Snapshot of Provincial Skills Planning Considerations

TVET College Strategic Planning21 July 2015

A quote from the EC Economic Outlook (Third Quarter 2014, DEDEAT)

• Young people (defined here as those between the ages of 19 and 24, inclusive), as new entrants to the labour market, face a particularly high risk of unemployment in the Eastern Cape.

• In the final quarter of 2014, a staggering 62 percent of the provincial labour force between the ages of 19 and 24 was unemployed according to the expanded definition (i.e. wanted work but were not working). According to the official definition, the youth unemployment rate increased dramatically in the first two quarters of 2014 (from just under 50 percent at the end of 2013 to 57 percent in the second quarter of 2014)

Planned Developments• The Eastern Cape is a vast province with distinct regions necessitating

decentralised planning and programme implementation.• Huge economic potential yet to be realised although key projects emerging with

the potential to transform the economy of the province:– Operation Phakisa– Strategic Integrated Projects

• N2 Development• Wind and solar farms• Project Mthombo• Mzuimvubu Dam• Municipal Infrastructure

– Provincial Infrastructure and Road Development– Wild Coast Development– Tourism

Provincial Development PlanVision

• The PDP promotes a growing, inclusive and equitable economy.

• This includes a larger and more efficient provincial economy that optimally exploits the competitive advantages of the Eastern Cape, increased employment and reduced inequalities of income and wealth.

Goals of the Provincial Development Plan

• An inclusive, equitable and growing economy for the province

• An educated, innovative and empowered citizenry• A healthy population• Vibrant, equitably enabled communities• Capable agents across government and other

institutional partners committed to the development of the province.

The role of Infrastructure Development in the PDP

• A critical goal of the PDP relates to “improved economic infrastructure that promotes new economic activity across all regions of the Eastern Cape by:

– improving provincial infrastructure planning; – ensuring close collaboration with the Presidential Infrastructure Coordinating Committee (PICC); – improving infrastructure maintenance; – building new, and reviving old, irrigation infrastructure; – establishing strategic freight and passenger corridors; – positioning the Eastern Cape as a key investment hub in the energy sector and ensuring reliable

energy supplies to high potential sectors; and – working towards universal and cheap broadband access.

The focus will be on “Rapid development of high-potential economic sectors. This will

be achieved by implementing sector strategies.

Summary of Sector Strategies

• Agriculture Address land ownership and water issues to enable rapid capital accumulation (multi-scale and complete value chains). Focus on irrigation opportunities and value addition.

• Mining and Energy: Optimise benefits from Karoo shale-gas, including feedstock for provincial petrochemicals, and position the Province as an energy hub

• Construction: Ensure present infrastructure pipeline is properly planned, resourced and implemented; create enabling conditions for property development and build skills base.

• Manufacturing: Exploit coastal competitive advantages and realise potential of industrial development zones/special economic zones; create multi-agency partnerships to drive industrial expansion and diversification.

Summary of Sector Strategies(cont)

• Tourism: Use competitive advantages to grow volume and value of eco-tourism, heritage and sports tourism; improve access infrastructure and build stronger local tourism networks , Social economy; Transform public works (EPWP/CWP) into a major platform for sustainable enterprise development (asset-based community development)

• Ocean Economy: Take advantage of the province’s extensive coastline and exclusive economic zone of 296 000km2 (landmass of 169 000km2) off the Eastern Cape coast.

• Knowledge-based Services: Increase quantity and quality of skills formation, form multi-agency partnerships around strategic R&D and deepen ICT access and usage.”

(Source: EC Vision 2030 Plan)

Case StudyCase Study

The Emergence of New Spheres of Economic Activity – Wind Farms

In 2010 the Province imported almost all forms of energy (apart from e.g. small hydro)

Existing High Voltage

Transmission Lines

By 2014: •R21.6 Billion – Wind and Solar Farms•R3.5 Billion DEDISA Gas Turbine (+ Port Rex)•R1 Billion+ in energy manufacturing facilities•R2.5 Billion Cradock Biofuel Facility •57 171 Solar water heaters•Also note 1.5 Billion Eros-Vuyani Transmission Line (etc)

Possibilities Going Forward: •Nuclear: R418 Billion (highly dependent), Shale Gas: R Trillions, Renewable Energy Development Zones, Hinterland Transmission, Offshore Oil and Gas (entire coast), Mzimvubu.

