Patrick LakabaneAssociate: Skills Development

17th March 2015

SBIDZ STRATEGIC SKILLS DEVELOPMENT OBJECTIVES

1. INTRODUCTION

Introduction• Government has recognized the impact of Special Economic Zones /

Industrial Development Zones in driving industrial and economic growth

and has designated areas to promote targeted economic activities and to

provide infrastructure and a platform for the ease of doing business.

• The Saldanha Bay IDZ (SBIDZ) has been designated and an operator license

issued to the Saldanha Bay Industrial Development Zone Licensing

Company (Pty) Ltd (SBIDZC),

• with the objectives of the SBIDZC being to create jobs and sustainable

economic development

Introduction….• With above objectives and responsibilities in mind,

• the SBIDZC sought to formulate a Skills Development Strategic Framework

that would convey the context of the project, the SBIDZC, the Industry,

understanding of the local conditions, and the work being undertaken by

others in this field

2. PURPOSE OF THE SKILLS DEVELOPMENT STRATEGIC FRAMEWORK

Purpose of the SDSF• The purpose of the Skills Development Strategic Framework (SDSF)

is to lay down the strategic intent and policy position of the SBIDZC with regards to its role in the skills development arena,

• in so far as it supports the Vision, Value Proposition and Strategic Objectives and Goals of the SBIDZ.

3. SKILLS DEVELOPMENT POLICY & LEGISLATIVE FRAMEWORK

Legislative & Regulatory framework

• Our SDSF is in line with relevant National and Provincial Skills Development legislature and strategy and comply to various regulations in terms of quality and standards regarding skills development and training.

• The dti’s Broadening Participation Division's Skills for the Economy Unit will, and has provided conceptual and programmatic guidance on the alignment of universal skills development to the various SEZ life-cycle phases

• The Western Cape Government’s Department of Economic Development and Tourism (DEDAT) will, and has provided strategic guidance to the development of the SBIDZ Skills Development Strategic Framework (SDSF) , in line with Strategic Objective 1: Creating Opportunities for Growth and Jobs, which resides under DEDAT

4. VALUE PROPOSITION TOWARDS SKILLS DEVELOPMENT

Our Obligation Towards Skills

• An important element of the SBIDZ’s value proposition, and its regulatory mandate, is the opportunity/mandate to:

- foster small business development- facilitate skills development- and thereby ultimately facilitating job creation.

3. GEOGRAPHIC FOCUS TOWARDS SKILLS DEVELOPMENT

Geographic Focus • SBIDZC recognises the equal importance of the three spheres

namely the National sphere, the Provincial sphere and the Local sphere.

• However, it is within the Local sphere that relationships and expectations from the local communities will be heightened,

• In addition, it is within the Local sphere where investment attractiveness and decision-making lies to investors

• Ease of logistics and the importance of time within the Oil and Gas Industry is paramount ( 2-3 hours delay in delivery of a component can cost the rig operator $50 000.00 or more)

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4. PARTNERSHIP WITH CIVIL SOCIETY

SBIDZC & SB Civil Society PartnershipThe Community Skills & Training Committee (CSTC)

• Purpose: Have a equally responsible, accountable and apolitical partnership to ensure that as many local individuals are up-skilled in order to equip them with the necessary skills to enable them to partake in the opportunities presented by the Saldanha Bay IDZ Development.

• The Community Skills & Training Committee (CSTC) was established between the SBIDZ Licensing Company (SBIDZC) and the Saldanha Bay civil society, to address issues around the accessibility of local and qualified labour.

• CSTC consists of 2 ward committee members from each ward, who meet monthly with SBIDZC Skills Coordinator and Stakeholder Relations Manager.

The CSTC will decide on how to engage with communities, what programmes

are required & how to identify candidates.

Partnership With Stakeholders • South African Oil & Gas Alliance• Skills Development & Innovation Unit (DEDAT)• West Coast Economic Development Partnership• Provincial Artisan Development Workgroup• SEZ Skills for the Economy Unit (DTI)• SIP’s Skills Co-ordinators (IDC)• Operation Phakisa Offshore Oil & Gas exploration Skills

Workgroup• Operation Phakisa Manufacturing Delivery Unit• Department of Higher Education & Training• United Kingdom Trade Investment

5. SBIDZ STRATEGIC OBJECTIVES

Strategic Objectives on Skills

• SO3: Provide a single point of contact for investors to address their concerns and queries.

