A mixed bag of initiatives for development of skills for training {writers: Shaun Meyer and Piet Coetzer}

While South Africa remains in the grip of an acute skills shortage in just about every imaginable sector of the economy, the National Skills Fund (NSF) established in 1999 sits on a R4.1-billion surplus after failing to spend R1.2bn in 2009.

While the reasons for this situation are varied and complex, it is clear that the two National Skills Development Strategies for the periods of 2000-2005 and 2005-2010 (NSDS I and NSDS II, respectively) have not lived up to expectations.

The NSF was established in 1998 through the promulgation of the Skills Development Act. In 1999 it took over operations of the then Training of Unemployed Persons (TUP) Fund that was part of the Manpower Development Legislation.

From the year 2000, it began to receive levy income following promulgation of the Skills Development Levies Act in 1999.

The NSDS I provided a framework within which the NSF was to discharge its responsibilities as indicated in the Skills Development Act.

In November 2009, the Ministry of Higher Education and Training took over administrative responsibility for both the Skills Development Act and the Skills Development Levies Act, following Proclamation No. 56 of 4 September 2009.

The NSF and other skills development units were transferred to the new Department of Higher Education and Training.

Under the Act, sector education and training authorities (Setas) were created, which were tasked with implementing strategies to improve skills development initiatives for their various sectors. But, for many sectors, the Setas did not live up to expectations.

Indicative of the state of affairs at some of the Setas is the fact that the last time any document was posted on the website of the Local Government Seta (LG Seta) was June 2009. The first “newsletter” on the site, some time in 2008, was also the last; while an invitation to the Annual General Meeting of 23 and 24 June 2008 was the last such notice to have been posted.

In the meantime, there are very few, if any, aspects of local government where municipalities are not suffering from a lack of adequate skills.

Recently, Kevin Allan, managing director of the data service company Municipal IQ – on the subject of the inability of many municipalities to collect properly the money due to them – told a newspaper: “The problems with the billing system were caused by the shortage of people with the skills in finance in most municipalities. There is no capacity around revenue collection.”

Hope for NSDS III

But there is hope for the NSDS III, which is to be implemented from April 2011 to March 2016 under the Department of Higher Education and Training.

Analysts have ascribed the failures of the previous two initiatives to, among others, the lack of credible research.

Through research, one would be able to analyse the landscape to ensure one has the best possible overall initiative.

A more comprehensive plan should be implemented in NSDS III to improve the quality of information of state institutions and agencies to analyse skills supply and demand, according to Professor Hoosen Rasool of the Management College of Southern Africa.

”Currently, this lack of (research) capacity is resulting in a proliferation of new policies, reforms and institutions, creating confusion and chaos in the system,”
he said.

Companies also have to measure their skills base structures and determine what their skills base is; and also determine how many skilled employees are on the verge of retiring, which leads them to how many with skills would be required.

Prof. Rasool added that a good way of dealing with skills shortages was to increase public investment in education and training.

Another area of concern is training programmes in areas where there is no real need, instead of programmes for growth industries where they are required the most.

For instance, the manufacturing industry is in steep decline, yet receives many training programmes; compared to the service sector that is South Africa’s fastest growing in the country and economy.

Another problem is that a large portion of the funds generated by the Skills Development Levies, collected under the Act, has not been disbursed.

This is the case mainly due to small, medium and micro enterprises (SMMEs) not claiming back.

Seta objectives in the last year or so have thus included a huge drive to include SMMEs in the registration, claiming back levies as well as giving grants for learnership implementations.

According to Eubert Mashabane, chief director of the NSF, part of the blame for the R4.1-billion surplus can be laid at the door of those who receive funding for skills development, but do not spend or use enough of the money.

”If you take the notion that the (Fund) provides the facility, makes the funding available and an issue arises around under-expenditure, it becomes difficult to blame the (Fund) for that under-expenditure,” he said.

Not all doom and gloom

But it is not all doom and gloom for local government on the skills development front.

In March this year, it was announced that a formidable public-private partnership was being launched. It consists of an ambitious set of programmes to reduce South Africa’s service delivery backlog by injecting skilled graduates and high-level training initiatives directly into local government.

Known as the Municipal Skills Development Programme, the initiative will aid local governments to use technology more effectively and efficiently.

It is driven jointly by Microsoft South Africa, the South African Local Government Association (Salga), the LG Seta and the Development Bank of Southern Africa (DBSA).

It was set to be piloted by the partners in the Eastern and Western Cape during April, and launched nationally at a Salga conference in the Northern Cape.

