Swiss-South African Co-operation Initiative
Funding Programme

Section Summary:


Our Focus and Strategy

SSACI's overall objective in terms of its Deed of Trust is: "To advance educational opportunities for disadvantaged young South Africans in order to enable them to obtain employment". This is in line with one of the South African government's own priorities, namely to tackle the critical problem of youth unemployment.

SSACI believes that its money can be best spent on vocational training and job creation for out-of-school youths in the 16-35 year-old age bracket. Particular emphasis is given to training in the Further Education and Training band of the National Qualifications Framework - i.e. the technical and vocational equivalents of Grades 10-12 in the academic school system.

To receive funding from SSACI, a project must comprise a substantial technical or vocational training component and a post-training support programme aimed at assisting successful trainees either to find jobs or to create their own. In most cases, there is also a period of on-the-job mentoring for first-time employees.

Since SSACI seeks to get youths into sustainable long-term employment, it concentrates its projects within sectors of the economy that are:
  1. Growing, and are therefore likely to offer future opportunities for advancement
  2. Creating job opportunities from that growth (as opposed to the "jobless growth" found in some sectors of the economy)
  3. Creating the sort of jobs that young people can fill, i.e. jobs that require a relatively low level of skills and experience at entry-level, but offer good prospects for further on-the-job training and hence of career advancement
Research reports have enabled SSACI to identify about twenty such industries or sectors of the economy - ranging from automobile repairs, business services and catering to information technology, retailing, and tourism and hospitality - within which to fund promising projects..

SSACI also gives priority to fostering micro-enterprises, recognising these as the most rapidly-growing sector of the South African economy, with the highest rate of growth in employment.


Our Funding Portfolio

Overview

SSACI’s funding programme comprises three elements:
  • Vocational skills training projects, including technical skills training, life-skills training and post-training support in finding a job or starting a business
  • Enterprise development projects, which include business start-up training, the provision of business-development services and loans to emerging youth-owned enterprises
  • Special projects, including research, school infrastructure projects and small grants to “special case” initiatives.
To date, SSACI has funded 46 major projects, of which 11 are currently active and 35 have run to completion. Key statistics include the following:

Programme
Vocational skills training
Enterprise development
Special projects 		Rand-value to date
36’305’000
16’862’000
3’735’000

By June 2007, SSACI’s support to these projects had resulted in:

Total number of youths scheduled for training 4'608
Total number of youths enrolled for training 3'927
Total number of graduates from training 3'382 (= 91% of those due to graduate)
Total number of graduates generating regular incomes through wage- or self-employment 2'731 (= 77% of graduates)
Number of new enterprises created 358
Number of pre-existing enterprises receiving business development services 342
Number of entirely new jobs being created 940

Apart from these quantitative outputs, SSACI’s activities also resulted in:
  • The development of new nationally-recognised qualifications and training courses in agriculture, early childhood development, tourism, call-centres and construction
  • The development of a new model for supporting business support services supporting SMEs now being adopted by Department of Labour and the National Skills Fund
  • Adoption of a new student bursary scheme by the North West provincial government
  • Three projects becoming fully self-sustainable, and another two making substantial progress towards becoming so
  • Three pilot projects being adopted and scaled up by government agencies
  • Capacity development in several NGO partners
Focus Areas

SSACI aims to open up new pathways to employment for youths. To this end, we seek projects that prepare youths for long-term careers in industries or enterprises that offer prospects for sustainable employment, personal development and the acquisition of further skills. We therefore focus on sectors of the economy that:
  • Are growing, and are therefore likely to offer future opportunities for advancement
  • Are creating new job opportunities from that growth (as opposed to the "jobless growth" found in some sectors of the economy)
  • Require low-to-intermediate entry-levels of skill and are therefore the sort of jobs that young people can immediately fill
Cost-benefits

The average cost of SSACI's vocational training projects is R19'000 per person trained and placed in employment. Graduates of these projects typically went from training into jobs paying R2'500-R4'000 per month. Without training, these youths would have remained unemployed or found unskilled jobs at the national minimum wages of R680 per month in rural areas and R800 per month in urban areas.