• SO6: Up-skill the local community in order to equip them with the necessary skills to participate in opportunities related to IDZ development

• SO8: Secure public funding to foster economic development and job creation.

6. CHALLENGES TO SKILLS DEVELOPMENT

Limitations of the SBIDZ’s Scope

• The Oil & Gas and Marine Repair and Engineering Services Industry

• The SBIDZC is not the employer at-large nor is SBIDZC a training provider.

• Bureaucratic administrative processes that pertain to skills development.

• The SBIDZ can only, on a case-by-case basis apply for skills development funding

The Skills “Pipeline” Challenge School

Theory

Practical

Workplace

Assesment

Expertise

• National Census 2011 revealed an alarming lack of those with higher educational qualifications in Saldanha Bay

• Approximately only 6% of the population in possession of post-matric qualifications

• Approximately 34% having not completed matric. • Approximately 19% are in possession of Grade 12/St 10• The area is only served with one (1) Maths- and Science-focussed

High School (called the Denaledi Schools). • We require more students to feed into the TVET Colleges Platform

Challenges in Basic Education • Infrastructure: Is under pressure

• Language: Scarcity of Xhosa teachers & English

• High attrition rates: There is a high attrition rate of Grade 9-10 learners

• Inconsistent pass-rates: 2012 grade 9 pass-rate was 15% - grade 12 pass-rate was 91%

• Social ills : Gangsterism, Substance abuse, unforeseen teenage pregnancies

• Lack of sustainable career awareness

7. SCALE OF SKILLS DEMAND FROM THE INDUSTRY

Industry Demands on Skills • The SBIDZ Workforce Study and seek to:

• Investigate the workforce requirement of the SBIDZ• Identify the available skills levels in the area• Determine whether the output of training providers could

meet industry demands

Industry Demand on Skills Average Workforce Demand, based upon future scenario

5 Year Skills Development PlanTrain 520 individuals per annum in various skills and occupations with the focus on Oil

& Gas and Marine Repair Engineering & Fabrication

2013/2014 2014/2015 2015/2016 2016/2017 2017/2018

Projected Interventions 520 1040 1560 2080 2600

Projected Jobs 600 1600 2600 3600 4600

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500

1500

2500

3500

4500

5500

6500

7500

5201040

15602080

2600

600

1600

2600

3600

4600

1

Five Year Skillls Development Projection

8. CORE PILLORS OF THE SKILLS DEVELOPMENT SRATEGIC FRAMEWORK

Core Pillars• To enable us to build Human Capital in the Oil & Gas & Marine Repair

Engineering Services Industries , we require the 3 pillars of;

• The 3 pillars sits at the heart of the SDSF

Core Pillars • Places & Programmes

- accredited and recognised programmes & institutions to deliver initiatives and programmes in support of the “Skills Demand Value Chain” of the SBIDZ.

• People - whose skills must be developed, accredited and offered to the

Industry.

• Funding - as the capital that unlocks all intended initiatives and

programmes

9. SHORT-MEDUIM TERM STRATEGIC GOALS & TARGETS

Strategic Goals & Targets• Goal 1: Establish internal competencies for the SBIDZ

• Goal 2: Develop a 1st order Skills Development Plan

• Goal 3: Develop strategic stakeholder relationships with key players in the skills arena

• Goal 4: Implement an effective community skills and training forum

Strategic Goals & Targets• Goal 5: Develop an effective management system

• Goal 6: 520 candidates identified and undertaking training initiatives from the local community annually

• Goal 7: Establish small business forums to facilitate local business readiness

• Goal 8: Seek and secure funding, in line with SDP targets

10. Conclusion

Conclusion• SBIDZ, through its Strategic skills Development Objectives, will

ensure that skills development in the IDZ:- Is not regulated to philosophic sincerity- Implemented to the benefit of the people of SBM area- Our investors- The industry- The SBIDZ

• THANK YOU !