Pretoria

SWEDISH CONTRIBUTIONS TO EMPLOYMENT CREATION AND SKILLS DEVELOPMENT IN SOUTH AFRICA

1. SUMMARY
Skills development through training and capacity building as well as employment creation constitute important parts of Swedens contribution to the development of South Africa. Within Development Cooperation there are activities to promote skills development in various fields, such as training of engineering skills at the Ithemba Technical College in Soweto, training of medical staff within the HIV/AIDS programmes to mentorships between Swedish companies and universities in South Africa and Sweden that facilitate management training. Close to 90 Swedish companies are present in South Africa through subsidiaries and close to 400 South African distributors or agents for Swedish products and services exist in the country. The 90 subsidiaries employ more than 15 000 people. Most companies are engaged in skills training programs, primarily with basic training for technicians but also on managerial level with international training programs and support to post graduates studies. Two examples are Sandvik is spending more than 90 000 man hours per year on training Volvo trains more than 600 persons per year There are also joint efforts between Development Cooperation and Swedish companies such as SWHAP the Swedish Workplace Hiv and Aids Programme that involves more or less all major Swedish companies in South Africa.

2 (4)

1. BACKGROUND
The relations between Sweden and South Africa are excellent and dates back to the cooperation and contribution to the anti-apartheid movement in South Africa. The cooperation between our two countries results in various manners to raise the employment and skills development in South Africa. The Bi-National Commission (BNC) aims at broadening and deepening relations between Sweden and South Africa. It also provides a platform for regular dialogue and identifying and implementing joint projects and programmes. The Commission, headed by Sweden's Deputy Prime Minister and South Africa's VicePresident, meets every other year to discuss common political, economic and development issues in the broadest sense. Within the framework of BNC, a number of areas are deemed of particular interest in the context of increased cooperation based on Swedish and South African national priorities. Some of these are job creation, skills development and vocational training. Sweden has a strong interest in further broadening and deepening bilateral relations, an aspiration which is reciprocated by South Africa. The Development Cooperation between Sweden and South Africa, during the strategy period 2010 2013, is focused on Partner Driven Cooperation aiming at stimulating and strengthening the emergence of self-supporting relations of mutual interest between actors from the two countries. Several of the supported partnerships are contributing to skills development. The close to 90 subsidiaries of Swedish companies operating in South Africa play a vital part in efforts to help boosting trade and investment in Southern Africa, and act as an incentive for other Swedish businesses seeking to gain a foothold in the market. The over 300 Swedish companies represented by local agents in South Africa should also be mentioned. Company establishments in South Africa are often the starting point for business expansion into the rest of the region. Skills development in South Africa is an area of importance both to the Swedish companies active in SA as well as within development cooperation and for the long term relations between SA and Sweden. Sweden supports skills development and vocational training through various cooperation initiatives between agencies in SA and Sweden.

2. DEVELOPMENT COOPERATION
Skills development is directly or indirectly supported in several projects within the Development Cooperation between Sweden and South Africa. There are projects and programmes specifically aimed at this such as the New STC Economic Development Programme (NSEP) 2011 2013. Bilateral Cooperation NSEP is built on the explicit role given by the Swedish Government to the Swedish Trade Council (STC) in South Africa. The programme is contributing to private sector development with special focus on trade development, export promotion, human capital development and Corporate Social Responsibility

3 (4)

