Ben VenterChairman: BANKSETA Council & Conference Session Chair

6 October 2004

09h15 – 10h00 Pravin Gordhan10h00 – 10h45 Sizwe Nxasana (by Amanda Singleton)10h45 – 11h15 Refreshments11h15 – 12h00 Danisa Baloyi12h00 – 12h45 Charles Okeahalam12h45 – 13h45 Lunch13h45 – 14h45 Ulrich Teichler14h45 – 15h30 Nicholas Biekpe15h30 – 16h00 Refreshments16h00 – 17h30 Peter Senge (Video Conference) 17h30 Cocktail Party

LEADING THE WAY IN TRANSFORMATION: THE SARS SUCCESS STORY!

Pravin GordhanCommissioner: SA Revenue Service

The 2nd BANKSETA International Conference

2004

Presentation by

PRAVIN GORDHAN

Commissioner of SARS

to

SARS MandateThe SARS Mandate

The organisation is tasked to efficiently and effectively collect -

• all national taxes, duties and levies imposed in different pieces of taxation legislation

• all revenue that may be collected in terms of any other legislation, as is agreed between SARS and the organ of State or Institution

SARS is also responsible for the control over the import, export, manufacture, movement, storage or use of certain goods

The organisation is also responsible to the provide advice to the Ministers of Finance and Trade and Industry to on all revenue and customs matters

The Economy

1984-1993

Growth a mere 1% a year

Investment shrinks 2,9% a year

Inflation averages 14,3%

Deficit up to 9.3% in 1993

Fin account net outflows of R46,1 bn

Investment boycott

1994-2003

Growth around 3% a year

Investment expands 4.7% a year

Inflation down to <6%

Deficit down to around 3%

Fin account, net inflows of R169,6 bn

Unprecedented ratings upgrades

Basic needs and social services

1.6 million houses built

700 new primary health clinics built

Electricity to 4 million homes

4.5 million children benefit from primary school nutrition programme

Grant beneficiaries increased: 2.9 million to 7.4 million

SARS Profile

The SARS profile

Collects approximately 90% of the government’s revenue, in excess of R300 billion in direct and indirect taxation

Administers 22 tax types

Deals with over 5 million taxpayers/ taxpaying entities

Operates from over 100 sites nationwide

Employs over 14 000 staff

Administration costs <1.5% of revenue collected (developed countries 2%; developing countries 4-5%)

1,7 MillionImport

transactions

1,4 MillionExport

transactions

3 000Bonded

Warehouses

3 000Rebate

Manufacturers

14 000 SARS Employees

136 000Registered

Traders/Operators

1 451Manufacturers of

excisable products & 4 licensed distributors

1,4 MillionSACU Movements

SARS VOLUMETRICS

4 MillionIndividual taxpayers

1,3millionCorporate Taxpayers

536 281Vat vendors

274 764PAYE Employers

REVENUE PERFORMANCE

R 'billion 1998/9 1999/0 2000/1 2001/2 2002/3 2003/4

Target 179.2 193.9 213.6 236.8 268.5 310.0

Collections 184.8 201.4 220.3 252.3 282.2 302.4

Above/under target 5.6 7.5 6.7 15.5 13.7 (7.6)

Total additional collections (10 year period)           50.4

SARS Performance

Stable tax regime

Fiscal stability

Increased revenue yield (exceeding revenue targets)

Significant tax relief (R73 billion)

Broadening the tax base

Improved service

OUR LEGACY11 separate departments within the Department of Finance.

Declining performance against revenue targets

Unwieldy organisation structures, many layers of management

Procedures were highly bureaucratic, manual and clerical in nature

Weak and outdated physical infrastructure

Wholly inadequate technology infrastructure – disparate line of business systems

Low staff morale with minimal representivity, limited career opportunities and lower than market related remuneration

Prevalence of internal fraud and corruption

OUR LEGACY…The SA ClimateThe South African compliance climate reflected

Low tax literacy vs high tax complexity

Low tax morality

Negative perception of the tax system and administration

Weak protection of our borders against illicit trade

Preferential tax treatment

• Certain sectors

• Greater ability to distort tax burdens among the affluent

PRINCIPLES OF A GOOD TAX AND CUSTOM ADMINISTRATION (OECD)

A good tax and customs administration should….

