Gauteng Master Skills Plan 2 (MSP2) for the period 2015 ...
Transcript of Gauteng Master Skills Plan 2 (MSP2) for the period 2015 ...
Gauteng Master Skills Plan 2 (MSP2) for the period 2015 - 2020
MSP2 Final Report
30 September 2015
MSP2 Final Report i
Contents
Executive summary ............................................................................................................................... vii
1. Introduction ...................................................................................................................................... 1
1.1. Overall purpose ........................................................................................................................ 1
1.2. Conceptual framework: Skills development Value Chain ......................................................... 1
1.3. Study methodology ................................................................................................................... 3
1.4. Analytical framework................................................................................................................. 4
1.5. Skills demand, supply and skills gap modelling ....................................................................... 5
1.6. GCR Master Skills Plan 2 (2015 to 2020) and GCR Skills Strategy ........................................ 5
1.7. Limitations of the study ............................................................................................................. 6
1.8. Structure of the document ........................................................................................................ 6
2. High-level findings: first Master Skills Plan (2010 – 2015) .............................................................. 8
2.1. Purpose, vision, mission and goals of MSP1 ........................................................................... 8
2.2. Achievements of MSP1 ............................................................................................................ 8
2.3. Key learnings of the first MSP ................................................................................................ 11
2.4. Justification for an MSP2 and implications of MSP1 learnings for MSP2 .............................. 13
3. Setting the context for the MSP2 framework ................................................................................. 15
3.1. Relationship between economic growth, development and employment .............................. 15
3.2. Economic context ................................................................................................................... 15
3.3. The ‘Development Cascade’ .................................................................................................. 23
3.4. Municipal development drivers ............................................................................................... 28
3.5. Identifying skills priority areas in the GCR .............................................................................. 31
3.6. Implications of the contextual reality for the MSP2 ................................................................ 31
3.7. Four Pillars of skills priority for the MSP2 ............................................................................... 33
4. Second Master Skills Plan (2015 to 2020) .................................................................................... 35
4.1. Mission, objectives and principles of MSP2 ........................................................................... 35
4.2. Six elements of MSP2 ............................................................................................................ 38
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5. Gauteng City Region Skills Strategy 1 (GSS1) ............................................................................. 49
5.1. GSS development methodology, limitations and risks ........................................................... 49
5.2. Modelling skills supply, skills demand and the skills gap in the GCR .................................... 50
5.3. GCR Skills Strategy: Key challenges ..................................................................................... 57
5.4. Defining priority skills focus areas for the GSS ...................................................................... 57
5.5. Strategic Focus Areas and Related Skills Programmes ......................................................... 58
5.6. Applying MSP Strategic Programmes to the TMR focus areas in the GCR........................... 60
6. High-Level implementation plan (HIP1) for the Gauteng Master Skills Plan 2015 to 2020 .......... 62
6.1. Elements of the high-level implementation plan 1 (HIP1) ...................................................... 62
6.2. Element 1: Re-structure the GCR institutional skills landscape ............................................. 63
6.3. Element 2: Clarify skills implementation capacity ................................................................... 66
6.4. Element 3: Implement the embedded skills development methodology ................................ 67
6.5. Element 4: Sign-off and implementation of the GCR Skills Strategy (GSS) baseline (GSS1) 70
6.6. Element 5: Clear monitoring and evaluation (M&E) framework ............................................. 72
6.7. Element 6: Finalise implementation plan activities ................................................................. 76
7. Conclusion ..................................................................................................................................... 78
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List of Figures and Tables
Figure 1: Skills Development Value Chain .............................................................................................. 2
Figure 2: MSP2 – Skills Planning Methodology ...................................................................................... 4
Figure 3: Gross Value Add (GVA) per Sector in the GCR (2013) ......................................................... 16
Figure 4: Gross Value Add (GVA) Per Municipality in the GCR (2013) ................................................ 17
Figure 5: Relative Size and Growth of Economic Sectors in the GCR (1995 to 2020) ........................ 19
Figure 6: Projected Size and Growth of Economic Sectors in the GCR (2014 to 2020) ...................... 20
Figure 7: Changes in Skills Profile of the GCR Workforce (2014 to 2020) ........................................... 21
Figure 8: NDP Strategic Thrusts ........................................................................................................... 25
Figure 9: GCR Transformation, Modernisation and Reindustrialisation (TMR) Strategy...................... 27
Figure 10: Interpreting Skills Requirements from the NDP and TMR Strategies .................................. 32
Figure 11: MSP2 – Skills Priorities for the Gauteng Skills Strategy...................................................... 33
Figure 12: MSP2 – ‘4E’ Principles Framework ..................................................................................... 36
Figure 13: MSP2- Relationship between ‘4E’ Framework and Skills Priorities ..................................... 37
Figure 14: MSP2- Six Structuring Elements ......................................................................................... 38
Figure 15: MSP2 – Proposed Institutional Framework for Skills in the GCR ........................................ 40
Figure 16: MSP2 – Skills Development Methodology ........................................................................... 45
Figure 17: GCR Skills Model Overview ................................................................................................. 50
Figure 18: Skills composition and extent of informal employment of different sectors in Gauteng in
2013 ...................................................................................................................................................... 51
Table 1: MSP1 – Priority Skills Targets ................................................................................................ 12
Table 2: Projected employment by skills and formality under the Middle Road scenario..................... 52
Table 3: Scenarios, Economic Sectors and Skills Categories in the Economic Model ........................ 53
Table 4: Skills Gap per Sector per NQF Level ...................................................................................... 56
Table 5: MSP2 – Matching Strategic Skills Programmes to TMR Programme Priorities ..................... 60
Table 6: MSP2- Element 1 Implementation Plan (Restructure the GCR Institutional Landscape) ....... 63
Table 7: MSP2- Element 2 Implementation Plan (Clarify Skills Implementation Capacity) .................. 66
Table 8: MSP2- Element 3 Implementation Plan (Implement the Embedded Skills Development
Methodology) ........................................................................................................................................ 67
Table 9: MSP2- Element 4 Implementation Plan (GCR Skills Strategy Baseline)................................ 70
Table 10: MSP2- Element 5 Implementation Plan (Monitoring & Evaluation Framework) ................... 72
Table 11: MSP2- Element 6 Implementation Plan (Finalise Implementation Plan) .............................. 76
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Abbreviations and Acronyms
4E Framework Proposed framework for MSP2: Excellence; Employability; Entrepreneurship; Economic growth
ABET Adult Basic Education and Training
AD Artisan Development
AET Adult Education and Training
Agri Agriculture
AGRISETA Agriculture Sector Education and Training Authority
AIDS Acquired Immune Deficiency Syndrome
APP Annual Performance Plan
Apr April
ASS Annual Schools Survey
ATR Annual Training Report
Aug August
B Bachelor’s Degree
BANKSETA Banking Sector Education and Training Authority
BBBEE Broad Based Black Economic Empowerment
BP Bachelors Pass
BPO Business Process Outsourcing
BPO&O Business Process Outsourcing & Off-shoring
CATHSETA Culture Art Tourism Hospitality and Sports Sector Education and Training Authority
CBO Community-Based Organisation
CEO Chief Operating Officer
CES Core Education Skills Development
CETA Construction Sector Education and Training Authority
CDP Career Development Programme
CHE Council on Higher Education
Com Communication
Const Construction
Co-op Cooperative ("coop") or co-operative ("co-op")
CSIR Council for Scientific and Industrial Research
CWP Community Work Programme
D Doctorate (PHD)
DBE Department of Basic Education
Dec December
DED Department of Economic Development
DID Department of Infrastructure Development
Dip Diploma
DHET Department of Higher Education and Training
DOE Department of Education
DOL Department of Labour
DPSA Department Public Service and Administration
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DSD Department of Social Development
DTI Department of Trade and Industry (the dti)
E&T Education and Training
ECD Early Childhood Development
Eco Trsfm Economic Transformation
Eco Infra Economic Infrastructure
EDP Entrepreneur Development
EPWP Extended Public Works Programme
ETDP SETA Education Training and Development Sector Education and Training Authority
EWSETA Energy and Water Sector Education and Training Authority
EXCO Executive Committee
FabLabs Fabrication Laboratory (Arts & Craft eKasilabs and Kusile Mobile Science labs)
FASSET Finance and Accounting Services Sector Education and Training Authority
FEDUSA Federation of Unions of South Africa
FBO Faith-Based Organisation
Feb February
FET Further Education and Training
Fin Financial
FOODBEV Food and Beverage Sector Education and Training Authority
FP&M Fibre Processing and Manufacturing Sector Education and Training Authority
FY Financial Year
GAP Gauteng Accelerator Programme
GC General Certificate
GCR Gauteng City Region
GCRA Gauteng City Region Academy
GCRO Gauteng City Region Observatory
GDE Gauteng Department of Education
GEDP Gauteng Economic Development Plan (2015 to 2020)
GET General Education and Training
GETC General Education and Training Certificate
GEYODIS Gender, Youth and Disability
GGDA Gauteng Growth and Development Agency
GIKES Gauteng Innovation and Knowledge Economy Strategy
Govt/Gov Government
GP Gauteng Province
GPG Gauteng Provincial Government
GSF GCR Skills Forum
GSP GCR Skills Planning Committee
GSS Gauteng City Region Skills Strategy [GSS1 - GSS1 (FY15/16) and GSS2 (FY16/17)]
GTAC Government Technical Advisory Centre
GTMS Government Transformation & Modernisation Skills Development
GVA Gross Value Add
H Honours Degree
HC Higher Certificate
HEI Higher Education Institutes
HEMIS Higher Education Information Management System
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HET Higher Education and Training
HIP1 High-Level Implementation Plan 1
HOD Head of Departments
HR Human Resource
HRD Human Resource Development
HSRC Human Sciences Research Council
HWSETA Health and Welfare Sector Education and Training Authority
ICT Information, Communication and Technology
IDS Infrastructure Development & Management Skills
INDLELA Institute for the Development of Learnerships and Learnership Assessment
Infra Infrastructure
INSETA Insurance Sector Education and Training Authority
IPAP Industrial Policy Action Plan
IT Information Technology
JMMS Junior and Middle Management categories
L1 National Qualifications Framework (NQF) Level 1
L2 National Qualifications Framework (NQF) Level 2
L3 National Qualifications Framework (NQF) Level 3
L4 National Qualifications Framework (NQF) Level 4
L5 National Qualifications Framework (NQF) Level 5
L6 National Qualifications Framework (NQF) Level 6
L7 National Qualifications Framework (NQF) Level 7
L8 National Qualifications Framework (NQF) Level 8
L9 National Qualifications Framework (NQF) Level 9
L10 National Qualifications Framework (NQF) Level 10
LGC Local Government Committee
LGSETA Local Government Sector Education and Training Authority
LSEN Learners with Special Educational Needs
M Master’s Degree
M&E Monitoring and Evaluation
Manuf Manufacturing
Mar March
MEC Member of Executive Council
MERSETA Manufacturing Engineering and Related Services Sector Education and Training Authority
MICT SETA Media, Information & Communication Technologies Sector Education and Training Authority
MOU Memorandum of Understanding
MPAT Management Performance Assessment Tool
MQA Mining Qualifications Authority
MSP Master Skills Plan
MSP1 First Master Skills Plan for the Gauteng City Region
MSP2 Second Master Skills Plan for the Gauteng City Region
MST Maths Science and Technology
NAMB National Artisan Moderating Body
ND National Diploma
NDP National Development Plan
NGO Non-Governmental Organisation
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NGP New Growth Path
NIP National Infrastructure Plan
NLRD National Learner Record Database
NPO Non-Profit Organisation
NQF National Qualifications Framework
NSG National School of Governance
NSA National Skills Authority
NSDS III National Skills Development Strategy III
NYDA National Youth Development Agency
Oct October
OFO Organising Framework for Occupations
OOP Office of the Premier
PCF Premier’s Coordinating Forum
PEIS Public Employment Initiatives Skills
PESD Priority Economic Skills Development
Phys Plng Physical Planning
PIVOTAL Professional, Vocational, Technical and Academic learning programmes (that result in occupational qualifications or part qualifications on the National Qualifications Framework)
Plng Planning
POS Public Ordinary Schools
PPP Public Private Partnership
Progs Programmes
PSDF Provincial Skills Development Forum
PSDS Provincial Skills Development Strategy
PSET Post School Education and Training System
PSETA Public Sector Education and Training Authority
PSP Premier’s Skills Partnership
PSS Provincial Skills Strategy
Q1 Quarter 1
QCTO Quality Council for Trades and Occupations
R Rand (South African)
R&D Research and Development
RACI Responsibilities, Accountabilities, Consultation and Informed parties
RMS Repair and Maintenance Skills
RPL Recognition of Prior Learning
SA South Africa
SALGA South African Local Government Agency
SAQA South African Qualifications Authority
SASAMS South African School Administration and Management System
SASSETA Safety and Security Sector Education and Training Authority
SBD Small Business Department
SD Skills Development
Sept September
SERVICES SETA Services Sector Education and Training Authority
SETA Sector Education and Training Authority
SIC Standard Industrial Classification (Codes)
SIP Strategic Integrated Project
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SMART Specific, Measurable, Achievable (Attributable/Accurate), Realistic (Relevant) And Time Bound M&E principles
SMME Small, Medium and Micro Enterprises
SOPA State of the Province Address
SQF Sub Quality Framework (to the NQF)
StatsSA Statistics South Africa
T&C Technology and Communication
TBA To Be Announced
TEP Tourism Enterprise Partnership
TETA Transport Sector Education and Training Authority
T/form Transform
TMR Transformation, Modernisation and Re-Industrialisation
TOR Terms Of Reference
TVET Technical & Vocational Education and Training
U&UT Universities and Universities of Technology
UNISA University of South Africa
Urb Dev Urban Development
VADC Vocational & Artisan Development Committee
W&RSETA Wholesale & Retail Sector Education and Training Authority
WSPs Workplace Skills Plans
Y1 Year 1
Y2 Year 2
Y3 Year 3
Y4 Year 4
Y5 Year 5
YDEC Youth Development & Employment Committee
Yrs Years
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Executive summary
Introduction
The development of the Second Master Skills Plan for the Gauteng City Region (MSP2) for the period
2015 to 2020 is based on a review of the successes and failures of the first Master Skills Plan for the
Gauteng City Region (MSP1) for the period 2010 to 2015. This review process included document
analysis and research; interviews, meetings with key stakeholders; and an extensive analysis of the SA
skills context and modelling of the Gauteng City Region (GCR) skills landscape and skills gap. Draft
recommendations were developed and tested with stakeholders at a two day strategic session, prior to
being finalised for approval.
Key findings
MSP1 was not successful in implementing a high-level skills strategy for the GCR. Although the
document influenced GCRA's activities, it had little influence on skills planning or implementation in the
GCR, within provincial departments and across government sectors and the private sector. Key
problems were its static (document) nature, limited consultation during and after its implementation, the
complex and inefficient skills landscape in the GCR, a lack of clear roles for its implementation and
limited capacity applied to its implementation, monitoring and review. Further limited resources were
applied to its implementation and no mechanisms for ensuring commitment to its intents were
implemented. In addition, there have been significant changes to the skills landscape during its period
of implementation.
Proposed framework for MSP2
It is proposed that MSP2’s implementation be focused on a ‘4E’
Framework:
Excellence: Quality in terms of radically improved public
service delivery and educational outcomes, that leads to:-
Employability: By ensuring workplace-ready skills (creating
skilled entrepreneurs); augmented by:-
Entrepreneurship: Focusing on creating next-generation
businesses that will create sustained employment growth; that
together drive:-
Economic growth in the GCR, thus creating sustainable
employment.
Excellence
Employability
Entrepreneurship
Economic Growth
TMR Outcome
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Six elements of MSP2
This Master Skills Plan sets out the requirements for the development and implementation of a master
skills strategy for the GCR for the next six years (2015-2020). Six elements are required to ensure
successful implementation. These elements include the following:
1. A Rationalised GCR
Institutional Skills Landscape
that prioritises skills planning as
core to provincial development
outcomes and creates
consultative structures across
all government and private
sectors.
2. A Clarified GCR Skills
Implementation Capacity
through a strong and inclusive
GCR Skills Forum (GSF
previously known as the PSDF)
as the coordinative body for skills in GCR. This requires a new GCRA that adopts the role as
the strategic skills planning and implementation agency in the GCR, coordinating skills
initiatives across the GCR.
3. Embedding a GCR Skills Development Methodology in the province through which public
sector, private sector, infrastructure skills needs and public employment skills requirements
are developed, coordinated and implemented.
4. Developing & Implementing a GCR Skills Strategy (GSS), which is annually reviewed and
reported on by the GCRA to all skills agencies in the province.
5. A Clear Monitoring & Evaluation Framework for the implementation of the GSS, which
guides the re-planning and implementation of skills needs across the province.
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6. A High-Level Implementation Plan covering the institutional elements (E1, E2, E3, and E5)
and the ongoing GSS review process.
Once implemented, these six elements will provide the framework for the
regular redevelopment of the GCR Skills Strategy (GSS). Failure to
implement these six elements will place the development and implementation
of the GSS at risk.
Skills priority pillars for MSP2
The GCR Skills Strategy (GSS) is the highest-level coordinative strategy for
skills development for the GCR. The GSS identifies and prioritises a
programme of action for the GCR in relation to four skills priorities:
Government Skills: Core skills required by Provincial & Municipal
public sector bodies to transform and modernise public service and
improve service delivery.
Private Sector Skills: Scarce skills and skills for growth and
employment drivers in GCR’s priority economic sectors.
Infrastructure Development Skills: Skills required to drive GCR
SIP and TMR infrastructure programmes.
Job Creation Skills: Coordination and focus of skills developed
through and for public employment programmes.
Defining GCR skills focus areas
Skills Demand (based on economic projections) and Supply modelling and alignment of skills objectives
in the ‘development cascade’ identifies key skills gaps in the GCR. The following six skills focus areas
must form the focus of the GCRA’s implementation of the GSS.
Focus 1: Driving Government Transformation & Modernisation, as this has the greatest
potential to positively impact growth and service delivery.
Focus 2: Driving Entrepreneur Development to support TMR TEP and GCR employment
creation targets.
Focus 3: Driving Infrastructure Development & Management Skills, in order to support
massive investments in infrastructure in the GCR.
Focus 4: Driving Creation of Priority Economic Growth Skills required to unleash economic
growth in the GCR.
Focus 5: Driving Core Education & Skills Development Excellence: The GSS focuses on
radically improving the quality of core education outcomes in the GCR through departments &
agencies mandated with key skills areas across the skills value chain.
Focus 6: Driving Artisan Development in the GCR, through fast-track implementation of
interventions envisaged by the DHET.
Priority skills programmes for the MSP2
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The following priority programmes are identified in the GSS. The top three programmes for the GCRA
to focus on are highlighted.
A. Public Sector Skills (Provincial & Local Government):
GCR 4E Government Transformation & Modernisation Skills Development (G4E-GTMS)
GCR 4E Core Education Skills Development (G4E-CES)
GCR 4E Career Development Programme (G4E-CDP)
B. Private (Economic) Sector Skills (GCR):
GCR 4E Priority Economic Skills Development (G4E-PESD)
GCR 4E Entrepreneur Development (G4E-EDP)
GCR 4E Artisan Development (G4E-AD)
C. Infrastructure Development Skills (GCR):
GCR 4E Infrastructure Development & Management Skills (G4E-IDS)
GCR 4E Repair and Maintenance Skills (G4E-RMS)
D. Employment Creation Skills (GCR):
GCR 4E Public Employment Initiatives Skills (G4E-PEIS)
GCR 4E GEYODI Skills (G4E-GEYODIS)
Conclusion
The MSP2 will require a fundamental shift in the approach to skills planning in the GCR, as well as to
the structures through which skills planning is undertaken, and how skills development programmes
are identified, developed and implemented by all skills implementing agents. Given the limited success
achieved with the MSP1, this shift in approach is deemed necessary to ensure that the GCR can
identify, develop and deploy the skills it requires to fuel its economic growth trajectory. It is only through
ensuring skills are available to support economic and social development goals that the GCR will be
able to achieve the bold targets set out in the Transformation, Modernisation and Reindustrialisation
(TMR) strategy.
MSP2 Final Report 1
1. Introduction
“Education is the most powerful weapon you can use to change the world” Nelson Mandela
1.1. Overall purpose
The Gauteng Department of Education (GDE), through the Gauteng City Region Academy (GCRA),
commissioned a study to review the success of the Master Skills Plan for the period 2010 – 2015
(MSP1) and to develop a new Master Skills Plan for the period 2015 to 2020 (MSP2) aligned with
new national and provincial strategic frameworks.
