Achieve - Toyota changes lives through skills development - MerSETA
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June 2015 ISSUE 28
ISO 9001:2008
Achieve
THOUGHT LEADER IN SKILLS DEVELOPMENT
Toyota
changes lives
through skills
development
TALKING NOTES | A VIEW FROM THE TOP | Features | EVENTS OF THE QUARTER
ISO 9001:2008
Vision
Leaders in closing the skills gap
Mission
To increase access to high quality and relevant
skills development and training opportunities
to support economic growth in order to reduce
inequalities and unemployment and to promote
employability and participation in the economy
Achieve
ISO 9001:2008
/ June 2015
Contents
Contents
Contents
on the cover: Ongezi Mdladlamba and Mxolisi
Njhapha, two of the apprentices at Toyota SA
ACHIEVE June 2015 ISSUE 28
PAGE 10 PAGE 20 PAGE 24
Women weld their way into a Is the skills shortage far worse No chance of a total blackout –
traditionally man’s world than admitted? Eskom boss
SETA NEWS Publisher
4 Talking notes merSETA
5 A view from the top Editor
6 Artisan desk Sibongiseni Ziinjiva
Ka-Mnguni
Success stories Proof reading
Janet Lopes
10 Women weld their way into a traditionally man’s world
13 Toyota changes lives through skills development Layout and design
Rixile Mzansi Trading
FEATURES Contributors
16 Skills development key to industrial transformation Helen Brown
Dr Raymond Patel
19 SA’s post-school education sector experiencing phenomenal growth
More Manda
21 No chance of a total blackout – Eskom boss Thomas Hartleb
22 Billions set aside to support budding industrialists
24 Is the skills shortage worse than admitted? Views and editorial opinion
expressed in the merSETA
26 SA’s education costs continue to outstrip inflation
magazine are not necessarily
28 Metal Chamber Phase II step down research report those of merSETA, the
publication or the publisher.
30 Electricity crisis a major economic constraint
Write to: The Editor, Achieve
magazine, PO Box 61826,
INDUSTRY NEWS
Marshalltown, 2107 or
31 Goodyear introduces tyre containing next-generation silica email: achievenewsletter@
32 Easter holidays put new car sales in the slow lane merseta.org.za
EVENTS
33 SEIFSA rewards excellence
34 Kgabo Cars at the forefront of skills development
Achieve / June 2015 3
From the Editor
Talking Notes
A
s you read this, South Africa It was former African National Congress short of filling this acute gap, a situation
will have celebrated the 39th president Oliver Reginald Tambo who bound to affect the performance of the
anniversary of 16 June 1976, the said: “A nation that does not invest in country’s economy going forward.
day when, at the height of apartheid its youth does not invest in its future.”
rule, hundreds of Soweto school The electricity crisis is on the lips of
children were shot dead by police for It is thus pleasing to know, as one of our everyone in South Africa today.
voicing their anger and disgust at being stories we are carrying in this issue of Renowned political and trend analyst
taught in Afrikaans — the language of Achieve reveals, that over R50 billion in JP Landman spoke about the problem
their oppressor. loans and bursaries has been awarded at a breakfast meeting of the Motor
to more than 1.5 million students across Industry Staff Association recently. He
The youth took to the streets in protest the country since the inception of the said intermittent power supply was a
against Afrikaans being used as a Tertiary Education Fund of South Africa major constraint to South Africa’s bid
medium of instruction in black schools (now NSFAS). to grow the economy. The question is:
because of the realisation that the How much is the manufacturing and
language would not take them far in life It is also heartening to note that an engineering sector affected by this?
other than to make them pliable servants increasing number of players — big
of the universally discredited regime and small, such as Toyota SA as well On the black economic empowerment
and its supporters and beneficiaries. as Elinem Construction in Newcastle, front, we carry a story on the
KwaZulu-Natal, and Kgabo Cars in R23 billion set aside by the Department
They also knew that as a government Soshanguve, north of Pretoria — are of Economic Development over the
serving only the narrow interests of a putting their shoulders to the wheel to next five years to fund “new players”
minority, there was no way in which the deal with the critical shortage of skills as the government makes a big push to
regime was going to invest meaningfully in the engineering and manufacturing industrialise the economy.
in their future. sector, the depth and complexity of The programme will significantly
which are also being closely examined contribute to the transformation of the
After all, the then government expected in this issue. industry and the creation of jobs.
of them to be “the hewers of wood and But the big question is: Is the skills
drawers of water”, as Hendrik Verwoerd, shortage in South Africa worse than Be blessed!
the architect of apartheid, once said, admitted?
without batting an eyelid. The youth of
1976 would have none of that. According to the Artisan Training
Institute (ATI), there are at present as
Thirty-nine years on, South Africa is a many as 829 800 vacant positions for
democratic and non-racial society that highly skilled workers across a diverse Sibongiseni Ziinjiva Ka-Mnguni
is, among other things, making serious range of occupations in South Africa —
efforts to undo the immeasurable and this includes posts for artisans. Disclaimer: Please note that the
damage that Bantu Education, Industry pundits have put the artisan editor reserves the right to withhold
Verwoerd’s creation, has done to the shortfall at between 40 000 and 50 000 articles due to space limitations or
country. and, if this figure is correct, we are falling for any other reason.
4 Achieve / June 2015
CEO’s column
A view from
the top
Provisional results for the 2014-2015 financial year indicate
that the merSETA has exceeded its targets, making a solid
difference to the skills development arena in the country
O
ur preliminary results for ii. Establishing and promoting ther Education and Training
2014-2015 must still be learnerships through: system;
assessed and accredited (a) Collecting and disburs- � Building work-integrated learn-
by the Auditor-General. But initial ing the skills development ing linkages between Technical,
statistics indicate that the merSETA levies in its sector; approv- Vocational Education and Train-
has exceeded its training targets for ing workplace skills plans ing (TVET) colleges and their
the period. This is further proof that and allocating grants in industrial counterparts; and
the SETA system, when fully opera- the prescribed manner � Strengthening opportunities for
tional, can make a sterling differ- to employers, education employment growth in the sec-
ence to the training and upskilling and training providers and tor through industrial competi-
landscape in our country. workers; tiveness and innovation.