1. Apply tax laws in a fair, reliable and transparent manner

2. Outline and communicate to taxpayers their rights and obligations as well as the available complain procedures and redress mechanisms

3. Treat enquiries, requests and appeals from taxpayers in an accurate and timely fashion

4. Provide an accurate and dependable information service

5. Ensure that compliance costs are kept to a minimum

6. Where appropriate give taxpayers’ opportunities to comment on changes to administrative policies and procedures

7. Use taxpayer information only to the extent permitted by laws that limit their use to tax officials except under compelling circumstances

EVOLUTION OF SARS Introduced modern employment practices

Standard job descriptions and job specifications

Career paths

Competitive remuneration

New collaborative approach with Unions

Redefined strategic direction of SARS

Vision

Mission

Values

Taxpayer Charter

Code of Conduct

Compliance Model

EVOLUTION OF SARSRefocused efforts on enforcement

Increased audit capacity

Introduced new tools and techniques

Rolled out national campaigns addressing high risk areas

Siyakha “We are Building”

Transformation programme launched

Commenced with organisation wide diagnosis

Implementation of pilot in Kwa-Zulu Natal region

Established centers (Taxpayer Service; Assessment; Enforcement; Customs)

EVOLUTION OF SARS

Appointment of a new, representative management team

Provision of modernised infrastructure

Streamlined and standardised business processes – supported by new policies, procedures and skills

Provided a dedicated frontline environment for taxpayers

Focused, high visibility enforcement interventions addressing high risk industry sectors and taxpayers

SIYAKHA PROGRESS

Successful implementation in Kwa-Zulu Natal and Western Cape (CBD)Ongoing transformation in Western Cape and Gauteng 9 additional offices being converted to the Future mode of

operation.This platform has enabled us to identify further process improvements which are being implementedConcentration of assessment activities resulted in improved turnaround timesOver 2400 staff have been trained in service and functional expertiseTo date, over 3000 staff have either been appointed in new positions or absorbed in terms of the Siyakha protocol Employment Equity has been improved

To date more than 20 SARS locations (excise, tax and customs) have been improved

SARS LBC • Launch of SARS Large Business Center - 2 September ‘04

• The LBC Business Model:

Developing enhancedRelationships with our corporate taxpayers based on intimate knowledge derived fromindustry sector

specialization

Dedicated Sector Managers supported by Taxpayer Relationship Managers for each of the following sectors respectively:• Financial Services• Mining• Manufacturing• Information, Communication & Technology• Retail • Primary (Agriculture, Forestry Logging)• Construction• General & Diverse Holdings

LBC Service Model

Providing world-class operational excellence with one-stop - single point of entry for all tax types and effective Administration & Resolution processes

A Convenient one stop service

for cost effective filing and

processing of all tax

submissions, as well as the

efficient management of

accounts, registration of new

taxpayers or changes in

taxpayer status

Noteworthy achievementsConsistently exceeded revenue targets despite undergoing organisation wide transformationSuccessfully introduced challenging legislative changes eg. RBT, CGTShifted the compliance culture in SA through targeted, visible enforcementExpanded the business to take on new tax products eg. UIF and SDLMade initial strides in entrenching a service culture Provided dedicated service areas Established a SARS Service Monitoring Office Released a draft Taxpayer Charter which will entrench service

standards Introduced an online customer feedback system to gauge service

satisfaction Implemented dispute resolution procedures for speedier resolution

of administrative issues

AT A GLANCE…10 years of delivery

BEFORE

Low Revenue

Weak customs

Inefficient processes

Ineffective enforcement

Poor compliance

Poor technology

Low skills

AFTER

Significantly increased revenue collections

Visible and more efficient customs

More efficient, streamlined and integrated processes

Visible and more efficient enforcement

Increased compliance culture

Enhanced and stable technology platform

Enhanced focus on development of technical and management skills

A REALITY CHECKChange is ongoing

We’ve achieved a lot…but there are still many challenges that remain

Challenges we are facing

Revenue administration as a suitable response to the dualistic nature of the South African economy

• Widen the net to include both economies; reduce the tax gap

Building fiscal citizenship to ensure a climate of sustained compliance

Achieving a robust administrative machinery that supports revenue growth in a highly effective and efficient technology enabled organisation

Further transforming the organisational culture to reflect greater professionalism, service and integrity

THE NEXT WAVE OF TRANSFORMATION

A vision for 2010 Individuals Business SMEs and large corporates

Key shifts Inward administrative view to outward taxpayer view Reactive to proactive engagement Manual to automated

Compliance strategyInstitutional transformation

ANTICIPATED OUTCOMESSmarter SARS More efficient Electronically enabled

Visible SARS Touching all segments Tax officers in the field Increasing access to taxpaying community

Responsive SARS Better Service Swift detection and deterrence of non-compliance Learning organisation – leadership and technical capability

These outcomes translate into sustained compliance and delivery on revenue targets

RECIPE FOR OUR SUCCESS…

Overall fiscal reform – tax policy and tax administration changes in tandem

Political support of Minister of Finance

Administrative autonomy brings greater flexibility and control

Create a vision for the future

Transformational passionate leadership – actively driving change and instituting a new way

Create a critical mass of change drivers

Evolutionary change but revolutionary thinking – sustain the change. Implement change in manageable chunks

Willingness to engage with all stakeholders and across all functional areas of the business to achieve a holistic robust solution