The Gauteng City Region (GCR) is unique as it represents the economic growth engine of the country
and the African subcontinent, serving as a high-density hub for trade, industry, employment and skills
production. Gauteng is also faced with a unique confluence of socio-economic realities that require
structured approaches to ensure that skills supply and demand meet each other in a goal directed way.
This document presents a proposed framework for the new Master Skills Plan (2015 to 2020) referred
to as MSP2), that incorporates learnings from the first Master Skills Plan (referred to as MSP1) to ensure
that the province has an up to date, systematic and logical process to confirm scarce and critical skills,
prioritise and re-prioritise provincial projects, review and revise processes so as to determine progress
towards meet its economic goals.
1.2. Conceptual framework: Skills development Value Chain
The Master Skills Plan 2 for the period 2015 to 2020 is built on a conceptual overview of, and analysis
of the outcomes from the skills development Value Chain in the GCR. The Skills Development Value
Chain sets out the specific components that comprise the full skills production process in the province
and furthermore identifies the key break points, gaps or inefficiencies in the Value Chain that create
blockages in the production of skills required for the economy.
Figure 1 overleaf illustrates this conceptual Skills Development Value Chain, which is comprised of the
following core educational and skills development components:
Early Childhood Development (ECD), covering children from age 0 to 5, operated by both
the public sector and by private individuals;
General Education and Training (GET), comprising the compulsory schooling period
including primary school (Grades R to Grade 7) and the first two years of secondary schooling
(Grades 8 and 9);
Further Education and Training (FET), comprising of the voluntary Secondary Schooling
stage (Grades 10 to 12), as well as Technical and Special secondary schooling and also the
Technical & Vocational Education and Training (TVET) Colleges;
Higher Education and Training (HET), comprising of Universities and Universities of
Technology (U&UT).
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Figure 1: Skills Development Value Chain
In addition to the core educational elements, the Skills Development Value Chain also outlines skills
development initiatives revolving around the workplace. These components include:
Workplace-based Training Support, including Recognition of Prior Learning (RPL) and
workplace skills development programmes; and
Sector Education and Training Authorities (SETAs), financing, developing and delivering
sector-specific skills programmes to employed- and unemployed people.
In addition to these workplace-based programmes, certain programmes also aim to develop skills
amongst unemployed, informally-employed and under-employed people. These components include:
Community Colleges, which aim to develop practical skills and basic literacy amongst work
seekers; and
Public Job Creation Programmes, aimed at providing unemployed people with an opportunity
for part-time or full-time employment, along with the opportunity to develop employable skills.
These education and skills elements together form the Skills Development Value Chain, that when
operating effectively, feed skills into the employment marketplace at various stages. These are
indicated by the purple arrows in Figure 1, and include:
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Mostly un-skilled School leavers entering the workplace for the first time, from Grade 9
onwards;
Mostly un-skilled Matriculants entering the workforce, or if they have adequate results and
the means to study further combined with meeting qualification / institutional requirements,
those that enter other elements of the Skills Development Value Chain, notably TVET Colleges,
Universities and Universities of Technology;
Semi-Skilled and Skilled people entering the workforce with formal skills obtained from the
TVET and U & UT elements, many of which enter the workplace as a part of formal workplace
training and development processes such as apprenticeships and learnerships; and
Highly Skilled people entering the workforce from advanced stages of the U & UT value chain
(people with Honours, Masters and Doctorate degrees and professional qualifications).
The effectiveness of skills produced by this Value Chain, in relation to the specific demand for skills in
specific economic sectors, results in the following outcomes:
People entering formal employment in the private or public sector, who progress in their
careers via practical experience, workplace training and development;
People choosing, or being forced to seek economic opportunities in the informal sector;
Those that cannot access formal or informal employment (for various reasons), who end up as
unemployed or discouraged work seekers (including unemployed graduates); and finally,
Those people that choose to remain economically inactive and in most cases, dependent on
the economy via the social grant system.
1.3. Study methodology
An eleven-step skills planning methodology has been applied to the development of the MSP2 Gauteng
City Region Skills Strategy (GSS) Baseline for 2015 to 2016:
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Figure 2: MSP2 – Skills Planning Methodology
The Contextual Analysis includes Step A: National Growth and Development Plans and Step B:
Provincial Growth Strategy and Planning. The implications of these are set out in Chapter 3, Section
3.3.
The assessment of the Regulatory framework, structures and approval processes include Step C:
Skills Development Regulatory Framework; Step D: Provincial Skills Development Forum and Other
Key Engagements; and Step I: Validation with Stakeholders. Engagement has been managed through
a Steering Committee for this project, but clear recommendations are made to ensure that a provincial
skills forum is developed (Element 2).
Modelling and Prioritisation of GCR skills requirements includes Step E: Provincial Skills
Development Priorities and Job Creation Enablers, which are outlined in Section 3.5. Step F includes
Skills Demand and Supply modelling and Step G: Scarce and Critical Skills that are set out in Chapter
5, Section 5.2.
Steps A to G then culminate in Step H: Strategic Skills Plan, which is outlined in Chapter Error!
eference source not found.: Master Skills Plan (Six Elements) and Chapter 5: GCR Skills Strategy 1.
Finally, Implementation, Monitoring and Review processes are developed in Step H: Monitoring
Framework and Step J: Implementation Plan. These are set out in Chapters 4 and 6.
It is relevant to note that stakeholder engagement was central to each of the 11 steps (refer to Annexure
8 for a list of stakeholders engaged).
1.4. Analytical framework
This project applied a mixed-method analytical framework. Methods used include the following:
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A Desktop information review was conducted of 77 documents related to the Gauteng Master
Skills Plan 1, the Skills Value Chain in South Africa and the GCR; Development Plans and
Strategies; Provincial Strategic and Operational Plans; Skills Policy and Legislation; Skills
Strategies, Frameworks and Plans; Skills Statistics, and Statutory Reports. Annexure 7
provides a reference list of documents consulted.
A total of 26 in-depth interviews (either face-to-face or telephonic) were held that covered
officials at the GCRA and GDE, other provincial departments (DED, DID), key SETAs
(Bankseta and Merseta), the National Department of Education (DoE) and Department of
Higher Education and Training (DHET), additional organisations identified by the GCRA as key
(Sci-Bono, National Youth Development Agency, Automotive Industrial Development
Corporation, SALGA), along with senior officials in the province (Head of Department:
Education; MEC: Education and Head of Planning in the Office of the Premier). Annexure 8
lists those stakeholders engaged through the process of developing the MSP2.
A total of 99 stakeholders were engaged through a two-day strategic stakeholder workshop
where the draft MSP was presented and components of the MSP were debated, with inputs
provided by stakeholders towards a revised MSP.
A total of 329 stakeholders were engaged through an online survey. This survey instrument
asked respondents from across the skills value chain for their views on the current status of the
skills environment in South Africa and the GCR, as well as their views on and support for the
approach proposed for the MSP2.
A total of two workshops with Deloitte skills/adult learning & development-, actuarial
analytics & forecasting subject matter experts facilitated by the MSP2 research team to
review research findings, determine the skills value chain, identify current priorities in the SA
skills development and Post School Education, proposed recommendations and Training
(PSET) environment, identify key stakeholders as well as brainstorm the format and layout of
the draft MSP2.
1.5. Skills demand, supply and skills gap modelling
A comprehensive spreadsheet model has been developed to analyse skills supply and demand in the
Gauteng City Region (GCR) and to ascertain skills gaps and predict future skills demand and supply
during the MSP2 period. The key components of the modelling approach include:
GCR Historical Economic and Skills Productivity Analysis (1995 to 2013): This is based
on analysis of the GCR’s economy over the last twenty years, including sectoral splits at a
municipal level of analysis.
GCR Economic and Skills Demand Projection (2014 to 2020): This historical data has been
used to project economic growth (Gross Value Add) over the next six years, and from this, to
ascertain based on labour productivity trends the potential demand for skills to support the
GCR’s economic growth projection.
GCR Skills Supply Analysis (2014 to 2020): An analysis of historical outputs from the Skills
Value Chain (Basic Education onwards) was used to project future skills production in the GCR.
GCR Skills Gap Analysis: Based on the above, the model correlates demand data with supply
data, in order to assess current skills gaps and surpluses at a sectoral and occupational level.
1.6. GCR Master Skills Plan 2 (2015 to 2020) and GCR Skills Strategy
Based on the above analytical processes, the eleven step methodology has been used to produce two
specific outcomes. First, a set of six elements to frame Master Skills Plan 2 are outlined (see Section
4.2). Second, a Gauteng Skills Strategy Baseline for the period 2015 to 2020 is outlined (see Section
5.
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1.7. Limitations of the study
This study was bound by limitations on time and resources for its completion.
The review of the MSP1 is not intended to be a full, formal evaluation of the programme. Rather,
it is a strategic review intended to highlight key learnings and achievements, along with a
justification and implications to inform the development of an MSP2;
Time and cost limitations placed constraints on the extent to which full engagement during the
project process was possible with key stakeholders. As a consequence, alternative methods
were used to obtain maximum inputs into the plan. These included holding a two-day strategic
workshop (through which almost 100 organisations were engaged) and an online survey used
to canvass views from a wide range of stakeholders across all skills sectors.
Project time and cost limitations also constrained the extent to which comprehensive data could
be identified, procured and included in the skills modelling process. Therefore, certain important
datasets that are available should be procured and included into further iterations of the skills
modelling process.
These limitations were also considered in the development of the final recommendations. As a result,
the process of implementing the proposals for MSP2 will substantially address the above shortcomings
over time, as a revised skills institutional framework and skills strategy methodology are implemented
and applied.
1.8. Structure of the document
This document includes the following:
Chapter 2: Learnings from MSP1
The chapter reflects on learnings and achievements of the MSP 2010 to 2015,
presents a justification for MSP2 and implications for a revised MSP based on
these learnings.
Chapter 3: Development Context
The chapter presents national development imperatives, provincial
development priorities and municipal development drivers to be considered as
part of the MSP2. Through an understanding of priorities, four priority skills
pillars are identified as the focus of the MSP2.
Chapter 4: Gauteng MSP 2015 to 2020 Framework
The chapter is introduced by illustrating the Skills Development Value Chain.
It presents the mission, objectives and principles of MSP2.
Section 4.1 provides an overview of the 4E Framework, followed by an
introduction of the six elements of the MSP2 that are critical for successful
implementation.
Section 4.2 elaborates on what is believed to be the structure of a rationalised
GCR institutional skills landscape (Element 1).
In Section 4.3 the implementation capacity required for a driving institution
(Element 2) as well as placement of GCRA as the proposed driving institution
for the MSP2.
Section4.4 illustrates the embedded GCR Skills Development Methodology
(Element 3).
Section 4.5 provides an overview of Elements 4, 5 and 6 are provided in.
Chapter 5: Gauteng City Region Skills Strategy 1 (GSS1) – Element 4
MSP2 Final Report 7
The chapter presents the first GCR Skills Strategy to be approved (section
5.1). A review of the status quo, supply and demand dynamics and skills gaps
is presented as justification for a list of priority focus areas for the province.
Chapter 6: High-level Implementation Plan – Element 6
The key actions and deliverables for the period September 2015 – March 2016
are presented, with stakeholders accountable for implementation. These
actions and deliverables are considered key to establish the basis from which
MSP2 will be implemented.
MSP2 Final Report 8
2. High-level findings: first Master Skills Plan (2010 – 2015)
A review of the first Master Skills Plan (MSP1) was completed and findings presented in this chapter
are a reflection of themes identified through a range of interviews with leadership and management at
the Gauteng City Region Academy (GCRA), as well as stakeholders in other Gauteng Provincial
Departments (refer to Annexure 8 for a list of stakeholders interviewed). The Implementation Plan
developed in 2010 and the revised Implementation Plan developed in 2012, were scrutinised, with data
collected by programme managers and verified by the GCRA to determine achievements against those
targets that were set for MSP1.
This chapter firstly presents the purpose, vision, mission and goals set for MSP1 (section 2.1). It then
considers the critical success factors identified in MSP1 and provides an indication of the extent to
which implementation of the MSP1 was responsive to those critical success factors. Findings in
response to research questions posed as part of the review of the MSP1, are considered in Section 2.2
and elaborated on as part of Annexure 1. Section 2.3 considers of the key learnings of the MSP1 and
the chapter is concluded with a reflection on the implications of these learnings for a revised MSP2.
2.1. Purpose, vision, mission and goals of MSP1
Purpose: The Master Skills Plan aimed to mobilise all key stakeholders towards responding to
the skills demands of the province. It focused on synergies required between basic,
vocational, skills and higher education to produce knowledge and employable skills
to enable the GCR vision of Gauteng.
Vision: To educate and support sustainable communities through partnership of all role
players in Gauteng.
Mission: To ensure that Gauteng develops quality skills that meet the requirements of industry
and the public sector for economic and employment growth in a coordinated way.
Goals: (i) Overview of skills gaps with a clear socio-economic picture of the skills landscape in
Gauteng;
(ii) Forecast skills requirements to 2015;
(iii) MSP to respond to skills needs; and
(iv) Unify and coordinate various initiatives for education and Skills Development
through the MSP.
2.2. Achievements of MSP1
Six critical success factors were identified in the first Master Skills Plan. Ideally the Implementation
Plan should have built these into activities to ensure successful implementation. This section reflects
on achievements of MSP1 against each critical success factor. .
MSP2 Final Report 9
The following reflects on achievements of MSP1 against each critical success factor identified in the
first Master Skills Plan:
1) Successful implementation of the MSP1 should occur within the relevant policy
framework
This was partly achieved – the introduction of new strategies as well as the change in political
leadership of the province, had implications for usefulness of the MSP1.
2) Institutional stakeholders in the Education and Skills Process
This was partly achieved – not all stakeholders listed as key in the MSP1 were consulted to
ensure synergy in driving interventions within the skills space. Implementation of the MSP1
did not mobilise all key stakeholders around their specific contribution. Although synergy was
visible between the GCRA and the Gauteng Department of Economic Development (DED)
(who were the only other Department that aligned their Skills Plan to the MSP1), there was an
absence of synergy with the Gauteng Provincial Executive and other Gauteng Provincial
Departments, National Departments (specifically the Department of Basic Education (DBE)
and the Department of Higher Education and Training (DHET) who are considered key role
players in terms of skills development), Local Government, Private Sector Institutions,
Professional Bodies, Regulators and key Associations.
Although achievements are acknowledged, the networks and partnerships built were
insufficient to meet the objectives of the MSP. It was found that each institution has their own
Skills Plan and the GCRA has limited awareness of what skills programmes are being
implemented by other Provincial Departments and stakeholders. Interviewees indicated that
more could be done to build relationships with the Sector Education and Training Authorities
(SETAs) and private sector relationships, especially where such partnerships would expose
public servants to opportunities to gain skills from the private sector (through exchange
programmes).
3) Consultation with Stakeholders
This was not achieved to the extent that the MSP1 had intended - The MSP1 indicated that
inputs from sister departments, municipalities and the private sector are vital to the success of
the document. The GCRA mobilised few stakeholders to respond to the skills demands of the
province. Interviews and analysis of achievements against the Implementation Plan indicate
that the type of consultation with relevant stakeholders was insufficient to meet the purpose,
vision, mission and goals of the MSP1. Relationships were built with the Human Resource
Development (HRD) counterparts in other Departments and GCRA mainly supported them to
develop their Workplace Skills Plans (WSPs) and their Annual Training Reports (ATRs).
Relationships were also built with some private sector organisations for placement of youth.
However, no relationships were built with municipalities mainly due to a shift in focus of new
political priorities.
The reality of ‘silo syndrome’ affects the visibility of partnerships and creates duplication. It
further perpetuates the challenge of organisations shifting their focus to non-core activities as
they strive to address skills development.
A number of stakeholders felt that the province has not intervened correctly in the scarce skills
areas identified in the MSP1. Some of the reasons include a lack of a coordinated and
synchronised set of activities of all key stakeholders (public and private) across the skills
MSP2 Final Report 10
development value chain; clarity on which stakeholders are responsible for what and clarity on
the priorities of the province as a whole.
The Implementation Plan fell short in terms of responding to the five major challenges listed in
the MSP1 in 2010 that impact scarce and critical skills development and training in the province.
These are still challenges in 2015:
• No proper system to monitor skills development and training;
• SETA information does not provide provincial breakdown, rendering it inappropriate for
provincial planning;
• Higher and Further Education institutions are not producing sufficient and appropriate
graduates to meet needs of industry and public sector agendas;
• Shortage of qualified Maths, Science and Technology (MST) teachers makes it difficult
to produce enough learners to take up careers in areas which present a high level of
scarcity of skills; and
• Certain technical and vocational careers are not accorded the prestige and recognition
they deserve, hence are often viewed as a last resort.
4) Change management
This was not achieved - the MSP1 stated that the development of skills systems into a unified
whole will require that the whole skills system goes through progressive phases of
development. However, no change management process was included as part of the
Implementation Plan. There was limited advocacy and consultation with stakeholders to ensure
ad hoc projects become synchronized to reach specific outcomes. In addition, both
Implementation Plans (2010 and 2012) did not specify outcomes beyond quantitative targets
that were set for training. The review further found that the DHET scarce skills list guided the
interventions of Institutions, rather than the MSP1.
5) Monitoring, Measurement and Evaluation
The MSP1 emphasised the importance of creating a monitoring structure and specified three
actions for the Implementation Plan. The following was established from the review of the
MSP1:
• M&E would be based on indicators in the MSP1 – in the MSP the Action Plan did
not clearly align to the Implementation Plan’s high level activities and indicators. The
Implementation Plan showed no link to operational plans of stakeholders to enable
monitoring of progress towards targets. In addition, indicators in the Implementation
Plan were insufficiently broken down in the first Implementation Plan, with no
Monitoring & Evaluation (M&E) framework included. Reporting focused on numbers
reached or numbers trained.
• An agreed schedule of reporting and M&E of activities – quarterly reporting was
submitted. Evaluation was done on some programmes but minimal evidence of impact
was shown through programmes evaluated.
• Reporting on non-governmental activities in areas of skills development that
impact on the plan, will be enhanced and this will include a clearer picture of highly
commendable activities and investments related to skills development undertaken in
the private sector (modalities to be jointly worked out with representatives of big
business within Gauteng). This was not achieved. However, it was found that Non
Government Organisations (NGOs) are active in skills development in areas that align
to the MSP1 priorities. Closer engagement with and acknowledgement of the role of
NGOs could improve partnerships with GCRA.
MSP2 Final Report 11
6) Implementation of the MSP1
The MSP1 accentuated that its success depends on the full contribution of all stakeholders in
the province. Although key skills areas for the province were identified, the review found that
implementation of the MSP1 did not sufficiently meet the overall purpose, vision, mission and
objectives set out for the MSP1. Critical success factors identified in the MSP were not
sufficiently addressed.
Key findings from the review include the following:
MSP1 spoke about putting in place mechanisms to ensure optimal and substantive
participation in the planning, stewardship and M&E of the strategy – these were not put in
place as part of implementing the MSP1.
MSP1 indicated that the GCRA should facilitate coordination through the Provincial Skills
Development Forum (PSDF) with the forum playing an active role to facilitate skills
development activities in the province to support local growth and development priorities.
The forum will play a key role in the development and support the implementation. The
PSDF was only launched late in 2014 and has few executory sub-committees considered
functional.
MSP1 stated the need for credible capacity within the GCRA to provide a single process
and set of products related to labour market analysis and the modelling of skills supply and
demand for all sectors. The review found that GCRA had insufficient capacity to drive the
Implementation requirements identified in the MSP1. As a result, achievements are limited.
The Implementation Plan provided no baseline data against which to measure
improvement and indicators were not clearly defined in the Implementation Plan.
The Implementation Plan had limited usefulness (this is elaborated on in Section 2.3
below). It is recommended that activities and indicators move beyond numbers towards
quality, which must be clearly defined in terms of outcomes that link to an M&E
Framework.
The budget for implementation of the MSP1 was not maintained in terms of priority areas
identified in the Plan.
It was difficult to determine what was delivered since the adoption of the MSP in 2010
without interviewing Programme Managers and relying on them to provide quantitative
numbers for achievements. This was because there was no central database that
measured progress against indicators set for the MSP1.
The Terms of Reference (ToR) for the review of the MSP1 identified five research questions against
which to measure achievement of its implementation. Annexure 1 provides additional insights gathered
through the review in response to each of these questions.
2.3. Key learnings of the first MSP
Seven key learnings were identified from the MSP1:
Strategic Positioning
It is acknowledged by stakeholders that the MSP1 was a step in the right direction, mainly
because it clarified the scarce skills focus areas. Interviewees shared the view that the MSP1
was not sufficiently strategic in nature. This has had the effect of not providing a guiding
framework for stakeholders to use to synchronise activities in the skills space and to guide their
organisational direction. The MSP2 must therefore strive to operate on a more strategic level,
in a way that creates a framework that coordinates and synchronises the activities of all key
MSP2 Final Report 12
stakeholders in the skills space. It must also be inclusive of national, provincial and sector
strategies.