The average cost of the enterprise-development projects was R17'000 per job created. Newly-established entrepreneurs in the informal sector (i.e. unregistered micro-enterprises) typically show profits of R1'000-R1'500 per month, with a small number (about 5%) going up to R10'000. Though low, these incomes represent a significant step up for youths who were previously unemployed They are also well above the national norm for businesses in the informal sector, whose median turnover is just R670 per month.

It is worth noting that training in SSACI-funded projects not only provide employment for the beneficiaries but also long-term employability because trainees acquire specific occupational, entrepreneurial and life skills, as well as valuable work experience. This gives them access to further work opportunities.

Level of Technical Skills Training

Research into human resource development in South Africa consistently reveals that the greatest skills shortages and therefore the highest demand for labour are to be found in the technical industries. Intermediate-level technical skills are especially in demand, i.e. skills corresponding to levels 3-5 on the National Qualifications Framework, a range that includes technicians, artisans and all skilled workers below the level of master-craftsman.

Many training institutions and employers complain that they find it difficult to find suitable young candidates for technical training programmes because of low levels of competence in mathematics and foundational, generic technical skills amongst school-leavers. SSACI therefore gives priority to training at the intermediate skills level, while at the same time funding some training at higher and lower levels.

The concentration of projects at levels 3-5 reflects SSACI's special attention to the intermediate skills-level.

SSACI places a high value on training that prepares trainees for immediate entry into the workplace. All our vocational-training projects are required to bring trainees to the point of "work-readiness". To do this, they must not only apply practice-orientated training methods but also provide trainees with sufficient opportunities to exercise their new-found skills.


List of Projects

1. List of Current Projects

Name Description Rand Value
Avitourism Training of 20 youths from rural communities in Limpopo Province as self-employed tour guides on local wilderness trails, and upgrading of training facilities. Gallery... 1'800'000
 
KZN Rural Health Initiative Training of 35 youths from Ingwavuma district in KZN to study health sciences, followed by employment in rural hospitals and clinics. Gallery... 3’600’000
 
Innovative Enterprise Development Training, mentorship and business loans for emerging young entrepreneurs with innovative businesses in Cape Town to help them grow their businesses and create more jobs. Gallery... 1’400’000
 
KZN Poultry Farming Training of 95 youths in KwaZulu-Natal as commercial poultry farmers through a new learnership implemented in collaboration with the Agriculture SETA Gallery... 2'700'000
 
Stellemploy Artisan Training Establishment of a local skills training centre in Stellenbosch and entry-level training of 390 artisans, followed by placement in the construction and light engineering industries. Gallery... 3’600’000
 
Business Start-Up Training Training and business development services for 350 young entrepreneurs in Gauteng, North-West and Free State provinces. Gallery... 1’690’000
 
Wits Rural Health Initiative Training of 60 youths from rural communities in North West and Limpopo provinces, followed by placement in rural hospitals and clinics. Gallery... 3’658’000
 
Thembalethu BDS Business development services for youth-owned enterprises in rural Mpumalanga. 1'500'000
 
Basic Entrepreneurial Skills Development Development and piloting through 400 enterprises in 6 provincial sites (Free State, Limpopo, Gauteng, North West, KZN & Mpumalanga), of a model for delivering intensive hand-holding services that could be sustained or replicated through further funding from the National Skills Fund.Gallery... 5’600’000
 
Community ECD Services Training to national-certificate level and placement of 50 early childhood development (ECD) practitioners, accompanied by in-service training and support for 40 community-based ECD centres in the Western Cape. Gallery... 2’500’000
 
FET College Training Assistance to four public Further Education & Training colleges in implementing the new engineering skills curriculum by providing teachers with in-service training and learners with access to workplace-based experiential training. Gallery... 2’500’000
 