Integrated process view and enhanced business knowledge

RECIPE FOR OUR SUCCESS…

Thank You

Culture change through leadership

Sizwe Nxasana

Chief Executive Officer

Telkom SA

CULTURE CHANGE THROUGH LEADERSHIP

Sizwe NxasanaChief Executive Officer: Telkom Delivered by Amanda Singleton

Culture change through leadership

Amanda Singleton

Group Executive: Corporate Communication

Telkom

Launching into the global arena

Challenges facing SA leaders

Addressing local transformation challenges

and also

Satisfying shareholders Attending to the diverseneeds of a complex network

of stakeholders

while

Telkom’s evolution

1991 Commercialisation

1996 Licensed (with a 5-year exclusivity) under new Telecoms Act

1997 Partial privatisation

2002 End of exclusivity

2003 IPO 2004 Competition

• To survive and prosper in a ever-changing environment,

adaptability is key

• SA industries need more than gradual adjustment to changing

circumstances; we need to shift paradigms

• The central challenge: to create and lead an adaptive enterprise

Why is corporate culture so important?

• No CEO can single-handedly make changes to an organisation’s genetic

code

• Lasting organisational transformation requires a change in people

– A fundamental shift in ‘the way we do things around here’

– Corporate culture change is a prerequisite for successful business

transformation

• Culture is important:

– because it powerfully influences the behaviour of employees

– because it is difficult to change and

– because its near invisibility makes it hard to address directly

Why is corporate culture so important?

The emergence of culture

Group Interaction

Shared Values

Norms of Behaviour

Positive Results

CULTURE

A strong corporate culture = values widely shared amongst employees

• Values provide the roadmap to the vision – shape the culture needed to realise the vision

• Values mould the behaviour – defines the corporate culture

• Corporate Culture should accommodate multi culturalism– Umbrella for diverse cultures, languages, backgrounds and

national norms

• Values have value only when: – they are commonly understood– they are unanimously subscribed to– they are lived by everyone

The value of common values

Telkom’s value system

• We value people and their diversity

• We are performance driven

• We are customer focused

• We create shareholder value

• We are a model corporate citizen

• We act with integrity in everything we do

com

munic

ati

on

com

munic

ati

on

com

munic

ati

on

“Vision”(to be)

Current situation“As is”

“Cult

ure

” (H

ow

to b

ehave a

long t

he w

ay)

“Str

ate

gy”

(W

hat

do w

e n

eed t

o f

ocu

s on)

The strategic fit

• Vision: – To be a world-class communication company

• Strategic Goal: – To invest in our employees

• Value: – We value our people and their diversity

• Behaviour needed: – No stereotyping, prejudice and discrimination in the workplace– Fair recruitment, an appreciation for the EE imperative – Making full use of the skills of all employees– Open communication on development needs– Regular discussions on performance and improvement areas– Coaching, mentoring and personal development – Creation of opportunities for personal growth– Retention of critical skills

A Telkom example

1. Articulate the company’s vision as a concise word picture describing what the organisation aspires to become– Keep it simple, motivational and realistic

2. Develop enterprise strategy as “what to focus on” in achieving the vision

3. Design a set of values

4. Identify behaviours needed from management and employees to execute strategy

5. Communicate all of this in coherent and compelling ways

6. Drive for total contextualisation down to an individual level– The role of every line manager is key

Changing corporate culture

Committed leadership and clearly defined corporate values distinguish major cultural changes that succeed, from those that fail.

The single most visible factor that distinguishes major cultural changes that succeed from those that fail is competent leadership at the top … .

Only with leadership does one get the boldness, the vision and the energy needed to create large and difficult changes …

John P. Kotter & James L. Heskett

Leadership is critical

• Chief sense makers for the organisation– Providing insights about the business and markets

• The ability to provide direction – defining a vision• The ability to bring vision to reality

– Creating strategy to close the gap between vision and current reality

• The skill to reconnect organisational life with organisational purpose – “Where are we going and why”; – “What is our company’s role in society”;– “What is the context and meaning of this change in strategic

direction”

What culture change demands of Executive Leadership

1. Conceptual Leadership

“Without vision, direction and a sense of purpose, it’s difficult to harness the energy,

passion, commitment, and perseverance needed to transform”

• Leadership is in the first place, PERSONAL

• Leadership is about truly living the company’s values

• Leadership is setting an example, being a role model

• Leadership is consistency between what is SAID and DONE.

What culture change demands of Executive Leadership

2. Personal Commitment

“One of the most important ways executives can demonstrate their commitment and

credibility comes through how they work within their own teams”

• Effective communication is the oxygen for new-breed leadership• Communication is not one-directional

– Engage strategically– Listen hard– Create an environment that allows candid feedback/ criticism

• Communication needs to be regular – In good times and bad – Never skip scheduled engagements

• Communication has to be open and honest– Own up: take personal responsibility for hard decisions– Resist the urge to spin – it always backfires

What culture change demands of Executive Leadership

3. Communication

“People need to hear directly from the leader”

The time has come . . .

