isett seta sector skills plan 2011 2016 jan 2011 version v2p1

SECTOR SKILLS PLAN 2011–2016

January 2011 Version 2.1

Isett Seta Sector Skills Plan, 2011 – 2016, Version 2.1, January 2011 Page i

TABLE OF CONTENTS

FOREWORD iv

1 Executive Summary 1

OVERALL OBJECTIVES OF THE ISETT SETA STRATEGIC PLAN 2

2 Introduction 3

2.1 Background 3 2.2 Purpose of the Sector Skills Plan 3 2.3 Defining the Isett Seta Sector 3

2.3.1 Introduction 3 2.3.2 SIC Codes 3

2.4 Caveats 4 2.5 Isett SSP Target Audience 4 2.6 Data Sources 5 2.7 Layout of this Document 7 2.8 Abbreviations Used in this Document 8

3 Isett Seta Sector Profile 10

3.1 Economic Profile 10 3.1.1 Introduction 10 3.1.2 National Outlook 10 3.1.3 Isett Sector Outlook 12 3.1.4 Forecast for the Isett Sector 15

3.2 Isett Stakeholder Sector Assessment 15 3.2.1 Introduction 15 3.2.2 Strengths, Weaknesses, Opportunities and Threats 16 3.2.3 Suggested Implications on and Strategic Goals for ICT Employment and ICT Skills Development 16 3.2.4 Challenges Involved in Developing ICT Skills in Rural Areas 19 3.2.5 Suggested Isett Seta Assistance 19 3.2.6 Sectoral Economic Scenario 20 3.2.7 Isett Assistance with Equity in Stakeholder Organisations 21 3.2.8 Opportunities for New Venture Creation 22 3.2.9 Code of Conduct for Professional Bodies 22 3.2.10 Isett Assistance to Building Capacity 22 3.2.11 Additional Comments and Suggestions 23

3.3 Company Profile 23 3.4 Employment Profile 23

3.4.1 Number of Employees in the Isett Sector 23 3.4.2 Race, Gender and Disability Segmentation of Employees in the Sector 24 3.4.3 OFO Major Group Segmentation of Employees in the Sector 25 3.4.4 Isett Seta Sub-Sectors 26 3.4.5 Provincial Distribution of Employees and Sites 27

3.5 Drivers of Change 28 3.5.1 The Human Resource Development Strategy of South Africa (HRDSSA) 28 3.5.2 The SA Government’s Medium Term Strategic Framework (MTSF) 29 3.5.3 The Industrial Policy Action Plan (IPAP) 29 3.5.4 The Integrated Sustainable Rural Development Strategy (ISRDS) 29 3.5.5 National Industrial Policy Framework (NIPF) 29 3.5.6 ICT Charter 29 3.5.7 Accelerated and Shared Growth Initiative for South Africa (AsgiSA) 32 3.5.8 Joint Initiative on Priority Skills Acquisition (JIPSA) 32 3.5.9 The South African e-Skills Council 33 3.5.10 The Department of Communications 34 3.5.11 Other Legislation 37

3.6 Conclusion and Recommendations 37 3.6.1 Forecast for the Isett Sector 38 3.6.2 Tactics that can be employed by Isett in the Formulation of the 5-year SSP 38

4 Supply of and Demand for ICT Skills 40

4.1 Introduction 40 4.2 Supply of ICT Skills 40 4.3 Demand for ICT Skills 46

Isett Seta Sector Skills Plan, 2011 – 2016, Version 2.1, January 2011 Page ii

4.4 Supply of ICT Skills versus Demand for ICT Skills 47 4.5 Assessment of Formal Education Institutions 48

5 Scarce and Critical Skills 48

5.1 Introduction 48 5.2 Isett Involvement in Types of Training Programmes by NQF Level 48 5.3 Demand for Scarce Skills 50

5.3.1 Introduction 50 5.3.2 Demand for Scarce Skills, by Learning Programmes and NQF Level 50

5.4 Demand for Critical Skills 55 5.4.1 Introduction 55 5.4.2 Demand for Critical Skills, by Learning Programmes and NQF Level 55

6 The Isett Seta 2011 – 2016 Strategy 59

6.1 Introduction 59

1 INTRODUCTION/EXECUTIVE SUMMARY 61

1.1 Key mandate 61 1.2 Objective of the Seta 61 1.3 Legislative framework in which the Seta functions and policy and legislative changes that influence programme spending plans. 61 1.4 Background on establishment 62 1.5 Development of this Strategic Plan 62 1.6 Materiality 62 1.7 Key assumptions underlying the Strategic Plan 63 1.8 The Sector Skills Plan 63

2 PURPOSE OF THE STRATEGIC PLAN 63

2.1 Environmental, Technological and Socio Economic Imperatives 63 2.1.1 Strategic considerations 63

3 VISION 65

4 MISSION STATEMENT 65

5 OBJECTIVES OF THE STRATEGIC PLAN 65

5.1 OVERALL OBJECTIVES 65 5.1.1 Objectives per Component Linked to Programmes 66 5.1.2 Objectives of the Information Systems (IT), Electronics and Telecommunications Technologies Seta 67

5.2 HUMAN RESOURCES 68 5.2.1 Recruitment Strategy / Employment Equity Plan 68

5.3 FINANCIAL RESOURCES 69 5.3.1 Assumptions upon which the Budget Is Based 69 5.3.2 Fixed/Moveable Assets 70

5.4 FINANCIAL RESOURCES OBTAINED FROM DONORS 71

6 RISK MANAGEMENT 71

7 Tactical approach to be employed by the Isett Seta in Executing its 5-Year Strategy 72

7 References 73

Appendix 1: ICT Sector SWOT 74

Appendix 2: Assessment of Formal Education Institutions 76

Appendix 3: Sectoral Economic Scenario 79

Appendix 4: Synopsis of the HRDSSA II MTSF 81

Appendix 5: MEDIUM TERM STRATEGIC FRAMEWORK 84

Appendix 6: Synopsis of potential Isett contribution to the Industrial Policy Action Plan (IPAP) 88

Appendix 7: Synopsis of potential Isett contribution to the Integrated Sustainable Rural Development Strategy (ISRDS) 89

Appendix 8: National Industrial Policy Framework (NIPF) 92

Isett Seta Sector Skills Plan, 2011 – 2016, Version 2.1, January 2011 Page iii

Appendix 9: List of Private FET Colleges 96

Appendix 10: List of Public FET Colleges 111

Appendix 11: List of Public Universities and Universities of Technology that provide ICT Qualifications 112

Appendix 12: A Comparison between the Number of Companies in 2010 against the Number in 2009 113

Isett Seta Sector Skills Plan, 2011 – 2016, Version 2.1, January 2011 Page iv

FOREWORD South Africa is now moving into the third phase of its National Skills Development Strategy, known as NSDS III. It is with confidence that Isett Seta feels that it will service its old and new stakeholders as well as Isett served its Isett stakeholders in the past.

Notwithstanding the hurdles that must be cleared as we move forward, the Isett Seta SSP for 2011-2016 provides the indicators against which our efforts will be evaluated. The need for technical, professional and management skills is clearly identified and we will work together with employers, providers, government and the community to channel appropriate resources into creating the pool of talent that will meet the need. Integrating this skills plan into our own business plan and those of our partners will provide the formula for success.

The combined efforts from all stakeholders to produce this document are gratefully acknowledged. The following deserves special reference:

· Department of Communication on behalf of Government; · Special Interest Groups that served on Isett Seta’s Board; · Industry, via representation on Isett Seta’s Board; · Organised Labour, also through representation on Isett Seta’s Board.

Our thanks go to all the stakeholders whose collective wisdom has been incorporated into this document. This sharing of knowledge is the catalyst for reaching South Africa’s potential.

Oupa Mopaki Lesaiye A Chiloane

CEO: Isett Seta Chairperson of Isett Seta Board

Dr H Wesso

Acting Director General

Department of Communications

Date: 31st January 2011

Isett Seta Sector Skills Plan, 2011 – 2016, Version 2.1, January 2011 Page 1

1 Executive Summary The Isett Seta is responsible for Skills Development in the Information Systems (IT), Telecommunication Technologies, and Electronics subsectors. The Isett sector comprises of 127 Large companies, 256 Medium companies and 2,289 Small companies. The number of employees in the Isett Sector in 2010 was estimated at 143,076. Large companies employ 96,015, Medium companies employ 17,719 and small companies employ 29,342.

In terms of the number of employees, about two-thirds of the employees are employed within Gauteng, followed by the Western Cape at 17%, KwaZulu-Natal at 8% and the Eastern Cape at 3%. The Isett Seta has offices in all four of these provinces.

The IT Sub-sector is the largest sub-sector within the Isett Sector, accounting for just over half of the number of employees, followed by the Telecommunications Sub-sector which accounts for about one-third of the number of employees.

From 2005 to 2008 employment in the Isett sector grew steadily from 133,409 to 144,185. This represents an average increase of 2.6% in employment. As the global economic crisis unfolded in 2008, the economy lost 344 000 jobs between 2008 and 2009, whilst the Isett sector lost about 2,256 jobs. The Sector experienced its first decline in employment in four years, but made a small recovery in 2009/10 with a growth of 0.8%.

In 2009, the percentage of black personnel in the Isett Sector was determined to be 54%. This is short of the national target of 85% black (African, Coloured and Indian). With regard to gender, the Isett Sector was determined to comprise 35% females in 2009, compared to a national target of 54%. Compared to a national target of 4% people with disability to be employed within the country, the Isett Sector was estimated to comprise only about 0.5% people with disability in 2009.

The occupational composition of the sector is as follows: Managers (15%); Professionals (32%); Technicians (23%); Clerical and administrative workers (20%); Sales workers (6%); Machinery operators and drivers (2%); Elementary workers (3%); Elementary (15%). High skills occupations (Managers/Professionals/ Technicians) constitute 70%; intermediate skills (Clerical and administrative workers and sales workers) make up 26% and low level skills; (Machinery operators and drivers and elementary) comprise 5%. A high percentage of people are in the high skills category (70%). There is an opportunity to move people with low level skills into the intermediate category. Likewise there are opportunities for those with intermediate skills to move into the high skills category with meaningful education and training interventions.

The South Africa IT market experienced negative real growth in 2009, and IT Hardware is also likely to experience negative real growth over the next five years. In real terms, the market is seen to be growing at only about 1% per annum for the next five years. This does not bode well for employment in the IT Sector.

According to BMI-TechKnowledge, “Despite the global recession, the South African IT market did register some small growth in 2009. The research group says local IT market revenue grew 2.5% from R60.36-billion in 2008 to reach R61.85-billion in 2009. And it expects a similar growth pattern this year with 2.5% growth to R63.41-billion, and at a compound annual growth rate (CAGR) of 6.3% to reach R83.97-billion in 2014.

The hardware market declined by 3.8% in 2009, from R21.91-billion in 2008 to R21.1-billion in 2009. Hardware accounts for 34.1% of the total IT market and is expected to see a CAGR of 3.3% over the forecast period. Storage will be a category that should outperform other hardware areas due to continued server virtualisation.

The South African IT Services market is estimated to have reached R28.9-billion in 2009, showing a year-on-year growth of 7.2%, and accounted for 46.8% of the total IT expenditure in South Africa. The IT services market value is forecast to grow to R41.39-billion by 2014. This reflects a CAGR of 7.4% over the forecast period. Hosting is the standout category, looking forward, in the IT services arena considering the drive towards cloud computing.

The packaged software market grew by 3.5% in 2009 to R11.86-billion, and is expected to show growth of 8% in 2010. Packaged software accounted for 19.2% of the IT spend in 2009. The packaged software market value is forecast to grow to R17.76-billion by 2014. This reflects a CAGR of 8.4% over the forecast period. Adoption of Software as a service (SaaS) and Virtual Desktop Infrastructure (VDI) are areas that will drive growth in the Software market.”1

1 BMI-Techknowledge press release, 1st June 2010.


OVERALL OBJECTIVES OF THE ISETT SETA STRATEGIC PLAN

I. To determine skills development priorities after an analysis of the skills demand and trends; and supply

issues within the sectors.

II. To develop a sector skills plan within the framework of the national skills development strategy.

III. To allocate grants in the prescribed manner to employers, education and training providers and learners.

IV. To promote learning programmes (Learnerships, Internships and Skills Programmes).

V. To assist designated groups, including new entrants to participate in accredited work integrated learning and

work-based programmes.

VI. To support the development of the skills of employees in the Sector.

VII. To strengthen the institutional capacity of the Information Systems (IT), Electronics and Telecommunications

Technologies Seta in order to improve the productivity and quality of services it provides to its stakeholders.

VIII. To promote the development of skills for self-employment (New Venture Creations).


2 Introduction

2.1 Background On the 1st April 2011, South Africa will move into the third phase of the National Skills Development Strategy, (NSDS III), covering the period 1st April 2011 to 31st March 2016. In order to successfully develop the skills required by stakeholder companies in the Information Systems, Electronics and Telecommunications Technologies Sector Education and Training Authority (Isett Seta) Sector, Isett Seta is required to develop and present its five-year strategy covering this period.

2.2 Purpose of the Sector Skills Plan The purpose of the Sector Skills Plan is to:

· Review national skills development imperatives to determine how the Isett Seta can contribute to these imperatives. These imperatives include the National Industrial Policy Framework and Industrial Policy Action Plan; the Land Restitution and Rural Development Strategies; the Anti-Poverty Strategy; the Technology and Innovations Strategy; new sector-specific plans that emerge; and the HRD Strategy for the Public Sector, as well as the Medium Term Strategic Framework’s strategic priorities.

· Provide an overview of the trends in employment and other factors in the Isett Seta Sector, so that the Isett Seta can forecast trends that will impact on what it will be able to achieve over the next five years.

· Understand the supply of skills into the Isett Seta Sector so that the Isett Seta can further identify those areas to which it needs to focus its training intervention attention. In this regard, the Isett Seta needs to develop a national understanding of the supply and demand of ICT skills, since these skills are also in demand in other sectors outside of the Isett Seta Sector.

· Determine the scarce and critical skills demand of the Isett Seta Sector, at 6-digit Organising Framework for Occupations (OFO) level, so that the Isett Seta can direct resources to assist in satisfying this demand.

Based on a synthesis of the above information, the Isett Seta must then develop and present its five-year strategy for the period 1st April 2011 to 31st March 2016, within which it will identify a set of sector specific priorities that will meet sector needs, including the scarce and critical skills in the sector.

2.3 Defining the Isett Seta Sector 2.3.1 Introduction

It is important that the market which the Isett Seta serves be clearly defined and understood. There are three parameters, defined by legislation, that define the Isett Seta Sector, namely:

· The Standard Industrial Classification (SIC) Codes. The SIC codes that have been allocated to the Isett Seta are listed in the following section.

· Total Annual Payroll. Only organisations that have a total annual payroll exceeding R 500,000 per annum must contribute Skills Development Levies (SDL) for the purposes of skills development.

· Only those organisations that contribute SDL to the Isett Seta.

2.3.2 SIC Codes

During May 2007, the Minister of Labour signed the following Isett Seta SIC Codes into effect.

Table 1: The Isett Seta SIC Code List SIC

Code Description

35791 Manufacture of alarm systems 75200 Telecommunication 75201 Wired telecommunication carriers telegraph 75202 Television broadcasting, television and radio signal distribution television and radio signal distribution 75203 Cable networks and programme distribution cable TV services 75204 Telephone 75205 Wireless telecommunication carriers except satellite radiotelephone 75205 Wireless telecommunication carriers except satellite 75209 Television broadcasting 75211 Telecommunications and wired telecommunication carriers 75212 Paging 75213 Cellular and other wireless telecommunications


SIC Code

Description

75214 Satellite telecommunications 75215 Other telecommunications 75216 Security systems services except locksmiths 75217 Office automation, office machinery and equipment rental leasing including installation and maintenance 86001 Software publishers prepacked software 86002 Computer systems design and related services computer integrated design 86003 Computer facilities management services 86004 Electronic and precision equipment repair and maintenance computer maintenance and repairs 86005 Computer rental and leasing 86006 Computer programming services 86007 Other computer related activities 86008 Call centre systems development and installations activities call centre and customer relationship

management system development 86009 Computer system design services and integrated solutions 86010 Consumer electronics repair and maintenance 86011 Computer and office machine repair, maintenance and support services 86012 Communication equipment repair and maintenance 86013 Other electronic and precision equipment repair and maintenance 86014 Repair and maintenance of electronic marine equipment 87142 Research and development of electronic equipment and systems 87143 Import and product integration of pre-manufactured electronic IT and telecommunications equipment 87146 Research and development in the physical and engineering sciences 87147 Electronics importation and product integration of pre-manufactured electronics IT and telecommunications

equipment 87148 Telecommunications importation and product integration of pre-manufactured electronics IT and

telecommunications equipment 96131 Providing radio and television transmission signals 96133 Installation, maintenance and repair of tracking devices for cars

Source: Department of Labour

2.4 Caveats It is important to note that the Isett Seta Sector does not comprise all organisations in the Information and Communications Technology (ICT) Sector because there are companies that have defined themselves to be in other sectors, such as professional services, despite these companies being recognised as ICT companies. There are also organisations, such as the banks, which have a large ICT skill component but which belong to other industry sectors and Setas. The Isett Sector should therefore be viewed as a sub-sector of the whole ICT Sector.

It is therefore important to note that, since the Isett Seta must address the skills needs of the Isett Seta stakeholder companies, unless stated otherwise, this Sector Skills Plan addresses the Isett Seta Sector specifically, not the ICT Sector, hence to the exclusion of ICT skills demands of other Seta sectors.

2.5 Isett SSP Target Audience In order to keep this SSP correctly focussed, we need to define who the audience is that will make use of the SSP. The Isett Seta sees three audiences that will make use of the information presented in this SSP. These are:

· The Isett Seta itself, the SSP being seen as the foundation material required for consideration to produce its strategy for the next five years.

· The DHET which will monitor the achievements of the Isett Seta against the Isett Seta stakeholder demands for skills development as presented in this document. In this regard, the DHET placed several requirements on the Setas, as specified in their document “Framework for the National Skills Development Strategy, 2011/12 – 2015/16, First Draft for Consultation, 29th April 2010”. The Isett Seta made extensive use of the content of this document in preparing this SSP, and in order to satisfy the needs of the DHET, rather than present this detail in the main body of the document, it has been decided to present this in the Appendices.

· The Isett Seta stakeholder companies who may wish to use the information herein for their own strategic planning. In July 2010, the Isett Seta conducted a survey across its 505 Skills Development Facilitators (SDFs), of which 73 (14%) responses were received. With regard to determining the usefulness of the SSP to our stakeholders, four questions were posed to the SDFs. The responses to these questions are presented below:


Questions posed Yes No No Response

Have you heard of or seen Isett's Sector Skills Plan? 74% 26% 0% Are you aware that we publish this document every year on our website? 74% 25% 1% Have you referred at all to this document? 52% 47% 2% Have you used it for research purposes? 18% 82% 0%

The results reflected in this table indicate that:

o Almost three-quarters of our stakeholders are aware of the SSP and that Isett publishes it on its website.

o While three-quarters of our stakeholders are aware of the SSP, about half of Isett’s stakeholders have referred to this document, and only about 20% have used it for research purposes.

It is suggested therefore that the Isett Seta is the primary user of the SSP.

2.6 Data Sources This document has been compiled using the following sources of data:

· All Annual Training Report (ATR) and Workplace Skills Plan (WSP) data received from Isett stakeholder companies since 1st April 2005.

Over the past few years, there has been criticism of ATR/WSP data collected by Setas. This criticism has been largely directed at Skills Development Facilitators (SDFs) who are accused of simply completing the ATR/WSP as quickly as possible, with no regard to accuracy, simply to receive the Mandatory Grants back. The Isett Seta disagrees with this criticism, on the following basis.

1. Over the years, Isett has built up a strong relationship with its SDFs, the intention being to understand the challenges facing SDFs. In this regard, Isett has adopted the approach of attempting to make the SDFs task as easy as possible. This has been achieved through:

§ The development of a comprehensive SDF Reference Manual which assists SDFs with the methodology of data collection and data capture into Isett’s internet based On-Line Grant System (OGS).

§ The provision of templates to assist with data collection.

§ Conducting annual workshops where the SDFs are taken through the OGS in detail. Approximately 400 out of about 500 Isett SDFs attended in 2010.

§ The provision of strong query support to SDFs from Isett administrators.

2. For the last three years of submissions, Isett built into their system various checks and balances that check for inconsistencies and possible errors that may occur, requesting the SDFs in real time to recheck their data. These checks and balances are pointed out in the ATR/WSP template that is available to the SDFs, so that the SDFs know ahead of time what to expect when they capture their data into the OGS. In many instances, these checks require the SDF to perform additional calculations to confirm the data entered agrees with their collected data, thereby dramatically reducing the possibility of incorrect data entry.

3. Isett has maintained a database of this data going back some 10 years. The new data provided by SDFs is then further analysed by Isett’s researchers to look for inconsistencies. If any are found, the stakeholder is contacted for clarification. For example, a jump in employment could indicate a buy-out or merger.

4. For the past two years, the Isett Seta has informed SDFs that random audits of their inputs may take place to verify the data they provide. In 2011, such audits will take place. This further emphasises to SDFs that they need to take care with the data they provide to the Seta.

5. SDFs are informed that Isett uses the Scarce and Critical Skills data provided by SDFs to indicate whom Isett should partner with on learning programmes in order to achieve its own goals. When applying to Isett for funding assistance on learning programmes, the stakeholder completes a Letter of Intent, motivating their need for learners to be trained, and indicating how many learners need to be trained. On submission of this Letter of Intent to the Isett Seta, Isett checks this request against what the organisation


reflected in its WSP. If there are discrepancies, the stakeholder is requested to explain the difference.

6. For the past two years, SDFs have been requested to indicate why their WSP forecast differs from the ATR actual.

The above actions all serve to obtain the best and most accurate data from SDFs. To test whether there are large discrepancies in the data provided, it was decided in 2008 to test the previous year’s WSP training budget data against what was actually spent during that WSP year, as reflected in the ATR spend for that year. This was done without the SDFs being informed. The following table and observations were reported in Isett Seta’s 2008 SSP.

Table 2: Assessment of Stakeholder ATR Spend versus WSP Budget

Type of Learning Programme

Year ATR/WSP Total Spend/Budget

Ratio of ATR to WSP

Abet 2006 ATR 8,214,562 0.9 WSP 9,584,342 2007 ATR 860,947 0.9 WSP 932,803 Bursaries 2006 ATR 120,842,257 1.2 WSP 103,644,575 2007 ATR 35,264,449 0.8 WSP 45,056,363 Short Courses 2006 ATR 266,884,349 0.8 WSP 328,668,382 2007 ATR 309,793,229 1.0 WSP 306,225,261 Skills Programmes 2006 ATR 33,396,910 0.6 WSP 56,982,211 2007 ATR 92,980,207 1.0 WSP 90,218,855 Internships 2006 ATR 49,261,332 0.5 WSP 101,906,519 2007 ATR 47,556,093 0.7 WSP 69,538,178 Learnerships, 18.1 2006 ATR 18,297,300 0.5 WSP 36,315,039 2007 ATR 28,560,616 0.9 WSP 30,615,697 Learnerships, 18.2 2006 ATR 38,939,084 0.8 WSP 47,849,259 2007 ATR 43,528,852 1.0 WSP 44,901,866 End User Computing 2007 ATR 9,631,287 1.3 WSP 7,413,684 Totals 2006 ATR 535,835,794 0.8 WSP 684,950,328 2007 ATR 568,175,681 1.0 WSP 594,902,707

Source: Isett Seta OGS

The table shows that, apart from bursaries in 2006 and end-user computing in 2007, stakeholders spent a little less on learning programmes than what was budgeted. The extreme cases of under-spend against budget occurred with skills programmes in 2006, Internships in both 2006 and 2007, and learnerships in 2006. Generally though, there was only about a 20% under-spend against budget in 2006, whereas the spend in 2007 closely approximated the budget for that year. Since budgets are budgets, not cast in concrete but at least providing direction, a discrepancy of 20% is not seen to be serious. The implication here is that Isett stakeholders appear to take this process of budgeting and reporting in their ATRs and WSPs seriously. In other words, the data provided by stakeholders should be viewed as being acceptably accurate.

There are arguments that Setas should outsource the research for data and input to Seta SSPs. With respect to the Isett Seta though, Isett SDFs provide extensive and detailed data, requiring a lot of effort on the SDFs part, and in many stakeholder companies, this can consume several weeks of the SDFs time. It is unlikely that outsourced researchers will be able to obtain this extent of data within what would probably a one or two hour interview.

It is also unlikely that outsourced researchers will cover the number of organisations from which Isett receives ATR/WSP data. As an example, the Isett Seta ATR/WSP data was received from about


1,000 of its 2,600 organisations. These 1,000 organisations employ 88% of employees within the Isett Sector in 2010. Almost 100% of companies with 150 or more employees provided their data. About 85% of companies with 50-149 employees provided their data. About 25-30% of companies having fewer than 50 employees provided their data.

In conclusion, the ATR/WSP data is seen to be of critical importance to the Isett Seta.

· 2010 National ICT Skills Survey, a partnership between Isett Seta, Joburg Centre for Software Engineering (JCSE) and IT Web.

· Questionnaires to obtain insights into the Isett Sector, sent to the Isett Seta’s Board Members who represent the following organisations:

o Black Information Technology Forum (BITF)

o Computer Society South Africa (CSSA)

o Communication Workers Union (CWU)

o Electronics Industry Federation (EIF)

o The Information Technology Association (ITA)

o South African Communications Forum (SACF)

o Telecommunications Skills Development Forum (TSDF)

· Questionnaires to obtain insights into the Isett Seta Sector, sent to the top thirty Isett Seta company stakeholders, who together employ almost half of the employees within the Isett Sector.

· The Department of Higher Education and Training (DHET), HEMIS Division for national qualification supply data. DHET provided MICTS with about 800 Megs of data in 680 files. This data was collated into one database in order to analyse the supply side of people entering and achieving tertiary qualifications, and allowing a comparison of the supply of ICT graduates against the demand for such graduates on a national basis.

· The Scarce and Critical Skills reports of the other Setas to assess the demand for ICT personnel across the whole of South Africa. These reports were either downloaded from the various Seta websites, or received directly from Setas via email.

· Statistics South Africa (Statssa).

· IT Web for information on the ICT Charter.

· Desk Research for information on:

o Accelerated and Shared Growth Initiative for South Africa (AsgiSA)

o Joint Initiative on Priority Skills Acquisition (Jipsa)

o E-Skills Council

o ICT Charter

· Desk Research for data from:

o Past Isett Seta Annual Reports

o BMI-TechKnowledge

o World Information Technology and Services Alliance (WITSA)

2.7 Layout of this Document This document comprises six Chapters and several Appendices. The six Chapters are:

· Chapter 1 which is the Executive Summary presented above.

· Chapter 2, this chapter, which provides the perspective used in developing this SSP.

· Chapter 3, which focuses primarily on an overview of the MICTS Sector, with little consideration of the national situation for the reasons presented therein. This chapter addresses forecasting for the MICTS Sector, and presents an assessment of stakeholder opinion on the issues facing the MICTS Sector. This chapter also looks at the size of the MICTS Sector in terms of the number of organisations I the sector and the number of employees in the sector. Finally, the drivers of change are reviewed.

· Chapter 4 presents the supply of and demand for ICT skills within the MICTS Sector.


· Chapter 5 reviews the scarce and critical skills that stakeholders have presented to MICTS through the June 2010 ATR/WSP submissions.

· Chapter 6. Based on the inputs from Chapters 1 to 5, as well as the inputs from the Appendices, the MICTS five year strategy is presented in this chapter.

· Chapter 7 presents a list of references used in this document.

· Appendices 1 to 3 presents the inputs received from Isett stakeholders on issues facing the Isett Sector. This includes a SWOT analysis, an assessment of the formal education institutions, and sector economic considerations.

· Appendices 4 to 8: DHET placed several requirements on the Setas, as specified in their document “Framework for the National Skills Development Strategy, 2011/12 – 2015/16, First Draft for Consultation, 29th April 2010”. In particular, the Setas were referred to several national policy, strategy and framework documents, the purpose being that the Setas determine where they can contribute to the objectives of these documents. As evidence that the review of these documents took place, and to provide an indication of where MICTS feels it can contribute, these findings are presented in the Appendices rather than including that detail in the main body of the SSP.

· Appendices 9 and 10 present lists of private and public FET Colleges for future ease of reference by MICTS.

· Appendix 11 lists the public universities and universities of technology that specifically provide ICT qualifications, as determined using the HEMIS data provided by DHET. This information is also presented for future ease of reference by MICTS.

· Appendix 12. In 2009, DHET requested an assessment of the change in the number of companies within Isett’s sector from 2008 to 2009. This assessment from 2009 to 2010 has therefore been included.

2.8 Abbreviations Used in this Document Abbreviation Description ABET Adult Basic Education and Training AsgiSA Accelerated and Shared Growth Initiative for South Africa ATR Annual Training Report BBBEE Broad-Based Black Economic Empowerment BEE Black Economic Empowerment BITF Black Information Technology Forum BPO Business Process Outsourcing CAGR Compound Annual Growth Rate DBE Department of Basic Education CSIR Council for Scientific and Industrial Research CSSA Computer Society South Africa CWU Communication Workers Union DoC The Department of Communications DHET The Department of Higher Education and Training DoL The Department of Labour EIF Electronics Industry Federation ETQA Education and Training Quality Assurance FET Further Education and Training (Institution) GDP Gross Domestic Product HEMIS Higher Education Management Information System HET Higher Education and Training (Institution) HIV/AIDS Human Immune Virus / Acquired Immune Deficiency Syndrome HRD Human Resource Development HSRC Human Sciences Research Council ICT Information and Communications Technology Isett Information Systems, Electronics and Telecommunications Technologies ISOE Institute of Sectoral Occupational Excellence IT Information Technology ITA The Information Technology Association ITAC Information Technology Acquisition Centre JCSE Joburg Centre for Software Engineering JIPSA Joint Initiative on Priority Skills Acquisition


Abbreviation Description NGO Non-Governmental Organisation NQF National Qualifications Framework NSA National Skills Agency NSDS National Skills Development Strategies NSF National Skills Fund OFO Organising Framework for Occupations OGS On-line Grant System (Isett Seta system for electronic capturing of WSP and ATR data) PDI Previously Disadvantaged Individual QCTO Quality Council for Trades and Occupations SASCO South African Standard Classification of Occupations SAQA South African Qualifications Authority SDF Skills Development Facilitator SDL Skills Development Levy Seta Sector Education Training Authority SIC Standard Industrial Classification SME Small and Micro Enterprises (less than 50 employees in Isett’s context) SMMEs Small, Medium and Micro Enterprises (less than 150 employees in Isett’s context) SSP Sector Skills Plan Statssa Statistics South Africa the dti The Department of Trade and Industry USD United States Dollar VoIP Voice-Over-Internet-Protocol WITSA World Information Technology and Services Alliance WSP Workplace Skills Plan


3 Isett Seta Sector Profile

3.1 Economic Profile 3.1.1 Introduction

The purpose of Section 3.1 is to review the economic profile of the country and more specifically the Isett Seta Sector, with a view to forecasting annual growth to April 2016, which will be used as the basis for forecasting employment and training growth rates that will be utilised in developing Isett’s 5-year Sector Skills Plan.

3.1.2 National Outlook

The following excerpt summarises the most recent perspective on South Africa’s economy:

“Leading economists say that South Africa, currently underperforming its potential with around 3% growth, needs to at least double that to solve its economic misery and avoid it spilling into serious social unrest.

The central bank has done its bit by cutting the repo rate by 550 basis points since December 2008 to a three-decade low of 6,5% to spur growth in the manufacturing and commodity dependent economy, one of the world's key gold and platinum producers.

Partly on the back of easier rates and a recovery in the global economy, South Africa exited its first recession in almost two decades in the third quarter of 2009 and quickened the pace of the recovery with a 4,6% rise in Q1 2010.

But the faster rate growth did not stop the job haemorrhage, with 171 000 jobs disappearing, pushing the jobless rate to a six-year high of 25.2% of the labour force. Unofficially it may be as high as 40%.

The next three years (2010 – 2012) won't bring relief either as growth is seen averaging 3% to 3.5%, a far cry from the average five percent growth between 2004 and 2007. A possible slowdown in the euro zone, a major trading partner, also clouds the outlook.”2

The following figure presents the real year-on-year growth in South Africa’s Gross Domestic Product (GDP) at constant 2005 prices.

Figure 1: Real year-on-year Growth in South Africa’s Gross Domestic Product (GDP) at constant 2005 prices

2.7%

3.7%

2.9%

4.6%

5.3%5.6% 5.5%

3.7%

-1.8%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Statssa, Statistical Release P0441, Gross Domestic Product, First Quarter 2010, Page 8

With regard to unemployment, the following article, published on the web by Business Report should be noted:

2 Polity.org.za, “SA may face unrest over jobs, poverty anger”, 21st June 2010


“Youth unemployment in South Africa is gnawing at its economic recovery as new research reveals the proportion of youth under the age of 24 who cannot find work is now at a shocking 74 percent.

Writing in the June 2010 Adcorp Employment Quarterly update, Human Sciences Research Council (HSRC) executive director, Miriam Altman, agrees that their new data shows this is the heart of the economic problem, with 75 percent of the job losses experienced during the 2009/2010 recession being people under the age of 34.

The youth have clearly been the group most let down as SA's unemployment rate ratcheted up from 13 percent in 1994 to 25 percent now, with Adcorp data indicating the situation is so dire that 64 percent of unemployed people have been out of work for a year.

The data also shows that in 2009/2010 46 percent of all jobs created since 2000 were lost.

Part of the problem is the strong move to highly skilled work as there has been a 36 percent reduction since 1960 in the number of workers needed to produce a given level of output.

Another problem in SA gleaned from the data is that a lot of the jobs are not sustainable - 28 percent is the proportion of temporary, part-time and contract work in total employment.

Altman proposes five concrete suggestions to reduce unemployment: dramatically expanding the Further Education and Training (FET) system; increasing employment in lower, entry-level grades of the public service; extending the Expanded Public Works Programme (EPWP); supporting small-scale agriculture; and introducing incentives for job/job-seeker matching.

Although most of these initiatives depend on public sector initiative and/or participation, she argues that the private sector will need to play a role in generating positive activity for young people.

Meanwhile, writing in the same report, Centre for Development and Enterprise (CDE) Executive Director Ann Bernstein, points out that South Africa's essential economic policy priority must be to encourage the creation of more jobs.

"Every other economic goal and policy should be tested by whether it helps to generate jobs," she says.

Berstein warns that South Africa's fast-growing welfare system will not be able to address the needs of the unemployed.

Rather, her research suggests that deregulation and business-friendly policies are the key to making real improvements in peoples' lives.

To illustrate the point, she suggests four concrete experiments: tax breaks and hiring/firing law exemptions for youth; special economic zones (SEZs); vocational training and apprenticeships in towns like Nelspruit and Witbank; and simple government employment schemes in poor provinces like Limpopo and the Eastern Cape.

"Based on these experiments, we will be able to discover what kinds of policies work, and which do not," she says.

Adcorp's chief executive officer, Richard Pike, and labour market analyst, Loane Sharp, argue that we should look to contemporary, not historical, policies for an understanding of causes and solutions in the unemployment debate.

They suggest that unemployment in South Africa can be traced back to onerous labour laws and trade union militancy.

They argue that their 12-step action plan of targeted deregulation will greatly accelerate job creation; and, in the mean time, while those actions are implemented, we should introduce voluntary national service and "youth vouchers" to address youth unemployment.

Specific regulations that come under discussion include dismissal procedures in the Labour Relations Act; immigration restrictions contained in the Immigrations Act; criminalisation of the Occupational Health and Safety Act; and enforcement problems related to the Employment Equity Act. - I-Net Bridge.”3

In summary, the opportunities expressed above are:

· Expand the Further Education ad Training System.

· Increase employment in lower, entry-level grades of the public service.

· Extend the Expanded Public Works Programme (EPWP).

· Support small-scale agriculture.

· Introduce incentives for job/job-seeker matching.

· Deregulation.

3 Published on the web by Business Report on June 23, 2010.


· Business-friendly policies.

· Address onerous labour laws and Labour Union militancy.

· Introduce voluntary national service.

The national indicators do not provide sufficient insight into the dynamics of the ICT Sector. The national GDP for example comprises an aggregation of the GDP contributions of several industries, as shown in the following pie chart.

Figure 2: Industry Contribution to National GDP, 2009

Mining and quarrying 6%

Manufacturing 17%

Transport, storage and communication

10%

Finance, real estate and business

services24%

General government services

15%

Personal services 7%

Electricity, gas and water 2%

Construction 4%

Wholesale, retail, motor trade and accomodation

13%

Agriculture, forestry and fishing

2%

Source: Statssa, Statistical Release P0441, Gross Domestic Product, First Quarter 2010, Page 8

Each of these industries differs in terms of the percentage of ICT technical personnel within each of the industries. The “Mining and quarrying” industry for example does not have much in the way of ICT personnel, these skills instead either being outsourced or provided by the suppliers of software and equipment.

Furthermore, as will be observed in the above figure, there is no defined ICT industry. The ICT industry comprises ICT equipment, provided primarily by the importers/retailers of this equipment, ICT software, provided by importers/retailers and local developers of software, and ICT services, provided largely by local providers. The challenge here is that software developers, for example, may reside in several of the industries shown in the figure above.