Limited usefulness
Interviewees shared the view that the MSP1 was of limited practical use in shaping
implementation within and across organisations. They noted that the Implementation Plan was
too broad and responsibilities were not clear as to which organisation takes responsibility for
what action, which resulted in stakeholders not considering the MSP1 when developing their
own skills strategies. Although there was a revision of the Implementation Plan for FY13/14
and FY14/15, it was also not clear who would perform what activity.
The MSP1 identified 39 priority skills areas as the biggest critical skills gaps on which to focus
capacity building efforts. Targets were set for the number of people to be skilled annually over
the period so that the demand for skills could be met (shown below).
Table 1: MSP1 – Priority Skills Targets
However, the Implementation Plan did not define the beneficiaries, nor did it clarify which
stakeholders are accountable for providing skills transfer, how many they are committed to
producing or the mechanism to be used (bursaries, skills programmes, learnerships, work
placements or other mechanisms used to transfer skill). Interviewees indicated that the plan
was informed by the needs across the country, rather than by Gauteng’s specific needs. The
MSP also did not align to the South African Organising Framework for Occupations (OFO)
codes, which is necessary for targeted skills development.
Sectoral coverage
While the four pillars of the MSP1 do include state and non-state sectors, general consensus
is that the plan did not sufficiently create a framework for province-wide skills development. It
did not align the development of skills with the public sector (from national to provincial to local
level) and between the public and private sector and sub-sectors. The Cities and Municipalities
were also not coordinating skills requirements with the province or each other.
Key Forums driving the MSP1
A rationalised institutional framework was not in place that was clear on representation, roles
and functions in terms of skills development in the Gauteng City Region. There were no Forums
that measured implementation progress and kept organisations accountable. The PSDF was
only established in 2014. Although it was legislatively mandated, with a Terms of Reference,
it has had a dual launch but has created no traction and is poorly perceived. There is no clear
relationship between the PSDF and other provincial Advisory Forums and there are insufficient
Executing Forums in place to drive the MSP focus areas.
Insufficient buy-in, consultation and advocacy
The MSP1 did not pass through structures such as the Executive Committee (EXCO) and the
Premier’s Coordination Forum, hence the leadership of the province was insufficiently engaged
and were not held accountable to meeting the MSP1 objectives. There was also insufficient
MSP2 Final Report 13
consultation to ensure key inputs from stakeholders in the skills space and to obtain
commitment by stakeholder groupings at the onset of the MSP1. In addition, there was not
sufficient advocacy to create awareness of the MSP1 and its objectives.
Interviewees indicated that the MSP1 did not clarify the roles of stakeholders – key to
successful implementation is an understanding of the roles of all stakeholders towards meeting
the MSP objectives. No interviewee could indicate an institution, department or resource other
than the GCRA whose work has been fundamentally guided by the MSP1.
Political / legislative priorities
Priorities changed with new political mandates, creating a misalignment of targets set in 2010
and implementation achievements reached by 2015. The MSP1 did not include a methodology
to prioritise and re-prioritise projects to ensure alignment to revised national and provincial
priorities over the five years. Hence, the MSP1 did not remain relevant. There is a need to
align skills development to long-term strategic plans rather than political term of office.
Institutional mandate of the MSP
There was concern amongst interviewees regarding who ‘owns’ and ‘drives’ the MSP2 and
where it should be housed institutionally. The GCRA was not functioning optimally during
implementation of the MSP1. The stability of the GCRA as the Coordinating Agency was
questioned, given the turnaround in Chief Executive Officers (CEOs), changes in organisational
focus and insufficient capacity.
The placement of the GCRA as a department within the GDE may have diluted its ability to
effect province-wide skills development. There is consensus that the MSP2 should be a key
strategic driver of the proposed new strategic direction of the GCRA, through which it aims to
become the driver of skills development across the Gauteng City Region, from the Premier
down to in the public sector and across all key economic sub-sectors in the private sector.
Because skills development is transversal and touches across all sectors, almost all
stakeholders recommended that the GCRA be placed under the Office of the Premier (OOP)
and working closely with DED to ensure no duplication.
It was recommended that as a Coordinating Agency, the GCRA will need to be focused on
results and be actively engaged with stakeholders if it is to drive the objectives of the MSP2.
2.4. Justification for an MSP2 and implications of MSP1 learnings for MSP2
Based on learnings from the MSP1 and MSP2 is justified for the following reasons:
There is currently no GCR framework to guide skills development across sectors and levels.
Stakeholders are working in silos, not being aware of duplicated efforts and not being able to
maximize spend and skills development through a coordinated efforts. There is a need to
minimise duplication.
A consolidated framework is needed that will coordinate and synchronise activities related to
skills development, as well as coordinate the actions of public and private stakeholders..
The skills landscape has complex institutional arrangements. There is limited acknowledged
success of forums/bodies that demonstrate effective outcomes.
There is failure of quality skills development delivery across the skills development value chain.
There is need for clarification of stakeholder roles and functions in the skills space and to
formalise processes to create targets and accountability.
MSP2 Final Report 14
All Stakeholders engaged on the MSP are keen to strengthen coordination efforts and work
with less structures that are more focused on producing skills results.
There is currently little clarity on how skills needs translated into priority projects to ensure
successful implementation. A methodical process is needed to the MSP strategy so that it
remains relevant by aligning to long-term national and provincial strategic plans rather than
being guided by political terms of office.
The MSP2 should consider the following to ensure that it turns learnings from the MSP1 into successes
as an outcome of implementing the MSP from 2015 to 2020:
Obtain buy-in at the highest level (the Premier, Members of Executive Council (MECs) and
Heads of Departments (HODs) with an Agency that has authority to drive MSP objectives.
MSP must give direction, align to provincial skills needs and address them.
Be inclusive of all levels of public sector and all sub-sectors of private sector.
Track progress for skills development in a consolidated way across the province (obtain a
clear view of combined effort of private and public sectors towards reaching provincial needs).
Use sound, structured methodology to clarify and communicate priorities to be driven.
Ensure commitment to real engagement, consultation and co-development of specific
objectives, targets and actions – ensure these are inculcated into stakeholder plans and
operationalised at ground level. All role-players need to mobilise to address priority skills
needs.
Have structured stakeholder consultation and validation: a single place for discussion,
development and coordination of skills.
Simplify institutional arrangements for the GCR - reiterate and strengthen core functions of
institutions.
Specify targets in skills development terms (Critical & scarce skills aligned to OFO codes &
occupations and NQF/Sub Quality Framework levels).
Define a logical structured and coordinated institutional landscape for GCR skills planning,
development, implementation, monitoring and review. Clarify representation, roles and
functions of structures (forums and working groups).
Reposition PSDF as the GCR Skills Forum (GSF) to rebrand it to function as the supreme
body for engagement, development, ratification and coordination of GCR skills needs. Formally
and structurally (re)establish, implement, resource and drive it.
Extensive consultation across levels (political leadership at all levels to citizens) to ensure
buy-in and advocacy to ensure continuous commitment.
Reposition the GCRA: Currently the institution is not achieving its set mandate. Its core
mandate is not clear with role confusion between ‘strategic skills oversight’ and ‘academy’.
Explore placement of GCRA under OOP as skills strategist and custodian of the MSP
(research, develop, guide implementation, M&E).
Align the provincial budget to address key skills needs to developmental programme needs.
MSP2 Final Report 15
3. Setting the context for the MSP2 framework
The Master Skills Plan 2 (MSP2) must respond to the economic realities of South Africa generally, and
the Gauteng City Region (GCR) in particular. It must also develop a skills platform that responds directly
to the development plans for the GCR. In order to do this, the MSP2 must be founded on a clear
understanding of the role that the GCR plays in international, sub-regional and local economies, as well
as in the cascade of national, provincial and local development plans and frameworks. This section
constructs the case for the skills priorities that the MSP2 must focus on, based on these considerations.
3.1. Relationship between economic growth, development and employment
The MSP2 is premised on the clear causal relationship between economic growth and employment.
Generally, employment demand increase in response to economic growth. However, depending on
conditions in different economies and economic sectors, the relationship between employment and
economic growth may not be directly correlated due to changes in technology and productivity.
Contrary to the commonly held view, government cannot create employment except through direct
employment in the public sector. Employment is only created through the growth in economic activity.
Government’s role in employment creation is therefore limited to the extent to which it achieves the
following conditions:
First, creating the framework and conditions for economic growth, which as a
consequence of economic growth businesses will generally demand higher levels of
employment;
Second, public investments in infrastructure development that will provide a base for future
economic growth (notably, infrastructure that has a direct impact on stimulating economic
activity such as roads, ports and ITC networks); and
Third, understanding the skills value chain and supporting and guiding the development of
required skills to fuel economic growth.
The first and second conditions are beyond the sphere of influence of the MSP2 (and are covered in
the Gauteng Department of Economic Development’s (GDED) draft Economic Development Plan (2015
to 2020). Notwithstanding this, the relationship between these two conditions as critical stimulants of
employment creation and the demand for skills must be clearly understood for the formulation of the
MSP. However, the third condition is the key role of the MSP2: - to assess and set out the skills
required to support and fuel the development and economic growth trajectory of the GCR.
3.2. Economic context
Skills are a necessary condition for economic growth. However, in most cases, skills are not a
sufficient condition to fuel economic growth. Further, it is important to clearly understand the relationship
between international, national and GCR-level economic conditions if the MSP2 is to support the
economic growth plans of the GCR.
MSP2 Final Report 16
3.2.1. International economic competitiveness
The GCR is the major economic hub in South Africa and plays a pivotal role in Sub-Saharan Africa.
The Gauteng economy contributes 35% to South Africa’s Gross Domestic Product (GDP) and 7.7% to
Africa’s GDP. The economy has grown from R379 billion in 1995 to about R1 trillion in 2014 and is
projected to double to R2 trillion by 2030 (GDE, 2-15: Draft GEDP).
The GCR remains the single most important economic zone on the African continent. However, the
South African and the GCR economy is consistently losing ground to other sub-regional economies and
economic centres, most notably Nigeria and the East African Community. South Africa’s economic
growth was ranked ninth (9) out of 17 African countries in 2015 (Trade Economics, 2015), and is ranked
56th in terms of economic competitiveness out of 144 economies surveyed across the world (World
Economic Forum, 2014-2015).
While there are many interrelated reasons for the relative decline in the GCR’s economic
competitiveness and low economic growth rates, the relatively low productivity and low skills levels
of South Africa’s workforce are primary contributing factors. These must be addressed boldly and
directly by the MSP2 if the GCR is to meet its economic potential.
3.2.2. GCR economic considerations
While the establishment and development of the GCR was based on its mineral resources, its economic
fundamentals have radically changed over the last 30 years. In order for the MSP2 to develop a skills
strategy that meets the demands for skills in the GCR, a clear understanding of its economy and the
economies of its metropolitan areas is required. Figure 3 illustrates the overall composition of the
GCR’s economy, with respect to Gross Value Add (GVA) and Employment per Sector in 2014. The
figure shows the relative scale of key economic sectors in the GCR generally.
Figure 3: Gross Value Add (GVA) per Sector in the GCR (2013)
-R20 000 R30 000 R80 000 R130 000 R180 000
TH: Finance, insurance, real estate and businessservices
SC: Manufacturing
TJ: General government
TF: Wholesale and retail trade, catering andaccommodation
TG: Transport, storage and communication
SE: Construction
TI: Community, social and personal services
SD: Electricity, gas and water
PB: Mining and quarrying
PA: Agriculture, forestry and fishing
Gross Value Add (R-Million)
SIC
Eco
no
mic
Secto
rs
Ekurhuleni Johannesburg Metsweding Sedibeng Tshwane West Rand
MSP2 Final Report 17
From Figure 3 it can be ascertained that the GCR’s total GVA of R630-bn in 2013 is dominated by the
Finance, Insurance, Real Estate and Business Services (27,3% of GVA); Manufacturing (19,1% of
GVA); General Government Employment (17,5% of GVA); Wholesale and Retail Trade, Catering and
Accommodation (14,5% of GVA); as well as Transport (9,4% of GVA). Primary sectors are very small
(Mining: 1,8% of GVA, Agriculture and Forestry: 0,4% of GVA), with Community, Social and Personal
Services and Construction each comprising 4,1% of GVA and electricity, gas and water comprising
1,9%.
Figure 4 demonstrates the GCR’s GVA per municipality. The graph clearly portrays the dominance of
three areas, namely Johannesburg, Tshwane and Ekurhuleni. In relation to the predominant economic
sectors in each region, Johannesburg’s largest sector is Finance, Insurance, Real Estate and Business
Services, Tshwane is dominated by Finance, Insurance and Real Estate as well as General
Government (roughly equal in scale), and Ekurhuleni is dominated by manufacturing. While the
provincial Transformation, Modernisation and Re-Industrialisation (TMR) strategies conform to these
focus economic clusters, it is also important to note relative sizes of sectors and the need to focus on
economic sectors that have the greatest potential to create employment. For instance, while
Johannesburg’s manufacturing sector is a relatively small component of its economic composition, this
sector is roughly similar in output to manufacturing in Ekurhuleni.
Figure 4: Gross Value Add (GVA) Per Municipality in the GCR (2013)
R0
R50 000
R100 000
R150 000
R200 000
R250 000
Gro
ss V
alu
e A
dd (
R-M
illio
ns)
PA: Agriculture, forestry andfishing
PB: Mining and quarrying
SD: Electricity, gas and water
TI: Community, social andpersonal services
SE: Construction
TG: Transport, storage andcommunication
TF: Wholesale and retail trade,catering and accommodation
TJ: General government
SC: Manufacturing
TH: Finance, insurance, realestate and business services
MSP2 Final Report 18
Figure 5 exemplifies the relative growth of employment across key economic sectors in the GCR
between 1995 and 2013 based on real economic data. This figure shows the dominance of four
economic sectors, namely Wholesale and Retail; Community, Social and Personal Services; Finance,
Insurance and Real Estate and General Government. However, also striking is the very slow growth of
manufacturing over this 25 year period, in comparison to other sectors. Further, the extremely small
contributions of primary sector activity are notable (Agriculture, Forestry & Fishing and Mining &
Quarrying).
Figure 6 illustrates the projected growth in employment across these sectors between 2015 and 2020.
This clearly shows that the bulk of new employment is projected to originate from the following sectors
(in order of magnitude): Wholesale & Retail; Finance, Insurance & Real Estate; General Government;
Construction; and Transport, Storage and Communications.
3.2.3. GCR Full Time versus Part Time Employment
It must be noted that these employment projections are based on assumptions made regarding the
functioning of each economic sub-sector, given its historical growth trajectory and assumptions made
regarding its likely future growth, labour productivity and likely changes in employment and skills
intensity.
These scenarios therefore do not include jobs created through direct government-sponsored job
creation programmes, such as those envisaged through Tshepo 500,000, and like the Expanded Public
Works Programme and Community Works Programme in the past. These are mostly part-time
employment positions comprising a set number of work-days per week, and mostly do not lead to any
sustained, full-time employment. Therefore, these part-time, public sector-sponsored job opportunities
should be separately considered.
MSP2 Final Report 19
Figure 5: Relative Size and Growth of Economic Sectors in the GCR (1995 to 2020)
MSP2 Final Report 20
Figure 6: Projected Size and Growth of Economic Sectors in the GCR (2014 to 2020)
MSP2 Final Report 21
Figure 7 shows the skills mix of the GCR economy between 1995 and 2013 and projected forward to
2020. It is notable that formally employed semi- and unskilled job numbers have stayed roughly static
over the last 20 years, while skilled, highly skilled and informal jobs have risen substantially, along with
a consistent rise in highly skilled employment.
Figure 7: Changes in Skills Profile of the GCR Workforce (2014 to 2020)
It is also important to note the diverse skills profiles between different economic sectors. Figure 7
illustrates the skills profiles for four sectors in the GCR, as well as how these have changed since 1995
and how they are projected to change between 2015 and 2020. Notable features include the high level
of informal employment in Wholesale & Retail (grey area), the increasing skills profile over time for
manufacturing and the highly skilled nature of employment in the Government sector (as shown in
Figure 8).
MSP2 Final Report 22
Figure 8: Projected Growth & Skills Profile of Three GCR Economic Sectors (2014 to 2020)
MSP2 Final Report 23
Based on the above analysis, critical features of the GCR economy from a skills perspective are outlined
below.
Key Economic Sectors: Gauteng’s total GVA of R630-bn in 2013 is dominated by the Finance,
Insurance, Real Estate and Business Services; and Manufacturing; General Government;
Wholesale & Retail Trade, Catering, as well as the Transport sectors. Primary sectors are small
(Mining, Agriculture and Forestry), with Community, Social and Personal Services and
Construction each comprising a small portion of GVA.
Historical Sectoral Growth: Past growth patterns create a platform for assessing potential
future sectoral growth in the GCR. Sectors that have grown strongly in the past and are
projected to continue to grow into the foreseeable future are the Wholesale & Retail Trade,
Catering and Accommodation; Community, Social and Personal Services; General
Government Employment; Construction; Finance, Insurance and Real Estate and Business
Services.
Prioritised Economic Sectors: The GCR Economic Development Plan (GDE, 2015)
prioritises eleven economic sectors for specific targeted intervention over the next five years.
These are Food and Beverages, Furniture and Timber; Clothing, Footwear, Textile and Leather;
Pharmaceuticals, Plastics and Chemicals; Machinery and Equipment; Construction, Building
Material and Real Estate; Automotive and Components; Mining and Mineral Beneficiation;
Finance and Retail; ICT; and Tourism and Creative Industry (crafts, music and film). The MSP2
must take cognisance of these in its skills strategy planning. This will assist to drive the
economic development goals of the province, namely a modern, diverse, inclusive and more
equal economy that drives employment creation.
Significant City Differences: The economies of each municipal area in the GCR differ vastly
in scale, as well as in sectoral composition, historical growth trajectory and productivity levels.
Therefore, nuanced skills development strategies are required that support the economic
advantages in each municipality.
Variable Skills Composition: Different economic sectors have highly variable skills profiles,
implying that growth in these sectors will result in different demand for skills of different types.
Increasing Skills Intensiveness: The GCR’s economy is becoming progressively less labour
intensive and more skills intensive, which is contrary to the ever-increasing supply of relatively
poorly skilled people entering the employment market. Between 1995 and 2014, the number
of unskilled and semi-skilled jobs remained generally static. This is a critical failing of South
Africa’s education system generally, that is exacerbated given the relatively higher skills base
of the GCR’s economy.
Skills Polarisation: The consequence of greater skills intensity and the increasing pool of low-
skilled labour is creating a polarisation of the workforce between skilled and highly skilled
employees and ever increasing numbers of informally employed people.
Unemployment and Under-Employment: The inevitable outcome of a mismatch between a
low demand for skills and the available supply, results in an increased rate of unemployment.
The GCR has a high rate of unemployment and has witnessed a significant increase in
unemployment between 2008 and 2015 (StatsSA, 2015). Making inroads into this increasing
unemployment remains a key challenge facing the GCR 21 years after democracy.
3.3. The ‘Development Cascade’
The MSP2 must be grounded in the cascade of development frameworks and plans at a national,
provincial (GCR) and city level. The figure below illustrates this ‘Development Cascade’ of plans in
South Africa and how they guide and influence the levels of plan below them, while simultaneously
creating the context for understanding skills priorities at each level.
MSP2 Final Report 24
Figure 8: GCR Skills ‘Development Cascade’
The sections below elaborate on the strategies, plans and priorities at a National, Provincial and
Municipal level.
3.3.1. National Development Plan (NDP)
The National Development Plan (NDP) sets out a broad economic and developmental plan for South
Africa up to 2030, based on a comprehensive review of the status quo.
The NDP calls for a paradigm shift in South Africa’s economic development. Specifically, this requires
the nation to clearly establish the conditions for growth, to identify the opportunities on which growth
can be built, as well as the development of capabilities to convert these opportunities into economic
growth and employment. This, in turn, will drive poverty reduction and raise living standards.
Critical to this is effective government, strong leadership and active citizenry. The MSP’s core function
must be to drive the development of capabilities, and that such capabilities should be focused on
building effective government, strong leadership and ensuring active engagement of all partners
in skills development in the GCR.
A further priority set by the NDP is the need to develop the necessary skills to employ 11-million people
by 2030. This implies that the MSP2 must focus on developing employable skills in areas of real
economic potential. In addition, the acknowledgement that 70% of new jobs are projected to arise
from the Small Medium and Micro Enterprise (SMME) sector, implies that the onus is on the MSP2 to
drive the development and growth of the SMME sector.