For leaders to step forward and show real leadership

Questions?

TRANSFORMATION, SKILLS DEVELOPMENT & THE FOCUS ON DEVELOPING LEADERS OF TOMORROW: An emphasis on youth, women and people living with disabilities

Danisa BaloyiChairperson: National Skills Authority

The Past Inequality as a policy Lack of proper education Lack of properly trained teachers Lack of opportunity Lack of cohesion in development structure Skills gap Problems in economic growth and

development

50

Skills Development Transformation, Skills development and Empowerment

The Present

The list is the same except these: 10 years of democracy Policies of inclusion Programmes for re dress of inequalities Effort to eradicate poverty Equity laws Broad based BEE Act Employment Equity Act Skills development act 5 year of the NSDS51

The areas of concern Youth development Women empowerment People living with disabilities

52

Youth

Unemployment or under employment Lack of proper education Lack of life skills development Lack of positive outlook Lack of real targeted programmes

53

women

No real empowerment An “add on” syndrome Policies empowering – practice disempowering Lack of skills due to no real focus Lack of targeted programmes Urban and rural areas gap Lack equity Lack of real preparation

54

People living with disabilities

Almost forgotten Lack of focus on needs Lack of equity programmes Lack of targeted skills programmes Lack of access to opportunity “Add on” focus on group

55

What can be done

Targeted changes on NSDS changes 2005-2009 Focus on SETAs to effect real change Targeted skills development programmes Focus on women, youth and people living with

disabilities Target people where they are Publicity to reach all South Africans Conferences in all provinces (rotation basis) Seminars all year round

56

Ben VenterChairman: BANKSETA Council & Conference Session Chair

6 October 2004

09h15 – 10h00 Pravin Gordhan10h00 – 10h45 Sizwe Nxasana (by Amanda Singleton)10h45 – 11h15 Refreshments11h15 – 12h00 Danisa Baloyi12h00 – 12h45 Charles Okeahalam12h45 – 13h45 Lunch13h45 – 14h45 Ulrich Teichler14h45 – 15h30 Nicholas Biekpe15h30 – 16h00 Refreshments16h00 – 17h30 Peter Senge (Video Conference) 17h30 Cocktail Party

“EMPLOYABILITY” & “KEY QUALIFICATIONS”: European concepts and debates on skills development

Ulrich TeichlerDirector: Centre for Research on HigherEducation and Work, University of Kassel, Germany

Teichler, Employability

To get a job at all Job search and recruitment Smooth transition Employment success Competence of managing one’s own

career

Employability: The Employment Issues

Teichler, Employability

Match between field of study and occupation

The complex link between study and work assignment

The demand: transfer skills, work attitudes, values, social skills etc.

Employability:The Work Issues

Teichler, Employability

To many issues addressed To often: just getting a job Emphasis only on the „exchange value“ Biased critique of higher education

Instead: „The professional relevance“?

Employability:The Misleading Term

Teichler, Employability

Persistent variety amidst structural convergence of study programmes?

Or convergence of substance as consequence of structural convergence?

Curricula and Professions in Europe

Teichler, Employability

Data from graduates

1. To get valuable information for the development of the

university

2. To evaluate the relevance of

higher education

3. To contribute to the accreditation

process

4. To inform students, parents,

lecturers and administrators

Why Should we Conduct Graduate Surveys?

Teichler, Employability

InputStudents‘ bio

data, experiences,

motives

OutputKowledge,

skills,motivation,

grades

InputStudy conditions and provisions

ProcessTeaching and

learning

OutcomesTransition

employment,work,

service to society

Tracer Study/ Graduate Survey

A Common Model of Analysisin Higher Education

Teichler, Employability

Employed Seeking employment

Average income

Low income** Profess./ Managers

Techn./assoc. profess.

Clerks, workers, etc.

(%) (%) (1,000 Euro*) (%) (%) (%) (%)

Norway 87 1 35.4 2 46 53 1Sweden 83 1 29.9 17 / / /Finland 93 1 30.7 17 93 5 3United Kingdom 87 3 30.6 21 74 15 11The Netherlands 93 2 28.4 24 68 25 7Germany 87 2 38.3 9 83 12 5Austria 87 4 33.3 14 95 3 2France 69 7 24.7 44 66 24 10Spain 73 10 16.3 77 73 4 24Italy 79 5 20.5 63 61 30 9Total 84 4 30 25 72 20 7

Country Employment Income Occupational groups

* Arithmetic mean of annual gross income of full-time employed graduates; ** Less than 20,000 Euro annual gross income of full-time employed graduates; / Not asked in the questionnaire

CHEERS Graduate Survey 1999

Employment of Graduates About Four Years After Graduation in Ten European Countries (percent)