(CSR) which in a long-term perspective promotes pro-poor economic growth and development. Within the programme support is given in collaboration with Swedish companies through the Ithemba Institute of Technology in Soweto for vocational training and skills development. Capacity building and skills development is also an integrated part in many development cooperation programmes. Examples of this are the cooperation between FURNTECH (Furniture Technical College) and Tibro Training Centre (a Swedish Municipality), which provides advanced and accredited training, incubation technology and skills development for small enterprises and aims towards expansion in South Africa as well as Sweden. The cooperation on Gender Based Violence between Uppsala University Hospital/National Centre for Knowledge on Men's Violence Against Women (NCK) and The Foundation for Professional Development (FPD) aims to improve service delivery for victims of violence. This is done partly through capacity building for health care and educational professionals. Another example Capacity building in a number of sectors and fields is also being supported through the International Training Programs. The programmes cover areas of strategic importance to the social, environmental and economic development and are based on identified priorities and needs. In the long-term perspective, the programmes shall contribute to institutional strengthening and capacity development in the co-operating countries. Since 2005 more than 300 South African professionals have been trained through various ITP-courses. SymbioCity Academy The Swedish Trade Council is carrying out the government funded project SymbioCity Academy Energy Southern Africa. The focus of the program is to facilitate prioritized energy projects, from conceptualisation and inception to implementation. The program is to provide hands on knowledge and tools for local manager and specialists at regional organizations, public energy companies and national and local authorities for realization of key regional energy projects. The overall goal of the programme is to create conditions for improved living conditions for poor communities in southern Africa, with inadequate access to affordable energy. . The expected outcomes are increased knowledge and understanding among policymakers around holistic approaches and solutions to energy, as well as laying the foundation for long term cooperation between Sweden and southern Africa within the energy sector. For further details on projects and programmes within development cooperation, please see Appendix 1.

3. SWEDISH COMPANIES
A majority of the Swedish companies in SA have skills development programmes for their employees as well as for people outside the organization. For example, Scania in SA has a training centre at its head office and in the past 2 years Scania sent 6 employees, including previously disadvantaged employees earmarked for management positions overseas for leadership training.

4 (4)

Most of the Swedish companies offer apprentices/internship and graduate recruitment programmes. Ericsson for example, has over the past few years run Internship / Graduate Recruitment Programmes. In 2012 they had 16 graduates join the programme from various universities across the country. Ericssons programmes include the ESAP (Ericsson Skills Acquisition Programme) and a General Programme. The ESAP is aimed at Engineering, IT and Telecommunications graduates. This programme is also run in other countries across the Sub Saharan Africa region. Virtually all large Swedish companies train their staff in various programs and try to find ways of recruiting previously unemployed people. Many of the over 15,000 people employed by the Swedish companies were previously unemployed, e.g,. 44 of 91 staff members at SSAB Large companies, e.g., Sandvik, Volvo and Scania run their own training centres: Sandvik spend 90,000 hours per year on training excluding their 200 apprentices Volvo trains some 600 people from their own organization and customers in their center Many companies also provide training to their management staff and: SSAB provides MBA education Gunnebo provides B.Com education for staff Scania sends people abroad for leadership education Companies requiring well educated staff, e.g. SAAB and Ericsson support universities and colleges and offer internships for engineering students For further details on what individual companies do towards skills development please see Appendix 2.

APPENDIX 1 examples of Development Cooperation contributing to skills development and vocational training

ECONOMIC DEVELOPMENT
1. The New STC Economic Development Programme (NSEP) is built on the explicit role given by the Swedish Government to the Swedish Trade Council (STC) in South Africa. The programme is contributing to private sector development with special focus on trade development, export promotion, human capital development and Corporate Social Responsibility (CSR) which in a long-term perspective promotes pro-poor economic growth and development. Throughout the programme the creation of sustainable relations between Sweden and South Africa is considered. Activities range from training, seminars and mentorship programmes. The programme is focusing on three cooperation areas where the programme can create added value: 1. Trade development 2. 2. Skills development and entrepreneurial development 3. Corporate Social Responsibility Following are summaries of the different components of NESP: Ithemba Learnership College Partnership The overall objective of this activity is to align Education and Skills Training programmes to the specific and direct needs of the industry and the economy, and thereby educate and train people for employment The Ithemba Learnership Programme is an intense 12 month SETA approved skills training programme with access to workplace experiential learning opportunities designed to fast track learners with core skills and functions, enabling the partners to take the learners further Swedish subsidiaries will be approached to take on a maximum of 50 learners

Corporate Social Responsibility (CSR) programme The Corporate Social Responsibility (CSR) programme is aimed at supporting Swedish subsidiaries and South African companies in identifying areas of possible improvement within CSR with the involvement of industry experts facilitating on CSR best practice methods from a Swedish perspective

