Legislative and Policy Framework
Key Legislation, Government Policies, Strategies and Programmes
The funding priorities of the NSF are guided by key South African legislation and policies while maintaining alignment with several strategies and plans of government.
Legislation
Constitution of the Republic of South Africa
The Constitution of the Republic of South Africa, 1996 (Act 108 of 1996) is the supreme law of the country. All laws of the country must be consistent the Constitution, 1996 and all government institutions derive their mandate from it. The Constitution, 1996 makes provision for other legislations regarding planning and performance monitoring across the three spheres of government.
The NSF derives its mandate from Sections 28(1) and 30B of the Skills Development Act, 1998 (Act 97 of 1998) (SDA). The SDA, 1998 supports Section 29(1) of the Bill of Rights, as enshrined in the Constitution, 1996, which outlines that everyone has the right to further education, which the state must make progressively available and accessible through reasonable measures.
Skills Development Act
The NSF was established in 1999 in terms of Section 27(1) of the SDA, 1998 (Act 97 of 1998) , stating the following: “The National Skills Fund is hereby established”. The NSF is, thereby, not established with legal persona.
When the DHET was established in 2009, the Director-General of Higher Education and Training assumed the accounting authority of the NSF, as stipulated in Section 29(1) of the SDA, 1998.
In terms of Section 29(1)(d) of the SDA, 1998, the Director-General of Higher Education and Training must, subject to the laws governing the public service, appoint the executive officer of the NSF, who will, upon such appointment, be in the employ of the public service.
Skills Development Levies Act
The NSF receives 20% of the skills development levies as contemplated in the SDL Act, 1999 (Act 9 of 1999) (SDL).
Intergovernmental Relations Framework Act
The South African Intergovernmental Relations Framework Act, 2005 (Act 13 of 2005) emphasises that “the three spheres of government are distinctive, interdependent and interrelated”. All three spheres of government (local, provincial and national) are autonomous. Notwithstanding their autonomy, the three spheres of government must plan together for the use of scarce resources and to ensure achievement of government priorities
Public Finance Management Act
On 12 October 2012, the Minister of Finance listed the NSF as a Schedule 3A public entity in terms of the PFMA, 1999 (Act 1 of 199, retrospectively effective from 1 April 2012 (Notice 821 in Government Gazette 35759).
The listing of the NSF as a public entity does not determine the legal persona status of the NSF. Instead, it prescribes the compliance framework that the NSF must adhere to in terms of the PFMA, 1999. The legal persona status is determined by the NSF’s founding legislation, namely the SDA, 1998.
SETAs Grant Regulations
The Sector Education and Training Authorities (SETAs) Grant Regulations provide a benchmark for the management of the skills levy including the thresholds for administration costs and the governance and operational considerations for managing skills levies.
Spatial Planning and Land Use Management Act
The SPLUMA, 2013 (Act 16 of 2013) is an important component of the drive to set the broad spatial agenda of the country, promoting the development principles of spatial justice, spatial sustainability, efficiency, spatial resilience and good administration.
Workplace-based Learning Programme Agreement
The Workplace-based Learning Programme Agreement, which was released by the Minister of Higher Education, Science and Innovation in October 2018:
- provides a framework for the types of workplace-based learning provision through the PSET system.
- provides for administration and the role of parties in workplace-based learning, including employers, learners, education and training providers, quality councils and the DHET.
National Qualifications Framework Amendment Act
The South African Intergovernmental Relations Framework Act, 2005 (Act 13 of 2005) emphasizes that “the three spheres of government are distinctive, interdependent and interrelated”. All three spheres of government (local, provincial and national) are autonomous. Notwithstanding their autonomy, the three spheres of government must plan together for the use of scarce resources and to ensure achievement of government priorities
Policies
National Growth Path Framework
The New Growth Path Framework, released in November 2010, has fixed six priority areas to job creation: infrastructure development, agriculture, mining, manufacturing, the green economy and tourism. The framework reflects the government’s commitment to prioritising employment creation in all economic policies and identifies strategies that will enable South Africa to grow in a more equitable and inclusive manner while attaining South Africa’s developmental agenda. A massive investment in infrastructure, as a critical driver of jobs across the economy, was key to the framework; as has been the improved coordination between institutions of the government and stronger partnerships with the private sector and organised labour towards leveraging resources in achieving the aims of the New Growth Path.