Youth Hospitality Training Training of 300 youths for the hospitality industry, leading up to the 2010 FIFA World Cup tournament, and assistance with job placement. Gallery... 3’000’000
 
Mobile Mentors Provision of "mobile mentorship" and other on-site business-development services to youth-owned enterprises in Gauteng and the Western Cape. Gallery... 300’000
 
Accelerated Artisan Training Fast-track training of 30 youths as fully-qualified fitter-and-turners, electricians or tool-jig-and-die-makers. Gallery... 1'800'000
 
Inner-City Furniture Skills Training of 17 youths from inner-city Johannesburg in carpentry and upholstery and place them in jobs in the furniture manufacturing or repair industry. Gallery... 220'000


2. List of Previous Projects

Name Description Rand Value
TECSAT Technical Education Training of 120 Western Cape youths in metalworking and electrical and mechanical engineering at FET institutions and assistance in job placement. Gallery... 2’128’000
 
Amsai Community School IT Centre Construction of an IT centre for use by this community school and adult basic education centre in Orange Farm informal settlement, Gauteng 2'400’000
 
Bahloki Rural Enterprise Development Technical skills and entrepreneurial training for 100 youths in rural Mpumalanga 400’000
 
Forest Town Skills Centre Refurbishment and equipping of a skills training centre for senior learners at Forest Town School for handicapped learners 350’000
 
Furniture Industry Skills Training Technical skills training in carpentry, joinery, furniture-manufacture and cabinet-making, followed by post-training assistance in finding employment or setting up micro-enterprises, for 190 youths from North West Province 2'319’000
 
Street Youths Skills Training Life Skills, entrepreneurial skills and literacy training for 60 "street youths" from Durban and East Rand 215’400
 
Siyavuka Ceramic Design & Manufacture Training for 30 unemployed Soweto youths in ceramic design and manufacture, followed by job placement or incubation facilities and business advice to graduates who want to establish their own business. 686’000
 
Youth Empowerment Training Training in life-skills and self-empowerment for 500 unemployed youths from Gauteng and Western Cape Gallery... 2'820’000
 
Soweto Disabled Entrepreneur Project Technical skills training (in welding or catering) and post-training mentorship in setting up micro-enterprises for 25 disabled youths in Soweto, Gauteng 438’000
 
Business Training by Community Radio Business and technical skills training by a mixture of contact sessions and distance education in tourism and hospitality-related enterprises for 30 young entrepreneurs in 12 selected localities around the country 800’000
 
Business Skills Development Centre Entry-level training in office and business skills and post-training mentorship in finding jobs or setting up micro-enterprises for 175 youths from the greater Cape Town area Gallery... 2'300’000
 
Wilderness Therapy Trail-guiding FET and tertiary-level training for 30 formerly-militarised youths in 4 provinces as wilderness guides 930’000
 
Eco-Tourguiding Training for 10 youths from Tembisa/Ivory Park as eco-tour guides and assistance in setting up tourism agency to coincide with WSSD 450’000
 
Small projects (15.1-15.18) 18 small projects, usually involving research and development of training courses, or deserving “welfare” projects, each valued at under R50’000 561’000
 
“Conquest for Life” Skills Training Training in electrical appliance repair, carpentry, upholstery or detergent production for 100 youths-at-risk in Westbury and Coronationville, Gauteng, and post-training mentorship in finding jobs or setting up micro-enterprises 900’000
 
Office Skills Training for Employment Training in general office administration skills for 60 youths from the greater Cape Town metropole, and post-training assistance in finding jobs 580’000
 
Rural Students’ Technical Education Provision of 3-year scholarships for 58 youths from rural communities in Western Cape, KZN, Limpopo and North West Provinces to study approved technical courses at tertiary level, and assistance in finding wage-employment after graduation 1’094’000
 
KZN Tourism & Hospitality Training Training and in-service learnerships in the hospitality industry for 120 youths from rural Western Cape and KZN, and post-training assistance in finding jobs Gallery... 1’226’000
 
Borakanelo Local Enterpise Development Vocational training in welding, carpentry or dress-making for 60 youths from the rural Delpoortshoop area of the Northern Cape, and post-training mentorship in setting up micro-enterprises 554’000
 
I-Fundi Call-Centre Training Training and placement of 110 youths as call-centre agents in Gauteng through a new learnership programme developed in conjunction with the Services SETA Gallery... 2’090’000
 
DIT New Venture Creation Learnership Technical and entrepreneurial training for 30 youths in the ICT-support industry, leading to the establishment of 20 new businesses through new venture-creation learnerships developed in conjunction with the ICT SETA 750’000
 
Zenzele Youths Skills Training Training in technical and entrepreneurial skills for 30 Western Cape youths and assistance insetting up micro-enterprises 688’000
 
ECD Practitioners’ Training Training of 30 young women as early childhood development practitioners through a new 18-month learnership programme developed in conjunction with the Education, Training and Development SETA 650’000
 
Pelindaba Engineering Skills Training Practical training, followed by job placement, for 50 youths studying mechanical and electrical engineering at secondary and tertiary level 800’000
 
Athlone Call-Centre Training Training and placement of 284 youths as call-centre agents in Western Cape a mix of learnerships and short courses developed in conjunction with the Services SETA Gallery... 2’344’000
 
KZN Midlands Local Enterprise Development Training of 30 youths from the Natal midlands as entrepreneurs and assistance in establishing micro-enterprises 354’000
 
W/Cape IT Franchising Training of 10 youths from Cape Town as ICT technicians and assistance in establishing franchised micro-businesses. 896’000
 
Bergzicht Tourism & Hospitality Project Development of a new entry-level learnership in the tourism and hospitality industry, and training of a pilot group of 45 learners from the Western Cape, followed by assistance in finding wage-employment or starting their own micro-enterprises Gallery... 425’000
 
Conference on Micro-Enterpirse Development International conference on micro-enterprise development and finance, Nov 2003 190’000
 
Jala Peo Youth Enterprise Development Business development services for 50 micro-enterprises in the Moqhaka district (Free State province) in order to promote business growth and further employment Gallery... 650’000
 
Vukani IT Technician Training Training of 54 youths from Tshwane as computer hardware and software support technicians and job placement Gallery... 475’000
 
Thembalethu Rural Enterprise Development Start-up business skills training for 30 emerging young entrepreneurs in rural Mpumalanga Gallery... 880’000
 
Inyathelo Tourism Market Development Market development services through 10 tourism enterprises in the Western Cape in order to promote growth and further employment 530’000
 
W/Cape Youth Tourism Technical and business skills training in the Western Cape tourism & hospitality industry for 30 youths, & assistance in finding employment 430’000
 
Giyani High School Training Centres Refurbishment and equipping of a technical skills training centre and a computer centre 315’000
 
TNT Voluntary Youth Enterprise Mentoring Mentoring by volunteers of 200 emerging young entrepreneurs in Gauteng and W/Cape to help them grow their businesses and create more jobs. Gallery... 500’000
 
Research into Youth Entrepreneurship Research into factors promoting or impeding youth entrepreneurship in South Africa, in order to identify ways in which young people’s entry into business could be facilitated. 200’000
 
Sustainable Home Construction Development of a new learnership in sustainable home construction and training of a pilot group of 40 young artisans in Western Cape Gallery... 700’000



Rural Health Projects


Overview

SSACI is currently funding two projects in the rural health sector that address three critical problems in South Africa:
  • the shortage of qualified professional health staff in rural hospitals
  • the high incidence of unemployment amongst youths in rural areas
  • high rates of HIV/AIDS infection in rural communities
The projects involve recruiting and selecting talented school-leavers from deep-rural areas in KwaZulu Natal, Mpumalanga and North West Provinces for training as health professionals, before placing them back into local hospitals and clinics to serve for a period equal to the duration of their studies. During their period of study, they also serve as peer HIV/AIDS counsellors to youths from their home areas.