Capacity Building for the dti and Other Stakeholders The STC will partner with the Trade and Investment South Africa (Tisa) within the Government Department of Trade and Industry South Africa (DTI) The knowledge gain from the partnership will be part in the dtis National Exporter Development Programme (NEDP), which goal it to increase the export

effectiveness and culture in SA, to provide on-going capacity building and training of dti officials and its national and provincial stakeholders, e.g., SEDA, Economic departments and export chambers Exporter Mentorship Programme The objective of the Exporter Mentorship Programme (EMP) is to support and build a stronger export competence within emerging SME export companies through the provision of essential expertise, coaching, co-ordination, support, monitoring to support them to develop and implement their business strategies and achieve economic growth over time The key structure of this activity is to liaise suitable SMEs focusing on exports/exporting, with Swedish companies in South Africa that have strong experiences within that particular field of the matching SME The Swedish company enters the role of a mentor and the South African company that of a mentee, together creating a mentoring pair linked for a minimum of six months to a maximum of a year

Gotland University and UWC University Collaboration The programme will be facilitated and carried through collaboration between Gotland University and the University of Western Cape (UWC) aiming to strengthen performance and competitiveness of the local SME sector in order to lead the way for industry growth and thereby to the creation of increased added value production and additional employment opportunities Focus will be on entrepreneurship to enhance SME development through education initiatives, to promote self-employment and/or entrepreneurship Special focus is given to capacity building for enterprise development and the establishment of Business Advisors skilled in supporting and assisting SME upstarts as well as everyday support to SMEs

University Collaboration JIBS and WITS Business Schools The University collaboration between the Wits Business School (WBS) in South Africa and Jnkping International Business School (JIBS) in Sweden is targeting the skills shortage experienced by industry in the South African market and strengthens the level of competence of the human capital as a response to the scarcity of young skilled labour force The training programme provide academic development for unemployed technical college graduates, unemployed graduates, and newly employed individuals (that are earmarked for management) through further development and training and internships placement at within Swedish companies. The programme will create a skilled service pool for industry. Incorporated is a Swedish module to the existing WBS New Managers Programme (NMP) designed to assist managers and team leaders to develop a range of competencies relevant to their positions 2. MEETING POINT MINING (MPM) Through MPM the Swedish Geological Studies (SGU) and the South African Council for Geoscience (CGS) are working towards capacity building through

institutional cooperation Currently five Swedish companies (Atlas Copco, Sandvik, Scania, Volvo och ABB) are looking into supporting vocational training in the mining industry, coordinated by MPM MPM is participating in ongoing cooperation between South African Capital Equipment Export Council (SACEEC) and DTI to upgrade education plans for vocational training schools in SA. MPM will facilitate contacts with Swedish industry and unions for knowledge sharing in the field.

3. The Swedish South African PARTNER DRIVEN CHAMBER PROGRAM Chamber Trade Sweden has entered into a strategic partnership with the Cape Chamber of Commerce and the non-profit organization Mhani Gingi where the overall objective is to facilitate and increase South Africas share of global trade in order to contribute to sustainabl e economic growth and reduced poverty A specific focus is to strengthen womens economic empowerment by encouraging women entrepreneurs that are economically competent, socially responsible, environmentally conscious and committed to growth in excellence as well as to spread new knowledge to others, inter alia through the formation of a sustainable cross-border network between women entrepreneurs in South Africa and Sweden

4. FURNTECH, TIBRO Training Center The cooperation between FURNTECH and Tibro Training Center, supported by Sida provides advanced and accredited training, incubation technology and skills development for small enterprises and aims towards expansion in South Africa as well as Sweden. The focus has developed towards higher level technical skills

5. The SWEDISH NATIONAL BOARD OF TRADE Through training, mentoring and networking, the aim is to strengthen South Africa's capacity and competence in matters relating to international trade procedures, customs, and rules of origin. The first round of the program was held in Sweden in 2011 and in Cape Town March 21 to 25 March 2012 with a total of 26 participants in the regional phase. The participants have continued to work on their projects.