Our mandate includes: (b) Fulfilling the functions of an
i. Developing a sector skills plan ETQA as delegated by the In promoting the responsiveness
within the framework of the QCTO; and of TVET colleges to the intermedi-
National Skills Development (c) Monitoring education and ate skills needs of the sector, the
Strategy; and training in the sector. merSETA also launched Dual Sys-
tem Apprenticeships, a DHET pilot
The Operations Division contributed initiative to improve the relevance
significantly to the merSETA’s of skills taught at colleges and to
achievement of 25 out of the 27 strengthen post-qualification em-
numerical indicators. The merSETA ployability.
achieved 25 targets by more
than 120%, and one target by These aspects of our success
100%. Only one target was under- indicate that the workflow process
achieved, namely unemployed is exceptional. Our figures still need
bursary candidates completing to be confirmed by the relevant
their studies as a result of the authorities.
Department of Higher Education
and Training’s request to transfer But once again, indications are that
all available funds in this area to we have a winning formula.
the National Student Financial
Aid Scheme (NSFAS).
The Projects Development Unit
has made substantial progress
in respect of the following areas of
work: Dr Raymond Patel
� Strengthening the public Fur- CEO – merSETA
Achieve / June 2015 5
Artisan Desk
The Vocational Educator:
A critical catalyst in the
Decade of the Artisan
New inspiration of teaching variants searching for between institution type, (i.e. TVET
One of the most gratifying parts of my direction. college:in-company academy:private
research work is the privilege of site technical training centre) or between
visits to public Technical, Vocational The Vocational colleges teaching the same
Education and Training (TVET) Educator and COMET occupation. The notable value of
colleges, supported by discussions The COMET Project is starting to these tests to the educator is that, if
with college management. build new insights for vocational the educator uses the first result as a
Most importantly, it is sharing educators who seek to achieve gains baseline evaluation, he or she will be
passionate insights of educators in student learning. This observation able to implement post-test teaching
who truly honour their vocation. is drawn from recent feedback adjustments and then measure the
When compared to the company- sessions with vocational educators impact of these adjustments in the
based training academies, there based at TVET colleges whose next test series.
is no difference in wanting to be a students participated in the COMET
good educator – rather a tapestry 2014 test series. The merSETA had A Structured Discussion
originally invited three colleges to with Vocational Educators
participate in the first pilot of 2011 for The feedback sessions to educators
the purpose of measuring problem- were structured in the form of a
solving capabilities in the electro- focus group at each teaching site,
mechanical field of study (millwright). starting with a presentation of
Welding, electrical and mechatronics individual student COMET 2014
were added to the 2014 test series, results and followed by observations
with two more colleges participating. from combined test site results.
The motor mechanics occupation is These additional observations were
being added to the September 2015 presented in a way that encouraged
test series. deeper consideration and dialogue
among educators. These additional
Results of these COMET observations, shared with educators,
tests can be benchmarked included the following:
(i) That the results of students in
study years 1, 2 and 3 showed
no significant difference in
average scores, indicating
a stagnation in competence
development;
(ii) That, in the motivation ques-
tionnaire completed at the time
Ms Helen Brown, Senior
6 Achieve / June 2015 Manager: Projects Development
Artisan Desk
of the COMET test, there was (iii) That the top 10 students of (iv) That in reviewing the
confirmation that the larger each occupation were able average scores of teaching
proportion of students found to achieve high levels of sites that had produced a
the test task “interesting and competence. Educators were national WorldSkills winner
very useful” as described in able to identify their students (thus demonstrating skill
Figure 1 below: on this list; proficiency), those sites had
also managed to achieve
Figure 1: Student responses to motivational question
higher average COMET test to their students in a pre- described below in order of interest:
scores than those that had scribed way. 1. Educator cooperation and
no WorldSkills winner, as learner behaviour: Classroom-
demonstrated in figures 2 and Outcomes and new based and workshop-based
3 on the next page. directions: educators concurred that they
The feedback workshops stimulated were not able to predict the top
(v) That educators often transfer useful discussions among COMET test performers among their
their problem-solving horizon educators. Educators were generally learners. They were often surprised
to the learners as indicated motivated to interrogate the content to learn who the top COMET scoring
by Prof Felix Rauner during of the feedback and find ways to learners were. This commonly led to
his presentation at the DHET- teach more cooperatively among a joint reflection on learner behaviour
merSETA TTPRIS Conference themselves and in partnership with during both theoretical and practical
in December 2014. the industry. The most notable teaching sessions. Most educators
observations in these discussions concluded that students with top
(vi) That educators should man- were common among more than COMET scores generally asked
age the report-back of results 70% of educators. They are more questions about the topic
Achieve / June 2015 7
Artisan Desk
Figure 2: Top 30% average competence Figure 3: Average competence profiles of all tests
profiles at “WorldSkills winner” teaching site. at all teaching sites.
being taught. They also took longer customers set standards for quality Some suggestions made:
to complete practical assignments and cost, the importance of safety
and, in many cases, had a more considerations and what criteria the Consider the flexibility of a three-year
mature identity with the skilled work company uses when selecting new vocational qualification as opposed
of the occupation being taught. skilled workers – i.e. making factory to three one-year qualifications. Do
tours valuable to the learning process not recognise colleges’ performance
Some suggestions made: requires much preparation on the for short-term “work-placements”
part of the educator and the learner. but rather for proven and sustained
Technology theory educators need employment by means of an ap-
to find ways of cooperating with 2. “Teaching to the test”: Educators prenticeship/learnership agreement
their practical workshop instruction commented that in many cases, either during or post the full NC(V)
counterparts by way of linking students who scored top marks qualification as an indicator of suc-
theory to practical tasks taught. against the taught curriculum were cessful college-to-work transition.