The NDP also identifies the need, as far as possible, to identify the best kind of employment to absorb
work seekers. It is worthwhile considering the following:
Highly skilled employment is noted to be good for economic growth, but not for employment
creation;
MSP2 Final Report 25
Public schemes are good for creating short-term job opportunities, but not for long-term growth;
Labour-intensive employment is good for growth, and good for employment where it can
compete with mechanised workplaces; and
Government employment is considered bad for both jobs and economic growth, given that
government employment is funded via taxation revenues and does not directly result from
increased economic activity as is the case in the private sector.
Figure 8: NDP Strategic Thrusts
In order to achieve its overall goal of prosperity and
equity for all, nine strategic thrusts are identified in
the NDP: Create Jobs; Expand Infrastructure; Use
Resources Properly; Inclusive Planning; Quality
Education; Quality Healthcare; Build a Capable State;
Fight Corruption and Unite the Nation. While all nine
thrusts have relevance for the MSP2 GCR Skills
Strategy (GSS), the following core and secondary
focus areas are identified that can be directly
influenced by the MSP2:
Core NDP Focus Areas for the MSP2:
o Build a Capable State: Radically
transforming the operation and
effectiveness of the public service at
Provincial and Municipal level.
o Quality Education: Driving radically
improved quality outcomes from all steps
in the GCR’s Skills Development Value
Chain.
Secondary NDP Focus Areas for the MSP2:
o Inclusive Planning: Ensuring that skills planning is linked to economic and development
planning and that all key stakeholders are included in skills planning;
o Expand Infrastructure: Driving the conversion of large infrastructure budgets into
implemented infrastructure frameworks to support economic growth.
3.3.2. Industrial Policy Action Plan (IPAP)
The Department of Trade and Industry’s (the DTI) Industrial Policy Action Plan (IPAP 2014 to 2016)
outlines an action plan to drive domestic demand fulfilment, to create competitive exports, in order to
drive growth and employment. Its objectives are to diversify the economy beyond traditional
commodities and non-tradable services, to intensify industrialisation, to promote a more labour-
absorbing industrial path, greater Broad-Based Black Economic Empowerment (B-BBEE) participation
in industry, and contributing to industrial development in Africa.
These will be achieved using a range of levers, including overall economic policy, improved
procurement arrangements improved industrial financing, better developmental trade policy, attention
to competition policy, improved regulation of intellectual property, and innovation and technology.
MSP2 Final Report 26
3.3.3. Strategic Infrastructure Projects (SIPs)
Linked to the massive infrastructure investment identified in the NDP, the Strategic Infrastructure
Projects (SIPs) set out nineteen large-scale infrastructure investment projects across South Africa that
are intended to drive employment and create a platform for future economic growth. Of the nineteen
SIPs identified, eleven have a direct footprint in the GCR:
SIP2: Durban-Free State - Gauteng logistics and industrial Corridor
SIP6: Integrated municipal infrastructure project
SIP7: Integrated urban space and public transport programme
SIP9: Green energy in support of the South African economy
SIP9: Electricity Generation in support of socio-economic development
SIP10: Electricity Transmission and distribution for all
SIP11: Agri-logistics and rural infrastructure
SIP12: Revitalisation of public hospitals and other health facilities
SIP14: Higher education infrastructure
SIP15: Expanding access to communication technology
SIP16: Bulk water supply and distribution
Skills for implementing these projects will be significant, and the Department of Higher Education and
Training (DHET) has developed a detailed skills projection approach, based on a 21-step process to
enable the planning process for SIP skills requirements. The process of defining a methodology for
skills development for the MSP2 has taken note of the extensive knowledge developed during this
process and has used this to develop a proposed Embedded Skills Development Methodology for the
MSP2.
Alignment between these two methodologies will be critical, given the importance of the GCR economy
to overall SIP implementation.
3.3.4. GCR Transformation, Modernisation and Reindustrialisation (TMR) Strategy
The development vision for the GCR is encapsulated in the Transformation, Modernisation and Re-
Industrialisation (TMR) strategy launched by the new Premier in 2014. The vision of the TMR is “An
integrated City-Region, characterised by social cohesion and economic inclusion, the leading economy
on the continent, underpinned by sustainable socio-economic development.”
MSP2 Final Report 27
Figure 9: GCR Transformation, Modernisation and
Reindustrialisation (TMR) Strategy
The TMR sets out ten Pillars
(four Transformations, four
Modernisations and two Re-
Industrialisations) that will drive
the future growth trajectory of the
GCR (State of the Province
Address, 2014). The Ten Pillars
have been allocated to specific
Government Clusters to oversee
their implementation. Pillars
entrusted to the Economic
Cluster are highlighted in blue,
the Social Cluster in green, and
the Governance Cluster in red.
To operationalise the Ten Pillars, specific Development Corridors have been identified across the
GCR. The aim of Development Corridors is to Reconfigure Gauteng’s Space Economy; Ensure a
balanced approach towards growth and development across the five corridors; Derive greatest benefit
from local comparative advantages; Allow for more focused interventions that will be specific to the
needs of a particular corridor; and Reduce destructive competition, add-value as well as advance
competitive advantages (Office of the Premier, 2015).
The five Development Corridors each addressing a major City / Municipal Region in the TMR, are
outlined as follows:
The Central Corridor (City of Johannesburg): Focuses on Banking, Finance, Information
Technology and Biotechnology.
The Northern Corridor (City of Tshwane): Focuses on Tshwane’s role as administrative and
diplomatic capital of South Africa, and drives development of the Manufacturing sector,
specifically through motor manufacturing.
The Eastern Corridor (Ekurhuleni): Focuses on a resurgence in manufacturing activity through
re-industrialisation.
The Western Corridor (West Rand): Focuses on the benefits accruing from the tourism sector,
based around Lanseria Airport.
The Southern Corridor (Sedibeng): Focuses on the competitive advantages brought about by
the water and water-based tourism economy.
In addition to the Development Corridors, the TMR identifies a range of catalytic ‘Game Changer’
Projects. Numerous Game Changer projects are identified and more are in the pipeline. These include,
for instance, the development of the OR Tambo ‘Aerotropolis’, the development of other ‘dry ports’ and
freight modal interchanges, large-scale urban development projects (such as Steyn city and the
Lanseria new city), extensions to the Gautrain network, and water- and tourism-based developments
in the Sedibeng area. Such projects are intended to create real activity to support the focus areas in
each Development Corridor. Game Changers should enable the following:
Promote development throughout the GCR;
MSP2 Final Report 28
Be catalytic with a ripple effect and have potential to take the GCR to a higher level or trajectory
of growth and development;
Have a major infrastructure component in the project content;
Support radical spatial, social and economic transformation across the GCR;
Be based on multi-year inter-governmental and inter-departmental collaboration and
cooperation and in partnership with the private sector;
Promote and support economic development and job creation, leading to improved service
delivery, the entrenching of good governance, deepening of democracy and strengthening of
partnerships; and
Encourage innovative approaches to funding, including crowding in private sector investment.
Unlike the NDP, the skills requirements to support the TMR are not explicitly stated. Therefore the
onus is on the MSP2 to align its skills requirements Pillars, at a Provincial level, to the five
Corridors and the Game Changers by means of an explicit skills strategy to support the TMR’s
vision.
3.3.5. GCR Economic Development Plan (GEDP)
There are a range of other key development plans that have been developed in order to move the GCR
towards a better economic trajectory.
The DED has been developing the GCR Economic Development Plan (GEDP) in parallel with the
development of the MSP. This plan is premised on developing a GCR economy reflective of successful
City-Regions, namely: Strong visionary leadership; Strong institutions and strong economic
juggernauts; Connectivity / mobility; A spatial coalition of partners working together for a common vision;
Advanced skills and human capital; A knowledge intensive economy; and a High labour absorption rate
and robust economic growth.
The GEDP projects a 4% growth rate (against the NDP’s 5,4% target) for the GCR between 2015 and
2020, based on achieving employment targets through the GCR’s Corridor Development programme
and sector and industry-specific interventions, supported by other growth plans. These interventions
are deemed sufficient to create a fiscal shock of R70-billion per annum, which in turn will induce
employment of nearly 2,0-million jobs (and moderate unemployment to 20,6%), slow down poverty
creep and slow down the worsening of the Gini coefficient.
It is noted that the baseline modelling used for the EDP and the MSP have different methodologies and
departure points. The MSP modelling derives skills demand from projected economic output in
Gauteng’s key economic sectors, based on the imputed and assumed changes in productivity of
employment in each sub-sector. In contrast the EDP develops its economic projections premised on
labour share as the driver of growth through aggregate demand. Given these two different approaches,
a level of difference in results achieved is inevitable. A further difference is that the MSP modelling
derived projections at an economic sector level in each municipality and aggregated this, whereas the
EDP modelled sectoral outcomes at the provincial level. Notwithstanding the above, there is a level of
comparability between the economic growth projections from both models. Both project an economic
growth target reaching around 4% by 2020 (EDP: 2020 Target of 4%; MSP: 2020 Target of 3.7%,
average growth 2,9%.
Various engagements have been held between the DED and the GCRA / GDE to ensure the two
strategies align as far as possible. In addition to this, the two models have key points of similarity:
MSP2 Final Report 29
Both modelling outcomes consider the negative impact that current exogenous conditions play
on dampening economic growth potential in the GCR.
Both acknowledge the importance of understanding the growth of existing and new businesses
as a critical condition for employment creation and therefore labour absorption.
Both models consider the importance of infrastructure investments as a catalyst to economic
growth, both via expenditure on the infrastructure, as well as due to the eventual economic use
of such infrastructure.
Both economic growth forecasts are also premised on the GCR achieving certain key ‘Goldilocks
conditions’ during the next six years in order to meet their growth projections. That is, they are
premised on these conditions being fully achieved, in the short term. These include:
The radical transformation of the public sector, in order that it plays a much better facilitative
role in economic development
Large and sustained programmes of public sector investment in economic and social
infrastructure, both in new infrastructure creation and the maintenance, rehabilitation and
replacement of existing infrastructure.
A ramp-up in Public-Private Partnerships that rapidly secure joint investments in large-scale
infrastructure projects, and sustain this investment to 2020 and beyond.
Significantly changed conditions that facilitate and stimulate the growth of existing and new
SMMEs that (as per the NDP) are projected to create 70% of new employment.
There are however differences in the projected employment by 2020 emanating from both
models. While the MSP model projects an increase of 1,09-million additional employment
opportunities between 2015 and 2020, the EDP starts with an assumed figure of 2.0-million. The
following reasons explain this disparity:
The (albeit relatively small) differences in economic growth projections influences ultimate
employment projections reached in the MSP, versus the employment targets in the EDP.
The EDP includes the projected 500 000 additional public employment "job opportunities” to be
created by the Tshepo 500 000 programme. These figures, currently, are not included in the
MSP’s core calculations, and have been included as a separate projected figure. This inflates
EDP assumed employment figures by up to 500 000, depending on the ultimate success of the
Tshepo 500,000 programme.
The MSP calculation is based on Full Time Employment (FTE), whereas the EDP includes “job
opportunities” for a portion of the projected employment, which would account for up to 250
000 additional jobs.
While both employment growth projections include assumptions relating to employee productivity, the
MSP’s finer-grain projections based at a municipal, sectoral level does influence employment
outcomes, especially in sectors projected to be more skills-intensive (and less labour-intensive) into the
future.
MSP2 Final Report 30
3.3.6. Other GCR Economic and Development Plans and Strategies
The following sub-plans contribute to the economic vision outlined in the GEDP. The Gauteng
Township Revitalisation Strategy, which aims to ensure that township economies contribute at least
30% to the GCR’s economy. This will be achieved by ensuring appropriate regulatory and legal
frameworks; promoting manufacturing and productive activities; economic infrastructure support;
promoting entrepreneurship; financing and investing in township economies; Promoting access to
markets; promoting innovation and indigenous knowledge systems; and establishing the social and
economic value of the township economies.
The Gauteng Informal Business Upliftment Strategy aims to integrate informal businesses into all
sectors of the economy. This will be achieved via financial and non-financial support; economic
infrastructure facilities; law enforcement and proper monitoring; and supporting informal township trade.
The Economic and Industrial Plans for West Rand and Sedibeng aim to overcome the spatial and
economic disparities of these lagging areas in relation to the GCR. This will take the form of focused
investment in sectors offering comparative and competitive advantages in these regions. This will also
be driven by corridor development programmes in these areas.
The Gauteng Trade and Investment Strategy aims to enhance Gauteng’s status as an investment
destination, and to grow trade with other regions in line with bilateral and other trade agreements. Four
programmes will drive this: A comprehensive export development strategy; an investment support
programme; an Africa Focus programme, and an Investment Aftercare Programme.
From an infrastructure perspective, two key strategies are relevant. Firstly, the GCR Integrated
Infrastructure Masterplan (GIIMP), and secondly the GCR 25-year Transport Master Plan (GTMP).
These plans define the status quo in relation to transport, network infrastructure and social
infrastructure, and set the spatial vision for the GCR in relation to where and how massive infrastructure
expenditure will occur.
3.4. Municipal development drivers
Each City and Municipality in the GCR has its own growth and development plans and frameworks1.
Common elements of these municipal spatial and economic development frameworks that are relevant
from a skills perspective are outlined below:
Improved Governance: This theme supports the NDP’s ‘Build a Capable State’ strategy;
Regionally-Specific Economic Growth Sectors: economic growth is based on facilitating the
growth of specific, value-adding economic sectors in that region;
Township Regeneration: Programmes aimed at stimulating township economies;
Spatial Restructuring: Concerted efforts to overcome inherited Apartheid spatial form;
Infrastructure Development: Implementation of massive infrastructure projects, with a new
focus on maintenance and management of existing infrastructure networks; and
1 It is beyond the ambit of this document to outline these in detail.
MSP2 Final Report 31
Employment Creation: Implementing mass, government-driven employment schemes such
as the Extended Public Works Programme (EPWP), Community Works Programme (CWP) and
the Tshepo 500 000 programme (specifically aimed at youth, women and people with
disabilities).
3.5. Identifying skills priority areas in the GCR
In order to align the MSP2 with the ‘Development Cascade,’ it is necessary to interpret the skills
priorities required to support the GCR’s TMR strategy, whilst simultaneously considering the NDP’s
requirements, as well as the specific plans of each City in the GCR.
Figure 10 provides a Skills Matrix that analyses the relationship, from a skills development perspective,
between the nine NDP focus areas and the TMR’s Ten Pillars. Key skills requirements at each
intersection are then highlighted. The table shows that the four key focus areas from the NDP are
broadly applicable across the Ten Pillars, but that it is not possible for the MSP2 to identify or resolve
all skills needs in the GCR. A targeted approach is therefore required.
3.6. Implications of the contextual reality for the MSP2
A number of key opportunities and challenges are identified that must be dealt with in the MSP2. Key
challenges to be addressed by the MSP2 include:
Overcoming the serious structural problems in the GCR’s skills environment, most notably low
productivity and low skills levels, the MSP2 must intervene boldly and decisively;
Developing skills that meet the progressively less labour-intensive and more skills-intensive nature
of the GCR economy;
The MSP2 must identify and prepare for the development of ‘new economy’ skills that are required
to produce a step-change in the GCR economy;
The MSP2 must create the environment for economic growth in the GCR, through a radical
transformation of the role of, and productivity in the public sector; and
In order to ensure South Africa’s skills value chain produces skills that will fuel the growth of the
GCR economy, there must be a clear focus on improving the quality of educational and skills
outcomes. In addition, there must be a focus on producing skills that are in demand in the economy
and to develop higher levels of entrepreneurial activity in the economy.
MSP2 Final Report 32
Figure 10: Interpreting Skills Requirements from the NDP and TMR Strategies P
rovin
cia
l
N
atio
nal
National Development Plan
Strategic Infrastructure Projects
Tra
ns
form
ati
on
, M
od
ern
isa
tio
n&
Re
ind
us
tria
lis
ati
on
1. 2. 3. 4. 5. 6 7. 8. 9.
CreateJobs &
Liveli-
hoods
Expand Infra-
structure
Transition to Low-
Carbon
Economy
Inclusive Planning
Quality Education
&
Training
Quality Healthcare
Build a Capable
State
Fight Corruption
Unite The Region
Decent employment
through inclusive
growth
Efficient, competitive,
responsive economic infrastruct
Creategreen
industry & resource
efficiency
Transform urban and
rural spaces
Skilled &capable
workforce to support growth
Long and healthy life
for all
An effective and capable
government
Fight corruption &
enhance account-
ability
Transform society and
unite the nation
SIP11 SIP2; 6; 9; 10; 15; 16
SIP9 SIP7; 11 SIP14 SIP12 SIP16
TR
AN
SF
OR
MA
TIO
NS
1. Radical Economic Transformation
Jobs & SMMEs
EconomicInfrastruct
Resource Use
Eco Skills Plng
Entrep-reneurs
- Capable State
Fight Corruption
Unite the Region
3. Accelerated Social Transformation
Jobs & SMMEs
Water & Sanitation
- Social Dev Skills
Excellent Education
Quality Healthcare
CapableState
FightCorruption
-
2. Decisive Spatial Transformation
- HumanSettlement
Resource Use
Physical Plng Skill
SpecialistEducation
- Capable State
- -
4. Transformation ofState & Governance
- ICT Resource Use
X-level & X-sector
PublicService
Quality Healthcare
CapableState
FightCorruption
Unite the Region
MO
DE
RN
ISA
TIO
NS
5. Modernization of Public Service
- Expand Infrastruct
Resource Use
e-govtrollout
New Econ Skills
Quality Healthcare
Capable State
Fight Corruption
-
7. Modernize Human Settmts & Urb Dev’t
Job Creation
Expand Infrastruct
Low-Carbon
Settlemnt
InclusivePlanning
SpecialistEducation
- Capable State
- -
6. Modernization of the Economy
Jobs & SMMEs
Expand Infrastruct
Resource Use
Eco TrsfmPlanning
Re-Skill &Transform
- Capable State
Fight Corruption
-
8. Modernize Public Transport Infrastruct
Job Creation
Expand Infrastruct
Resource Use
Tpt & Phys Plng
SpecialistEducation
- Capable State
- -
RE
IND
US
TR
IA
LIS
AT
ION
S 9. Reindustrialize Gauteng Province
Jobs & SMMEs
Expand Infrastruct
- Inclusive Planning
Skilled & High Skill
- Capable State
- -
10. Lead Africa’s New Indus Rev.
Jobs & SMMEs
Expand Infrastruct
- Regional Eco/ Infra
Strategic Planning
- - - Unite The Region
KEY: Economic Cluster = BlueSocial Cluster = Green
Governance Cluster = Red
KEY: Primary MSP2 FocusSecondary MSP2 Focus
MSP2 Final Report 33
In relation to the development of the MSP2, the following must be considered:
Developing skills requires a long-term perspective, and therefore must be informed by long-term
economic planning;
South Africa, the GCR and each Metro’s economic circumstances must be understood as a
prerequisite for defining skills requirements;
There are a clear set of development objectives at a national, provincial and municipal level that
the GCR Skills Strategy must interpret and incorporate in order to support and achieve those
strategic objectives as part of its implementation;
National, provincial and local development as well as economic growth frameworks, cannot be
successful without the required skills to implement them;
A skills strategy for the GCR cannot expect to achieve all skills needs, and must therefore prioritise
areas of intervention that will achieve maximum impact at a GCR level;
Skills planning must be undertaken with the full participation of public and private sectors if it is to
fully articulate the needs and ensure it sets the correct priorities.
3.7. Four Pillars of skills priority for the MSP2
The MSP2 identifies four Skills Priority Pillars that will structure and focus its relationship to the skills
needs of the National Development Plan (NDP), Transformation, Modernisation and Re-
Industrialisation (TMR) and City strategies. These are:
Figure 11: MSP2 – Skills Priorities
for the Gauteng Skills Strategy
Skills for a Radically Transformed Public Sector: All development
frameworks agree that the public sector requires a radical shift in the form
and content of service delivery, in order to drive a true developmental state
that supports and encourages economic growth. This pillar of the MSP is
identified as having the most significant potential to bring about a radically
transformed GCR.
Skills for Growing the Economy: Skills required to drive regional and
provincial economic growth (and specifically the lack of scarce skills
currently limiting economic competitiveness) and competitive advantages
must be created, as well as the development of and support for increased
entrepreneurial activity.
Skills for Infrastructure Implementation and Maintenance: Massive
infrastructure investments are central to economic strategy and must be
supported by ensuring skills are available within government and the private
sector to convert money to implemented projects. Furthermore, the urgent
need to better manage and maintain existing infrastructure must also
become a provincial skills priority.