Teichler, Employability

Country Little use of knowledge

Wrong field/ HE not

necessary

Level of education

hardly adequate

Current work situation worse than expected

Dissatisfaction with current

job/work

Norway 5 3 3 7 4Sweden 12 7 / 22 11Finland 12 9 6 15 9United Kingdom 25 27 18 24 18The Netherlands 16 12 8 10 7Germany 23 15 16 17 12Austria 17 16 13 13 10France 37 26 22 24 14Spain 25 15 17 38 13Italy 21 14 22 30 18Total 19 14 14 19 11

/ Not asked in the questionnaireCHEERS Graduate Survey 1999

Perceived Limited Links between Study and Employment/Work and Job Satisfaction About Four Years after Graduation in Ten European Countries (percent)

Teichler, Employability

Percent explained

Work auto- nomy

Status and

career

Use of knowledge and skills

Social communi cation

Leisure time/

family

Job security/ routine work

Useful- ness for society

(R2)

Norway 0.29 0.12 0.23 0.11 0.04 0.08 -0.05 35,6Sweden 0.21 0.11 0.08 0.05 -0.04 -0.15 -0.05 11,1Finland 0.29 0.16 0.15 0.15 0.02 0.13 -0.03 35,6United Kingdom 0.25 0.21 0.16 0.16 0.04 0.01 0.00 36,5The Netherlands 0.34 0.07 0.12 0.16 0.02 -0.01 -0.01 29,4Germany 0.27 0.20 0.09 0.18 0.03 0.14 -0.05 33,6Austria 0.29 0.17 0.13 0.14 0.00 0.13 -0.01 33,8France 0.31 0.15 0.15 0.14 0.01 0.07 0.06 39,6Italy 0.29 0.16 0.18 0.06 -0.07 0.04 0.04 37,0Spain 0.18 0.12 0.22 0.16 -0.03 0.02 0.04 33,8

Country Aspects of professional situation

Explanation of the regression model: Dependent variable "job satisfaction" (Question G1: Altogether, to what extent are you satisfied with your current work? Scale of answers from 1 = ‘Very satisfied’ to 5 = ‘Very dissatisfied’); Seven independent index variables based on 19 items characterizing the professional situation (Question G3: "To what extent do the following characteristics of an occupation apply to your current professional situation?" Scale of answers from 1 = to a very high extent to 5 = not at all). Source: CHEERS Graduate Survey

Explanation of Job Satisfaction by Characteristics of Professional Situation in Ten European Countries(multiple regressions; standardized regression coefficients)

Teichler, Employability

Dimensions2.80 Leadership 2.20 Social competencies

2.46 Initiative 2.12 Loyalty, integrity

2.49 Assertiveness, decisiveness, persistence 2.20 Getting personally involve

2.61 Taking responsibilities, decision 2.28 Tolerance, appreciating of different poi

3.10 Leadership 2.36 General competencies

3.34 Negotiating 2.20 Written communication skill

2.47 Cognitive competencies 2.25 Adaptability

2.38 Analytical competencies 2.34 Broad general knowledge

2.42 Problem-solving ability 2.63 Cross-disciplinary thinking/knowledge

2.47 Reflective thinking, assessing one's own 2.56 Operativ competencies

2.61 Creativity 2.35 Working in a team

2.40 Personal competencies 2.37 Fitness for work

2.09 Power of concentration 2.97 Manual skill

2.34 Accuracy, attention to detail 2.44 Field related knowledge and skills

2.50 Working under pressure 2.25 Field-specific theoretical knowledge

2.69 Time management 2.63 Field-specific knowledge of methods

3.08 Organisational competencies 3.11 Special knowledge

2.89 Planning, co-ordinating and organising 3.08 Foreign language proficiency

3.00 Applying rules and regulations 3.14 Computer skills

3.22 Economic reasoning

3.23 Understanding complex social, organisati

Teichler, Employability

56

57

61

61

69

53

67

54

56

55

44

44

57

57

35

31

21

21

15

29

38

23

42

30

26

28

28

28

100 75 50 25 0 25 50 75 100

IT

ES

FR

AT

DE

NL

UK

FI

SE

NO

CZ

EU

JP

Total

Co

un

try

Work Requirements Competencies At Time of Graduation

Percent of Graduates

Source: CHEERS Graduate Survey

Competencies and Job Requirements: Leadership

Teichler, Employability

Source: CHEERS Graduate Survey

87

86

85

90

89

90

80

89

88

88

80

80

82

86

47

51

52

58

59

64

65

59

75

64

41

58

39

56

100 75 50 25 0 25 50 75 100

IT

ES

FR

AT

DE

NL

UK

FI

SE

NO

CZ

EU

JP

Total

Co

un

try

Work Requirements Competencies At Time of Graduation

Percent of Graduates

Competencies and Job Requirements: Problem-solving Ability

Teichler, Employability

Often viewed in a negative light: Process of transition: more complex and

protracted Fields of study and employment areas:

partial mismatch Educational attainment and occupational

status: “underemployment” Employment conditions: “flexible“ - insecure

Major Past Changes of Graduate Employment and Work

Teichler, Employability

Def No diff

Surplus

Total

E1a-b Planning, co-ordinating and organising

64 28 7 100

E1a-b Negotiating 64 27 9 100

E1a-b Computer skills 58 31 11 100

E1a-b Time management 58 34 8 100

E1a-b Taking responsibilities, decision 58 32 9 100

E1a-b Problem-solving ability 56 36 8 100

E1a-b Working under pressure 55 35 10 100

E1a-b Leadership 54 32 14 100

E1a-b Economic reasoning 53 33 14 100

E1a-b Oral communication skill 53 38 9 100

E1a-b Applying rules and regulations 51 38 12 100

Competencies and Job Requirements (1)

Teichler, Employability

Competencies and Job Requirements (2)Def No diff Surplus Total

E1a-b Initiative 51 37 11 100

E1a-b Assertiveness, decisiveness, persistence

51 37 12 100

E1a-b Documenting ideas and information 50 36 14 100

E1a-b Understanding complex social, organisational and technical systems

47 39 14 100

E1a-b Working in a team 47 42 11 100

E1a-b Accuracy, attention to detail 46 42 13 100

E1a-b Reflective thinking, assessing one's own work

45 42 14 100

E1a-b Creativity 43 39 18 100

E1a-b Field-specific knowledge of methods 41 36 23 100

E1a-b Working independently 41 47 12 100

E1a-b Analytical competencies 40 44 16 100

E1a-b Adaptability 40 46 13 100

E1a-b Cross-disciplinary thinking/knowledge 38 43 20 100

E1a-b Written communication skill 38 43 19 100

Teichler, Employability

Competencies and Job Requirements (3)

Def No diff Surplus Total

E1a-b Tolerance, appreciating of different points of view

38 44 18 100

E1a-b Fitness for work 37 48 15 100

E1a-b Getting personally involve 37 46 17 100

E1a-b Critical thinking 35 44 21 100

E1a-b Loyalty, integrity 32 52 16 100

E1a-b Field-specific theoretical knowledge

31 36 33 100

E1a-b Power of concentration 31 50 19 100

E1a-b Broad general knowledge 29 45 26 100

E1a-b Foreign language proficiency 28 38 34 100

E1a-b Manual skill 25 48 26 100

E1a-b Learning abilities 23 51 26 100

Teichler, Employability

Deficits of Competencies:Problem-solving Ability

1 Educ. 2 Hum. 3 Soc.Sc

4 Law 5 Nat.Sc

6 Math.

7 Engin.

8 Med.Sc

Total

IT 51 52 62 63 48 61 63 62 60

ES 44 47 56 73 57 46 54 55 55

DE 53 44 58 47 44 48 63 58 55

NL 47 45 54 56 44 51 46 55 51

UK 39 44 47 46 43 45 42 50 44

NO 63 38 52 41 49 43 48 62 54

JP 74 69 70 77 75 64 77 79 73

Teichler, Employability

Decline in agriculture and manufacturing, increase in services

Shrinkage of public sector, growth of private sector Decline of employment in large companies Increase of “informal“ employment Rapid pace of chance of job structure and requirements Decline of job-stability lncrease in unemployment Polarisation or flattening of hierarchies? Computer literacy and indepth information science

knowledge lncrease of jobs requiring high level of knowledge

Current Trends of Graduate Employment and Work

Teichler, Employability

Despite the variety of fields of studies, economic sectors and countries, the variety of experts‘ views, the uncertainty of future developments and a broad range of possible options for the actors, most experts agree in stating similar demands for change in HE vis-a-vis employment:

Increasing professional relevance More practice-oriented study Learning to learn (preparation for lifelong learning) Learning working techniques (problem-solving, working under

pressure etc.) Emphasis on socio-communicative skills Transferable skills Computer skills Preparation for European/international mobility (academic,

linguistic, cultural) Training for self-management of career and life Support for job search and transition to employment

Common Demands for Curricular Change

Teichler, Employability

1. General vs. ProfessionalThere is a growing need for general, flexible and socio communicative competencies, but cognitive, specialized preparation for professional work does not loose importance

2. Professionally Relevant vs. Open Linkssystem are most uncertain HE is expected to deliver more relevant preparation for employment at a time when the links between fields and study and occupational area weakens, work tasks change rapidly and prediction of the future of the employment

3. Diversification vs. Transparency and RecognitionThe trends toward horizontal and vertical diversification is likely to reduce transparency and recognition both within HE and regarding the links between HE and the employment system, but demand for transparency and recognition is growing — as a counterweight to this trend and due to Europeanisation/internationalisation/globalisation

Three Contradictions in the Relationshipsbetween HE and Employment

Teichler, Employability

The students ought to:

Be prepared to be specialist, generalist as well as socially and communicatively skilled

Be informed about labour market and graduate work

Be confronted to the tensions between academic approaches and professional problem-solving

Understand the social conditions of work and career

Be able to take initiative vis-à-vis the world of work

Changing Educational Objectives

EDUCATION AND TRANING AS NECESSARY TOOLS FOR ECONOMIC EMPOWERMENT IN AFRICA

Professor Nicholas BiekpeDirector: Africa Centre for Investment Analysis, University of Stellenbosch Business School

KNOWLEDGE IS POWER- Still true?