Objectives and strategy

The principal objective of this project is to assist rural hospitals to recruit and retrain qualified health professionals.

Secondary objectives are to
  • reduce unemployment and poverty by opening up access to tertiary education and careers in the health professions to youths from impoverished homes
  • raise awareness amongst rural learners of career opportunities in the health sciences and motivate them to achieve the grades needed for higher education
  • reduce the rate of HIV/AIDS infection amongst rural youths by using the bursary-scheme students as peer-counsellors in local schools
The strategy for achieving these objectives involves:
  • Provision of scholarships for students form targeted rural areas to study approved health sciences courses at tertiary level; these students, being from rural areas themselves, are more likely to settle there permanently on completion of their required period of work-back
  • Academic support for these students in their university studies through a mentoring programme; this has been found to be essential in assisting students from under-resourced rural schools to cope with the challenges of tertiary education at large, urban universities
  • Use of the scholarship students during their period of study as role models and peer HIV/AIDS educators; such counsellors have very high credibility in their home areas
  • A "work-back" contract in terms of which graduates serve in participating hospitals in their home areas for a period equal to the length of their scholarship; typically, this will last for 3-4 years, during which time the graduate will likely have established himself/herself in a senior position in the hospital and developed strong social ties (including marriage and family connections) with the community.
Approved courses of study include:
  • Medicine (leading to a doctor’s qualification)
  • Pharmacy
  • Dentistry
  • Dental therapy
  • Radiography
  • Physiotherapy
  • Optometry
  • Medical technology
Partners

The principal partners in these projects are:
  • SSACI, responsible for providing the bulk of the funding and for external monitoring and evaluation
  • The Friends of Mosvold Hospital Trust and the Wits Rural Health Initiative, two non-profit organisations, responsible for recruiting, selection, mentoring and placing the students, and for implementing the HIV/AIDS peer-counselling programme
  • Four universities - Witwatersrand, KwaZulu-Natal, MEDUNSA and the Durban University of Technology - provide most of the professional training and reserve places for candidates nominated by the projects (subject to their usual academic performance criteria)
Outputs to Date

By the end of 2006:
  • 73 students from deep-rural communities had been enrolled for studies at the four participating universities in 15 health disciplines (medicine, physiotherapy, pharmacy, occupational therapy, nutrition, medical technology, social work, optometry, dental therapy, dentistry, environmental health, speech therapy, nursing, radiology and psychology).
  • 17 of these students had completed their courses and qualified as a doctor (1), pharmacist (1), optometrist (1), physiotherapist (3), dental therapist (2), radiographer (1), nurse (2), nutritionist (1), social worker (1) or medical technologist (4)
  • All the graduates are working in rural hospitals where, amongst other services, they have established a new optometry clinic and a dental therapy unit. This fulfils one of the main objectives of the project – namely, to develop capacity within the local population to ensure the provision long-term health services.
  • A total of over 600 "person-days" had been spent on HIV/AIDS counselling in schools near to the participating hospitals
  • The provincial departments of health in KwaZulu-Natal and North-West province have initiated discussions with the project steering committees with a view to modifying their own bursary schemes along the lines of these projects so as to give more attention to the needs of rural hospitals
Funding

SSACI has allocated R9’057’000 (approximately CHF1’800’000) to these two projects. On the basis of SSACI’s commitment, the two lead agencies – Friends of Mosvold Hospital Trust and the Wits Rural Health Initiative – were able to secure additional grants amounting to almost R4’000’000 from a charitable U.S trust, Medical Education for South African Blacks (MESAB).

KZN provincial minister of health Dr Z Mkize poses with SSACI-funded students at an "open day" at Mosvold hospital in December 2003
 
 
Mr John Mkhumbuzi, Mosvold's first dental therapist and a graduate of the SSACI-funded scholarship programme Ms Sinenhlanhla Gumede, physiotherapist and SSACI-funded graduate




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