In order to understand and forecast the growth of the ICT Sector, one therefore has to turn to other available data.

In terms of future projections, the South African Reserve Bank (SARB) forecasts CPI to be about 5.3% to end-2012.4 This forecast will be assumed to continue to April 2016.

3.1.3 Isett Sector Outlook

According to BMI-TechKnowledge, “Despite the global recession, the South African IT market did register some small growth in 2009. The research group says local IT market revenue grew 2.5% from R60.36-billion in 2008 to reach R61.85-billion in 2009. And it expects a similar growth pattern this year with 2.5% growth to R63.41-billion, and at a compound annual growth rate (CAGR) of 6.3% to reach R83.97-billion in 2014.

The hardware market declined by 3.8% in 2009, from R21.91-billion in 2008 to R21.1-billion in 2009. Hardware accounts for 34.1% of the total IT market and is expected to see a CAGR of 3.3% over the forecast period. Storage will be a category that should outperform other hardware areas due to continued server virtualisation.

The South African IT Services market is estimated to have reached R28.9-billion in 2009, showing a year-on-year growth of 7.2%, and accounted for 46.8% of the total IT expenditure in South Africa. The IT services market value is forecast to grow to R41.39-billion by 2014. This reflects a CAGR of 7.4% over the forecast period. Hosting is the standout category, looking forward, in the IT services arena considering the drive towards cloud computing.

The packaged software market grew by 3.5% in 2009 to R11.86-billion, and is expected to show growth of 8% in 2010. Packaged software accounted for 19.2% of the IT spend in 2009. The packaged software market value is forecast to grow to R17.76-billion by 2014. This reflects a CAGR of 8.4% over the forecast period. Adoption of

4 South African Reserve Bank, 2010-05-13: Statement of the Monetary Policy Committee, Section 3. The outlook for inflation.


Software as a service (SaaS) and Virtual Desktop Infrastructure (VDI) are areas that will drive growth in the Software market.”5

Based on the information provided above by BMI-TechKnowledge, the following table has been constructed. In terms of future projections, the South African Reserve Bank (SARB) forecasts CPI to be about 5.3% to end-2012.6. To convert from Current Rands to Real Rands, this projected CPI of 5.3% per year was utilised and extended to 2014 for lack of further data.

Table 3: The South African IT Market

2008 2009 2010 2011 2012 2013 2014 The South African IT Market Revenue (Current Rands - R bn) IT Hardware 21.91 21.10 21.80 22.52 23.26 24.03 24.82 IT Services 26.97 28.90 31.05 33.35 35.83 38.49 41.39 IT Packaged software 11.46 11.86 12.81 13.90 15.08 16.37 17.76 Total 60.36 61.86 63.41 68.02 72.97 78.28 83.97 The South African IT Market Annual Growth (Based on Current Rands) IT Hardware -3.7% 3.3% 3.3% 3.3% 3.3% 3.3% IT Services 7.1% 7.4% 7.4% 7.4% 7.4% 7.5% IT Packaged software 3.5% 8.0% 8.5% 8.5% 8.5% 8.5% Total 2.5% 2.5% 7.3% 7.3% 7.3% 7.3% The South African IT Market Revenue (Constant 2009 Rands - R bn) National CPI 6.2 5.3 5.3 5.3 5.3 5.3 IT Hardware 23.27 21.10 20.70 20.31 19.92 19.54 19.17 IT Services 28.64 28.90 29.48 30.08 30.69 31.31 31.97 IT Packaged software 12.18 11.86 12.16 12.54 12.92 13.31 13.72 Total 64.09 61.86 62.35 62.92 63.53 64.17 64.86 The South African IT Market Annual Growth (Based on Constant 2009 Rands) IT Hardware -9.3% -1.9% -1.9% -1.9% -1.9% -1.9% IT Services 0.9% 2.0% 2.0% 2.0% 2.0% 2.1% IT Packaged software -2.6% 2.6% 3.1% 3.1% 3.1% 3.0% Total -3.5% 0.8% 0.9% 1.0% 1.0% 1.1%

Source: BMI-TechKnowledge

As will be observed in the table above, the South Africa IT market experienced negative real growth in 2009, and IT Hardware is also likely to experience negative real growth over the next five years. In real terms, the market is seen to be growing at only about 1% per annum for the next five years. This does not bode well for employment in the IT Sector.

The above data reviews only the IT market, to the exclusion of telecommunications. Data published by World Information Technology and Services Alliance (WITSA) covers the whole ICT market, which includes the “Communications” Sector, as presented in the table below. The data is presented in USD.

Table 4: South Africa's ICT Spend

2008 2009 2010 2011 2012 2013 South Africa's ICT Spend (Current USDm) Computer Hardware 3,096.70 3,048.20 3,246.90 3,617.00 3,924.20 4,260.20 Computer Software 2,263.30 2,296.10 2,492.00 2,843.50 3,129.00 3,417.60 Computer Services 4,432.50 4,520.50 4,901.20 5,573.80 6,125.50 6,685.20 Communications 18,708.70 20,097.50 24,258.30 25,489.00 26,350.20 27,180.50 Total 28,501.20 29,962.30 34,898.40 37,523.40 39,528.80 41,543.60 Growth in South Africa's ICT Spend Computer Hardware 9.3% -1.6% 6.5% 11.4% 8.5% 8.6% Computer Software 13.6% 1.4% 8.5% 14.1% 10.0% 9.2% Computer Services 14.6% 2.0% 8.4% 13.7% 9.9% 9.1% Communications 2.9% 7.4% 20.7% 5.1% 3.4% 3.2% Total 6.0% 5.1% 16.5% 7.5% 5.3% 5.1%

Source: World Information Technology and Services Alliance (WITSA)

5 BMI-Techknowledge press release, 1st June 2010. 6 Ibid.


The data in this table cannot be compared with the data in the previous table because of the inclusion now of “Communications” in the table above, which quite likely includes consumer spend on cellular and landline communications. Hence, telecommunications is seen to play an important role in the growth of the ICT Market.

Note that this table forecasts large growth for 2010. This growth comes from the “Communications” sub-sector, and it is suspected that WITSA took into account the magnitude of communications in South Africa as a result of the 2010 Soccer World Cup. It should be noted though that the 2010 growth needs to be discounted when one forecasts growth for the Isett Seta Sector. Furthermore, it is suspected that the growth reflected in this table is based on current Rands (converted to US$), so one has to reduce the annual growth by an anticipated CPI of about 5% per year. This results in a low (negligible) real growth rate for 2012 and 2013.

To gain further insight into growth within the Isett Seta Sector, we turn our attention to the growth in Skills Development Levies received by Isett over the past few years, as well as the amount of revenue that Isett stakeholder companies have been investing into skills development, over and above their levy contribution, into skills development. This data is presented in the following table, as well as employment data, for the period 2005 to 2009.

Figure 3: Growth within the Isett Sector in Investment in Skills Development, and in Employment, 2005 - 2009

Item Indicator 2005 2006 2007 2008 2009 1 Skills Development Levy Income (Current Rands x

1,000)**[1] 187,435 213,005 242,992 279,774 314,689

2 Growth in Skills Development Levy, based on Current Rands

9.3% 13.6% 14.1% 15.1% 12.5%

3 CPI (%)[2] 3.4% 4.6% 7.2% 11.5% 6.2% 4 Real Skills Development Levy (Constant 2005 Rands x

1,000) 187,435 203,637 216,703 223,772 237,004

5 Real Growth in Skills Development Levy 5.7% 8.6% 6.4% 3.3% 5.9% 6 Expenditure by Isett Stakeholders on Training (Current R x

1,000)[3] 491,900 535,800 568,200 616,500 790,000

7 Real Expenditure by Isett Stakeholders on Training (Constant 2005 Rands x 1,000)

491,900 512,237 506,728 493,096 594,978

8 Real Growth in Expenditure by Isett Stakeholders on Training

4.1% -1.1% -2.7% 20.7%

9 Total Real Expenditure on Training 679,335 715,875 723,431 716,869 831,982 10 Real Growth in Total Expenditure on Training 5.4% 1.1% -0.9% 16.1% 11 Employment[4] 133,409 136,169 140,432 144,185 141,929 12 Growth in Employment 2.1% 3.1% 2.7% -1.6% ** This data is 70% of the total skills levy contribution made by companies, and represents the amount of mandatory and discretionary funds that can be placed back into skills development by Isett Seta.

[1] Isett Seta Annual Reports, 2005/6 to 2009/10 [2] Statssa, Consumer Price Index, P0141 [3] Isett OGS [4] Isett Seta SSP, 2009/2010

To explain this table, Item 1 presents the Skills Development Levy received by Isett Seta as reflected in Isett’s Annual Reports. This value has been adjusted for inflation (Item 3) to be presented as the real value in Item 4. Item 6 presents the expenditure on skills development as provided to Isett via the ATRs, which is converted to real Rands in Item 7, using the CPI of Item 3. Item 9 comprises the sum of the real Skills Development Levy (Item 4) and the real Expenditure by Isett Stakeholders on Training (Item 7), and from this, the real growth in total training funds is determined as Item 10. The real growth in expenditure on training is then determined as Item 10.

Items 11 and 12 have been obtained from an analysis of historical ATR data.

From the table above, is can be observed that:

· In real terms, the levy contribution provided to Isett has been growing every year since 2005. The Compound Annual Growth Rate (CAGR) from 2005 to 2009 is determined to be 6.0%.

· In real terms, expenditure by Isett Stakeholders on training, excluding their levy contribution, has been declined to 2008, but grew significantly in 2009.

· The real growth in total expenditure on training declined in 2008. Because of the high spend in 2009, the CAGR from 2005 to 2009 is determined to be 5.2%.

· Regarding employment within the sector, growth has been positive over this period, except in 2009, influenced by the global recession. Nevertheless, the CAGR from 2005 to 2009 is determined to be 1.6%.


3.1.4 Forecast for the Isett Sector

In summary, and after reviewing the above information, the Isett Seta will base its 5-year SSP forecasts using the following projections:

Forecast 2011 - 2016

CAGR

2009 (Actual)

2010 2011 2012 2013 2014 2015 2016

Forecast Real Skills Development Levy (Rands x 1,000)

6.0% 314,689 333,570 353,584 374,799 397,287 421,124 446,391 473,174

Forecast CPI (%) 6.2% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% Forecast Skills Development Levy (Current Rands x 1,000)**

351,249 392,057 437,606 488,447 545,195 608,535 679,234

Forecast Employment 1.6% 141,929 143,076 145,308 147,574 149,876 152,214 154,588 156,999 ** This data is 70% of the total skills levy contribution made by companies, and represents the amount of mandatory and discretionary funds that can be placed back into skills development by Isett Seta.

The reader should note that Isett is not a sales type of business where income can vary according to several factors such as GDP. The primary determining factor that influences what the Isett Seta can achieve is its level of income, which is directly related to stakeholder levy contributions. Levy contributions from stakeholders are legislated to be 1% (80% thereof going to the Setas) of stakeholder salaries and wages. Level of income to Isett is therefore dependent on the level of employment in the Isett Sector, and the level of inflation, which impacts on salaries and wages. As is evident from the table presented above, based on the previous five years, employment is forecast to be approximately 1.6% per year for the next five years. This is a very low growth rate, and it was decided to ignore this growth rate in forecasting level of income. This results in a slightly conservative approach, but a better approach in view of the fact that overspending on budget could result in negative results from the Auditor General.

The end result in forecasting level of income is therefore the impact of inflation on salaries and wages, and hence of level of income to Isett.

The Isett Seta feels that this is an adequate means of determining forecasting for the way forward, and feels that very little further value can be added by spending resources on more detailed inputs.

3.2 Isett Stakeholder Sector Assessment 3.2.1 Introduction

In DHET’s “Framework for the National Skills Development Strategy, 2011/12 – 2015/16, First Draft for Consultation, 29th April 2010”, it is requested that the Setas obtain inputs from stakeholders. In order to obtain inputs on several topics from the Isett Seta stakeholders, the Isett Seta developed and distributed a questionnaire to its Board Members, representing six organisations, and to its top 30 Isett Seta companies, the latter employing almost 50% of the employees in the Isett Sector. Of these 36 organisations, the Isett received responses from two associations on its Board, and 13 of the top 30 companies. The Isett Seta would like to thank the following organisations for the valuable and comprehensive responses they returned to Isett:

1. Bytes Managed Solutions

2. Bytes Outsource Services

3. Computer Society of South Africa (CSSA)

4. Derivco

5. Department of Communications

6. Ericsson Sub Saharan Africa

7. Helios Copier

8. The Information Technology Association (ITA)

9. Joburg Centre for Software Engineering (JCSE)

10. Mobile Telephone Networks (MTN)

11. MWeb Connect

12. Nashua Mobile

13. Nokia Siemens

14. State Information Technology Agency (SITA)

15. T-Systems


Each of the following sections provides the findings resulting from the respective sections in the questionnaire.

3.2.2 Strengths, Weaknesses, Opportunities and Threats

The purpose of requesting inputs on the strengths, weaknesses, opportunities and threats of the Isett Sector was primarily to place the respondents in the right frame of mind to address the subsequent sections of the questionnaire. The findings on this question relating to determining the respondents view on the strengths, weaknesses, opportunities and threats of the Isett Sector are presented in Appendix 1: ICT Sector SWOT on page 74.

3.2.3 Suggested Implications on and Strategic Goals for ICT Employment and ICT Skills Development

3.2.3.1 Implications on ICT Employment

The implications on ICT employment, as seen the Isett Seta stakeholders, are:

Poor Source of Potential Employees

o Lack of relevant output from training & education institutions.

o ICT Skills development and employment are at best incongruous. Trying to match the skill with the job difficult.

Employee Competence

o Shortage of competent practitioners.

o Posts will be filled with under skilled employees.

o Constant need for up skilling.

o Market changes rapidly and skills don’t follow quickly enough.

Skills Shortage

o Number of vacancies will increase.

o Incentives needed to promote both the demand and the supply.

o Expect an increase in employment but more specifically at the higher end.

o ICT employment opportunities will always be available, but has become more specialised, hence a shortage.

o Sometimes need to find skills at short notice.

o Highly skilled individuals expensive.

o People less likely to change their jobs or seek alternate employment.

o Few employment opportunities due to lack of skills, high staff turnover.

Loss of Skills

o Emigration.

o Lack of capacity to implement ICTs.

o Talent Management is a huge priority – retention issues.

o Insecurity around the financial wellbeing of the sector could lead citizens to pursue other careers in more lucrative industries.

Other

o Relatively high dependence on consultants and contractors for project-type work; but this often turns into long-term arrangements (also part of the new ways of working worldwide). People will have to take a more flexible approach to employment.

o Legislation regarding Labour Brokering will have a big impact on the ICT sector in terms of employment patterns.

o Slower economic growth does not allow for absorption of all the skills available and or required.

o Negative impact on service delivery, profitability and sustainability of companies.


3.2.3.2 Implications on ICT Skills Development

The implications on ICT skills development, as seen the Isett Seta stakeholders, are:

Definition/Provision of Required Skills

· Unless there is a willingness by the industry to clearly articulate their skill requirements, we stand the risk of falling so far behind it would take years to reverse the backlog.

· Short term needs impacting on accelerated skills development plans.

· Not all qualifications are obtainable locally, hinders skills development due to costs of sending people abroad.

· Often competence and learning sits internationally – expensive to send individuals for this, or get an expert to visit locally.

· IT Security will require constant skills development.

· There will always be demand for specialist technical skills knowledge e.g. ESM specialists or security specialists.

· Off shoring - focus on Service Desk skills.

· Training does not appear to be demand led. This leads to wrong subject and career choices.

· More collaboration between business and tertiary institutions.

· Existing staff will need to be up-skilled and the need for basic A+ and N+ qualifications will be the minimum essential entry level requirement.

Poor Source of Potential Employees

· Not enough excellent young candidates coming through for employment.

· Education system not responsive to ICT Skills development. Should start at grass-root level, Grade 6-7, to encourage scholars to select maths and science.

Alternative Education and Training

· There will be a need to route young people with potential through less expensive non-university qualifications.

· Professional organisations will need to play a greater role in offering and certifying suitable practice-related qualifications.

· Dynamic environment - requires constant upgrading of skills to keep up with technology. Just-in-time learning required.

· Cost pressures - look at alternative ways of learning (e.g. e-learning, virtual classrooms).

· New technologies and applications require development of learning interventions that do not yet exist.

· Skills need to be developed at a faster pace to keep up to date with global developments.

Employee Competence

· Focus not only on technical skills, but also service delivery skills, business understanding and industry knowledge.

· Generic / life skills as opposed to specialist knowledge.

· Pressure on Business to offer bursaries etc to get people to complete studies.

· Bursaries should be given to Scholars who excel.

Loss of Skills

· Citizens leaving the ICT Sector will strain the existing individuals’ workload and escalate needs for skills development and training.

Other

· Lack of a proper labour market database. The e-Skills Council and its Working Group have a mandate but lack the data and the capacity to make it effective.

· Due to cost containment, training spend is likely to be reduced.


· Consultants and contractors are often unwilling to share knowledge – keeps business dependent on their service and limits development for new entrants to the field.

3.2.3.3 Suggested ICT Sector’s Strategic Goals for ICT Employment and ICT Skills Development

The Isett stakeholders were requested to provide suggestions with regard to setting strategic goals for ICT employment and ICT skills development. These are:

Content, Quality and Innovation

· Understand the shift in technologies and the underlying skills requirements that emanate from these changes. Engage all the relevant stakeholders to research and develop suitable programs and learnerships.

· Raise the level and capacity of schools and universities to attract and educate young people and to encourage them to go on to artisan/post-graduate level by creating effective relationships between industry and academia.

· As we cannot compete with India and China on price, it should be our aim to create an ICT industry known for quality and innovation. In order to do this we need to attract the cream from the education system to the industry and incentivise them to become world leaders in ICT.

· Encourage institutions of learning to achieve a sufficient balance of technical / theoretical knowledge with practical application to ensure readiness for technical roles in ICT.

· Encourage institutions of learning to incorporate business and industry knowledge in IT related qualifications.

· Funding of learnerships and internships to ensure entrants to the industry can get work-related exposure.

· Enhanced learnership offerings.

· Skills development at the higher end. The market is over stocked with entry level qualifications but there is a great need for both qualifications and experience at the higher end.

· ICT should focus on developing individuals to specialise in areas of security, networks, mobility, software and hardware development, business system etc.

· Collaboration between business education and labour in determining what qualifications and content is relevant and current for the sector as an imperative.

· Establish competence models/frameworks that span the sector/industry.

· Enable/encourage/reward local innovation.

· Improve quality of education and skills development at a grass roots level – e.g. sponsor teacher development and encourage maths and science focus at school level.

· Higher level skills, R&D.

Rural

· Making ICT skills available to youths in rural areas.

Placement

· Enable placement of unemployed qualified candidates by making opportunities / vacancies in the ICT sector more visible to them.

Skills/knowledge Transfer

· Encourage skills/knowledge transfer within organisations to ensure career progression of lower levels of ICT staff. Subject Matter Experts to get more involved in training and development in terms of the knowledge transfer.

ICT Career Marketing

· Education at the grass-root level (schools), more exhibitions to make scholars aware of career choices.

Incentives

· Bursaries for Maths, Science and ICT Skills.

· Greater incentives for Interns, Learnerships and skills programmes.


· Provide grants/ bursaries for Telecommunication specific fields of study at tertiary institutions.

· Incentivise companies to work in this (ICT) arena, possibly through tax incentives on an individual and corporate basis.

ICT Market Development

· Increase uptake and usage of ICTs and intensify skills development programs amongst unemployed.

3.2.4 Challenges Involved in Developing ICT Skills in Rural Areas

The following table presents inputs from Isett stakeholders on their perceptions of challenges involved in developing ICT skills in rural areas.

Table 5: Challenges Involved in Developing ICT Skills in Rural Areas

Challenges Involved In Developing ICT Skills

In Rural Areas

What Would be Required to Overcome this Challenge

Access to candidates/educators

· Upliftment of rural school facilities/ PCs and internet access · Build more training centres. · Lower cost, subsidised roll out of infrastructure. · Focus on ICT skills and use of ICT-powered content throughout teacher training interventions. Engage local

industry. · Use of digital villages in rural areas. · More rural colleges giving one-, two- or three-year post-Matric qualifications in ICT should be established · Utilise infrastructure in the area; possibly use municipal facilities, e.g. city halls. · Improve the GSM Network and reduce the Internet costs. · Invest in IT infrastructure. Networks, electricity and cabling. Our bandwidth is shocking. · Concept of "mobile training lab" - instead of setting up expensive ICT infrastructure in rural areas where it cannot

be sustained, bring the training lab to the area of a period of time. · Basic equipment is not up to standard. Students have to share computers etc. · More focus on technical and electronics training e.g. A+, N+. · Increase Learnerships equivalent to Matric qualification. · Transport facilities. · Centres to be set up and equipped with up to date technology, using SDL payments and sponsorships.

Quality of Education · Seta to work closer with Department for Basic Education to help bridge the gaps. · The problem is that what goes wrong in a month in grade 1 cannot be fixed by a year in grade 12. Unfortunately

the only short and medium term solution is to gather learners with unusual potential in magnet schools. Unfortunately the attempt to do this with Dinaledi schools has been a failure up to now.

· Proper training and recruitment of teachers and lecturers. · Sponsor teacher (foundational) training and education (and then try to keep them for teaching!). Establish

technology-centred schools (focus on maths and science). Set up computer labs. · Remuneration must be attractive together with benefits to entice relocation of suitable trainers from the urban

areas. · Develop societal structure to support young people.

Basic needs of students · Stipends offered should be reasonably structured to accommodate transport, food costs. · Sponsor accommodation for bursary learners closer to workplaces

Security · Cannot invest in education to have people then steal the computers. The community must be educated in the importance of IT as an upliftment tool and it should be viewed as treason to steal state property, with the strictest of consequences.

Funding · Universal Service Fund and ISETT SETA should be used to address lack of connectivity and infrastructure. · Sponsored programmes. Offer bursaries or loans and assess strictly for aptitude and ability.

3.2.5 Suggested Isett Seta Assistance

Respondents were requested to provide their insight as to how the Isett Seta could assist potentially-sponsored learners to overcome access, success and progression barriers. Many and varied interesting responses were received, as presented below, several of which would make good topics of debate. Mentorship, for example, is widely recognised as a powerful means of developing employees, but one has to question whether this should fall to the Isett Seta, or whether this should actually be incorporated into the performance agreements of managers.

To Overcome Access Barriers

· Through the creation of a public/private initiative with the relevant stakeholders. · Learners that have the potential to become competent ICT practitioners should be identified in grade 9 and

given the opportunity to successfully take the correct subjects for an ICT career. Opportunities for 1-, 2- and 3-year courses other than university courses should be made available to them.

· Communication skills / technical ability – need to be taught more. Covering letters, grammar, interview techniques and etiquette, including time-keeping.

· Availability of tools. · Lack of secondary education permitting entry level into ICT sector. · If SETA can provide more funding for employers to host learners, it will make it much easier as it is getting

expensive to pay learners’ salaries without them being fully productive.


· By offering bursaries to suitable candidates for a University degree. · It is important that stakeholders are involved in training and recruitment of potential graduates, internships and

experience. · Stipend needs to be reasonably structured to accommodate transport, food costs to make it more attractive for

learners as well as the hosting company. · Determine the correct entry level requirement that fits the job. There must be an entry level standard. · Stricter control of quality of education and training at grass roots level (especially in rural areas). · Establish bridging institutions that provide post-Matric education that can lead to better Matric results, which

could lead to better access to better tertiary institutions. · Establish, support and fund work-based learning institutions (businesses that education and train). · Conduct assessments and offer different levels of learners to the workplace (make recruitment of learners

easier). · Internet provision and accessibility to e-learning online. · By funding an upliftment programme. To Overcome Success Barriers · Through the creation of a public/private initiative with the relevant stakeholders. · Careful selection, continued encouragement and suitable mentoring. · Constant reinforcement. Learners should be placed in the workplace for experiential learning or on Internship

programmes. Seta should approach organisation to accommodate learners. · Communication skills / technical ability – need to be taught more. Understanding that success in a free-market

economy is due to intrinsic ability and motivation and not an entitlement. · Mentorship and coaching of learners from experts within the sponsor company. · SETA could consider sponsoring further training in the workplace where on an alternating method, the

employer is responsible for paying for 1 training intervention / qualification and when the employer proves to ISETT they have paid for one session, SETA could then sponsor the next training session for a further qualification, this should not be restricted to non white employees.

· To be successful you have to have a passion for what you do and most importantly enjoy what you do. Develop this passion in school and career programs.

· ICT companies should identify ICT skills needs and SETA should facilitate the training and experience. · Additional support outside of hosting company. E.g. a mentor at Seta (Objective outsider). · Proper career path and succession planning followed by required training and coaching. · Better prepare learners for the world of work (BEFORE they enter the workplace). · Help manage expectations of entry-level learners. · Business acumen coaching and fast track programs for specialist and managerial roles. To Overcome Progression Barriers

· Through the creation of a public/private initiative with the relevant stakeholders. · The SETA should cooperate with the professional body for ICT practitioners to provide a series of professional

qualifications for the working practitioner. · Active marketing & utilisation of the Seta website (database for learners). Companies must be made aware of

the database of learners with Seta. Constant reinforcement. Learners should be placed in the workplace for experiential learning or on Internship programmes. Seta should approach organisation to accommodate learners.

· Mentoring programmes within the ICT & E sector could be helpful. This should focus both on the personal development through career advice but also incorporate rewarding companies and individuals for studying further with SETA grants and possibly tax incentives for the individual.

· Mentorship and coaching of learners as well as on-the-job training specific to the relevant organisation. · SETA could consider sponsoring further training in the workplace where on an alternating method, the

employer is responsible for paying for 1 training intervention / qualification and when the employer proves to ISETT they have paid for one session, SETA could then sponsor the next training session for a further qualification, this should not be restricted to non white employees.

· Offer continuous coaching programs and provide goal setting aligned with a reward system. · Constant reskilling. · Not only technical skills - train for their transition from students to work environment. Soft Skills training is also

very important in this transition. · Career path planning Mentorship !Mentorship! Mentorship! · Career and development frameworks that span the industry.

3.2.6 Sectoral Economic Scenario

The findings on the most important economic factors, both positive and negative, that are seen to have an influence on ICT employment over the next five years are presented in Appendix 3: Sectoral Economic Scenario on page 79.


3.2.7 Isett Assistance with Equity in Stakeholder Organisations

Respondents were requested to provide input on the challenges they have experienced in attempting to improve equity in their organisations, and how they feel Isett could assist through skills development. This section presents the findings.

Challenges Experienced by Respondents

· Encouraging participation from black professionals. · The lack of suitably qualified candidates. · Persons with disabilities with the required skill sets are not readily available in the market. · Top and senior management and specialist technical roles - the nature of outsourcing where the ICT

outsourcer has to take on staff from the outsourcing client, - which negatively impacts on their equity levels. · Budget cuts influence training spend, hence training linked to succession planning and personal

development is limited. Only key technical skills required by clients are addressed in difficult economic times.

· Economic factors impact on the vacancies available to rectify imbalances. · Retention is a challenge as skilled staff move to find better employment opportunities. · In order to operate profitably internationally it is imperative that skills are top priority. Finding best person

for the job is key. · Women are not attracted to the IT sector as it seems to have a male bias. Sexism not being actively

addressed nationally. Some of our most successful people in the organisation are women, including mathematicians & technicians, but school girls are not attracted to IT, from personal experience of visiting the schools when giving career advice.

· The economically disadvantaged are not brought up with technology and are thus at a disadvantage from the start.

· Lack of qualified specialist skills from PDI candidates. · Equity at senior / management level. · None as only employ previously disadvantaged. · Senior positions are not getting the experience and expertise that is required. · Patronization without embracing the need for the change and understanding how to deal with these

changes. · Skills and experience of young entrants are lacking – they need a LOT of training before they are capable

of production. · Skilled and experienced equity candidates can be excessively expensive. · Limited understanding of the benefits associated with employment equity. · Limited enforcement. · Limited or lack of “equity budget” for HDI candidates that come at higher premiums due to them being

sought after by many other corporate for their skill. · Ineffective application of the 4 criteria in identifying suitably qualified persons by hiring managers. · Limited or lack of succession planning. · Constant movement of staff that has been earmarked for growth, skills competition compounded by

knowledge and sympathy for equity plans.

Suggested Isett Assistance through Skills Development

· Supply suitably qualified candidates. · Promote membership of the professional body for career growth and development of others. · Seta registered Skills Programme for senior management and ICT specialists. · Funding for these programmes - 50-50 model still places pressure on employers in the current economic

environment. · A weighted grant system could apply so that the previously disadvantaged, and women, are awarded more

in grant paybacks. · Learnership to be more focused on specialised, scarce and critical skills within the sector. · Expanding the pool of skilled and competent non white candidates at management level. · Targeted interventions relating to skills development. · All grants are aimed at entry level. Maybe structure something at senior level to breach this gap between

theory and practice. · Education and awareness programmes. Successful case studies. · Provide a database of skilled, knowledgeable candidates (especially females and disabled). · Fund work-based skills programmes. · Liaise closer with professional bodies and improve certification abilities. · Stop working in silo. Collate information from DoL’s EEA2, match against training reports submitted to Isett

SETA and establish whether there is coherence between the two reports.


· Establish database of unemployed graduates based on what corporate have reported as scarce and critical skills in WSP/ATR.

· Continue to incentivise corporate to participate in internships and learnership, particularly the 18.1 learners in the fields which are deemed critical for business.

· Seta would partner with us in a deliberate program to skill our staff locally and internationally to bridge the skills gap and replace expatriates.

3.2.8 Opportunities for New Venture Creation

Respondents were requested to provide suggestions on any New Venture Creation opportunities that Isett could assist with in terms of skills development. The responses received were:

· “Green jobs” initiative to create a “Learnership” and job opportunities in the ICT Sector.

· Partner with the professional organisation (CSSA) to promote Continued Professional Development.

· Work with incubators such as Bandwidth Barn, SmartXchange and JCSE.

· Pay for interview skills clinic. Scholars and grads need to be groomed in how to present themselves. This would be highly beneficial to them and would increase chance of employability so ROI is very positive. Can also be an excellent opportunity to feedback from job seekers point of view.

· Multimedia training in FET Colleges.

· Developing learning programmes for Open Source Software to support the FOSS Policy and the ecosystem. This can be achieved by directly supporting skills programmes at FET colleges as well as supporting the creation of FOSS curricula for both FET Colleges and High schools.

· There is a need to create/support a body in SA to accredit FOSS-related courses.

· Support of current sub-contractors.

· Please provide any ideas you may have on how the Seta could identify, develop and/or implement New Ventures.

· Advertise in papers and on TV and radio - to reach people who do not visit the ISETT website.

· Increase rural presence and development.

· Already identified, multimedia curriculum approved. SETA could assist to develop capacity in FET Colleges.

· Liaise closer with Professional bodies and offer development aligned with their certification criteria.

3.2.9 Code of Conduct for Professional Bodies

The Department of Higher Education and Training requested Setas to assist in reducing corruption. Respondents of professional bodies were questioned on whether they have a formal code of conduct for its members. Two associations and one private company responded,

· ITA. See www.ewasa.org.

· CSSA. Available from: http://www.cssa.org.za/page.php?p_id=177. All members have pledged to respect the code of conduct since 1957. Currently around 600 new members sign up each year. Approval at general meetings.

· Derivco. We belong to eCogra: http://www.ecogra.org/Home.aspx. No evidence of demonstrable support currently but Derivco was one of the founding members.

3.2.10 Isett Assistance to Building Capacity

Respondents were requested to provide suggestions as to how the Seta can assist in expanding the capacity of their organisation. The following responses were received:

· Provide grants for research projects, funding for relevant seminars and workshops.

· The SETA should cooperate to promote the CSSA-endorsed qualifications and its Continued Professional Development programme.

· Software development learnerships could be a focus and could be “rewarded”. Learnerships focus on the Desktop environment currently and more mechanical sectors. Learnerships are a good way for companies to employ.

· Increased rural presence in order to provide skilled resources in outlying areas.


· As per the learner sponsor programme, not only limiting it to those institutions that are providing theoretical training but also financially assisting employers who are trying to provide as many possible learners with workplace experience.

· Through agreed partnership.

· Need more visibility. Funding needs to be improved.

· Funding of entry-level skills development programmes.

· Initiating and funding/co-funding continuous professional development learning opportunities (link with professional bodies e.g. Engineering Council of SA).

· Funding training and development in the customer service and sales learning areas.

· To this extent we expect additional support on high level internships to ensure requisite skills are developed.

3.2.11 Additional Comments and Suggestions

Finally, respondents were requested to provide any additional comments. These are:

· ISETT SETA must be involved in the activities of the e-Skills Council and its Working Group. ISETT SETA must play continuous role in gathering/disseminating data about ICT skills through all SETAs.

· Peripheral areas around the ICT environment such as Information and Knowledge Management need attention.

· Learners entering the organisation do not have the necessary business etiquette or acumen (i.e. Dress code, time keeping, telephone etiquette etc.). If this could be covered as part of a learnership the transition into the workplace would be easier.

3.3 Company Profile The number of companies in the Isett Sector in 2010 was 2,672. A comparison between the number of companies in 2010 against the number in 2009 is presented in Appendix 12: A Comparison between the Number of Companies in 2010 against the Number in 2009.

The following table presents the segmentation based on size of company.

Table 6: Segmentation of the Isett Sector by Company Size, as at 31st March 2010

Company Size Total Number of Companies

Percentage of Companies

Large, 150+ employees 127 4.8% Medium, 50 to 149 employees 256 9.6% Small, 1 to 49 employees 2,289 85.7% Total 2,672 100.0% Source: Isett Seta OGS

3.4 Employment Profile

3.4.1 Number of Employees in the Isett Sector

The number of employees in 2010 was estimated at 143,076. The following table presents the segmentation based on size of company.

Table 7: Segmentation of the Isett Sector by Company Size and Number of Employees, as at 31st March 2010

Company Size Total Number of

Employees Percentage of

Employees Large, 150+ employees 96,015 67.1% Medium, 50 to 149 employees 17,719 12.4% Small, 1 to 49 employees 29,342 20.5% Total 143,076 100.0% Source: Isett Seta OGS

Together, the large and medium size companies account for 79.5% of the employees employed in this sector.

The growth in employment in the Isett Sector is presented in the following table.


Table 8: Growth of Employees in the Isett Sector, 2004 to 2010

Company Size 2004

2004-2005

Growth 2005

2005-2006

Growth 2006

2006-2007

Growth 2007

2007-2008

Growth 2008

2008-2009

Growth 2009

2009-2010

Growth 2010 Large 86,828 -5.3% 82,234 5.4% 86,661 0.9% 87,465 -0.5% 87,000 6.9% 92,967 3.3% 96,015 Medium 16,440 9.4% 17,982 2.6% 18,446 9.8% 20,257 1.3% 20,513 -10.9% 18,270 -3.0% 17,719 Small 39,344 -15.6% 33,193 -6.4% 31,062 5.3% 32,710 12.1% 36,672 -16.3% 30,692 -4.4% 29,342 Total 142,612 -6.5% 133,409 2.1% 136,169 3.1% 140,432 2.7% 144,185 -1.6% 141,929 0.8% 143,076


The table shows that in 2008/09 the Sector experienced its first decline in employment in four years, but made a small recovery in 2009/10.

3.4.2 Race, Gender and Disability Segmentation of Employees in the Sector

The following figure presents the race distribution of employees in the Isett Sector.

Figure 4: Race Distribution of Employees, 2009

African, 44,801, 32%

Coloured, 17,702, 12%Indian, 14,448, 10%

White, 64,978, 46%

Total Number of Employees: 141,929


In terms of race equity, the DoL is striving for a target of 85% black (African, Coloured and Indian).

The following table presents an estimate of the number of large, medium and small companies that fall within various equity brackets.

The following figure presents the gender distribution of employees in the Isett Sector.

Figure 5: Gender Distribution of Employees, 2009

Male, 91,698, 65%

Female, 50,231, 35%



In terms of gender equity, the DoL is striving for a target of 54% of employees to be female. The following table presents an estimate of the number of large, medium and small companies that fall within various equity brackets.

The following figure presents the people with disability distribution of employees in the Isett Sector.


Figure 6: People with Disability Distribution of Employees, 2009

With Disability, 675, 0.5%

Without Disability, 141,254, 99.5%



In terms of disability equity, the DoL is striving for a target of 4% people with disability to be employed within the country. The following table presents an estimate of the number of large, medium and small companies that fall within various equity brackets.

3.4.3 OFO Major Group Segmentation of Employees in the Sector

The following figure presents the Major Group number of employees in the Isett Sector, segmented by gender.

Figure 7: Major Group by Gender, 2009

1,9721,975

2,100396

4,3294,713

9,30418,419

14458

25,9686,121

32,49112,866

15,4775,597

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

Number of Personnel

1 Managers

2 Professionals

3 Technicians and TradesWorkers

4 Community and PersonalService Workers

5 Clerical and AdministrativeWorkers

6 Sales Workers

7 Machinery Operators andDrivers

8 Elementary Workers

MaleFemale


Males are dominant in the managerial, professional, technician and trades worker, and machinery operator and driver categories.

The following figure presents the Major Group number of employees in the Isett Sector, segmented by race.


Figure 8: Major Group by Race, 2009

0 5,000 10,000 15,000 20,000 25,000 30,000

Number of Personnel

1 Managers

2 Professionals




6 Sales Workers



African

Coloured

Indian

White


Whites are dominant in the managerial and professional categories.

