ISFAP Executive Summary Aug 2019 W W W . I S F A P. C O . Z A - - PowerPoint PPT Presentation

ISFAP Executive Summary

Aug 2019

February: Published full year results for all students to our funders with a pass through rate of 88%

2017

January: ISFAP Pilot launched November: Herer Commission submitted report highlighting that there is no capacity for the state to provide free tertiary education for SA students 1 3

2018

October: Cabinet reshuffle results in the removal of Blade Nzimande and the appointment of a new DHET Minister 4 January: ISFAP strategy session to provide inputs and clarity for the operating strategy 6 December: President announces free education for all students with a household income of less than R350,000 5 August: Presidential Commission

• f enquiry report handed

to the President 2 April: Amendm ents to the NSFAS act to enable a PPP March: BBBEE codes gazetted for comment until end of May

8

February: Naledi Pandor appointed as the new DHET minister

7

March: Sasol Inzalo approaches ISFAP to manage their bursary programme - ~400 students

9 10

Timeline of Events from Launch of Pilot

2019

July: Steering Committee meetings between ISFAP, DHET, NT, DPME

11

December: ISFAP meets with Minister Naledi Pandor to provide a status update and identify actions for way forward including PPP, inclusion for BBBEE code revisions

12

February: Steering committee meeting and submission of ISFAP Pilot Report to Cabinet with Cabinet Memo

13 14

March: Selection of 517 students from an application base of over 16000 applications, and 2595 means tested applicants

15

April: Published our 1st Newsletter, First Donor committee meeting for 2019 planned on 4th April

16

Timeline of events

“ISFAP seeks to secure the future of South African

Youth by providing needs-based assistance to students from poor and working classes. This support will enable students to acquire a broad set of knowledge, skills and character traits that will significantly improve their meaningful participation in the growth of the country, including the economy, human development, leadership, ethical behaviour and broad

• citizenship. The intention is to advance equal
• pportunity and equitable income distribution

for all South Africans.”

Strategic Intent

ISFAP’s 5 Value Proposition elements

Capacity Building Assist tertiary institutions with optimising curricula and resources to suit the local context and student needs Full Cost of Study Provide non-capped funding to students to cover all necessities Wrap Around Support Provide psycho-social support services to students to ensure overall well-being Technology Focus Leverage integrated digital platforms to interface with stakeholders Professions Development Strong focus on strengthening, developing and promoting professions and OHDs

AGENDA

Bursary Management Financials and Fundraising Design and IT Government

BURSARY MANAGEMENT

ACTIVE STUDENT FOR 2017, 2018 AND 2019 COHORTS

• The bursary focuses on

skills pertaining to

• ccupations of high

demand

• Majority of our

students are studying Engineering, Medicine and Accounting

• The pilot bursary with

TVET was undertaken in 2017 with Orbit college and key learnings identified

• We have limited our

expansion to 11 Universities in 2019 with existing courses

Universities Medical Doctors Actuaries Engineers Chartered Acc Prosthetics/ Physio Technical (Artisans) Occ. Therapy ARTS Pharmacy Bachelor

• f

Science BSC Compter Networks Nurses Total University of Venda 102 20 122 Walter Sisulu University 70 11 81 University of Witswatersrand 48 27 88 7 10 180 University of Cape Town 50 18 55 27 150 University of Pretoria 81 39 149 81 9 359 Tshwane University of Technology 71 84 155 University of KwaZulu Natal 74 4 21 12 111 University of Johannesburg 47 73 10 130 Stellenbosch University 35 72 49 156 Nelson Mandela University 50 50 Central University of Technology 57 57 Orbit Tvet 8 6 14 TOTAL 358 84 536 312 75 6 48 29 12 10 10 84 1565*

* Excludes 135 FASSET applications

% Number of Students Students Funded in 2018 Academic Year 100 639

• ther Funders

Results for 2017Intake (2018 Academic Year) Results for 2018Intake (2018 Academic Year)

% Number of Students Students Funded in 2018 Academic Year 100 643

Consolidated Results (2017 and 2018 Intake)

% Number of Students

• ther Funders

2018 Academic Results

FINANCIALS & FUNDRAISING

Key Strategic Objectives of MTT/ISFAP

• 1. Promote progressive support

to financially needy students to access higher education

§ The Constitution of the Republic of South Africa clearly supports the

notion of affordable higher education for all and progressive support for financially needy students to access higher education, but it does not promise free higher education

• 2. Improve efficiency of the new

model over the current model

§ Create an efficient and robust model to minimise leakage, fraud and

risk in the granting and disbursement of bursaries and loans to deserving students.