Some examples would be to jointly not top COMET scorers. Further Also, consider a 6-12 month bridging
implement COMET learning tasks, discussion on this topic led to programme for entry into engineering
first as a group assignment and then educators reflecting on their teaching related NC(V) courses.
individually as a means to develop method based on preparing for the
conceptual problem-solving skills test against a set curriculum, rather 3. Not enough time for practical
linked to real problems encountered than teaching that would enable mastery: Educators conceded that
in the world of work. deeper problem-solving abilities in they often emphasised the theory
the broader workplace context of the of the occupation over practical
Practical assignments and theory occupation. “Teaching to the test” mastery and that this should be
classes should be complemented was seen as a gain in the student addressed in the curriculum design,
with a visit to a local company that pass rate at the cost of the students’ with more emphasis on workshop
would expand on how the concept/ learning and development that would practice, work-integrated learning
product/assignment fits into a support a more successful college- and problem-solving.
broader work process, how industrial to-work transition.
8 Achieve / June 2015
Artisan Desk
Learners and teachers: A strong relationship when it comes to competence
Some suggestions made: Educators agreed, however, that it observations have a number of
would be very difficult to implement limitations.
In the case of the NC(V) programme, COMET teaching practice where
support the curriculum with there was no evidence of educator Firstly, although focus groups have
e-learning and e-self-assessments collaboration. some advantages in the qualitative
that free up formal class time in analysis of data, the observations still
favour of practical mastery of the Some suggestions made: need to be considered in the context
occupation; increase scope and of deeper analysis of data from the
depth of practical assignments; � Implement a COMET Educators' large scale COMET test held in 2014.
use industrial experts from local Certificate;
companies to assist in the original � Consider a Continuous Secondly, vocational educators
scope and assessment of practical Professional Development (CPD) represented in this exercise are a
assignments and keep college points system for vocational small sample of the total population
workshops open on a 12- to 14-hour educators that is quick and easy of vocational educators.
roster (with controlled access) to to implement;
support student access to practical � Educators earning CPD points Thirdly, all the variants of educator
hours for individual mastery. should not lose commensurate instructional practice are not included
teaching hours in the regulated in the focus group discussions and
4. Value of occupational problem weekly requirement; and might, therefore, require additional
solving skills recognised: � CPD points should be incorporat- research inquiry.
Educators were motivated to further ed into the Department of Higher
develop COMET teaching methods Education and Training’s pre- Finally, these observations,
in the classroom supported by scribed college funding model, nevertheless, attempt to inform
simulated practical task alignment as should post-qualification tran- the work of educational experts
to real work processes. Educators sition into sustained employment committed to strengthening
were motivated to cooperate in a of students. qualitative improvements in the
community of COMET practice. It must be conceded that these South African TVET system.
Achieve / June 2015 9
Success Story
Women weld their way into
a traditionally man’s world
Achieve visits Elinem Construction, where women have
carved a niche for themselves in an unfamiliar territory
‘
Elinem Construction apprentices and management.
When we started here, our
male colleagues looked down upon
us. When we asked for help, they
would just tell us: You said you
‘
could do this job, so do it
10 Achieve / June 2015Success Story
T
he skills shortage in South Three of South Africa’s welders with understand what a welder is. They
Africa has become so critical international qualifications are now think you are just a mashisela; you
that many local companies in working abroad. just make burglar doors. But there’s
the construction and steel sectors actually a lot more to it than that,”
have to import skilled welders from To address this massive skills short- said Maphalala.
countries such as South Korea, age, Elinem Construction, which is
Argentina and the Philippines. based in Newcastle, KwaZulu-Natal, Contrary to perception, welding
started training welders and boiler- is involved in about 98% of all
The shortfall of welders in South makers in 2012. manufacturing processes – if not
Africa has been estimated at more in the item produced, then in the
than 12 000. Only six people have To date, the company has trained 30 machinery used to produce the item.
in the past five years obtained boilermakers and 60 welders. Welding is regarded as the backbone
internationally recognised welding Significantly, many of the trainees of the manufacturing industry as any
qualifications in the country are young women seeking to infrastructure project such as roads,
compared with 2 000 in Germany. make inroads into fields that were rail and shipping requires a certain
historically dominated by men. amount of welding.
Londiwe Maphalala, Xolisile Skosana Zungu says being a woman welder is
and Nothando Zungu, three of the special in many respects.
women welders who qualified last She said, unlike other professions,
year, shared their experiences and “it’s engaging and involves analyti-
journey to success with Achieve cal thinking, interpersonal skills and
during its visit to Elinem recently. endurance”.
All three agreed that being women “Being a female welder is unique …
in a highly technical environment because people tend to think only
such as welding was extremely men can be welders,” she said.
challenging — some men still find it
hard to accept women holding these Zungu added that when a woman
positions. was involved in a technical field, she
was always reminded that she was
“When we started here, our male a woman.
colleagues looked down upon us.
When we asked for help, they would “It is challenging because you have
just tell us: “You said you could do to prove yourself at all times. I
this job, so do it’,” Maphalala said. didn’t know anything about welding
until I applied for a learnership at
Maphalala took exception to how Elinem Construction. They made
technical fields were perceived. me understand what welding was all
“Unfortunately most people don’t about. That changed my life because
Elinem Construction Training Manager Warren Burchell. Elinem Construction best welder Nothando Zungu.