Skills through Learning and Work Opportunities: The many and varied
government-supported employment creation and skills transfer
programmes and projects must be refocused towards the real needs of the
GCR. These programmes and projects must ensure that employable skills
are developed by beneficiaries.
MSP2 Final Report 34
Through focusing on these four priority Skills Pillars, the MSP2 will have maximum impact on other
development objectives as well, such as employment creation and accelerated social transformation
(with a focus on education, healthcare, poverty and social development challenges and community
safety).
MSP2 Final Report 35
4. Second Master Skills Plan (2015 to 2020)
The Second Master Skills Plan (MSP2) builds on the First Master Skills Plan (MSP1). However, the
analysis of the first Master Skills Plan (MSP1) and the current South African skills environment identifies
key issues that must be resolved if the new Master Skills Plan is to be successfully implemented.
Hence, the MSP2 is developed on the premise that a document on its own will not succeed, however
good it is. How the MSP is embedded in the Gauteng City Region’s (GCR’s) institutional framework
and high-level planning processes is critical. In addition, it is necessary to streamline and improve
functioning of skills bodies for GCR that currently do not create a solid platform for researching,
discussing and developing skills strategy. Consequently, MSP2 is based on five pillars, only one of
which directly develops the future skills strategy for the GCR.
This chapter presents the mission, objectives and principles of the new Master Skills Plan 2015 to 2020.
It then sets out the six elements that provide structure to the MSP2, and explores these in more detail.
4.1. Mission, objectives and principles of MSP2
4.1.1. Mission of MSP2
The MSP2 responds to the Transformation, Modernisation and Re-industrialisation (TMR)
mandate of propelling Gauteng to a higher growth trajectory through developing the framework for
identifying and developing the skills required for the GCR to fuel its development and economic
growth trajectory.
The mission of the MSP is therefore to be the coordinating instrument whose value is
driven by mobilising key public and private stakeholders who contribute towards skills
development and economic growth and development of the province.
The MSP reflects stakeholders’ collaborative agreements on priorities and programmes that
respond to the skills demands of the GCR, across the skills development value chain. Based on this,
stakeholders take accountability for specified targets and agreements on how often and in what
format regular updates are provided. Updates feed into a Gauteng skills development dashboard
(a centralised monitoring platform) which tracks stakeholders achievements against skills outcomes
achieved in order to support economic growth and development targets set for the GCR between 2015
and 2020.
4.1.2. Objectives of MSP2
The MSP2 aims to achieve the following seven objectives:
1) A Universal Gauteng City Region Skills Strategy: A GCR Skills Strategy is collaboratively
developed and agreed whereby the MSP2 identifies and responds to the skills needs of
the NDP and TMR and prioritises the focus areas that will propel the GCR to a higher economic
growth trajectory, in relation to the ‘development cascade’, across the skills value chain.
MSP2 Final Report 36
2) Coordination across the Skills Value Chain: The MSP2 is the coordinating instrument
that mobilises key public and private stakeholders that contribute towards skills development
and economic growth and development of the province. The platform to ensure mobilisation of
stakeholders is the combination of a rationalised GCR Institutional Skills Landscape which
clarifies advisory and executing forums and their functions, along with a high-level
implementation plan.
3) Role Clarity and Accountability: National, provincial and local stakeholders clarify their
roles in skills development in the GCR, and take accountability for specified targets that
support overall GCR skills requirements. Each stakeholder is responsible for developing an
operational plan that aligns to the high-level implementation plan.
4) Record of Agreements and Partnerships: The MSP2 reflects stakeholders’ collaborative
agreements on priorities and programmes that respond to the skills demands of the province
across the skills development value chain.
5) Regular Skills Strategy Updates: Stakeholders agree on how often and in what format
regular updates are provided.
6) Data and Information Hub: Skills achievements are collated in a GCR skills development
dashboard (a centralised platform), and are analysed and synthesised in a format that
dynamically monitors skills achievements.
7) Monitoring & Evaluation: Achievements are recorded and regularly communicated
against skills development and economic growth and development targets set for the GCR from
2015 – 2020. Monitoring and evaluation is built into the regular revision of the skills strategy for
the GCR.
Each objective is translated into specific targets and indicators as part of each annual high-level
implementation plan to ensure their continual focus across stakeholders.
4.1.3. Principles of MSP2
Figure 12: MSP2 – ‘4E’
Principles Framework
Three key principles govern MSP2:
1) The MSP2 is not a document – it is a process whereby
stakeholders identify and execute skills programmes based on a
systematic, logical agreed-upon GCR methodology. Annual
review, revision, rationalisation and reprioritisation ensures that
the MSP remains current and relevant in the light of rapidly
changing needs.
2) The MSP2’s success is measured by the ‘4E’ Framework, which
refers to outcomes of measurement that are aligned to:
Excellence: Quality in terms of radically transformed public
service delivery and educational outcomes, that leads to…
Employability: By ensuring workplace-ready skills (creating
skilled entrepreneurs); augmented by…
Entrepreneurship: Focusing on creating next-generation
businesses that will create sustained employment growth; that
together drive…
Economic growth in the GCR.
Excellence
Employability
Entrepreneurship
Economic Growth
TMR Outcome
MSP2 Final Report 37
3) The MSP2 takes its lead from national and provincial strategies, as well as advisory and
forums and executive (implementation) structures. The MSP has implementation ability
at a cross-sectoral, strategic level through relevant eexecuting committees where public and
private sector stakeholders actively identify and resolve blockages, and drive programmes that
ensure development of occupations and sectors that fuel economic growth.
4.1.4. GCR priority skills pillars
Based on the ‘4E’ Framework, the assessment of the ‘Development Cascade’ and the supply and
demand modelling for the MSP2, four Priority Skills Pillars are identified that must structure the outcome
of the MSP2. These are:
Pillar 1: Skills for a radically transformed Public Sector. Radical transformation of the
operation and improved effectiveness of the Public Sector has the greatest potential to radically
transform overall economic activity in the GCR.
Pillar 2: Skills for Growing the GCR Economy. Based on the principles of employability and
entrepreneurship driving the GCR economy in the future, MSP2 must identify and produce
excellent skills required for the economy to meet its growth potential.
Pillar 3: Skills for Infrastructure Maintenance and Implementation. South Africa’s national
and provincial growth plans include massive infrastructure implementation as a foundation for
economic growth. The massive shortfalls in maintenance of existing, rapidly degrading
infrastructure networks also require improved and increased skills in the GCR.
Pillar 4: Skills through Learning / Work Opportunities. Significant resources continue to be
spent on public works projects such as the EPWP, CWP and the newly-proposed GCR Tshepo
500 000. The MSP2 must optimise the focus of these programmes on developing employable
skills and entrepreneurship that offer opportunities for sustained economic growth.
Figure 13: MSP2- Relationship between ‘4E’ Framework and Skills Priorities
MSP2 Final Report 38
4.2. Six elements of MSP2
The MSP2 is structured around six elements that are critical for the successful development,
implementation, monitoring and review of a GCR Skills Strategy. These six elements are illustrated in
Figure 14 below.
Figure 14: MSP2- Six Structuring Elements
Elements 1 to 3 relate to the placement and exercising of skills planning powers, the placement of
functions, institutional structures for skills development and the definition of a clear skills development
process for the GCR.
Element 1: A Rationalised institutional skills landscape for Gauteng. This will ensure that
the development of skills strategies for the GCR happens at the right level and that forums
through which all public and private organisations contribute to skills development are simple,
streamlined and effective.
Element 2: Clarified Implementation Capacity for Skills in Gauteng. This element
proposes that roles and responsibilities in provincial skills strategy development and
implementation must be clear and that there should only be one consultative forum (with
executive capacity) through which all key role players participate in the development of a
provincial skills plan.
Element 3: An Embedded Skills Development Planning Methodology for Gauteng. This
element proposes a clearly defined method through which the skills strategy for Gauteng is
developed, tested and adapted annually, along with clear points in the process where
stakeholders can provide input.
Element 4 is the dynamically developed Master Skills Plan 2 for the GCR, known as the GCR Skills
Strategy (GSS) that is developed through Elements 1, 2 and 3.
Rationalised GCR Institutional Skills Landscape
Embedded GCR Skills Development Methodology
Clarified GCR Skills Implementation Capacity
GCR Skills Strategy Baseline (GSS)
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MSP2 Final Report 39
Element 4: A GCR Skills Strategy Baseline (PSS) that is reviewed annually in line with
industry changes and skills outcomes from all actors. This element proposes that, having
implemented Elements 1, 2 and 3, a single provincial skills strategy is developed that sets the
skills priorities for the province. This strategy guides the actions of all skills implementers, but
is reviewed annually to ensure it reflects changes in skills supply and demand.
Elements 5 and 6 relate to the implementation of, and constant monitoring and evaluation of the
GCR skills strategy and its outcomes, through Element 3’s Embedded Skills Development Methodology
so that the MSP2 remains current and relevant.
Element 5: A Clear Monitoring and Evaluation Framework for Skills Outcomes. This
element proposes all skills role players contribute to the collation and analysis of skills data on
a provincial basis, in order that statutory information is available on progress towards provincial
skills targets.
Element 6: Clear Implementation Plan for MSP2. This element sets out a high-level
implementation process for Elements 1, 2 and 3, as well as the implementation procedure for
Element 4 (Provincial Skills Strategy).
Key aspects relating to each Element of MSP2 are outlined in the following sections.
4.2.1. Element 1: Rationalised GCR institutional skills landscape
Skills planning is an integral part of, and must flow directly from the GCR’s economic and spatial
planning process. It is important that the skills strategy for the GCR is developed in close relationship
with overall development and economic planning undertaken for the province. Plans to grow the
economy can only succeed if backed by skills required to implement those plans. Further, a
misalignment of skills and development plans will impede economic growth prospects by creating skills
surpluses and shortfalls that undermine employability and waste limited skills development resources.
This implies that the Office of the Premier (OOP), in association with the Provincial Planning and
Governance Cluster, should be the ultimate custodian of GCR skills planning. This requires a
move in the skills planning and implementation function from its current custodian, the Department of
Education (DOE), to the Planning function located in the OOP, reporting ultimately to the Office of the
Premier. The Gauteng Department of Education (GDE), the Department of Economic Development
(GDED) and the Department of Infrastructure Development (GDID) are the most important provincial
public entities supporting skills planning and implementation.
The Institutional Skills Landscape must ensure alignment across Public National, Provincial and
City stakeholders to provide streamlined implementation of the MSP2. This implies links to the Human
Resource Development Council of Southern Africa (HRDCSA) at a national level, and the creation of a
provincial skills structure that echoes the HRDCSA’s functions, yet provides executive capacity for skills
development and implementation at the GCR level. It must further allow for inclusive Public-Private
consultation so that all sectoral stakeholders engaged in economic growth and skills development are
afforded a platform to which they can present and resolve challenges and blockages relating to skills
development in the province. In addition, the Institutional Skills Landscape must create opportunities
for innovation.
MSP2 Final Report 40
A single Consultative Structure for Skills planning and implementation is proposed for the GCR. It is
recommended that the current Provincial Skills Development Forum (PSDF)2 be re-constituted,
restructured, capacitated and adequately resourced to become the GCR Skills Forum (GSF). The GSF
must be representative of National, provincial and local government; organised Business, Organised
Labour, Educational Agencies (Academia, Public sector and independent voices of associates), Local
Government, SETAs, Quality Councils & Professional Bodies and Civil Society, Non-Profit
Organisations (NPOs), Non-Governmental Organisations (NGOs), Faith-Based Organisation (FBOs)
and Community-Based Organisations (CBOs).
A proposed structure for the GCR Skills Forum (GSF) is illustrated in Figure 15, and discussed in more
detail below.
Figure 15: MSP2 – Proposed Institutional Framework for Skills in the GCR
2 The Provincial Skills Development Forum (PSDF) was launched during 2014, but has not realised its potential
as the skills forum for the GCR. The PSDF is mandated in the National Skills Act, and its current Terms of
Reference covers much of the requirements for the new GSF (refer to Annexure 6). The Forum is newly formed
(two meetings have been held) and it is at a point where sub-committees must be established. The only existing
sub-committee is the GPG HRD Steering Committee, which meets every second month and is regarded as
functional. It is recommended that other sub-committees are set up to meet objectives of the MSP 2015 to 2020.
Skills Priority Working Groups (as required)
Gauteng Skills Forum (GSF)(Reformed Gauteng Skills Development Forum)
HRD Council of South Africa
(HRDCSA) (advisory)
Gauteng
Office of the Premier (OOP)
Deputy President
Provincial Executive Committee (Cabinet)
GCR HRD Council
(Advisory)
Planning & Governance Cluster
MinMec
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Yellow = New Structure
Blue = Proposed
Purple = Restructured
Premier’s Skills Partnership (PSP)
(GSF Planning & Implementation Committee)
Public ServiceECD &
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Technical
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Higher Educ Workplace
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MSP2 Final Report 41
The GSF should have a plenary committee to be known as the Premier’s Skills Partnership (PSP),
chaired by the Premier3. This will be the ultimate structure at which decisions are taken for ratification
by principals. Under the PSP, a GCR Skills Planning and Implementation Committee (GSPIC) must
be constituted. This committee will comprise representatives from all Sub-Committees of the GSF, and
will be responsible for overseeing the development and implementation of the GCR Skills Strategy. This
body will be the key driver of the revision of the GSS annually, based on information and intelligence
provided by, and support from the GCRA, and using systems implemented by the GCRA for the GSF,
in association with DHET.
Under the GSPIC, the Provincial advisory body for skills, echoing the HRDCSA at the national level,
should be placed. This will be the GCR Human Resources Development Council (GHDC), an
advisory structure providing recommendations to the GSPIC, for ultimate ratification by the PSP for final
approval by the Provincial Executive and Premier.
The GSF should comprise a set of Sub-Forums and Committees representing the key education and
skills sub-sectors in Gauteng’s Skills Value Chain. These could be existing, working skills structures,
re-constituted or new sub-committees. Initially, these sub-committees are proposed to comprise the
following, but these can be adapted as required by the partners to the GSF – it is also recommended 4that governance structures include strategic alignment between all sub structures:
An Early Childhood Development and Pre-Natal Support Sub-Committee, to consult on and
develop strategy related to furthering the rollout of the Gauteng Province’s ECD programme as
well as to provide a forum for creating synergy between the various public sector departments
engaged in ECD, namely the Department of Social Development (DSD), the Department of
Education (DOE) and the Department of Health (DOH) at the provincial level and the
Department of Basic Education (DBE) at a national level.
A Basic and General Education Committee, covering basic education and general education
up to Grade 12. This should include participation from all public and private stakeholders
engaged in delivery of and improvement of basic education.
A Technical Education Committee, covering technical schools and TVET colleges, as well
as aspects relating to the training of Artisans. A key task of this team will be to coordinate,
develop and implement arrangements related to TVET colleges in Gauteng, and to strengthen
the role of technical schools in the province. This includes working with DHET to identify and
implement Centres of Specialisation in TVET colleges.
A Higher Education Committee covering Universities and Universities of Technology,
possibly incorporating the current Deans’ Forum in operation in Gauteng.
A Workplace Training Sub-Committee, to consider coordination of key skills development
interventions such as Recognition of Prior Learning (RPL), experiential training and other
vocational learning facilitated within the workplace via Mandatory, PIVOTAL and Discretionary
grant funding from the SETAs.
A Community College, CBO and NPO Committee, that focuses on the development and
implementation of an appropriate Community College model for Gauteng, as well as on the
coordination of publicly supported skills initiatives across the province, as envisaged in Tshepo
500,000. This must focus on coordinating and improving the outcomes from Community Works
Programme (CWP), Expanded Public Works Programme (EPWP) and other basic skills
initiatives, through the coordinative structures envisaged for the Tshepo 500,000 programme.
3 Note that the PSP is outlined in the Terms of Reference for the PSDF.
4 DHET has noted that it received a particularly poor response from colleges in the GCR when it called for Volunteer Centres of Specialisation,
albeit that this came with the potential of monetary and other support for implementation.
MSP2 Final Report 42
The Public Service HRD Forum, which is currently in operation, comprising representatives
from the fourteen provincial government departments and HRD representatives from each
Municipality or Metro in the GCR. This must deal with the needs for the radical transformation
of skills within the provincial and local public sector departments. Other, as deemed necessary
by the GSF Plenary.
In addition to the above Committees, the GSF must provide for the establishment of cross-cutting,
thematic Skills Priority Working Groups, in order that skills priorities identified for the GCR are
strategically developed and implemented across the above Committees. Again, these Working Groups
may be constituted as required, but it is proposed that there should at least be the following to start, in
line with the skills priorities identified for the GCR:
A Skills Value Chain Integration Working Group, that must oversee and ensure that the
linkages and gaps between steps in the GCR’s skills value chain are addressed by all other
committees from a strategic perspective.
A Working Group for the Radical Transformation of the Public Sector, aimed at addressing
the TMR’s focus on transforming the state machinery from a skills perspective, in a holistic way
for Provincial and Municipal levels.
A Skills through Learning and Work Opportunities Working Group, specifically aimed at
coordinating and improving work-based opportunities for TVET students and Artisans in
training.
A Working Group addressing Skills for Growing the Economy, Infrastructure
Implementation and Management. The focus of this Working Group is to ensure that critical
skills requirements are clarified, escalated and included in overall skills planning processes,
and to ensure capacity to implement and manage the GCR’s proposed massive infrastructure
spend.
A Careers Guidance Working Group, which must articulate careers guidance needs for the
GCR, and coordinate disparate careers guidance programmes and initiatives across the GCR.
While focused on creating a pipeline of good students from schools into scarce skills areas, this
should also offer opportunities for existing employed and unemployed graduates to access
opportunities. A core focus will be to better link learner and student data to the needs in the
economy.
Other thematic Working Groups, as deemed necessary. It is likely, for instance, that the
development of Entrepreneurism in the GCR may require an overarching Working Group in
order to deal with all bottlenecks and opportunities in the Skills Value Chain in a coordinated
manner.
Furthermore, a systematic review of all existing skills-related forums in the GCR is recommended
to ensure a single skills forum structure with sub-committees or sub-forums representing sectoral
interests. This must identify well-structured and operating forums, in order to align them within the new
single GSF structure. Forums or committees that are deemed ineffective must improve their operation,
or be subject to dissolution where these continue to not meet their mandate.
National public partners to the GCR’s skills planning processes are the national Department of
Education (DoE), the Department of Higher Education and Training (DHET) and the Department of
Labour (DOL), and are viewed as key stakeholders in GCR skills planning and economic development.
All fourteen provincial departments should be represented through the Human Resource
Development Committee (HRD Committee), which should be constituted as the public sector
subcommittee of the GSF. Further, a Public Sector Skills Sub-committee, related to the existing
Premier’s Coordinating Forum (PCF) should drive mutually beneficial skills requirements between
provincial and local government.
MSP2 Final Report 43
As the coordinating consultative skills Forum for the GCR, the functions of the GSF must include:
Collection, collation, analysis and interpretation of skills datasets;
Research and development related to GCR skills requirements, including consultation,
ratification and adjustment of the GCR Skills Strategy;
Managing inputs from the diverse interest groups and representative groupings relevant to skills
development in Gauteng;
Overseeing the development and approval of the GCR Skills Strategy;
Identifying, creating and implementing formal partnerships aimed at developing skills required
in the GCR to meet the targets of the GSS;
Accounting for high level skills development and implementation performance in the GCR;
Offering advice to the Premier on skills-related issues; and
Monitoring and evaluating skills development outcomes in the GCR.
4.2.2. Element 2: Clarified skills implementation capacity
Coordinated skills implementation capacity in the Gauteng City Region (GCR) is critical to ensure the
success of the MSP2. Important skills implementation considerations are outlined below.
GCR Skills Planning Support Function: Element 1 establishes the Office of the Premier (OOP) as
the ultimate point of contact for the provincial skills planning function. The GSF provides this direct
linkage to the OOP and its planning function, with the Gauteng Department of Education (GDE),
Department of Economic Development (DED) and Department of Infrastructure Development (DID) as
key partners in this process. However, it is noted that the OOP planning function, along with the
mandated research entity, the Gauteng City Region Observatory (GCRO), do not have the necessary
capacity and expertise to undertake provincial skills planning functions. This therefore requires a
dedicated institutional capacity to support the GSF.
GCR Skills Forum (GSF): The GSF, with its Plenary (Premier’s Skills Partnership) chaired by the
Premier, is responsible for consultation, ratification and adjustment of the GSS. Members of the GSF
must be clear on their role and contribution with their individual performance agreements being aligned.
GCR Executive Skills Authority: In order to successfully fulfil the roles required of it in relation to
provincial skills planning, the GSF will require a dedicated executive capacity to support it. It is
proposed that a realigned, renamed, restructured and re-capacitated Gauteng City Region
Academy (GCRA) reporting directly to the OOP should play this role.