Xolile George, chief executive officer of Salga, said that unemployed information technology (IT) graduates would be seeded into key government departments as employees and senior managers.

“Cornerstones of the programme are the creation of efficient systems, the provision of more skilled people, the promotion of good governance, and the driving of effective communication in local government.”

South Africa’s so-called third tier of government – local or municipal nodes – was core to addressing the country’s social and economic challenges.

“This programme will be key for the government to deliver on its key priorities – skills and jobs, health, education, rural development, and reducing crime and corruption,” said George.

Treasury’s answer to South Africa’s job crisis is to allocate the lion’s share of this fiscal year’s National Budget to education and skills training, with a drive toward more public and private partnered investment.

An amount of R55bn of these funds has been allocated to municipalities to improve service delivery and financial management.

The Municipal Skills Development Programme has been set up to address the challenges facing local government in the following ways:

• Student-to-Government (S2G): Training of unemployed and retrenched graduates with the IT skills required to support local government. It is built on Microsoft’s highly successful Student-to-Business (S2B) programme that has been implemented in collaboration with its partner ecosystem together with the Information Systems, Electronics and Telecommunication Technologies Seta (ISETT Seta);

• Employee training: Local government staff will benefit from training and from the support staff trained under the Municipal Skills Development Programme model. This level of training will be conducted by various Microsoft Certified Training Partners and DBSA-approved trainers; and

• Support for senior officials: There is a need for a deeper understanding of how IT can support service delivery. Senior municipal managers will be invited to a seminar series around international models and best practices of implementing technology solutions to improve service delivery to South African citizens.

According to Mteto Nyati, managing director of Microsoft South Africa, this programme will help dispel the myth that working for the government is neither challenging nor rewarding.

“Over the next few years, we will be helping the government to use technology to enhance service delivery.

“We’ll do this by placing top graduates in local municipalities, training municipal employees and providing specialised seminars for municipal managers,” he said.

“Improving the skills levels of our sector has long been a pressing issue that needed attention,” said Sidwell Mofokeng, CEO of the LG Seta.

“Many South African municipalities have the right technology, but don’t know how to use it. The placement of clued up IT graduates will ensure the upkeep of current computer systems and correct upgrades when needed, while at the same time helping staff to utilise the equipment to full capacity.”

The DBSA, as specialist large infrastructure funder for government expansion, has a unit dedicated to supporting local government development.

Eskom also has extended an invitation to local government employees to participate in a number of courses forming part of the parastatal’s Leadership Development training programme.

Help from India

In the meantime, KwaZulu-Natal MEC for Finance Ina Cronjé has encouraged continuity and the strengthening of relations between KwaZulu-Natal and India in order to help provide more technical skills and to build the economy of the province.

She addressed hundreds of delegates, government officials and stakeholders at the Indian Technical and Economic Co-operation Day hosted by the Office of the Consulate General of India in Durban. The event sought to celebrate the partnership between India and KwaZulu-Natal on this skills programme.

A total of 16 candidates from provincial, local government and the University of KwaZulu-Natal have gone to India to receive training in web design, public expenditure management; international training programme in legislative drafting, financial management; international training programme in legislative drafting, business research methods and data analysis, trainers’ training on sustenance and growth of self-help groups, entrepreneurship for small business trainers or promoters, database administration and e-commerce, management of rural drinking water and sanitation projects; international training programme on prevention of HIV and Aids at the workplace, human resource development and entrepreneurship education trainers; international training programme on leadership development as well as the Parliament Internship programme.

“The connection between poverty and a lack of education or skills is self-evident,” said Cronjé.

“Not only do employers want skilled workers, they also want employees with education geared for a modern, global economy – the knowledge economy.”

She added that in its “2009 International Business Report”, the consultancy firm Grant Thornton reported that 41% of South Africa’s privately owned businesses cited the availability of a skilled workforce as the greatest constraint to business growth.

“It makes infinite sense that education and skills development is a key priority in the South African government’s war against poverty. Therefore, India’s commitment in building the capacity of our people is most welcome,” said Cronjé.

“The Indian Technical and Economic Co-operation Programme is a great gift to South Africa in the 21st century. The fact that [India] continued to sponsor this programme during the difficult times of the global recession is most appreciated.”

She added that India has many experiences to share and technologies available, and its assistance enables KwaZulu-Natal to meet its development challenges.

“By providing technical assistance and education opportunities to our people, you are building a better world,” Cronjé concluded.