently, 800 M-Charge vendors have been selected and trained. Massmart33 Hot Dog Franchises Retail (sausage roll vending) opportunity for young people. 12 clients have been financed by UYF for a total of R2 million and commenced their trading activities. Department of Public Works Roads and Transport Availing procurement opportunities to BOSS clients 35 Beneficiaries have been accessed procurement opportunities. They will be involved in Construction Industry Development Board (CIDB) level 1-6 opportunities NuMetroAvailing retail opportunity to BOSS clients (rehabilitation of dilapidated Nu Metro Cinema in Hillbrow). The structuring of the deal is being finalized by General Finance.

16. Portfolio Committee 31-10-0616 First Five Years: Highlights and Achievements Graduates Database (JOBS)  To date 123,000 CVs have been registered on the Graduates Database. Since its implementation in 2005, over 700 young people have been placed in jobs. BDS Mentorship and Incubation Services  These are relatively new services that are being implemented. No historical information is available for these services.

17. Portfolio Committee 31-10-0617 First Five Years: Highlights and Achievements ENTERPRISE FINANCE MICRO FINANCESME FINANCE PROVINCE No of Branche s Total Beneficiari es Jobs Created # of Branches Total Beneficiari es Jobs Created Eastern Cape23,5544,220217352 Free State147855727188 Gauteng12105003561,214 KwaZulu Natal000244861 Limpopo12,9683,7101352 Mpumalanga14196131254 Northern Cape000200 North West000100 Western Cape2335778326558 Sub Total (inception – 31.03.06)87,96410,378171553,279 National 1 st Quarter 068288 Not yet available1727 Not yet available Total88,25210,378171823,279

18. Portfolio Committee 31-10-0618 2005/6 Impact Report: Content Information & Counselling

19. Portfolio Committee 31-10-0619 2005/6 Impact Report: CIC (cont)

20. Portfolio Committee 31-10-0620 2005/6 Impact Report: Skills Development and Transfer

21. Portfolio Committee 31-10-0621 2005/6 Impact Report: Business Development Services

22. Portfolio Committee 31-10-0622 2005/6 Impact Report: Business Development Services (Cont)

23. Portfolio Committee 31-10-0623 2005/6 Impact Report: Enterprise Finance

24. Portfolio Committee 31-10-0624 2005/6 Leveraging of external funding

25. Portfolio Committee 31-10-0625 For Year Under Review (Income Statement)

26. Portfolio Committee 31-10-0626 For Year Under Review (Assets)

27. Portfolio Committee 31-10-0627 Cash Reconciliation at 31 March 2006 R’m  As at 31 March 2006661.15m  Less: Undrawn Commitments242.05m  Less: Restricted cash 12.76m Unencumbered Cash 31 March 2006 406.34m Unencumbered Cash at 31 Aug 2006 R169.63m

28. Portfolio Committee 31-10-0628 For Year Under Review (Reserves and Liabilities)

29. Portfolio Committee 31-10-0629 Challenges PFMA Sec 54(2)  Executive Authority approval required for Establishment of a company; Participation in significant partnership, JV etc; Acquisition or disposal of significant shareholding in a company; Acquisition or disposal of significant asset.  Transactions in the normal course of UYF’s lending business;  Onerous requirements on the Fund and turnaround on approval of deals;  Inadvertent non-compliance resulting in “emphasis of matter” on Group audit report and reportable item to IRBA;  To Address: Application to Minister for exemption in terms of Sec 54(4);

30. Portfolio Committee 31-10-0630 Challenges IFRS implementation First time adoption Limited specialist expertise (UYF & auditors) Costly: Time and Effort To address:  Capacitation of finance staff  IFRS reporting in management accounts

31. Portfolio Committee 31-10-0631 2006 YTD Achievements  Five Year Anniversary;  UYF is SA’s first DFI to achieve ISO9001:2000 certification;  Implementation of fully-fledged one-stop YAC in Tshwane  Scaling-up of micro-lending activities through integration of TNT and NEF  Establishment of new partnerships, particularly with Private Sector and abroad  By 31 March 2007 UYF will exceed budgeted targets;  Allocation of R400m additional funding for 2007/8

32. Portfolio Committee 31-10-0632 Plans: Next 3 years  20.6 million interactions through service delivery channels;  212,500 young people acquiring skills training & 75% result in sustainable livelihoods;  84,000 young people in NYS projects, plus 90,000 unemployed youths in Cat1 NYS Govt dept projects;  525,000 unemployed graduates registered on JOBS to secure 26,250 job opportunities;  1,290 women- and youth-owned SME’s and 43,871 micro- enterprises funded by UYF to value of R533m, plus R390m from private sector, banks and DFI’s;  72,378 jobs created from UYF lending activities.  R206.2m of business and procurement activities accessed by 39,022 young entrepreneurs, creating 58,527 sustainable jobs; 60 youth owned SME’s established in incubators ; Result: 360,795 jobs created and 71,222 business supported.

33. Portfolio Committee 31-10-0633 YAC Expansion Plans  6 Regional Offices  298 Offices (in partnership with others)  32 Branch Outlets  260 Kiosks

34. Portfolio Committee 31-10-0634 Planned Spending for 2007/8 R’m Products and Services:381.2 Contact Information and Counselling61.3 Skills Development and Transfer85.3 National Youth Service64.5 Business Development Services40.3 Market Linkages (BOSS and JOBS) 5.7 Enterprise Finance124.2 Product Support29.1 Operational Costs and Overheads13.3 Capital Expenditure26.2 Income, interest and capital receipts(49.6) TOTAL400.2

35. Thank You unleashing the potential of youth