EPWP Phase III Enterprise Development Policy Framework

Presentation on EPWP Phase III
Enterprise Development Policy Framework
Frances Baard Small Business Week 2014
Content of the Presentation
Purpose of the presentation
EPWP Policy Context
EPWP Phase 3 Framework
EPWP Target Beneficiaries
Framework for developing the policy
Purpose of Presentation
To explain the draft framework that has been developed by
NDPW for the implementation of the enterprise development
policy. This framework was endorsed by EPWP Provincial
To contextualise the importance of developing the policy.
To indicate the support available to municipalities.
To highlight the expectations on municipalities.
Policy Context for EPWP Phase III
 The NDP outlines two key objectives for EPWP in that context namely:
• Contribute to reducing unemployment by creating temporary
employment by being responsive to the number of unemployed. “ The
public employment programmes should target the creation of 2 million
opportunities annually by 2020 or earlier, if possible”……. “The main
opportunities will lie in community based services and the roll out of
social sector initiatives” (Chapter 3)
• Contribute to social protection for the unemployed by providing them
with income support (Chapter 11)
 In the New Growth Path, EPWP is seen as an important contributor in
Jobs Driver 1 (Infrastructure Development) through increasing the
labour intensity of government infrastructure investments and Jobs
Driver 4 (Social Capital) through expansion of the Community Work
Objective of EPWP Phase III
For the EPWP to be effective and achieve the vision set out in the NDP it
is proposed that the EPWP has a clear and limited mandate.
“To provide work opportunities and income support to
poor and unemployed people through the labourintensive delivery of public and community assets and
services, thereby contributing to development.”
EPWP Phase III Principles
Adherence to the EPWP Minimum wage
and employment conditions under the
Ministerial Determination (R75,10)
• The EPWP Ministerial determination of 2012 sets out a minimum
wage for the EPWP and the EPWP must seek to achieve full
compliance with this determination. There is currently substantial
non-compliance with the minimum wage.
Selection of workers based on a clearly
defined process and defined criteria
• The selection of each worker should be done on a clear set of
criteria to minimize patronage and abuse during selection and
ensure target group benefits. The selection should also happen in
accordance with clear transparent and fair procedures.
Work provides or enhances public
goods and community services
• The work output of each EPWP project should contribute to
enhancing public goods or community services.
Minimum labour intensity appropriate to
• A minimum labour-intensity benchmark appropriate to each sector
should be set as sectors differ too much to apply a common
standard across all sectors. Furthermore programmes within each
sector would also be encouraged to set their own benchmarks.
Targeting in the EPWP Phase III
 Targeting of vulnerable groups
Phase II Targets
Phase III Targets
Youth between 16
and 35
Persons with
The 2013 National Youth Employment Accord advocates for a Youth
target of 80% for Public Employment Programmes. The EPWP Phase 3
Youth Target is 55%. This will be progressively increased towards 80%
for new entrants into the EPWP.
Targeting of Beneficiaries/Participants
in the EPWP Phase III
 The EPWP will target the poor and unemployed through a combination of
geographical and community-based targeting, as well as self-targeting
(through the wage rate).
 Targeting to be done through a combination of:
Geographical Targeting: Focus on poor communities and those with
high number of unemployed
Self-Targeting: Through the EPWP Minimum wage rate
Community Targeting: Community selects those most in need
through and based on transparent criteria and process
Institutional Arrangements for EPWP Phase III
To achieve better synergy between our wide range of PEPs and other poverty
alleviation, employment, enterprise development and skills development initiatives,
Parliament adopted that:
 A Presidential Public Employment Coordination Committee to address Jobs and
Poverty issues be established (Announced at the State of the Nation Address).
 The Commission is chaired by the Deputy President and meets quarterly.
 It is composed of relevant Ministers, nine Premiers and SALGA.
 It is supported by a Political Management Committee of relevant ministers, and a
Political Secretariat of relevant Ministers and Deputy Ministers.
 The Commission has two major work streams, PEPs and Employment, and PEPs
and Sustainable Livelihoods.
 Its technical secretariat is the DPW’s current EPWP branch, working closely with
other relevant line department branches.
Key Change in Phase III
 Cabinet approved the establishment of the Presidential Public Employment
Coordinating Commission (PPECC) to coordinate and report on public
employment programmes with EPWP branch as Secretariat.