Skills Accord
Representatives of business, organised labour, the community constituency and government agreed to partnerships to achieve the New Growth Path target of 5 million new jobs by 2020:
- Commitment 1: To expand the level of training using existing facilities more fully
- Commitment 2: To make internship and placement opportunities available within workplaces
- Commitment 3: To set guidelines of ratios of trainees and artisans across the technical vocations in order to improve the level of training
- Commitment 4: To improve the funding of training and the use of funds available for training and incentives on companies to train
- Commitment 5: To set annual targets for training in state-owned enterprises
- Commitment 6: To improve Sector Education and Training Authority (SETA) governance and financial management as well as stakeholder involvement
- Commitment 7: To align training to the New Growth Path and improve sector skills plans
- Commitment 8: To improve the role and performance of technical and vocational education and training (TVET) colleges
White Paper on Post-school Education and Training
The White Paper on Post-school Education and Training (WP-PSET) sets out the government’s vision for an integrated system of post-school education and training (PSET) that is able to respond to the needs of the South African society and economy. The white paper outlines policy directions to guide the Department of Higher Education and Training (DHET) and the institutions for which it is responsible in order to contribute to building a developmental state with a vibrant democracy and a flourishing economy. Its main policy objectives are the following:
- A post-school system that can assist in building a fair, equitable, non-racial, non-sexist and democratic South Africa
- A single, coordinated PSET system
- Expanded access, improved quality and increased diversity of provision
- A stronger and more cooperative relationship between education and training institutions and the workplace
- A PSET system that is responsive to the needs of individual citizens, employers in both public and private sectors, as well as broader societal and developmental objectives
Youth Employment Accord
The government and social partners signed the Youth Employment Accord in April 2013 that sets out the joint commitments to prioritise youth employment and skills development as follows:
- Commitment 1: Education and training
- Commitment 2: Work exposure
- Commitment 3: Public sector measures
- Commitment 4: Youth target set-asides
- Commitment 5: Youth entrepreneurship and youth co-operatives
- Commitment 6: Private sector measures
Jobs Summit Agreement Framework
President Cyril Ramaphosa announced the Jobs Summit during his inaugural state of the Nation Address in February 2018 and, subsequently, requested the National Economic Development and Labour Council (Nedlac) to convene social partners to address the crisis of unemployment and to come up with practical solutions for South Africa’s ailing economy.
As stated in the Jobs Summit Agreement Framework, social partners agreed that one of the deficiencies of previous summits and agreements had been the failure to monitor implementation and to take remedial action where insufficient progress was being made. Social partners, therefore, agreed to:
- establish a Presidential Jobs Committee, which will receive progress report on a quarterly basis on the implementation of the action plans, monitor the status of employment and unemployment in the country and take remedial action where required.
- establish a joint technical committee of the Presidential Jobs Committee, which would undertake the following actions:
- Develop a monitoring and evaluation framework based on the outcomes anticipated from the action plans within one month of signing the agreement
- Ensure sustained collaboration amongst social partners, particularly in relation to improving outcomes and unlocking challenges
- Ensure that progress reports are made available on the Nedlac website
White Paper on Science, Technology and Innovation
The White Paper on Science, Technology and Innovation (WP-STI) “sets the long-term policy direction for the South African government to ensure a growing role for science, technology and innovation in a more prosperous and inclusive society. It focuses on using science, technology and innovation to accelerate inclusive economic growth, make the economy more competitive, and improve people’s daily lives. It aims to help South Africa benefit from global developments such as rapid technological advancement and geopolitical and demographic shifts, as well as respond to the threats associated with some of these global trends” (WP-STI pg. iii).
The WP-STI is explicit in its policy position and it focusses on strengthening skills in the economy. It states that South Africa requires diversity in its post-secondary education and that it is necessary to improve the responsiveness of the post-school education and training (PSET) system to the skills needs of the 21st century, in particular innovation and technology-driven change that affects organisations and individuals alike. It, thus, places responsibility on the National Skills Fund (NSF) to directing its skill funding to improving the low skills base and increasing the pool of students accessing university and science-based technical and vocational education and training (TVET) programmes.