Given this strategic role change, it is proposed that the GCRA should consider a name change to reflect
this, such as the Gauteng City Region Skills Authority (GSA). In its new role, the GSA would not act
as a training or service provider as the GCRA does currently. This will ensure that permanent capacity
exists in the GCR to drive the planning and development, implementation, monitoring and regular
review of the GCR’s skills strategy, and that the skills strategy closely aligns with provincial plans. This
will require the GCRA to perform at a more strategic rather than operational / implementation level.
Further it would be necessary to ensure the GCRA has sufficient influence and in-house skills to
undertake key roles of information collation and analysis, research and development, partnership
development and monitoring as well as the development and management of the GCR Skills Strategy.
MSP2 Final Report 44
The GCRA therefore becomes the strategic implementing agency that ensures effective
implementation of the six MSP elements within the 4E Framework, on behalf of the PSF. The GCRA’s
core mandate should be revised to ensure its ability to influence and direct the development,
implementation and monitoring and evaluation of the skills strategy for the province. The GCRA will
need to be financed accordingly as well as have availability of a budget to ensure successful
implementation of the GSS every year. This will also entail that the GCRA mandate will need to be
reviewed as the proposed role no longer accommodates the GCRA’s current role as a training provider.
Implementing Partners: All public and private skills bodies and organisations contributing to skills
development in Gauteng should be represented on the GSF. This will ensure that their principals are
bound to align their skills strategies with the overall GCG Skills Strategy. They are obligated to report
back on progress in relation to the implementation of the Gauteng Skills Strategy (GSS) to the GSF via
the GCRA’s systems and by means of incorporating GSS outcomes in line with their core mandate, to
their Annual Performance Plans. It is recommended furthermore that in order to ensure an effective,
strategic and streamlined forum, extraordinary organisational design elements need to be applied to its
architecture and governance structure. Key Implementing Partners will form part of executory
committees that report back to the GSF quarterly on progress. Capacity to ensure effective
implementation must be considered for implementing bodies, with a budget aligned to prioritised needs
of the province.
4.2.3. Element 3: Embedded GCR skills development methodology
The principles of the MSP2 indicate that skills planning cannot be a static process. It must constantly
adapt to changes in demand for, and supply of skills. Therefore, if the GCR is to consistently develop a
defensible, regularly updated and empirically-backed GCR Skills Strategy, it is necessary to define a
consistent approach, or methodology, for its development and review. Further, this consistent
methodology must be embedded in the institutions that oversee, develop, implement and monitor
and review skills in the GCR in order to ensure consistency and to provide the platform for strategic
skills planning and implementation to improve annually.
An Embedded GCR Skills Development Methodology has been outlined that is:
Logical, structured and systematic: The methodology provides a step-by-step guideline to
stakeholders, asks the critical questions and provides a process whereby stakeholders provide
answers to these questions. The methodology is applied through a continuous feedback cycle
to guide the province’s overall planning cycle that clarifies skills priorities, plans processes for
proactive skills development, implements and monitors, reviews and revises provincial skills
needs. The benefit of the methodology is that it ensures that planning takes place early in order
to prioritise projects and actions aligned to skills needed to grow economies. These priorities
become embedded in the next year’s Implementation Plan.
Embedded and Institutionalised: The methodology is agreed by the MSP2 stakeholders. It
is adopted as the process followed by agencies and structures in relation to their roles for skills
development in the provincial skills development value chain. It requires acknowledgement in
sub-sector planning and requires feedback via statutory reporting. The process informs
decision making at critical points.
A continuous feedback cycle: The Skills Planning Methodology is repeated periodically
(annually) and is revised where required, to become increasingly accurate and effective over
time.
MSP2 Final Report 45
Clear Contact Points and Accountability: The Skills Planning methodology also links
stakeholders to specific roles and functions. Further, this approach ensures that skills plans
are linked to implementing institutions’ outcomes to structure accountability.
A four-step skills planning methodology has been developed for the GCR. This is based on the
experience of the Department of Higher Education and Training (DHET), through its Strategic Integrated
Project (SIP) Skills Planning approach. Each of the steps are premised by critical skills-related
questions, with sub-steps that guide the implementation process, which results in an approval and sign-
off process before commencement of a subsequent step.
The following illustrates the Embedded Skills Development Methodology:
Figure 16: MSP2 – Skills Development Methodology
MSP2 Final Report 46
A key component of Step 3 is to identify provincial Centres of Specialisation for delivery of needed
skills, working in collaboration with DHET. Due to the high cost of upgrading facilities and upskilling
staff to tackle specialist areas required by the GCR economy, it is necessary to focus these in specific
facilities. A proposed Priority Occupation Package grant system, using SETA and NSF funds, is likely
to be applied to assisting to fund the Centres of Specialisation upgrades.
Further, to facilitate the provincial skills planning methodology and approach, DHET proposes that a
formal Memorandum of Understanding be signed between DHET and the Gauteng Provincial
Government that sets out the respective obligations and supports to be offered by national and
provincial entities. Given that DHET’s responsibilities include the national mandate for all colleges,
universities, SETAs and (shortly) community colleges, this MoU will provide important clarity on roles,
obligations and resources in the skills planning, funding and implementation processes. A copy of the
standard MoU is included in Annexure 9.
4.2.4. Element 4: GCR Skills Strategy (GSS) baseline
Element 3 of the MSP2 develops a skills development methodology for the GCR, in place of a single
documented and static skills plan for the next six years. The GCR Skills Strategy (GSS) developed
in this Element documents outputs from the Embedded Skills Development Methodology,
including learnings and best practices. The GSS presents the GCR’s cross-sectoral skills priorities,
based on national and provincial strategies and specific analysis of the GCR’s skills supply and demand
profile. It identifies skills needs to support provincial and local development strategies.
The GCR Skills Strategy (GSS) considers the long-term skills development trajectory required to
support the needs of the GCR (towards 2030). The GSS is integrally linked to national and
provincial development Priorities. It must identify and drive skills needs required to implement the
priorities identified through the ‘development cascade’ and then develop the skills baseline for the next
six years as a supporting strategy to the provincial Transformation, Modernisation and Re-
Industrialisation (TMR) strategy.
MSP2 Final Report 47
A skills forecasting model has been developed that analyses and models the demand for skills, based
on historical economic data that is projected into the future to ascertain likely skills demands in different
economic sub-sectors. Data on skills supply is then collated from various sources, including primary
and secondary schooling, TVET, university and university of technology data as well as SETA data.
This supply data is then matched to the demand data, in order to ascertain skills gaps at a general
(sectoral) level, as well as at a finer-grained (occupation) level5.
From this background information, a medium-term (six year) GCR skills strategy baseline is
developed for the GCR. This baseline will be revised annually to ensure that it takes into account
changes in the skills demand, supply and impacts of skills programmes implemented. GSS accuracy
and inputs from stakeholders improves as iterations are completed annually through implementation
of the Embedded Skills Development Methodology. In doing so, it illustrates the credibility of data and
modelling of skills supply and demand in the GCR. The GSS1 (FY15/16) is presented as part of the
draft MSP process document (it is considered a commencement plan). The GSS2 (FY16/17) should
include updated baseline data and clear targets based on priorities identified by the OOP, and inclusion
of currently unavailable data. GSS2 will be developed from the GSS1 baseline, using the specified
methodology in Element 3.
The GSS is not intended to be a detailed skills plan for every skills implementing agent in the
GCR, but rather to be a general strategy from which skills implementers can take direction, in order to
ensure their strategies and implementation programmes support the overall provincial skills strategy.
The GSS therefore includes a high-level Implementation Plan only. It is the responsibility of
implementing agents to operationalise the GSS. It is incumbent on all skills implementers to align with
the GSS, as well as to ensure two-way information flows to improve the accuracy of the GSS supply
and demand data over time. Therefore, Provincial and municipal skills planning, sector strategic skills
plans (SETAs) and plans of Universities, Universities of Technology and other training providers should
be based around requirements identified in the GSS.
The GSS is Inseparable from Institutional Arrangements. Therefore, the GSS will only achieve its
purpose if it is closely related to a revised consultative structure (OOP and GSF) and GCR-wide
implementation body (revised GCRA), who strategically guides and drives consultation, definition and
implementation skills priorities in the GCR. In this way, shortcomings in the existing plan (such as the
lack of certain source data and limited consultative processes) can be addressed in later plan iterations.
4.2.5. Element 5: Clear monitoring and evaluation (M&E) framework
In order to ensure that the GSS is properly implemented, a clear Monitoring and Evaluation (M&E)
framework will be implemented. Key components of this framework include the following:
5 It is noted that DHET has already commenced the development of prototype systems, and will also shortly be undertaking further
systems development. It will be critical for the GCR’s skills planning systems to be aligned with, and where feasible inter-operable
with data sources used prototype that is available now on the Portal https://sip-skills.onlinecf.net. It is proposed that systems
developed for the GCR GSS must be compatible with, or even share components of the national system. DHET is in the process of
issuing a tender for further development of the national system. A national forecasting tool that has been professionally developed for
the DHET is also available for use by provinces.
MSP2 Final Report 48
Clear Monitoring Framework: Monitoring must assess coverage as well as real impact of
programmes and entrenched (statutory) reporting must ensure outcomes (quantitative and
qualitative) can be adequately measured. This includes procedures for how the GSS and the
implementing agents’ plans that are implemented are articulated across different levels of
reporting e.g. the National Development Plan (NDP), Provincial Skills Strategy (PSS), SETA
Sector Skills Plan (SSPs) and Annual Performance Plans (APPs).
Data Repository: Sources of defensible skills data will be used to build a solid data platform
that can be used to model both supply-side and demand-side skills information. Data collation,
analysis, modelling and interpretation will be undertaken in order to inform skills modelling.
Reporting Framework: M&E information will be included in regular statutory reports. These
reports will be available to stakeholders, as well as to senior decision makers in order to assist
to guide skills implementation.
‘Skills Dashboard’: Information outputs from data and reporting will be assimilated to create
‘closed loop’ skills monitoring dashboard. This will provide uniform data to the skills sector in
the GCR, on which future modelling iterations will be based.
4.2.6. Element 6: High-level implementation plan (HIP)
A clear, high-level Implementation Framework required for all six elements of the MSP2, as well as for
the development, revisions of and implementation of the GSS. The following aspects must be
considered in the HIP:
Immediate Institutional Implementation Requirements: The first three elements (E1:
Rationalised Landscape; E2: Skills Implementation Capacity; E3: Skills Methodology) must be
implemented in the immediate term, as these changes form the institutional base for GSS
further development and implementation. These three will therefore form the focus of the short-
term implementation framework.
GCR Skills Strategy Implementation Plan: Preparations will be required to ensure that
available data sources are included in the assimilation and development of the first iteration of
the GSS. It is proposed that, given the initial institutional implementation requirements, the
outsourced capacity is used to develop the first GSS iteration, based on the modelling
framework already developed by the Deloitte team.
Monitoring and Evaluation Framework for Ongoing Implementation: Clearly defined M&E
framework and systems must be implemented in order to commence data capture, analysis
and production of skills information for GCR. Implementation evaluations should be considered
in the medium-term (two to five year projects) and impact evaluations should be conducted for
long-term projects (ten year projects).
MSP2 Final Report 49
5. Gauteng City Region Skills Strategy 1 (GSS1)
Element 4 of the second Master Skills Plan (MSP2’s) implementation framework is outlined in Section
Error! Reference source not found. This chapter outlines the rationale behind the development of
he Gauteng City Region Skills Strategy (2015 to 2020) and presents the Baseline Gauteng City Region
Skills Strategy (referred to as GSS1).
The aim of the GSS is to set out the high-level skills strategic framework for the GCR, against which all
skills implementers in the GCR will align their skills implementation programmes. This is based on the
following:
Focus: The GSS must focus on a limited number of skills areas that will create the maximum
potential for change in the Gauteng City Region (GCR) skills landscape.
Core Skills Areas: As a general rule, the GSS will not target core focus areas / areas of
responsibility of specific mandated departments and entities. It is deemed important that, while
many links in the GCR Skills Value Chain face serious difficulties, it is beyond the ambit of the
GSS to resolve all of these and this must remain the core focus of mandated departments and
implementing agencies.
Coordination and Gaps: A majority of the GSS skills focus areas relate to gaps in the Skills
Development Value Chain, or a lack of integration between links in the Skills Development
Value Chain.
It is important to note that in general, skills implementers (and specifically public sector bodies) have
already produced strategic and skills plans for the period 2015 to 2020 and detailed implementation
plans are set and being implemented for the 2015 to 2016 financial year. Therefore, it is most likely
that the GSS2 will have a greater impact and influence in FY16/17.
5.1. GSS development methodology, limitations and risks
The eleven-step skills planning methodology that is outlined in Chapter 1, section 1.3, has been applied
to the development of the MSP2‘s Gauteng City Region Skills Strategy (GSS) Baseline for 2015 to
2020. However, this methodology will be replaced by the Embedded Methodology for the development
of the GCR Skills Strategy outlined in Element 3 (refer to Section 4), once this is implemented.
It is noted that, given the relatively short time frame and limited resources available for this project,
certain limitations do exist with the GSS Baseline:
Baseline data for modelling: The modelling of the GCR’s skills demand and supply was
limited to some extent by what readily available.
Data and Information: There is no centralised repository for skills information in South Africa
at present. Therefore, significant effort has gone into identifying and collating the best possible
baseline data for skills in the GSS on which to model the skills supply, demand and gaps in the
GCR.
MSP2 Final Report 50
Time and Budget Constraints: Certain quality information sources that are potentially
available in the skills environment and that will add value to the future skills modelling for the
GCR could not be procured in time, or could not be obtained within the financial constraints of
this project. While reasonable alternative data has been used, it will be important to ensure
that those sources can be obtained and included in subsequent GSS modelling iterations
(specific data issues are outlined in the Annexures).
5.2. Modelling skills supply, skills demand and the skills gap in the GCR
A critical component of the GSS is to understand the supply and demand for skills in the GCR. The
modelling approach is outlined in Figure 18.
Figure 17: GCR Skills Model Overview
Outlined below are the outcomes from the following aspects of the modelling undertaken on the Skills
Value Chain for the GCR:
GCR Historical Economic and Skills Productivity Analysis (1995 to 2013): This is based
on analysis of the GCR’s economy over the last twenty years, including sectoral splits at a
municipal level of analysis (refer to Annexure 2 for a more complete description of the economic
analysis and future scenario projections.
GCR Skills Supply Analysis (2014 to 2020): An analysis of historical outputs from the Skills
Value Chain (Basic Education onwards) was used to project future skills production in the GCR
(refer to Annexure 3 for a more complete description).
GCR Economic and Skills Demand Projection (2014 to 2020): This historical data has been
used to project economic growth (Gross Value Add) over the next six years. From this, the
potential demand for skills to support economic growth projections, based on labour productivity
trends, was ascertained (refer to Annexure 4 for a more complete description of the skills
demand projections).
MSP2 Final Report 51
GCR Skills Gap Analysis: Based on the above, the model correlates demand data with supply
data in order to assess current skills gaps and surpluses at a sectoral and occupational level
(refer to Annexure 4 for a more complete description of the skills gap analysis).
5.2.1. GCR economic and skills productivity analysis and projection
A critical starting point for modelling the anticipated demand for skills in the GCR is to accept that, with
the exception of entrepreneurial skills (which are in any event very limited in the GCR), demand for
skills is derived from the demand for the goods and services they are required to produce.
Therefore, skills must align with the requirements of specific sub-sectors of the economy and must
adapt where and when this changes.
However, the volume and level of skills required by different economic sectors varies considerably.
Some sectors are relatively more skills intensive, with a higher proportion of workers highly skilled or
skilled. Others are relatively less skills intensive. There is also a dynamic element to this picture, as
generally, most sectors are becoming more skills intensive over time and there is increasing tendency
towards informalisation in many sectors. Figure 18 indicates the skills composition and level of informal
employment of different sectors of the Gauteng economy in 2013.
Figure 18: Skills composition and extent of informal employment of different sectors in
Gauteng in 2013
Source of basic data: Quantec Standardised Regional Database
0% 20% 40% 60% 80% 100%
Agriculture, forestry and fishing
Mining and quarrying
Food, beverages and tobacco
Textiles, clothing and leather goods
Wood, paper, publishing and printing
Petroleum products, chemicals, rubber and plastic
Other non-metal mineral products
Metals, metal products, machinery and equipment
Electrical machinery and apparatus
Radio, TV, instruments, watches and clocks
Transport equipment
Furniture and other manufacturing
Electricity
Water
Construction
Wholesale and retail trade
Catering and accommodation services
Transport and storage
Communication
Finance and insurance
Business services
Community, social and personal services
General government
Highly Skilled Formal
Skilled Formal
Unskilled Formal
Informal
MSP2 Final Report 52
In order to project future skills needs, historical sectoral growth trends, their related labour productivity
and resulting levels of employment are extrapolated into the future, based on assumptions relating to
overall economic growth scenarios, specific sectoral growth trajectories in each sector, per municipality.
Three growth scenarios are modelled. The “High Road” scenario is consistent with an average annual
growth rate of 4.3% and reaches a maximum of just over 6% in 2020. The “Middle Road” scenario
averages just under 3% a year, and the “Low Road” scenario averages only 1.6% a year – with the
growth rate falling to 1.2% in 2020. Under the “High Road” scenario, real GVA increases by around
35% between 2013 and 2020; under the “Middle Road” it increases by 22%; and under the “Low Road”
scenario it rises by only 11% over the period.
Analysing these scenarios, the “Middle Road” scenario was selected as the base case for the analysis,
with the proviso that reaching this target growth rate would only be possible if the GCR achieves its
economic stimulation and skills development targets to boost the economy from its current, more likely,
“Low Road” trajectory.
Changes in labour productivity then enable an estimate of future employment demand to be made.
Table 2 indicates the employment growth projected for Gauteng by the “Middle Road” model
disaggregated according to skills level and the formality of employment.
Table 2 shows that there is an increased skills intensity of formal employment, combined with relatively
strong growth in the number of informal employment opportunities. Overall, the number of highly skilled
formal employment opportunities is projected to increase by close to 150,000 by 2020 and the number
of skilled work opportunities by around 340,000. The number of unskilled employment opportunities
will grow at a relatively slower rate of around 2.9% a year between 2013 and 2020.
Table 2: Projected employment by skills and formality under the Middle Road scenario
Type of Employment Net Change Average Annual Growth: 2013 to 2020
Highly Skilled Formal 146 420 3.2%
Skilled Formal 340 289 3.1%
Unskilled Formal 241 806 2.9%
Informal 357 954 3.8%
Total 1 086 469 3.3%
Overall, under the selected “Middle Road” economic growth scenario, total employment opportunities
in Gauteng are projected to increase by close to 1.1 million from their current levels of around 4.3
million. This represents an average annual growth in total employment of around 3.3%.
The final step in the modelling of skills demand is to overlay an Organising Framework for Occupations
(OFO) profile of existing skills in each sector (obtained from SETA Sector Skills Plans) onto the numbers
in each broad category of skills determined in the previous step. Where necessary, these can be
adjusted to reflect skills for which there is currently a shortage. These OFO numbers then need to be
matched to appropriate qualifications offered by the various tertiary (and potentially secondary)
institutions. The annual change in the number of people with specific occupations will indicate the
number of additional qualifications demanded by the economy.
The economic model provides a forecast of skills demanded per SIC economic sector, per skills level
(Highly Skilled, Skilled and Semi / Unskilled), for the three scenarios. The scenarios, skills categories
and economic sectors are listed in Table 3 below.
MSP2 Final Report 53
Table 3: Economic Sectors in the Economic Model
Economic Sectors
Agriculture, Forestry and Fishing
Community, Social and Other Personal Services
Construction
Finance, Real Estate and Business Services
General Government
Manufacturing
Mining and Quarrying
Trade (Wholesale, Retail, Hotels and Restaurants)
Transport and Communications
The demand model selects a scenario and uses the output of the economic model (that is, the skills
demanded per economic sector, per skills category for the selected scenario) and uses these forecasts
as its inputs. These forecasts are then disaggregated into OFO groups and NQF levels.
An outline of the NQF levels is given in the Supply Analysis and the OFO groups are listed below:
Managers;
Professionals;
Technicians and Trades Workers;
Clerical and Administrative Workers;
Sales Workers;
Skilled Agricultural, Forestry, Fishery, Craft & Related Trades Workers;
Plant and Machine Operators and Assemblers;
Machinery Operators and Drivers;
Skilled Agricultural (Craft & Related Workers); and
Elementary Workers.