 Introduction of core universal principles.
 Adherence to the EPWP Minimum wage and employment conditions under the Ministerial
 Selection of workers based on a clearly defined process and defined criteria
 Work provides or enhances public goods and community services
 Minimum labour intensity appropriate to sector
 Increased community participation for more visibility and ownership in poor
 Increase scope of infrastructure maintenance.
 More emphasis on monitoring of assets created and their impact on
Legislative Framework
 The National Small Business Act, No. 102 of 1996 as
 White Paper on National Strategy for the
Development and Promotion of Small Business in
South Africa, 1995;
Cooperative Amendment Act No. 6 of 2013;
 Integrated Strategy on the Promotion of
Entrepreneurship and Small Enterprises; and
 EPWP related documents.
Intergrated Youth Development Strategy 2012
ED Approach
 Ensuring the availability of a wide array of EPWP capacity
training programmes;
 Ensuring a capacitated team of EPWP Enterprise Managers
that are trained as trainers and mentors within municipalities;
 Engaging Public Bodies to identify training capacity needs;
 Complying with a Funded Annual Enterprise Development
Business Plan and Calendar;
 Enterprise Developmental Files and Diagnostic Assessments
as standard practice;
 Linkages with the DTI, NYDA and respective agencies like
Eligibility Criteria
 Programme must be an EPWP Programme and the specific
project under the Programme must have minimum duration
of 12 months.
 The programme must provide technical and project
management support.
 Programme must be reported in any of the EPWP reporting
systems aligned to a project number.
 SMMEs supported should have employment contracts with
their workers.
 Enterprise Development support has to be applied for
annually, unless EPWP Enterprise Development has a
partnership agreement with the Programme
ED Tools
 Diagnostic assessments
 Capacity building:
compliance requirements;
business plan and profile development;
human resource and staff management;
financial matters such as banking, access to finance and insurance;
Market opportunity such as how to access markets, tendering, registering on
supplier databases;
 Inventory matters such as how to procure materials and equipment and how
to manage stock levels; and
 business administration, which includes record keeping and basic contract
 Coaching and mentoring.
 Exploring the idea of an SMME fund
Institutional Arrangement
Each municipality to establish an Enterprise
Development Management Forum/ Committee:
 Participants: All programmes supported by ED i.e. Programme
Coordination; Lead Sector Departments of all EPWP sectors;
Provincial Enterprise Development Departments; and NDPW ED
 Role: (1) Report quarterly on Enterprise Development interventions
ito annual plan.
At National level, ED reports performance to
National sector meetings, the NCC and NT.
Applicability and Revision
 Policy is applicable to all EPWP initiatives that have ED
 Wide consultation to include:
National, Provincial and Local spheres,
EPWP Sectors;
Selected programmes;
Other stakeholders and partners: EDD, NT, DTI, etc.
 Applicable during Phase III and will be revised as and when
the needed.
Municipal Technical support
• The Municipal Technical Support programme will continue to
focus on providing assistance to municipalities to use labourintensive methods as they implement their projects.
• The sub-programme will work on institutionalisation of EPWP
approaches in municipalities by ensuring that Tender
documents, consultants and contractors are aligned to the
requirements of EPWP.
• Training of officials and consultants in labour-intensive
methods will continue to be carried out. It is critical to build
capacity at municipal level to implement projects labourintensively.
• The programme continues to focus on the training of contractors and
supervisors in labour-intensive methods of construction.
• Increased emphasis is placed on ensuring that the projects implemented
through Vuk’uphile contractors are model LI projects, with high labour
intensities so that they can demonstrate the use of these methods.
• A stronger focus is on using Vuk’uphile to build the capacity of public
bodies to implement EPWP projects in future.
• Continue implementing improvements:
– Practical training on LI construction in a risk free environment so that
they are not pre-occupied with managing overall project risk and
ensuring profitability, while they are still learning about LI construction
– Keep project below R 10 million
– Build commitment of Public Bodies to LIC
 Endorsement of Policy
 The policy must be endorsed by the Council to ensure that it is binding
and everybody comply.
 Review of the Policy
The policy will be reviewed after 2 years or as and when
Development Corridors
TSS Contact Details
• Tshiamo Dichabe
• Mobile: +2783 878 5580
• [email protected]
Ke a leboga!!

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