Corporate Plan 2008/9

Portfolio Committee on Labour

25 March 2008

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About Umsobomvu 2008 Strategic Priorities Response to Apex Priorities Programme Overview and Review Challenges NYC – UYF Merger

Presentation Outline

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2008 Strategic Priorities 6 new Youth Advisory Centre’s established to increase the total

number of UYF operated YACs to 19 thereby increasing young people’s access

Continue strengthening existing partnerships with 19 government departments as well as the private sector.

With restricted funding for 2008 achievement of scale will be severely restricted.

For youth with disability implement Take Person with Disability To Work Campaign.

Positioning UYF to participate in supporting the Volunteer Programme for the 2010 FIFA World Cup. Still in discussions with the Local Organising Committee.

Contribution towards attainment of Apex Priorities, Asgisa, JIPSA objectives.

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Apex PrioritiesUmsobomvu’s interventions are alligned to five key Apex Priorities outlined in

SONA and thus require no change in our focus but rather scaling up of

delivery: APEX PRIORITY UYF RESPONSE

Project 4 Implement intensive campaign on energy security.

National Electric Response Campaign involving 10 000 Energy Savers in partnership with Old Mutual and Indalo Yethu.

Project 8 War against poverty

National Youth Service Programme. To date the NYS has reached in excess of 50 000 young people in partnerships with Expanded Public Works and other departments.

Project 9Self/ employment interventions in the second economy.

Youth entrepreneurship support, graduate development and job placement.

Project 13

Assistance to SMES including procurement activities by Government.

Business Opportunities Support Service Aimed at linking young entrepreneurs with business opportunities thereby increasing youths’ participation mainstream economy.

Project 19Increase SANDF (MSD) intake of young trainees.

National Youth Service Programme. The Military Skills Development Programme is one of National Youth Service initiatives in partnership with the Department of Defence.

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Skills Development & Transfer

Programme

National Youth Service

Aimed at providingyoung people with skillswhilst they provide community services.

Entrepreneurship Education

Aimed at skills gearedtowards a change in Entrepreneurialattitudes and behaviour.

Achievements (YTD)

57, 298 young people participated in NYS projects

15, 118 young people access entrepreneurship education

637 teachers capacitated to offer entrepreneurship education

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Skills Development & Transfer

Programme Graduate

Development Programme

Aimed at providing unemployed graduates with skills required for employment (job preparedness training)

Achievements

447 youth undergo job preparedness training.

700 unemployed graduates undergo bridging programs.

Less than 5% attrition 55% placement rate

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Business Development Services

Programme

BDS VoucherAimed at providing Business development support to start up and existing enterprises to enable them to be more profitable and sustainable.

Volunteers in Action (VIA) Mentorship Service

Achievements

8046 vouchers issued to young entrepreneurs

8443 jobs created/ sustained R129.6m loans facilitated R19m tenders awarded

612 mentees receiving mentorship support from 270 experienced mentors.

South African business icon, Herman Mashaba is patron of VIA

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Business Development Services

Programme

Business Opportunities Support Services

Aimed at linking young entrepreneurs with business opportunities

Achievements

R253m worth of opportunities sourced to benefit 768 young entrepreneurs.

Opportunity providers include Nestle’, MTN, Cell C and Hot Dog Café’.

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Enterprise FinanceProgramme

Micro FinanceAimed at providing young people and women with finance ranging from R1000 to R100 000.

SME FundingAimed at providing young entrepreneurs with loans ranging from R100 000 to R5 m

Achievements 14 728 micro loans issued

which created 11 375 jobs 148 SME loans issued which

created 1 608 jobs. Women >90% (mainly micro)

Repayment rates for micro 85%

Repayment rates for SME 90%

R100m leveraged from Old Mutual for the UYF/Old Mutual Women’s Fund

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Performance at a glance: 2007 – 2009Programme 2006/7

Actual Performance

Targets: 2007/8 (Per R400m allocation)

2007/8(YTD As of end Dec 07)Performance

Target: 2008/9 (Per MTEF expected allocation of R424m)

National Youth Service 15 139 50 000 57 298 74 500

Graduate Development & Job Preparedness

1250 3000 916 4500

Entrepreneurship Education

29 106 20 000 14 771 25 000

Enterprise Finance 21 383 21 260 14 876 22 200

Business Dev Services Vouchers

9 470 12 000 8 046 15 000

Volunteers in ActionMentorship Service

594 mentees 1000 mentees 612 mentees 1 250 mentees

Business Opportunities R183,7 m R230m R253m R500m

Job Opportunities 2 467 3000 884 2000

Walk ins & Outreach 566 457 800 000 435 720 850 000

Full Service Youth Advisory Centres

1 13 13 6

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High Level Cashflow Forecast to March 2009

CASHFLOW PROJECTIONS Mar-08 Mar-09Forecast Forecast

R'm R'm

Opening cash on hand 356,874 341,022

Less Restricted Funds (31,093) - 325,782 341,022

Add: Income Funding Allocations 400,000 5,080 Interest and Capital Repayments 47,171 211,327 Cash available 772,952 557,430 Less Expenses (462,994) (529,977) Operating Expenses (51,628) (54,342) Project Disbursements (387,636) (408,563) Oustanding Creditors and Purchase Order - (41,488) Capital Expenditure (23,730) (25,585) Cash on hand before interest 309,958 27,452

Plus: Interest on cash in bank 31,064 14,337 Closing cash on hand 341,022 41,789

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High Level Reserves Forecast to March 2009RESERVES PROJECTION Mar-08 Mar-09

Forecast Forecast R'm R'm

Opening Reserves 372,767 63,107 Less Prior Year Commitments (291,848)

80,919 63,107 Funding Allocation 400,000 5,080

480,919 68,187 Add: Income 78,235 225,664 Total Available Reserves 559,153 293,851

Less: Operating Expenses (51,628) (54,342) Less: Non Cash Items (3,961) (19,351) Reserves Available for Projects Funding 503,564 220,158

Less: Project Commitments (440,457) (220,158) Closing Reserves 63,107 0

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Funding – only R5m per annum allocated under MTEF

Treasury argues that UYF should utilise cash on hand – however most is committed to projects.

Mismatch between the National Budget and State of Nation Address: Support to Unemployed Youth who are out of school. R125

billion on education focuses on Schools, Further & Higher Education. Bulk of beneficiaries under National Skills Development Learnerships affects Section 18(1) – employed youth

More allocation to youth in prison than to the Unemployed Youth Cohort.

It is envisaged that with resources available the UYF will only reach 40%-50% of planned activities.

Management of youth expectations in election year.

Challenges

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NYC – UYF Merger

Mandate / Strategic Focus related to National Youth Policy/

Integrated Youth Development Strategy

Products & Services

Governance – Relevant Executive Authority & Portfolio

Committee

Relationship with the Provincial Youth Commissions

Passing the NYDA Bill / Act (before March 2009)

Liquidation of NYC & UYF and transfer of assets

Internal & External Communication (stakeholders)

Systems, operations processes integration

Forecast budget of R10 million required

Thank you