National Youth Development Agency

Presentation to the The Portfolio Committee on Women, Youth, Children and People with Disabilities

Cape Town21 April 2010

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Vision

Integrated and mainstreamed youth development in all organs of state, private sector and civil society for sustainable livelihoods

Purpose

To mainstream and integrate youth development for sustainable livelihoods

Nature of Business

To initiate, facilitate, implement, coordinate and monitor youth development interventions aimed at reducing youth unemployment and promoting social cohesion

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NYDA: Key Performance Area’s

1. Economic Participation To enhance the participation of young people in the economy through targeted and integrated programmes and support for social enterprises that focus on job development and placement, and other programmes that support youth development, including income-generating activities.

2. Education & Skills Development

To promote access to quality education and skills to both in-school and out of school youth.

3. National Youth Service To ensure the engagement of youth in meaningful activities that benefit their communities whilst developing their abilities and various other facets of their lives through learning and service, create jobs and foster patriotism.

4. Social Cohesion To advance and deepen the engagement of youth in activities that (1) build their social capital and networks and strengthen the relationships that bind people and communities together; (2) assist them in reaching their personal goals and developing their full capacity; and (3) build awareness of themselves and their rights and responsibilities.

5. Information & Communications

To ensure access for youth to information about various interventions aimed at improving the living conditions of young people, including information and career guidance services to young people.

6. Policy, Lobby & Advocacy To create platforms and other social dialogue forums for youth by which they can engage the State, civil society and other social partners to develop, lobby and advocate for policies and interventions aimed at supporting youth development-efforts and integrating and mainstreaming youth development.

7. Research, Monitoring & Evaluation

To build a body of research knowledge and best practice in the youth development sector that can be used to inform government, business and other social partners about ways they can contribute to youth development.

8. Effective & Efficient Management of Resources

To set efficient and effective management processes that will ensure that resources are managed optimally through effective financial management process, risk management, legal, improved business processes and the development of appropriate controls.

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2010-2011 STRATEGY Strategic Focus 2010/2011

Establishment of NYDA Provincial Structures in line with NYDA mandate to facilitate the mainstreaming of Youth Development across all spheres of government

Establishment of 9 NYDA Provincial Advisory Boards (PAB’s) and Monitoring of NYDA Provincial Structures

Defining the implementation of the regulatory role of the NYDA with respect to Section 19 of the NYDA act no 54, 2008

Increase Direct service delivery of NYDA non transactional products and Services to the youth i.e. Career Guidance, Mentorship, Business Opportunities Support Services ( BOSS)

Finalisation of Integrated Youth Development Strategy ( IYDS) and implementation thereof

Project Implementation to focus on rural areas

Scoping and Fundraising for organisational key projects (see section 7)

Establishment of the Social Entrepreneurship Fund

Fly the flag campaign

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Key Deliverables 2010/201

This section presents deliverables the NYDA should be measured against during financial year 2010/2011. This section forms the basis for all NYDA reporting

KEY PERFORMANCE AREA KEY PERFORMANCE INDICATOR 2010/2011 TARGET

1.ECONOMIC PARTICIPATION

Number of jobs created through NYDA programmes 17,888

Number of new young entrepreneurs businesses created 500

Number of young entrepreneurs provided with Mentorship 6,000

Entrepreneurs Issued with Business Consultancy Vouchers 700

Value of loans issued to young entrepreneurs 11,000,000

Number of loans issued to young entrepreneurs 8,150

Value of loans disbursed to young entrepreneurs 10,000,000

No. of communities successfully mobilised and linked to other opportunities

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1.EDUCATION AND SKILLS DEVELOPMENT

Number of young people enrolled in Entrepreneurship Education programmes

30,150

Number of youths provided with job preparedness training programmes

15,000

Number of young people provided with Career Guidance 800,00

Number of young people enrolled to re-write Matric 2,000

Number of young people enrolled in YouthBuild South Africa projects 100

Number of young people enrolled in Life Skills (Out of School) programmes

10,000

1.NATIONAL YOUTH SERVICE

Number of youth enrolled in National Youth Service Programme 60 000

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Cont…1.SOCIAL COHESION Develop comprehensive programme model for social cohesion Model developed, adopted and used by

NYDA

Number of volunteers recruited to contribute to World Cup success through volunteer efforts

15,000

Conduct patriotism Campaigns for young people 9 provinces covered

Establish NYDA Alumni Society 10 structures

1.INFORMATION AND COMMUNICATIONS

Number of NYDA information dissemination and access points in all municipalities (Full Service YACS & YAC Points

134

Number of youth accessing information through NYDA service delivery access points

1.POLICY, LOBBY AND ADVOCACY

Contribute to policy and legislation formulation related to youth development.

-11 written policy & legislation submissions;3 public hearings conducted; -20 parliamentary portfolio meetings

Popularise the African Youth Charter and National Youth Policy. -500 000 copies printed and distributed.

Lobby private sector and public sector to implement NYS. -18 Gov Departments; 7 Private companies;10 Municipalities; 5 partnerships with Civil structures

Mobilisation of young people to participate in democratic processes.

-Participation of Youth in IDP processes in 10 municipalities.

Finalise and launch the Integrated Youth Development Strategy. -Approval of IYDS by cabinet- 9 provincial workshops on IYDS

Integrate and mainstream youth development in the public sector

5 new Youth Directorates; 10 municipalities.-4 Inter-departmental youth task team meetings

Contribute to policy and legislation formulation related to youth development.