DEMOCRACY; EQUALITY AND HUMAN RIGHTS

LODLOG - Local Democracy and Local Governance Training Programme The LODLOG programme supports the long-lasting partnership between Swedish SKL International and South African Local Government Association The programme aims at building capacity of sub-national politicians and municipal officers in South Africa. It also addresses gender mainstreaming issues

and local governance training IN 2007 the Local Government Sector Education Training Authority registered LODLOG as an accredited training programme. Since then 27 participants have been trained consisting of a mix of high-level politicians and officials from 14 municipalities in SA

CONFLICT PEACE AND SECURITY

FOLKE BERNADOTTE ACADEMY UN Resolution 1325 (University of Pretoria) University of Pretoria, the Institute for Justice and reconciliation (IJR), the National Cohesion and integration commission (NCIC) and Swedish Folke Bernadotte Akademin (FBA) are cooperating to strategically strengthen research and capacity linked to Resolution 1325 on women and peace, focusing on conflict resolution and prevention The program aims at increasing womens participation in conflict prevention and resolution and promote national dialogue and awareness by, for example, policy analysis, capacity building and training

ENVIRONMENT AND CLIMATE

RAND Water - SIWI training academy Rand Water Academy, a training academy for water sector professionals, was launched in June 2012 in South Africa it was established with the purpose of promoting skills development in the South African water and wastewater sector The long-term result of the project will be the establishment of a partnership between SIWI and Rand Water to facilitate knowledge sharing and capacity building, in order to support the Rand Water Academys objective of becoming a skills pipeline for the water and wastewater sector in Africa

SWEDISH CHEMICAL INSPECTION (KemI) and DEPARTMENT OF LABOUR, The uses of hazardous chemicals throughout all kinds of economic activities have an impact on the environment and livelihoods of all people. Adequate legislation and the compliance of it are of crucial importance from a rights perspective for the whole population in general and the vulnerable poor in particular The collaboration addresses the uses of hazardous chemicals through chemical management, legislation and compliance the environmental impacts of chemical use

Recommendations on co-ordination and co-operation of government institutions are presented Department staff and inspectors are trained in order to strengthen the enforcement capacity and cooperation At least 10 Department administrators/inspectors and 15 regional/local inspectors will be trained

HEALTH AND HIV/AIDS

FPD Uppsala University Uppsala University Hospital/National Centre for Knowledge on Men's Violence Against Women (NCK) and The Foundation for Professional Development (FPD) are cooperating to improve the knowledge, attitudes and skills of health care and educational professionals on violence in general and gender based violence in particular The project aims to improve service delivery for victims of violence, and to increase awareness amongst key opinion makers of violence as a priority public health issue

Zivikele Skills development forms a major component of the cooperation with Zivikele Training, who has provided training in coordinating service delivery mechanisms at provincial government level and capacity training for effective service delivery for local government level in key sectors such as the Parliamentarians, South African Police Service, The Departments of Local Government, Social Development, Education, and Health Together with the University of South Africa (UNISA), Zivikele offers participants recognized certificates in HIV/GBV Cooperation to increase knowledge on the rights of victims and survivors gender-based violence Cooperation to increase knowledge and implementation of the Sexual Offences Act

Global Programmes
INTERNATIONAL TRAINING PROGRAMMES (ITP) Sida offers ITP:s as part of its bilateral development assistance. The programmes cover areas of strategic importance to the social, environmental and economic development and are based on identified priorities and needs In the long-term perspective, the programmes shall contribute to institutional strengthening and capacity development in the co-operating countries Since 2005 over 300 South African professionals have been trained through the ITP-courses

APPENDIX 2 - examples of what individual companies do towards skills development and vocational training

ABB

ABB provide skills development for their employees and educational projects such as trades and analytical education. A Swiss South African Cooperation initiative (SSACI) is valued to ZAR 500 000 and it is backed up by the Swiss government. ABB provides internship with a workplace for 7-10 students, this is a college programme carried out in collaboration with SSACI. For example, during the process when building the Gautrain, ABB provided interns for the project for vocational training. ABB has committed to co-finance training of 30 learners from Ithemba technical college in Soweto starting 1 October 2012