From the results obtained, it is evident that the greatest demand for skills is present within NQF level 6,
followed by NQF levels 1 and 2. The sectors indicating the greatest demand for skills are the
Community, Social and Other Personal Services sector, the General Government sector and the Trade
(Wholesale, Retail, Hotels and Restaurants) sector (refer to Annexure 2).
A negligible demand for skills within NQF levels 3, 4 and 5 is evident, while NQF level 6 presents a vast
demand for skills. This might be caused by an inappropriate disaggregation of skills demanded into the
NQF levels6.
6 At the time of writing this report, this could only be confirmed if data was directly attainable from SETAs, which would enable
the mappings to be independently assessed.
MSP2 Final Report 54
5.2.2. Modelling GCR skills supply
The varying levels of skills entering the open labour market were analysed by making use of linear
regression analysis. Results of the series of linear regressions used were projected forward for a six
or seven year period, depending on the volume of historical data sourced. This projection determined
the supply of skills in South Africa for the year 2020.
The supply analysis involved a detailed investigation, which aimed to assist in understanding the
movement of learners within the South African schooling system and within the Post-School Education
and Training (PSET) system.
The overall approach involved the use of transition percentages reflective of the rate at which learners
move through the education system. Mortality, dropout rates, migration and repeat rates of learners
were considered as dependent decrements in this analysis. Exit from the education system beyond a
Grade 9 qualification results in an individual with a progressively greater level of skill for the job market.
The further along the Skills Development Value Chain a person exits the system, the more valuable the
acquired skills are likely to be in the job market. While there will still be demand for semi-skilled
employment, the majority of economic growth is increasingly for skilled people.
Historical data for the period 2007 to 2014, depending on availability, was used in the analysis.
Adjustments to the data were made to ensure accuracy of the results and limit the effects of erosive
factors such as double counting. The data used to model and analyse learner movements in the school
system was taken from the Annual Day Ten Schools Survey. Data that was not available from the
Annual Day Ten Schools Survey was obtained from the South African School Administration and
Management System (SASAMS). In addition, PSET data was obtained from both publicly and privately
available resources (refer to Annexure 3 for more detail).
Explicit assumptions were made based on the availability of data7. Some of the key findings from the
Skills Supply Analysis are the following:
Investigations into the failure rate of learners indicated a staggering increase of learners failing
in 2007 to 2014. This failure rate is predicted to increase by 2020, should no remedial action
be implemented.
Projected results indicate a stable increase in National Qualifications Framework (NQF) level
4 qualifications and to a lesser extent an increase in NQF level 1 qualifications. A constant
number of individuals obtaining qualifications at a NQF levels 2 and 3 is predicted.
The total number of individuals predicted to qualify during the five year period (2015 to 2020)
is the highest by far for Business, Economics and Management Studies. A fairly large number
of skills are forecast within the Education, Engineering and Health Professions. Qualifications
with NQF level 4 are projected to be in vastly greater supply than all other Qualifications issued
in the province. Included in these NQF level 4 qualifications are learners who’s highest
qualification is Matric.
Scenario based investigation indicates that a 25% decrease in all fail rates at schools would
result in an increase of roughly 10% in the number of Grade 12 learners enrolled per year from
2015 to 2020.
7 A significant assumption underlying this analysis relates to the approach taken to account for unavailable databases by making
adjustments to publicly available data. This places risk on the reliability of the results, and it is important to bear in mind that the
results are based on appropriate estimates.
MSP2 Final Report 55
5.2.3. Matching skills supply and demand: The skills gap
The gap analysis is, in simple terms, determined by subtracting the total supply of skills from the total
skills in demand in the province. This does not address the issue of how the skills gap is distributed
within each economic sector. The grand total skills gap for the province may indicate a net over-supply
of skills when aggregated across all sectors. However, when this result is disaggregated, an oversupply
of skills may be found in some sectors, while a skills shortage may be found in other sectors. This
illustrates that the magnitude of each over-supply and under-supply of skills may cancel out when
aggregated across sectors.
In light of this, the approach underpinning the gap analysis attempts to disaggregate the skills gap as
far as possible in order to understand the distribution of the skills gap across economic sectors. The
more the skills gap is disaggregated, the greater the insight that can be gained from the analysis thereof.
Furthermore, this allows for a more practical strategy in terms of identifying precisely the areas in which
a shortage of skills exists. It is important to note that if the data is disaggregated to the extent that there
are too few observations in each sub-group, on average, this would result the loss of some statistical
credibility. For this study, because disaggregation was based on the skills gap per NQF level per sector,
statistical credibility was not compromised.
Due to the quality of the data sourced, which includes publicly available data, the furthest level of
disaggregation deemed appropriate for the skills gap was down to NQF level per sector, that is, the
number of skills per sector according to the NQF level of the skill. Such a disaggregation is present in
the demand side analysis but does not exist in the supply of skills results. Thus, a disaggregation of
the supply of skills must be conducted. This disaggregation serves to determine in which sector an
individual with a given skill will obtain employment. Since no data was attained, which indicates a
methodology for such a disaggregation, the method selected was based on a subjective ‘best estimate’
approach to enable comparison between demand and supply side data. The basis of this approach
can be illustrated by use of an example:
“Based on personal judgment, in which sector would we expect person A to work if he or
she has highest qualification B?” (Refer to Annexure 3 for further detail on this approach).
It must be noted that since the basis for the approach is subjective, it merely serves to indicate an
approximate view on the results. These results can only be improved with a set of data which objectively
addresses the question of which sectors each qualification is used in.
Some of the key findings from the Skills Gap Analysis are the following:
Following the subtraction of skills supplied from skills demanded as aggregated at an NQF
level, a vast over-supply of skills in NQF level 4 is observed. This over-supply includes
individuals whose highest qualification is Grade 12.
A significant demand for skills at NQF level 6 is observed. For all other cases, an over-supply
or negligible gap is observed.
MSP2 Final Report 56
The skills gap, aggregated at a sector level, indicates a net oversupply of skills in most sectors,
with a vast over-supply of skills in the Finance, Real Estate and Business Services sector. An
under-supply of skills is observed in the Trade (Wholesale, Retail, Hotels and Restaurants) and
Community, Social and Other Personal Services sectors. When disaggregating the results
further, an under-supply of skills is observed at certain NQF levels within a sector where a net
over-supply of skills exists across all NQF levels within the given sector. These disaggregated
results are shown in Table 4 where the red bars indicate an under-supply of skills per sector,
per NQF level while the blue bars indicate an over-supply of skills per sector, per NQF level.
For example, in the General Government Sector a net oversupply of skills is displayed, yet
there exists a clear undersupply of skills at NQF levels 6, 7, 9 and 10 in this sector.
Table 4: Skills Gap per Sector per NQF Level
MSP2 Final Report 57
5.3. GCR Skills Strategy: Key challenges
The skills demand and supply modelling, along with other analysis outlined above, has identified the
following key features of the GCR’s skills terrain:
High population growth and migration, including a net migration of skills from Gauteng, and a
net in-migration of less-skilled people;
High unemployment and Informal Sector growth, due to a lack of formal employment;
Low workforce productivity, rendering many economic sectors uncompetitive on an
international scale;
Very low SMME and entrepreneurial activity by world standards8, that limits the potential of
meeting employment targets intended to be created by SMMEs;
Weakening economic growth in the country, placing increased pressure on public sector growth
targets, as well as the decreased likelihood of meeting a ‘middle ground’ growth trajectory;
Poor skills outcomes (that is low quality skills) emanating from the Skills Development Value
Chain; and
Poor performance of the public sector, given its high and currently increasing employment
record, in relation to its potential output.
5.4. Defining priority skills focus areas for the GSS
Applying the GCR ‘4E’ framework to the four key Skills Priority Areas identified, yields an outline of the
core skills focus areas in relation to these areas. Figure 19 outlines these priorities in relation to the
Public and Private Sector generally and in relation to the ‘4E’ framework.
8 South Africa is ranked 43rd out of 189 economies (down from 37th in 2014) in the world in respect of the ease of doing business,
and 61st (down from 55th in 2014) with respect to the ease of starting a new business (World Bank “Doing Business”, cited in
News24, 14 July, 2015))).
MSP2 Final Report 58
Figure 19: MSP2 – Public and Private Priority Skills Focus Areas in the GCR
5.5. Strategic Focus Areas and Related Skills Programmes
The economic and skills modelling, as well as alignment of skills objectives in the ‘development
cascade’ identifies key skills gaps in the GCR. These gaps in turn become the six key focus areas for
skills development in the GCR.
Focus 1: Driving Government Transformation & Modernisation, as this has the greatest
potential to positively impact growth and service delivery.
Focus 2: Driving Entrepreneur Development to support the Transformation, Modernisation
and Re-Industrialisation (TMR), the Tourism Enterprise Partnership (TEP) and Gauteng City
Region (GCR) employment creation targets.
Focus 3: Driving Infrastructure Development & Management Skills, in order to support
massive investments in infrastructure in the GCR.
Focus 4: Driving Creation of Priority Economic Skills required to unleash economic growth
in the GCR.
Focus 5: Driving Core Education & Skills Development Excellence: The GSS focuses on
radically improving the quality of core education outcomes in the GCR through departments
and agencies mandated with key skills areas across the skills value chain.
Focus 6: Driving Artisan Development in the GCR, through fast-track implementation of
interventions envisaged by the DHET.
MSP2 Final Report 59
These focus areas define specific skills programmes that will form the core focus areas of the GSS
across each of the four skills priority pillars:
A. Skills for a radically transformed Public Sector (Provincial and Local
Government):
GCR 4E Government Transformation & Modernisation Skills
Development (G4E-GTMS):
This programme must focus on driving the development of strategic
planning skills focused on improving coordination within and between
departments, as well as across government (between national,
provincial and local government in the GCR).
GCR 4E Core Education Skills Development (G4E-CES):
This programme will focus on ensuring key mandated organisations are
assisted to radically improve quality of outcomes from the primary and
secondary schools system and that the GCR continues to extend its
Early Childhood Development (ECD) programme.
GCR 4E Career Development Programme (G4E-CDP):
This programme will consolidate disparate initiatives into a single,
coordinated career development approach for the GCR, in order to prepare
citizens/youth/learners for, and support them in, the world of work (employment/self-
employment).
B. Skills for growing the economy (GCR):
GCR 4E Priority Economic Skills Development (G4E-PESD):
This programme will coordinate, between all key implementing agents in the GCR, the best
alternatives for filling priority skills needs.
GCR 4E Entrepreneur Development (G4E-EDP):
This programme will implement a coherent approach to creating programmes to support the
development of entrepreneurship in the GCR. In addition, this programme will link together
disparate initiatives aiming to assist SMMEs to better access public sector tenders and
procurement processes.
GCR 4E Artisan Development (G4E-AD):
This programme will continue the recent provincial push to rapidly increase the output of
Artisans in the GCR and will coordinate job placements and work experience opportunities on
a provincial level.
C. Skills for Infrastructure implementation (GCR):
GCR 4E Infrastructure Development & Management Skills (G4E-IDS):
This programme will target the creation of key skills in government to grow competences to
develop partnerships around infrastructure delivery through Public Private Partnerships
(PPPs), as well as to sensitise key officials regarding large infrastructure procurement.
MSP2 Final Report 60
GCR 4E Infrastructure Repair and Maintenance Skills (G4E-IRM):
This programme will focus on developing and upgrading required infrastructure rehabilitation
and maintenance, specifically within municipalities.
D. Skills through learning / work opportunities (GCR):
GCR 4E Public Employment Initiatives Skills (G4E-PEIS).
This programme will aim to consolidate the focus of public employment initiatives (existing and
new, such as Tshepo 500 000) to ensure better, more employable outcomes for beneficiaries.
GCR 4E GEYODI Skills (G4E-GEYODI).
The final programme will create a specific framework for engaging with women, youth and
disabled individuals in learning skills and entering the workplace.
5.6. Applying MSP Strategic Programmes to the TMR focus areas in the GCR
Table 5 matches the GSS programmes to the specific focus areas of the TMR. This exercise confirms
that the prioritised strategic programmes match closely to the core challenges identified in the
implementation of the TMR by the OOP (2015).
Table 5: MSP2 – Matching Strategic Skills Programmes to TMR Programme Priorities
Challenge Programme MSP2 4E Focus Areas Key Partners
Raise Standard
of Living of
Township
Residents
Township Entrepreneurship Development:
Support development of township enterprises,
co-operatives & SMMEs
GCR 4E Entrepreneur
Development (G4E-EDP)
GCRA
DOE & GDED
Manufacturing & Production: Promote
Manufacturing & production activities
GCR 4E Artisan Development
(G4E-AD)
NAMB
DHET
Provision of Economic Infrastructure: Provide
necessary infrastructure to support economic
growth
GCR 4E Infrastructure
Development Skills (G4E-IDS)
GCR 4E Artisan Development
(G4E-AD)
NAMB
DHET
Transform Regional Economies: R&D into
regional economic plans for Sedibeng and West
Rand districts
GCR 4E Priority Economic
Skills Development (G4E-
PESD)
GDED (home
department)
GCRA
Reduce
Unemployment,
provide skills &
development
Tshepo 500 000: Training & skilling of
unemployed youth & provision of sustainable job
opportunities
GCR 4E Priority Economic
Skills Development (G4E-
PESD)
DID (Tshepo IA)
Regional Tshepo
IAs
Public Employment Programmes: Expand
comprehensive integrated EPWP & CWP Rollout
GCR 4E Public Employment
Initiatives Skills (G4E-PEIS)
DID (IA)
GEYODI Work Opportunities: Gender, Youth
and Disability in infra, environment & social
sectors
GCR 4E GEYODI Skills (G4E-
GEYODIS)
DOE & GCRA
NYDA
MSP2 Final Report 61
Challenge Programme MSP2 4E Focus Areas Key Partners
Provide Supply-
Chain Links
Market Access Facilitation: Guidelines on
accessing markets
GCR 4E Entrepreneur
Development (G4E-EDP)
DID
DHET
Innovation and indigenous knowledge
sharing
National Agenda Science Councils,
Ekasi Fablabs &
GAP
Provincial Supplier Database: Expand
registration of Township entrepreneurs, SMMEs
and Co-ops on
GCR 4E Government
Transformation and
Modernisation Skills
Development (G4E-GTMS)
The DTI
DID
Develop Industry Agriculture Value Chain: Expand Agriculture
Value Chain
GCR 4E Priority Economic
Skills Development (G4E-
PESD)
DOA
The DTI
Aquaculture Development GCR 4E Priority Economic
Skills Development (G4E-
PESD)
DOA
GTAC
The DTI
Sports, Arts, Culture: Expand creative, sport
and tourism sectors
GCR 4E Public Employment
Initiatives Skills (G4E-PEIS)
GCR 4E GEYODI Skills (G4E-
GEYODIS)
DID
The DTI
Buy more goods
and services
locally
Provincial Procurement: 30% of provincial
procurement in townships
GCR 4E Government
Transformation and
Modernisation Skills
Development (G4E-GTMS)
GCR 4E Artisan Development
(G4E-AD)
DED, DID
NAMB, DHET,
GDED, GDID
75% spend on locally manufactured goods DED, DID
Entrench 30 day payment practices DOL
NAMB
MSP2 Final Report 62
6. High-Level Implementation Framework for the Gauteng Master Skills Plan 2015 to 2020
The purpose of the High-Level Implementation Framework 1 is to accelerate those key activities that
will ensure successful implementation of the second Master Skills Plan (MSP2). The High-Level
Implementation Framework 1 is a Plan that should be implemented from 1 September 2015 with
completion of activities by 31 March 2016. A revised High-Level Implementation Framework 2 will be
required by the Gauteng City Region Skills Forum (GSF), along with a revised Gauteng City Region
Skills Strategy (GSS2) for FY16/17 and will supersede accomplishments made in the seven-month
period. Adjustments can be made to the timing of each High-Level Implementation Framework after
implementation of the first Plan (April 2016).
The implementation plan uses the following broad time horizons for reference:
Immediate Term: To end October, 2015 (end of MSP2 approval period)
Short Term: To end March, 2016 (end of MSP2 Year 1)
Medium Term: MSP2 Period: October 2015 to end March, 2020
o Y2: end of MSP Year 2 (April 2016 to March 2017)
o Y3: end of MSP Year 3 (April 2017 to March 2018)
o Y4: end of MSP Year 4 (April 2018 to March 2019)
o Y5: end of MSP Year 5 (April 2019 to March 2020)
Long Term: Beyond MSP2 Period (2020 to GCR Planning Horizon of 2055)
The contents of this section are premised on the MSP2 (the contents of this document) being
approved by the Gauteng Provincial Government EXCO within the immediate term – that is, by
the end of October, 2015 so that MECs identify champions for implementation of the MSP2.
6.1. Elements of the high-level implementation plan 1 (HIP1)
The implementation of MSP2 will be in line with the six element framework. Set out in the next sections
are the key Indicator areas that will be used to determine the success of MSP2 in its first year of
implementation and the associated key actions required to implement these indicators.
MSP2 Final Report 63
6.2. Element 1: Re-structure the GCR institutional skills landscape
Listed in Table 6 below are activities to establish a functioning set of advisory and executive forums for skills development in the GCR, in line with Element 1
of the MSP2 Framework.
Table 6: MSP2- Element 1 Implementation Plan (Restructure the GCR Institutional Landscape)
Ref Indicator Ref Actions Time Period Start & End RACI-Who RACI How
E1.1 Changed
Location and
Revised
Functions of
GCRA
A Political signoff on placement of GCRA with OOP and
organisational form (department or Agency) and send
out agreed upon press release
Immediate
Term
Sept 2015 to
Oct 2015
OOP / DOE GPG Cabinet
Approval
B Review GCRA Draft Business Plan (2015-2020)
based on new responsibilities in line with MSP2
requirements (See E2.1)
Immediate &
Short Term
Oct 2015 to
Mar 2016
GDE / GCRA Internal Plus New
Consulting Contract
C Develop and approve Restructuring and Resourcing
Plan for new GCRA with a comprehensive
communications strategy with various levels of
advocacy.
Short Term Dec 2015 to
Mar 2016
GDE / GCRA New Contract:
Specialist HRD
D Implement GCRA Restructuring and Resourcing Plan,
including development and implementation of Change
Management Plan
Short Term &
Med Term Y1
April 2016 –
March 2017
OOP / GCRA Internal, supported
by specialist HRD
E Key engagements to popularise MSP2: Province,
Mayors Forum, Private Sector, Current Skills
Implementers
Immediate
Term
Short Term
Oct 2015 to
Dec 2015
GCRA Internal
F Shift the skills planning and implementation function
from its current custodian, the DoE, to the Planning
function located in the OOP
Immediate
Term
Nov 2015
Oct 2015 to
Mar 2016
OOP / GDE OOP & GCRA
E1.2 Re-constitute, Re-
structure, Re-
Launch and
Capacitate the
PSDF as GSF
A Rebrand and restructure the GSF to function as the
supreme body for engagement, development and
coordination in the GCR.
Short Term Oct 2015 to
Mar 2016
OOP / GCRA OOP (With
Support?)
MSP2 Final Report 64
Ref Indicator Ref Actions Time Period Start & End RACI-Who RACI How
B Launch GSF and MSP2: GCR Skills Sector Event Short Term Feb 2016? OOP / GCRA TBA
C Resource the GSF (through restructured GCRA) with
full-time capacity to drive, facilitate, monitor and report
on actions in HIP1
Short Term &
Med Term Y1
Apr 2016 – Mar
2017
OOP / GCRA Internal, supported
by specialist HRD
D Call for nominations for Committees (including
National, Provincial and Local Government,
Organised Business, Organised Labour, Educational
agencies and NGOs)
Short Term Dec 20165? OOP / GCRA
E1.3 Consolidate the
GCR Institutional
Skills Landscape
(GSF)
A Conduct a review of all existing skills-related forums
in the GCR to identify well-structured and operating
forums so as to align them to the GSF structure
Immediate
Term
Sept. to Oct
2015
GCRA Internal with HDR
Support from
GCRA SP
B Workshop with stakeholders to confirm Advisory and
Executive forums, purpose and functions and key
indicators that will define success factors of each
forum for GSS1 - explore recommendations in
Section 4.2.1.
Immediate
Term
Sept. to Oct
2015
GCRA Internal with HDR
Support from
GCRA SP
C Set up initial Plenary Committee known as the
Premier’s Skills Partnership (where decisions are
taken for ratification by principles)
Short Term Feb 2016 OOP / GCRA Internal with HRD
Support from
GCRA SP
D Rationalise ineffective ineffective forums and
structures: Incorporate into GSF substructures,
develop and implement turnaround plans or dissolve
Short Term Feb 2016 OOP / GCRA
/ GDE
Internal with HRD
Support from
GCRA SP
E Set up sub-committees to execute MSP2
implementation requirements to drive GSS1 and drive
development of GSS2
Call for nominations for chairpersons to drive new
sub-committees
Short Term Feb 2016 to
Mar 2016
OOP / GCRA
/ GDE /
GDED /
GDID
Internal with HRD
Support from
GCRA SP
F Constitute a GCR Skills Planning Committee with
representatives (chairpersons) from all sub-
committees of the GSF
Short Term Feb 2016 to
Mar 2016
OOP /GCRA/
GDE/GDED
Internal with HRD
Support from
GCRA SP
MSP2 Final Report 65
Ref Indicator Ref Actions Time Period Start & End RACI-Who RACI How
G Finalise GSF organogram describing relationship
between Advisory and Executing Committees, with
representations and flow of data reported to/from
committees (quarterly reporting).