• ..Ignorance is very expensive;• …Little knowledge is dangerous;• …Businesses can’t survive without the

appropriate skills;• Efficient governments rely on “good

knowledge” and information….• All of the above rely on good education

and training!

History of Education in Africa: Pre-independent Africa

• African Empires and Education– Ghana Empire– Mali Empire– Songhai Empire– The Great Zimbabwe

• Post Empire Education- European education;E.g. British, French, Belgian & German

• Post Independent Education- Case of Ghana and Zimbabwe

Link between Education and Economic Development: Post Independent Africa

• Cases:

• Ghana during Dr. Kwame Nkrumah

• Mauritius- Education as top priority;

• Zimbabwe- from 1981-1990

• Current investment on education by Botswana

Links between Education and Economic Development: Other

Countries

• South Korea;

• Malaysia- Empowerment of the Malays;

• Hong Kong- British Approach to empowering Hong Kong Chinese

• Singapore- Compulsory education system

Education and national capacity to deliver

Smart economy as a function of education & training

Economic burden of illiteracy

• Increase welfare cost;

• Link between illiteracy and crime;

• Link between education and industrial capacity and growth;

• Link between education and health;

• Link between education and tax burden;

Globalisation and need for global education and training

• Global competition requires regular “educational and training upgrades”;

• Increasingly standardised global standard education- e.g. – Business ethics;– Corporate governance;– Science and technology– Economic and political systems

• Link between FDI flow and skill-base

Dual Economies: A result of lack of education?;

• The economies of Sandton versus Alexandra Township;

• Tax implication of dual economies;• Crime implication of dual economies;• Output implication of dual economies;• Overall cost implication of dual economies

– Overall tax burden on the rich;– Other welfare cost– Dilution of wealth in the Sandton-Alexandra area

A case of South Africa

• Cost of not empowering the historically disadvantaged;– Increase in crime;– Dilution of wealth of the wealthy;– Health issues- HIV/AID and poverty related diseases;– Gradual decline in economic output growth;– Further reduction in FDI flow;– Under-utilisation of both natural and human resources

• Need to provide proper education and training women and the youth ;

A case of the African Union and NEPAD

• Capacity to implement the NEPAD initiatives depends on proper education and training;

• Meeting the goals of the millennium Development Goals will depend on the level of education and training of Africans;

• To tackle youth unemployment in Africa will require the provision of relevant education and training;

• To address gender inequality will require innovative education and training models that “actually helps empower” women.

• Africa need projects similar to the South African SETAs

Some recommendations

• Free education for all children in Africa;• Relevant adult education programs aimed at

empowering Africans;• Standardising of the education system in Africa;• Significant percentage (at least 40%) of national

budgets should go into education;• Establishment of an African fund for education.

Money from the fund can be used to train Africans in areas ;

• Africa-wide SETA for the Continent

Empowerment for the less empowered should be a process of continuous education through knowledge transfer and

should have the ability to help ensure self-reliance

More focus on rural areas and townships More companies must be involved Removal of barriers to entry in SETAs Focus on development of service providers Equity measures on providers Real training for empowerment Removal of “silo” approach Real targets for unemployed youth Real enterprise development Real skills development for growth and

development Real programme offerings that are empowering Focus on uniformity of requirements Real education on NSDS requirements 96

Conclusion

Need to work together Focus on results Focus of change Focus on inclusion Focus on equity targets Focus on review of last five years Development of new programmes that will

empower all South Africans including these HDI’s Improving the image of SETAs Embarking on skills development training for all97

TRANSFORMATION IN THE FINANCIAL SERVICES SECTOR: Impact on economic growth in South Africa

Dr. Charles OkeahalamManaging DirectorAfrica Growth Holdings

Transformation in the financial services sector: Impact on economic growth in South Africa

Presentation at the 2nd BANKSETA International Conference

Dr. C. Charles Okeahalam, Managing Director, AGH, Johannesburg, South Africa

Venue: The Forum / The Campus, Wanderers Building, 57 Sloane Street, Bryanston

Johannesburg.

Date: 6th October, 2004.

