PRESENTATION TO THE ENERGY PORTFOLIO COMMITTEE ON 6 NOVEMBER 2012

OUTLINE

• CHIETA’s mandate and scope

• CHIETA’s Board and Chambers

• The National Development Plan 2030

• The Strategic Infrastructure Projects (SIPS)

• CHIETA’s role in skills development

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

CHIETA’S MANDATE AND SCOPE

• CHIETA strives towards world class education and training within the chemical sector of SA• We contribute to sustainable development through facilitating the provision of skills for growth in the Chemical Sector• CHIETA is organised into nine sub sectors/economy based constituencies namely Base Chemicals, Explosives, Fast Moving Consumer goods, Fertilizers, Glass, Petroleum, Pharmaceuticals, Speciality Chemicals and Surface Coatings

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

CHIETA’S BOARD AND CHAMBERS

• Five organised labour constituencies namely Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU), South African Chemical Workers Union (SACWU),Solidarity,United Association of South Africa(UASA) and General Industries Workers Union of SA (Giwusa)•Four Government Departments namely DOE,DTI, Science and Technology and Environmental affairs•Stakeholder driven organisation with Chambers one being Petroleum and base chemicals to drive Research and Skills planning in the context of the Sector Skills plan for the Chemical Sector

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

NATIONAL DEVELOPMENT PLAN 2030

The NDP issues pertinent to the chemical sector:•Vision is a firm trajectory of growth, eliminate poverty and reduce inequality•Reduce SAs over reliance on coal for energy and ensure a greater mix of energy sources for future demand (also as per Integrated Resource Plan) •Explore gas as an alternative to energy production in order to cut SAs carbon intensity and greenhouse gas emissions•Explore the shale gas potential of the Karoo

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

NATIONAL DEVELOPMENT PLAN 2030

• Exploration for and exploitation of newly discovered off-shore gas resources along the West Coast

• The need to invest in a liquefied natural gas infrastructure

• Upgrading of existing refineries to migrate to international clean fuel standards

• Consideration of building a new refinery to reduce dependence on the import of refined products

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

The Catalyst for Skills, Economic Growth and Employability

CHALLENGES / NEEDS WITHIN the South African Petroleum Industries Association (SAPIA)

•To explore gas as an alternative to energy production in order to cut South Africa’s carbon intensity and greenhouse gas emissions

•Exploration of the shale gas potential of the Karoo

•Exploration for and exploitation of newly discovered off-shore gas resources along the West Coast

•The need to invest in a liquefied natural gas infra-structure

•The need to build a new refinery to produce dependence on the import of refined products

STRATEGIC INFRASTRUCTURE PROJECTS

• 18 Strategic infrastructure projects (SIPs)• Support chemical sector related skills

development in relevant SIPs as the process unfolds

Key SIPs:• Mathombo refinery (Coega)

– SIP 3: South East node and corridor development

• Energy related SIPs

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

CHIETA’S APPROACH• Sector Skills Plan including sub-sectors• Support national and sectoral imperatives

Work in partnership with government, industry stakeholders, other SETAs and education and training providers to identify skills needs (current and future) and address them– Meetings with Department of Energy to confirm training needs

– Support the Department of Higher Education and Training coordinated process of development of SIP skills plans

– Partnership “ An integrated approach to the skills requirements of SAs petrochemical industry” with SAPIA, DoE, CHIETA, Wits etc

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

SDL levy income per sub sector

0.0010,000,000.00

20,000,000.0030,000,000.0040,000,000.0050,000,000.00

60,000,000.0070,000,000.0080,000,000.00

90,000,000.00100,000,000.00

Sub sector

Ran

ds

SDL levyincome

Number of WSP submitted per Subsector

55 26 19

003

35 19 11

16 6 4

13 2 11

49 15 21

32 25 28

96 60 20

36 22 12

0 20 40 60 80 100 120 140 160 180

Base Chemicals

Explosives

FMCG

Fertilisers

Glass

Petroleum

Pharmaceuticals

Specialty Chemicals

Surface Coatings

No. of WSPs Submitted per Subsector

Employees per Sub sector according to Company Size

0

5000

10000

15000

20000

25000

30000

35000

40000

No

. o

f E

mp

loye

es

Small Companies Medium Companies Large Companies

GEOGRAPHIC LOCATION OF LEVY PAYERS BY SUB-SECTOR

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

THE NATIONAL EDUCATIONAL PICTURE

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

48.5

30.419.9

0.0

10.0

20.0

30.0

40.0

50.0

No Matric Matric Post-Matric

13 million workers

The low educational levels of our human resources and the high unemployment

in the country are the main contributors to the poor competitiveness rating.

Figures to be updated with Census 2011

Wo

rld C

om

petitive

ness R

epo

rt 201

2

1

51

50 South Africa

WSP DATA - EDUCATION PROFILE OF CHEMICAL SECTOR

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

30.8

12.5

26.2 30.5

0.0

10.0

20.0

30.0

40.0

Unknown No Matric Matric Post-Matric

116 826 workers

NUMBER OF DESIGNATED TRADES BY SUB-SECTOR

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

Group Occupations CHIETA interventions

Craft & related trades Mechanical Fitter, Boilermaker, Welder, Automotive Motor

Mechanic, Instrument Mechanician, Refrigeration Mechanic, Electrician, Fitter and Turner

Artisan development programmesLearnerships

Professionals Retail Pharmacist , Sales Representative (Medical and Pharmaceutical Products), Industrial Pharmacist, Sales Representative / Salesman (Industrial Products), Medical Scientist, Mechanical Engineer, Industrial Engineering Technologist, Chemical Engineer, Industrial EngineerChemist, Marketing Practitioner, Geologist, Electrical Engineer

BursariesWorkplace experienceInternshipsGraduate development

Technicians & associate professionals

Chemistry Technician, Chemical Plant Controller, Draughtsperson

LearnershipsBursaries

Plant & machine operators

Chemical Production Machine OperatorGlass Production Machine Operator

LearnershipsSkills programmes

CHIETA SCARCE & CRITICAL SKILLS

Note: Trade-related occupations constitute nearly 50% of scarce skills & Professionals constitute nearly 40%.

CHIETA, The Catalyst for Enhanced Skills, Economic Growth and Employability

“Working together we can indeed achieve the skills revolution that our country so urgently requires“.

NSDS III Foreword, Minister Nzimande

THANK YOU