Achieve / June 2015 11Success Story
I was not employed at the time. I to my life. I am at present taking have set their mind to it. My vision is
was a student, hoping that one day I care of 10 people, including my to own a construction company one
would get the opportunity to work.” grandmother, and life is no longer as day,” said Maphalala.
hard since I started working here.”
Maphalala is regarded as the best Zungu encouraged other women to
welder at Elinem Construction. Maphalala said it was a take up welding as a career, saying:
“I am humbled. It’s all thanks to misconception to think that women “It’s not only about the good money
Elinem Construction. As women could not lead. that you make but also about the
welders, we took the opportunity number of opportunities available in
given to us seriously because we “We have seen a number of the industry.
always have to prove ourselves in women emerge since the dawn
this industry. We have to prove that of democracy, especially young She, however, issued a warning.
we can do what men can do as women in politics, business and “All that glitters is not gold. This field
welding has traditionally been seen other sectors of our economy. That is demanding physically and this
as a man’s world,” Maphalala said. shows that women can lead just like does not make it any easier for a
men. woman. Working at heights can be
Skosana is excited about the oppor- a daunting task at first but as time
tunity given to her by Elinem. “As young women, it gives us comfort goes by you get used to it.
She said it had changed the way to know that we are following in the
she viewed welding and the role of footsteps of the giants that have ”I couldn’t do it at first but as time
women in technical fields. walked before us. I think women can went by, it became a piece of cake.”
“It has brought a new dimension do anything at any time once they
This was corroborated by Zungu,
who said that, among other
Welding her
challenges, women welders often
way up: Xolisile
had to deal with gases.
Skosana.
“These gases can affect your fertility.
Some of us are still young and would
like to have families in the near
future,” she said.
There are sufficient opportunities
for welders in South Africa, mostly
in the energy and manufacturing
sectors as the majority of
engineering processes, particularly
in manufacturing, start with welding.
Manufacturing is key to economic
growth and increases levels of
empowerment.
Welding is an important production
process in almost all manufacturing
activities. If this sector grows, job
opportunities in welding and related
industries will increase, resulting
in many employment and career
opportunities for South Africans
who have educational qualifications
ranging from Grade 10 to a post-
graduate degree.
12 Achieve / June 2015Success Story
Toyota changing lives
through skills development
Statistics show that the country may have a shortfall of 40 000 qualified
artisans against the current production rate of about 13 000 qualified
artisans a year. To help mitigate this shortfall, Toyota South Africa has
undertaken a vigorous training drive. This could not have come at a
better time as the automotive sector is embarking on an aggressive drive
to accelerate the training and development of qualified artisans and a
technically skilled labour force. Sibongiseni Ziinjiva Ka-Mnguni visited
the Toyota Academy in Durban and spoke to three of its apprentices.
Some of the Toyota Academy apprentices.
Achieve / June 2015 13Success Story
Apprentice 1:
Stanley Phare from Matatiele in
the Eastern Cape studied civil
engineering at Coastal College
He was doing N6 in electrical
engineering when he came across
this opportunity at Toyota.
SZM: What brought about this
switch from civil engineering to
electrical engineering?
SP: After completing my qualification
in civil engineering, I couldn’t find
fulfilment.
Another contributing factor was Toyota SA's Head of Department: Learnership, Mr Andy Moodley;
the lack of opportunities in civil Toyota SA’s Senior Manager: Technical Training, Mr Owen Dickson;
engineering compared to electrical merSETA Client Liaison Manager Mr Musa Mtshali; Toyota SA's Senior
engineering, hence the change. Manager: HRD Chrissy Berichon; and Toyota SA’s Vice-President:
Toyota Academy and External Affairs, Mr Len von Graevenitz.
SZM: How has your training been SP: I am very grateful to Toyota. It has lucky to get on the apprenticeship
and what is the duration of your opened my eyes. I now look at things programme the following year. I am
learnership? differently. Now I understand why I now doing my final year, preparing to
SP: The training has been fantastic should know various things and not qualify as an artisan. I will be doing
from the beginning. We are on focus on one thing. This learnership my trade test between June and
a Mechatronics learnership. has changed my life completely, and September this year [2015].
Mechatronics is a combination I am now a responsible citizen.
of electrical and mechanical SZM: You are so close to qualifying
engineering. I like the synergy Apprentice 2: as an artisan, what goes through
between the two. When you do Mxolisi Njhapha, who lives in Umlazi, your mind at the moment?
electrical engineering you also need near Durban, had to choose between MN: It is just a matter of getting the
some skills from the mechanical commercial and technical studies certificate. But at the same time I
side so you can do your job well. when he passed Grade 9. He chose am nervous. I am going to the real
The learnership is 10-and-a-half- technical studies. From Grade 10 world after this – it’s only then that
months long and I started here on he started doing technical drawing, the reality will dawn. I have been
1 August 2014. As soon as I finish and mechanical and electrical training, being in the plant, I have
my learnership, I will apply for engineering. been working with other artisans. I
apprenticeship and then do my trade was under someone. Now I will be
test. SZM: What informed your decision on my own.
to study technical subjects?
SZM: How important is the training MN: It was informed by advice from SZM: How are the preparations for
you gained and how is it going to my older brother, who did technical a trade test coming along?
help you in the future? subjects at high school. He told me MN: The preparations have been
SP: With the invaluable skills I’ve there were a lot of opportunities in good. I think I am on the right track.
attained, I can start my own business engineering. So I took his advice
and employ other people. So what and did mechanical and electrical SZM: How has this training
we are being taught here comes in engineering. At school we were changed your life?
very handy; it gives you skills that are forced to do two trades: electrical MN: It has really changed my life.
priceless. and mechanical engineering. I did Being on an apprenticeship is like
my N4 in electrical engineering at being in a job because you get paid
SZM: How has the opportunity Bright Technical College. I started my while you are being trained. To me, it
changed your life? learnership at Toyota in 2010. I was is more like a job.
14 Achieve / June 2015Success Story
that I did engineering. Many men are
surprised and others are actually happy
that women are entering the engineering
field. We are doing harder stuff and less
feminine things.
We actually do welding and the guys
are very helpful. They know how the
machines work. They come to us and
show us how things work. Also, our
mentors and lecturers are males. They
are helpful to us and don’t prejudice us
because we are females.
SZM: Another argument could be that
they are more sympathetic to you
Shining stars of the Toyota Academy: Ongezi Mdladlamba, Mxolisi because you are women. Perhaps you
Njhapha and Stanley Phare. are given special treatment as women.
Are you given special treatment?
OM: Not at all! In class we are all equal. If
someone does not know what to do we
help each other.
In the welding bay, we help each other,
and everybody just helps out. There is no
looking down upon us because we are
women. Everybody helps out. It’s just
diversity and it’s not as unequal as it was
in the past.
SZM: Looking at gender parity,
especially in the workplace, would
Senior Training Officer Casper van Jaarsveldt, level 4 apprentice you say that companies like Toyota or
Brandon Ogle and level 4 apprentice Gaylene Waljee the government have done enough to
try to get more women into technical
SZM: What would like to say to engineering course at the Durban fields?
Toyota? campus of Coastal College. OM: Yes, definitely. There are a lot of
MN: I am very thankful for the women I have seen here on learnerships
opportunity I got here at Toyota. SZM: Why did you choose and apprenticeships. Everybody is
If you have been trained at Toyota engineering, especially as a getting that opportunity. It’s not only
you can go anywhere because you woman? males anymore.
get the best training. OM: Honestly my focus was not
SZM: Where do you want to see on doing engineering; I wanted to SZM: How have you found the training?
yourself in the next five years? do climatology. Unfortunately my OM: Honestly, it is very helpful, because
MN: I want to be one of the best results were not so good so I could there are things that I didn’t know that
artisans in the country. As soon as not go to university. I then fell in they have taught us like welding. I didn’t
I get my wireman’s licence, the sky love with engineering, so I started know anything about welding, but I have
is the limit. to pursue it. learnt a lot since I started here. They
are also going to teach us about spray
Apprentice 3: SZM: Being a woman in a male- painting and other things, so it’s very
Ongezi Mdladlamba studied and dominated field, how have men helpful.
matriculated at Ridge Park College treated you?
and underwent an electrical OM: People don’t actually believe
Achieve / June 2015 15Features
Skills development key to
industrial transformation
By Sibongiseni Ziinjiva Ka-Mnguni
In this exclusive interview with Achieve Editor Sibongiseni Ziinjiva
Ka-Mnguni, Deputy Minister of Trade and Industry Mr Mzwandile
Masina talks about the government’s efforts to intensify skills
development and accelerate socioeconomic transformation.
16 Achieve / June 2015Features
T
he development of a skilled He said the youth needed to play a if we remain trapped in the global
and highly capable labour critical role in this transformation. division of labour as producers and
force is among the key exporters of primary products and
priorities and drivers of industrial He pointed out that the government raw materials and importers of value
transformation. had placed young people at the added products. As long as we stay
centre of its radical economic there, we will be battling over the
This is according to Mr Mzwandile transformation agenda. distribution of resource rents and
Masina, the Deputy Minister of Trade Asked about the skills drain, he said we will not be taking our productive
and Industry, whose department is, the government was comforted economy forward.”
among other things, charged with by the fact that those who had left
the responsibility of facilitating the would return to share their expertise Foreign direct investment into
transformation of the economy to with the rest of the country. South Africa increased by 80% in
promote industrial development, 2013, making the economy again
investment, competitiveness and “We are encouraged to see young the biggest recipient in Africa, with
employment creation. people gain international experience. $8,2-billion pouring in. The Deputy
South Africa is a great country and Minister said South Africa was a
Mr Masina said industrial those who have left know how great fertile ground for foreign direct
development recognises the need the country is. I have no doubt they investment.
for the creation of a skills base that will return to share the experience
embraces technological advances they have gained,” he said. “South Africa is receiving more
and modernisation in industrial foreign direct investment than any
techniques, hence the close working He said localisation was key to other country on the continent.
relations with the Department of accelerating economic growth. But it is important for the country
Higher Education and Training. If South Africa was to turn the tide, the to continue to enhance its
acceleration of skills development attractiveness as a prime investment
“We are working very closely with and the implementation of local destination.”
the Deputy Minister of Higher content would be some of the
Education and Training, Mr Mduduzi important aspects at the top of the Forging ahead with foreign direct
Manana, on the ‘It’s Cool to be a agenda. investment, South Africa signed
21st Century Artisan’ Programme a Trilateral Free Trade Area (TFTA)
in trying to build the skills base we He said the local content policy agreement involving the Southern
need as a country to accelerate the was an important instrument that African Development Community,
industrial transformation agenda. provided the government with East African Community and the
the opportunity to leverage its Common Market for Eastern and
“The government is convinced resource endowments to drive Southern Africa.
that by empowering our young its industrialisation objectives,
people, we would have done a great especially if local content policies The TFTA is an important initiative
service for the future of this country. had been designed to have the in accelerating regional integration
The capacity we are building by ability to encourage backward, efforts aimed at ensuring that African
empowering young people will forward and/or lateral linkages. countries trade with each other on
stand them in good stead when terms, at least, as favourable as
they have to participate maximally “We are beginning to say there other competitors.
and contribute meaningfully to the are key commodities and we must The agreement was signed in June
economic transformation of this ensure that the local content is in Egypt.
country,” he said. increased to a certain percentage.
So there is work that is already “The TFTA represents an integrated
Deputy Minister Masina indicated under way to ensure that we boost market of 26 countries with a
that his department was working the local content of our products. combined population of 625 million
hard to ensure that the government people and a total gross domestic
helped to transform the economy “We can no longer hope to continue product (GDP) of $1,6 trillion,” he
from being consumption-driven to to live, prosper, create jobs and said.
being production-based. sustainable livelihoods for our people
Achieve / June 2015 17Features
‘
“This is an important milestone
in the implementation of the
development integration
agenda in Africa aimed at
We have come
promoting market integration, to the realisation
industrial and infrastructure
development.
that until we
create an economy
“In the context of markedly
improved growth prospects for
Africa alongside intensifying
global competition for Africa’s
resources and markets, the
need to enhance access
that can benefit
the majority of our
people, we would
have not done
‘
to African markets is more
urgent.”
justice to
South Africa
Although inroads have been
made, the high unemployment
rate, especially among the
youth, remains a cause for
grave concern.
However, the DTI believes that
the country is on the right track.
“As government, we have
insisted that we must add
value to our minerals before
we export them. Therefore,
the private sector must come
to the party because our role mineral reserves. Mineral
is to make a conducive policy beneficiation is an area of work
environment. that presents much untapped
opportunity but has lagged in
“We have come to the terms of policy development
realisation that until we create and implementation in the
an economy that can benefit past.”
the majority of our people, we
would not have done justice Mr Masina added that the
to South Africa. Beneficiating government was intensifying
those minerals will actually help its efforts to accelerate
us increase the number of jobs socioeconomic transformation
and grow our economy. to grow the manufacturing
sector by promoting black
“South Africa reportedly industrialists.
has the largest reserves of
mineral resources in the “The government is going to
world (excluding oil), with an spend about R4 trillion over
estimated value of $ 2,5 trillion. the next four to five years.
This endowment is dominated So those opportunities must
by the platinum group of be made available to these
metals (PGMs) (88% of global black industrialists. We want
reserves), manganese (80%), them to create manufacturing
chrome (72%), vanadium (32%) opportunities as we continue
and gold (30%) but includes to roll out infrastructure
a range of other substantial development in South Africa.”
18 Achieve / June 2015Features
SA’s post-school education sector
experiencing phenomenal growth
By Achieve Correspondent
T
he Department of Higher “This should enable these institu- consolidate DHET programmes into
Education and Training (DHET) tions to become financially stable a single, coordinated and integrated
is experiencing phenomenal and improve the quality of their framework.
growth in post-school education. governance, teaching, learning and This will guide the work of the
research. We are also investigating department over the next 15 years
Speaking during his department’s the cost drivers in higher education to 2030.
budget vote in Parliament recently, to better understand the reasons for
Higher Education and Training fee increases,” he said. This is expected to be finalised by
Minister Dr Blade Nzimande said March 2017.
Technical, Vocational Education and To cater for learners who do not
Training (TVET) college enrolments qualify for admission to TVET Since its original inception as the
had more than doubled over the colleges or universities, nine Tertiary Education Fund of South
past five years and would continue community college administrative Africa (TEFSA), NSFAS has awarded
to increase, with 725 000 headcount centres have been established in all more than R50 billion in loans
enrolments expected this year – provinces. These will be merged with and bursaries to about 1,5 million
an increase of just over 39 000 existing public adult learning centres students.
compared with 2014 enrolments. to form community colleges, whose
aim, besides offering the national For the 2015-2016 financial year
Minister Nzimande said black and and general senior certificates for alone, the NSFAS budget from
women students were now in the adults, will be to prepare students DHET amounted to R6,2 billion –
majority in universities. for the labour market or self- R4 billion for university study loans,
employment. R2,2 billion for technical and
The National Student Financial Aid vocational training college bursaries
Scheme (NSFAS) had supported “I am now in the process of reviewing and R148 million for administration
more than 1,5 million poor students, our skills development system costs.
he said. following a study of reports and
strategic policy documents as well This is supplemented by recovered
The university education system is as various departmental policies. I funds and donor allocations, which
expected to grow from a headcount will shortly be publishing proposals further increase the total budget
enrolment of 983 698 in 2013 to on the new SETA landscape for of NSFAS to R9,5 billion for the
1,1 million in 2019. consultation. I am of the view that allocation of 205 000 university
the main focus of the SETAs must student loans and bursaries and
The Minister also acknowledged be training at the workplace and 200 000 TVET college bursaries. For
challenges and financial constraints the facilitation of partnerships the 2015 Medium-Term Expenditure
faced by previously disadvantaged between educational institutions Framework, the DHET’s budget,
universities. and employers. To do this, SETAs excluding direct charges, projects
must become skills experts in their increases over three years at an
He pointed out that he had already sectors and collect reliable data annual average rate of 5,9% –
accepted some of the recommenda- that contribute to national skills from R39 billion in 2014-2015 to
tions of a committee looking into the planning,” he said. R46,3 billion in 2017-2018. The
review of university funding. The rec- R41,8 billion for 2015-2016 is an
ommendations included the imple- Based on its White Paper, the DHET increase of R2,8 billion (or 7,3%) on
mentation over the next five years of a has started the process of developing the 2014-2015 allocation, excluding
R2 billion historically disadvantaged a new National Plan for Post-School direct charges.
institutions' development grant. Education and Training, which will
Achieve / June 2015 19Features
ISO 9001:2008
The merSETA
Says N0 TO
Xenophobia
20 Achieve / June 2015Features
No chance of a total
blackout – Eskom boss
By Thomas Hartleb
D
espite ongoing electricity
supply shortages and 5 500MW
being taken out of the grid for
maintenance purposes this winter,
there is no chance of a total blackout,
according to acting Eskom CEO Brian
Molefe.
Speaking during an update on the
state of the country’s power crisis,
Molefe said the 5 500MW of planned
maintenance would be three times
more than had been taken out of the
system in each of the previous winters.
Power plants were “ageing and volatile”,
the cold weather had increased
demand and maintenance had put
pressure on an already strained grid. In Brian Molefe, acting CEO of Eskom
addition, this winter was forecast to be diesel, which represented 6,4% of the 46GW or 47GW when various projects,
colder than previous ones. proposed 24,7% increase. including the Medupi and Kusile power
“There is no prospect of a blackout Running the open-cycle gas turbines stations, are completed sometime in
in South Africa ... That is out of the added 2 000MW to the grid and without 2017.
question,” Molefe said. it the country would slide into Stage 2
load shedding, he said. Medupi’s Unit 6 is on track for
During rolling power blackouts, the “If there’s no diesel then we will go into commercial operation at the end of
utility was still able to supply power to load shedding sooner and it will be August. The power station, which was
96% of the country. Power cuts were more severe,” he said. projected to cost about R10,5 billion, is
most likely during the morning and at present supplying about 800MW to
afternoon peak periods, Molefe said. “We think the diesel is very expensive the grid.
but the cost of not using diesel during
“We will avoid, as far as possible, load load shedding is much bigger than the An investigation into the collapse of a
shedding during weekdays to minimise cost of power cuts to the economy.” coal storage silo at the Majuba power
the impact on the economy,” he said. There is a total of 43,5 gigawatt (GW) station in Mpumalanga in November
Part of the reason the utility was available in the system and winter last year had been completed and
applying to the National Energy demand is about 35GW, plus 1 500MW a report would be presented to the
Regulator of SA for a 24,7% increase in of “operating reserves”. government soon.
electricity prices was that it was using Repairs will be completed in September.
R1,5 billion a month to buy diesel for its This leaves a 7GW window for Replacing the boiler at Unit 3 of the
open-cycle gas turbines. maintenance and planned and Duvha power station near, Witbank in
unplanned outages. The country’s total Mpumalanga, is expected to start in
It wanted a further R10,9 billion to buy capacity was expected to be around July.
Achieve / June 2015 21Features
Billions set aside to
support budding industrialists
By Independent Correspondent
‘We cannot unscramble ourselves from Africa, our
continent, without serious economic damage’
– Economic Development Minister Ebrahim Patel
T
he Department of Economic Budget Vote in the National “The Industrial Development
Development is to set aside Assembly recently, Minister Ebrahim Corporation (IDC) is committing
more than R23 billion over the Patel said the fund would contribute R100 billion over five years to
next five years to fund “new players” to job creation, industrialisation industrial development. What is new
as the government makes a big and transformation of the industry and what is significant is that we are
push to industrialise the economy. and go a long way in eradicating setting aside R23 billion to promote
inequality and poverty. black industrialists,” Minister Patel
‘
Speaking during his department’s said.
The Industrial
Development
Corporation (IDC)
is committing R100
billion over five
‘
years to industrial
development …
Economic Development Minister Ebrahim Patel.
22 Achieve / June 2015Features
‘
“This is a five-year programme from Africa, our continent, without
intended to support those serious economic damage.
companies [in which] black South The Competition
Africans are both owning and
controlling the enterprises in the
Our total manufacturing, mining
and agricultural exports to the rest
Commission will be
productive sectors of the economy. of Africa sustained 244 000 direct launching a market
It is intended to bring more jobs in South Africa. Of these,
inquiry into the retail
South Africans into the economic
mainstream.”
He said the decision to set aside
the funding was to promote
transformation and boost economic
growth by unlocking the potential
169 000 are in manufacturing.
Africa is now more important for
growth in manufacturing exports
than Europe, the United States or
China,” he said.
sector, looking into
how we can bring
more black South
Africans, more small
‘
and talent pool of the economy. He Competition Commission businesses into the
said South Africa needed to achieve
sustainable and inclusive growth,
to conduct market research
Patel said the Competition
retail sector
adding that the funding would be Commission would, during the
made available on concessional current financial year, conduct an
terms. inquiry into how small businesses
in the formal and informal economy
“Aside from black industrialists, could be supported so they could
there is, of course, a compelling be able to compete in the retail
need to bring more black South sector. He said the inquiry would
Africans into the economy. There also seek to find ways in which
are also targeted groups – young small players could be incorporated
people and women – who have into the lucrative sector.
not been sufficiently brought into
productive activities. So the IDC “The Competition Commission will
will make available R9 billion in be launching a market inquiry into
total – R4,5 billion for women, the retail sector, looking into how
R4,5 billion for youth – [for this we can bring more black South
particular purpose],” he said. Africans, more small businesses
into the retail sector. It will examine,
The funding will be distributed in among other things, the tenancy
the form of loans or equities. arrangements in shopping malls,
the growth of township enterprises,
How African firms small shops, spaza shops and so
are creating jobs on. The programme is intended to
The Minister said South Africa’s ensure that we have a competitive
efforts to ensure economic but inclusive retail sector,” he said.
integration with the rest of the
continent were yielding results. The Minister added that another
The country exported more than inquiry into the healthcare industry,
R300 billion worth of goods to which he announced last year,
the rest of Africa – an increase of would conduct its public hearings
R36 billion. during the current financial year.
“Aside from the damage that The inquiry was established with the
[xenophobic attacks on foreign aim of addressing several concerns
nationals] do to our humanity, about the industry, including the
we cannot unscramble ourselves cost of healthcare in South Africa.
Achieve / June 2015 23Features
Is the skills shortage
worse than admitted?