Short Term Feb 2016 to
Mar 2016
OOP / GCRA
/ GDE /
GDED /
GDID / PSF
Internal with HRD
Support from
GCRA SP
E1.4 Drive MSP2
Implementation
Requirements
through Advocacy
& Accountability
A Clarify type and extent of consultation needed to
mobilise stakeholders to meet the mission, objectives
and principles of the MSP2
Immediate
Term
Oct 2015 to
Dec 2015
GCRA Internal with HRD
Support from
GCRA SP
B Ensure accountability through development and
signature of MOUs with clarity on stakeholder roles
and commitments to meeting the objectives and
principles of MSP2 (specifically MSP2, GSF & GSS
roles)
Short Term Feb 2016 to
Mar 2016
GCRA – As
Required
GCRA
E1.5 Operationalise
and execute
operational plans
A Create operational plans by stakeholders to be
executed as part of GSS1 (specify accountability and
timeframes)
Short Term Feb 2016 to
Mar 2016
GCRA – As
Required
GCRA & GSF
Skills Planning
Forum
B Identify gaps, blockages and risks across committees’
operational plans; develop mitigation plan as part of
operational plans
Medium Term Apr 2016 March 2017 GCRA & GSF
Skills Planning
Forum
C Capture outcomes of forums for GSS1 into Annual
Performance Plans
D Execute, monitor and report on progress of Element 1
implementation based on Indicators and Actions in
Implementation Plan
Short &
Medium Term
Oct 2015
(ongoing)
GCRA TBA – M&E
Arrangements
MSP2 Final Report 66
6.3. Element 2: Clarify skills implementation capacity
Table 7 below outlines activities required to re-structure and re-position the GCRA as the implementing agency within the OOP.
Table 7: MSP2- Element 2 Implementation Plan (Clarify Skills Implementation Capacity)
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
E2.1 Obtain support for
GCRA
realignment &
GSF
Establishment
A Clarify core mandate and roles that ensure the GCRA acts
as a strategic skills oversight agency with executive
capacity support for GSF (See E1.1 B). Implement
Communication Strategy
Immediate
Term
Aug to Sep
2015
GDE /
GCRA /
OOP
GPG Consultation
& Approval Process
B Develop and approve ToR for external capacity support
for GCRA repositioning and GSF establishment.
Immediate
Term
Sep to Oct
2015
OOP/
GDE /
GCRA
Internal with
support from
current Service
Provider
C Secure budget and procure external capacity support
required to ensure successful implementation while the
GCRA is being set up
Immediate
Term
Sep to Oct
2015
GDE /
GCRA /
OOP
GPG Consultation
& Approval Process
Procure Service Providers to work with GCRA through
realignment and change management, including
establishment of GSF.
Immediate
Term
Nov 2015
Oct 2015 OOP /
GDE /
GCRA
OOP & GCRA
E2.2 Capacitate the
GCRA as the
implementing
agency tasked to
drive the GSS
A Develop New Organisational Organogram and
Capacitation Plan with positions and skills required for
GCRA to fulfil revised roles and functions
Short Term Oct 2015 to
Dec 2015
GCRA Internal Plus New
HRD Consulting
Contract
B Determine budget requirements for restructured GCRA
and GSF to ensure successful implementation of the MSP
via new GCRA and GSF capacity and structures
Short Term Oct 2015 to
Dec 2015
GCRA Internal Plus New
HRD Consulting
Contract
C Develop Detailed Implementation and Change
Management Plan
Short Term Oct 2015 to
Dec 2015
GCRA Internal Plus New
HRD Consulting
Contract
D Obtain approval for restructuring GCRA and Implementing
GSF Support Functions
Immediate /
Short Term
Dec 2015 GCRA GPG Consultation
& Approval Process
MSP2 Final Report 67
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
E Implement Restructuring, Resourcing and Change
Management Plan for GCRA to undertake revised
functions, including: information collation and analysis (as
part of monitor and conduct regular reviews of the GCR’s
Skills Strategies); developing GSS; research and
development; partnership development and monitoring;
project management (following up and facilitating the
driving of activities in operational plans developed by
stakeholders to deliver on the HIP); and implementation
and M&E activities.
Short Term
Medium Term
Y1
Dec 2015 to
Mar 2016
April 2016 to
Aug 2016
GDE /
GCRA
Internal Plus New
Consulting Contract
6.4. Element 3: Implement the embedded skills development methodology
Table 8 outlines implementation priorities for FY16/17 to inform the development of the Gauteng Skills Strategy 2 (2016 to 20-17) and the HIP2, in response to
Element 3 of the MSP2 Framework.
Table 8: MSP2- Element 3 Implementation Plan (Implement the Embedded Skills Development Methodology)
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
E3.1 Finalise GSS
Methodology for
Implementation
A Obtain approval on 19 Step Methodology in MSP2
approval process
Immediate
Term
Aug to Sep
2015
GDE /
GCRA /
OOP
GPG Consultation
& Approval
Process
B Finalise institutional requirements in OD plan for GCRA
and GSF, including role players and training needs (DHET
Training)
Short Term Oct 2015 to
Dec 2015
GCRA Internal Plus New
HRD Consulting
Contract
C Implement Institutional requirements in line with
Capacitation and Change Management Plan
As Above
MSP2 Final Report 68
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
D Develop a data repository that is a centralised platform for
data collection, regular update and extraction:
Identify data available for modelling supply, demand
and gaps
Agree on how to align and link the data repository to
other central databases (e.g. DHET, DOL, HEMIS,
NLRD, SETAs, PASTEL Payroll, etc.)
Statistical analysis to model data supply and demand
via Embedded Methodology
Short Term Oct 2015 to
Dec 2015
GCRA Internal Plus New
HRD Consulting
Contract
E Establish relationships and data linkages required to
resource Skills Methodology. Sign MoUs with key data
providers
Short Term Oct 2015 to
Dec 2015
GCRA Internal Plus New
Consulting
Contract
F Procure external capacity to assist GCRA and GSF to
undertake first revision of GSS1 in order to embed and
record methodology, data requirements and model
structure
Short Term Oct 2015 to
Dec 2015
GCRA Internal: New
Consulting
Contract
G Align GSF Methodology with DHET SIP Methodology
Negotiate, adjust and sign MoU with DHET regarding SIP
Skills Planning Requirements
Short Term Oct 2015 to
Dec 2015
GCRA,
OOP &
DHET
New MOU
E3.2 Implement
Embedded
Methodology for
GSS2 review
(2016 to 2017)
A Implement Step 1: Stakeholder consultation/workshop
(GSF Planning Committee) to:
Review each step and sub-step of the Embedded SD
Methodology
Operationalise the methodology with clear
accountability and timeframe to each step and sub-
step
Short Term Oct 2015 to
Dec 2015
GCRA GCRA & GSF
Skills Planning
Forum, supported
by Consulting team
MSP2 Final Report 69
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
B Implement step 2:
Develop Occupational Teams to refine the demand
model and to determine the skills gap
Consider needs based on mapping occupations back
to prioritised projects to determine timeframe of
demand per occupation
Prepare draft GSS2 with proposed actions and
implementing stakeholders – list actions based on top
and secondary priorities
Obtain confirmation from GSF/Premier – sign-off on GSS2
projects
Short Term Jan 2016 to
Mar 2016
GCRA –
As
Required
GCRA & GSF
Skills Planning
Forum, supported
by Consulting team
C Implement step 3:
Set up working groups for implementation
Strategic research to guide operationalisation of action
plans per working committee (collate best practices
and learnings globally/nationally; identify risks and
develop mitigation plan)
Identify actions not assigned to working groups –
create a committee to implement actions that are not
assigned
Develop M&E plan with M&E expert together with
each working committee, with outcomes aligned to the
4E framework
Short Term Jan 2016 to
Mar 2016
GCRA –
As
Required
GCRA & GSF
Skills Planning
Forum, supported
by Consulting team
D Implement step 4: review and revise GSS
Review progress towards outcomes for each working
group
Analyse accomplishments, challenges and non-
delivery
Medium Term
Y2
Y3
Y4
Y5
Review Cycle GCRA &
GDF
Planning
Team
GCRA & GSF
Skills Planning
Forum, supported
by Consulting team
(if / where required
for detailed
modelling)
MSP2 Final Report 70
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
Review success of working groups, sub-committees
and forums, based on delivery of outcomes for the
GSS1
Reflect on learnings of piloting the Embedded SD
Methodology (what works vs what doesn’t)
Prepare annual feedback report with proposed revisions
to the MSP2 methodology, working groups, etc. - to be
incorporated into the GSS2
E Determine changes needed to ensure alignment to MSP
elements
Develop Change Management Plan; obtain buy-in and
implement the plan
Recurring Recurring GCRA &
GSF
Planning
Team
TBA
6.5. Element 4: Sign-off and implementation of the GCR Skills Strategy (GSS) baseline (GSS1)
Table 9 outlines key implementation requirements to ensure that the GSS1 is implemented.
Table 9: MSP2- Element 4 Implementation Plan (GCR Skills Strategy Baseline)
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
E4.1 Confirm GSS
(2015 to 2020) is
linked to national,
provincial and
local development
priorities
A Consultations with key interest groups: Local Government,
OOP, DED, SALGA
Immediate
Term
Aug to Sep
2015
GDE /
GCRA /
OOP
GCRA Steercom
B Provide opportunity for stakeholders to comment on GSS1
Finalise GSS1
Immediate
Term
Aug to Sep
2015
GDE /
GCRA /
OOP
GCRA Steercom
C Update and approve of MSP2 and GSS. Immediate
Term
Sep to Oct
2015
OOP/
GDE /
GCRA
GPG Consultation
and Approval
Process
MSP2 Final Report 71
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
E4.2 MSP & GSS
Advocacy
A Identify private sector (organised business) and public
sector (sister Departments, National Departments and
Municipalities) whose Skills Plans must align to the MSP2
Immediate
Term
Aug to Sep
2015
GDE /
GCRA /
OOP
GCRA
B Develop a Communication Plan (Linked to GSF process)
to embed GSS Skills Priority Programmes in
Implementing Agents’ Training Strategies and Plans:
Define advocacy campaign developed for structured
stakeholder consultation, validation and discussion
around priorities of GSS1
Outcomes of consultation sessions minuted and
distributed; revisions built into GSS2 and HIP2
Immediate
Term
Aug to Sep
2015
GDE /
GCRA /
OOP
GCRA
C Develop and Implement active advocacy campaign of
engagement to popularise MSP2, outline GSS priorities
and align Skills Plans to the MSP2 through:
Document dissemination,
Presentations to key parties and existing forums
GSF Launch (see above)
Facilitate partnerships that will maximise
outcomes
Minute and distribute Action Minutes
Immediate
Term
Sep to Dec
2015
GCRA,
OOP,
GDE,
GDED,
GDID
Full Plan TBA
D Develop and sign MoUs with key public and private
stakeholders regarding MSP roles (GSF, Committees,
Subcommittees), key roles in GSS implementation;
actions regarding skills strategy and Priority Programme
areas.
Short Term Dec 2015
onwards
GCRA GPG Consultation
& Approval
Process
E4.3 A Confirm budgets for GSS Priority Programme
implementation
Short Term Dec 2015
onwards
GCRA GPG Consultation
& Approval
Process
MSP2 Final Report 72
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
Confirm
Resourcing of
GSS Priority
Programmes
B Confirm sources and quantum of Budgets required for
GSS Priority Programmes (across role players)
Short Term Dec 2015
onwards
GCRA GPG Consultation
& Approval
Process
C Identify funding mechanisms / funding partners and clarify
funding needs (in-kind contributions, equipment, money,
etc.)
Short Term Dec 2015
onwards
GCRA GPG Consultation
& Approval
Process
D Confirm budget for key projects versus shortfall: Actively
seek funding to maximise outputs and outcomes where
shortfall exists
6.6. Element 5: Clear monitoring and evaluation (M&E) framework
Table 10 below outlines implementation priorities in order to ensure Element 5 of the MSP2 framework is implemented.
Table 10: MSP2- Element 5 Implementation Plan (Monitoring & Evaluation Framework)
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
E4.4 Implement GSS
Programme M&E
Framework
A Develop a theory of change with a logic framework for
GSS:
Determine policy implementation outcomes to be
measured. Set out desired impact of prioritised
programmes
Clarify inputs, activities, outputs, intermediate and
long-term outcomes
Define Indicators, data sources and needs for
monitoring programme implementation
Immediate
Term
Sep to Dec
2015
OOP &
GCRA
GCRA
MSP2 Final Report 73
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
B Clarify monitoring and reporting framework
Set out reporting requirements (organisational /
Forums / OOP & GPG
Confirm time frames and level of detail
Immediate
Term
Jan to Apr
2015
GCRA GCRA
C Determine quantitative and qualitative data used to
measure outputs and outcomes - ensure alignment to the
4E framework.
Gain an understanding of the various data that will be
produced through reporting on projects
Confirm baseline data against which to measure
improvement and achievements
Determine data verification process – communicate to
implementing agents
Align the M&E Framework to specify outputs and
outcomes across the 4E Framework
Explore whether reporting can be built into MPAT and
what gaps may remain
Determine how to track progress across the province,
how often and how the M&E Framework fits into other
reporting cycles
Immediate
Term
Jan to Apr
2015
GCRA GCRA
D Define and design dashboard for GCR Skills data
collection, collation and presentation to stakeholders.
Determine the most suitable platform / medium for a skills
dashboard (website, etc.). Explore how to automate real-
time reporting to allow visibility of progress on outcomes
agreed upon by advisory and executory forums and
working groups
Determine capacity to develop the skills dashboard in-
house
Short Term Oct to Mar
2015
GDE /
GCRA /
OOP
GCRA
MSP2 Final Report 74
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
Develop TOR for dashboard development to close
gaps in-house
Procure Service Provider with clear scope of work and
deliverables
Define implementation approach and how stakeholder
access data
E Design Accountability systems in M&E Framework:
Indicators built into individual performance
agreements across various levels of management
(cascaded accountability) across National-, Provincial-
and Local structures
Compulsory key result areas are identified in
individual performance agreements
Detailed plan as an Annexures that specifies
indicators, descriptors, resources and timeframes for
deliverables per organisation
Immediate
Term
Jan to Apr
2015
GCRA GCRA
F Set out and communicate Monitoring and Evaluation
format and requirements: Ensure cascade of
responsibility:
Links to GSS Priority Programmes to statutory
reporting instruments
Set Targets based on GSS (Quantitative and
Qualitative). Design Priority Programme Tracking
system (Dashboard)
Short Term
Medium Term
Mar 2015
onwards
GCRA GCRA
E5.5 Operationalise,
Monitor and
Review Progress
of Implementation
A Each Department / Partner to establish, implement and
track a plan with indicators and timeframes
Short Term
Medium Term
Mar 2015
onwards
GCRA GCRA
B Regular Report on Achievements of targets with respect
to GSS Priority Programmes
Ongoing Mar 2015
onwards
GCRA GCRA
MSP2 Final Report 75
Ref Indicator Ref Actions Time Period Start & End RACI-
Who
RACI How
C Regular follow-up on required reporting:
Review and analyse reporting gaps, identify reporting
challenges
Measure progress against indicators set for the
MSP2, GSS1 and HIP1
Provide proposed actions for decision-making to guide
skills implementation
Ongoing Mar 2015
onwards
GCRA GCRA
D Evaluation Process:
Identify period for evaluations to be done to determine
specified outcomes of GSS
Explore role of CSIR, HSRC and QCTO as part of
evaluation process
Prepare TORs
Procure & Manage independent Service Providers
Periodic Mid-Term
Review
2017
E Change Management:
Determine changes needed to ensure alignment to
MSP elements
Develop Change Management Plan
Obtain buy-in and implement the plan
As Required
(Post-Review)
As Required
(2017)
OOP &
GCRA
TBA. Depending on
findings and
severity.
MSP2 Final Report 76
6.7. Element 6: Finalise implementation plan activities
Table 11 below outlines key implementation steps required to ensure that the implementation of MSP2 and GSS progresses quickly. This outlines the RACI
requirements (Responsibilities, Accountabilities, Consultation and Informed parties). Note some of these steps relate closely to the political approval process
outlined in Element 1.
Table 11: MSP2- Element 6 Implementation Plan (Finalise Implementation Plan)
Ref Indicator Ref Actions Time Period Start & End RACI-Who RACI How
E6.1 Finalise RACI A Stakeholder engagement / workshop to finalise
Implementation Plan and clearly define the list of
implementing agents and other relevant Departments /
Organisations to be listed as part of the RACI
Immediate
Term
1-2 Oct 2015 R: GCRA
C: All
Implementing
Agents
GCRA Function
E6.2 Contact list A Prepare and circulate contact list with key persons
involved in the GSS1 and HIP1
Immediate
Term
5-9 Oct 2015 R: GCRA
I: All
Implementing
Agents
E6.3 Sign-off and
approval
A Revise proposed HIP1
Obtain sign-off from GSF/Premier
5-15 Oct
2015
R: GSF
A: Premier
I: All
Implementing
Agents
GCRA Function
E6.4 Accessibility and
visibility
A Communicate the GSS and the High-Level
Implementation Plan; make it accessible
Communicate the M&E Framework and progress, make
progress accessible
16-21 Oct
2015
R: GCRA
I: All
Implementing
Agents
GCRA Function
E6.5 Drive
implementation
A Send calendar of event for the financial year to all
stakeholders, specifying tasks and accountability
22-26 Oct
2015
R: GCRA
I: All
Implementing
Agents
GCRA Function
E6.6 Streamline core
functions
A Clarify core activities and non-core activities of
implementing agents
22-26 Oct
2015
R: GCRA GCRA Function
MSP2 Final Report 77
Ref Indicator Ref Actions Time Period Start & End RACI-Who RACI How
Identify partners that can drive non-core functions of
implementing agents – formalise
I: All
Implementing
Agents
E6.7 Acknowledgement A Develop platform to communicate acknowledgements
Acknowledge implementing agents who achieve and
deliver on indicators and targets
26 Oct 2015
– 31 Mar
2016
R: All
Implementing
Agents
A: GCRA
I: All
Implementing
Agents
GCRA Function
MSP2 Final Report 78
7. Conclusion
This document sets out the key findings from the review of the first Master Skills Plan (MSP1), and
details proposals for the implementation of the second Master Skills Plan (MSP2). While MSP1 started
the process of skills planning for the Gauteng City Region, analysis of the MSP1 and its implementation
identified certain inherent difficulties in the development and implementation of MSP1, and created the
platform on which the second Master Skills Plan (MSP2) could be developed.
The proposed framework for the MSP2 starts from a different perspective. Most importantly, it identifies
the appropriate location of the skills planning function in the GCR, which is close to the development
and economic planning function of the GCR, reporting to the Office of the Premier. Recommendations
then set out the institutional structures required to support this revised location. Working from this
institutional framework, the methodology through which the future GCR Skills Strategy is developed
and regularly revised is set out, along with requirements for its monitoring, evaluation and
implementation.
The Gauteng Skills Strategy baseline is also set out, and identifies the key focus areas for skills
development in the GCR over the six-year period of the MSP2. These focus areas are intended to
provide structure and guidance to all implementers of skills to ensure that provincial efforts are
coordinated towards meeting the most important skills needs in the province.
The MSP2 will require a fundamental shift in the approach to skills planning in the GCR, as well as to
the structures through which skills planning is undertaken, and how skills development programmes
are identified, developed and implemented by all skills implementing agents. Given the limited success
achieved with the MSP1, this shift in approach is deemed necessary to ensure that the GCR can
identify, develop and deploy the skills it requires to fuel its economic growth trajectory. It is only through
ensuring skills are available to support economic and social development goals that the GCR will be
able to achieve the bold targets set out in the Transformation, Modernisation and Reindustrialisation
(TMR) strategy.
Most importantly, MSP2 is based on the premise of an on-going process of engagement, modelling and
discussion around the skills needs of the GCR into the future. In this way, skills development in the
province can dynamically adapt to changes in the economy, technological change and shifts in
development priorities. It is also envisaged that the skills planning and implementation methodology will
improve each time it is repeated.