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THE JOBS FUND

19 July 2011

Background of the Jobs Fund

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The Fund was announced by the President during the State of the Nation Address

The Jobs Fund is aimed at piloting new and upscaling existing innovative approaches to employment creation

The Fund’s activities include planning, financing and oversight of implementation of job creation projects

The Minister of Finance appointed DBSA as an implementing agent

The Minister launched the Fund on the 7th June 2011

What the Jobs Fund will not fund

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Bail out of distressed companies

Start-up companies and initiatives

Training activities that are not linked to placement

Initiatives with huge capital investment but minimal job creation potential.

Focus Areas of the Jobs Fund

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Enterprise Development

Investments in product development, local procurement, marketing support, equipment upgrading or enterprise franchising

Infrastructure Investment

Local infrastructure investment projects such as light manufacturing enterprise zones, local market and business hub facilities, critical transport and communication links and upgrading of infrastructure services

Support for Work Seekers

Support programmes with a particular focus on unemployed young people such as job search projects, training activities and support for career guidance and placement services

Institutional Capacity Building

Projects aimed at strengthening institutions through which jobs are created

Targeted Sponsors/Partners

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Public Sector Municipalities Government departments Public entities

Private Sector Business enterprises

Non Government Sector NGOs CBOS

Allocations as per MTEF

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Year 1 R2,0bn

Year 2 R3,0bn

Year 3 R4,0bn

Total R9bn

Preliminary Targets for the 3 years

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Expenditure(R mil)

Co-Funding(R mil)

Number of Projects

Sustainable jobs created

Net income added

(Rm a year)

Enterprise Development

3 500 7 000 700 100 000 1 500

Infrastructure Investment

4 000 2 000 250 20 000 400

Work-Seeker Support

1 000 500 200 20 000 400

Institutional Development

500 500 200 10 000 200

Total R9 000m R10 000m 1 350 150 000 R2 500m

Guiding Principles of the Jobs Fund

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Targeting youth unemployment, skills and enterprise development Pilot new and upscale existing innovative approaches to

employment creation The Jobs Fund will provide once-off grants only repayable if utilised

inappropriately Support projects on co-financing ratio of 1:1 Focus on developmental return rather than financial return The approach focuses on project risk (viability of the project) and

not credit risk

Criteria for Project Approval

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Eligibility Impact Due diligence Track record Private sector led/linkages Commercial basis No outstanding legal decisions Matched funding

Potential for job creation Innovation Additionality Sustainability Capacity to implement Contribution to economic

development

Application Process

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Approval Phase

1. Investment Committee Approval

Submission of Appraisal report to the Investment Committee

No Reject/Amend

Yes Approve

Investment Committee

Pre Approval Phase

1. Initial screeningBusiness plan/

proposal

2. Evaluate against Jobs Fund Criteria

No Reject

Yes Engage

3. Preparation of Appraisal Report

Expert Team of Assessors

Post Approval Phase

1. Implementation· Implementation plan· Sign off Agreement· Disbursement of

funds

2. Monitoring/ Supervision

· Project Management· Monitoring· Reporting

3 . Exit

· Evaluate· Close Out Report

DBSA

Request for Proposals

1st Request for Proposals

April – June

2nd Request for ProposalsJuly – Sept

3rd Request for ProposalsOct- Dec

4th Request for Proposals Jan- March

Governance & Operating Structures

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Oversight Role

Executive Role

CABINET

MINCOMBUD Advisory Committee

JOBS FUND INVESTMENT COMMITTEE

DBSA BOARD

DF Technical Evaluation Committee

DF BOARD

MINISTER OF FINANCE

Jobs Fund Committees and TORs

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•Advise government on all matters relating to the operation of the JF including reviewing and refining the mandate, key performance areas and targets in the context of experience and changing circumstances.

Jobs Fund Advisory Committee

•Approval of Funding Proposals •Amendments to Approval Decisions •Evaluation of Fund Performance•Consideration of Management Reports

Jobs Fund Investment Committee

•Assessment of Funding Proposals•Follow-up on the Amendments to Approval Decisions•Input in the preparation of Jobs Fund Performance Report•Technical support to applying institutions as and when

necessary

Jobs Fund Technical Evaluation Committee

Strategy to Create Projects Pipeline

Call for proposal through Jobs Fund website and media Utilisation of DBSA investment and implementation footprint The DBSA will identify existing projects that are scalable/replicable

for support with regard to preparation and submission for consideration by Jobs Fund committees

Contribution by DBSA Intermediaries and other DFIs Conducting country wide road-shows with different sector players to

facilitate partnerships and pipeline building Deploy technical expertise to support project development.

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Conclusion

The thrust of each application or proposal must reflect and demonstrate job creation within a funding period (funding year).

Ownership of the job creation initiative by the applicant is very fundamental to the approval.

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For detailed information please use the following mediums:

A Share Call line - 0861 003 272A website address - www.jobsfund.org.za

A dedicated enquiry email - info@jobsfund.org.za

THANK YOU

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