• 3. Align the skills promoted by

the model with the NDP and Human Resources Development Council Strategy

§Fast track South Africa’s skills production for the 21st century. §Incentivise all stakeholders (government, students, universities, TVET

colleges and private sector) to focus on producing skills and

• ccupations in high demand (OHD).
• 4. Reduce the dropout rates of

poor students

§Provide sufficient funding to poor and “missing middle” students to

cover the full cost of study at universities.

§Provide comprehensive psychosocial and life skills support for

poor students.

• 5. Improve “skin in the game” in

the future of South Africa for all §Create a shared and common vision for education in South Africa.

Funding Support Required

(Short, Medium and Long Term)

Income Bracket # of Students Cost to Fund (Rm) >R350k and <R600k 217 789 R 26 165 <R350k 364 596 R 41 849 Total Students Requiring Funding 582 385 R 68 014

ISFAP aims to raise over R26bn with the majority coming from the private sector

Clear value proposition required to maximise the probability of raising funds:

• Successful efficient track record
• National Workforce development
• Satisfying constraints, reporting, and progress monitoring requirements for Donors
• Goal is to form a Public Private Partnership with Government

Government Private

Government vs Private Sector Split of Total Student Funding Requirements Rm Expected Available Funding from the Private Sector for Student Funding 2019 Total funding required for Tertiary Education in South Africa for household income bracket between 0-600k = R68 bn

38,702 Short Term Medium Term Long Term Estimated Available Pool Estimated Available Pool Estimated Available Pool

B-BBEE Skills Development R8bn R10bn R18bn DFIs, Foundations, CSI ,Bursaries R1.5bn R3bn R6bn Credit Products and SIB R0.5bn R1bn R2bn Total R10bn R14bn R26bn

R42bn R26bn

Skills Development Element Weighting Points Compliance Target Skills Development Expenditure on Bursaries for Black Students at Higher Education Institutions 4 2.5%

ISFAP proposes to get a large part of its funding from the B-BBEEE codes

ISFAP has almost tripled its deployment to student funding from R53,8m in 2018 to over R150,2m in 2018 and almost doubled its funding deployed to student funding to an estimated R248,5m in 2019

FUNDING DEPLOYED

Over 2017, 2018 and 2019

R0,00 R50 000 000,00 R100 000 000,00 R150 000 000,00 R200 000 000,00 R250 000 000,00

2017 2018 2019

Funding Deployed For Students Bursaries

200 400 600 800 1000 1200 1400 1600 1800

2017 2018 2019

691 1282 1700

Number of total Students in ISFAP

Strategic Partners Governmental Professional Bodies Organised Business Donors and Funders

Strategic Partners, Donors, and Funders

DESIGN & IT

ISFAP Model

Oversight & admin Verification of students & information Admin systems & processes Continuous monitoring, preventative action, remedial steps, student support Partnerships in support ASISA foundation to offer financial literacy HEAids to offer life/health training Harambee for work readiness

Internship and Talent Management Payments Funding Origination

Application Verification

• Know Your Student
• Means Test

Funding Management System & Decision Engine

• Funder Management
• Funding Pools (Student Allocation)
• Contract Agreements

Payment Management Disbursements

• Tuition, Books
• Accommodation
• Living allowances

Work Readiness Employability Entrepreneurships Recruitment/ Placements Student Lifecycle Management (Workflow, Rewards Programme, Academic Supports, Psychological Support) Support and Maintenance (Supplier Lifecycle Management, HR, Finance, Legal Risk, Infrastructure) Marketing and Communication BI and Reporting

IT SYSTEM

ISFAP Wrap

ISFAP WRAP

• ISFAP Wrap: First To Country
• Monitors Students Academics
• Monitors Student Wellbeing
• Manage interventions and communications with students
• Used as the main platform within the ISFAP Model to increase Graduation rates

(within term)

• Will also enable the ISFAP platform to be white-labelled for third party

bursary suppliers. Objective: Two be onboarded in 2020.

Student Home Screen and Functionality

PM Home Screen and Functionality

Managing Academics Upfront

Managing Student Wellbeing

Managing Students Efficiently

Monitoring Students in the System

GOVERNMENT

Government : DHET

Steering Committee:

The DHET/MTT Steering Committee meetings resumed in January 2019, with the second meeting held on 1st March The agenda for the March meeting was to discuss and finalise the Cabinet Report and identify PPP engagement areas DHET to provide comments, plus final internal review before final report can be circulated to funders and other stakeholders Upon approval, The report will be submitted to government together with a Cabinet Memo for ISFAP’s way forward

Government: DTI

BEE Code 300:

On 31 May 2019, the DTI gazetted the changes to B-BBEE code 300! What the revisions mean Organisations can now receive 4 points towards their BEE scorecards by spending 2.5% of their annual payroll on Skills Development

Revised B-BBEEE codes have placed a greater focus on EDUCATION and ring fenced BURSARY SPEND

THANK YOU