Strategies and Plans
National Skills Development Strategy
There have been three iterations of the National Skills Development Strategy (NSDS) between 2001 and 2019, which informed National Skills Fund’s (NSF’s) funding priorities during this period.
The emphasis during the regime of the NSDS I (2001 to 2005) was on equality and the need to cultivate lifelong learning in a workplace environment. Emphasis was placed on learning that should be demand driven, based on the needs of employees in both the public and private sectors.
The emphasis in the NSDS II (2005 to 2010) was placed again on equity, quality training and skills development in the workplace. The need for the promotion of employability was identified. The NSDS II also identified the need for assisting designated groups to gain knowledge and experience in a workplace environment in order to gain critical skills. The quality of the provision was identified as a problem area needing improvement.
The NSDS III (2011 to 2019) defined the NSF as a catalytic fund, enabling the state to drive key skills strategies and to meet the training needs of the unemployed, non-levy-paying co-operatives, non-governmental organisations, community structures and vulnerable groups. It is due to the NSDS III that the NSF promoted strategic partnerships and innovation in project delivery. In this period, the NSF continued to drive change towards partnership-based programmes and contribute to raising the low-base of education and training in the country, as guided by government policies of redress and promotion of equity.
The NSDP 2030 is the long-term plan for the skills system that replaces the NSDS with effect from 2020.
Industrial Policy Action Plan
It has been recognised that the skills required for many of the national development strategies and priorities are related to the priority occupations. The Industrial Policy Action Plan (IPAP), which is implemented by the Department of Trade and Industry and Competition, is one of the key government plans that informs the National Skills Fund’s (NSF’s) funding strategy towards priority occupations.
The principal objective of the IPAP is to achieve structural change by encouraging the development, growth and increased competitiveness of the South African manufacturing sector.
10-year Innovation Plan
The Department of Science and Innovation (DSI) published the 10-year Innovation Plan in 2008 with the principal aim to drive South Africa towards a knowledge-based economy, where the production and spread of knowledge would bring economic benefit to the country through innovation and entrepreneurship.
As stated in the plan, the knowledge-based economy has four pillars: innovation, education, the economic and institutional regime, and information infrastructure. The DSI, in collaboration with other government departments, aims to boost innovation through a series of directed interventions in strategic areas.
Further, the recently configured Ministry of Higher Education, Science and Innovation requires better alignment, integration and articulation in the work of all post-school education and training (PSET) institutions and some DSI entities, with a new vision to drive an innovation-led skills development strategy within the context of a higher education, science and innovation landscape.
Human Resource Development Strategy of RSA
The Human Resource Development Strategy of South Africa (HRDSSA) is the long-term overarching strategy to drive human development in the country. The funding strategy of the NSF responds to and supports the following two commitments of the HRDSSA:
- Commitment 1: We will urgently overcome the shortages in the supply of people with the priority skills needed for the successful implementation of current strategies to achieve accelerated economic growth.
- Commitment 2: We will increase the number of appropriately skilled people to meet the demands of our current and emerging economic and social development priorities.
National Development Plan 2030
The National Development Plan 2030 (NDP) is the over-arching long-term strategy of government, which aims to eliminate poverty and reduce inequality by 2030, among other policy imperatives. It serves as the single most important longer-term strategy to which all strategies of government must be aligned.
The NDP 2030 places the following specific funding responsibility on the National Skills Fund (NSF): “Training for start-ups and emerging businesses, rural development, adult basic education and training, and community development should be supported by money from the National Skills Fund and managed by relevant departments or agencies, such as Small Enterprise Development Agency, Kha Ri Gude and the National Youth Development Agency. This would enable the National Skills Fund to focus on large skills development programmes that form part of a broader programme” (NDP pg. 286).