-11 written policy & legislation submissions; 3 public hearings conducted and 20 parliamentary portfolio meetings

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Cont…

1.RESEARCH, MONITORING AND EVALUATION

Conduct status of youth survey to inform youth development interventions, policy, regulations and strategies

1 Survey report

Conduct entrepreneurships surveys. 2 surveys reports

Conduct impact evaluation study on economic participation 1 Evaluation report

Conduct impact evaluation on the National Youth Service programme

1 Evaluation report

Develop framework, indicators, tools, systems procedures and guidelines for monitoring youth development interventions within NYDA, public sector and private sector

Approved framework with guidelines and a list of indicators

Disseminate research results through various KM distribution mechanisms

3 discussion sessions

Produce and publish Youth Enterprise Journal 2 Issues

1.EFFECTIVE AND EFFICIENT MANAGEMENT RESOURCES

Measure client satisfaction through quarterly surveys 90% satisfaction survey

Minimised Portfolio At Risk (PAR) for SME & Micro loans SME Loans <10%Micro Loans <20%

Effective Information Technology and information management System

Integrated Information Technology System

Leverage funding from partnerships and sponsorships Partnership agreements signed

Training and capacity building for staff to effectively and efficiently deliver services

70% of all staff

Conduct internal and external audits to minimize risks All audits conducted with no qualification

Produce corporate reports to relevant stake holders (Quarterly and Annual reports)

4 Quarterly reports submitted to The Office of The Presidency1 annual report submitted to Parliament

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NYDA KEY PROJECTS Linking Projects to NYDA KPA’s and Government Priorities

Project Name KPA Target

Matric re-write Education and Skills Development2 000 2 000

Furniture Making Project Economic Participation, Education and Skills Development 1 000

National Youth Service National Youth Service 160 000

Rural Development Project• Co operatives• Abattoir in

Mtubatuba

Skills and Development and Economic Participation 86 cooperatives

Tomato growing and Processing

(Eastern Cape)

Skills and Development and Economic Participation 3,000 Job

Student Loans Education and Skills Development Scoping under way

NYDA contact Centre Information provision and communication Scoping under way

Outreach Information provision and communication Scoping under way

Ride to school campaign Education and Skills Development 100

Youth Villages Social Cohesion Scoping under way

Youth & Radio Channel Information provision and communicationSocial Cohesion

21,000,000

ICT Communication Centres Information provision and communicationSocial Cohesion

4,000 communities

SAFA Project Youth Mass Mobilisation 27 000

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BudgetBackground

NYDA 2010/11 MTEF submission =R930m including the baselines of the former entities amounting to R370m, the baseline of the Provincial Youth Commission amounting to R177m and additional funding amounting to R383m.

Amount Allocated R370m as according to the budget vote

Due diligence conducted by National Treasury on both UYF and NYC recommendation that for NYDA to operate optimally, it has to be capitalized by R600m on an annual basis.

Current allocation 39% less than recommendation of due diligence.

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Cont…

Overall the projected income for the next financial year amounts to R415m

taking into account and the projects loan income of R45m.

This income will settle first the contractual commitments carried forward to

2010/11 financial year amounting to R402m.

NYDA remains with a surplus of R 13,775,310 available for delivery of product

and services to young people (transactional nature e.g. SME and Micro Loans,

Business Consultancy Support Voucher Programme, National Youth Service

Programme etc which are considered as fast moving products and services of the

Agency).

With the available resources these clearly cannot be implemented.

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CASH AND UNDRAWN COMMITMENTS FORECAST TO MARCH 2010

CASH FLOW Amount UNDRAWN PROJECTS COMMITMENTS Amount

Opening Cash Balance( Post merger process) 6,526,173

Opening Undrawn Projects Commitments (Post merger process) 274,942,310

Less Expenditure 218,498,738 Less: Project Disbursements 52,838,723

Acquisition of Assets 17,588,941 Skills Development and Transfer 19,990,906

Project disbursements 133,196,360 Service Delivery Channel 5,671,112

On-Lending net of Recovery -9,153,276 Enterprise Finance 6,514,970

Operating expenses (Dep Incl) 76,866,714 Business Development Services 20,661,735

Add: Income 211,608,893Add: Projects Commitments net of reversals) -120,186,432

Cash Injection 164,925,000 Skills Development and Transfer -24,997,398

Vat refund 29,750,000 Service Delivery Channel -4,858,077

interest on loans 6,067,713 Enterprise Finance -88,941,296

Depreciation 10,866,180 Business Development Services -1,389,661

Closing balance before interest -363,672

Interest on bank 1,237,632

Closing balance after interest 873,961Undrawn Commitment as at 31 March 2010 101,917,155

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CASH RESOURCES ALLOCATION FOR 2010/11ALLOCATION OF CASH RESOURCES FOR FINANCIAL YEAR ENDING 31 MARCH 2011 COMMENTARY Amount

Cash on hand as at 31st March 2010 873,961

NYDA MTEF Allocation for 2010/11 369,973,000

Loan Income 45,000,000

TOTAL INCOME This represent the commitments to products and services offered directly to young people. These projects includes National Youth Services, Entrepreneurship Education Projects and Loan and investments to finance business run by young people

415,846,961

Less: Undrawn Commitment as at 31 March 2010 101,917,155

313,929,806

Less: Fixed Costs and Unavoidable Expenses 247,386,205

Salaries and Wages These costs represent cost to run the current NYDA infrastructure through the country. The salaries and wages is based on the staff compliment of 390 all transferred from both former entities.

145,757,901

Overheads 16,831,662

Direct Operating Costs 84,796,642

Currently NYDA is implementing a number of ICT related system e.g. loan management systems, voucher management system, Customer relationship management systems

66,543,601

Less: Committed Capital Expenditure 15,922,383

50,621,218

Less: Joint Venture Commitments (FNB/NYDA Progress Fund) 36,845,908

Cash Available for Programme Implementation in 2010/11 13,775,310

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THANK YOU!!!!