EPWP Progress Report for Roll-out of EPWP Phase 3

1. Expanded Public Works Programme(EPWP)Progress report for the roll-out of EPWP Phase 3 to Portfolio Committee on Public Works23 June 2015

2. Presentation Outline • Quarter 4 performance analysis • Work opportunities • Full Time Equivalents • Designated Groups • Spatial Analysis: Sector Performance • Financial Performance and Integrated Incentive Grant Performance • Beyond the numbers • Outputs and services rendered • Enterprise Development & NSF Funded Training • Progress on Institutionalising the PEP – IMC • EPWP Reporting System • Challenges • Measures put in place to address challenges 2

3. Overall EPWP Annual Targets (5 Years) per financial year • Source: EPWP Phase 3 Targets (dated : 30 April 2014 ) • Work Opportunities: Paid work created for an individual on an EPWP project for any period of time. The same person can be employed on different projects and each employment period will be counted as a work opportunity • FTE (Full Time Equivalence) : person days of work and training divided by 230 days

4. Discussion on Performance of the EPWP in Q4 • Work opportunities: • By Q4 of the 2014/15 FY, 1 103 983 Work Opportunities (WO) were reported against the annual set target of 1 045 520 which translates to 106% • The following sectors: Infrastructure, Social and Non-State: NPOs & CWP have reached their annual targets, except the Environment & Culture Sector which has created 221 090 WO against the set target of 227 650 (97%%) leading to a shortfall of 6 560 WO. • The major contributor of the WO reported in quarter 4 are from the Infrastructure Sector with 409 209 WO & Non-State Sector (NPOs & CWP) 249 078 WO. • Full Time Equivalence: • A total of 387 278 Full Time Equivalents (FTEs) were created against the set target of 420 952 translating to 92%. • The only sectors that have reached their annual set FTEs targets is Infrastructure sector and the NSS:CWP with100% and 102% achieved respectively. • While the other sectors have achieved 91% - Environment & Culture, 82% - Social and the NSS: NPOs – 73% • The under performance on FTEs can be attributed to the shorter durations in the WO reported.

5. Overall Progress to date against2014-15 Targets(1 April 2014 – 31 March 2015)Work opportunities (WO) • Source: EPWP Phase 3 Targets (dated 30 April 2014) • Work Opportunities: Paid work created for an individual on an EPWP project for any period of time. The same person can be employed on different projects and each employment period will be counted as a work opportunity • FTE (Full Time Equivalence) : person days of work and training divided by 230 days

6. Overall progress against2014-2015 targets Full Time Equivalents (FTEs)

7. Overall Analysis across all sectors and spheres of government: (Q4: 1 April 2014 – 31 March 2015)

8. Discussion on Performance of the Programme in Q4All Spheres of Govt • National GovtDepts: • The NSS: CWP has reported 198 707 WO against an annual target of 187 000 translating to 106%, whilst the NSS: NPOs Programme has reported 49 960 WO against a target of 49 000 translating to 104%. • All the other sectors at a national level were unable to reach their annual set targets. • Provincial & Municipalities • All provinces except for the FS and NC have exceeded their combined (provincial and municipal) annual targets on work opportunities. • The leading provinces in terms of performance is KZN with 173 774 WO reported at 130%, followed by EC with 109 850 WO reported translating to 129%. • For the combined performance, the lowest performing province is the Northern Cape with 74% achieved.

9. National Government Departments progress against 2014-15 annual targets Work opportunities and FTEs (1 April ‘14 – 31 March ‘15) % - Percentage of work opportunities or FTE reported against target Work Opportunities (WO) – Work Opportunities reported by reporting bodies Full Time Equivalence (FTE) – person days of work and training divided by 230 days Source: Infra & Enviro Targets – EPWP Phase 3 targets (Apr 2014): NPO & CPW targets – EPWP Phase 3 targets (Apr 2014) Non State sector Directorate, (July 2014)

10. Infrastructure, Environment and Culture and Social Sectors (TOTAL) (Prov Govt Depts & Municipalities): Work opportunities against 2014-15 targets by Province (Q4: 1 April 2014 – 31 March 2015)

