THE JOBS FUND 19 July 2011
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THE JOBS FUND 19 July 2011. Background of the Jobs Fund. The Fund was announced by the President during the State of the Nation Address The Jobs Fund is aimed at piloting new and upscaling existing innovative approaches to employment creation - PowerPoint PPT Presentation
Transcript of THE JOBS FUND 19 July 2011
Siyenza Manje Presentation
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THE JOBS FUND
19 July 2011
1Background of the Jobs Fund2The Fund was announced by the President during the State of the Nation Address The Jobs Fund is aimed at piloting new and upscaling existing innovative approaches to employment creationThe Funds activities include planning, financing and oversight of implementation of job creation projectsThe Minister of Finance appointed DBSA as an implementing agentThe Minister launched the Fund on the 7th June 2011
2What the Jobs Fund will not fund3Bail out of distressed companies
Start-up companies and initiatives
Training activities that are not linked to placement
Initiatives with huge capital investment but minimal job creation potential.
3Focus Areas of the Jobs Fund4Enterprise 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 created4Targeted Sponsors/Partners5Public Sector MunicipalitiesGovernment departmentsPublic entitiesPrivate Sector Business enterprisesNon Government Sector NGOsCBOS
5Allocations as per MTEF6Year 1R2,0bnYear 2R3,0bnYear 3R4,0bnTotal R9bn
6Preliminary Targets for the 3 years 7Expenditure(R mil)Co-Funding(R mil)Number of Projects Sustainable jobs created Net income added (Rm a year)Enterprise Development 3 5007 000700100 0001 500Infrastructure Investment4 0002 00025020 000400Work-Seeker Support 1 00050020020 000400Institutional Development50050020010 000200Total R9 000mR10 000m1 350150 000R2 500m
Guiding Principles of the Jobs Fund8Targeting youth unemployment, skills and enterprise developmentPilot new and upscale existing innovative approaches to employment creation The Jobs Fund will provide once-off grants only repayable if utilised inappropriately Support projects on co-financing ratio of 1:1 Focus on developmental return rather than financial returnThe approach focuses on project risk (viability of the project) and not credit risk
8Criteria for Project Approval 9Eligibility Impact Due diligenceTrack recordPrivate sector led/linkages Commercial basisNo outstanding legal decisionsMatched fundingPotential for job creation Innovation Additionality Sustainability Capacity to implement Contribution to economic development
9Application Process10Approval Phase
1. Investment Committee Approval
Submission of Appraisal report to the Investment Committee
No Reject/AmendYes Approve
Investment CommitteePre Approval Phase
Initial screeningBusiness plan/ proposal2. Evaluate against Jobs Fund Criteria
No RejectYes Engage
Preparation of Appraisal Report
Expert Team of AssessorsPost Approval Phase
1. ImplementationImplementation planSign off AgreementDisbursement of funds
Monitoring/ SupervisionProject ManagementMonitoringReporting
. ExitEvaluateClose Out Report
DBSARequest for Proposals
1st Request for ProposalsApril June
2nd Request for ProposalsJuly Sept
3rd Request for ProposalsOct- Dec
4th Request for Proposals Jan- March
10Governance & Operating Structures11Oversight RoleExecutive RoleCABINETMINCOMBUDAdvisory CommitteeJOBS FUND INVESTMENT COMMITTEE DBSA BOARDDF Technical Evaluation CommitteeDF BOARDMINISTER OF FINANCE
11Jobs Fund Committees and TORs12
12Strategy to Create Projects PipelineCall for proposal through Jobs Fund website and media Utilisation of DBSA investment and implementation footprintThe DBSA will identify existing projects that are scalable/replicable for support with regard to preparation and submission for consideration by Jobs Fund committeesContribution by DBSA Intermediaries and other DFIsConducting country wide road-shows with different sector players to facilitate partnerships and pipeline buildingDeploy technical expertise to support project development.
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13ConclusionThe thrust of each application or proposal must reflect and demonstrate job creation within a funding period (funding year).
Ownership of the job creation initiative by the applicant is very fundamental to the approval.
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14For detailed information please use the following mediums:A Share Call line - 0861 003 272A website address - www.jobsfund.org.za A dedicated enquiry email - [email protected]
THANK YOU
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