ExxonMobil

OK EnergyNew Age Algoa and Rift Petroleum

Impact Africa

Bayfield Energy

Silver Wave Energy

Canadian Natural Resources/Total

Falcon

Shell

Shell

Bundu

Example Summary of Potential Benefits

Project Name X Wind Farm

Total investment value: Three Billion Rands.

Jobs at Construction: 3,577 person-months over a period of two years.

Jobs at Operations: 34,476 person-months over a period of 20 years i.e. 144 full-time permanent jobs.

Socio-Economic Development grant to community:

R524 million grant to community projects within a 50 km radius.

Local ownership of Windfarm:

40% local community equity by means of a trust = R983 million in dividends.

In words….

• Between 2012 and 2015, in 4 bidding rounds under the National Renewable Energy Procurement Programme, the Eastern Cape has been awarded 15 Wind Farms and 1 Solar Farm. The total investment value of these facilities is R32.7 Billion.

• It is projected that they will translate into over 18,000 job years.

• Over a similar period 55,493 solar water heaters have been installed in the Province.

Implications for the Skills Sector

Projected Skills NeededProjects Estimated Numbers OTP and Partners

Wind and Solar Farms 90 – Engineers

200 – Artisans

200 – Semi-skilled

400 – Unskilled

200 – SMME’s

EWSETA

Construction SETA

merSETA

CHIETA

Services SETA / LGSETA

W&R SETA

Nuclear Energy 300 – Engineers

2800 – Artisans

700 – Semi-skilled

4300 – Unskilled

3000 – Salaried Staff

300 – SMME’s

EWSETA

Construction SETA

merSETA

CHIETA

Services SETA

W&R SETA

Mining SETA

TETA

PSETA

Skills Planning

• Detailed skills plans needed for all projects eg Project Mthombo

• Aggregated plans per sector needed• Occupational planning needed as a cross

check (see discussion later on artisan development)

System development• TVET Colleges need to identify areas of specialisation to guide programme

development and capitalisation.• Provincial system being developed so coordinate and support workplace

learning for all students at EC Colleges and Universities.• Career guidance and support• SMME development programmes critical – what is the role of Colleges in

this?• Critical : - early warning for new occupations eg the way that the sector

responded to the IT revolution. Need to note the changing realities of work.

eg. Artisan Development• The Eastern Cape in 2014 had 1 402 Registered

Apprenticeships with 690 people successfully completing a trade test, across 50 trades.

• The pipeline of candidates could be expanded if trade tests became the ultimate goal of TVET College programmes and Technical High Schools. In this way a further 27 547 candidates would be added to planning.

– N4 – N6 2 385– NCV Engineering 5 289– Technical High Schools: 19 873

• 3 of the 8 Colleges have Occupational Schools but some Colleges battling to implement programmes outside the DHET-funded scope of NCV and Report 191 programmes.

Emerging Priorities(as captured in the draft Artisan Development Strategy)

• Develop Centres of Specialisation at TVET Colleges as part of the overall training strategy for the province.

• Secure partnerships with large and medium sized companies to host learners.

• Keep all role-players fully informed of developments and programmes through regular meetings of the Artisan Forum established as a sub-committee of PSDF.

• Implement training strategy developed for green economy, with a focus on household installations.

• Support and monitor decentralised trade test centres.• Agree on Provincial Plan to develop skills pipeline for SIPs

Expectations of TVET Colleges• SIPS

– Identify areas of specialisation and communicate to DHET and OTP as requested.– Develop plan to ensure that the College is fully equipped to offer its identified

area of specialisation.• Artisan Development

– Full participation in Artisan Development Steering Committee– Expansion of Schools of Occupation to absorb SETA and other funded learners– List of all available workplaces within the catchment area of the College.

• Work placement– Monitor and quality assure workplace training.– Maintain database of unemployed graduates and students needing work

experience – Maintain database of all student placements for internships or experiential

learning– Establish a tracking system to record all ex-students who are employed

•

Expectations of Colleges (cont)

• Expansion of programme offerings– Need to lay the foundation for community colleges.– Find ways of responding to new areas of economic activity.

• Participation in key provincial Fora– TVET/ SETA Forum (next meeting 5 August at the Osner?)– PSDF (next meeting on 6 August at DoH Call Centre on the EL beachfront)– Green Skills Forum (next meeting on 29 July at ELIDZ)

Thank youQuestions and comments

Van Stadens Wind FarmPhoto: John Mcgillivary