National Infrastructure Plan (Strategic Infrastructure Projects)
It has been recognised that the skills required for many of the national development strategies and priorities are related to the priority occupations. The New Growth Path, with specific reference to the 18 strategic integrated projects (SIPs) implemented as part of the National Infrastructure Plan, is one of the key government plans that informs the NSF’s funding strategy towards priority occupations.
The artisanal Centres of Specialisation (CoS) Programme being rolled out at 26 technical and vocational education and training (TVET) college campuses aims to address the demand for priority artisanal trades that are needed to implement the National Development Plan (NDP) 2030 and, specifically, the National Infrastructure Plan. It also aims to gear public TVET colleges to deliver quality trade qualifications that meet industry demands.
National Plan for Post-school Education and Training
Towards building a skilled and capable workforce to support an inclusive growth path, the National Plan for Post-school Education and Training (NP-PSET) provides a consolidated roadmap for a more integrated, transformed, articulated and effective post-school system. Its focus is on programmes that will address the needs of the poor in a manner that supports the equity imperatives of the country. Consequently, the NP-PSET requires the National Skills Fund (NSF) to regain its focus over the medium term with more support for the most marginalised groups, including the unemployed and, primarily, in the community education and training (CET) college system.
District Development Model
The District Development Model is a national spatial development plan launched by the President in 2019 and is based on the systematic planning that focusses on South Africa’s 44 district and eight metropolitan municipalities.
Revised Medium-term Strategic Framework
The revised Medium-term Strategic Framework (MTSF) is the government’s strategic planning framework for the 2020–2025 electoral term. This is the government’s monitoring framework for the national development five-year implementation plan during the electoral cycle. It reflects how the government will measure its progress against the commitments made in the election manifesto of the governing party and the national development five-year implementation plan. It is a basis for measurement of government performance and must be aligned with measurement of performance at the national, provincial and local government spheres. The MTSF sets out the actions which government will take and the targets to be achieved.
The government has identified seven priorities derived from the Electoral Mandate and the State of the Nation Address, which include Priority 2 (education, skills and health is relevant to the National Skills Fund (NSF) as a public entity under the auspices of the Department of Higher Education and Training (DHET)). This priority contributes to Pillar 2 of the three National Development Plan (NDP) pillars, which is “Capabilities of South Africans”.
National Skills Development Plan 2030
The National Skills Development Plan (NSDP) 2030 was approved by the Minister of Higher Education, Science and Innovation on 7 March 2019 for implementation with effect from 1 April 2020. The vision of the NSDP is “an educated, skilled and capable workforce for South Africa”.
The NSDP builds on the implementation of the National Skills Development Strategy (NSDS) III and intends to address systemic considerations to improve the effectiveness and efficiency of the skills development system and institutions. Mainly, the NSDP seeks to further integrate skills development interventions with the post-school education and training (PSET) system in order to address the triple challenge of high levels of unemployment, poverty and inequality through skills development interventions such as learnerships, apprenticeships and other forms of workplace-based learning. It is envisaged that improving and increasing access to occupations in high demand (OIHD) and priority skills will contribute to supporting economic growth, employment creation and social development. The NSDP will contribute to strategies and priorities of various sectors of the economy, with an emphasis on inclusive growth and employment generation, as set out in the National Development Plan (NDP), Industrial Policy Action Plan (IPAP) and other key policy documents of government.
Covid-19 the Economic Reconstruction and Recovery Plan
The Covid-19 the Economic Reconstruction and Recovery Plan focusses on specific interventions to restore South Africa’s economy following the devastation caused by Covid-19. The objectives of the plan, linked to the vision of the country, as set out in the National Development Plan (NDP), are as follows:
- To create jobs primarily through aggressive infrastructure investment and mass employment programmes
- To reindustrialise our economy, focussing on growing small businesses
- To accelerate economic reforms to unlock investment and growth
- To fight crime and corruption
- To improve the capability of the state
COVID-19 Economic Reconstruction and Recovery Skills Strategy
The Economic Reconstruction and Recovery Skills Strategy addresses the interventions that are required to ensure the successful implementation of the Economic Reconstruction and Recovery Plan. In implementing the strategy, the focus will be on interventions with the potential to see the participation of large numbers of young people to access opportunities in the short term.