The following figure presents the Major Group number of employees in the Isett Sector, segmented by age.

Figure 9: Major Group by Age, 2009

0 5000 10000 15000 20000 25000

Number of Personnel

1 Managers

2 Professionals




6 Sales Workers



Under 35

35 To 55

Over 55


The following table reflects employees in the Isett Sector, by race, gender, disability status and occupational category.

3.4.4 Isett Seta Sub-Sectors

The Isett Seta is responsible for Skills Development in the following three sub-sectors:

1. Information Systems (IT)

2. Telecommunication Technologies

3. Electronics


The distribution of employees, by sub-sector, is illustrated in the figure below.

Figure 10: Distribution of Employees within Companies by Isett Seta Sub-Sector, 2009

Electronics, 21,196, 15%

IT, 75,284, 53%

Telecoms, 45,449, 32%



The IT Sub-sector is the largest sub-sector within the Isett Sector, accounting for just over half of the number of employees, followed by the Telecommunications Sub-sector which accounts for about one-third of the number of employees.

3.4.5 Provincial Distribution of Employees and Sites

The following figure presents the provincial distribution of employees. These figures provide an indication of how Isett Sector employees and company sites are distributed around the country.

Figure 11: Provincial Distribution of Employees, 2009

Gauteng, 94,832, 67%

Western Cape, 23,430, 17%

Eastern Cape, 4,458, 3%

KwaZulu-Natal, 11,616, 8%

Northern Cape, 639, 0% Mpumalanga, 1,988,

1%Limpopo, 1,155, 1%

North West, 1,380, 1%Free State, 2,431, 2%



In terms of the number of employees, about two-thirds of the employees are employed within Gauteng, followed by the Western Cape at 17%, KwaZulu-Natal at 8% and the Eastern Cape at 3%. The Isett Seta has offices in all four of these provinces.

The stakeholders that submit ATR and WSP data comprise primarily of head offices of companies, with some franchises submitting their own data. It is important for Isett to note this because in many instances this impacts training programmes conducted through partnerships between Isett and companies, vis-à-vis the distribution of the employees around the provinces. Training programme agreements are usually signed with head offices, and while it may appear that these learners are therefore based in the province in which the head office resides, in some instances these learners wind up being placed in the provinces.


The following figure presents the national distribution of the head offices, and is followed by a figure that presents the distribution of the number of sites (head offices and branches) around the country.

Figure 12: Provincial Distribution, Number of Head Offices, 2009

Gauteng, 1,292, 53%

Western Cape, 530, 22%

Limpopo, 34, 1%

KwaZulu-Natal, 252, 10%

Mpumalanga, 32, 1%

North West, 63, 3%Free State, 62, 3%Northern Cape, 39, 2%

Eastern Cape, 124, 5%

Total Number of Head Offices: 2,428


Figure 13: Provincial Distribution, Number of Sites (Head Offices plus Branches), 2009

Gauteng, 1681, 50%

Western Cape, 713, 21%

KwaZulu-Natal, 382, 11%

Mpumalanga, 78, 2%

Limpopo, 52, 2%

North West, 100, 3%Free State, 115, 3%Northern Cape, 59,

2%

Eastern Cape, 209, 6%

Total Number of Sites: 3,389


Comparison of these two figures shows that there is slightly greater presence in the provinces than implied by the distribution of head offices alone.

3.5 Drivers of Change 3.5.1 The Human Resource Development Strategy of South Africa (HRDSSA)

As stated in the HRDSSA7, “Thus, human resources development (HRD) is critically important in South Africa’s development agenda. The importance of HRD demands a response that has a sense of urgency.”

The Isett Seta has, as suggested in the “Framework for the National Skills Development Strategy, 2011/12 – 2015/16, First Draft for Consultation, 29th April 2010”, reviewed the HRDSSA with a view to assess what

7 Human Resource Development Strategy of South Africa (HRDSSA) 2010 – 2030, as approved o 18 March 2009.


contribution it can make over the next five years to the HRDSSA. This review is presented in Appendix 4: Synopsis of the HRDSSA II MTSF.

3.5.2 The SA Government’s Medium Term Strategic Framework (MTSF)

The Isett Seta has, as suggested in the “Framework for the National Skills Development Strategy, 2011/12 – 2015/16, First Draft for Consultation, 29th April 2010”, reviewed the MTSF8 with a view to assess what contribution it can make over the next five years to the MTSF. This review is presented in Appendix 5: MEDIUM TERM STRATEGIC FRAMEWORK.

3.5.3 The Industrial Policy Action Plan (IPAP)

The Isett Seta has, as suggested in the “Framework for the National Skills Development Strategy, 2011/12 – 2015/16, First Draft for Consultation, 29th April 2010”, reviewed the IPAP with a view to assess what contribution it can make over the next five years to the IPAP9. This review is presented in Appendix 6: Synopsis of potential Isett contribution to the Industrial Policy Action Plan (IPAP.

3.5.4 The Integrated Sustainable Rural Development Strategy (ISRDS)

The Isett Seta has, as suggested in the “Framework for the National Skills Development Strategy, 2011/12 – 2015/16, First Draft for Consultation, 29th April 2010”, reviewed the ISRDS with a view to assess what contribution it can make over the next five years to the ISRDS10. This review is presented in Appendix 7: Synopsis of potential Isett contribution to the Integrated Sustainable Rural Development Strategy (ISRDS).

3.5.5 National Industrial Policy Framework (NIPF)

The Isett Seta has, as suggested in the “Framework for the National Skills Development Strategy, 2011/12 – 2015/16, First Draft for Consultation, 29th April 2010”, reviewed the NIPF with a view to assess what contribution it can make over the next five years to the NIPF11. This review is presented in Appendix 8: National Industrial Policy Framework (NIPF).

3.5.6 ICT Charter

Introduction

The latest version of the Draft ICT Charter, available at www.ictcharter.org.za, is entitled “Draft Economic Empowerment Charter for the ICT Sector”, May 2005, comprises eleven chapters, three of which address skills development and equity. These chapters are:

· Chapter 7, Skills Development · Chapter 8, Employment Equity · Chapter 9, Management and Control

The Draft ICT Charter addresses the ten-year period 2006 to 2015.

Aims/Objectives

Ø To support the objectives of the BBBEE Act and to promote its effective implementation in the ICT Sector; Ø Bridge the “digital divide” by actively promoting access to ICTs; stimulate and support growth in the ICT

Sector; Ø Advance economic and social transformation in the ICT Sector; Ø Contribute towards the reduction of unemployment and poverty alleviation; Ø Support skills development and training initiatives; Ø Foster equity and address the legitimate economic aspiration of all South Africans; and Ø Provide an enabling environment conducive to transparency, fairness, and consistency when adjudicating

on matters related to BEE in the ICT Sector.

Implications

· Increased involvement of PDIs in the ICT Sector. · Opportunities for stake holding by PDIs in established businesses. · Improved access to ICT and thus stimulation in growth.

Isett Assessment

8 Medium Term Strategic Framework, (2004-2014) Minister in the Office of the Presidency: Planning, July 2009. 9 Industrial Policy Action Plan (IPAP), the dti, August 2007. 10 Integrated Sustainable Rural Development Strategy (ISRDS), November 2000. 11 National Industrial Policy Framework (NIPF), the dti.


In the following discussion of the three chapters mentioned above, the text in bold italics depicts the text as stated in the Draft ICT Charter, followed by normal text which presents Isett’s comments.

Chapter 7, Skills Development states that:

· “Companies should develop mentoring programmes that target black employees especially black designated groups in identified positions for succession planning”. Isett has no data to assess whether companies have in fact developed mentoring programmes, or, if so, how many companies have done so. Furthermore, Isett implemented the OFO, as part of the ATR/WSP data input, for the first time in 2007/8. The OFO occupation categorisation is a little different to the previous South African Standard Classification of Occupations (SASCO) categorisation that was utilised.

· “ICT career awareness programmes should be implemented at primary and secondary school levels and such programmes should promote career opportunities in mathematics and science”. The only project that Isett is aware of in this regard relates to the ICT Technology Bus which toured primarily rural areas to generate an interest in ICTs amongst the youth. The sponsors of this bus were the Isett Seta, the Computer Society of South Africa and Vodacom.

· “Funding should be set aside by the ISETT and MAPPP SETA for high-level training; the funding could be used in order to encourage various training organisations to provide ICT training”. Funding has been set aside by Isett for entry, intermediate and high level skills. Isett works with employers and training providers in this regard.

· “In line with the work of the Setas, companies should take Learners on for experiential training in the sector”. Isett is very involved with companies through learnerships and internships.

· “The Charter Council should devise methods of providing rewards to companies that provide post learnership permanent employment”. Isett would consider any reward system that provides rewards to companies that provide post learnership permanent employment.

The signatories to this charter have undertaken to:

· “Commit 2% of payroll in addition to the current skills development levy for investment in skills development of black people, black women, black youth and black people with disabilities”. An assessment of this is presented in Chapter 2.

· “Provide learnerships equivalent to 5% of employees”. The Isett Sector conducted about 9,500 learnerships by April 2009, representing an average of about 2,375 per year over the period 2005 to 2009. The signatories to the Draft ICT Charter committed to 5% of employees (approximately 7,200) completing learnerships over the ten-year period 2006 to 2015. This implies an average of about 720 per year, which is a significantly lower requirement than the average of 2,375 presented above..

Chapter 8, Employment Equity, states that:

· “The ICT Sector is committed to the principles of employment equity as enunciated in the Employment Equity Act and is therefore committed to ensuring that BEE accredited companies comply with the requirements of the Employment Equity (EE) Act”. In 2009, the percentage of black personnel in the Isett Sector was determined to be 54%. This is short of the national target of 85% black (African, Coloured and Indian). With regard to gender, the Isett Sector was determined to comprise 35% females in 2009, compared to a national target of 54%. Compared to a national target of 4% people with disability to be employed within the country, the Isett Sector was estimated to comprise only about 0.5% people with disability in 2009.

· “The companies in the sector agree to develop clear job descriptions and set performance criteria to ensure that people are not placed in positions, which give a false impression of their positions, and to prevent window dressing”. Isett does not currently request this data from its stakeholders.

· “In supporting employment equity, companies will prioritise strategic positions or jobs within their organisations for black candidates”. Isett does not currently request this data from its stakeholders.

· “Companies will incorporate diversity management and gender sensitivity programmes in their induction programmes in order to address cultural and other differences in their organisations, which programmes should also include transformation initiatives”. Isett does not currently request this data from its stakeholders.

· “Encourage enterprises that are exempt from compliance with the Employment Equity Act, to submit employment equity data on a voluntary basis in order to assist with the assessment of sector statistics”. Isett does not currently request this data from its stakeholders.



· “Comply fully with the Employment Equity Act as certified by the Department of Labour”;

· “Achieve a target of 50% black people in senior management positions with 30% black women as a % of the former”. In 2009, it was estimated that 25.3% (1,684) of all managers (6,650) are black, up from the 21.6% of 2008 but still a long way from the target of 50%.

· “Achieve a target of 65% of black people in other management positions with black women being 30% of the former”. In 2009, it was estimated that 34.4% (4,957) of all managers (14,425) are black, also a long way from the target of 65%.

Chapter 9, Management and Control, states that:

· “The ICT Sector is committed to increased management and control of enterprises by black people”. An assessment of management is presented above. With regard to management control, Isett does not currently request this data from its stakeholders.

· “The sector is committed to the development of black management development programmes that are widely available, affordable and easily accessible to ensure that there is a larger pool of black managers to draw from”. Isett is unaware of any black management development programmes that specifically target black managers, and does not currently request this data from its stakeholders.

· “Succession planning policies should be included in an enterprises’ employment equity plans and reports”. Isett does not currently request this data from its stakeholders.

· “Each enterprise in the sector shall ensure that it has representative management and control as provided for in this Charter”. Isett does not currently request this data from its stakeholders.

· “Companies shall strive to increase the number of black people, including black women, black youth and people with disabilities in executive management and board positions in the ICT Sector”.


· “Commit to a target of 60% black people in the governing body with black women comprising 50% of the former”. Isett does not currently request this data from its stakeholders.

Comment

After an eight year process of developing ICT Charter, as reported by IT Web12, finalisation of the document still seems to be in disarray. The dti recently indicated that the charter would be gazetted at the end of April, but this has not happened as yet. According to the Director for BEE partnerships at the DTI, Thabo Masombuka, the IT industries are still struggling to reach consensus, and that gazetting has not happened as some of the outstanding key and fundamental issues relating to concerns raised by certain constituencies have not yet been resolved.

Reported later in May 2010 by IT Web, an ICT Charter Steering Committee Member, Andile Tlhoaéle, indicated that, despite the industry's commitment to proactively embrace BEE, as well as government's transformation agenda, its sector charter has yet to be approved for gazetting by the Department of Trade and Industry (DTI). However, objections from the Electronics Industry Federation (EIF) included claims that the targets were unrealistic, uneconomical, and that no draft consultation was done. The body also insisted that an economic impact analysis be conducted. Tlhoaéle however states that these objections have been resolved and the steering committee had reached consensus on the document. He said the industry faced many disagreements regarding the charter and, while not every party was happy, consensus was reached on key issues.

The DTI responded, saying that the April deadline has not been realised, as it is in the process of ensuring the ICT charter is in full alignment with government's BEE framework - a reason the department has been giving for the past five years.

Motse Mfuleni, secretary general of the Black IT Forum (BITF), feels that the charter will not be resolved until industry acts like it is a priority. Mfuleni attributes the failure of the past seven years in part to the lack of a leader in this space. He maintains the BITF should have provided that leadership. He says the organisation has drafted a new constitution and has listed the charter as one of its top priorities. He says the black ICT industry and emerging enterprises are preparing to get more assertive with government, encouraging the industry to take a leap of faith as the industry only stands to gain.

12 “ICT charter again reaches final stages”, IT Web, www.itweb.co.za, 29 March 2010.


At present, it appears that the dti’s BBBEE Codes of Practice will have a greater influence over change than the ICT Charter.

3.5.7 Accelerated and Shared Growth Initiative for South Africa (AsgiSA)

The following has been extracted from the “Accelerated and Shared Growth Initiative for South Africa (AsgiSA), A Summary”13. As will be observed from these extracts, this initiative will have a major impact on the demand for ICT skills in the country.

The South African Government was mandated in 2004 to halve poverty and unemployment by 2014, an objective that is achievable based on the following observations at that time:

Targets of Accelerated and Shared Growth

Government’s investigations, supported by some independent research, indicated that the growth rate needed to achieve these social objectives is around 5% on average between 2004 and 2014. Realistically assessing the capabilities of the economy and the international environment, AsgiSA set a two-phase target. In the first phase, between 2005 and 2009, South Africa is seeking an annual growth rate that averages 4.5% or higher. In the second phase, between 2010 and 2014, South Africa is seeking an average growth rate of at least 6% of gross domestic product (GDP).

Infrastructure Investment

Government has already begun to ramp up public-sector investment. At one point public sector investment fell below 4% of GDP. In recent years, it rose above 6%.

Electronic communications as a key commercial and social infrastructure will be one focus of priority attention.

Education and Skills Development

Government recognises that for both the public infrastructure and the private investment programmes to succeed, the single greatest impediment is shortage of skills – including professional skills such as engineers and scientists; managers such as financial, personnel and project managers; and skilled technical employees such as artisans and IT technicians. The AsgiSA responses range from medium-term educational interventions to raise the level of skills in areas needed by the economy to immediate measures to acquire the skills needed for the implementation of AsgiSA projects.

Comment

The Department of Trade and Industry is not doing well when measured against the five strategic objectives that it set for itself. One seldom hears nowadays of AsgiSA (the Accelerated and Shared Growth Initiative for South Africa), which was its first strategic objective.14

3.5.8 Joint Initiative on Priority Skills Acquisition (JIPSA)

The Joint Initiative on Priority Skills Acquisition (JIPSA) is a committee, launched at the same time as AsgiSA, with the specific task to identify urgent skills needs and quick and effective solutions.

At the launch of JIPSA, Deputy President, Phumsile Mlambo-Ngcuka said they will talk to unemployed students who have studied at universities or colleges; retired experts; and people from other countries who have useful skills for our economy. They can pass their knowledge on to those who need it. As part of JIPSA, trainees are sent to other countries to get special skills. One of JIPSA’s aims is also to find ways of helping unemployed students who have finished their studies, to find jobs.

JIPSA will look at developing scarce skills in the following areas:

· Engineering and planning skills for jobs in transport, communications and energy; · Engineering projects for cities and towns needed by municipalities; · Management and planning skills in education, health and municipalities; · Teacher training for mathematics, science, information and communications technology and

language skills.

Comment

Early in 2006, under the leadership of the Presidency and in particular with the support of leaders in the labour federations, in business and civil society, the Joint Initiative for Priority Skills Acquisition (JIPSA) was formed.

13 “Accelerated and Shared Growth Initiative for South Africa (AsgiSA), A Summary”, issued by the Office of the Presidency, the Republic of South Africa, http://www.info.gov.za/asgisa/. 14 Polity.org.za, “DA: van der Westhuizen: Speech by DA Member of Parliament on Trade and Industry budget vote, National Assembly (04/05/2010)”.


Through its structures such as the joint task team and the technical working group chaired by Cde Gwede Mantashe and later by Cde Bheki Ntshalintshali and with the assistance of funding from the Business Trust and the project management by national business initiative, a process of identifying and clearing blockages began. This initiative, albeit an important one, was a short term response to a systemic requirement for a HRD strategy and structures that work. In 2005, Cabinet requested the then Minister of Education to revise the HRD-SA. The reviewed HRD-SA will play a coordination and integration role and will initiate activities and resolve blockages in the system which cannot be solved by sub-systems working in isolation. At this point we would thus like to express our appreciation to all who contributed to the JIPSA. We will continue taking forward the empirical work and studies undertaken by JIPSA but not yet implemented. As the Department of Higher Education and Training we have honoured our commitment to absorb staff members of the JIPSA secretariat who wished to join us.15

3.5.9 The South African e-Skills Council

The South African e-Skills Council is a partnership between government, the private sector, educators and other established government institutions that provide strategic advice on ICT-related skills issues. The e-Skills Council is to provide advice on programmes and services that can have a measurable impact on ICT related skills development in the South Africa. Additionally, the e-Skills Council will ensure that there is a coordinated plan to enhance government’s vision of addressing skills shortage that is a major constrain to the country’s economic growth.

To achieve the above outlined purpose, e-Skills Council has to:

· Give effect to the vision as set out by President Mbeki. · Inform the strategic direction of plans that address the skills shortage drawing on international

best practices. · Set targets for the ICT Institute in terms of the production of skills for job opportunities and

industry needs. · Provide direction on policy and regulatory impediments to achieving progress on the

acceleration of skills development in South Africa and make recommendations to the Inter-Ministerial Committee on ISAD.

· Advise the President on mechanisms to accelerate the building of a strong skills base in the ICT sector and the retention thereof.

· Explore and recommend means of ensuring that the existing public institutions in South Africa are strengthened to become the quality centre of excellence in respect of ICT skills.

The e-Skills Council will be supported by the e-Skills Working Group. The Working Group is comprised of representatives from South African stakeholders, namely government, ICT sector, academia, researchers and civil society. The Isett Seta is a member of this working group.

The mandate of the e-Skills Working Group is to provide technical support to the work of the e-Skills Council thereby ensuring effective and efficient functioning of the Council. The main objectives of the e-Skills Working Group include, but not limited to:

· Analyse the type of skills that are required by the ICT Industry in South Africa including future skills needs, taking into consideration technology trends, global industry changes and possible emerging markets.

· Develop, market, and continuously review qualifications required to fulfil the various requirement identified in (1) above or their equivalents.

· Identify and approach the funders of the initiative. · Ensure commitment from Industry to provide job opportunities for graduates · Advise on possibilities of incentives for organizations that contribute the e-Skills Council and

Degree, e.g. incorporation of benefits into the Draft ICT Charter. · Provide an analysis of the implications for future industry skill needs of technology trends, global

industry changes, current and future challenges in the domestic economy and possible emerging markets for the South African ICT industry.

· Identify emerging gaps between the skill requirements of industry and current education and training arrangements, and to identify possible mechanisms to enable the ICT skill needs of industry to be more effectively met from within the South African education and training system.

15 Polity.org.za, “SA: Nzimande: Address by the Minister of Higher Education and Training, at the inaugural plenary meeting of the Human Resource Development Council, Pretoria (30/03/2010)”.


3.5.10 The Department of Communications

The Department of Communications in one of Isett’s primary stakeholders. Because this organisation plays a extremely important role within the Isett Sector, the following extracts from the budget vote speech by the Communications Minister, National Assembly, 20/04/201016.

In the previous financial year (2009/2010) we committed to develop and pass policies and legislation aimed at further growing the ICT Sector.

I am pleased to report that Cabinet has approved the Radio Frequency Spectrum Policy. This policy provides for spectrum management, which involves the allocation of frequency according to the country's developmental needs and International standards. It will ensure efficient radio frequency utilization and management of this scarce national resource. In addition, this policy will further contribute to economic growth by promoting new services where required.

We have finalized the Broadband policy whose vision is to ensure that South Africans have universal access and services to broadband by 2019. The benefits accruing from the policy will include the provision of multimedia and e-Government throughout the country. The implementation of the Broadband policy will impact on the growth of the economy through expanding markets, increasing business efficiency and promoting competition.

The Cyber security policy was gazetted in February 2010 for public comment. The policy is being discussed with relevant stakeholders.

We intend in this parliamentary session to introduce legislation aimed at further strengthening our ICT policy framework. We will therefore table the following bills:-

§ ICASA Amendment Bill - aimed at further strengthening the governance framework of the Regulator;

§ Public Service Broadcasting Bill - the bill seeks to align the public broadcasting system to the developmental goals of the country, and to provide an optimum funding model for the public broadcaster.

§ Electronic Communications Amendment Bill - the bill seeks to align Ministerial directives, clear up ambiguity on some definitions and further include the creation of strategic support structures such as the Tariff Advisory Council, among others.

In addition, a policy directive will be issued to ICASA to conclude the unbundling of the local loop.

Sentech is a strategic state entity whose main function is that of the signal carrier for the state. In the past financial year, Sentech continued to maintain terrestrial analogue television and radio transmission at 99.9% beyond customer service levels, which is the technical definition for uninterrupted service provision.

For the 2010/11 financial year, Sentech will continue with the rollout of the DTT infrastructure. Sentech is critical in the provision of digital terrestrial television. Its target is to reach 60% population coverage by the end of the financial year 2010/11.

For the past five years, the cost to communicate and doing business in South Africa has been impeded by exorbitant charges. In my maiden speech in 2009 I signalled my desire to bring down the cost to communicate. Today I am proud to report that South Africa is well on its way to reducing cost to communicate.

In November 2009, I issued a policy directive for ICASA to initiate a process to reduce the mobile termination rate (MTR) down to cost. Simultaneously, I engaged in a process of consultation and discussion with the mobile operators for them to voluntarily begin to reduce the MTR. This then culminated in an agreement for an initial cut of the MTR from R1.25 to 89 cents with effect from 1 March 2010. In line with this, ICASA approved a revised amended Interconnection agreement. Further, I wish to acknowledge and recognise the commitment that the three mobiles operators exhibited by voluntarily introducing much cheaper packages to cater for the needs of the poorest during the December 2009 festive season. ICASA has now released draft regulations aimed at ensuring cost based MTR rates in July 2010 on a gliding scale. Telkom committed to pass-through the savings emanating from the reduction in the MTR back to the consumer and this is already yielding positive benefits to consumers.

The next phase of cost cutting measures should involve the retail market which supplies services directly to consumers.

A stable regulatory regime is necessary for us to address key ICT developmental challenges. ICASA will therefore need to focus critically on the following:

· · regulatory certainty,

· · liberalization,

16 Polity.org.za, “Statement by Siphiwe Nyanda, Minister of Communications, on Information and Communication Technologies (26/04/2010)”.


· · promotion of ICT sector;

· · aligning its structure, leadership and culture with the strategy licensing for new services and

· · Achieving universal service and access.

The department has over the past year reviewed and audited all existing outstanding commitments related to spectrum license obligations. You will recall that in 2004 and 2006, when spectrum licenses were granted to mobile and fixed operators, specific universal service obligations were included. My department has recently interacted with MTN, Vodacom, Cell C, Telkom and Neotel to urge them to expedite delivery of on their commitments towards commitments. The department has agreed with the operators to establish a working team to pursue these obligations. ICASA, USAASA, National and Provincial departments will be an integral part of this working group.

The department successfully hosted the national summit on set top box manufacturing, which involved industry players. We will conclude the conformance scheme in the first quarter of this financial year. A draft roll out plan for the Scheme for Ownership of set top boxes for poor television owning household has been developed. The scheme provides poor people with subsidies that allow them to procure the set top box.

In my maiden budget vote speech I committed the Department of Communications to work closely with key stakeholders to make ICT relevant to the people of South Africa. The Department has since developed a Stakeholder Engagement Programme that seeks to institutionalize a structured programme of engagement with key stakeholders. In this regard, the DOC has identified various industry and business associations that are critical to ensuring that it achieves its mandate of creating a favourable ICT environment. We have created an ICT Industry Forum and have since met twice. This initiative has been met with a lot of enthusiasm by the sector, who regards interaction with DoC as key to the advancement of their interest.

Government can use ICT to improve its efficiency and streamline its operations. Therefore the development of a coherent framework for the deployment and utilization of ICT in government is critical. It is urgent that government adopts and uses ICT in order to modernize services, improve administration and efficiency. The roll out of effective ICT services will ensure that government services are available to all South Africans equitably irrespective of where they are in the country.

When addressing rural development, ICT can also contribute to the scientific interpretation of outputs in the agricultural sector, water management, including numeracy and literacy training of communities. We are in discussions with the Department of Rural Development and Land Reform to ensure that we participate in the agrarian reform and food security programme through technology intervention in our sector. This will also contribute to our involvement in growing the second economy.

The Department of Communications' main responsibility is ICT policy initiation and development and to oversee the implementation thereof. My department, unlike other line departments, does not have the physical presence at Provincial and Local government levels to implement programmes. We are dependent on partnerships and collaborative arrangements that involve the private sector, all levels of the public sector and NGOs. The State Owned Enterprises (SOEs) are the primary instruments through which the DoC implements its programmes.

South Africa is an integral part of Africa. At the level of ICT integration of policy and systems we will create an environment that is economically beneficial to all the continents' people. In that spirit we hosted the African Union Communications and Information Technology meeting at Ministerial level. The Oliver Tambo Declaration which was adopted at this meeting calls for: the promotion of integration of African ICT policy and systems, sharing of human resources, harmonization of ICT regulations within the continent and sharing of infrastructure where possible, to address accessibility and the cost to communicate.

This culminated in the Addis Ababa Declaration (2010) adopted by the AU Heads of State and Government attended by our President Jacob Zuma. The Summit re-enforced the principle of the Oliver Tambo Declaration (2009) and took a further decision to develop an African Cyber-framework by 2012.

During this period we will seek to pursue the spirit of the Addis Ababa Declaration and the NEPAD Principles of integration for the Sub Region. Of particular importance for our country in this financial year will be the finalization of the SADC home and away tariff regulations. This is aimed at reducing roaming and cross border communications costs.

In May 2010 South Africa participated in the World Telecommunications Development Conference (WTDC). Our focus with regards to this conference was to enhance the deployment of technologies, advise on financing of the telecommunications and low cost technology options as well as promoting universal access to rural communities.

In October 2010 we will participate in the International Telecommunications Union (ITU) Plenipotentiary in Mexico. We shall strive to ensure that South Africa is globally positioned and that the needs for our developmental agenda are highlighted for the next four years.

Our participation in the ITU is of critical importance. I therefore call upon all ICT role players to actively participate and support the department in all ITU activities.


It is important that we realize that the challenges we face require us to adopt policies that pursue African advancement and enhance international cooperation.

Last year I pronounced that my department will develop an Integrated ICT Policy Framework which will seek to position ICT as a central enabler for effective service delivery to transform the lives of our people. This comprehensive policy framework will be able to move us towards a people-centred and people driven, inclusive and sustainable digital economy. This framework should also support our endeavours for full convergence as we move towards an information society.

Consultation towards developing the comprehensive ICT policy framework has begun at various levels. I will soon be making a preliminary discussion paper available to the public for more compressive deliberations and inputs.

We should recognise the critical importance of ICT as a major user of energy and natural resources and as an enabler for environmental and cultural change. We therefore have to do our best to ensure that technology systems that we use to improve our lives do not have a negative effect on the environment that our children and their offspring will inherit.

We will be embarking on an ICT greening strategy to reduce the environmental impact of our computer and electronic systems.

We have a responsibility to direct the means of delivering access to information and communications with the bias towards the poor and the marginalized section of our society.

Our democratic government has passed legislation and policy frameworks to enable the enhancement and the delivery of online services. The Electronic Communications and Transaction Act, provides for the provision of online services and the creation of an e-Commerce environment that is secure and authentic. This Act supports the provision of online services delivered via the internet.

We will continue to work with our sister Departments and stakeholders to ensure the speedy automation of certain online government services for the benefit of the citizens.

As a government we will continue to implement these policies and encourage strategic investment in ICT backbone infrastructure in provinces and municipalities, especially in rural areas. We will also work closely with the Provincial and Local Government within the co-operative framework espoused through the Intergovernmental Relations Framework Act. In October last year, I hosted the Intergovernmental Relations Forum which was attended by MECs from the nine provinces of our country. The common challenge expressed by most provinces is the unavailability of ICT infrastructure, whilst others indicated that they have began their investments in fibre-optic cable networks.

One of the strategic goals of the department is to accelerate socio-economic development by increasing universal access to ICT services. The Department has implemented various projects in pursuit of the goal of increasing the uptake and usage of Information and communications technologies by government and individuals in partnerships with business, civil society, including labour.

In building of an information society we are guided by the principles of people-centeredness and inclusivity. On the 26 of February 2010, we launched an Information Society Multi-stakeholder Forum which is an Information Society Partnership for Development. This initiative is aimed at bringing together all stakeholders in the implementation of our National e-Strategy, the ISAD Plan, to bridge the digital divide. I was excited to see the ICT industry, civil society and labour coming out in support of this initiative. A number of proposals for collaboration have been received by the Department.

In the previous financial year, the Department developed an ICT Small and Medium Enterprise Strategy which is centred on entrepreneurship principles. The roll-out of this strategy will ensure the establishment of ICT Business Incubation centres in Limpopo, Mpumalanga and the Kwa-Zulu provinces.

The broadcasting digital migration programme provides a unique opportunity for SMME growth in our electronics manufacturing and content generation subsectors. These opportunities should be shared by our most deprived communities so that they too can enjoy the benefits of this digital transition. The key focus must also be on developing and growing our creative industry, which include broadcast content producers as intended beneficiaries.

As we roll out the broadcasting digital program, the Department will run a rigorous digital migration awareness campaign to teach and educate the public about the importance and the benefits of going digital.

The strategic goal of ensuring universal access to services remains an important component of the work of the Department and the Universal Service and Access Agency of South Africa. USAASA has completed the project of definitions for Universal Services and Universal Access which were published in the Government Gazette in February 2010. The definitions set standards for infrastructure roll out in underserviced areas. These definitions mark the cornerstone and progress in facilitating the bridging of the communications and infrastructure gaps that still exists in our country.


The national youth deployment strategy was developed in the first quarter of 2009. It is focused on developing ICT infrastructure and building access centres. The key highlights for the previous financial year included the establishment of 8 new community centres. Sixty eight schools have been provided with 2720 computers. Subsidies for internet connectivity were granted to 18 FET colleges.

In the next financial year the agency intends to establish a baseline project to identify the number and geographical location of underserviced areas. The agency will also built new digital hubs targeting rural provinces.

Another strategic goal of our government is to strengthen the skill and human resource base in the ICT Sector. Our human development is characterised by a lack of employment - ready graduates required by our modern economy especially in the field of ICT.

Following the reconstitution of the e-Skills Council by the department last year, the work of the Council is on track with the National e-Skills Study conducted and a report adopted by the Working Group. The final report is ready for presentation to Cabinet.

The Department is in the process to operationalise the Meraka e-Skills Institute as a measure to bridge this gap. In the previous financial year, Meraka has formed partnerships with 6 international institutions and 12 local Universities and developed a curriculum which will assist universities to produce an ICT skilled cadre ready for the job market.

The National Electronic Media Institute of South Africa (Nemisa) was established to provide education and training in production and technical skills relevant to TV and radio broadcast industries. Over the next financial year Nemisa will develop capacity to deliver high quality educational services and train 870 learners.

In pursuance of better health and education for all South Africans, our department is cooperating with the departments of Health and Basic Education for the development of a connectivity plan the implementation of which will occur in the course of this financial year.

Once more I would like to call upon operators to work together with the Department and ICASA to implement the e-rate dispensation for connectivity to schools in terms of the Electronic Communications Act. It will be important to note that we will need to consult with our affected sister departments, for example Department of Health, Department of Basic Education, Department of Corporative Governance and Traditional Affairs about the latter.

The year 2010 marks the mid-term of the World Summit on Information Society. In May this year, South Africa will join member countries of the United Nations participating in the global assessment of the progress made in the implementation of the Summit outcomes since their adoption in 2005.

3.5.11 Other Legislation

The following legislation also impacts on the Isett Sector:

· Telecommunications Amendment Bill, No. 65 of 2001 · Interception and Monitoring Prohibition Act, No.127 of 1992 · Interception and Monitoring Prohibition Amendment Act, No.77 of 1995 · Employment Equity Act, No. 55 of 1998 · Broad-Based Black Economic Empowerment Act, No. 53 of 2003. · Convergence Bill (2005) · ICASA Amendment Bill · Public Service Broadcasting Bill Electronic Communications Amendment Bill · New Seta Landscape · Electronic Communications and Transaction Act

The State Information Technology Agency (SITA) is tasked with ICT policy formulation and implementation. The responsibility for all government IT procurement has been given to the Information Technology Acquisition Centre (ITAC) since 01 of April 2002. This is an attempt by government to ensure that a certain percentage of the Rand value of all government IT contracts is awarded to BEE companies. The purpose of this strategy is to appoint vendors that supply government ICT services and products, thereby addressing the growth of BEE in South Africa.17

3.6 Conclusion and Recommendations Having reviewed the growth prospects of the Isett Sector, the inputs from Isett stakeholders, the relevant frameworks, strategies and plans, and other sector relevant information, and therefore obtained a strong perspective of the Isett sector, the following sub-sections present a summary on the way forward towards the 5-year Isett SSP.

17 ICT in Government, Forge Ahead BMI-T and the Department of Communications, Vol. 1 Issue 1, October 2002


3.6.1 Forecast for the Isett Sector

The Isett Seta will base its 5-year SSP forecasts using the following projections:

Table 9: 5-Year Forecasts the Isett Sector

Forecast 2011 - 2016

CAGR

2009 (Actual)

2010 2011 2012 2013 2014 2015 2016

Forecast Real Skills Development Levy (Rands x 1,000)

6.0% 314,689 333,570 353,584 374,799 397,287 421,124 446,391 473,174

Forecast CPI (%) 6.2% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% Forecast Skills Development Levy (Current Rands x 1,000)**

351,249 392,057 437,606 488,447 545,195 608,535 679,234

Forecast Employment 1.6% 141,929 143,076 145,308 147,574 149,876 152,214 154,588 156,999 ** This data is 70% of the total skills levy contribution made by companies, and represents the amount of mandatory and discretionary funds that can be placed back into skills development by Isett Seta.

3.6.2 Tactics that can be employed by Isett in the Formulation of the 5-year SSP

With a view on equity requirements, the Isett Seta will utilise the following tactics in the formulation of its 5-year SSP and the delivery of skills to the Isett Sector.

FETs, HETs

· Inform FET and HET institutions and learners of skills demands via Career Guide.

· Encourage FETs to conduct the new venture creation programme

· Isett Seta to forge partnerships with HETs, including partnering with learnerships.

· Learning Programmes, influenced by the top 17 scarce skills, with unemployed College, University and University of Technology drop-outs, and with at least 70% employment in the Isett Sector (Pivotal).

· Partner FETs with ISOEs.

· Partner with DBE and DHET for train-the-trainer learning programmes.

· Partner with and support FETs and HETs with regards to internships and learnerships.

· Partner with and support HETs and employers to sponsor Masters and Doctorate learners through bursaries.

· Support to FET and HET institutions through Train-the-Trainer.

· The Isett Seta will encourage larger numbers of graduates with tertiary ICT skills through partnering with industry and the awarding of conditional bursaries.

· The Isett Seta will partner with DHET’s Foundation Programme in the way of Pivotal programmes to assist potential tertiary institution entrants who require additional assistance with maths and science.

· The Isett Seta will promote learning programmes (including New Venture Creation) to FETs and rural educational institutions, which will have the long-term effect of making our population more ICT literate, providing them with better access to the world of the Internet and to job and new venture opportunities.

· Through Pivotal programmes, Isett will assist in forging closer links between tertiary educational institutions and industry.

· Train installers and maintainers.

Industry

· Address the top 17 scarce skills as indicated by the Isett Sector.

· Encourage stakeholders to continue with skills development utilising the discretionary funds.

· Identify Isett stakeholders that are involved in developments against ICT related crime and sponsor ICT security learning programmes.

· Isett will insist on AIDS awareness being included in its Learnerships and Internships.

· Learning Programmes for the employed and unemployed as indicated by Scarce and Critical Skills inputs from company stakeholders.

· Learning Programmes in the Electronics Sector. Pivotal and non-Pivotal.


· Obtain Telkom’s rural telecommunications development plan and sponsor rural End User Computing/Call Centre Learnership and telecommunications learnerships through Telkom on the basis the rural telecommunications infrastructure be provided/improved by Telkom. This type of partnership could also be formed with Neotel and the cellular operators.

· Sponsor learning programmes including End-User Certificate/Call Centre learnership

· Support SMEs through learning programmes and new venture creation.

· The Isett Seta will identify companies with R&D capability within the Isett Sector and assist with skills development in those companies to boost this capability.

· The Isett Seta will identify export companies within the Isett Sector and assist with skills development in those companies to boost exports.

Rural

· Support to rural FET and HET institution learners via sponsorship of EUC learning programmes (will assist to develop the ICT Sector resulting in job creation (hard to measure)).

· Communicate with provincial governments and skills development fora.

· Conduct learning programmes in rural communities.

· Set up co-ops.

· Sponsor learners on the End User Computing/Call Centre Learnership, particularly in rural areas.

· The Isett Seta will promote learning programmes (including New Venture Creation) on a national basis to FETs and rural educational institutions, which will have the long-term effect of making our population more ICT literate, providing them with better access to the world of the Internet and to job and new venture opportunities.

· Work with local community, NGOs, skills development fora and training institutions, provincial government and municipalities.

Isett Seta

· The Isett Seta will partner with the National Youth Service.

· Maintain a strong Seta Management System.

Cross-Sectoral

· Attempt to assist potential retrenchees in the traditional sectors with ABET and End User Computing training to improve their prospects of re-employment in other sectors, utilising NSF funding. Challenges will involve an interim living allowance and poor English skills. This will require cross-sectoral partnering with Agriseta and MQA.

ISOEs

· Encourage development of more ISOEs.

· Isett Seta will partner with the CSIR, universities and ISOEs.

· Partner FETs with ISOEs.

· Work with incubators such as Bandwidth Barn, SmartXchange and JCSE.

New Ventures

· Sponsor 3- to 5-year new ventures and incubators/ISOEs.

· The Isett Seta will look at the possibility of encouraging people to enter new ventures with a view on lower-energy technologies and green jobs, for example training of installers of solar powered equipment.

QCTO/ETQA

· Assist QCTO with learnership/qualification development.

· Develop End User Computing/Call Centre Qualification and Learnership.

Government



· Partner with government institutions and PSETA to sponsor End-User Computing and ICT learning programmes.

4 Supply of and Demand for ICT Skills

4.1 Introduction Data sources utilised:

1. Matric data from Annual Reports of the Department of Education, www.education.gov.za, 2004 to 2008. 2009 to 2016 estimated.

2. HEMIS data from the Department of Higher Education and Training, 2004 to 2009. 2010 to 2016 estimated.

Caveats in estimations:

1. Discontinuity in Department of Education between 2003 and 2004 probably due to merging of Technikons and Universities. Discontinuity smoothed by averaging.

2. At tertiary level, electronics and electrical engineers are classified together. An estimate of 25% for electronics engineers in this group was used.

4.2 Supply of ICT Skills The following figure presents the historic (2004 to 2009) and forecast (2010 to 2016) percentage of learners/graduates from Matric through to graduating from University or a University of Technology.

Figure 14: Percentage of learners/graduates from Matric through to graduating in ICT, 2001 to 2016

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Pass Matric

Matric pass,qualify for Tertiarytechnical studies

Qualify forTertiary technstudies, chooseTertiary ICTstudies

Choose TertiaryICT technstudies, enrol at Uof Tech

Enrol in TertiaryICT technicalstudies at U ofTech & graduate

Choose TertiaryICT technicalstudies, enrol atUniv

Enrol at TertiaryICT technicalstudies at Univand graduate

Forecast

Source: Dept of Education Annual Reports, 2004-2008 Dept of Higher Education and Training, HEMIS data, 2004-2009

From the figure above, the following points can be observed:

· From 2004 to 2008, there has been a slow but steady decline in the percentage of learners passing Matric, despite an increasing number of learners writing Matric. This trend is expected to continue out to 2016, and is likely to be further exacerbated by the recent teacher strikes.


· Of the number of learners that graduate from Matric, the percentage that qualify for technical studies (Engineering, Software Development, etc) at tertiary institutions has been steadily increasing over the past several years, and this trend is seen to continue out to 2016.

· Of the number of learners that qualify for technical studies (Engineering, Software Development, etc) at tertiary institutions, the percentage that opt for ICT studies at tertiary institutions is not only a small percentage (less than 8%), but this percentage is seen to be slowly decreasing out to 2016.

· Over the past several years, of those learners opting for ICT studies, there has been a steadily increasing number of them enrolling Universities of Technology, while the percentage enrolling into Universities has been steadily declining. This trend is seen to continue to 2016.

· Despite the steadily increasing number of learners enrolling Universities of Technology, of the numbers that have been enrolling, there have been a steadily declining percentage of them that have been graduating.

· In the past several years, the trend in the percentage of University graduates, versus enrolments, has been somewhat erratic, but over the forecast period, this percentage is seen to be declining.

The following table provides the data set used to generate the figure above. The 2006 and 2013 data is also utilised to present the following two figures, which show the flow of learners through the education system from writing of Matric to ICT learners graduating from a University of Technology or University.

Table 10: Supply of Learners/Graduates, 2004 – 2016

Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Write Matric n 467,890 508,181527,950 564,381 554,664 593,538616,512 639,487 662,462 685,437708,412Pass Matric n 330,717 347,184351,503 368,217 339,317 358,857362,681 366,504 370,327 374,151377,974Qualify for Tertiary technical n 116,711 125,776152,391 166,669 173,779 182,650191,521 200,392 209,263 218,134227,005Tertiary ICT enrol at UoT n+1 5,393 5,158 5,734 6,836 6,504 7,055 7,428 7,801 8,174 8,547 8,920Tertiary ICT enrol at Univ n+1 2,705 2,490 2,649 2,467 3,104 2,728 2,726 2,723 2,720 2,718 2,715Tertiary ICT enrol at UoT & graduate n+2 2,013 2,281 2,466 2,275 2,347 2,377 2,408 2,439 2,470 2,500 2,531Tertiary ICT enrol at UoT & drop out n 11,397 13,350 11,967 12,891 14,094 14,150 14,852 15,402 15,951 16,501 17,051Tertiary ICT enrol at Univ & graduate n+3/4 1,933 2,046 2,026 1,934 1,872 1,809 1,746 1,684 1,621 1,558 1,495Tertiary ICT enrol at Univ & drop out n 9,240 9,644 8,530 7,512 7,349 8,130 6,920 6,490 6,061 5,631 5,202Pass Matric n 70.7% 68.3% 66.6% 65.2% 61.2% 60.5% 58.8% 57.3% 55.9% 54.6% 53.4%Matric pass, qualify for Tertiary technical studies

n 35.3% 36.2% 43.4% 45.3% 51.2% 50.9% 52.8% 54.7% 56.5% 58.3% 60.1%


Comparing the two figures below, the following points can be noted:

· From 2006 to 2013, the number of learners writing Matric is seen to increase by about 30%, while the number of learners opting to follow a career in ICT will increase by about 35%, showing a greater interest in ICT.

· Nevertheless, the number of learners graduating in ICT qualifications from Universities of Technology is seen to remain static, while, of concern, the number graduating from Universities is seen to decline by about 23% over this period.


Figure 15: Learners/graduates from Matric through to graduating in ICT, 2006-2010/11



Figure 16: Learners/graduates from Matric through to graduating in ICT, 2013-2017/18


The following figure shows the number of ICT graduates, by type of qualification, for 2004 and 2009. Over this period, there have been declining numbers of graduates for the following qualifications:

· Applications in Computer Science and Data Processing

· Computer Operations and Operations Control

· Information and Data Base Systems

· Programming Systems

· Other Computer Science and Data Processing

· Computer Engineering and Technology


Figure 17: Percentage of ICT Graduates and All Graduates, Diploma and Degree, by Race, 2004-2009

623

472

128

1,680

410

183

449

140

419

88

378

419

263

1,272

543

112

242

74

579

43

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

0601 Applications in Computer Sc. & Data Proc

0602 Computer Ops. and Operations Control

0603 Computer Hardware Systems

0605 Information and Data Base Systems

0607 Programming Languages

0608 Programming Systems

0699 Other Computer Sc. and Data Proc.

0807 Computer Engineering and Technology

0808 Electrical Engineering and Technology

Other

20042009

The following table shows the supply of ICT graduates, by type of qualification, for 2004 and 2009. Note that about 700 fewer learners graduated in 2009 as compared to 2004. Learners graduating in Information and Data Base Systems represent about one-third of all graduates.

Table 11: Supply of Tertiary Graduates, by Type of Qualification, 2004 and 2009

2004 2009

Number of

Graduates % of Total

Number of

Graduates % of Total

0601 Applications in Computer Sc. & Data Proc 623 14% 378 10% 0602 Computer Ops. and Operations Control 472 10% 419 11% 0603 Computer Hardware Systems 128 3% 263 7% 0605 Information and Data Base Systems 1,680 35% 1,272 31% 0607 Programming Languages 410 9% 543 14% 0608 Programming Systems 183 4% 112 3% 0699 Other Computer Sc. and Data Proc. 449 10% 242 6% 0807 Computer Engineering and Technology 140 3% 74 2% 0808 Electrical Engineering and Technology 419 9% 579 15% Other 88 2% 43 1% Total 4,681 100% 3,967 100%

The following figure shows the percentage of African, Coloured, Indian and White learners that graduated from Universities of Technology and Universities over the period 2004 to 2009.


Figure 18: Percentage of ICT Graduates and All Graduates, Diploma and Degree, by Race, 2004-2009

0%

10%

20%

30%

40%

50%

60%

70%

2004 2005 2006 2007 2008 2009

African ICT GraduatesAfrican All GraduatesColoured ICT GraduatesColoured All GraduatesIndian ICT GraduatesIndian All GraduatesWhite ICT GraduatesWhite All Graduates

From this figure, it can be noted that:

· The percentage of African graduates across all disciplines has risen slightly from 60% in 2004 to 64% in 2009. The percentage of African ICT graduates has rise more dramatically from 48% in 2004 to 66% in 2009.

· There have been declining percentages of Coloured, Indian and White ICT graduates over this period.

The following figure shows the percentage of male and female learners that graduated from Universities of Technology and Universities over the period 2004 to 2009. Since 2006, there have been a slowing increasing percentage of female ICT graduates from the formal tertiary educational institutions.

Figure 19: Percentage of ICT Graduates and All Graduates, Diploma and Degree, by Gender, 2004-2009

0%

10%

20%

30%

40%

50%

60%

70%

2004 2005 2006 2007 2008 2009

Female ICT GraduatesFemale All GraduatesMale ICT GraduatesMale All Graduates


4.3 Demand for ICT Skills Each year, the Setas gather data on the scarce skills (current and potential important vacancies) identified in each of the Seta Sectors. This data is published in the Seta Sector Skills Plans. Because ICT skills are also required in several of the other Seta Sectors, Isett performed an analysis of the scarce skills identified by all Setas in order to obtain a perspective of the national need for ICT skills. The result of this analysis is presented in the following table, by Level 5 of the Organising Framework for Occupations (OFO). Note that the data presented is a 3-year estimate of current and potential vacancies.

Table 12: Estimation of ICT Vacancies Required within South Africa, 2009 - 2012

Occupation Isett Other Setas RSA

% Isett to

Total 131102 Sales and Marketing Manager 12 0 12 100.0% 131103 Sales Manager 32 0 32 100.0% 132501 Research and Development Manager 4 0 4 100.0% 133201 Engineering Manager 60 86 146 41.1% 135102 ICT Project Manager 61 56 117 52.1% 149201 Call or Contact Centre Manager 4 4 8 50.0% 149202 Customer Service Manager 14 0 14 100.0% 212405 Technical Writer 2 0 2 100.0% 223201 ICT Trainer 17 0 17 100.0% 223301 Training and Development Professional 4 452 456 0.9% 224701 Management Consultant 3 12 15 20.0% 224702 Organisation and Methods Analyst 4 10 14 28.6% 225201 ICT Account Manager 17 0 17 100.0% 225202 ICT Business Development Manager 15 1 16 93.8% 225203 ICT Sales Representative 49 0 49 100.0% 225401 Sales Representative / Salesman (Industrial Products) 16 0 16 100.0% 233301 Electrical Engineer 10 261 271 3.7% 233302 Electrical Engineering Technologist 1 52 53 1.9% 233401 Electronics Engineer 81 69 150 54.0% 233402 Electronics and Telecommunications Engineering Technologist 36 6 42 85.7% 233501 Industrial Engineer 6 734 740 0.8% 233504 Industrial Engineering Technologist 1 2 3 33.3% 241407 Computer Applications Technology Teacher (Grades 10 - 12) 0 110 110 0.0% 241418 Information Technology Teacher (Grades 10 - 12) 0 74 74 0.0% 261101 ICT Business Analyst 168 131 299 56.2% 261102 Systems Analyst 97 265 362 26.8% 261202 Web Developer 11 40 51 21.6% 261301 Analyst Programmer 31 21 52 59.6% 261302 Developer Programmer 207 184 391 52.9% 261303 Software Engineer 139 42 181 76.8% 262101 Database Administrator 35 175 210 16.7% 262102 ICT Security Specialist 56 7 63 88.9% 262103 Systems Administrator 21 154 175 12.0% 263101 Computer Network and Systems Engineer 256 24 280 91.4% 263102 Network Administrator 19 11 30 63.3% 263103 Network Analyst 48 254 302 15.9% 263201 ICT Quality Assurance Engineer 30 501 531 5.6% 263202 ICT Support Engineer 306 0 306 100.0% 263203 ICT Systems Test Engineer 61 13 74 82.4% 263204 Applications Support Manager 11 0 11 100.0% 263205 Technical Support Services Manager 12 0 12 100.0% 263301 Telecommunications Engineer 18 0 18 100.0% 263302 Telecommunications Network Engineer 21 1 22 95.5% 312302 Electrical Engineering Technician 9 441 450 2.0% 312401 Electronic Engineering Draftsperson 1 0 1 100.0% 312402 Electronic Engineering Technician 21 250 271 7.7% 313101 Hardware Technician 15 0 15 100.0% 313102 ICT Customer Support Officer 61 20 81 75.3% 313104 Computer Systems Technician 135 40 175 77.1%


Occupation Isett Other Setas RSA

% Isett to

Total 313105 Telecommunications Computer Systems Technician 89 76 165 53.9% 313201 Radio Communications Technician 4 0 4 100.0% 313202 Telecommunications Field Engineer 200 0 200 100.0% 313204 Telecommunications Technical Officer or Technologist 8 0 8 100.0% 323101 Aircraft Maintenance Technicians (Avionics) 0 345 345 0.0% 342301 Business Machine Mechanic 38 0 38 100.0% 342304 Electronic Instrument Trades Worker (General) 17 14 31 54.8% 342401 Cabler (Data and Telecommunications) 7 0 7 100.0% 342404 Telecommunications Technician 10 5 15 66.7% 399501 Broadcast Transmitter Operator 0 20 20 0.0% 611302 Sales Representative (Business Services) 85 10 95 89.5% 621201 ICT Sales Assistant 20 0 20 100.0% Total Demand 2,716 4,973 7,689 35.3%

In summary, the estimation of ICT vacancies over the three year period 2009 to 2012 is about 2,700 within the Isett Sector and a further 5,000 across the other Seta sectors.

This estimation of 7,689 ICT vacancies over the three year period 2009 to 2012 is in sharp contrast to other studies that have been performed. For example, as pointed out in Accenture’s study in 200818, an IDC report commissioned by Cisco, published in 2006, stated that the actual demand for networking personnel was 70,500 in 2005, growing to an estimated 113,900 in 2009. While it is acknowledged that these figures represent national demand, these figures appear to be extremely high. If all the demand stated in the table above represented personnel only involved in networking, the Isett Sector would account for only 2.25% of national demand, bearing in mind that the figures in the table represent three years of demand.

4.4 Supply of ICT Skills versus Demand for ICT Skills In the table above, the OFO codes starting with the digit “2” largely represent degree graduates from Universities, and the remaining OFO codes (starting with a “3” or “6”) largely represent diploma graduates from Universities of Technology. The totals of these degree and diploma categories are presented in the following table as “Degree Level Demand” and “Diploma Level Demand” respectively, bearing I mind that this demand represents three years of demand. Using the 2009, 2010 and 2011 data in Table 10, the supply of degree and diploma graduates is also presented in the following table, allowing a comparison between supply of ICT skills from the formal educational institutions and national demand for ICT skills.

Table 13: Estimation of Supply versus Demand for ICT Skills within South Africa, 2009 - 2012

Isett Other Setas RSA

%Isett to

Total Degree Level Supply 5,239 Degree Level Demand 1,996 3,752 5,748 34.7% Estimated National Bachelor Degree Oversupply -506 Diploma Level Supply 7,224 Diploma Level Demand 720 1,221 1,941 37.1% Estimated National Diploma Oversupply 5,283

From the table above, it can be observed that there is an anticipated undersupply of about 500 University graduates over the three-year period 2009 to 2012, whereas there is an anticipated oversupply of about 5,000 University of Technology graduates for the same period.

The undersupply of 500 university graduates could be far worse. In a report by the Sunday Times19, it was reported that:

· New research at the University of Stellenbosch showed that of the 400 PhDs awarded in 2007, more than half of these were from other African countries.

18 “The ICT Skills Landscape of South Africa: A viewpoint on Demand, Supply and applicable International Benchmarks”, Accenture Research, August 2008. 19 SA Brains choose dosh over degrees”, The Sunday Times, 8th August 2010, Page 8.


· The African Institute for Mathematical Sciences reported that on 10% of its graduates were South African.

· The University of Cape Town reported that 25% to 30% of its post-graduates in the science faculty were draw from other countries.

If these trends also apply to the ICT Sector, South Africa could find itself facing a shortage of some 2,000 graduates over the next three years.

4.5 Assessment of Formal Education Institutions The findings on the Isett Sector’s assessment of the formal education institutions are presented in Appendix 2: Assessment of Formal Education Institutions on page 76.

In summary, respondents feel strongly that the schooling system is letting the Isett Sector (if not the country and the learners) down in terms of quality of education and attitude of the graduates. There is strong criticism around poor English (the ICT Sector is a very international sector), poor maths, science, life skills, ICT skills, business acumen and experience.

Similar, but not quite as vociferous, comments were received about the colleges, with perhaps hands-on technical experience coming more to the fore.

With regard to Universities and Universities of Technology, there are similar concerns around poor English, poor maths, science, life skills, ICT skills, business acumen, but many of these issues are as a result of fall-out from the poor schooling education. There is recognition the Universities of Technology offer more practical experience than the Universities, an aspect that is appreciated, but more attention could be directed at further increasing the practical aspect.

Appendix 2: Assessment of Formal Education Institutions also provides insight as to what the Isett Sector feels is the supply and demand issues.

5 Scarce and Critical Skills

5.1 Introduction The current and forecast supply of skills was discussed in detail in Chapter 3 and the demand for skills by industry was presented in Chapter 2. This Chapter is based on the requirements for Scarce and Critical Skills.

The following definitions of Scarce and Critical Skills apply:

SCARCE SKILLS refer to those occupations in which there are a scarcity of qualified and experienced people, currently or anticipated in the future, either (a) because such skilled people are not available or (b) they are available but do not meet employment criteria.

CRITICAL SKILLS, on the other hand, refer to specific key or generic and “top up” skills within an occupation.

This chapter is split into two main areas, involving differentiation between Scarce Skills and Critical Skills, the former relating to opportunities for recruitment, and the later relating to further upskilling of personnel in current existing occupations.

The data presented in this chapter represents a summary of data gathered from WSPs submitted to the Isett Seta during April to June 2010.

Note that the findings presented below relate only to those 910 companies that submitted WSPs in 2010, as opposed to the 2,672 companies in the Isett Sector. It should also be noted that these 910 companies represent around 126,500 out of the 143,000 employees (88%) in the Isett Sector. For this reason, the data presented below should be viewed as being slightly conservative.

Unless otherwise stated, all data in this chapter represents number of interventions.

In this chapter, four time frames are presented, these being:

· Immediate – these are immediate vacancies as at end – March 2010 · Anticipated need for the period 1st April 2010 to 31st March 2011 · Anticipated need for the period 1st April 2011 to 31st March 2012 · Anticipated need for the period 1st April 2012 to 31st March 2013

5.2 Isett Involvement in Types of Training Programmes by NQF Level In terms of skills development, Isett’s responsibilities cover the certain training programmes and certain NQF levels, as defined by the Department of Labour. The following table defines the various training programmes.


Table 14: Types of Training Programmes

Learning Programme Types

Abbre-viation

Description Learning Site

Generic Diplomas, Degrees, Certificates

Ed Theoretical knowledge provided by an institutional provider

Classroom based

Technical Qualifications and Technical Programmes

TQ TP

General theoretical knowledge provided by an institutional provider and experiential learning with an employer or simulated environment

Mainly classroom based but includes simulation and may include workplace learning

Internship Articles Licensing Requirements

I A L

A workplace or practical component is required in addition to a general theoretical knowledge based qualification (institutional provider) in order to obtain registration as a professional or licensed to practise

A compulsory or statutory workplace component of a qualification

Learnerships Apprenticeships (Section 13)

Ls Ap

An occupationally directed programme resulting in a registered qualification and that requires an agreement and/or contract

Mainly workplace based but includes classroom learning

Skills Programmes SP An occupationally directed programme, registered by a SETA, which is presented by an accredited provider and when completed will constitute a credit towards an NQF registered qualification

Workplace and classroom

Short Courses and Continuing Professional Development

SC CPD

Any learning or development programme that may or may not lead to credits towards an NQF registered qualification

Classroom or simulated or classroom and simulated

Work experience for unemployed graduates (in scarce skills)

WE Work experience provided by a workplace for unemployed graduates (in scarce skills)

Workplace only

In order to better distinguish between Skills Programmes and Short Courses, it should be noted that Isett views Short Courses as training programmes that may lead to credits but have no workplace component, whereas Skills Programmes do lead to credits and have a workplace component.

The various NQF Levels that Isett is involved with, segmented by the various training programmes, is presented in the following table.

Table 15: Types of Training Programmes by NQF Level

NQF Level 1 2 3 4 5 6 7 8 Ap - Apprenticeships (Section 28) NON RPL √ √ √ √ √ √ CPD - Continuing Professional Development √ √ Ed - Generic, Diplomas, Degrees, Certificates I - Internship √ √ √ √ √ L - Licensing Requirements √ √ √ √ √ √ Ls - Learnerships √ √ √ √ √ SC - Short Courses √ √ √ √ √ √ SP - Skills Programmes √ √ √ √ √ √ √ TP - Technical Programmes √ √ √ √ √ TQ - Technical Qualifications √ √ √ √ √ WE - Work Experience for unemployed graduates (in scarce skills) √ √ √ √ √

Isett has the following registered Learnerships:


No SAQA ID Learnership Title NQF

Level DoL Registration

No. 1 48872 Systems Development (Commerce Development) 5 12 Q12002525131 5 2 48872 Systems Development (Fourth Generation Language Programming) 5 12 Q12002424131 5 3 61591 GUI-Based Applications For End-User Computing 3 12 Q12002040130 3 4 49530 Masters in Information Engineering 7 12Q12001800180 7 5 49530 Masters in Telecommunications Engineering 7 12Q12001900180 7 6 48872 Systems Development (Multi-Media Development) 5 12 Q12002228131 5 7 48872 Systems Development (Object Oriented Programming) 5 12 Q12002624131 5 8 48872 Systems Development (Procedural Programming) 5 12 Q12002124131 5 9 48872 Solutions Development/Programming 5 12 Q12001500120 5

10 24294 Systems Development 4 12 Q00001737181 4 11 48573 Systems Support (Desktop) 5 12 Q12001400120 5 12 48573 Systems Support (Engineer) 5 12 Q12001100120 5 13 24293 Technical Support 4 12Q00001645175 4 14 59057 Telecommunication Network Operations 4 12Q120027581324 15 48872 Website Development 5 12 Q120023251315 16 59450 Diploma :Technology Management and Innovation 6 12Q120028002406 17 63909 National Certificate :Business Analysis 6 12Q120032201496 18 63769 National Certificate :Business Analysis Support Practice 5 12Q120033231385 19 59449 Diploma :Technology Management and Innovation 5 12Q120029001205 20 59469 Master of Philosophy: Management of Technology and Innovation (MOTI) 8 12Q120030002408 21 59489 Doctor of Philosophy :Management of Technology and Innovation (MOTI)

The training programmes reflected in the table above can be reduced by treating:

· Continuing Professional Development as Short Courses (non-unit standard);

· Licensing Requirements as Apprenticeships;

· Technical Programmes and Technical Qualifications as Learnerships; and

· Work Experience as Internships.

5.3 Demand for Scarce Skills

5.3.1 Introduction

Scarce skills represent a demand for personnel currently unavailable for occupations in companies. Scarce skills therefore represent opportunities for unemployed people.

5.3.2 Demand for Scarce Skills, by Learning Programmes and NQF Level

The following table summarises the demand for scarce skills, segmented by type of learning programme.

Table 16: Summary of Demand for Scarce Skills, by Learning Programmes


Immediate as at 31st March

2010

1st April 2010 to

31st March 2011

1st April 2011 to

31st March 2012

1st April 2012 to

31st March 2013

Total to 31st

March 2013

Ap - Apprenticeships (Section 28) NON RPL 7 9 8 3 27 Ed - Generic, Diplomas, Degrees, Certificates 346 272 231 341 1,190 I - Internship 67 59 65 58 249 Ls - Learnerships 233 232 232 235 932 SC - Short Courses 233 198 192 290 913 SP - Skills Programmes 89 81 61 78 309 Total 975 851 789 1,005 3,620 Source: Isett Seta OGS

By March 2013, there is demand for some 3,620 learning programmes, about 26% (932) being learnerships and 7% (249) being internships. Demand for short courses and skills programmes are about 25% (913) and 9% (309) respectively.


The following table provides more detail on the demand for scarce skills, segmented by type of learning programme and NQF Level.

Table 17: Demand for Scarce Skills, by Type of Learning Programmes and NQF Level

Type of Learning Programme NQF Level

Immed-iate as at 31st March 2010

1st April

2010 to 31st

March 2011

1st April

2011 to 31st

March 2012

1st April

2012 to 31st

March 2013

Total to 31st

March 2013

Ap - Apprenticeships (Section 28) NON RPL Level 4 2 3 3 2 10 Level 5 5 6 5 1 17

Ap - Apprenticeships (Section 28) NON RPL Sub-Total 7 9 8 3 27 Ed - Generic, Diplomas, Degrees, Certificates Level 2 0 0 0 1 1

Level 3 3 2 0 0 5 Level 4 21 20 15 20 76 Level 5 94 64 57 67 282 Level 6 104 77 69 126 376 Level 7 73 66 54 73 266 Level 8 51 43 36 54 184

Ed - Generic, Diplomas, Degrees, Certificates Sub-Total 346 272 231 341 1,190 I - Internship Level 3 0 0 0 1 1

Level 4 7 5 10 7 29 Level 5 28 26 32 23 109 Level 6 30 28 23 26 107 Level 7 1 0 0 0 1 Level 8 1 0 0 1 2

I - Internship Sub-Total 67 59 65 58 249 Ls - Learnerships Level 2 1 0 0 1 2

Level 3 2 0 0 2 4 Level 4 21 27 23 28 99 Level 5 130 141 143 132 546 Level 6 69 50 52 60 231 Level 7 7 11 11 10 39 Level 8 3 3 3 2 11

Ls - Learnerships Sub-Total 233 232 232 235 932 SC - Short Courses Level 1 17 18 25 17 77

Level 2 11 13 15 6 45 Level 3 1 1 1 4 7 Level 4 46 43 42 47 178 Level 5 82 54 42 121 299 Level 6 55 53 55 71 234 Level 7 7 9 7 7 30 Level 8 14 7 5 17 43

SC - Short Courses Sub-Total 233 198 192 290 913 SP - Skills Programmes Level 1 4 0 0 0 4

Level 3 4 1 3 3 11 Level 4 8 4 5 6 23 Level 5 44 48 24 44 160 Level 6 27 27 26 23 103 Level 8 2 1 3 2 8

SP - Skills Programmes Sub-Total 89 81 61 78 309 Total 975 851 789 1,005 3,620 Source: Isett Seta OGS

The following table provides the demand for scarce skills over the next three years, segmented by type of learning programme and occupation.


Table 18: Demand for Scarce Skills, by Learning Programmes and Occupation

Type of Learning Programme Occupation Immed-iate to 31st

March 2013

Ap - Apprenticeships (Section 28) NON RPL 233502 Mechanical Engineer 2 261101 ICT Business Analyst 15 323402 Toolmaker 10 Ap - Apprenticeships (Section 28) NON RPL Total 27 Ed - Generic, Diplomas, Degrees, Certificates 111101 Director (Enterprise / Organisation) 1 111201 Corporate General Manager 32 131102 Sales and Marketing Manager 11 131103 Sales Manager 7 132501 Research and Development Manager 1 133201 Engineering Manager 16 133202 Engineering Maintenance Manager 3 133504 Operations Manager (Non Manufacturing) 2 133601 Supply and Distribution Manager 1 135101 Chief Information Officer 1 135102 ICT Project Manager 27 136102 Programme or Project Manager 7 139902 Environmental Manager 4 221204 Internal Auditor 2 223102 Recruitment Consultant / Officer 2 223201 ICT Trainer 3 223301 Training and Development Professional 12 223303 Assessment Practitioner 8 224102 Mathematician 5 224103 Statistician 2 224402 Policy Analyst 1 224701 Management Consultant 4 224702 Organisation and Methods Analyst 8 224704 Ergonomist 2 225103 Marketing Practitioner 19 225201 ICT Account Manager 1 225202 ICT Business Development Manager 2 225302 Marketing / Communication Strategist 1 232404 Web Designer 1 232601 Urban and Regional Planner 2 233101 Chemical Engineer 8 233201 Civil Engineer 11 233301 Electrical Engineer 9 233401 Electronics Engineer 102 233402 Electronics and Telecommunications Engineering Technologist 11 233501 Industrial Engineer 20 233502 Mechanical Engineer 57 233506 Metallurgical Engineering Technologist 9 233601 Mining Engineer (excluding Petroleum) 2 233901 Aeronautical Engineer 8 234103 Forester / Forest Scientist 8 234303 Environmental Research Scientist 12 234503 Biochemist 6 234504 Biotechnologist 6 234903 Meteorologist 8 234904 Physicist 1 251501 Hospital Pharmacist 3 254403 Registered Nurse (Child and Family Health) 1 261101 ICT Business Analyst 97 261102 Systems Analyst 26 261202 Web Developer 6 261301 Analyst Programmer 27 261302 Developer Programmer 121 261303 Software Engineer 71 262101 Database Administrator 10 262102 ICT Security Specialist 12 263101 Computer Network and Systems Engineer 98 263102 Network Administrator 3 263201 ICT Quality Assurance Engineer 2 263202 ICT Support Engineer 73 263203 ICT Systems Test Engineer 4 263204 Applications Support Manager 2 263302 Telecommunications Network Engineer 49 311401 Chemistry Technician 3 312302 Electrical Engineering Technician 2 312401 Electronic Engineering Draftsperson 2 313101 Hardware Technician 8 313102 ICT Customer Support Officer 5 313104 Computer Systems Technician 6



March 2013

313202 Telecommunications Field Engineer 3 313204 Telecommunications Technical Officer or Technologist 9 342404 Telecommunications Technician 6 521101 Personal Assistant 20 541101 Inbound Contact Centre Consultant 20 551102 Cost Clerk 1 551201 Bookkeeper 2 591103 Purchasing Officer 1 611302 Sales Representative (Business Services) 31 Ed - Generic, Diplomas, Degrees, Certificates Total 1,190 I - Internship 136102 Programme or Project Manager 3 232401 Graphic Designer 2 232404 Web Designer 6 233301 Electrical Engineer 3 233401 Electronics Engineer 33 261101 ICT Business Analyst 11 261102 Systems Analyst 1 261202 Web Developer 2 261302 Developer Programmer 11 261303 Software Engineer 3 262102 ICT Security Specialist 5 262103 Systems Administrator 2 263201 ICT Quality Assurance Engineer 6 263202 ICT Support Engineer 1 313102 ICT Customer Support Officer 81 313104 Computer Systems Technician 77 511201 Office Administrator 1 611302 Sales Representative (Business Services) 1 I - Internship Total 249 Ls - Learnerships 135102 ICT Project Manager 35 212102 Media Producer 2 212405 Technical Writer 2 222301 Financial Investment Advisor 7 223201 ICT Trainer 12 224103 Statistician 3 224702 Organisation and Methods Analyst 0 225202 ICT Business Development Manager 12 225203 ICT Sales Representative 5 225401 Sales Representative / Salesman (Industrial Products) 1 232401 Graphic Designer 3 233401 Electronics Engineer 3 233402 Electronics and Telecommunications Engineering Technologist 6 233502 Mechanical Engineer 9 233506 Metallurgical Engineering Technologist 4 261101 ICT Business Analyst 71 261102 Systems Analyst 6 261202 Web Developer 27 261301 Analyst Programmer 5 261302 Developer Programmer 98 261303 Software Engineer 57 262101 Database Administrator 14 262102 ICT Security Specialist 77 262103 Systems Administrator 3 263101 Computer Network and Systems Engineer 78 263103 Network Analyst 37 263201 ICT Quality Assurance Engineer 31 263202 ICT Support Engineer 46 263203 ICT Systems Test Engineer 117 263204 Applications Support Manager 6 263302 Telecommunications Network Engineer 8 311215 Health Technical Support Officer 1 312302 Electrical Engineering Technician 10 312402 Electronic Engineering Technician 11 313101 Hardware Technician 1 313102 ICT Customer Support Officer 26 313104 Computer Systems Technician 49 313202 Telecommunications Field Engineer 21 313203 Telecommunications Network Planner 5 313204 Telecommunications Technical Officer or Technologist 1 341101 Electrician (General) 5 342301 Business Machine Mechanic 2 342304 Electronic Instrument Trades Worker (General) 2 342404 Telecommunications Technician 11 611302 Sales Representative (Business Services) 2 Ls - Learnerships Total 932



March 2013

SC - Short Courses 131101 Advertising and Public Relations Manager 0 131103 Sales Manager 2 132401 Policy and Planning Manager 1 133504 Operations Manager (Non Manufacturing) 3 135102 ICT Project Manager 26 136102 Programme or Project Manager 2 149301 Event Manager 3 221101 Accountant (General) 1 221204 Internal Auditor 2 223101 Human Resource Advisor 3 224301 Economist 2 224701 Management Consultant 1 225103 Marketing Practitioner 2 225201 ICT Account Manager 19 225203 ICT Sales Representative 46 225302 Marketing / Communication Strategist 1 225401 Sales Representative / Salesman (Industrial Products) 83 233401 Electronics Engineer 12 234201 Chemist 5 234302 Environmental Consultant 2 234504 Biotechnologist 5 261101 ICT Business Analyst 75 261102 Systems Analyst 28 261301 Analyst Programmer 21 261302 Developer Programmer 70 261303 Software Engineer 28 262101 Database Administrator 14 262102 ICT Security Specialist 1 262103 Systems Administrator 1 263101 Computer Network and Systems Engineer 202 263201 ICT Quality Assurance Engineer 12 263202 ICT Support Engineer 4 263203 ICT Systems Test Engineer 0 263204 Applications Support Manager 3 263205 Technical Support Services Manager 1 311401 Chemistry Technician 2 312402 Electronic Engineering Technician 10 313101 Hardware Technician 6 313102 ICT Customer Support Officer 94 313104 Computer Systems Technician 5 341102 Electrician (Special Class) 3 342404 Telecommunications Technician 20 521101 Personal Assistant 1 541401 Call or Contact Centre Agent 42 551201 Bookkeeper 6 621101 Sales Assistant (General) 40 621201 ICT Sales Assistant 1 639301 Telemarketer 0 711107 Fibre-Cement Moulder 1 732101 Delivery Driver (Vehicle) 1 SC - Short Courses Total 913 SP - Skills Programmes 111101 Director (Enterprise / Organisation) 2 135102 ICT Project Manager 10 136102 Programme or Project Manager 5 149202 Customer Service Manager 4 221101 Accountant (General) 60 221102 Management Accountant 2 223301 Training and Development Professional 1 225103 Marketing Practitioner 18 233102 Chemical Engineering Technologist 8 249101 Education or Training Advisor 17 261101 ICT Business Analyst 8 261102 Systems Analyst 3 261202 Web Developer 8 261301 Analyst Programmer 8 261302 Developer Programmer 42 261303 Software Engineer 2 262101 Database Administrator 22 262102 ICT Security Specialist 6 262103 Systems Administrator 2 263101 Computer Network and Systems Engineer 5 263102 Network Administrator 3 263202 ICT Support Engineer 1 263203 ICT Systems Test Engineer 4 313101 Hardware Technician 6



March 2013

313102 ICT Customer Support Officer 5 313103 Web Administrator 5 313201 Radio Communications Technician 5 342401 Cabler (Data and Telecommunications) 16 342404 Telecommunications Technician 1 511102 Program or Project Administrators 20 521201 Secretary (General) 2 561401 Mail Clerk 4 611302 Sales Representative (Business Services) 4 SP - Skills Programmes Total 309 Grand Total 3,620


In particular, with regard to Learnerships, the following table is a re-arrangement of the Learnership data above to provide a ranking of the top twenty occupations that require development of Scarce Skills via Learnerships, based on the total demand over the next three years. The occupations highlighted in Bold are the occupations which are specifically ICT oriented. All but three of these occupations require ICT technical skills, as indicated in Bold.

Table 19: Ranking of the Top Twenty Scarce Skill Occupations

Occupation Immed-iate to 31st

March 2013

263101 Computer Network and Systems Engineer 383 261302 Developer Programmer 342 261101 ICT Business Analyst 277 313102 ICT Customer Support Officer 211 261303 Software Engineer 161 233401 Electronics Engineer 150 313104 Computer Systems Technician 137 263202 ICT Support Engineer 125 263203 ICT Systems Test Engineer 125 262102 ICT Security Specialist 101 135102 ICT Project Manager 98 225401 Sales Representative / Salesman (Industrial Products) 84 233502 Mechanical Engineer 68 261102 Systems Analyst 64 221101 Accountant (General) 61 261301 Analyst Programmer 61 262101 Database Administrator 60 263302 Telecommunications Network Engineer 57 225203 ICT Sales Representative 51 263201 ICT Quality Assurance Engineer 51


5.4 Demand for Critical Skills

5.4.1 Introduction

Critical skills represent the demand for learning programmes for currently employed personnel.

5.4.2 Demand for Critical Skills, by Learning Programmes and NQF Level

The following table summarises the demand for scarce skills, segmented by type of learning programme.


Table 20: Summary of Demand for Critical Skills, by Learning Programmes

Number of Critical Skill (Top-Up) Training

Interventions



1st April 2010 to

31st March 2011

1st April 2011 to

31st March 2012

1st April 2012 to

31st March 2013

Total to

31st March 2013

Ap - Apprenticeships (Section 28) NON RPL 15 10 10 5 40 Ed - Generic, Diplomas, Degrees, Certificates 190 163 152 188 693 I - Internship 75 42 40 26 183 Ls - Learnerships 229 204 216 239 888 SC - Short Courses 451 334 295 788 1,868 SP - Skills Programmes 142 127 93 164 526 Total 1,102 880 806 1,410 4,198 Total as specified in the 2009 Sector Skills Plan 1,261 1,862 Total as specified in the 2008 Sector Skills Plan 2,252


In terms of satisfying the demand for Critical (Top-Up) Skills, the main points to note from the table above are:

· The greatest demand for type of learning programme lies with Short Courses (as was the case I previous years) which account for 44% of total demand over the next three years, followed by Learnerships at 21%.

· Demand for Internships account for less than 4% of total demand over the next three years.

· The immediate number of top-up skill interventions required (2010: 1,102) is significantly lower to that specified a year ago (1,657). Similarly, the top-up skill interventions required for the following two years are also significantly lower than what was forecast by stakeholders in previous years for the same periods.

The following table provides an indication of which occupations require Critical Skills, and the extent thereof.

Table 21: Summary of Demand for Critical Skills, by Occupation


Interventions

Occupation


1st April 2010 to

31st March 2011

1st April 2011 to

31st March 2012

1st April 2012 to

31st March 2013

Total to 31st

March 2013

111101 Director (Enterprise / Organisation) 9 5 3 6 23 111201 Corporate General Manager 29 28 27 18 102 131102 Sales and Marketing Manager 3 8 3 7 21 131104 Director of Marketing 2 0 0 0 2 132101 Corporate Services Manager 1 1 1 2 5 132102 Resources Manager 0 0 0 1 1 132201 Finance Manager 6 1 0 0 7 132401 Policy and Planning Manager 2 1 0 1 4 132501 Research and Development Manager 0 0 0 1 1 133201 Engineering Manager 10 10 10 5 35 133502 Production / Operations Manager (Manufacturing) 0 0 0 1 1 133504 Operations Manager (Non Manufacturing) 2 0 0 2 4 133601 Supply and Distribution Manager 1 0 0 0 1 135102 ICT Project Manager 24 17 15 39 95 136102 Programme or Project Manager 6 6 4 9 25 149202 Customer Service Manager 1 0 0 8 9 Total, Managers 96 77 63 100 336 212405 Technical Writer 5 0 0 0 5 221101 Accountant (General) 1 1 0 28 30 221102 Management Accountant 0 3 0 1 4 221204 Internal Auditor 1 0 0 0 1 222301 Financial Investment Advisor 12 12 15 1 40 223101 Human Resource Advisor 1 0 0 0 1 223102 Recruitment Consultant / Officer 1 0 0 1 2 223201 ICT Trainer 4 4 4 4 16 223301 Training and Development Professional 2 2 2 2 8 224102 Mathematician 2 2 2 2 8



Interventions

Occupation


1st April 2010 to

31st March 2011

1st April 2011 to

31st March 2012

1st April 2012 to

31st March 2013

Total to 31st

March 2013

224301 Economist 5 2 2 2 11 224402 Policy Analyst 0 1 0 0 1 224701 Management Consultant 1 0 0 3 4 224702 Organisation and Methods Analyst 4 0 0 5 9 224704 Ergonomist 3 2 0 2 7 225103 Marketing Practitioner 11 6 6 5 28 225201 ICT Account Manager 12 20 17 31 80 225202 ICT Business Development Manager 1 1 0 0 2 225203 ICT Sales Representative 14 6 6 14 40 225401 Sales Representative / Salesman (Industrial Products) 26 20 20 21 87 232401 Graphic Designer 9 1 0 0 10 232404 Web Designer 0 0 0 0 0 233101 Chemical Engineer 12 9 11 13 45 233301 Electrical Engineer 0 2 2 0 4 233401 Electronics Engineer 20 23 21 28 92 233402 Electronics and Telecommunications Engineering Technologist 1 0 0 2 3 233501 Industrial Engineer 0 0 0 3 3 233502 Mechanical Engineer 7 5 5 9 26 233503 Metallurgical Engineer 2 2 2 3 9 233601 Mining Engineer (excluding Petroleum) 1 1 0 0 2 234201 Chemist 4 4 4 4 16 234302 Environmental Consultant 1 0 0 1 2 234303 Environmental Research Scientist 4 8 3 2 17 234402 Geophysicist 2 2 2 2 8 234403 Earth and Soil Scientist 1 1 1 1 4 234503 Biochemist 1 2 2 1 6 234504 Biotechnologist 2 1 0 2 5 234903 Meteorologist 2 2 2 2 8 249101 Education or Training Advisor 2 2 0 7 11 251501 Hospital Pharmacist 0 0 0 3 3 261101 ICT Business Analyst 102 115 117 64 398 261102 Systems Analyst 20 15 6 17 58 261202 Web Developer 31 21 7 51 110 261301 Analyst Programmer 15 10 9 9 43 261302 Developer Programmer 136 111 92 130 469 261303 Software Engineer 41 31 29 37 138 262101 Database Administrator 7 3 2 17 29 262102 ICT Security Specialist 21 21 21 32 95 262103 Systems Administrator 4 2 1 9 16 263101 Computer Network and Systems Engineer 36 38 41 38 153 263102 Network Administrator 14 3 2 7 26 263103 Network Analyst 0 4 1 1 6 263201 ICT Quality Assurance Engineer 1 0 0 0 1 263202 ICT Support Engineer 70 56 54 53 233 263203 ICT Systems Test Engineer 42 44 62 20 168 263204 Applications Support Manager 6 4 2 3 15 263205 Technical Support Services Manager 11 11 9 13 44 263301 Telecommunications Engineer 13 8 5 8 34 263302 Telecommunications Network Engineer 5 5 5 111 126 Total, Professionals 752 649 594 825 2,820 311401 Chemistry Technician 2 0 0 3 5 311406 Industrial Research Technician 0 1 1 2 4 312402 Electronic Engineering Technician 6 4 4 7 21 312502 Mechanical Engineering Technician 1 1 0 0 2 313101 Hardware Technician 17 12 17 17 63 313102 ICT Customer Support Officer 37 27 22 79 165 313103 Web Administrator 5 0 1 0 6 313104 Computer Systems Technician 53 25 31 65 174 313105 Telecommunications Computer Systems Technician 0 0 0 1 1 313201 Radio Communications Technician 0 0 0 10 10 313202 Telecommunications Field Engineer 4 2 0 2 8



Interventions

Occupation


1st April 2010 to

31st March 2011

1st April 2011 to

31st March 2012

1st April 2012 to

31st March 2013

Total to 31st

March 2013

313203 Telecommunications Network Planner 2 0 0 2 4 313204 Telecommunications Technical Officer or Technologist 1 0 1 0 2 341102 Electrician (Special Class) 2 1 1 2 6 342301 Business Machine Mechanic 3 0 0 3 6 342302 Communications Operator 2 1 1 3 7 342304 Electronic Instrument Trades Worker (General) 2 0 0 4 6 342404 Telecommunications Technician 35 32 27 19 113 Total, Technicians and Trade Workers 172 106 106 219 603 511102 Program or Project Administrators 6 5 5 8 24 511201 Office Administrator 1 0 0 33 34 521101 Personal Assistant 1 0 0 1 2 531101 General Clerk 10 5 0 47 62 541101 Inbound Contact Centre Consultant 5 5 5 7 22 541102 Outbound Contact Centre Consultant 9 0 0 0 9 541401 Call or Contact Centre Agent 11 8 8 124 151 542101 Receptionist (General) 0 0 0 2 2 551101 Accounts Clerk 2 0 0 1 3 551201 Bookkeeper 1 0 0 3 4 561401 Mail Clerk 0 0 0 0 0 591103 Purchasing Officer 0 0 0 1 1 591105 Stock Clerk / Officer 1 0 0 0 1 591201 Dispatching and Receiving Clerk / Officer 0 1 1 0 2 Total, Clerical and Administrative Workers 47 24 19 227 317 611302 Sales Representative (Business Services) 22 15 15 21 73 621101 Sales Assistant (General) 2 1 1 2 6 621201 ICT Sales Assistant 7 8 8 8 31 639301 Telemarketer 3 0 0 3 6 Total, Sales Workers 34 24 24 34 116 732101 Delivery Driver (Vehicle) 1 0 0 1 2 Total, Machinery Operators and Drivers 1 0 0 1 2 811401 Commercial Housekeeper 0 0 0 1 1 831110 Coffee and Tea Process Worker 0 0 0 3 3 Total, Elementary Workers 0 0 0 4 4 Grand Total 1,102 880 806 1,410 4,198 Source: Isett Seta OGS

In terms of satisfying the demand for Critical (Top-Up) Skills, the greatest demand for Critical Skills lies in the category of Professionals (67% of Total number of interventions to 31st March 2013).

The following table is a re-arrangement of the table above to provide a ranking of the top forty occupations that require development of critical skills, based on the total demand over the next three years. The occupations highlighted in Bold are the occupations which are specifically ICT oriented.

Table 22: Ranking of the Top Forty Occupations where there is Demand for Critical Skills

Occupation

Total to 31st

March 2013

261302 Developer Programmer 469 261101 ICT Business Analyst 398 263202 ICT Support Engineer 233 313104 Computer Systems Technician 174 263203 ICT Systems Test Engineer 168 313102 ICT Customer Support Officer 165 263101 Computer Network and Systems Engineer 153 541401 Call or Contact Centre Agent 151 261303 Software Engineer 138 263302 Telecommunications Network Engineer 126 342404 Telecommunications Technician 113 261202 Web Developer 110


Occupation

Total to 31st

March 2013

111201 Corporate General Manager 102 135102 ICT Project Manager 95 262102 ICT Security Specialist 95 233401 Electronics Engineer 92 225401 Sales Representative / Salesman (Industrial Products) 87 225201 ICT Account Manager 80 611302 Sales Representative (Business Services) 73 313101 Hardware Technician 63 531101 General Clerk 62 261102 Systems Analyst 58 233101 Chemical Engineer 45 263205 Technical Support Services Manager 44 261301 Analyst Programmer 43 222301 Financial Investment Advisor 40 225203 ICT Sales Representative 40 133201 Engineering Manager 35 263301 Telecommunications Engineer 34 511201 Office Administrator 34 621201 ICT Sales Assistant 31 221101 Accountant (General) 30 262101 Database Administrator 29 225103 Marketing Practitioner 28 233502 Mechanical Engineer 26 263102 Network Administrator 26 136102 Programme or Project Manager 25 511102 Program or Project Administrators 24 111101 Director (Enterprise / Organisation) 23 541101 Inbound Contact Centre Consultant 22


6 The Isett Seta 2011 – 2016 Strategy

6.1 Introduction The Isett Seta management team, comprising nine members, synthesised the data in the previous sections in a workshop to produce the Isett Seta five-year strategy. Isett Seta’s strategy has been presented to stakeholders, and has been approved by Isett’s Board of Directors.

The Isett Seta’s five-year strategy is presented below.


ISETT SETA STRATEGIC PLAN FOR THE MTEF PERIOD

2011/12 – 2013/14


1 INTRODUCTION/EXECUTIVE SUMMARY

1.1 Key mandate

The Isett Seta’s mandate is to receive funds and disburse grants in terms of applicable legislation; to facilitate skills

development initiatives and quality assure learning programme delivery in the ICT Sector.

1.2 Objective of the Seta

The objective of the Isett Seta is to develop current and future skills and contribute towards economic growth and

employment in the ICT Sector.

1.3 Legislative framework in which the Seta functions and policy and

legislative changes that influence programme spending plans.

Ø Section 9 of the Skills Development Act 1998 (Act No 97 of 1998) as amended;

Ø The Skills Development Levies Act, 1999 (Act No 09 of 1999).

Ø The South African Qualifications Authority Act, 1995 (Act No 58 of 1995); and

Ø Public Finance Management Act. of 1999 and the Treasury Regulations issued in terms of the PFMA

Ø Employment Equity Act, 1998

The other frameworks that influence the programme spending plans are:

Ø NSDS III Frameworks

Ø Framework for the National Skills Development Strategy 2011/12 – 2015/16

Ø Medium Term Strategic Framework (2009 – 2014)

Ø Human Resources Development Strategy of South Africa 18 March 2009


1.4 Background on establishment

The Isett Seta was established through the Skills Development Act, 1998 (Act No. 97 of 1998), after the Minister

had determined the Information Systems (IT), Electronics and Telecommunications Technologies Sector as a

discrete sector in terms of section 9 of the Act.

1.5 Development of this Strategic Plan

This strategic plan has been prepared in accordance with the requirements as stated in Chapter 5 of the Treasury

Regulations for departments, trading entities, constitutional institutions and public entities, issued in terms of the

Public Finance Management Act, 1999 by National Treasury, Republic of South Africa, [March 2005] February

2007.

This strategic plan will form the basis for the forthcoming annual reports of the Isett Seta, as required by sections

40(1) (d) and (e) of the Treasury Act.

1.6 Materiality

The Accounting Authority has assessed the level of materiality for 2011/12 as R1 166 213(10/11 R1 043 519),

being 0.25% of gross revenue. Gross revenue is defined as consisting of 100% of Skills Development Levies, (of

which 80% is received by Isett) as well as investment income.

In determining the materiality value as 0.25% of revenue, we have considered the following factors:

Ø Nature of the Seta’s business.

Ø Statutory requirements laid down on the Seta.

Ø The control and inherent risks associated with the Seta.

Materiality is not merely related to the size of the misstatement as misstatements may also be material on

qualitative grounds.


1.7 Key assumptions underlying the Strategic Plan

This strategic plan was compiled taking into consideration the steady revenue income over the last five years,

currently at R365m.

1.8 The Sector Skills Plan

The Sector Skills Plan presents the outlook for skills development in the ICT Sector for the period 2011 and 2016

(details are presented in Annexure A).

2 PURPOSE OF THE STRATEGIC PLAN

The purpose of this strategic plan is to provide direction to achieve specific medium term skills development goals

and targets in the ICT Sector. This document therefore presents:

Ø The skills development priorities that will be targeted within the ICT Sector.

Ø A set of sector specific objectives and goals that will meet sector needs, economic or industrial sector

growth strategies, and meet scarce and critical skills in the sector.

Ø The strategies to address these objectives and goals, which will be measurable.

2.1 Environmental, Technological and Socio Economic Imperatives

2.1.1 Strategic considerations

High Level Skills

Intermediate Level Skills

Entry Level Skills

A

B

C

Socio Economic Imperatives

Economic Imperatives

Technological Imperatives

Co-operation with Universities of Technology. Increased Internships with Isett companies

Co-operation with Universities, R&D Units such as CSIR’s Meraka Institute. Offer bursaries etc

Co-operation with FETs


Notes:

A: Technological imperatives can be achieved through cooperation or partnerships with Universities to address

High Level Skills. This approach allows for high level skills development in Research and Development, etc.

B: Economic imperatives can be achieved through cooperation or partnerships with both Universities of

Technology and participation in internships. These are by far operational skills.

C: Socio Economic imperatives can be achieved through cooperation or partnerships with FET institutions for the

delivery of ICT entry level skills.

The following strategic imperatives were identified through collaboration with stakeholders:

Ø Make sure that this addresses the ICT needs of the country

Ø The skills addressed should be based on company demand

Ø Also address the societal needs

Ø Also address the e-governance issues

Ø Look at professionalising IT practitioners


3 VISION

The Isett Seta seeks to develop South Africa into an ICT knowledge-based society by encouraging more people to

develop skills in this sector as a means of contributing to economic growth.

4 MISSION STATEMENT

The Isett Seta will generate, facilitate and accelerate the processes of skills development for workers at all levels in

the ICT Sector by linking future technology trends with new skills development programs.

5 OBJECTIVES OF THE STRATEGIC PLAN

To facilitate, coordinate and monitor the implementation of skills development initiatives in the ICT Sector.

5.1 OVERALL OBJECTIVES

I. To determine skills development priorities after an analysis of the skills demand and trends; and supply

issues within the sectors.

II. To develop a sector skills plan within the framework of the national skills development strategy.

III. To allocate grants in the prescribed manner to employers, education and training providers and learners.

IV. To promote learning programmes (Learnerships, Internships and Skills Programmes).

V. To assist designated groups, including new entrants to participate in accredited work integrated learning and

work-based programmes.

VI. To support the development of the skills of employees in the Sector.

VII. To strengthen the institutional capacity of the Information Systems (IT), Electronics and Telecommunications

Technologies Seta in order to improve the productivity and quality of services it provides to its stakeholders.

VIII. To promote the development of skills for self-employment (New Venture Creations).


5.1.1 Objectives per Component Linked to Programmes

NO. OBJECTIVE COMPONENT PROGRAMME

I To determine skills development priorities after an analysis of the skills demand and trends; and supply issues within the sectors

Sector Skills Planning Division (SSPD)

Research

II To develop a sector skills plan within the framework of the national skills development strategy

SSPD Sector Induction and Research

III To allocate grants in the prescribed manner to employers, education and training providers and learners

SSPD (Mandatory Grants) and Learning Programmes Division (LDP) (Discretionary Grants)

Receive, analyse and/or approve WSPs and ATRs.

Develop policies and guidelines for the allocation of grants

IV To promote learning programmes (Learnerships, Internships and Skills Programmes)

Marketing and Communication Division

Advocacy, Website and Newsletters

V To assist designated groups, including new entrants to participate in accredited work integrated learning and work-based programmes

LPD Collaboration with Isett stakeholders and learners

Accreditation of Training Providers

VI To support the development of the skills of employees in the Sector

ETQA, SSP and LP Divisions

Develop qualifications, provide grants and quality assurance

VII To strengthen the institutional capacity of the Information Systems (IT), Electronics and Telecommunications Technologies Seta in order to improve the productivity and quality of services it provides to its stakeholders;

Board and CEO Optimise recruitment policies, upskill personnel, implement performance management system

VIII To promote the development of skills for self-employment (New Venture Creations)

LPD and ETQA Support ISOEs


5.1.2 Objectives of the Information Systems (IT), Electronics and Telecommunications Technologies Seta

The general objectives of the Information Systems (IT), Electronics and Telecommunications Technologies Seta are –

Key Strategic Objectives

Performance Measure

Time Frame

(Target date)

Performance Indicator /

Output

Assumptions Risks

Determine skills development priorities after an analysis of the skills demand and trends, and supply issues within the sector

Career Guide delivered to DHET and distributed

End-February each year

Career Guide Credibility of research and information provided

Inadequate sources of information

Develop a sector skills plan within the framework of the national skills development strategy

Approved Sector Skills Plan

31 August each year

SSP document Availability of NSDS and latest version of OFO codes by 31 January each year

Delays in defining the NSDS III targets

Allocate grants in the prescribed manner to employers, education and training providers and workers

Seta Management System

Grants paid quarterly (Mandatory)

75% payout of mandatory grants to all companies with approved WSPs and ATRs by end of March each year

SARS/ DHET Levy contribution uploads available accurately and timeously

Stakeholder not submitting WSPs and ATRs on time

Promote Learning Programmes (Learnerships, Internships and Skills Programmes)

Produced and distributed to all Isett stakeholders

On going Pamphlets, brochures, publications, newsletters, exhibitions, roadshows, career guide and website

None Budgetary constraints

Assisting designated groups, including new entrants to participate in accredited work integrated learning and work-based programmes.

Designated learners participating in learning programmes to be at least 80%

31 March each year

Equitable Learnerships, Internships and Skills Programmes

Workplaces are available to learners

Poor participation of employers

Support the development of employees in the Sector

Workplace skills audits on 10% of participating companies

Sept/Oct of every year

All WSPs and ATRs approved as per strict criteria

Qualifications registered funding made available and the quality assurance

Lack of co-operation from employers


Key Strategic Objectives

Performance Measure

Time Frame

(Target date)

Performance Indicator /

Output

Assumptions Risks

Strengthen the institutional capacity of the Information Systems (IT), Electronics and Telecommunications Technologies Seta in order to improve the productivity and quality of services it provides to its stakeholders

Performance improvement reports and Quarterly PMA reviews

Quarterly Workshops, courses, interventions, audits, mentoring, PMAs

PMAs are in place. Internal and External and audits carried out.

Poor recruitment practices

Promote the development of skills for self-employment (New Venture Creations)

As per agreed NSDS III targets

31 March each year

Learners trained and mentored through ISOEs and Innovation Hubs

ISOEs / ICT Innovation Hubs in place

Scarcity of ICT Innovation Hubs in rural areas

5.2 HUMAN RESOURCES

Refer to Annexure C.

5.2.1 Recruitment Strategy / Employment Equity Plan

The management of Isett Seta commit itself to redress the imbalances of the past by implementing Employment

Equity Principles within the Isett Seta. Refer to Annexure D.


5.3 FINANCIAL RESOURCES

Budget Summary 2011/12 2012/13 2013/14 Income LEVIES RECEIVED 385,000,000.00 411,950,000.00 40,786,500.00 * Admin (10%) 48,125,000.00 51,493,750.00 55,098,312.50 * Discretionary (20%) 96,250,000.00 102,987,500.00 110,196,625.00 * Mandatory (50%) 240,625,000.00 257,468,750.00 275,491,562.50 INTEREST RECEIVED 18,292,453.83 19,572,925.60 20,943,030.39 TOTAL INCOME 403,292,453.83 431,522,925.60 461,729,530.39

Admin expenditure 39,132,107.00 42,206,433.42 45,537,859.43 ADMINISTRATION Admin expenditure 36,818,000.00 39,753,480.00 42,937,728.80 * Internet, website and computer supplies 1,030,000.00 1,091,800.00 1,157,308.00 * Advertising and promotion 1,720,000.00 1,823,200.00 1,932,592.00 * Consultation 4,733,000.00 5,016,980.00 5,317,998.80 * Audit (internal & external) 2,440,000.00 2,586,400.00 2,741,584.00 * Rental - buildings 2,640,000.00 2,798,400.00 2,966,304.00 * Rental - equipment 1,040,000.00 1,102,400.00 1,168,544.00 * Travel and accommodation 950,000.00 1,007,000.00 1,067,420.00 * Payroll 18,160,000.00 19,976,000.00 21,973,600.00 * other 4,105,000.00 4,351,300.00 4,612,378.00 CAPEX budget 2,314,107.00 2,452,953.42 2,600,130.63 Mandatory grants 211,750,000.00 226,572,500.00 242,432,575.00 Programme/Project expenditure 152,410,346.83 162,743,992.18 173,759,095.97 TOTAL EXPENDITURE 403,292,453.83 431,522,925.60 461,729,530.39

Budget Deficit - - -

5.3.1 Assumptions upon which the Budget Is Based

1. The budget is based on mandate that must be performed 1.1 Admin budget does not exceed 10% 1.2 Mandatory grant is based on 50% of Skill Development levies as well as a payout percentage of 88% 2. Assumption on staff establishment 2.1 Budget prepared on the assumption that the Isett Seta remains as an independent seta 3. Assumption for salary increases 3.1. All current staff will remain with Isett Seta, except for the Admin Manager who will retire. It is assumed that this post will be filled.


3.2. No new positions will be created for the new year 3.3. Increases will include an inflation linked component, a performance component and structural adjustments 3.4. The increase for individual staff members will be either 10% or 15% (depending on the salary level) 4. Performance and broad banding level adjustments for all levels 4.1 The budget includes a component of performance bonus. However there are no level adjustment planned for staff 5. Inflation scenarios on income 5.1 The levy income budget for 2011/2012 was based on the income received in 2009/2010 and adding a 7% increase. 6. Inflation of costs 6.1 Inflationary increases was applied to some administration costs (stationery, printing, postage, insurance, bank costs) 7. Assumptions on Government/Levy funding 7.1 The levy income budget for 2011/2012 was based on the income received in 2009/2010 and adding a 7% increase. 8. Equipment replacement strategy 8.1 Computer equipment is replaced every three years. Some of the office equipment and furniture and fittings require replacement as they are past their economic useful life. 9. Confirm whether the estimated budget presented will enable the Seta to implement activities 9.1 The budget presented will enable the seta to implement its activities 10. Cost saving measures 10.1 Admin budget was prepared to be within the 10% legislated requirement. 11. Reprioritisation of resources None

5.3.2 Fixed/Moveable Assets

5.3.2 R '000

Acquisition of fixed assets Computer Hardware: 706 Furniture and Fittings: 300 Office Equipment: 515 Computer Software: 753 Motor Vehicles 40

2,314

5.3.3 Financial Assets

Provide details of proposed acquisition of financial assets or capital transfers and plans for the management of financial assets and liabilities.

Financial assets, which potentially subject the Seta to the risk of non performance by counter parties and thereby subject to credit concentrations of credit risk, consist mainly of cash and cash equivalents, investments and accounts receivable.

The Seta limits its treasury counter-party exposure by only dealing with well-established financial institutions approved by National Treasury. The Seta's exposure is continuously monitored by the Accounting Authority.

Credit risk with respect to levy paying employers is limited due to the nature of the income received. The Seta does not have any material exposure to any individual or counter-party.


The Seta's concentration of credit risk is limited to the industry (Information Systems, Electronics and Telecommunications Technologies) in which the Seta operates. No events occurred in the industry (Information Systems, Electronics and Telecommunications Technologies) during the financial year that may have an impact on the accounts receivable that has not been adequately provided for. The Seta is exposed to a concentration of credit risk, as significant amounts are owed by SARS and the Department.

This concentration of risk is limited as SARS and the Department are government entities with sound reputation.

The Seta manages liquidity risk through proper management of working capital, capital expenditure and actual vs forecasted cash flows and its cash management policy. Adequate reserves and liquid resources are maintained.

Provide summarised table of medium term revenue/expenditure estimates with amounts in R’000:

Item 2011/12 2012/13 2013/14

R'000 R'000 R'000

Revenue (see attached) 403,292 427,490 453,139 Revenue is made up of skills development levy income and interest income

Expenditure (see attached) 403,292 427,490 453,139 Expenditure is made up of admin expenditure, capital expenditure, project expenditure and mandatory grant expenditure

5.4 FINANCIAL RESOURCES OBTAINED FROM DONORS

None.

6 RISK MANAGEMENT Periodic risk management is critical to management, and is an integral part of the Isett Seta wide risk management

process. The Treasury Regulations (TR) requires a periodic risk assessment, whilst the King Report on corporate

governance stipulates that the entity wide risk assessment process should be affected on an annual basis.

Isett Seta has a process of defining a structure to continuously evaluate the risk management process within the

organisation through its management committee and the audit committee. This process will continue to evaluate

risk on a continuous basis.

The last evaluation has resulted in the attached top 10 risks being identified.

The Isett Seta recently undertook a risk assessment exercise. The scope of the risk assessment process included

strategic and operational risk areas.

The risk assessment has enabled the Isett Seta to:

Ø Establish the risk appetite, including the need for qualitative and quantitative guidance at a strategic and

operational level;

Ø Implement a risk management strategy;

Ø Define the criteria to be used for assessment throughout the risk management process including timelines;

measurability and responsibility.

This has allowed the Seta to implement processes which are conducive to establishing a sound risk management

and governance environment within the organization.

The risk management framework is intended to be an ongoing governance process within Isett Seta.


7 Tactical approach to be employed by the Isett Seta in Executing its 5-Year Strategy

With a view on equity requirements, the Isett Seta will utilise the following tactics in the execution of its 5-year

strategy and the delivery of skills to the Isett Seta Sector.

PROCESS FOR ACHIEVING OBJECTIVES Reflect on key processes and strategy to ensure that objectives are met

Ø Policy documents have been developed including process flows

Ø Monthly report submitted to the Board

Ø Quarterly report submitted to the DHET

Ø Verification conducted by Internal Auditors, Auditor-General and DHET on quarterly and annual basis

Reflect on Service Delivery Improvement Programme

Ø Continuous update of policies and processes

Ø Surveys conducted by the Seta

Ø Stakeholder consultation forum

Ø Functional Committee

Provide information of proposed acquisition and expansion of IT Infrastructure

Ø Improved IT infrastructure

Ø Acquired IT equipment

State management approach in providing leadership in ensuring targets are met

Ø Monthly report submitted to the Board

Ø Quarterly report submitted to the DHET

Ø Verification conducted by Internal Auditors, Auditor-General and DHET on quarterly and annual basis

State any specific areas and plans that the Minister/Parliament directed the Seta to report on

Ø Service Level Agreement signed between the Seta and the Minister of DHET

Ø Annual report to parliament


7 References · Annual Training Report (ATR) and Workplace Skills Plan (WSP) data, 2005-2010, captured into the Isett Seta

On-Line System (OGS) by the Isett Sector stakeholders.

· Isett Seta’s 2008 and 2009 SSPs.

· 2010 National ICT Skills Survey, a partnership between Isett Seta, Joburg Centre for Software Engineering (JCSE) and IT Web.

· Polity.org.za, “SA may face unrest over jobs, poverty anger”, 21st June 2010.

· Business Report, June 23, 2010.

· Statssa, Statistical Release P0441, Gross Domestic Product, First Quarter 2010.

· Isett Seta Annual Reports, 2005/6 to 2009/10.

· Statssa, Consumer Price Index, P0141.

· Isett Seta SSP, 2009/2010.

· Framework for the National Skills Development Strategy, 2011/12 – 2015/16, First Draft for Consultation, 29th April 2010.

· Budget Vote Speech, the Communications Minister, National Assembly, 20/04/2010.

· Human Resource Development Strategy of South Africa (HRDSSA) 2010 – 2030, as approved o 18 March 2009.

· Medium Term Strategic Framework, (2004-2014) Minister in the Office of the Presidency: Planning, July 2009.

· Industrial Policy Action Plan, the dti, August 2007.

· Integrated Sustainable Rural Development Strategy (ISRDS), November 2000.

· National Industrial Policy Framework (NIPF), the dti.

· Draft ICT Charter, available at www.ictcharter.org.za, entitled “Draft Economic Empowerment Charter for the ICT Sector”, May 2005.

· “ICT charter again reaches final stages”, IT Web, www.itweb.co.za, 29 March 2010.

· “Accelerated and Shared Growth Initiative for South Africa (AsgiSA), A Summary”, issued by the Office of the Presidency, the Republic of South Africa, http://www.info.gov.za/asgisa/.

· Polity.org.za, “DA: van der Westhuizen: Speech by DA Member of Parliament on Trade and Industry budget vote, National Assembly (04/05/2010)”.

· Polity.org.za, “SA: Nzimande: Address by the Minister of Higher Education and Training, at the inaugural plenary meeting of the Human Resource Development Council, Pretoria (30/03/2010)”.

· Polity.org.za, “Statement by Siphiwe Nyanda, Minister of Communications, on Information and Communication Technologies (26/04/2010)”.

· Annual Reports of the Department of Education, www.education.gov.za, 2004 to 2008.

· HEMIS data from the Department of Higher Education and Training, 2004 to 2009.

· “The ICT Skills Landscape of South Africa: A viewpoint on Demand, Supply and applicable International Benchmarks”, Accenture Research, August 2008.


Appendix 1: ICT Sector SWOT

Strengths · Dynamic/fast moving, at a global level of

expertise/technical capability. · Easy access to deep international skills. · ICT Sector offers careers in the international

space with few limitations. · Availability of 'generalists' who have multiple

capabilities. · Able to provide solutions for, e.g., compliance,

risk management, CRM, globalization of operations, outsourcing operations, crime, corruption, business optimisation.

· Salaries generally are good in comparison to other industries - can attract new entrants.

· Better paid sector than most. · The existing ICT infrastructure in the country is

effective; SA is amongst the world's top twenty countries for Internet connectivity.

· Telkom's backbone, and the ICT capacity in financial institutions, the tertiary education sector, the CSIR, and other former statutory organisations, is very good, particularly in relation to the rest of Africa.

· Recognition by government e.g. large capacity for national job creation, economic development and social upliftment.

· Strategic across all business verticals. · At present a comparative edge in being English

speaking, in the right time zone and with reasonable infrastructure and having a good education system for some.

· English as the country's common language of communication distinct advantage in the international ICT field.

· Innovation, adoption, core skills. · Resilience. · Stable and mature. · Access to info & Best Practice policies. · Little or no scarce raw materials required. · Sets the trend for the new way of working and

company culture (e.g. Google) · ICT is essential to all other growth.

Weaknesses · Incompetent practitioners entering the profession with worthless degrees. · The lack of a clear avenue for non-graduates to get study opportunities in the fields

in which they practice. · Technical resources often have a lack of general ICT industry knowledge. · Insufficient skills available especially in senior positions. · There are not always sufficient skills available in respect of latest technologies and

we end up having to train staff internally to fulfil skills requirements and sometimes it is the very same people being trained all the time because they have the knowledge and aptitude to be trained in the latest high end technologies

· Individuals find it difficult to keep up with changes in the industry as they are so frequent and work demands do not allow for time off for extensive training.

· Not all qualifications are obtainable locally. · Not participating in the R&D space and a higher level skills plan. · Costs of skilling individuals in response to the constant changes/ developments in

the ICT. · Lack of software development. · Lack of professionalism. · Individuals work under extreme, extended periods of pressure due to the critical

role of technology in organisations. · The decline in interest in ICT as a career. · Insufficient marketing of its importance and relevance. · Too much domination by a few Entities. · Fragmentation of industry. · Lack of ownership [of the whole ICT Sector]. · Industry not geared to accommodate sufficient number of graduates or undergrad

students into the field as experience is often a requirement. · The local ICT industry is small and has to operate without economies of scale. · Open to security risks. Because of these security risks, the industry is being put

under pressure to elevate its standards rapidly. · More competition than in other industries. · ISETT SETA has a CV database for organisations to recruit from. This database is

not updated when individuals are placed resulting in recruiters spending unnecessary time in contacting people on the database who are already placed elsewhere.

· Historical baggage in many forms (management, bureaucracy, policy) hampers the rapid establishment of information-based businesses.

· South Africa has a poor record of technology transfer from multinationals to local operations, and from universities to industry.

· South Africa is weak internationally in influencing global ICT policy and international standards, and is not competitive in translating international trends into 'on-the ground' roll-out.

Opportunities · Potential for continued growth. · Challenging work opportunities. · Scalability – global expansion. · Big market for broadband services. · Data continues to grow at a phenomenal rate. · Increase in storage capacity. · Faster and cheaper access of data and

distribution of data. · IT has become an enabler in the increasing of

productivity. · Government is driving an accelerated rollout of

telecommunications infrastructure. · Several initiatives are under way to leverage

public service delivery through ICTs. · International springboard into Africa. · High growth industry attracts young talent. · Continuing upgrade of infrastructure to meet the

needs on broadband. · Convergence of networks, devices and mobile

communications. · Given a global economic recovery, the demand

for ICT staff will far outstrip the supply. · Automation in both energy creation and energy

saving. · Mobile applications, web applications, cloud

computing, hosting services, Africa, digital broadcasting, e-Government, e-governance.

· Off shoring whereby services will be moved to geographic areas such as South Africa.

· Decreasing cost of connectivity to South Africa.

Threats · Difficult to attract more students at tertiary level. · Uncompetitive. · Lack of bandwidth. · Lack of Technical infrastructure - large areas of the country still have minimal ICT

infrastructure. · High cost of telecommunications. · Lack of effective marketing. · The exceedingly poor education system available to the vast majority of young

people. · Lack of equipment at schools and issues of security / maintenance around

equipment. · Infrastructure (schools and universities). · The literacy and educational base in the country is very weak and skewed. · The demand for competent ICT staff will outstrip the supply. · Lack of sufficient skilled individuals (in particular new graduates and doctorates). · Lacking in skills development of our workforce. · Imbalance between theory and practice. · Lack of Technical Training Providers. · Cost of skills. · Lack of information available to scholars and students. · No national ICT strategy - proliferation of uncoordinated projects. · Silo approach by government. · Incompetence in the execution of contracts. · Lack of consolidated policy. · Inadequate incentives for international investors. · Lack of implementation of policy. · The government suffers from many problems which manifest themselves in poor

service delivery, and this also extends to public service ICT roll-out. · Dependency on international markets - pressure on spend on ICT in SA. · Competition from Eastern Europe and BRIC countries.


· Improved connectivity from Africa to the rest of the world.

· The growing Transport, Utilities, Public Sector and Health industry.

· High end consulting services and information mining.

· Greater collaboration with COHE to provide pipelines into ICT Sector.

· Government demand. · Growth market globally. · ICT is an enabler for all other industries to grow. · Software developments. · ICT companies increasingly becoming green

(and helping others to do so too). · Opportunities to identify and develop entry level

skills.

· High staff turnover (global opportunities as well as local poaching of staff). · Limited cross-sectoral co-operation despite increased merging of technologies. · Elitist view that it is the "clever" people working in the ICT industry could

discourage potential new entrants to the sector. · Global recession. Economic recovery taking longer than expected. · Saturation of mobile services. · Competitiveness in a global market will place the local companies under pressure,

which could lead to cost cuts that would impact ICT send as well. · Organisations will require more services, at stringent service levels but at a lower

cost which will translate to lower margins for the industry and less growth. · Inability to optimise ICT services - provide more and business aligned services at

lower costs · Downward pressure on resource price. · Cost of electricity. · Power supply is erratic. · Employment on a “scorecard” basis will reduce international competitiveness. · Unionisation forcing salaries above the equilibrium point at market level. · Unemployment. · Budget deficit – likely to result in less spending on development in the future. · Crime. · Emigration of high level skills. · Silicon is a scarce resource used in the manufacture of computer components. · Fast paced technological improvement requires continuous update of skills. · Lack of availability of specialist skills, resulting in South African organisations

needing to spend more on sending candidates abroad for training · The current network infrastructure and capacity will not be able to cope with the

demand, as more people are using mobile phones and other devices over the internet.

· Remuneration explosion. · Lack of collaboration between business, labour and education. · No real change in ICT management still predominantly white male controlled. · Highly competitive field. · Volatile market – constant changes mean people need to be very change-resilient. · The drop in data prices. · Interconnect fee regulation by ICASA. · Salaries, living conditions overseas will be better.


Appendix 2: Assessment of Formal Education Institutions School Graduates

· Our most valid experience is not as employer, but from the Computer Olympiad. Based on the results of more than 100,000 aptitude tests over the last four years, we cannot but condemn the school education system in the strongest terms. While a small percentage of schools deliver education that equals the best in the world, the vast majority of learners are condemned to receive inferior education and become a permanent underclass.

· Poor Mathematics, English literacy, basic computer skills (including typing), life and workplace skills. Minimal computer literacy skills. · Lacking of technical and practical application of their knowledge. · Lack of corporate awareness and business etiquette and basic communication skills. · Lack of good communication skills (written & verbal). · Current curricula do not place enough emphasis on “life skills” training. · There is a false expectation of what working entails. · Marks are poor, particularly in maths and science. We offer bursaries to students getting a 75% aggregate and it’s extremely hard to find

candidates who qualify. · Manners and etiquette are poor – cell phone text language, time keeping, appearance, etc. · Lack of enthusiasm. Parents often apply instead of the school leavers themselves. · English is poor and not of a business standard. This applies to a broad spectrum, including the more “advantaged” schools. · No attention to detail - covering letters are very poor generally. · Lack of experience and business acumen. · Lack of understanding of the ICT sector. · No driver’s license, which is an inherent requirements in our specific environment. · Unresponsive or rather outdated ICT Curriculum! Too long timeframe to change curriculum to new ICT technologies. · Learners - maths and science (logic skills) are not up to standard. This also impacts they way they think about other things (holistic

impact). · Most Matric graduates were very immature and not ready for the job market. Those who have been employed trained for at least a year

and were mentored for the same period before they became acceptably productive. · Language barriers.

College

· Proper balance between theoretical and practical experience. Communications skills. · From an ICT point of view, too few quality practitioners are delivered by colleges in the government sector. · Lack of technical and practical application of their knowledge. · Lack of corporate awareness and business etiquette and basic communication skills. · They receive just surface training - they have a basic understanding which does not give enough depth. The result is that they need

workplace intensive coaching/mentoring to do their basic job. · Only reputable accredited private college graduates are equipped for the job. Public college graduates failed in most requirements of the

job market. · Limited business acumen. · Poor English literacy, Mathematics, Basic Computer skills (including typing). · Lack of maths and science knowledge. · The training is not comprehensive and does not provide graduates with the necessary competencies to be employable / job ready. · Most candidates don’t have a passion for ICT; they look at it as an opportunity to get employment. Most colleges offer “crash courses”

which focus mainly on the theory and very little on technical side. The courses must include some of the business skills required for example, customer interaction, service levels, etc.

· We interviewed graduates from specific faculties and they were good, no real lack in any area. SQL could be more of a focus in the curriculum.

· Short-comings are their lack of life skills, interpersonal skills and hands-on technical experience not able to apply the theoretical knowledge in the workplace.

· More practical hands on experience is required before entering the workplace. · We have had many applicants only possessing a qualification, mainly N+ and A+ without any experience and it makes it difficult to employ

as we prefer at least 1 years’ experience. We have channelled promising applications though our learnership programme to provide them with the necessary work experience.

University of Technology

· Lack understanding of the role of technology in business and of the steps to develop a career. · Proper balance between theoretical and practical experience. Communications skills. · Lacking of technical and practical application of their knowledge · Lack of corporate awareness and business etiquette and basic communication skills · None that were obvious – we interviewed graduates from specific faculties and they were good with no real lack in any area. SQL could be

more of a focus in the curriculum. · A few of the CTI grads interviewed were successful in being placed and have gone on to be successful in the position. · The Technikons seem to offer more practical work than the Universities, which is advantageous. · Short-comings are their lack of life skills, interpersonal skills and hands-on technical experience not able to apply the theoretical

knowledge in the workplace · Transfer of theory into practical experience and understanding. · We have only employed a few over the last year in the software development division and they became quickly productive · These graduates were much more productive as they have a formal ICT qualification and most seems to have a passion and a clear set of

goals in what they would like to achieve over a certain period. They progress much faster and adapt to changes quite easily. · Poor English literacy, Mathematics, Basic Computer skills (including typing). · Business acumen. · Knowledge of in-house products. · Training of graduates is not customised to different needs of ICT industry or certified in one or another software package (i.e. Microsoft,

Cisco).


· They receive more knowledge & practical & theory. The problem is that this is a very wide range (generic). The programmes at Technikon are not structured enough. They are not a specialist - still a gap - they end up doing menial tasks.

· Communicating effectively in English. · Limited business acumen.

University

· Lack understanding of the role of technology in business and of the steps to develop a career. · Proper balance between theoretical and practical experience. Communications skills. · Our experience is not as employers of university graduates, but rather with graduates as competitors in competitions that simulate

business tasks. Here the difference between the demonstrated competence of students from the established universities and the rural universities is alarming. While the level of degrees issued by some of our universities is world-class, one must question whether the degrees from other universities have any value at all. In other words, there is a disconcerting lack of aptitude, even at graduate level, apparently not evaluated during education process.

· Lacking of technical and practical application of their knowledge. · Lack of corporate awareness and business etiquette and basic communication skills. · We interviewed graduates from specific faculties and they were good with no real lack in any area. SQL could be more of a focus in the

curriculum. Seems to still be a focus on VB when this is not used as much anymore. · On a personal level there is a feeling of entitlement. Some of that is due to the Generation Y phenomenon and some is around unrealistic

expectations. · Lack of enthusiasm. · No concept on how to prepare for an interview. · Unlike the college or Technikon students, that do have some kind of practical experience, the university students perform worse in an

interview process due to the lack of work experience. · Lack of life skills, interpersonal skills and hands-on technical experience not able to apply the theoretical knowledge in the workplace. · Lack of hands on, practical experience, not being able to translate theory into practice. · These graduates were much more productive as they have a formal ICT qualification and most seem to have a passion and a clear set of

goals in what they would like to achieve over a certain period. They progress much faster and adapt to changes quite easily. · Training of graduates is not customised to different needs of ICT industry or certified in one or another software package (i.e. Microsoft,

Cisco). · Wide spectrum theoretical knowledge - this does facilitate easier learning in the workplace. But there is hardly any practical work.

Candidates do not know where their strengths lie and therefore don't know which area to specialise in. · Communicating effectively in English. · Lack of workplace experience/learning. · Unrealistic growth and promotion expectancy. · Limited business acumen. · More theoretical knowledge than skills that can translate into performance. · Poor English literacy, Mathematics, Basic Computer skills (including typing). · Business acumen. · Knowledge of in-house products.

ICT Skills Supply Issues

ICT Skills Supply Issues Comments SQL SQL skills in demand C# This is required rather than C++ CISCO Skills Due to the cost of training not always taken 3G Not offered by all Institutions Networking engineers Thorough understanding of WAN VOIP engineers Understanding and implementing the convergence of voice, data, networks,

devices Broadband engineers Understanding and implementing the convergence of voice, data, networks,

devices. New technologies BTech degree min./ BSC Elec. / Elec Eng LC New technologies always needs new skills We cannot keep up with client demand - new and old technologies Teacher education Maths and Science Quantity The education system is not delivering enough matriculants with mathematical

skills to satisfy the need for ICT, Engineering, etc. Access to ICTs in schools Standard skills framework Quality Already the quality of some qualifications is questionable. This is likely to

become worse. Attracting school leavers into ICT as a study path / Ensuring that school leavers consider ICT as a career

This will help to create a bigger supply of ICT skills in the market

Attracting graduates to undertake postgraduate MSc and PhD studies

Universities have to compete with industry offers

Internationally recognised qualifications Since we are a global organisation, employees may be required to assist our customers in alignment with international standards

Lack of business knowledge to provide appropriate services Must focus on service delivery, methodology, business skills and industry knowledge as well to ensure well-rounded candidates in the market.

Workplace exposure Encourage companies to participate in allowing workplace ventures. Seta could possibly incentivise programmes like this.

Highly qualified EE candidates eg: Architects and Engineers Training Institutions and Colleges need to take greater responsibility in facilitating the above - the right fit etc.


ICT Skills Supply Issues Comments Specialised skills still in short supply Volatility of the market means that new and specialised skills are required all

the time Specialised skills in equity individuals Equity individuals are still in short supply; especially females and disabled

individuals The inclusion of ICT in the Ministry of Communications does ICT industry a disservice.

Create a separate Ministry of ICT

ICT Skills Demand Issues

ICT Skills Demand Issues Comments IP Skills We have experienced a shortages in skills in the following areas:

VM Ware AppleMac Data centres CCIE qualification Need to promote this qualification more. Especially EE candidates within the

ITC sector. E-waste recycling Trained operators to be employed in the e-waste recycling industry New technologies always needs new skills Not sure we always have quick enough adoption of technology from training

perspective Accurate labour market information Analysis of trends to ensure relevance of curricula Older technologies are still utilised by clients No one wants to work with old technologies - training vendors do not offer

these courses anymore, they seldom get enough demand to fill a class. Ability to find skilled technical resources in South Africa Communications skills (Networking & Unified Communications) Increased business to business functions, and worker efficiency Application integration in the Cloud Computing space Legacy is too expensive - companies will have to leverage the cloud Application consolidation Simplify and reduce the number of duplicate functions that exist to optimise

costs Specialised Technical Skills There is always a need for specialist technical skills e.g. security, DR,

Information Security etc Project resources There is always a demand for project administrators, coordinators and

managers who have worked on ICT projects. Need for pricing (costs of resources) skills Customer need to improve ICT within confines of environment Need to ensure alignment with SA infrastructure Access to strong mentors Community projects? Access to equipment/pc’s/licenses Microsoft sponsorship/company sponsorship for equipment Structured skills development Training must be structured to assure job competence Trainability ECD and basic schooling determine the quality of all further learning and are

the basis for the employability and adaptability of the future workforce, which emphasises the complementarities between basic education and skills development. While the skills development system cannot fix the quality of basic education, it must deal with the poor quality outcomes from this system.

Alignment and collaboration between education and business Re-establish commitment to align the NSDS and strengthen business partnerships, with FET Colleges

Current global economic situation means fewer jobs for new entrants

Retrenchments mean that there is a current glut of skilled and experienced talent – new entrants will find it more difficult to enter the workplace

Sales The need for people who can sell efficiently face to face and over the phone Service The need for people to have a technical inclination to also have customer

service delivery soft skills Support The need for specialised qualifications in IT, Marketing and Human Resources Create Incubation Centres supported by Universities and ICT industry


Appendix 3: Sectoral Economic Scenario The most important (economic or otherwise) factors having a positive impact on the employment of ICT skills over the next five years

Positive Economic Growth Factors Reason · Global demand for innovative use

of technology · Provides growth opportunities for SA vendors

· Shift to knowledge-based economies

· Reliance on “traditional” industries and methods will inhibit growth

· Need to reduce carbon emissions/energy consumption

· This means more working across the network, more home-based occupations, less travel

· Foreign investment · Job creation · Broadband · Job and business opportunity creation · Globalization · Job and business opportunity creation · Off shoring to South Africa · Job opportunities in Service Desk will increase · Reduced cost of network

bandwidth · No longer too expensive to integrate environments locally and internationally

· SA emerging economy · Introduce new skills in the emerging market. · Use of Cloud based services · No longer need to establish your own - pay for use models are more effective. · Education · Educating children from pre-school level onwards to have a bias for ICT & E is

vital. · Politics · From the highest level of government the message must be clear that the ICT

& E sector is aspirational and attainable. · Outsourcing model · SA could be the next India and offer excellent outsourcing (or other) services

on a global basis. Training and customer service skills could be vital. Manufacturing and assembly also possible, as well as software development.

· Global access · Entities like i.e. Microsoft, Dell etc. now have their courses online giving access more easily.

· Economic growth · Acquisition of business resulting in job creation. · Increased demand for ICT goods and services.

· Sector development · Diversification of the ICT Sector allows for more opportunities for development within the sector.

· More use of mobility (Cell phones and other mobile devices)

· The mobile device is the communication tool of the future.

· More companies are embracing IT as a strategic service to develop organisations

· ICT was previously looked at a measuring tool and a collection of Data. Today more and more organisations are turning this data into Information to make strategic business decisions and plan accordingly.

· A stable economy with new opportunities in the Government and Privates sector.

· A favourable social and economic environment has to be created to achieve growth. If we can address some of the social issues then we will achieve the desired results.

· Innovation · Increased demand for ICT goods and services. · Opportunity to earn big money · Specialised Skills in demand. · Government · Legislation for equal access to education and training and to make it affordable · Global recession lifting · More money available, more jobs, more development opportunities · ICT is an enabler · Improved ways of working, productivity increases; all businesses need us · More global trade agreements · More trade agreements between countries means that opportunities for import

and export, all making use of ICT services · Unemployment - The high number

of vacancies (ICT) in Government · The high rate of employment, even for graduates, is an indicator of

inappropriate training. · Growth · The relative good growth of he SA economy has not translated into better job

opportunities despite the high levels of Vacancies.

The most important (economic or otherwise) factors having a negative impact on the employment of ICT skills over the next five years

Negative Economic Growth Factors Reason · Continued global recession

reducing investment in technology · Governments and companies will take short view of economic survival instead

of long view of essential investment in future skills. · Job losses will not be recovered overnight.

· Failure of government and industry to consolidate and coordinate activities

· Continued fragmented approach to the development and use of ICTs in South Africa will stifle innovation, restrict growth and waste essential resources.

· Corruption leading to sub-standard and failed implementation of technology

· Waste of time, effort and money through not effectively implementing technology where and when needed to improve service delivery.

· Suitably trained employees · Incorrect skills training. · Literacy levels · Self-explanatory.


Negative Economic Growth Factors Reason · Crime & Unemployment levels

rising · Self-explanatory.

· Labour broking challenge (Perm vs. contractor)

· The ICT Sector is using Labour Brokers extensively and some ICT professionals prefer to market their skills through Brokers.

· Cost of specialist technical resources too high

· Few good technical resources is pushing their costs to unaffordable levels / will then have to use more junior resources.

· Eskom · Electricity is lifeblood of IT – inflated operating costs impact on bottom line and scare off investors.

· Unstable politics · Current issues making many people nervous. · Socio-economic impact · Low income group unable to access higher education and training from a cost

point of view. Unemployment due to increasing costs of the IT related qualifications, underprivileged communities would not have access to gaining these skills.

· Union Activity · Increasing trade unions drives for collective bargaining within the industry can become costly and lead to industrial action.

· Budget cuts · Corruption and mismanagement

of funds, especially in Government.

· Skilled persons emigrating. · Due to better social and economic conditions in other countries, skilled person are looking into furthering there careers elsewhere.

· Too many strikes and an unrealistic labour demands.

· To achieve a certain level of growth and develop ICT skills, we need to be competitive. Unrealistic salary and wage demands hamper investment and progress.

· Exponential salary demands · Scarce skills / supply & demand. · EE representation · Knowledge & awareness of careers in IT. · Cost of transportation · Housing · Schooling · Political unrest · Priorities might shift to security and safety more than development · Africa socio-economic factors · Feeding and health provision priority – less focus on development · Skills Shortage · · Financial crisis · Should stimulate need for productivity - IT can facilitate this


Appendix 4: Synopsis of the HRDSSA II MTSF FIVE-YEAR MEDIUM-TERM STRATEGIC FRAMEWORK: STRATEGIC PRIORITIES ONE TO EIGHT, WITH INDICATORS AND BROAD FIVE-YEAR TARGETS

Suggested Primary Responsibility

Suggested Isett Seta Contribution

COMMITMENT ONE: We will urgently overcome the shortages in the supply of people with the priority skills needed for the successful implementation of current strategies to achieve accelerated economic growth: Strategic Priority 1.1: To accelerate training output in the priority areas of design, engineering and artisanship that is critical to the manufacturing, construction and cultural industries.

Merseta, Ceta Learning Programmes in the Electronics Sector. Pivotal and non-Pivotal.

Strategic Priority 1.2: To increase the number of skilled personnel in the priority areas of design, engineering, artisans that are critical to manufacturing, construction and cultural activities through net immigration.

Merseta, Ceta, Business, DoHA

N/A

Strategic Priority 1.3: To accelerate the number of new training graduates in priority economic sectors identified in ASGISA, the NIPF and IPAP.

NSA/NSF Learning Programmes, influenced by the top 17 scarce skills, with unemployed College, University and University of Technology drop-outs, and with at least 70% employment in the Isett Sector (Pivotal).

COMMITMENT TWO: We will increase the number of appropriately skilled people to meet the demands of our current and emerging economic and social development priorities: Strategic Priority 2.1: To ensure that skills development planning is credible, integrated, coordinated and responsive to social and economic demands.

Learning Programmes for the employed and unemployed as indicated by Scarce and Critical Skills inputs.

Strategic Priority 2.2: To ensure that skills development programmes are demand-led through substantive and systematic input from employers in the determination of skills demands for the country.

· Business · QCTO

1. Learning Programmes as indicated by Scarce and Critical Skills inputs from company stakeholders.

2. Assist QCTO with learnership/qualification development.

Strategic Priority 2.3: To improve the employment outcomes of post-school education and training programmes.

NSA/NSF Learning Programmes, influenced by the top 17 scarce skills, with unemployed College, University and University of Technology drop-outs, and with at least 70% employment in the Isett Sector (Pivotal).

Strategic Priority 2.4: To ensure that FET and HET are responsive to the skills demands arising from South Africa’s social and economic development imperatives.

DHET Inform FET and HET institutions of skills demands via Career Guide. Support to HET institutions through Train-the-Trainer. Support to rural FET and HET institution learners via sponsorship of EUC learning programmes (will assist to develop the ICT Sector resulting in job creation (hard to measure)). Learning Programmes, influenced by the top 17 scarce skills, with unemployed College, University and University of Technology drop-outs, and with at least 70% employment in the Isett Sector (Pivotal).




COMMITMENT THREE: We will ensure improved universal access to quality basic education and schooling (up to Grade 12) that is purposefully focused on achieving a dramatic improvement in education outcomes for the poor; that is focused on equipping learners with optimal capacity for good citizenship; and pursuing post-school vocational education and training or employment. Strategic Priority 3.1: To ensure equity in education inputs and learning outcomes.

DBE N/A

Strategic Priority 3.2: To ensure that education outcomes promote values which are consistent with good citizenship and the provisions of the South African Constitution.

DBE N/A

Strategic Priority 3.3: To improve learner performance and quality of education in the schooling system.

DBE · Support to FET institutions through Train-the-Trainer. · Support to rural FET institution learners via sponsorship of EUC learning

programmes (will assist to develop the ICT Sector resulting in job creation).


Strategic Priority 3.4: To expand age-appropriate participation in early childhood education.

DBE N/A

Strategic Priority 3.5: To improve the percentage pass rate in Grade 12 and ensure that the profile of passes is commensurate with the country’s social and economic imperatives.

DBE The Isett Seta will partner with DHET’s Foundation Programme tin the way of Pivotal programmes to assist potential tertiary institution entrants who require additional assistance with maths and science.

Strategic Priority 3.6: To ensure that all learners, especially the poor, have access to basic health-promoting interventions that are aimed at removing barriers to learning.

DBE, DoH&W N/A

COMMITMENT FOUR: We will urgently implement skills development programmes that are purposefully aimed at equipping recipients/citizens with requisite skills to overcome related scourges of poverty and unemployment. Strategic Priority 4.1: To ensure that unemployed adults, especially women, have access to skills development programmes which are explicitly designed to promote employment and income-promoting outcomes.

NSA/NSF · Support to rural FET and HET institution learners via sponsorship of EUC learning programmes (will assist to develop the ICT Sector resulting in job creation).

Strategic Priority 4.2: To ensure that all unemployed adults have access to training opportunities in literacy and ABET.

NSF, Setas · Support to rural FET and HET institution learners via sponsorship of EUC learning programmes (will assist to develop the ICT Sector resulting in job creation).

Strategic Priority 4.3: To accelerate the participation and graduation rates in FET and HET of learners coming from poor families or households.

NSF, Setas · Support to FET and HET institutions through Train-the-Trainer. · Support to rural FET and HET institution learners via sponsorship of EUC

learning programmes (will assist to develop the ICT Sector resulting in job creation).





COMMITMENT FIVE: We will ensure that young people have access to education and training that enhances opportunities and increases their chances of success in further vocational training and sustainable employment: Strategic Priority 5.1: To accelerate the implementation of training programmes for the youth which are focused on employment creation.

NSF, Setas · Support to rural FET and HET institution learners via sponsorship of EUC and other ICT learning programmes (will assist to develop the ICT Sector resulting in job creation).

Strategic Priority 5.2: To leverage public and private sector programmes to create employment opportunities and work experience for new entrants into the labour market.

NSF, Setas · Support to rural FET and HET institution learners via sponsorship of EUC learning programmes (will assist to develop the ICT Sector resulting in job creation).

Strategic Priority 5.3: To improve the coverage and efficacy of vocational guidance and labour market information in a manner that promotes the optimal uptake of training and employment opportunities available to the youth.

DoL, DHET · Inform FET and HET institutions and learners of skills demands via Career Guide.

COMMITMENT SIX: We will improve the technological and innovation capability and outcomes within the public and private sectors to enhance our competitiveness in the global economy and to meet our human development priorities: Strategic Priority 6.1: To increase the number of skilled personnel in areas of science, engineering and technology.

DBE, DHET · Support to FET and HET institutions through Train-the-Trainer. · Support to rural FET and HET institution learners via sponsorship of EUC

learning programmes (will assist to develop the ICT Sector resulting in job creation).


Strategic Priority 6.2: To improve South Africa’s performance in areas of teaching, research, innovation and the commercial application of high-level science, engineering and technology knowledge.

Incubators, Universities, DHET, existing ISOEs

· Encourage development of more ISOEs. · Sponsor 3- to 5-year new ventures and incubators/ISOEs.

COMMITMENT SEVEN: We will ensure that the public sector has the capability to meet the strategic priorities of the South African Developmental State: Strategic Priority 7.1: To improve the credibility and impact of training in the public sector by improving service delivery.

PSeta, Government · Sponsorship of EUC learning programmes in government. · Sponsor ICT Learnerships for ICT technical people in government, in

partnership with PSETA. Strategic Priority 7.2: To leverage the SETAs to contribute optimally to capacity development in the public sector.

PSeta, Government · Sponsorship of EUC learning programmes in government. · Sponsor ICT Learnerships for ICT technical people in government, in

partnership with PSETA. COMMITMENT EIGHT: We will establish effective and efficient planning capabilities in the relevant departments and entities for the successful implementation of the HRD-SA: Strategic Priority 8.1: To improve the credibility, validity, utility and integrity of the various data and management information systems which are vital for successful planning and implementation of the HRD-SA.

GCIS, DHET supported by Setas, Stats SA, HSRC, SARB

· Maintain a strong SMS.


Appendix 5: MEDIUM TERM STRATEGIC FRAMEWORK A FRAMEWORK TO GUIDE GOVERNMENT’S PROGRAMME IN THE ELECTORAL MANDATE PERIOD (2009 – 2014)

Main Points for Isett Consideration

STRATEGIC PRIORITIES AND PROGRAMMES Suggested Isett Seta Contribution 36 Strategic Priority 1: Speeding up growth and transforming the economy to create decent work and sustainable livelihoods. · In the medium-term, however, growth should come more from industries that can competitively meet the needs of South Africa and the region, and to some extent that

can compete in the global market. The lead sectors already identified are automobile, chemical, metal fabrication, tourism, clothing and textiles as well as forestry. In addition, attention will also be paid to services, light manufacturing and construction, among others. Focus areas will also include agriculture; public services like health and education; private services such as the financial and other business services; food processing; plastics production; the wood value chain and targeted consumer products which might include, for example, consumer electronics. It is also strategically important to promote domestic production of capital and intermediate goods

· The push for expanding decent work must include an integrated rural development and agrarian reform strategy that addresses the mass joblessness and poverty of the former bantustan regions, while seeking to improve conditions for farm workers.

· To ensure longer-run growth, government must refine and scale up implementation of its Industrial Action Plan to support broad-based industrialisation including more advanced manufacturing, as well as encouraging cleaner, lower-energy technologies and green jobs.

In this regard elements of strategy will focus on the following: 36.1 Promoting the creation of decent employment, economic growth, broad-based industrialisation, reduced income inequality and other developmental imperatives and maintaining a stable pro-employment macroeconomic environment. This will be achieved by: · Prompt implementation of BEE charters and codes · Encourage stakeholders to continue with skills development utilising the

discretionary funds. 36.2 Implementing trade and industrial policy to create decent work on a large scale, broadening the country’s industrial base and deal with the re-emerging balance of payment constraint. The target is to create more, sustainable and decent work opportunities, increased domestic production for local and regional markets and increase the ratio of exports to GDP by 2014. The emphasis will be on: · Focusing on the development and utilisation of information and communications

technology (ICT) as a critical driver of development, in terms of infrastructure development, its contribution to manufacturing, and as a platform for transmission and processing of information

· The Isett Seta will promote learning programmes on a national basis to FETs and rural educational institutions, which will have the long-term effect of making our population more ICT literate, providing them with better access to the world of the Internet and to job and new venture opportunities.

· The Isett Seta will look at the possibility of encouraging people to enter new ventures with a view on lower-energy technologies and green jobs, for example training of installers of solar powered equipment.

36.3 Undertake interventions for creating a more inclusive economy, by expanding opportunities for the poor to access the labour market and broadening the impact of growth and ensuring its benefits reach all sectors of society particularly the poor and marginalised. · Intensify the implementation of the National Youth Service · The Isett Seta will partner with the National Youth Service · The employment focus in industrial policy needs to address issues of market

access and the spread of power and benefits in existing and new value chains, to enable greater SME participation and employment creation

· The Isett Seta will promote learning programmes (including New Venture Creation) to FETs and rural educational institutions, which will have the long-term effect of making our population more ICT literate, providing them with better access to the world of the Internet and to job and new venture opportunities.


STRATEGIC PRIORITIES AND PROGRAMMES Suggested Isett Seta Contribution · Skills development programmes should also emphasise the acquisition of artisan

skills and self-employment. · As above.

36.4 Strengthening competitiveness and promotion of Small and Medium-sized enterprises (SMEs) and co-operatives. We will drive an effort to partner with the private sector to provide dedicated services and skills training to small, micro- and collective enterprises, reduce the regulatory burden on small business and co-operatives and leverage state procurement, with concrete targets, to support the growth and sustainability of SMEs. This may require a review of relevant preferential procurement legal and regulatory instruments. 36.5 Ensuring the country keeps up with global technological trends and fully exploits our comparative advantages, including usage of ICTs. Recognising that science and technological innovation and development are important sources of industrial competitiveness and sustaining growth, government will: · Build on the range of strategies and support programmes already supporting

innovation in firms, and R&D in the private and public sectors. In particular measures will be put in place to support innovation and technological development in biotechnology and pharmaceuticals, space science and technology, alternative energy technologies and address challenges and opportunities presented by climate change

· Work with incubators such as Bandwidth Barn, SmartXchange and JCSE. · Sponsor 3- to 5-year new ventures and incubators/ISOEs. · Partner with HETs and employers to sponsor Masters and Doctorate learners

through bursaries.

· Accelerate the socio-economic development of South Africa by increasing access to as well as uptake and usage of ICTs through partnerships with business and civil society. This will entail creating a favourable ICT environment including through digital migration and the industrial possibilities that it presents (such as the set-top-box manufacturing), and ensure a competitive market in domestic and international bandwidth

· Support SMEs through learning programmes and new venture creation. · Train installers and maintainers. · Set up co-ops.

· In the long-term the quality of our skills and human resource base are vital to the success of our innovation and research and development objectives. This means ensuring that our educational system produces quality outcomes particularly in regard to the rate of high school passes in Mathematics and Science, the number of university graduates in Science, Engineering and Technology fields and in advanced research.

· Partner with FETs and HETs with regards to internships and learnerships.

37 Strategic Priority 2: Massive programme to build economic and social Infrastructure. In the period ahead government will continue with the infrastructure investment programme aimed at expanding and improving information and communications infrastructure to increase access, quality and reliability of public services and to support economic activities while also considering environmental sustainability and pursuing maximum employment impact. 37.4 Continuing to ensure the development of robust, reliable, affordable and secure ICT infrastructure that supports and enables the provision of multiplicity of applications and services to meet the needs of the country and its people

· Sponsor learning programmes including End-User Certificate/Call Centre learnership

· Address the top 17 scarce skills. 37.12 Improving provincial and local government capacity to plan for and maintain infrastructure to ensure continued efficient delivery of economic and social services.

· Provide information to the provincial governments and skills development fora.

38 Strategic Priority 3: Comprehensive rural development strategy linked to land and agrarian reform and food security. The elements of the strategy will include:


STRATEGIC PRIORITIES AND PROGRAMMES Suggested Isett Seta Contribution 38.9 Institutional capacity development: government recognises the need for an integrated approach that emphasises co-ordinating the various sector initiatives. A regional development approach with rural, urban and general anti-poverty strategies as its elements will be adopted. Achieving better development outcomes in rural areas will require improved alignment of the efforts of rural local government, national and provincial departments and other public agencies.

· Provide information to the provincial governments and skills development fora.

· Conduct learning programmes in rural communities.

39 Strategic Priority 4: Strengthen the skills and human resource base. The elements of strategy include: 39.4 Within the next two years provide adequate basic services such as water, sanitation and electricity to schools; and progressively improve access to facilities such as libraries, classrooms and laboratories. · Measures will be taken to ensure a progressive realisation of the goal to ensure

each school has access to information and communication technology infrastructure and services

· Partner with DBE and DHET for train-the-trainer learning programmes.

39.9 Ensuring that training and skills development initiatives in the country respond to the requirements of the economy, rural development challenges and social integration. The main aim would be to increase the number of skilled personnel in the priority skills areas such as design, engineering and artisanship categories that are critical to manufacturing, construction, cultural activities and other priority economic sectors identified in the NIPF. Additionally skills development programmes will be implemented, purposefully aimed at equipping the unemployed and vulnerable with requisite skills to overcome poverty and unemployment. · The FET sector with its 50 colleges and 160 campuses nationally will be the

primary site for skills development training. · Support to FET institutions through Train-the-Trainer. · Support to rural FET institution learners via sponsorship of EUC learning

programmes (will assist to develop the ICT Sector resulting in job creation). · Learning Programmes, influenced by the top 17 scarce skills, with

unemployed College, University and University of Technology drop-outs, and with at least 70% employment in the Isett Sector (Pivotal).

· Through a comprehensive suite of programmes and measures to make learning environments more attractive, FET will play a significant role in providing second chance education for those who do not make it in the 12th year programme of education

· The Isett Seta will partner with DHET’s Foundation Programme tin the way of Pivotal programmes to assist potential tertiary institution entrants who require additional assistance.

· Put measures in place to ensure FET colleges are able to recruit and retain highly skilled and experienced instructors

· Support to FET institutions through Train-the-Trainer.

· Provide and support staff development and exposure for FET instructors to link classroom experiences with practical, workplace-based learning experiences.

· Support to FET institutions through Learnerships.

· Strengthen the capacity of FET colleges to partner with other governmental agencies and civil society programmes that create and incubate small enterprises

· Encourage FETs to conduct the new venture creation programme · Partner FETs with ISOEs.

· Government will put in place mechanisms to ensure better coordination and integration of the relevant government departments and agencies responsible for skills development, including SOEs.


40 Strategic Priority 5: Improve the health profile of all South Africans 40.4 Implementation of the Comprehensive Plan for the Treatment, Management and Care of HIV and AIDS so as to reduce the HIV-incidence rate by 50% by the year 2011 and ensuring that the target of reaching 80% of those in need of ARV treatment by 2011 is achieved.

· Isett will insist on AIDS awareness being included in its Learnerships and Internships.


STRATEGIC PRIORITIES AND PROGRAMMES Suggested Isett Seta Contribution 41 Strategic Priority 6: Intensify the fight against crime and corruption 41.12 Shielding the country against the growing threat of crimes related to ICT (particularly cyber crime) and identity theft by, among others, ensuring adequate protection of information and communications network infrastructure (including through the setting up of a Computer Security Incident Response Team); and improving systems dealing with documents such as IDs, birth certificates and passports.

· Identify Isett stakeholders that are involved in developments against ICT related crime and sponsor ICT security learning programmes.

45 Strategic Priority 10: Building a developmental state including improvement of public services and strengthening democratic institutions 45.2 Improving the delivery and quality of public services · Give effect to the policy decision on a Single Public Service as part of a strategy to

improve service delivery, including the rollout of integrated multi-sphere service delivery centres (Thusong Centres) as well as implementing government initiatives around e-government

· Partner with government institutions and PSETA to sponsor ICT learning programmes.

· Improve the performance of the state in frontline services such as Home Affairs, policing, health, development approvals, issuing of drivers licences and maintenance courts. The goal is to substantially reduce the waiting periods and turn-around time in the provision of these services, and to make sure that citizens are treated with dignity and respect.


· Improve the population register to ensure that it is accurate, comprehensive and secure, among others by undertaking a campaign urgently to register all South Africans who do not have birth certificates, and over time, making it compulsory for all births to be registered; as well as through the digitisation of all records and securing ICT processes and installations.


· Improve management capacity in frontline services and their back-office support systems and devolve/decentralise necessary powers and responsibilities so that they can function effectively


45.4 Building partnership with society and strengthening democratic institutions


Appendix 6: Synopsis of potential Isett contribution to the Industrial Policy Action Plan (IPAP) Business Process Outsourcing and Off Shoring (BPO&O)

The global BPO&O industry is forecast to grow at 50 per-cent per annum (equivalent to growth of between $90bn and $100bn) over the next 4-5 years. A window of opportunity exists for South Africa to become a significant global player in the industry through an appropriate value-proposition based on a high-quality yet cost-effective offering. It is estimated that the sector has the potential to contribute up to R7.9bn in gross domestic product (GDP) by 2009 and create up to 100,000 new jobs in South Africa (25,000 direct and 75,000 indirect) by 2014.

To capture this opportunity, South Africa must move quickly to overcome constraints including high telecommunication costs relative to other BPO destinations, an inadequate skills base, and it must also increase its profile and reputation amongst potential global investors.

What has been achieved?

A five-year strategy approved by Cabinet in December 2006, identified the main constraints to the establishment of a significant BPO&O sector in South Africa as high telecommunications costs, the need for skills development, and competition for foreign investment on the basis of initial incentives.

In late 2006, Telkom agreed to benchmark its prices against South Africa’s relevant main competitors. The introduction of a developmental telecommunications pricing model, to give effect to this commitment, must be finalised urgently.

National Treasury has allocated funds for an initial incentive for investors in BPO&O in the 2006/7 Medium Term Expenditure Framework (MTEF).

The Department of Labour (DoL) has allocated R17.1 million to fund the pilot skills development programme to be rolled-out in 2007.

A national business association, the South African Contact Centre Community (SACCOM), has been established.

A Rural Call Centre Support Programme has been developed with partial funding, and 13 sites have been identified.



· Promote the End User Computing/Call Centre Qualification and Learnership.

· Sponsor learners on the End User Computing/Call Centre Learnership, particularly in rural areas.

· Obtain Telkom’s rural telecommunications development plan and sponsor rural End User Computing/Call Centre Learnership and telecommunications learnerships through Telkom on the basis the rural telecommunications infrastructure be provided/improved by Telkom. This type of partnership could also be formed with Neotel and the cellular operators.


Appendix 7: Synopsis of potential Isett contribution to the Integrated Sustainable Rural Development Strategy (ISRDS) The following statements were extracted from the Executive Summary of the ISRDS.

ISRDS Statement International approaches to rural development. Recent experiences in programme design suggest that decentralization accompanied by promotion of greater local power and autonomy in decision-making can offer opportunities to improve outcomes. The evidence indicates that a number of characteristics pertain: · fiscal transfers must provide incentives for local government and be transparent, predictable and autonomous; · an appropriate legal framework must define relationships between different levels of government, and must

provide a clear role for non-government institutions; · institutional capacity to meet the responsibilities and obligations of decentralized authorities must be created

and nurtured; · a clearly defined system of incentives and penalties is required to contribute to more efficient investment

decision-making and to discourage misuse of funds. Recent experiences in project design suggest that urban-rural bias and improved achievement of intended outcomes are achieved where certain key characteristics pertain: · targeting mechanism should be simple, explicit and memorable, based on objective criteria to minimize political

interference in resource allocation; · participation in financing of projects and sub-projects generates a sense of ownership and aligns investments

to be true, perceived needs generate costs savings and increases local accountability; · careful design of information campaigns is essential and technical assistance and training should be

accessible; · project supervision during and after implementation is found to be a determinant of success and sustainability;

and · income-generating projects should be subject to rigorous selection, preparation and technical assistance and

supervision and should provide services for a large number of community members under strict operational guidelines.

Characterisation of rural South Africa. Some strategic pointers: · the diversity and complexity of rural areas and poverty in South Africa must be accommodated in flexible,

responsive strategic planning; · planning must take into account the nature of urban-rural linkages and aim for comprehensive regional

development where urban settlements form an integral part of the strategy; · the marginalisation of agriculture, particularly in the former homelands, needs to be addressed, with central

acknowledgment of the role of women and gender issues; · the impact of HIV/AIDS must be incorporated to respond to impacts on highly vulnerable rural households. The legal and policy framework for rural development in South Africa. The key lessons indicated, are: · public investment programmes have been beset by co-ordination and communication problems, with frequent

complaints of poor associations to community priorities; · the relationship between national and provincial line function departments and Districts Councils in

implementation of programmes was not always coherent and focused; · channels of funding for each sphere of government ‘rained’ on communities randomly with weak

responsiveness to community priorities; · the institutional framework to respond to these issues has been evolving over the period and is now in a

coherent, ordered structure to support the principles of the ISRDS The elements behind the vision of the ISRDS: · Rural development: is multi-dimensional and much broader than poverty alleviation through social

programmes and transfers; it places emphasis on changing environments to enable poor people to earn more, invest in themselves and their communities and contribute toward maintenance of key infrastructure; a successful strategy will make people less poor, rather then more comfortable in their poverty.

· Sustainable: sustainability is derived from increased local growth, and were rural people care about success and are able to access resources to keep the strategy going.

· Integrated: integration is complex and requires effective co-ordination across traditional sectors in all levels of government; the Integrated Development Plan (IDP) process will establish a primary locus of integration at the municipal level.

· Rural Safety net: safety nets are still needed, and South Africa is exceptional amongst developing countries in that many of the key programmes of social assistance extend to rural people and prevent much hardship. The findings of the current review of social assistance should be incorporated to complement the ISRDS.

· Key elements: · A vision of the growth process in rural areas; · A mechanism for integrating existing programs; · Design for new programmes if needed;


ISRDS Statement · A defined locus of decision making; · A meaningful role for local government. · Clarification of financial flows and channels. · Key performance indicators or a process for generating them internally to the strategy; · Procedures to monitor the indicators; · Sequencing of actions that should take place in the short, medium, and long term.

The strategic continuum progress of the ISRDS is indicated in the following four phases: (i) Strategic problem/challenge definition. (ii) Strategic formulation. (iii) Implementation planning and business planning. (iv) Delivery. (v) Evaluation.

The ISRDS will integrate existing activities of government and therefore various elements are at different phases in their own right. The management of the ISRDS it is now completing phase two and establishing a clear focus on phases three and four. The operational approach of the ISRDS. It will build immediately on existing programmes of government through a well-co-ordinated, bottom-up approach to rural local economic development. Key government initiatives will form a core of the integrated programmes on which ISRDS will be built. An initial focus will be on a manageable number of selected areas, or nodes, where the process at a local level will be guided. The range of programme options will be customised in each node into a ‘basket’ of services. The selection will be based on participatory decision making at local level and will include resources from government and other social partners. The chief instrument for integration will be the mechanisms of IDPs as provided for in the Municipal Systems Bill. Technical assistance and management assistance will be provided through IDP and ISRDS structures. The objective will be to bolster and develop local capacity. The primary source of funding is anticipated to come from better synergy of existing programmes rather than allocation of significantly more funds to rural development in aggregate. Municipal councils will use the IDP process to attract desired programmes from government and other sources. The ISRDS will extend progressively from the pilot nodes. The strategy recognises the risks of over concentration of resources from a stable resource pool in a few areas, but will put relevant indicators in place to manage such tendencies. Some complementary measures to support the ISRDS: · human resource development and capacity building; · land reform: implement revised programme; · community based income generation projects; · social assistance and safety nets; and · rural finance. The proposed institutional arrangements, which will operate in the political and operational areas. In the political sphere the Presidency is responsible to the Cabinet for overall co-ordination and monitoring. The Presidency will engage provincial Premiers to establish sound operational co-operative governance understandings between these spheres of government. A core group of Ministers in Cabinet will be drawn from the Infrastructure, Economic and social Cabinet Clusters. Each Cluster will ensure that sectoral line function departments prioritise identified nodes and operate through the planning mechanisms of IDPs. In the operational sphere, each node will be supported by a project team, led by a nodal delivery manager, who will report to the nodal champion. Community based project teams will be established in each node in a range of formats and scales depending on local circumstances. They will integrate with designated nodal IDP structures. Extensive stakeholder mobilisation will be implemented. Five elements of the implementation: · institutional arrangements; · establishment of an information and knowledge base; · development of planning and monitoring systems; · establishing mechanisms of coordination; and · stakeholder mobilisation. Three phases are identified, with specified actions for each element above over each: · Phase 1: The period from December 2000 to March 2001 (until the end of the financial year), will encompass

all the immediate actions within the five elements identified for implementation of the ISRDS. · Phase 2: The period from April 2001 to March 2004 will build and expand the strategy and extend operations

into a greater number of nodes. · Phase 3: The period from April 2004 to March 2010 will manage the strategy into maturity. The strength of the strategy lies in its emphasis on a mechanism that can achieve results on the ground. That mechanism, in brief, empowers rural stakeholders to use the IDP process to select programmes that address their priorities. The basket of selected programmes is financed at the municipal level through an expenditure envelope comprised of the municipal budget, the commitments of the line departments through the IDP process,


ISRDS Statement commitments of donor organizations and NGO’s, and public -private partnerships. Although these resources were available in the past, they lacked the integrative mechanism described in the strategy.

Suggested Isett Contribution

Based on the above statements, the Isett Seta’s suggested contribution to the ISRDS is:

· Support to FET and HET institutions through Train-the-Trainer.

· Support to rural FET and HET institution learners via sponsorship of EUC learning programmes (will assist to develop the ICT Sector resulting in job creation).

· Work with local community, NGOs, skills development fora and training institutions, provincial government and municipalities.


Appendix 8: National Industrial Policy Framework (NIPF) NIPF Statements Suggested Isett Seta Contribution

Although the NIPF aims to encourage the improvement of growth and employment conditions across much of the economy generally, its primary focus is on the relatively low-skill intensity industries: non-traditional tradeable goods and services in the primary, manufacturing and services sectors of the economy. Industrial policy is not the domain of a single government department. It requires intensive coordination across a range of government departments. It can also only be implemented successfully if it is aligned with four associated and supporting sets of policies. 1. A stable and supportive macroeconomic and regulatory environment. 2. Appropriate skills development and education systems which are increasingly integrated with the needs of the industrial economy. 3. Sufficient, reliable and competitively priced traditional and modern infrastructure. 4. Adequate support for various forms of technological investment within the economy. Over the past few years it has become evident that South Africa’s economy is capable of performing at even higher than current levels. Thus Government aims, principally through the Accelerated and Shared Growth Initiative of South Africa (ASGI-SA), to push toward its goal of halving unemployment and poverty in South Africa by 2014 by attaining 6% growth per annum in gross domestic product (GDP) by 2010. · The Role of Skills/Education The link between skills and education policy on the one hand, and industrial policy on the other will be strengthened. A particular emphasis is placed on coordination between high impact priority sectors and the relevant vocational institutions, the development of technical tertiary graduates, and the need to link industry demand and tertiary institutions supply more closely together.

· Through Pivotal programmes, Isett will assist in forging closer links between tertiary educational institutions and industry.

1.1.6 However, a situational analysis indicates that the major structural weakness in the industrial economy has been that the losses in employment in traditional commodity sectors of the economy (such as agriculture and mining) have not adequately been offset by sufficiently rapid growth in non-traditional tradeable sectors (such as in manufacturing and certain tradeable services). These tradeable sectors are critical for employment creation because they are generally both labour-intensive and characterised by relatively low-skill intensity.

· Attempt to assist potential retrenchees in the traditional sectors with ABET and End User Computing training to improve their prospects of re-employment in other sectors, utilising NSF funding. Challenges will involve an interim living allowance and poor English skills. This will require cross-sectoral partnering with Agriseta and MQA.

2. NECESSARY CONDITIONS FOR INDUSTRIALISATION In order for the industrial economy to fire on all cylinders and for an industrial policy to be successful, coordination and alignment is required across a range of supporting policies and institutions. Four main sets of policies need to be implemented in step with more direct industrial policies, namely:

· Macroeconomic and regulatory environment; · Skills and education for industrialisation; · Traditional and modern infrastructure; and · Innovation and technology.

2.2 Skills and education for industrialisation The productive capabilities required to produce goods and services in an ever more globalised economy are becoming increasingly sophisticated. All types of production are affected by this trend, even so-called labour intensive activities. In the short term, this requires much stronger alignment between industrial policies and skills institutions. In the longer term, it requires integration with the educational system with a particular emphasis on ensuring larger numbers of graduates with tertiary technical skills. Competitive advantage in geographic-specific industrial clusters is greatly enhanced by strengthening linkages between tertiary institutions and the needs of industry, which in turn requires larger numbers of secondary graduates with university entrance in mathematics and science.


· Isett Seta to forge partnerships with HETs, including partnering with learnerships.

The highest growth sectors since 1994 have largely been in skills-intensive non-tradeable services and capital-intensive upstream resource-based manufacturing. Skills intensity across all sectors of the economy has increased, including the tradeable sectors. However the overwhelming majority (over 70%) of employment in the tradeable


NIPF Statements Suggested Isett Seta Contribution sectors still comprises low and unskilled workers, with around 60% in manufacturing. By contrast, the private and public non-tradeable sectors are far more skills intensive, with low and unskilled workers accounting for only around one third of employment. 3.3.6 Export performance has also been mixed over this period. There has been important diversification of the export basket away from over-reliance on minerals. Resource-based sectors continue to dominate manufacturing exports, although their share declined from over 74% in 1994 to 61% in 2006. The automotive industry has been the most important source of manufacturing export growth and diversification. But South Africa has not sufficiently integrated into rapidly growing areas of global trade, such as electro-technical products. Muted export performance in non-traditional tradeable goods and services is of concern in a context of high unemployment since skills intensity in these sectors is lowest, and hence they offer the best opportunities for creating employment for relatively unskilled workers.

· The Isett Seta will identify export companies within the Isett Sector and assist with skills development in those companies to boost exports.

4.1.8 The strategy of the previous government of deliberately not investing in skills formation for the majority of the population has created long-term problems. This poses two major sets of challenges. The first is that the global commoditisation of lower-value manufacturing places constraints on the growth of sectors that can absorb relatively unskilled labour. Conversely, availability of skilled labour becomes a constraint on the growth of more dynamic goods and services markets, which are increasingly more skills- and technology intensive.

· Isett will address the top 17 scarce skills as indicated by the Isett Sector.

5.1.1 Diversification of the economy towards non-traditional tradeable goods and services and beyond a mineral and agricultural base is necessary for a range of reasons. It allows countries to escape from the volatility and long-term decline in the terms of trade of a number of commodities. Movement into manufacturing and exportable service activities allows countries to take advantage of the rising income elasticity of demand that derives from increasing wealth in the world economy. This movement is fundamental to higher living standards as people shift from un- or under-employment to more productive formal sector activities. It is well recognised that this process of industrial development is beset with market and production failures. The ability to produce does not occur automatically but is an incremental process of learning and developing cumulative capabilities. During this process a number of markets generally may not work well, or may even be entirely missing. In particular, these generally are markets for capital, technology and skills development.

· As above.

7.4.4 Advanced manufacturing sectors 7.4.4.2 Advanced manufacturing is generally characterised by relatively high levels of skills and technology requirements and encompasses sectors such as automotives, aerospace, electronics, and nuclear energy. These sectors are often driven by foreign direct investors who own the proprietary knowledge involved and who subcontract original equipment manufacturing. However, there are areas in which South Africa is developing its own proprietary technologies, such as in mining capital goods and nuclear energy. Challenges exist with respect to deepening domestic technology linkages in automotives, building more competitive manufacturing capabilities at scale, and identifying the areas in which South Africa can participate competitively in more dynamic value chains, such as the electro-technical group of products. This is likely to require targeted support in the areas of technology development, technological infrastructure and more focused FDI promotion efforts.

· The Isett Seta will identify companies with R&D capability within the Isett Sector and assist with skills development in those companies to boost this capability.


7.4.6 Tradeable Services 7.4.6.1 In developing sectors, the importance of services should not be overlooked. The sector broadly constitutes over 60% of GDP and employment. While much services activity is driven organically by increasing per capita incomes, there are certain services sectors that display desirable developmental characteristics such as the ability to absorb labour and generate substantial value addition. A number of services sectors tend to have higher employment elasticity than manufacturing, although they also tend to be relatively skills-intensive. Promising services for development or ‘self-discovery’ processes include business process outsourcing (BPO), ICT services, engineering, construction and mining


· Promote the End User Computing/Call Centre Qualification and Learnership.

· Sponsor learners on the End User Computing/Call Centre Learnership,


NIPF Statements Suggested Isett Seta Contribution services and the film industry. The major generic challenges facing most of these sectors relate particularly to broadband availability and costs, and skills and education development.

particularly in rural areas. · Obtain Telkom’s rural telecommunications

development plan and sponsor rural End User Computing/Call Centre Learnership through Telkom on the basis the rural telecommunications infrastructure be provided/improved by Telkom. This type of partnership could also be formed with Neotel and the cellular operators.

10. SP4: SKILLS AND EDUCATION FOR INDUSTRIALISATION 10.1 As outlined above the skills and education system form a fundamental pillar for the success of an industrial policy. There is currently insufficient integration between industrial policy objectives and skills and education systems. There is therefore a need from much closer alignment between industrial policy and skills and education development, particularly with respect to sector strategies.

· See above.

10.2 At the level of vocational training there is a need for much greater coordination between the development and implementation of sector strategies and the corresponding Sector Education and Training Authorities (SETAs). In particular, the SETAs related to the high-impact sectors prioritised from time-to-time by Government itself, require priority attention such that they are optimally supportive of the sector development process. Lessons learned from this process can be applied to the improvement of the SETA system as a whole.

· See above.

10.3 In the medium- to long-term there is a need for much stronger alignment between the education system and industrial policy. A critical requirement for any successful industrialisation process is the provision of adequate numbers of graduates in tertiary technical fields such as science and engineering. South Africa’s recent growth spurt has highlighted weaknesses in this area.


10.4 Improvements on the tertiary technical front require a much larger pool of school leavers with university entrance in mathematics and science. This implies purposive efforts to improve the cadre of school leavers necessary for a modern and increasing knowledge-driven economy.

· The Isett Seta will partner with DHET’s Foundation Programme in the way of Pivotal programmes to assist potential tertiary institution entrants who require additional assistance with maths and science.

10.5 There is also a requirement to strengthen the integration between tertiary institutions and industries in the same geographic location. This is particularly the case in more technology and skill intensive industries where local tertiary institutions form a fundamental pillar of industrial clustering.

· The Isett Seta will promote End-User Computing to FETs and rural educational institutions, which will have the long-term effect of making our population more ICT literate, providing them with better access to the world of the Internet and to job and new venture opportunities.

13. SP7: INDUSTRIAL UPGRADING PROGRAMME 13.1 Evidence from firms in the private sector indicates that firms which invest in non-price-based strategies – associated with upgrading their industrial capabilities –demonstrate superior performance in terms of both turnover and employment growth. These include investments in machinery, upgrading skills, and improving their logistics capabilities.

· Isett will address the top 17 scarce skills as indicated by the Isett Sector.

13.5 The second component of industrial upgrading is the technological infrastructure that supports it. Technological infrastructure is defined as infrastructure for a public good, which individual firms would normally be unable or unwilling

· The Isett Seta will identify companies with R&D capability within the Isett Sector and


NIPF Statements Suggested Isett Seta Contribution to invest in, but which has substantial technological impact on the industry as a whole. Due to the broad range and sector-specific nature of the facilities that meet these criteria, it may be desirable to establish a Technological Infrastructure Fund, with broad guidelines, able to support a range of facilities. The types of facilities that would be supported would include tooling and casting facilities, sector-specific skills centres, where fixed costs of equipment are too high for individual firms to invest, and centres for research excellence.

assist with skills development in those companies to boost this capability.



Appendix 9: List of Private FET Colleges Source: DHET, http://www.education.gov.za/dynamic/dynamic.aspx?pageid=432&certificate_nr=&institution_name=&registration_nr=&registration_type_id=&province_id=&town=&date_registered=&accreditation_

Institution Reg Nr Cert Nr Reg Type Province (Head Office)

City/Town (Head Office)

Date Reg Date EAC Date EPR Learning Sub-Fields

MSC Education Holdings 2008/FE07/112 113-P Provisional Eastern Cape East London 25-Nov-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Finance, Economics & Accounting

Empilweni Education 2010/FE07/052 052-P Provisional Gauteng Johannesburg 02-Feb-10 31-Dec-15 31-Dec-16 Promotive Health Protea Nursing School 2010/FE07/010 060-P Provisional KwaZulu-Natal Durban 28-Jan-10 31-Dec-15 31-Dec-16 Promotive Health Intec College 2008/FE07/025 0254-P Provisional Western Cape Cape Town 12-Jun-08 31-Dec-13 31-Dec-14 Electrical Infrastructure Construction

Finance, Economics & Accounting Ikusasa Lethu Nursing School

2010/FE07/007 053-P Provisional Western Cape Cape Town 02-Jan-10 31-Mar-15 31-Dec-16 Promotive Health

ESDA Nursing Education Institution

2009/FE08/003 0246-P Provisional Gauteng Johannesburg 25-Mar-09 31-Dec-14 31-Dec-15 Preventive Health

LSA School of Technology

2007/FE07/005 0014-P Provisional Western Cape Uniondale 19-Sep-07 31-Dec-12 31-Dec-13 Physical Planning, Design & Management

Margaret Nicol and Associates

2010/FE07/046 137-P Provisional Western Cape Wynberg 27-May-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies Generic Management Marketing Office Administration Project Management

Tjeka Training Matters 2009/FE07/118 029-P Provisional Western Cape Durbanville 17-Dec-09 31-Dec-14 31-Dec-15 Building Construction Triple E Training Holdings 2010/FE07/013 063-P Provisional Gauteng Krugersdorp 22-Feb-10 31-Dec-15 31-Dec-16 Finance, Economics & Accounting Tswelopele Nursing School

2009/FE07/043 0265-P Provisional Gauteng Krugersdorp 08-May-09 31-Dec-14 31-Dec-15 Preventive Health

Izizwe Training Centre 2010/FE07/002 037-P Provisional KwaZulu-Natal Durban 22-Jan-10 31-Dec-15 31-Dec-16 Manufacturing & Assembly Midlands School of Nursing

2009/FE07/009 0220-P Provisional KwaZulu-Natal Pietermaritzburg 20-Feb-09 31-Dec-14 31-Dec-15 Preventive Health

NCP Chlorchem 2010/FE07/047 138-P Provisional Gauteng Kempton Park 06-Jun-10 31-Dec-15 31-Dec-16 Manufacturing & Assembly Oceanview Nurse Training College

2010/FE07/018 074-P Provisional KwaZulu-Natal Scottburgh 17-Feb-10 31-Dec-15 31-Dec-16 Promotive Health

Pretoria Technical College

2009/FE07/090 0349-P Provisional Gauteng Pretoria 01-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Electrical Infrastructure Construction Engineering and Related Design Finance, Economics & Accounting Hospitality, Tourism, Travel, Gaming and Leisure Human Resources Office Administration Physical, Mathematical, Computer and Life Sciences

Rhema Service Foundation School of Nursing

2010/FE08/002 056-P Provisional Gauteng Roodepoort 03-Feb-10 31-Dec-15 31-Dec-16 Promotive Health

Saint Ignatious College 2010/FE07/031 091-P Provisional Gauteng Johannesburg 07-Apr-10 31-Dec-15 31-Dec-16 Preventive Health Sakhisizwe Nursing School

2009/FE07/066 0302-P Provisional KwaZulu-Natal Durban 30-Jul-09 31-Dec-14 31-Dec-15 Preventive Health





Thembelani Further Education and Training College

2009/FE07/068 0304-P Provisional KwaZulu-Natal Durban 03-Jul-09 31-Dec-14 31-Dec-15 Preventive Health

Vaal Technology Institute 2009/FE07/035 0250-P Provisional Gauteng Johannesburg 25-Mar-09 31-Dec-14 31-Dec-15 Physical, Mathematical, Computer and Life Sciences

Falcon Business Institute 2007/FE07/011 0297-P Provisional Gauteng Johannesburg 20-Oct-07 31-Dec-12 31-Dec-13 Information Technology & Computer Sciences G S F Education 2007/FE07/016 0216-P Provisional Gauteng Johannesburg 22-Oct-07 31-Dec-12 31-Dec-13 Music

Performing Arts Intuition Computer College

2009/FE07/074 0315-P Provisional KwaZulu-Natal Durban 31-Jul-09 31-Dec-14 31-Dec-15 Physical, Mathematical, Computer and Life Sciences

KwaZulu Natal Tourism Training Centre

2007/FE07/004 0013-P Provisional KwaZulu-Natal Durban 19-Sep-07 31-Dec-12 31-Dec-13 Hospitality, Tourism, Travel, Gaming and Leisure

Micromath Trading 307 2010/FE07/044 134-P Provisional KwaZulu-Natal Ladysmith 31-May-10 31-Dec-15 31-Dec-16 Promotive Health Shekinah Nursing School 2009/FE07/036 0251-P Provisional KwaZulu-Natal Pietermaritzburg 03-Apr-09 31-Dec-14 31-Dec-15 Preventive Health Tshwane Institute of Technology

2008/FE07/035 0100-P Provisional Gauteng Pretoria 16-Apr-08 31-Dec-13 31-Dec-14 Physical, Mathematical, Computer and Life Sciences

Ludumo Nursing School 2009/FE07/112 014-P Provisional KwaZulu-Natal Pietermaritzburg 01-Dec-09 31-Dec-14 31-Dec-15 Promotive Health Pinnacle Business College 2010/FE07/003 038-P Provisional Gauteng Johannesburg 22-Jan-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies Umbilo Further Education and Training College

2009/FE07/086 0356-P Provisional KwaZulu-Natal Durban 01-Oct-09 31-Dec-14 31-Dec-15 Engineering and Related Design

Injabulo Community Care 2009/FE08/016 007-P Provisional Gauteng Pretoria 12-Mar-09 31-Dec-14 31-Dec-15 Promotive Health South African National Tutor Services

2008/FE07/013 0072-P Provisional Gauteng Pretoria 12-Jun-08 31-Dec-13 31-Dec-14 Education, Training & Development

South African Academy for Hair and Skincare Technology

2009/FE07/025 0236-P Provisional North West Potchefstroom 13-Mar-09 31-Dec-14 31-Dec-15 Personal Care

Tioxide Southern Africa 2010/FE07/030 090-P Provisional KwaZulu-Natal Durban 18-Mar-10 31-Dec-15 31-Dec-16 Manufacturing & Assembly Procomputrain College 2009/FE07/052 0277-P Provisional Gauteng Pretoria 07-Jun-09 31-Dec-14 31-Dec-15 Physical, Mathematical, Computer and Life

Sciences McCord Hospital School of Nursing

2009/FE08/014 0009-P Provisional KwaZulu-Natal Durban 05-Nov-09 31-Dec-14 31-Dec-15 Curative Health

Ndumiso Training Institute

2009/FE07/056 0282-P Provisional KwaZulu-Natal Ulundi 07-Jun-09 31-Dec-14 31-Dec-15 Preventive Health

Medi-Clinic 2009/FE06/005 018-P Provisional Western Cape Stellenbosch 12-Dec-09 31-Dec-14 31-Dec-15 Preventive Health Truworths 2009/FE06/003 0323-P Provisional Western Cape Cape Town 12-Aug-09 31-Dec-14 31-Dec-15 Wholesale & Retail Regenesys Management 2009/FE07/023 0234-P Provisional Gauteng Johannesburg 13-Mar-09 31-Dec-14 31-Dec-15 Education, Training & Development

Human Resources Project Management

Middelburg Hospitaal 2010/FE06/001 079-P Provisional Mpumalanga Middelburg 22-Feb-10 31-Dec-15 31-Dec-16 Preventive Health Quali-Call 2009/FE07/071 0309-P Provisional Western Cape Cape Town 08-Jul-09 31-Dec-14 31-Dec-15 Marketing Dionysus Skills Development Initiative

2008/FE07/022 0203-P Provisional KwaZulu-Natal Durban 13-Mar-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Manufacturing & Assembly

Ditasa 2008/FE07/047 0110-P Provisional Gauteng Pretoria 12-Jun-08 31-Dec-13 31-Dec-14 Cleaning, Domestic, Hiring, Property and Rescue Services

Letjhabile-Libalele Nursing College

2010/FE07/035 103-P Provisional Gauteng Johannesburg 21-Apr-10 31-Dec-15 31-Dec-16 Preventive Health

African Union Skills 2008/FE07/043 0106-P Provisional KwaZulu-Natal Durban 12-Jun-08 31-Dec-13 31-Dec-14 Generic Management





Development Marketing Office Administration Project Management

Institute of Tourism and Hospitality Technology

2007/FE07/012 0023-P Provisional KwaZulu-Natal Durban 16-Oct-07 31-Dec-12 31-Dec-13 Hospitality, Tourism, Travel, Gaming and Leisure

Durbuscol 2010/FE07/020 076-P Provisional KwaZulu-Natal Durban 17-Feb-10 31-Dec-15 31-Dec-16 Marketing Edutel Services Company 2008/FE07/031 0096-P Provisional Gauteng Johannesburg 16-Apr-08 31-Dec-13 31-Dec-14 Generic Management

Marketing Office Administration Project Management

Boston Technology Campus

2008/FE07/088 0206-P Provisional Gauteng Johannesburg 01-Nov-08 31-Dec-13 31-Dec-14 Physical, Mathematical, Computer and Life Sciences

Optimum Learning Technologies

2008/FE07/045 0108-P Provisional Western Cape Cape Town 12-Jun-08 31-Dec-13 31-Dec-14 Generic Management Marketing

L R Group 2008/FE07/054 0118-P Provisional Western Cape Cape Town 18-Jul-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Physical, Mathematical, Computer and Life Sciences

Training and Instructional Design Academy of South Africa

2009/FE07/031 0244-P Provisional Gauteng Pretoria 07-May-09 31-Dec-14 31-Dec-15 Physical, Mathematical, Computer and Life Sciences

Helping Hands Skills Academy

2008/FE07/065 0201-P Provisional Western Cape Saldanha 20-Aug-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly

IMBISA Institute for Management and Business in Southern Africa

2008/FE07/012 0071-P Provisional Gauteng Johannesburg 14-Feb-08 31-Dec-13 31-Dec-14 Generic Management

M-S Concept 2010/FE07/014 064-P Provisional KwaZulu-Natal Newcastle 18-Mar-10 31-Dec-15 31-Dec-16 Preventive Health New Beginnings Training and Development Organisation

2009/FE08/013 0345-P Provisional KwaZulu-Natal Durban 06-Oct-09 31-Dec-14 31-Dec-15 Education, Training & Development

NQTAC Cape 2008/FE07/042 0204-P Provisional Western Cape George 12-Jun-08 31-Dec-13 31-Dec-14 Hospitality, Tourism, Travel, Gaming and Leisure

Open Learning Group 2009/FE07/101 135-P Provisional Gauteng Johannesburg 10-Dec-09 31-Dec-14 31-Dec-15 Marketing Wholesale & Retail

Organisation Development International

2008/FE07/028 0093-P Provisional Gauteng Pretoria 27-Mar-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies

Universal College Outcomes SA

2008/FE07/005 0200-P Provisional Free State Bloemfontein 14-Feb-08 31-Dec-13 31-Dec-14 Education, Training & Development Physical, Mathematical, Computer and Life Sciences

PC Educational Holdings 2008/FE07/021 0079-P Provisional KwaZulu-Natal Durban 13-Mar-08 31-Dec-13 31-Dec-14 Education, Training & Development Bright Idea Projects 447 2009/FE07/063 0296-P Provisional Gauteng Johannesburg 07-Jun-09 31-Dec-14 31-Dec-15 Generic Management

Marketing K I B College 2009/FE07/034 0248-P Provisional KwaZulu-Natal Durban 03-Apr-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Life Healthcare Group 2009/FE07/097 0360-P Provisional Gauteng Johannesburg 01-Oct-09 31-Oct-14 31-Dec-15 Preventive Health Ifihlile Training Academy (Gauteng)

2009/FE07/047 0270-P Provisional Gauteng Midrand 30-Apr-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly





Nicole Nurses Training School

2009/FE07/072 0310-P Provisional Gauteng Soshanguve 13-Jul-09 31-Dec-14 31-Dec-15 Preventive Health

Serwalo Hair Academy 2008/FE07/060 0124-P Provisional Gauteng Pretoria 18-Jul-08 31-Dec-13 31-Dec-14 Personal Care Rand International Management and Training Consultants

2007/FE07/009 0019-P Provisional Gauteng Johannesburg 19-Sep-07 31-Dec-12 31-Dec-13 Business, Commerce and Management Studies

S Buys Training and Development Academy

2010/FE07/015 065-P Provisional Gauteng Carletonville 22-Feb-10 31-Dec-15 31-Dec-16 Preventive Health Primary Agriculture

Saint Ambrose Nursing School

2010/FE07/025 084-P Provisional KwaZulu-Natal Verulam 18-Mar-10 31-Dec-15 31-Dec-16 Preventive Health

White River Technical College

2010/FE07/037 108-P Provisional Mpumalanga White River 26-Mar-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies Engineering and Related Design Finance, Economics & Accounting Hospitality, Tourism, Travel, Gaming and Leisure Human Resources Marketing

Wilberforce Community College

2009/FE08/010 0326-P Provisional Gauteng Evaton 04-Sep-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Public Relations

Safe and Sound Learning Association

2009/FE08/011 0328-P Provisional Gauteng Germiston 01-Oct-09 31-Dec-14 31-Dec-15 Education, Training & Development

Academy of Advanced Technology

2009/FE07/030 0283-P Provisional Gauteng Johannesburg 03-Apr-09 31-Dec-14 31-Dec-15 Engineering and Related Design

Africa School of Missions 2009/FE08/006 0261-P Provisional Mpumalanga White River 12-May-09 31-Dec-14 31-Dec-15 Preventive Health Agon Training 2008/FE07/100 0178-P Provisional Gauteng Johannesburg 11-Nov-08 31-Dec-13 31-Dec-14 Marketing St Mary's Hospital Nursing College

2009/FE08/015 0377-P Provisional KwaZulu-Natal Durban 13-Nov-09 31-Dec-14 31-Dec-15 Preventive Health

Teccom Training College 2008/FE07/006 0065-P Provisional Gauteng Johannesburg 14-Feb-08 31-Dec-13 31-Dec-14 Physical, Mathematical, Computer and Life Sciences

Vine College 2009/FE07/033 0249-P Provisional Gauteng Pretoria 03-Apr-09 31-Dec-14 31-Dec-15 Physical, Mathematical, Computer and Life Sciences

VPK Business Venture 2009/FE07/051 0276-P Provisional Gauteng Krugersdorp 07-Jun-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly Commerce and Computer College of South Africa

2009/FE07/073 0314-P Provisional KwaZulu-Natal Durban 31-Jul-09 31-Dec-14 31-Dec-15 Physical, Mathematical, Computer and Life Sciences

Act of Grace 33 2010/FE07/024 083-P Provisional Western Cape Somerset West 18-May-10 31-Dec-15 31-Dec-16 Preventive Health Learning for Sustainability

2009/FE08/002 0247-P Provisional Western Cape Stellenbosch 03-Apr-09 31-Dec-14 31-Dec-15 Education, Training & Development

Central College of Business and Computer Studies

2009/FE07/041 0262-P Provisional Gauteng Johannesburg 12-May-09 31-Dec-14 31-Dec-15 Physical, Mathematical, Computer and Life Sciences

Edutel Skills Development

2007/FE07/008 0017-P Provisional Gauteng Johannesburg 19-Oct-07 31-Dec-12 31-Dec-13 Adult Learning

Exercise Teachers Academy

2009/FE07/082 0325-P Provisional Western Cape Cape Town 12-Aug-09 31-Dec-14 31-Dec-15 Sport

Impregnation Web Technology

2009/FE07/045 0268-P Provisional Western Cape Cape Town 13-May-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly

Khanyisa Nursing School 2009/FE07/007 0215-P Provisional Gauteng Johannesburg 19-Feb-09 31-Dec-14 31-Dec-15 Preventive Health





Hydro Training Academy 2008/FE07/029 0185-P Provisional Gauteng Boksburg 27-Mar-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly I-Fundi Customer Solutions

2008/FE07/091 0165-P Provisional Gauteng Johannesburg 11-Nov-08 31-Dec-13 31-Dec-14 Marketing

Sector Education and Skills Training Organisation

2007/FE07/020 0034-P Provisional Gauteng Johannesburg 26-Nov-07 31-Dec-12 31-Dec-13 Generic Management Marketing

Robin Trust Nursing College

2009/FE07/046 0269-P Provisional Western Cape Pinelands 13-Jul-09 31-Dec-14 31-Dec-15 Preventive Health

Wilma Guest Hulpbrondienste

2008/FE07/061 0128-P Provisional Gauteng Pretoria 20-Aug-08 31-Dec-13 31-Dec-14 Generic Management

The S A J Competency Training Institute

2010/FE07/004 051-P Provisional Gauteng Germiston 19-Feb-10 31-Dec-15 31-Dec-16 Manufacturing & Assembly

KLM Empowered Human Solutions Specialists

2009/FE07/021 0233-P Provisional Gauteng Johannesburg 13-Mar-09 31-Dec-14 31-Dec-15 Generic Management Human Resources Marketing Office Administration

Siyanqoba Seminars 2008/FE07/052 0116-P Provisional Gauteng Pretoria 22-Aug-08 31-Dec-13 31-Dec-14 Office Administration Siyaya Hygiene and Skills Institute

2008/FE07/041 0057-P Provisional Gauteng Johannesburg 16-Apr-08 31-Dec-13 31-Dec-14 Cleaning, Domestic, Hiring, Property and Rescue Services Generic Management Office Administration

Little Elephant Further Education and Training College

2010/FE08/004 092-P Provisional KwaZulu-Natal Greytown 07-Apr-10 31-Dec-15 31-Dec-16 Education, Training & Development

African Global Skills Academy

2008/FE07/023 0081-P Provisional Eastern Cape Port Elizabeth 22-Aug-08 31-Dec-13 31-Dec-14 Hospitality, Tourism, Travel, Gaming and Leisure

Dyna Training 2008/FE07/095 0172-P Provisional Western Cape Cape Town 24-Nov-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Gandhi-Mandela Nursing Academy

2009/FE07/022 0245-P Provisional KwaZulu-Natal Durban 25-Mar-09 31-Dec-14 31-Dec-15 Preventive Health

Makiti Guides and Tours 2008/FE07/011 0070-P Provisional Gauteng Pretoria 20-Aug-08 31-Dec-13 31-Dec-14 Hospitality, Tourism, Travel, Gaming and Leisure

Ring Mash Nursing School

2009/FE07/042 0264-P Provisional Gauteng Pretoria 30-Apr-09 31-Dec-14 31-Dec-15 Preventive Health

Comficor Professional Development

2010/FE07/022 080-P Provisional Western Cape Cape Town 22-Feb-10 31-Dec-15 31-Dec-16 Preventive Health

Edutak Pre-School Training and Development

2008/FE08/001 0087-P Provisional Gauteng Pretoria 13-Mar-08 31-Dec-13 31-Dec-14 Education, Training & Development

Dam Technical College 2008/FE07/018 127-P Provisional Gauteng Johannesburg 27-Feb-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Engineering and Related Design Finance, Economics & Accounting Hospitality, Tourism, Travel, Gaming and Leisure Human Resources Information Technology & Computer Sciences Marketing Office Administration





Physical, Mathematical, Computer and Life Sciences Public Administration Public Relations

The People Architects 2009/FE07/064 0300-P Provisional Gauteng Pretoria 29-Jun-09 31-Dec-14 31-Dec-15 Public Administration LHR Solutions 2009/FE07/075 0316-P Provisional Gauteng Johannesburg 31-Jul-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies College of Vocational Studies

2009/FE07/028 0241-P Provisional Gauteng Johannesburg 25-Mar-09 31-Dec-14 31-Dec-15 Secondary Agriculture

Micromatica 285 2007/FE07/019 0033-P Provisional KwaZulu-Natal Durban 26-Nov-07 31-Dec-12 31-Dec-13 Physical, Mathematical, Computer and Life Sciences

Entrepreneurial Business School

2010/FE07/038 109-P Provisional Western Cape Cape Town 12-May-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies

Edusa College 2010/FE07/012 062-P Provisional Gauteng Pretoria 19-Feb-10 31-Dec-15 31-Dec-16 Physical, Mathematical, Computer and Life Sciences

St Joseph's Home Nurses' Training School

2009/FE08/008 0271-P Provisional Western Cape Cape Town 07-May-09 31-Dec-14 31-Dec-15 Preventive Health

Goldex 545 2007/FE07/017 0032-P Provisional Gauteng Pretoria 16-Oct-07 31-Dec-12 31-Dec-13 Physical, Mathematical, Computer and Life Sciences

Rock of Springs Training Centre GP

2010/FE07/027 086-P Provisional Gauteng Vereeniging 18-Apr-10 31-Dec-15 31-Dec-16 Information Technology & Computer Sciences

The South African Breweries

2007/FE06/001 0021-P Provisional Gauteng Johannesburg 22-Oct-07 31-Dec-12 31-Dec-13 Manufacturing & Assembly

Early Learning Resource Unit

2007/FE08/001 0018-P Provisional Western Cape Lansdowne 25-Nov-07 31-Dec-12 31-Dec-13 Education, Training & Development

Academy of Business and Computer Studies

2008/FE07/108 0187-P Provisional Gauteng Pretoria 10-Dec-08 31-Dec-13 31-Dec-14 Physical, Mathematical, Computer and Life Sciences

Aryan Benevolent Home ABH Nursing School

2009/FE08/007 0267-P Provisional KwaZulu-Natal Durban 13-May-09 31-Dec-14 31-Dec-15 Preventive Health

Anchor-Lite College S A 2009/FE07/095 0354-P Provisional KwaZulu-Natal Durban 07-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Communication Studies

Entrepreneurs Survival Solutions

2009/FE07/094 0351-P Provisional KwaZulu-Natal Durban 02-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

GijimaAst Holdings 2008/FE07/048 0217-P Provisional Gauteng Pretoria 12-Jun-08 31-Dec-13 31-Dec-14 Engineering and Related Design Information Technology & Computer Sciences Manufacturing & Assembly

Maccauvlei Learning Academy

2007/FE07/023 0040-P Provisional Gauteng Vereeniging 07-Dec-07 31-Dec-12 31-Dec-13 Adult Education Human Resources

Impi Training 2010/FE07/045 136-P Provisional Gauteng Kempton Park 31-May-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies Physical, Mathematical, Computer and Life Sciences

MSE Training Academy 2008/FE07/014 0085-P Provisional North West Potchefstroom 22-Feb-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Gaming and Hospitality Management Academy

2009/FE07/065 0301-P Provisional Western Cape Cape Town 29-Jun-09 31-Dec-14 31-Dec-15 Hospitality, Tourism, Travel, Gaming and Leisure

Payroll Education 2008/FE07/033 0098-P Provisional Gauteng Johannesburg 26-May-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies British American Tobacco South Africa

2010/FE07/019 075-P Provisional Western Cape Cape Town 17-Feb-10 31-Dec-15 31-Dec-16 Secondary Agriculture

Advtech Resourcing 2008/FE07/085 0158-P Provisional Gauteng Johannesburg 01-Nov-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies





Education, Training & Development Shell and BP South African Petroleum Refineries

2009/FE07/027 0238-P Provisional KwaZulu-Natal Durban 03-Jul-09 31-Dec-14 31-Dec-15 Engineering and Related Design Manufacturing & Assembly

Athena-Interactive Training Network

2009/FE07/085 0329-P Provisional KwaZulu-Natal Durban 26-Aug-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

Afrilink Leisuretainment 2008/FE07/004 0063-P Provisional Gauteng Pretoria 06-Feb-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Jevan Trading 2009/FE07/084 082-P Provisional Limpopo Thohoyandou 12-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

Electrical Infrastructure Construction Finance, Economics & Accounting Hospitality, Tourism, Travel, Gaming and Leisure Information Technology & Computer Sciences Manufacturing & Assembly Marketing Office Administration

College of Kuilsriver 2007/FE07/021 0174-P Provisional Western Cape Kuilsriver 04-Dec-07 31-Dec-12 31-Dec-13 Physical, Mathematical, Computer and Life Sciences

Woolworths 2010/FE07/040 112-P Provisional Western Cape Cape Town 12-May-10 31-Dec-15 31-Dec-16 Generic Management Wholesale & Retail

Jonda Learning Academy 2008/FE07/017 0130-P Provisional Gauteng Johannesburg 09-Sep-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Manufacturing & Assembly Physical, Mathematical, Computer and Life Sciences

Nettex 2009/FE07/002 0209-P Provisional Western Cape Cape Town 01-Feb-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly Derlon Spinning 2009/FE07/049 0273-P Provisional KwaZulu-Natal Ladysmith 29-Apr-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly Lancashire Manufacturing Company

2008/FE07/092 0166-P Provisional Western Cape Cape Town 11-Nov-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly

Michelle Footwear 2008/FE07/015 0154-P Provisional KwaZulu-Natal Durban 14-Feb-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Instructability 2009/FE07/039 0259-P Provisional Gauteng Benoni 08-May-09 31-Dec-14 31-Dec-15 Finance, Economics & Accounting Elgin Community College 2008/FE08/006 0125-P Provisional Western Cape Cape Town 20-Aug-08 31-Dec-13 31-Dec-14 Primary Agriculture College of Production Technology

2009/FE07/050 0274-P Provisional Gauteng Benoni 29-Apr-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly Wholesale & Retail

Momentum Group 2009/FE06/001 0239-P Provisional Gauteng Pretoria 10-Mar-09 31-Dec-14 31-Dec-15 Finance, Economics & Accounting National Braiding Industries

2009/FE07/001 119-P Provisional KwaZulu-Natal Estcourt 29-Jan-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly

Pasquale Hairdressing Academy

2010/FE07/028 087-P Provisional Gauteng Kempton Park 18-Mar-10 31-Dec-15 31-Dec-16 Personal Care

Operational Process Improvements

2008/FE07/066 0134-P Provisional Western Cape Cape Town 18-Aug-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly

TTCO Education and Training

2008/FE07/056 0120-P Provisional KwaZulu-Natal Pietermaritzburg 18-Jul-08 31-Dec-13 31-Dec-14 Hospitality, Tourism, Travel, Gaming and Leisure

Khanyisela Training 2009/FE07/044 0266-P Provisional Eastern Cape Port Elizabeth 23-Apr-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Braitex-Tensilon 2008/FE07/087 120-P Provisional Western Cape Cape Town 01-Nov-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly International Trimmings and Labels SA


Sew Africa Marketing 2008/FE07/078 0318-P Provisional Gauteng Johannesburg 02-Oct-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly





Oakfields College 2007/FE07/014 0025-P Provisional Gauteng Pretoria 01-Nov-07 31-Dec-12 31-Dec-13 Communication Studies Cultural Studies

Boston Multi Media 2008/FE07/044 0107-P Provisional Gauteng Johannesburg 12-Jun-08 31-Dec-13 31-Dec-14 Marketing Music

Victory Training College 2010/FE07/008 054-P Provisional Gauteng Johannesburg 02-Feb-10 31-Dec-15 31-Dec-16 Information Technology & Computer Sciences Ninian & Lester 2008/FE07/046 0109-P Provisional KwaZulu-Natal Durban 12-Jun-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Spilo 2008/FE07/001 0060-P Provisional Western Cape Paarl 14-Feb-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Wilbat Projects 148 2009/FE07/060 0295-P Provisional KwaZulu-Natal Durban 25-Jun-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly Shukela Training Centre 2010/FE07/041 114-P Provisional KwaZulu-Natal Durban 05-May-10 31-Dec-15 31-Dec-16 Primary Agriculture Xtensive ICT Academy 2008/FE07/073 0143-P Provisional Gauteng Midrand 19-Sep-08 31-Dec-13 31-Dec-14 Physical, Mathematical, Computer and Life

Sciences Twoline Training 2008/FE07/079 0176-P Provisional Gauteng Pretoria 11-Nov-08 31-Dec-13 31-Dec-14 Primary Agriculture

Secondary Agriculture Lesedi Educare Association

2008/FE08/007 0127-P Provisional Free State Tweespruit 28-Jul-08 31-Dec-13 31-Dec-14 Education, Training & Development

Tai Yuen Textile CO (SA) 2009/FE07/013 0224-P Provisional KwaZulu-Natal Mooi River 20-Feb-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly Hopewell Footwear 2008/FE07/049 0112-P Provisional KwaZulu-Natal Durban 10-Jun-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Corrida Shoes 2008/FE07/055 0119-P Provisional KwaZulu-Natal Pietermaritzburg 18-Jul-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Besek College 2008/FE07/070 0138-P Provisional Gauteng Germiston 20-Aug-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly

Physical, Mathematical, Computer and Life Sciences

Crossley Holdings 2009/FE07/020 0298-P Provisional KwaZulu-Natal Durban 25-Mar-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly Autumn Storm Investments 249

2009/FE07/096 0359-P Provisional Gauteng Vereeniging 01-Oct-09 31-Dec-14 31-Dec-15 Personal Care

Concept Interactive (Cape)

2008/FE07/077 0149-P Provisional Western Cape Cape Town 25-Sep-08 31-Dec-13 31-Dec-14 Design Studies

In Excess Trading 22 2008/FE07/093 0167-P Provisional Limpopo Polokwane 11-Nov-08 31-Dec-13 31-Dec-14 Physical, Mathematical, Computer and Life Sciences

Dano Textile Industries 2008/FE07/081 0153-P Provisional KwaZulu-Natal Hammarsdale 11-Nov-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly MLG Consultants Facilitators and Trainers

2008/FE07/117 0198-P Provisional KwaZulu-Natal Durban 09-Dec-08 31-Dec-13 31-Dec-14 Wholesale & Retail

Hartland Training and Development Centre

2009/FE07/087 066-P Provisional Gauteng Pretoria 26-Aug-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Engineering and Related Design Finance, Economics & Accounting Hospitality, Tourism, Travel, Gaming and Leisure Human Resources Information Technology & Computer Sciences Marketing Office Administration Physical, Mathematical, Computer and Life Sciences Public Administration

Sewing Industry Technical Training

2008/FE07/105 0183-P Provisional Western Cape Cape Town 02-Dec-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly

Capstone 528 2008/FE07/106 0184-P Provisional KwaZulu-Natal Pietermaritzburg 02-Dec-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly





Seardel Group Trading 2009/FE07/015 0226-P Provisional Western Cape Constantia 26-Feb-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly The Academy of Professional Hairdressing

2009/FE07/038 0256-P Provisional Gauteng Johannesburg 03-Apr-09 31-Dec-14 31-Dec-15 Personal Care

South African Value Education

2009/FE07/040 0260-P Provisional Gauteng Pretoria 23-Apr-09 31-Dec-14 31-Dec-15 Building Construction Civil Engineering Construction

Sasol Chemiese Nywerhede

2009/FE06/002 0311-P Provisional Free State Sasolburg 09-Jul-09 31-Dec-14 31-Dec-15 Engineering and Related Design Manufacturing & Assembly

QED-Quality Executive Development

2008/FE07/016 0115-P Provisional Gauteng Johannesburg 14-Feb-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies

SA College of Home Study

2009/FE07/099 0362-P Provisional Western Cape Bellvile 05-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

Atcor 2009/FE07/024 0235-P Provisional Gauteng Johannesburg 13-Mar-09 31-Dec-14 31-Dec-15 Finance, Economics & Accounting Marburg Manufacturers 2008/FE07/075 0146-P Provisional KwaZulu-Natal Port Shepstone 19-Sep-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Beier Safety Footwear 2009/FE07/006 0213-P Provisional KwaZulu-Natal Pinetown 19-Feb-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly NextGen Training Solutions

2008/FE07/099 0177-P Provisional Gauteng Johannesburg 24-Nov-08 31-Dec-13 31-Dec-14 Physical, Mathematical, Computer and Life Sciences

Nchebeko Skills Consultancy

2008/FE07/071 0139-P Provisional Limpopo Ga-Kgapane 20-Aug-08 31-Dec-13 31-Dec-14 Promotive Health

ITO Focus-Phole 2008/FE07/102 0180-P Provisional Gauteng Pretoria 11-Nov-08 31-Dec-13 31-Dec-14 Safety in Society Indub Trading 2009/FE07/080 0321-P Provisional KwaZulu-Natal Durban 20-Jul-09 31-Dec-14 31-Dec-15 Transport Operations & Logistics African Spirit Trading 327 2009/FE07/091 0338-P Provisional Gauteng Johannesburg 01-Oct-09 31-Dec-14 31-Dec-15 Cleaning, Domestic, Hiring, Property and

Rescue Services Itumeleng Training Solutions (Garsfontein)

2009/FE07/055 0281-P Provisional Gauteng Pretoria 07-Jun-09 31-Dec-14 31-Dec-15 Promotive Health

Barker Footwear 2009/FE07/053 0279-P Provisional Western Cape Cape Town 07-Jun-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly TADI-Training and Development Institute

2009/FE07/079 028-P Provisional Free State Bloemfontein 22-Jul-09 31-Dec-14 31-Dec-15 Generic Management Public Administration

P and L Hardware 2009/FE07/067 026-P Provisional Limpopo Louis Trichardt 31-Jul-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Wholesale & Retail

Pest Control Service Industries Board

2009/FE08/009 0299-P Provisional Gauteng Pretoria 30-Jul-09 31-Dec-14 31-Dec-15 Secondary Agriculture

Aveng Africa 2009/FE06/004 0337-P Provisional Gauteng Johannesburg 01-Oct-09 31-Dec-14 31-Dec-15 Building Construction Academy for Construction Skills

2009/FEO7/093 0350-P Provisional Eastern Cape Durbanville 01-Oct-09 31-Dec-14 31-Dec-15 Building Construction

The International Hotel School

2009/FE07/077 0319-P Provisional KwaZulu-Natal Westville 29-Jul-09 31-Dec-14 31-Dec-15 Hospitality, Tourism, Travel, Gaming and Leisure

FirstRand STI Administration

2009/FE07/107 010-P Provisional Gauteng Pretoria 10-Dec-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

CBM Training 2009/FE07111 006-P Provisional Gauteng Johannesburg 10-Dec-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies The Independent Institute of Education

2009/FE07/003 0210-P Provisional Gauteng Johanesburg 01-Nov-08 31-Dec-13 31-Dec-14 Design Studies Media Studies Personal Care

Hatfield Tuition and Skills Development Centre

2009/FE07/113 023-P Provisional Gauteng Pretoria 10-Dec-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Engineering and Related Design Finance, Economics & Accounting Hospitality, Tourism, Travel, Gaming and Leisure





Human Resources Information Technology & Computer Sciences Marketing Office Administration Public Administration

Franz Falke Textiles 2010/FE07/005 046-P Provisional Western Cape Bellville South 25-Jan-10 31-Dec-15 31-Dec-16 Manufacturing & Assembly Sandton Technical College

2010/FE07/011 061-P Provisional Gauteng Pretoria 10-Feb-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies Information Technology & Computer Sciences

Cat Group 2010/FE07/021 077-P Provisional Gauteng Johannesburg 22-Feb-10 31-Dec-15 31-Dec-16 Information Technology & Computer Sciences Netcare Hospital Management

2010/FE07/029 088-P Provisional Gauteng Johannesburg 18-Apr-10 31-Dec-15 31-Dec-16 Preventive Health

National Emergent Red Meat Producers Organisation

2010/FE08/005 093-P Provisional Gauteng Pretoria 18-Mar-10 31-Dec-15 31-Dec-16 Primary Agriculture

Tshwane City College 2010/FE07/032 094-P Provisional Gauteng Pretoria 30-Apr-10 31-Dec-15 31-Dec-16 Information Technology & Computer Sciences Tourism World 2008/FE07/098 0173-P Provisional KwaZulu-Natal Durban 11-Nov-08 31-Dec-13 31-Dec-14 Hospitality, Tourism, Travel, Gaming and

Leisure Nature Conservation

Compass Group Southern Africa

2009/FE07/062 0291-P Provisional Gauteng Johannesburg 31-Jul-09 31-Dec-14 31-Dec-15 Hospitality, Tourism, Travel, Gaming and Leisure

Prilla 2000 2008/FE07/068 0136-P Provisional KwaZulu-Natal Pietermaritzburg 20-Aug-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Van Dyck Carpets 2008/FE07/113 0193-P Provisional KwaZulu-Natal Durban 02-Dec-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Ronald Sewell & Associates South Africa

2008/FE07/069 055-P Provisional Gauteng Johannesburg 18-Aug-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Wholesale & Retail

Vuka Design 2008/FE07/080 0152-P Provisional Gauteng Johannesburg 01-Nov-08 31-Dec-13 31-Dec-14 Cultural Studies Kingsgate Clothing 2008/FE07/103 057-P Provisional KwaZulu-Natal Durban 24-Nov-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Associated Spinners 2008/FE07/024 0082-P Provisional KwaZulu-Natal Mandeni 12-Jun-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Feltex Holdings 2009/FE07/054 0340-P Provisional Western Cape Cape Town 01-Oct-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly Cam Clothing Company 2008/FE07/059 0123-P Provisional Gauteng Johannesburg 18-Jul-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly BSN Medical 2008/FE07/082 0155-P Provisional KwaZulu-Natal Pinetown 01-Nov-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Beier Albany and Company

2008/FE07/116 0196-P Provisional KwaZulu-Natal Pinetown 02-Dec-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly

The Furniture Technology Centre


Dyefin Textiles 2008/FE07/063 0131-P Provisional KwaZulu-Natal Pinetown 20-Aug-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Aranda Textile Mills 2008/FE07/040 0104-P Provisional Gauteng Randfontein 12-Jun-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly The Good Hope Textile Corporation

2008/FE07/058 0122-P Provisional Eastern Cape King Williams Town

18-Jul-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly

Public Finance IQ 2008/FE07/051 0114-P Provisional Gauteng Pretoria 25-Jun-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Little Seeds Training 2008/FE08/005 0092-P Provisional Mpumalanga White River 18-Jul-08 31-Dec-13 31-Dec-14 Education, Training & Development Experiential Technologies 2008/FE07/119 0205-P Provisional Gauteng Pretoria 21-Jan-09 31-Dec-13 31-Dec-14 Generic Management

Project Management Eddels Shoes 2008/FE07/074 0144-P Provisional KwaZulu-Natal Pietermaritzburg 25-Sep-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly The ECD Projects Association

2008/FE08/009 0190-P Provisional Gauteng Johannesburg 02-Dec-08 31-Dec-13 31-Dec-14 Education, Training & Development

Belgotex Floorcoverings 2008/FE07/094 0168-P Provisional KwaZulu-Natal Pietermaritzburg 11-Nov-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly





Nouveau Consulting 2009/FE07/076 0317-P Provisional Gauteng Pretoria 31-Jul-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies PZ Security Services 2009/FE07/057 0294-P Provisional Eastern Cape Dutywa 07-Jun-09 31-Dec-14 31-Dec-15 Physical, Mathematical, Computer and Life

Sciences Safety in Society

Tshwane College of Commerce & Computer Studies

2010/FE07/39 110-P Provisional Gauteng Pretoria 07-May-10 31-Dec-15 31-Dec-16 Information Technology & Computer Sciences

Metcash Trading Africa 2008/FE07/076 0148-P Provisional Gauteng Johannesburg 25-Sep-08 31-Dec-13 31-Dec-14 Wholesale & Retail Equal Career Services 2008/FE07/064 0132-P Provisional Gauteng Pretoria 20-Aug-08 31-Dec-13 31-Dec-14 Wholesale & Retail Terenzo Hairdressing The School

2008/FE07/097 0171-P Provisional Gauteng Johannesburg 11-Nov-08 31-Dec-13 31-Dec-14 Personal Care

LearnCorp 2009/FE07/010 058-P Provisional Gauteng Pretoria 26-Feb-09 31-Dec-14 31-Dec-15 Design Studies Transport Operations & Logistics

Western Cape Learnership Centre (Clothing)


Hospitality Professionals South Africa

2008/FE07/107 0186-P Provisional Gauteng Johannesburg 02-Dec-08 31-Dec-13 31-Dec-14 Hospitality, Tourism, Travel, Gaming and Leisure

Dominion School of Hair 2008/FE07/115 0195-P Provisional Gauteng Kempton Park 02-Dec-08 31-Dec-13 31-Dec-14 Personal Care Brooklyn City College 2009/FE07/018 133-P Provisional Gauteng Pretoria 10-Mar-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

Design Studies Engineering and Related Design Finance, Economics & Accounting Hospitality, Tourism, Travel, Gaming and Leisure Human Resources Information Technology & Computer Sciences Marketing Office Administration Public Administration Safety in Society

Zurel Bros SA 2009/FE07/026 0237-P Provisional Limpopo Polokwane 13-Mar-09 31-Dec-14 31-Dec-15 Fabrication & Extraction Celrose 2008/FE07/110 0189-P Provisional KwaZulu-Natal Tongaat 02-Dec-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly Prue Leith College 2009/FE07/012 0223-P Provisional Gauteng Pretoria 10-Mar-09 31-Dec-14 31-Dec-15 Hospitality, Tourism, Travel, Gaming and

Leisure Mpumalanga Agri Skills Development and Training

2009/FE08/005 0258-P Provisional Mpumalanga Nelspruit 30-Apr-09 31-Dec-14 31-Dec-15 Primary Agriculture

Milpark Business School 2009/FE07/058 0285-P Provisional Gauteng Johannesburg 05-Jun-09 30-Jun-14 31-Dec-15 Business, Commerce and Management Studies Mako Centre for Health 2009/FE07/061 0290-P Provisional Gauteng Vereeniging 07-Jun-09 31-Dec-14 31-Dec-15 Promotive Health Omni Learning 2009/FE07/069 123-P Provisional Western Cape Cape Town 08-Jul-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

Generic Management Marketing

Oxbridge Academy 2009/FE07/070 078-P Provisional Western Cape Cape Town 09-Jul-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Office Administration

True Harvest Trading 2009/FE07/089 0334-P Provisional Gauteng Pretoria 01-Oct-09 31-Dec-14 31-Dec-15 Physical, Mathematical, Computer and Life Sciences





Gauteng Talent Management Solutions

2009/FE07/092 0342-P Provisional Gauteng Kempton Park 01-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

Marble Gold 295 2009/FE07/081 0341-P Provisional Mpumalanga Nelspruit 01-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Elelwani IT Training 2009/FE07/104 0368-P Provisional Limpopo Venda 12-Oct-09 31-Dec-14 31-Dec-15 Information Technology & Computer Sciences Fernwood Business College

2009/FE07/102 0370-P Provisional Eastern Cape East London 12-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

Edcon Retail Academy 2009/FE07/106 0371-P Provisional Gauteng Johannesburg 12-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Wholesale & Retail

Ntataise 2009/FE08/017 008-P Provisional Free State Viljoenskroon 12-Dec-09 31-Dec-14 31-Dec-15 Education, Training & Development Aranda Learnership College

2009/FE07/105 0369-P Provisional Gauteng Randfontein 12-Oct-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly

The Ashleigh Erin Foundation

2009/FE08/012 0358-P Provisional Gauteng Soweto 01-Nov-09 31-Dec-14 31-Dec-15 Engineering and Related Design

Construction Industry Education and Training Services

2010/FE08/001 049-P Provisional Gauteng Johannesburg 25-Jan-10 31-Dec-15 31-Dec-16 Building Construction

Cape Global Construction & Engineering Training Centre

2009/FE07/115 035-P Provisional Western Cape Vredenburg 10-Dec-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly

DSDC College of SA 2009/FE07/110 011-P Provisional Gauteng Pretoria 01-Dec-09 31-Dec-14 31-Dec-15 Information Technology & Computer Sciences Ikage SD College 2010/FE07/023 081-P Provisional Gauteng Pretoria 25-Feb-10 31-Dec-15 31-Dec-16 Information Technology & Computer Sciences Knowledge Quest 2010/FE07/033 100-P Provisional Gauteng Johannesburg 31-Mar-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies

Design Studies Finance, Economics & Accounting Human Resources Marketing Project Management

RAU Technology Institute 2010/FE07/036 104-P Provisional Gauteng Johannesburg 30-Apr-10 31-Dec-15 31-Dec-16 Information Technology & Computer Sciences Salestalk 380 2010/FE07/001 122-P Provisional KwaZulu-Natal Verulam 10-May-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies

Finance, Economics & Accounting Information Technology & Computer Sciences Office Administration Safety in Society

Fusion Outsourcing Services

2010/FE07/042 121-P Provisional Western Cape Century City 07-May-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies

Limco Consulting and Management

2009/FE07/098 0361-P Provisional Gauteng Johannesburg 01-Oct-09 31-Dec-14 31-Dec-15 Information Technology & Computer Sciences

Springfield FET College 2009/FE07/100 0363-P Provisional Gauteng Pretoria 12-Oct-09 31-Dec-14 31-Dec-15 Information Technology & Computer Sciences Customer Centric Soluitions

2009/FE07/114 016-P Provisional Gauteng Johannesburg 10-Dec-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies

Learnsys 2009/FE07/103 0367-P Provisional Gauteng Johannesburg 12-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Cleaning, Domestic, Hiring, Property and Rescue Services

Prodigy Business Services

2010/FE07/043 124-P Provisional Gauteng Rivonia 25-May-10 31-Dec-15 31-Dec-16 Business, Commerce and Management Studies Finance, Economics & Accounting Public Administration

Blueprint Future Skills 2008/FE07/019 0339-P Provisional Gauteng Johannesburg 14-Feb-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies





Development Generic Management Marketing

Health Science Academy 2009/FE07/117 025-P Provisional Gauteng Johannesburg 12-Jan-10 31-Dec-14 31-Dec-15 Preventive Health Boston School of Finance 2007/FE07/002 0305-P Provisional Gauteng Johannesburg 05-Oct-07 31-Dec-12 31-Dec-13 Business, Commerce and Management Studies Edutel Wholesale and Retail Academy

2008/FE07/010 0069-P Provisional Gauteng Johannesburg 14-Feb-08 31-Dec-13 31-Dec-14 Wholesale & Retail

Boston Administrative Services

2007/FE07/001 0010-P Provisional Gauteng Johannesburg 04-Oct-07 31-Dec-12 31-Dec-13 Business, Commerce and Management Studies

Bosasa Youth Development Centres

2008/FE07/009 0068-P Provisional Gauteng Krugersdorp 14-Feb-08 31-Dec-13 31-Dec-14 Manufacturing & Assembly

Gelvenor Consolidated Fabrics

2007/FE07/006 0207-P Provisional KwaZulu-Natal Durban 19-Sep-07 31-Dec-12 31-Dec-13 Manufacturing & Assembly

Scientec 2007/FE07/007 0016-P Provisional KwaZulu-Natal Durban 12-Sep-07 31-Dec-12 31-Dec-13 Manufacturing & Assembly Boston City Campus and Business College

2008/FE07/036 0199-P Provisional Gauteng Johannesburg 16-Apr-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Education, Training & Development Generic Management Marketing Project Management Public Relations

Business Management Training College

2008/FE07/007 0066-P Provisional Gauteng Johannesburg 14-Feb-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies

Kingsbury International College SA

2008/FE07/020 0255-P Provisional Mpumalanga Middelburg 14-Feb-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Marketing

Management and Leadership Academy

2008/FE07/111 0191-P Provisional KwaZulu-Natal Durban 02-Dec-08 31-Dec-13 31-Dec-14 Hospitality, Tourism, Travel, Gaming and Leisure

Resonance Institute of Learning

2008/FE07/053 0117-P Provisional Gauteng Roedepoort 18-Jul-08 31-Dec-13 31-Dec-14 Adult Learning

Southern African Wildlife College

2008/FE08/003 0090-P Provisional Limpopo Hoedspruit 28-Mar-08 31-Dec-13 31-Dec-14 Nature Conservation

Ukwazi School of Nursing 2009/FE07/014 0225-P Provisional Gauteng Johannesburg 02-Mar-09 31-Dec-14 31-Dec-15 Preventive Health PC Training and Business College

2008/FE07/050 0219-P Provisional KwaZulu-Natal Durban 18-Jul-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Finance, Economics & Accounting Information Technology & Computer Sciences

Watersrand Computer and Business College

2010/FE07/009 059-P Provisional Gauteng Johannesburg 06-Jan-10 31-Dec-15 31-Dec-16 Information Technology & Computer Sciences

Damelin 2008/FE07/089 0163-P Provisional Gauteng Johannesburg 11-Nov-08 31-Dec-13 31-Dec-14 Finance, Economics & Accounting Information Technology & Computer Sciences Manufacturing & Assembly

Better Best Educational Projects

2009/FE07/088 0357-P Provisional Limpopo Mokopane 01-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Human Resources Marketing

DCC Campus FET Institution

2008/FE07/002 0061-P Provisional KwaZulu-Natal Durban 06-Feb-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies

Chatsmed Candlelight Nursing School

2009/FE07/019 0230-P Provisional KwaZulu-Natal Durban 25-Mar-09 31-Dec-14 31-Dec-15 Preventive Health

Future Nurses Nursing School

2009/FE07/016 0227-P Provisional Gauteng Johannesburg 10-Mar-09 31-Dec-14 31-Dec-15 Preventive Health





Healthnicon SA 2009/FE07/109 013-P Provisional Gauteng Pretoria 05-Nov-09 31-Dec-14 31-Dec-15 Preventive Health Advisor Progressive College

2009/FE07/048 0272-P Provisional Mpumalanga Emalahleni 29-Apr-09 31-Dec-14 31-Dec-15 Finance, Economics & Accounting Physical, Mathematical, Computer and Life Sciences Promotive Health

African Academy for Computer Assisted Engineering

2008/FE08/004 0091-P Provisional Gauteng Johannesburg 27-Mar-08 31-Dec-13 31-Dec-14 Civil Engineering Construction

Aldabri 106 2007/FE07/010 0020-P Provisional KwaZulu-Natal Durban 19-Oct-07 31-Dec-12 31-Dec-13 Adult Learning Atholl Munday Training Centre

2009/FE07/029 0257-P Provisional KwaZulu-Natal Durban 25-Mar-09 31-Dec-14 31-Dec-15 Manufacturing & Assembly

Berea Technical College 2008/FE07/003 0062-P Provisional KwaZulu-Natal Durban 06-Feb-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Engineering and Related Design Hospitality, Tourism, Travel, Gaming and Leisure Human Resources Marketing

Birnam Business College 2008/FE07/039 0055-P Provisional Gauteng Johannesburg 25-Jun-08 31-Dec-13 31-Dec-14 Information Technology & Computer Sciences Bytes People Solutions 2007/FE07/015 0008-P Provisional Gauteng Johannesburg 05-Nov-07 31-Dec-12 31-Dec-13 Information Technology & Computer Sciences Central Business Academy

2008/FE07/072 0141-P Provisional Free State Bloemfontein 19-Sep-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies Marketing Project Management

Centurion Akademie 2008/FE07/057 0121-P Provisional Gauteng Pretoria 18-Jul-08 31-Dec-13 31-Dec-14 Personal Care Computhink 2010/FE07/034 102-P Provisional Gauteng Pretoria 08-May-07 31-Dec-15 31-Dec-16 Information Technology & Computer Sciences CTU Training Solutions 2007/FE07/013 0029-P Provisional Gauteng Pretoria 02-Nov-07 31-Dec-12 31-Dec-13 Physical, Mathematical, Computer and Life

Sciences Damelin Correspondence College

2008/FE08/037 0253-P Provisional Western Cape Cape Town 30-Apr-08 31-Dec-13 31-Dec-14 Finance, Economics & Accounting

Denver Technical College of South Africa

2009/FE07/083 118-P Provisional Gauteng Pretoria 01-Oct-09 31-Dec-14 31-Dec-15 Business, Commerce and Management Studies Electrical Infrastructure Construction Engineering and Related Design Hospitality, Tourism, Travel, Gaming and Leisure Information Technology & Computer Sciences Marketing Safety in Society

Desto 2008/FE07/090 0164-P Provisional Gauteng Pretoria 11-Nov-08 31-Dec-13 31-Dec-14 Generic Management Information Technology & Computer Sciences

DT Nursing Institute 2009/FE07/017 0228-P Provisional KwaZulu-Natal Durban 10-Mar-09 31-Dec-14 31-Dec-15 Preventive Health Eastcape Training Centre 2008/FE08/002 0292-P Provisional Eastern Cape Port Elizabeth 13-Mar-08 31-Dec-13 31-Dec-14 Building Construction

Civil Engineering Construction Electrical Infrastructure Construction Manufacturing & Assembly

Ekufundeni Training School

2009/FE07/059 0288-P Provisional Gauteng Pretoria 07-Jun-09 31-Dec-14 31-Dec-15 Preventive Health

Jeppe College of 2008/FE07/038 0263-P Provisional Gauteng Johannesburg 08-Dec-08 31-Dec-13 31-Dec-14 Business, Commerce and Management Studies





Commerce and Computer Studies

Finance, Economics & Accounting Marketing Physical, Mathematical, Computer and Life Sciences


Appendix 10: List of Public FET Colleges Source: http://www.skillsportal.co.za/learning/fet_colleges/

Western Cape West Coast Public FET College Boland Public FET College South Cape Public FET College Northlink College College Of Cape Town False Bay Public FET College

Northern Cape Urban Public FET College Rural Public FET College

Free State Goldfields FET College Motheo FET College Maluti FET College Flavius Mareka FET College

Eastern Cape Port Elizabeth Public FET College Eastcape Midlands Public FET College Buffalo City Public FET College Lovedale Public FET College King Sabatadalindyebo Public FET College Ingwe Public FET College Ikhala Public FET College King Hintsa Public FET College

Kwazulu-Natal Mthashana FET College Umfolozi FET College Majuba FET College Mnambithi FET College Elangeni College For FET Coastal Kzn F.E.T. College Thekwini FET College Umgungundlovu FET College Esayidi FET College

Mpumalanga Ehlanzeni Public FET College Nkangala Public FET College Gert Sibande Public FET College

Limpopo Lephalale FET College Capricorn FET College Waterberg FET College Vhembe FET College Mopani South East FET College Letaba FET College Sekhukhune FET College

Gauteng Tshwane South Public FET College Tshwane North College For FET Ekurhuleni West Public FET College Ekurhuleni East Public FET College South West Gauteng College Central Johannesburg Public FET College Western Public FET College Sedibeng Public FET College

North West Taletso FET College Vuselela FET College Orbit FET College


Appendix 11: List of Public Universities and Universities of Technology that provide ICT Qualifications Source: HEMIS Database, Department of Higher Education and Training

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University of Cape Town y y y y y y Central University of Technology, Free State

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Durban Institute of Technology y y y University of Fort Hare y University of the Free State y y y y University of Johannesburg y y y y y y y University of KwaZulu-Natal y y y University of Limpopo y y Nelson Mandela Metropolitan University

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North West University y y y y y y y y University of Pretoria y y y y y y Rhodes University y y University of South Africa University of Stellenbosch y y y y y Tshwane University of Technology

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Appendix 12: A Comparison between the Number of Companies in 2010 against the Number in 2009 The following table shows the number of companies within the Isett Sector that increased in size from 2009 to 2010.

From Medium to Large 11 From Small to Large 1 From Small to Medium 37

The one company the increased in size from Small to Large was as a result of the linking of several branch offices to the head office.

The following table shows the number of companies within the Isett Sector that decreased in size from 2009 to 2010.

From Large to Medium 12 From Medium to Small 24 From Large to Small 2

The following table shows the number of companies that exited or were excluded from the Isett Sector during 2009, and the reason for therefore.

2009 Co Size Findings Total Large Closed 4 Merger 1 No contributions in last 3 months 4 Medium Newcomer last year, but no payments in last three months this year 3 No contributions in last 3 months 10 Small Closed 2 Inter-Seta Transfer 1 Newcomer last year, but no payments in last three months this year 37 No contributions in last 3 months 79 Grand Total 141

The following table shows the number of companies that entered the Isett Sector during 2009, and the reason for therefore.

2010 Co Size Findings Total Large New 2010 Entrant 6 Medium Irregular contributor, but contributions have increased above threshold 5 New 2010 Entrant 3 New to the submission process 6 Seems to now be a regular contributor 2 Small Average monthly levy now above threshold 49 Irregular contributor, but contributions have increased above threshold 11 New 2010 Entrant 11 New to the process, and above threshold 236 Newly registered 5 Seems to now be a regular contributor 36 Grand Total 370

isett seta sector skills plan 2011 2016 jan 2011 version v2p1

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