ALFA LAVAL Alfa Laval support partnerships/distributors via B-BBEE activities and train some trainees in-house per year ASSA ABLOY Assa Abloy participates in skills development in terms of training both employees and people outside the organization. The majority of the training undertaken is approved by the Merseta The company trained a total of 51 people at a cost of ZAR 650 000 for the training year ending 30 April 2012 The company also trained 5 Industrial Engineering students at a cost of ZAR 210 000, in addition 4 Apprentices were trained at a cost of ZAR 70 000 AUTOLIV Autoliv offer opportunities for their staff to develop and often take in people with no skills Autoliv run an apprenteship (3 employees) and learnership programmes (3 employees) ATLAS COPCO There are 3 elements of Atlas Copcos skills development: Core skills, Technical skills and Personal development In Core skills Atlas Copco train people within management and leadership, company culture, SHEQ and general skills In Technical skills job specific skills and Atlas Copco specific skills are targeted In Personal development other training and development programmes are offered Other Atlas Copco Technical training programmes: - Product Specific Training - Apprenticeship Programme - Graduate Development Programme - Training in Africa Project (TIA)

MRS Certification Programme

Female Diversity programme: - Objective is to develop female staff members within the organization by equipping them with the tools to develop a career within Atlas Copco, when opportunities arise at middle or senior management level - Aligned to Atlas Copco Group Policy - Long-term programme 2-3 years - 15 Females employees currently in the programme BECKERS Beckers carries in house ABET training for all employees who are interested. They are continuously promoting skills developm ent through SAPMA training, University and small course training Some of the courses Beckers have: ABET, Forklift Training, SHE Rep Seminar, Introduction to Hazardous Materials, SAPMA, Haztranz - Convey Dangerous Goods, Unisa Beckers also have had two unemployed school leavers that work for Beckers on a "development" programme; the one is currently employed full-time at Beckers ERICSSON Ericssons skills development initiatives focus on graduate development programmes. They had an uptake of 16 graduates for 20 12. They also have a strong focus on technical certification of our staff and encourage them to complete their technical qualifications Staff participate on various skills development programmes with more than 200 staff completing courses online, short courses, technical courses and so forth Ericsson has, over the past few years, run Internship / Graduate Recruitment Programmes. In 2012 they had 16 graduates join the programme from various universities across the country The programmes include the ESAP (Ericsson Skills Acquisition Programme) and a General Programme. The ESAP is aimed at Engineering, IT and Telecommunications graduates. This programme is also run in other countries across the Sub Saharan Region. In 2012, Ericsson took on 16 newly qualified unemployed graduates. In 2011 they had an intake of 11 interns Through projects and contracts Ericsson contractors have been trained on some of Ericssons products. The training centre in Sunninghill also hosts employees and non-employees and many attend Ericssons instructor led courses on Ericsson technologies and products GUNNEBO Gunnebo has received its total Mandatory Grant from MERSETA because of the training programmes that are carried out for all staff (103) Each year the company takes on 4 6 engineering students for experiential learning for 12 month periods


NYNS

The company paid for 7 staff to do a Junior Management Learner ship Programme which was conducted over a 12 month period Nominated staff attends the Academy organized by Gunnebo Sweden for identified staff with leadership potential. This is conducted over a 12 month period and thus far 6 staff have attended over a 3 year period Training spends for 2011 was in the region of ZAR 789 000

SAAB

Nyns encourage their staff members in South Africa to attend industry related external workshops which in turn allows them expand knowledge and experience in fields such as shipping, logistics, petrochemical industry and business acumen. In addition, South African staff members are sent on workshops abroad to network with colleagues and gain a better insight into various aspects of business. (each staff member will complete 2-4 external workshops and 4-6 internal training sessions p.a) Nyns have participated in a program by BEESA with regards to assisting unskilled staff to gain more knowledge in the Import / Export and Sales Sectors (2010) Nyns are currently looking at another program through our BEE Consults which will develop into a 2 year program regarding the Petrochemical Industry

Saab has an annual training budget, for the skills reporting period June 2011 to May 2012 Saab spent ZAR 3 761 554 on skills development 4 bursaries to the value of ZAR 200 000 were awarded Telkom Center of Excellence and the Fort Hare University was supported with R100 000 towards post graduate studies An investment of ZAR 1million was made towards Saabs supplier development program Saab Grintek Technologies & Fort Hare IT Lab servicing 16 schools in Eastern Cape rural community Intern programme 10 people Saab Grintek Defence, 3 labs at schools (2 Limpopo, 1 North West) Saab Grintek Defence, pending Mamelodi Community Project Saab ABs contribution to Tshwane South College Industrial School Project

