Department of Trade and Industry Trade and Investment South Africa

1. Department of Trade and IndustryTrade and Investment South Africa Youth Internship Programme YiP Presented by Marie Roux Programme Manager

2. Background The Canadian supported SAITIS Project, hosted by the DTI from 1999-2002, aimed at developing a strong South African ICT Sector to contribute to: - Sustainable economic growth - Social upliftment - Job creation - Empowerment The SAITIS Project focused on four economic areas and developed a set of goals, objectives, strategies and actions for: - The ICT Industry - Human Resources in the ICT Sector - Usage of ICT in other sectors - ICT Innovation

3. Background Following the strategy phase, 14 key initiatives were identified for implementation. Some of these initiatives had a direct influence on the development of the YiP. • Governance and Organisation for the ICT Sector – The DTI established an ICT Development Council consisting of more or less 40 organisations from the ICT Sector. The council is chaired by Minister Alec Erwin. This council focuses on two main areas for development. • Marketing and Communications for the ICT Sector – SAVANT launched on 3 March 2003. • HR Development – YiP pilot launched on 17 August 2002. Black ICT SMME database supported project underway. • Collection of ICT Labour Market Statistics– The SAITIS Project, ISETT SETA and the Department of Labour joined resources in order to implement an audit of ICT skills in both the ISETT sector as well as the enabled sector. The study was published in July 2002 by the ISETT SETA.

4. Background … 14 key initiatives … • Youth Internship Incentive Programme – Another one of these initiatives, developed after consultations with the Minister’s ICT Development Council, government, SETA’s, personnel agencies and other organisations, focused on training unemployed youth for the ICT sector. The SAITIS Project implemented a survey on over 300 organisations in the ICT Sector in order to have a closer look at training in the ICT Sector. Research questions included capacity and training methods used, average cost per intern per internship, average duration per programme, entry level requirements for internships, major barriers, etc. The SAITIS report proposed the establishment of a Government facilitated Youth Internship Incentive Programme.

5. Vision The YiP aims to be a leading partner in rapidly building and sustaining a growing South African ICT sector through the provision of skilled and experienced individuals according to the needs of ICT and ICT supported industries. • 1. By encouraging organisations with existing internship programmes to grow their intake of learners, through incentivising these organisations with partial grants, and • 2. By encouraging organisations with no internship programmes to develop such programmes, or alternatively to adopt an existing Youth Internship Programme. • 3. By assisting the ISETT SETA to accelerate SETA processes and procedures.

6. Major role players The DTI The DTI is seen as the champion of the YiP. The DTI allocated R12M for the implementation of the YiP. The YiP advisory board is also chaired by the DTI. The ISETT SETA A memorandum of understanding exists between the DTI and the ISETT SETA. This MOU sets out support from the ISETT SETA to the YiP. The DTI ICT Development Council The ICT Development Council plays a major role as an advisory body to the YiP. At each meeting of the council, progress on the YiP is being discussed. YiP Advisory Board The YiP has an advisory board that meets at a quarterly basis. The board has been established for to measure progress and give strategic input to the YiP.

7. ISETT SETA as a partner MOU was signed with the ISETT SETA for support of the YiP. • Funding where possible. • Resources for the YiP. • SMME development. • Development of a skills portal to assist with information dissemination. • Learnership development: The ISETT SETA and the YiP team will work towards registering each programme supported by the YiP, as a skills programme or learnership leading to a qualification.

8. Baseline implementation plan The YiP baseline study comprises of three components: Strategy Plan, Financial analysis and Research Report. The Strategy Plan sets out a set of strategic objectives, formulated from four prospectives: • Learner Strategic objectives: • Grow intern uptake to at least an additional 3,000 interns by 2005 • Increase the number of intern applicants processed by 200% per year by raising an awareness internship incentive scheme • Achieve >95% intern placement by internship providers and externally in the market within three months of completing the internship programme • Financial strategic objectives: • Reduce the administration costs to grant disbursements to less than 3% on an annual basis • Ensure that the non-performing interns (failure of programme) is less than 3% • Source up to R315million funding per annum to initiate and sustain the internship incentive scheme up to 2005

9. Baseline implementation plan • Internal process strategic objectives: • Ensure a service level of >80% with internship providers to ensure long-term sustainable partnerships are achieved by the YiP • Register at least 20 new internship providers per annum by developing and maintaining effective registering and monitoring procedures • Embark upon support promotion strategy to achieve ICT industry awareness of internship incentive scheme • HR/Learning growth strategic objectives: • Ensure vibrant learning organisation by ensuring staff turnover is less than 5% The measures of these objectives were derived from the Research Report. Workshop discussions refined the targets to ensure that they were both realistic and achievable. Discussions regarding the key measures of the scheme also provided an important input into the establishment of the targets.

10. Funder Funder /s /s Potential Potential of X% of X% Interns Interns Possible Possible funders funders : : Trainer providers Trainer providers • • NSF NSF • • SETAs SETAs • • Donor agencies Donor agencies YiP Internship Providers Internship Providers Currently managed by the DTI and ISETT SETA with assistance from the pilot provider organisations YIIPCo YiP ( ( Funders Funders of 100 of 100 - - 80%) X%) YIIPCo YiP Programme Programme Administrator Administrator Management Management Banking Banking Insurance Insurance Retail and Wholesale Retail and Wholesale Financial Financial Government Government Manufacturing Manufacturing ICT ICT Education and Education and Training Training Advisory board: Advisory board: • NSA • DTI • ISETT SETA • DoC • DoL • DTI ICT Dev Council • DoE • IISA • COSATU • WITS Link Centre • Technikon Pretoria Stakeholders: Stakeholders: • • DOL DOL • • SETAs SETAs • • DTI DTI • • DOC DOC • • NSA NSA • • Etc. Etc. Business Model

11. Baseline implementation planOperating processes and responsibilities It is critical that the YiP integrates with key stakeholders on a regular basis to ensure the success of the programme. The YiP will not function in isolation, and will be dependent on inputs from the Advisory Board, the SETAs and the Internship and Training Providers.

12. General Manager (1) General Manager (1) Support Manager (1) Support Manager (1) Operations Manager (1) Operations Manager (1) Financial Manager** (0) Financial Manager** (0) Intern administrator (1) Intern administrator (1) Internship provider Internship provider HR Manager** (0) HR Manager** (0) Administrator*** (0) Administrator*** (0) Communications & Communications & Legend Legend Legend Legend Legend Legend Marketing Manager* (0) Marketing Manager* (0) Filled positions Filled positions Filled positions Filled positions Filled positions Filled positions Vacant positions Vacant positions Vacant positions Vacant positions Vacant positions Vacant positions Administration / IT systems Administration / IT systems Managerial Managerial Managerial Managerial Managerial Managerial Officer (1) Officer (1) (x) (x) (x) (x) (x) (x) No. of people No. of people No. of people No. of people No. of people No. of people * Roles fulfilled by General Manager during pilot * Roles fulfilled by General Manager during pilot ** Roles fulfilled by Support Manager during pilot ** Roles fulfilled by Support Manager during pilot ***Roles fulfilled by the Operations Manager during pilot ***Roles fulfilled by the Operations Manager during pilot Baseline implementation planOrganisational Structure The following organisational structures, relevant to the establishment of the YiP, are described below in line with the phased roll-out of the YiP.Pilot organisational structure.

13. General Manager (1) General Manager (1) Support Manager (1) Support Manager (1) Operations Manager (1) Operations Manager (1) Financial Manager (1) Financial Manager (1) Intern administrator (3 Intern administrator (3 - - 14) 14) Internship provider Internship provider HR Manager (1) HR Manager (1) administrator (1 administrator (1 - - 5) 5) Communications & Communications & Legend Legend Legend Legend Legend Legend Marketing Manager (1) Marketing Manager (1) Filled positions Filled positions Filled positions Filled positions Filled positions Filled positions Vacant positions Vacant positions Vacant positions Vacant positions Vacant positions Vacant positions Administration / IT systems Administration / IT systems Managerial Managerial Managerial Managerial Managerial Managerial Officer (1) Officer (1) (x) (x) (x) (x) (x) (x) No. of people No. of people No. of people No. of people No. of people No. of people Baseline implementation planOrganisational Structure Organisational structure in 2003 and beyond.

14. Targets/Requirements/KPI’s The YiP will focus on targeting the following group of individuals: • Unemployed matriculants with an aptitude for ICT – The YiP encourages organisations not to use first line filtering such as martic maths and science. • Unemployed graduates from Universities and Technikons – The figure of over unemployed 300 graduates has been mentioned before. The intake will follow recommendations from the National Skills Development Strategy, and the YiP will ensure at least: • 85% black learners • 54% women learners • 4% learners with disabilities The YiP has two key performance indicators: • 95% pass rate • 95% permanent placement

15. The Pilot Programme

16. Pilot Programme • Started in May 2002. • Launched by the Minister on 17 August 2002. • 6 organisations were selected to take part in the pilot programme. • CS Holdings – Software Developer • Esselenpark – IT Technician training • IBM – IT Technician Workplace • Arivia.kom – IT Technician Workplace • Siemens – IT Technician Workplace/Telecommunicaions installations • SITA – Business Analyst, ISS, IT Trainer Support, Software Developer • 120 unemployed learners will be trained in the different skills areas. • DTI allocated R12m for the implemetation of the pilot. • Pilot implementation in Gauteng. • Pilot was implemented to evaluate and enhance the design of the programme. • Setting up of structures, processes and procedures for support.

17. Pilot Programme - Progress • All learners now entered workplace part of the programme. • 100% pass rate of all learners. • 100% placement rate so far (in fact, the YiP team found more than double the employment opportunities needed). • Structures, processes and procedure are 90% in place for the roll-out of the next phase.

18. Pilot Programme – Models A: Encouraging organisations with existing credible internships to take in additional number – more than they need. • One provider organisation offering both theoretical training as well as workplace experience within the one organisation. This means that the learners will receive their theoretical training and workplace experience at the same organisation. • Examples in the pilot programme of this model are: • CS Holdings • SITA Trainer providers Trainer providers Internship Providers Internship Providers ( ( Funders Funders of 100 of 100 - - 80%) X%) 12 months training Theory + Work exp Banking Banking Insurance Insurance Retail and Wholesale Retail and Wholesale Financial Financial Government Government Manufacturing Manufacturing ICT ICT Education and Education and Training Training

19. Pilot Programme – Models A: Encouraging organisations with existing credible internships to take in additional number – more than they need. • Two providers: One accredited training centre partnering with one or more large organisations that will provide workplace experience. The agreement with the YiP remain with the workplace provider. • Examples in the pilot programme of this model are: • Esselenpark training 30 learners • 15 – IBM • 10 – Siemens • 5 – Arivia.kom Theory at accredited training provider Trainer providers Trainer providers Internship Providers Internship Providers ( ( Funders Funders of 100 of 100 - - 80%) X%) 12 months training Work exp at selected organisation Banking Banking Insurance Insurance Retail and Wholesale Retail and Wholesale Financial Financial Government Government Manufacturing Manufacturing ICT ICT Education and Education and Training Training

20. Pilot Programme – Models B: Encouraging organisations with no internship programmes to either develop a programme or adopt an existing programme. This model was designed in the pilot phase when Accenture as a client of CSH offered employment to a number of learners prior to the completion of the programme. In order to secure the employment opportunities, the YiP and CSH assisted Accenture and the workplace component was relocated to Accenture. • Two provider organisations: One provider organisation offering both theoretical training as well as workplace experience within the one organisation. The provider organisation then place learners at other organisations for the workplace component. • Examples in the pilot programme of this model are: • CS Holdings • Accenture Original agreement – 12 months training Theory + Work exp Trainer providers Trainer providers Internship Providers Internship Providers ( ( Funders Funders of 100 of 100 - - 80%) X%) When opportunity presented, Learners are placed at Another location. Agreement Still with first provider. Banking Banking Insurance Insurance Retail and Wholesale Retail and Wholesale Financial Financial Government Government Manufacturing Manufacturing ICT ICT Education and Education and Training Training

21. Pilot Programme – Models C: A new model was introduced in the pilot phase. This model supports training and capacity building within SMMEs. Siemens, as a pilot provider, sub-contracts the installation of telecommunications infrastructure in Africa, to SMMEs. The lack of skilled individuals for SMMEs became apparent. Siemens offered the following to SMME in order to assist them with winning tenders. • Skilled individual to assist with the specific tender requirement. • Training of this individual. • Mentorship and assessment of this individual. • Allowance for the individual, since his workplace component is with the SMME. • R50K tax incentive will go to the SMME.

22. Structures processes and procedures

23. Structures in place Organisational: • Agreements: An agreement is in the process on development. This agreement will be the same for all organisations and consists of four components: Statutory information, operational requirements from the YiP, 12 month programme from the provider and a letter of acceptance of the agreement. • Quality measures: Accreditation and approval by the SETA, monthly progress reports and bi-monthly meetings with all organisations. Learnership development: • The YiP is currently working on 12 qualifications and 12 learnerships to be used for the implementation of the next phase. • Internships supported in the next phase will require a registered learnership leading to a qualification. Learner applications: • A web-based database has been developed to assist with learner applications. Two call centers are assisting with the population of the database.

24. Structures in place Learners with disabilities: • During the pilot phase, a number of learners with disabilities were tested for aptitude. The results were incredibly poor. • The YiP team is currently working on a proposal for the inclusion of learners with disabilities. This proposal includes a skills programme as bridging, infrastructure assistance to organisations developing opportunities for people with disabilities, a strategic working group, etc. Marketing and Communications: • The YiP is currently being supported by the Advertising unit of the DTI. Migration of the YiP to the ISETT SETA: • The first step for migration has been implemented. The YiP team relocated the YiP Project Office to the ISETT SETA.

25. 2003 Extension and further roll-out

26. Extension and roll-out The original baseline implementation plan suggested the following targets for the roll-out: 1st intake – pilot 100 learners 6 organisations R12M 2nd intake – 2003 500 learners 30 organisations R60M 3rd intake – 2004 1000 learners 60 organisations R120M 4th intake – 2005 3000 learners 80 organisations R315M Discussions with industry and other bodies, as well as the success of the pilot project, introduces new targets 1st intake – pilot 120 learners 6 organisations R12M 2nd intake – 2003 1000 learners 60 organisations R63M 3rd intake – 2004 2000 learners 80 organisations R83M 4thintake – 2005 3000 learners 150 organisations R93M

27. Current ICT Labour Market ICT Vacancies ICT sector– SA Labour Market Stats – June 2002 (ISETT, DoL and DTI)

28. Current ICT Labour Market Current ICT vacancies in non-ICT sectors – SA Labour Market Stats – June 2002 (ISETT, DoL and DTI)

29. Extension and roll-out • The 2003 phase of the YiP will be implemented in the following regions: • Johannesburg/Midrand/Pretoria • Cape Town • Durban • Port Elizabeth • East London • Rustenburg • Mpumalanga • R60K per learner per year/internship will be granted for the 2003 extension. • The 2003 extension will be implemented with 1 000 learners through 60 originations. • The YiP extension will be implemented in 10 skills areas: Project Management, Software Development, IT Technician, Business Analysing/ERP, ISS, Telecommunications installation, IT Trainers. • These internships will all be implemented through a learnership leading to a SAQA qualification.

30. Extension and roll-out Organisation in 2003 Organisation in 2004 Organisation in 2005 • With additionality as a core objective, the following measure were put in place in order to ensure that the incentive is not being taken advantage of: • From the WSP of the organisations, the YiP team will follow the track of training for each organisation. The following intake per organisation is currently under discussion. • In the 2004, the YiP team is expecting to start seeing real job creation opportunities. • Organisations are not obliged to employ these learners, but will need to assist in finding employment for the learners. 30% own intake, own costs 40% own intake, own costs 50% own intake, own costs 70 % additional intake at R60k incentive per learner from the YiP 60 % additional intake at R40k incentive per learner from the YiP 50 % additional intake at R30k incentive per learner from the YiP

31. Involvement in other initiatives

32. Involvement in other initiatives Government to government initiatives The YiP had meetings with three embassies/MNE’s for outstanding learners to receive work experience in another country. This work experience component is over and above the experience through the learnership. These initiatives will be finalised in the near future. The countries participating are: - India – through Consillience and Tata Infotech - US – Through IBM - Australia – Through Dimention Data The governments of these countries or the organisations in some cases to cover all costs with regards to this opportunity.

33. Involvement in other initiatives Digital divide initiative Microsoft SA is currently importing refurbished machines from the UK for installment in schools. Microsoft offered 25 machines to each of the “disability” organisations currently working with the YiP. This will enable the organisation to implement the skills programme developed to upskill these possible learners. Siemens has offered 50 technicians to install the machines as well as internet and e-mail access for all the organisations.

34. Involvement in other initiatives The YiP team is also part of several task teams in both government and the private sector, focusing on HR development. The YiP also have friendly relationship with organisations such as: • Ekurhuleni • Youth Development Trust • Orlando East community Centre • Rustenburg rural community centre

35. YiP Information Response management has been put in place through the ISETT SETA call centres. Learners and possible future providers are invited to contact the call centre on: 0861 120 012 0861 843 384