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This presentation focuses on the following:

1. Introduction

2. An overview of SA’s financial services sector.

3. Aims & Objectives of transformation in SA’s financial services sector

4. An evaluation of recent transformation

5. Expected effects of transformation on the the financial sector

6. Challenges to transformation

7. Summary

8. Policy recommendations

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2. An overview of SA’s financial services sector

SA’s financial sector is the most highly sophisticated and technologically advanced financial market in Africa eg. JSE and BESA.

Banking sector – ‘Four pillars’: Nedcor, ABSA, First National Bank and Standard Bank

Entry by Barclays Bank - what are the implications?

Possibly greater competition – reduced margins - commitment to transformation

Key regulators of SA’s financial services sector are namely: SARB - Registrar of Banks, National Treasury, Financial Services Board (FSB).

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2. An overview of SA’s financial services sector continued

The financial sector’s share of national output has increased from 12.4% in 1991 to 19.6% in 2003

The financial and business services sector had the highest labour productivity index of all economic sectors during 1999-2001 and 2003

The JSE is the 17th largest stock exchange in the world

SA is gradually becoming the financial capital of Africa.

SA’s economic sectors are dependent on the financial sector for investment capital and banking and insurance services thus making the financial services sector central to economic growth.

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2. An overview of SA’s financial services sector continued

Focus on the Banking sector:

The banking sector had assets totaling R1,349 billion as at June 2004

Banking sector is highly concentrated with ‘four pillars’: Nedcor, ABSA, First National Bank and Standard Bank

Retail and wholesale banking products such as deposit-taking, provision of credit and investment banking are essential to economic growth

Banks provide liquidity and mobilize savings to profitable investment projects

Banks diversify financial and investment risks through basic and innovative banking services and products

Accordingly - A key role of financial intermediaries is to reduce costs of conducting business and enhance the efficiency of financial intermediation

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3. Objectives of transformation in SA’s financial services sector

The financial sector charter is expected to have a major impact on the financial services sector in various ways:

Human resource development – training Gender balance and sensitivity Procurement policies - BEE Enterprise development Increased access to financial services Increased empowerment financing – broad based?

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3. Objectives of transformation in SA’s financial services sector continued

Increased shareholder activism, ownership and control in the financial sector

Alter the regulatory structure and address regulatory issues

REAL - corporate social investment

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Objectives of transformation contd.

Transformation involves a business process re-engineering of financial services sector staff, consumers, stakeholders

and MINDSETS to:

Provide services relevant to the financial service needs of consumers Provide a service-based operational culture Reduce costs of financial services Increase competition in the financial services sector

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4. Recent transformation in SA’s financial services sector cont. Legislation - Changes in industry regulations such as the Financial Advisory and

Intermediary Act (FAIS Act) and Financial Intelligence Centre Act (FICA) aim to curb illegal financial transactions and increase confidence in SA’s financial markets

Relaxation of foreign exchange controls foster international investments and transactions via portfolio and foreign direct investments (Africa / non-Africa)

Formulation and implementation of the financial sector charter.

Increased use of technology in providing financial services such as mobile and internet banking

Entry of foreign financial services firms such as Barclays Bank – what are the implications for transformation?

Key question? Is BEE in the Financial Services Sector Transformation? YES and NO Depends on the nature of the deal.

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5. Expected effects of transformation on the financial sector Increase competition and reduced costs

Increased variety of products with the entry of foreign banks (such as Barclays Bank) and the implementation of appropriate financial sector regulation

Enhance delivery of the objectives of financial services firms

Increase financial intermediation at the lower end of the market eg. the success of CAPITEC.

Increase market efficiency and output

An increased understanding of the market environment particularly for low income households- particularly PDI

Accrual of ownership to a broader base of PDI shareholders

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6. Challenges to transformation

Oligopolistic and concentrated market structure in the financial services sector

Limited incentives to enter certain markets such as low envisaged profit opportunities at the lower end of the market

Lack of adequate consumer knowledge

Large number of un-banked: over 13 million adults are un-banked in SA

Difficulty in implementing financial sector charter and other regulations

Shortage of financial market specialists and expertise

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7. Summary

SA’s financial services sector is central to domestic growth

Recent transformation will increase output and reduce cost

Certain market segments are under-developed especially the lower end of the market

There is still a need for more transformation in the financial sector such as increased competition in different sub-markets

Implementation of the financial sector charter will promote a welfare efficient banking and financial sector

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8. Policy recommendations:

Change of mindset – perhaps entry by foreign players will enhance this – lets see.

Effective monitoring of the implementation of formulated regulations and charters.

Effective implementation of financial sector charter through public private partnerships and cooperation

Foster SMMEs in the financial services sector

Increasing access to education of financial services consumers

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BUILDING AN INNOVATIVE YET RESPONSIBLE CULTURE

Peter SengeMassachusetts Institute of TechnologySociety of Organizational Learning (SOL)

Facilitator: John Perlman, Presenter: AM Live, SAFM 104-107