SANDVIK Sandviks training academy is based in Jet Park, with satellite centers in Rustenburg and Steelpoort. They currently employ 2 2 full time trainers (2 soft skill, 9 skilled technical, and 11 operator trainers). All technical and operator trainers are qualified artisans. Sandvik have the following full time trainees: 200 apprentices (150 of whom were unemployed before they recruited them) 10 learnerships,3 graduate internships, 6 experiential learners and 8 fully funded full time university bursary students. Sandvik train approximately 700 of our customer employees per year, in addition to ongoing training of their own. Their current employees: approximately 2000, of which 759 are artisans Total training hours per year, excluding apprentices, approximately 90,000 hour

Sandvik have sponsored artisan training centers in Roodepoort and Durnacol KwaZulu Natal. The Natal operation is being developed to take more apprentices - all of whom are recruited from unemployed persons in that area. Sandvik have now taken on the first 10 trainees. They are also involved in a joint venture with a customer to train 300 unemployed members from the community, to be skilled in the operation of Sandvik equipment and 60 in artisan/technical skills

SCANIA Scania has a training centre based at its head office In the past 2 years Scania have had 6 employees, including previously disadvantaged employees who are earmarked for management position, sent overseas for leadership training Scania have in the current year trained 34 members of the middle management on management courses, they have trained 56 people who are on supervisory level on technical and commercial courses, 501 are trained on product knowledge SKF

Since 2008 they have implemented learnership programmes and have taken in to date 16 learners, half of these have been employed by SKF South Africa on completion of the learnership SKF take in learners on a learnership programme, 12 employees on an ABET (Adult Basic Education Training) programme and continuously train employees in line with our Skills Development Plan

SSAB By employing a total number of 91 staff in South Africa, 44 of them did not have work experience when joining the company. The skills they have are acquired on the job training Four supervisors are currently studying towards a Management Diploma. Two Managers are studying towards an MBA and the company is paying for their tuition and books. 50% of the staff is trained each year depending on their training needs Tetra Pak SETA equals 1% of the payroll. The activities this year is close to 220 training records with formal training Tetra Pak have an apprentice program with 2 participants in Electrical Engineering Tetra Pak are developing a program jointly with customer to deploy 6 Technicians each year with a start from Q1 next year Volvo Busses/Trucks Volvo trains both employees and customers in the Volvo Training Academy. This includes technical, commercial and soft skills training. An average of 600 people is trained per year. Volvo offer ABET and other life skills programs to our semi-skilled employees. Volvos Star for Life sponsorship includes 2 clusters of 15 schools with approximately 120 000 learners

Volvo Southern Africa sponsored 14 new computers to Vukuzakhe High School for the purpose of onsite training for learners. The computers are equipped with up to date software and processor technology Learners visit our Branches in order to introduce them to A career at Volvo. Various members of staff addresses the students and answers learners questions about career opportunities, the Volvo Culture and general life as a Volvo employee Volvo has a successful apprenticeship program and learners are recruited from previous disadvantaged groups, incl. Start for Life schools. The annual apprentice intake is +/- 35 learners During 2013 Volvo is planning to introduce a parts learnership. This program will equip young unemployed people to find jobs. The first year intake will be 20 students

Munters Munters work to develop artisan skills which are severely lacking in their industry. Munters work hand in hand with ACRA (A registered Merceta) to develop the Level registration of three (3) of our Artisans The company has an engineering development program, and two staff are registered at Unisa doing their NDip Mech. Eng. Application training is provided to our customers on Thermodyamics and Psychometry Planning with ACRA for next year to assist with learnership programs (Bursaries) to develop Artisans for the industry (two planned) System Air The company runs an internal training program providing training for all staff members (10) on their computer system and also for their sales people (7) on product knowledge. System Air provide external training for their store men (2) in Forklift driving

APPENDIX 3 Job Creation In total, the Swedish subsidiaries have created over 15 000 jobs through their presence in the country. See example below from some of the companies: