Mr Trevor Channing CHIETA Executive Manager: Governance and Risk

2. PRESENTATION TO CHIETA CHAMBERS ON 9 FEBRUARY 2017 ON CHIETA POLICY ON CHIETA SCENARIOS AND STRATEGIC RESPONSE FRAMEWORK Mr Trevor Channing CHIETA Executive Manager: Governance and Risk

3. OUTLINE OF PRESENTATION • CONTEXT AND INTRODUCTION • OBJECTIVES • METHODOLOGY • SCENARIO MATRIX • FOUR CHIETA SCENARIOS AND SCENARIO ROAD SIGNS • CHIETA STRATEGIC RESPONSE FRAMEWORK TO FOUR SCENARIOS • WAY FORWARD • QUESTIONS, ANSWERS AND CLARITY

4. CONTEXT AND INTRODUCTION • CHIETA Acting CEO and Management with the support of the Governing Board identified the need for a strategic tool that will assist with formulating possible scenarios for the Chemical Industry and to further enrich CHIETAs strategic planning processes • CHIETA partner with the Centre for Risk Analysis (CRA)- Dr Frans Cronje who is the author of A Time Travellers guide: SA over the next ten years • In above-mentioned four scenarios based on a horisontal axis of an open\close society and vertical axis of a deregulated economy versus a heavily regulated economy saw the light • Four macro SA scenarios developed by CRA namely a Wide Road, Narrow Road, Rocky Road and Toll Road • CHIETA also recognised the need and difference between predicting a single out come (forecasting ) as opposed to several plausible outcomes for the future(scenario planning)

5. OBJECTIVES • Create awareness of possible future destinations for the SA Chemical Industry with a skills development focus within these destinations • Set a framework that will stimulate and contribute to value adding strategic engagements on all collective stakeholder structures of CHIETA • To identify and discuss key strategic themes that can shape our future and potential strategic responses in order for CHIETA to pro-actively align and sustain our skills development support and service to the Chemical Industry

6. METHODOLGY • Background preparation inclusive of literature reviews on current and global outlook for the SA Chemical Industry • Developed one core question from which CHIETA must consistently plan for on the short to medium term namely: "Howdoes CHIETA remain a highly effective and preferred partner for sustainable skills development for the Chemical Sector of SA” • Also Recognising the current landscape and transactional environment in which CHIETA functions in and specifically our role and mandate as a SETAs as defined in the Skills Development Act and Skills Development Levies Act • Scanning the macro environment to develop major trends or key driving forces that can potentially determine the future direction of the SA Chemical Industry • Ranking these key driving forces in terms of High Impact, High Uncertainty to Low impact and low Uncertainty • Designing a scenario matrix utilising the two most important and most uncertain trends as the horizontal and vertical axis of the scenario matric

9. STRATEGIC RESPONSE FRAMEWORK: HIGHWAY TO PROSPERITY (SCENARIO 1) Research and Skills Planning with significant investment towards renewable energy to diversify the SA energy landscape , increased investment on research to get fracking of the ground, increased research to reduce dependence on imported skills, more research undertaken on Industry investment patterns and adjustment to potential new occupations needed High impact skills development interventions through local and global partnerships in energy space on curricula development, more integrated pipeline management between basic and higher education, Joint ownership between Industry and CHIETA and academia on infrastructure requirements and curricula Grants Management where speed becomes essential in responding to the ever increasing competitive landscape and stronger ICT Governance and technology responding to growing Industry needs and increased levies for distribution

10. STRATEGIC RESPONSE FRAMEWORK: FORK IN THE ROAD (SCENARIO 2) • Research and Skills Planning with importance of artificial intelligence where many traditional jobs needs to be re-invented, move beyond career guidance to innovative ways in closing the skills gaps of an expanding economy, pro-active skills planning processes speaking to the “right people "and decision makers to strategically respond to increased skills demand and understanding the SMME space to unlock opportunities • High impact skills development interventions by providing artisans with off shore experience, Industry strongly involved to ensure sustainability of TVET partnerships, training for the world and not only South Africa and change in investment strategies for TVET colleges to become providers of choice • Grants Management same as under scenario 1 (Highway to Prosperity)

11. STRATEGIC RESPONSE FRAMEWORK: POTHOLES AHEAD (SCENARIO 3) • Research and Skills Planning based on research partnerships with credible data and analysis on improving skills and employability of the youth, Opportunities in the export market which could be penetrated with the correct skills, focus on informal sector opportunities and potential in terms of skills development and business ownership • High impact skills development interventions retaining the co- funding model and methodology ensuring value for money under ever increasing funding pressure, aggressive re-skilling of retrenched staff, skilled workforce to expand our export market and limit imports, and impact methodologies and reporting • Grants Management to focus more on scarce and critical skills, more funding towards oil and energy based projects and formal sector to partner on the development of the informal sector

12. STRATEGIC RESPONSE FRAMEWORK: 4x4 OFF-ROADING (SCENARIO 4) • Research and Skills Planning to assist Industry with research on how skills development can assist to survive a volatile and uncertain environment, influencing curriculum development on basic education level, determining skills needs in Africa in support of exporting skills to the African continent and removal of barriers for young graduates to enter the labour market • High impact skills development interventions in facilitating more multi level partnerships between UOT’s Universities, TVETs, Technical Schools and Industry, strong project steering committees with high level leadership to lead projects and fund projects that have multiple employers to rotate learners across companies to increase diversity of skills and improve employability • Grants Management to assist Industry need for shorter high impact learning programmes, IL grants to SDF’s to hand hold SMME’s for a year with skills development processes , grants allocation strongly influenced by research, more SMME funding to grow the SMME number into potential levy paying companies and funding of high impact projects where employers see the benefits and want to host learners with an increased sense of ownership

13. WAY FORWARD • Chamber members to note and support this interventions started by CHIETA Management and Board • Given the very nature of scenarios being a dynamic and evolving process that Chambers also allow themselves time to discuss this more in detail at their meetings and specifically around CHIETAs strategic skills planning and implementation responses under each of these four(4) scenarios • This continuous wisdom will be poured into this process assisting CHIETA in our annual and continuous strategic planning processes and organisational interventions that will ensure the high impact required

14. QUESTIONS, ANSWERS AND CLARITY THANK YOU