11. Work opportunities as percentage of Designated groups by Sector (1 April 2014 – 31 March 2015) 11

12. Municipalities Reporting per Province 1 Apr 2014 – 31 March 2015 (Quarter 4)

13. SPATIAL ANALYSIS: SECTOR PEFORMANCE • Social : • Social Sector targets only exist at a District and Metro level. • The performance on FTEs and WOs largely the same trend, i.e. those Districts exceeding their WO target also exceed their FTE targets. • Enviro: • More Local Municipalities and metros have exceeded their WO target than their FTE targets. • 107 Local Municipalities and 5 metros exceeded their WO targets while 90 Local Municipalities and 4 metros exceeded their FTE targets. • There are more District that exceeded their WO targets than those that exceeded their FTE targets. There are 18 District exceeding the WO targets while 11 District exceeded their FTE targets. • Infra: • There are more Local Municipalities and metros that exceeded their WO target than their FTE targets. • 103 Local Municipalities and 4 metros exceeded their WO targets while 60 Local Municipalities and 3 metros exceeded their FTE targets. • Similarly there are more District that exceeded their WO targets than those that exceeded their FTE targets. There are 10 District exceeding the WO targets while 4 District exceeded their FTE targets.

15. Spatial distribution of work opportunities 1 Apr 2014 – 31 March 2015 • All 8 metropolitan municipalities are in the top 10 municipalities i.t.o WO. • The WO reported in the top 10 municipalities represent 32% of the total 1 103 983 WO reported in the 2014-15 financial year.

17. Spatial distribution: Full Time Equivalent (FTE) 1 April 2014 – 31 March 2015 • . • The total FTEs reported in the top 10 municipalities represent 32% of the 123 234 FTEs reported in total for the 2014-15 financial year.

18. EPWP INTEGRATED GRANT PERFORMANCE

19. Expenditure as at end of March 2015 – Integrated grant to provinces

20. Expenditure as at end of March 2015 – Integrated grant to Provinces • The EPWP Integrated Grant to Provinces was completely disbursed to all provinces with the exception of Limpopo province where 96% of the grant was disbursed. • This was because funds for Limpopo Departments of Education and Corporate Governance and Traditional Affairs were stopped due to non-compliance. • The expenditure for the EPWP integrated grant to provinces is at 92%. • Provincial Departments did not have full expenditure mainly due to delays in implementation of projects.

21. Expenditure as at end of March 2015 – Integrated grant to Municipalities

22. Expenditure as at end of March 2015 – Integrated grant to Municipalities • The EPWP Integrated Grant to Municipalities was completely disbursed to all eligible municipalities. • The expenditure for the EPWP integrated grant to municipalities was 73% at 31st of March 2015. • Municipalities have until the 30th of June 2015 to spend their full allocation.

23. Expenditure as at end of March 2015 – Social Sector Incentive grant

24. Expenditure as at end of March 2015 – Social Sector Incentive Grant • For the EPWP Social Sector grant to provinces, 100% of the allocation has been disbursed. • The overall expenditure of the grant is 95%. • The Northern Cape, Mpumalanga and Free State had lower expenditure than other provinces.

25. BEYOND THE NUMBERS • Outputs and services rendered • Enterprise Development • NSF Training • EPWP Reporting • Progress on Institutionalizing the PEP - IMC

26. OUTPUTS – INFRASTRUCTURE SECTOR 26

27. OUTPUTS – ENVIRONMENT & CULTURE SECTOR 27

28. OUTPUTS – ENVIRONMENT & CULTURE SECTOR 28

29. ENTERPRISE DEVELOPMENT • Through the Enterprise Development: • A total of 322 Small Medium and Micro Enterprises (SMMEs) have been supported. • 2. Out of the SMMEs supported, 482 beneficiaries have benefited, with 247 out of this • beneficiaries representing the Youth. • 3. In addition, a total of 178 co-operatives have received the following training • respectively: • Introduction to Entrepreneurship Training. • Diagnostic Assessment Training. • Practical exercise on Costing and Pricing Tendering, and • Co-operative Workshop. 29

30. BREADKDOWN OF SMMEs and Coops SUPPORTED 30

31. EPWP TRAINING • The EPWP received funding for training from the Department of Higher Education and Training (DHET) through the National Skills Fund (NSF) for the period 2010 – 2016. • The funding was allocated as follows: • R200 million for Short Courses, • R110 million for Skills Programmes, • R52 million for Artisan Development and Learnerships and • R7.1 million for NECSA training. • Through further engagements with the various Sector Education and Training Authorities (SETA”s); the programme also managed to source R1,6 million from the FPMSETA discretionary grants for training of 639 EPWP participants on FPMSETA skills programmes i.e. chainsaw, brush-cutter, forestry etc.

32. EPWP TRAINING…Cont’d • As per the NSDS III initiative, the EPWP has partnered with 3 various SETA’s up until the 31st March 2016, to assist with the rollout of the EPWP various training programmes. • The various SETA’s partnered with are AgriSETA, CATHSSETA and MerSETA to ensure that quality training is provided to beneficiaries. • Through AgriSETA, 120 Learnerships will be implemented on animal production and poultry production and 2 521 EPWP beneficiaries will go through Skills Programme on horticulture and plant production. • The CATHSSETA will implement skills Programme to 1 170 EPWP beneficiaries on public area cleaning, culture site guide, craft production, sports coaching and the logistics preparation of the implementation has already commenced. • The merSETA will implement the Artisan Development Programme on various trades including electricians, diesel mechanic, boilermakers to 109 EPWP beneficiaries. Subsequently, for the duration of the training the learners will be placed at Volkswagen South Africa, Toyota SA, Mercedes Benz.

33. EPWP TRAINING…Cont’d

34. EPWP Phase 3 Reporting System • The EPWP Phase III new reporting will be conducted via a single source reporting system which introduces new built validations. • Real time application of validation rules will include ID number validations with the Department of Home Affairs and the DPSA for PERSAL information. • An exciting development for the new system is the integration of biometric capability for better quality control. The biometrics will be used as a secondary identifier together with the EPWP participant ID number. • Parallel recording for fingerprint recognition, where possible, will allow for the link of participant data to the data sets of other government systems. • The system will be set up to accommodate various biometric measurements • To date, the EPWP M&E Unit has conducted a number of training workshops with all the sectors and the implementing public bodies. • All Public bodies are currently capturing the 2015/16 Quarter 1 (April to June 2015) data on the new system. 34

35. Progress on Institutionalizing the PEP - IMC • The first sitting of the Public Employment Programme Inter-Ministerial Committee is scheduled for the 08th July 2015 coupled by site visits to EPWP Projects in Gauteng Province. • The PEP-IMC will be chaired by the Hon. Deputy President Mr Cyril Ramaphosa comprising of Ministers for the following core departments: • Public Works • Social Development • Environmental Affairs • Corporative Governance and Traditional Affairs • Other Ministers from National Treasury, Small Business Development, Rural Development, Labour, Trade & Industry and Economic Development are critical members of the PEP-IMC and will be invited as and when required. 35

36. Key Challenges • Low technical capacity of public bodies to implement EPWP. • Non attainment of person with disability and youth targets • Non-attainment of FTEs targets – due to shorter duration of work opportunities. • Social Sector Programme such as the National School Nutrition Programme (NSNP) not adhering to the minimum daily wage stipulated in the ministerial determination. 36

37. Measures put in place to address challenges • Technical support is being provided to public bodies to help them implement their projects labour-intensively and to report effectively. • Engagements are being held with Organisations that represent persons with disabilities to improve their participation in EPWP. • Engagements are being held with different programmes to enable them adhere to the EPWP minimum wage. 37

38. Labour Market Dynamics Survey Results From the 2014 Labour Market Dynamics survey released by StatsSA, the following has been reported: • Awareness about the Expanded Public Works Programme and other government job creation programmes has increased from 42,8% to 52,0% in 2014. • Women are more likely to participate in these programmes, with the share of women among those who participated increasing from 59,3% in 2011 to 63,1% in 2014. • In 2011, a larger proportion of youth participated (51,1%), but by 2014 this had reversed in favour of adults (54,4%). • In both 2011 and 2014, participation in the Expanded Public Works Programme was dominated by persons with an educational qualification lower than matric (65,6% and 69,9%). • In 2014, Eastern Cape accounted for 22,7% of those who participated in these programmes, followed by Gauteng (17,0%) and KwaZulu-Natal (14,9%). • In 2014, seven out of ten of those who participated in the EPWP and other government job creation programmes were employed.” This was up from 56.9% in 2011. • The survey also found that 4 out of every 5 participants who were employed had a formal sector job. 38

39. Thank You!