By Achieve Correspondent
The artisan shortfall represents a shortage of boilermakers, diesel mechanics, fitters and turners,
tractor mechanics, forklift mechanics, electricians and earthmoving equipment mechanics.
T
here are currently as many as forward. It is certainly ironic that from categories that include
829 800 vacant positions for while unemployment in South Africa senior management; professions –
highly skilled workers across is hovering around 25%, we have a medicine, engineering, accounting
a diverse spread of occupations 50 000 shortfall of skilled artisans,” and the law — technical occupations;
in South Africa – and this includes says Jones. specialised technicians and artisans;
posts for artisans, says Sean Jones, and agriculture.
co-founder and director of black The artisan shortfall represents a
economic empowerment artisan shortage of boilermakers, diesel In terms of actual numbers broken
training academy Artisan Training mechanics, fitters and turners, tractor down by occupation, Adcorp
Institute (ATI), mechanics, forklift mechanics, believes the skills shortage among
electricians and earthmoving technicians is 432 100, with 216 200
“Some industry pundits have put equipment mechanics. among managers and 178 400 among
the artisan shortfall at between professionals. In contrast, however
40 000 and 50 000 and, if this figure According to the latest Adcorp – and very troubling – is that a total
is correct, we are falling way short of Employment Index, a monthly of 967 600 elementary workers are
filling this acute gap, something that survey carried out by JSE-listed over and above the nation’s
is bound to affect the performance human capital management group, requirements, as are 247 400
of the country’s economy going Adcorp, the skills shortage comes domestic workers.
24 Achieve / June 2015Features
‘
The shortage of highly skilled workers has been artificially induced by the Immigration Act,
according to labour economist Loane Sharp.
Looking more closely at the statistics, “It seems extraordinary that such an
Adcorp’s labour economist, Loane increase could largely have escaped
To a great
Sharp, says: “To a great extent, the
shortage of highly skilled workers
has been artificially induced by the
Immigrations Act, which makes it
exceedingly difficult for foreigners to
find work in South Africa.
attention, except that the increase
would have been in the interests of
skilled South African workers at the
expense of the economy as a whole,”
Adcorp says.
It further claims that the
extent, the
shortage of highly-
skilled workers has
been artificially
‘
“The most recent amendments to Immigrations Act was intended to induced by the
the Immigrations Act, promulgated improve previously disadvantaged
in April 2011, prohibit the use of individuals’ employment chances by Immigrations Act
immigration agents and quota “substantially curtailing” foreign job
work permits, both of which have seekers’ attempts to compete for
historically been widely used by jobs in the local labour market.
South African companies seeking
foreign skills.” “If this interpretation is correct, the
Immigrations Act should be viewed
Adcorp further says South African in the same vein as the Employment
citizens’ wages in highly skilled Equity Act. As such, it should have
occupations have been significantly been subjected by Nedlac to the
escalated, in inflation-adjusted terms, same scrutiny that applies to all
by 286,4% since 2000. related legislation,” Sharp says.
Achieve / June 2015 25Features
SA’s education costs
continue to outstrip inflation
By Independent Correspondent
Your child in Grade R will cost you at least R1 million in public
school tuition by the time he or she graduates from university
26 Achieve / June 2015Features
I
‘
t is often said that an investment Rising education costs present
in knowledge pays the best a barrier for those seeking an
education.
Stats SA’s latest
interest.
General Household
A good education is worth its Stats SA’s latest General Household
Survey reported that 33% of
Survey reports that
weight in gold, but recent figures
33% of individuals
released by Stats SA indicate that
South African households will have
to make more room in their budgets
to pay for rising tuition fees.
Stats SA updates education
inflation figures in March every year,
individuals aged 5-24 indicated that
a lack of money was the reason they
were not attending an educational
institution.
Broken down by province, the
figure is as high as 45% in
‘
aged 5-24 indicated
that a lack of money
was the reason they
were not attending
based on fees charged by schools KwaZulu-Natal, and as low as 21%
in Western Cape. Interestingly,
an educational
and tertiary institutions. The most
recent update, included in the latest although Northern Cape exhibited institution
Consumer Price Index, shows a 59% increase in education costs
that the cost of education rose by between 2010 and 2015, only 22%
9,3% in March this year compared of those aged 5-24 indicated a lack
with March last year. This is 5,3 of money as a barrier to education.
percentage points higher than the
headline CPI of 4,0%. But what is causing the increase
in education costs? A University
Studies show how education World News article, focusing on
inflation has constantly outstripped higher education, attributed rising
general inflation. South African costs to a number of factors. Higher
families are bound to feel the pinch. education institutions raise their fees
on the back of rising maintenance
Leading investment, savings, costs, more expensive municipal
insurance and banking group Old services and higher enrolment
Mutual estimates that if a child rates. The rand-dollar exchange
starts Grade R this year, a complete rate has also increased the cost of
education – including primary imported books and materials.
school, high school and three years
of university – will cost just under Stats SA’s report on the financial
R1 million for public school tuition status of higher education
or R2,2 million for private school institutions shows that total
tuition (in nominal terms). expenses increased by 12% in 2013
compared with 2012, rising from
A provincial breakdown shows R41,4 billion to R46,2 billion. This
where tuition fees have risen rise in spending by higher education
sharply. The cost of education rose institutions was mainly driven by
nationally by 53% in March this increases in the purchases of goods
year compared with March 2010. and services (up by 13%) and
In other words, for every R100 a compensation of employees (up by
household spent on education 10%). Compensation of employees
in 2010, a household would now contributed 55% (R25,6 billion) to
have to fork out R153 for the same higher education spending in 2013,
service. North West and Northern followed by purchases of goods
Cape showed the largest increases and services at 39% (R17,8 billion).
– 65% and 59% respectively.
Achieve / June 2015 27You can also read
