JOBS FUND PRESENTATION

Presenter: Kwezi DazanaJobs Fund07 Aug 2012

BACKGROUND OF THE JOBS FUND

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The Fund was announced by the President during the State of the Nation Address in Feb 2011

The Minister launched the Jobs Fund on the 7th June 2011 and appointed DBSA as an implementing agent

Intention of the Jobs Fund is to partner with projects that will results in the creation of new sustainable jobs.

The Jobs Fund issues grant funding and in return expects sustainable jobs to be created.

WHAT THE JOBS FUND WILL NOT FUND

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Bail out of distressed companies

Start-up companies and initiatives

Training activities that are not linked to job placement

Initiatives with huge capital investment but minimal job creation

potential

Loans or Advances of cash

Double Dipping Funding

FOCUS AREAS OF THE JOBS FUND

Enterprise Development • Investments in product development, local procurement, marketing support,

equipment upgrading or enterprise franchisingInfrastructure Investment

• Local infrastructure investment projects such as light manufacturing enterprise zones, local market and business hub facilities, critical transport and communication links and upgrading of infrastructure servicesSupport for Work Seekers

• Support programmes with a particular focus on unemployed young people such as job search projects, training activities and support for career guidance and placement servicesInstitutional Capacity Building

• Projects aimed at strengthening institutions through which jobs are created

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TARGETED BENEFICIARIES

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Public Sector

Municipalities

Government departments

Public entities

Private Sector Business enterprises

Non Government Sector NGOs CBOS

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ALLOCATIONS AS PER MTEF

Year 1 R2,0bn

Year 2 R4,5bn

Year 3 R2,5bn

Total R9bn

GUIDING PRINCIPLES OF THE JOBS FUND

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• Targeting youth unemployment, skills and enterprise development• Partners with existing innovative approaches to employment creation • Partners with intermediaries for the support of SMME development• Provides once-off grants per project only repayable if utilised

inappropriately • Support projects on a co-financing ratio of 1:1 • Focus on developmental return rather than financial return• Focuses on project risk (viability of the project) and not credit risk

CRITERIA FOR PROJECT APPROVAL

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Eligibility Impact Due diligence Track record Private sector led/linkages Commercial basis No outstanding legal

decisions Matched funding

Potential for job creation Innovation Additionality Sustainability Capacity to implement Contribution to economic

development

APPLICATION PROCESS

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Approval Phase

1. Investment Committee Approval

Submission of Appraisal report to the Investment Committee

No Reject/Amend

Yes Approve

Investment Committee

Approval Phase

1. Investment Committee Approval

Submission of Appraisal report to the Investment Committee

No Reject/Amend

Yes Approve

Investment Committee

Pre Approval Phase

1.Initial screeningBusiness plan/ proposal

2. Evaluate against Jobs Fund Criteria

No Reject

Yes Engage

3.Preparation of Appraisal Report

Expert Team of Assessors

Pre Approval Phase

1.Initial screeningBusiness plan/ proposal

2. Evaluate against Jobs Fund Criteria

No Reject

Yes Engage

3.Preparation of Appraisal Report

Expert Team of Assessors

Post Approval Phase

1. Implementation Implementation

plan Sign off

Agreement Disbursement of

funds

2.Monitoring/ Supervision

Project ManagementMonitoringReporting

3. ExitEvaluateClose Out Report

DBSA

Post Approval Phase

1. Implementation Implementation

plan Sign off

Agreement Disbursement of

funds

2.Monitoring/ Supervision

Project ManagementMonitoringReporting

3. ExitEvaluateClose Out Report

DBSA

Request for Proposals

Request for Proposals

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REGIONAL BREAKDOWN OF APPLICATIONS 1ST WINDOW

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LESSONS LEARNT FROM CALL FOR PROPOSALS

• Eligibility– No co-funding– Minimum funding requirements not met

• Competitive fund– In First Call for Proposals 2,651 applications worth R320 billion

competing for R2 billion • Linkage to jobs

– No link between funding and jobs to be created• Funding models

– Project finance or balance sheet funding not job related

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SECOND CALL FOR PROPOSALS CLOSED IN MAY

• All applications were submitted electronically i.e. no manual applications

• Each application – gets unique reference number• Develop Competitive Analysis Report (CAR)• Develop Concept note and CAR on projects to Committees• Investment Committee(IC) determines cut-off on CAR and

concepts to full appraisal• Full due diligence and full appraisal• Appraisal to committees, IC approves or rejects• Contracting and implementation

REGIONAL BREAKDOWN OF APPLICATIONS FROM 2ND WINDOW

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Window

EC FS GTG KZN LIM MP NC NW WCGrand Total

ED 49 17 186 80 14 23 4 17 97 487

ICB 7 8 51 10 5 4 5 23 113

INF 25 2 41 24 7 7 2 11 30 149

WORKS 11 5 92 23 6 6 4 48 195Grand Total 92 32 370 137 32 40 6 37 198 944

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FRAMEWORK FOR PROJECT PIPELINE

Project origination per Province– Extend Jobs Fund footprint – Ensure a more balanced Provincial breakdown– Allows easier access to clients during appraisal

Preparations to date– Jobs Fund has partners with DFI’s in all Provinces and currently using their

offices for appraisal and meeting applicants– Jobs Fund teams structured to originate per Province

FRAMEWORK FOR PROJECT PIPELINE CONTINUED

• Introduce the Jobs Fund and its criteria to prospective businesses• Establish networks• Share lessons learnt• Build strong relations and linkages in all provinces• Assist and guide prospective applicants (e.g. SMME’s)• Structure projects in preparation for the next window• Prepare for third call of proposals which is anticipated to be towards the end of

the year

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Thank You086 100 32 72

Info@jobsfund.org.zaWeb: www.jobsfund.org.za

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