Jobs Fund RFP now open: entrepreneurs apply!

The DBSA on behalf of the National Treasury invites public, private, as well as South African non-governmental organisations to submit innovative proposals that will facilitate job creation and lead to systemic change within the South African economy.

R9 billion has been set aside for the fund, aimed at creating 150,000 jobs over 3 years. It awards once-off grants to partner organisations through a competitive project application process. Project partners are required to match the grant fund allocation either on a 1:1 ratio for private sector partners or 1:0.2 for non-private sector partners.

So far, its investment committee has approved 54 projects, at a cost of R3bn. This has been matched with R3.7bn from applicant organisations. Of the 54 approvals, 27 projects have been allocated to contractors, who will help implement them. The 27 projects have signed agreements for funding of more than R1bn. Of these, 19 were approved for NGOs, 5 for private companies and 3 for public sector institutions, creating only 745 jobs.

Brian Whittaker, deputy chairman of the Jobs Fund’s investment committee, says the approved funding for the 54 projects will result in the creation of about 65,000 new, permanent jobs and the placement of about 42,000 unemployed people into existing vacancies.

The Jobs Fund opened a third Call for proposals on the 3 December 2012. Interested organisations are required to submit a concept note by 5pm on 15 March 2013. Only applications for the following two funding windows are invited: Enterprise Development and Infrastructure.

Background

Since opening in June 2011, the Jobs Fund has received over 3,500 applications with over-subscription in some windows.  Thus it is only opening the enterprise development and infrastructure windows for this funding phase.  Once these applications have been reviewed, the Investment Committee will review the balance of applications across the Fund and determine which areas will be open for future funding. 

The infrastructure window will co-finance light infrastructure investment projects that are necessary to unlock job creation potential in a particular area. Initiatives could include providing critical missing infrastructure that creates trading opportunities; enhances access to markets; improves the business environment for enterprises and catalyses employment linked investment. The key characteristics of competitive projects include: large scale impact; contribution to systemic change; innovation; value for money; a clear link to job creation, and a demonstrable capacity to implement.

It is looking for new business models, products and markets in enterprise development, including "umbrella" initiatives that could be channels of support for smaller enterprises or benefit these indirectly, such as the facilitation of market linkages and supply chain diversification. The fund is also seeking to co-finance "light" infrastructure investment projects. It is targeting established companies or organisations with plans to expand existing programmes, or pilot innovative approaches to employment creation, with a special focus on opportunities for young people.

This first stage requires the submission of a Concept Application in a standardised format, via the electronic application system. The Concept Application includes a description of all the key features of the project and enables an initial assessment of the eligibility of an application as well as its competitive performance against the impact criteria. Once all applications have been scored, they are ranked in order to identify the strongest projects within each funding window or broad category of projects and a decision is taken as to which proposals should proceed to Stage Two: Full Applications. This is the first competitive point in the application process. The Jobs Fund appreciates that submitting an application can be a time consuming process. The concept application stage allows applicants to test the strength and relevance of their concept, without having to submit a detailed business plan.

The Jobs Fund will not fund projects in the following categories:

• Bail out of distressed companies
• Start-up companies and initiatives with no proven record          
• Training activities that are not linked to job placement
• Initiatives with large capital investment but minimal job creation potential
• Double dipping funding – the Jobs Fund does not seek to crowd out other funding sources.

Construction industry anxiously awaits government’s R3-trillion infrastructure spend - no tenders yet issued

DBSA frantically attempting a turnaround strategy

The government’s infrastructure bank, DBSA, is expected to play a leading role in the planned infrastructure investment programme.

The First National Bank/Bureau of Economic Research building confidence index for the fourth quarter showed seven out of 10 respondents rate business conditions as unsatisfactory.

Treasury head of public finance, Andrew Donaldson, says the DBSA’s core business should be lending to municipalities for infrastructure (which has been in decline since 2005). The DBSA will henceforth partner with government departments — in particular health and education — to establish programme management teams that will plan, design and deliver priority projects.

In post-apartheid SA, the DBSA has been expected to self-finance. However, Treasury will henceforth provide financial transfers in a new funding model that will see "blended finance raised from the capital markets with fiscal transfers to capitalise growth".

The DBSA posted a loss of R370m last year, in part due to bad equity investments. While the DBSA has announced a voluntary retrenchment process, it is believed that it aims to cut its staff from 750 to 300 people (following an evaluation by consultancy Bain).

New DBSA CEO, Patrick Dlamini, hopes turnaround strategy will return the DBSA to profitability by 2013 and double its loan book to R91bn by 2017.

On Democracy, Gatekeepers and Wickets...

Financial Curve Balls

I just did some basic arithmetic. It cost the ANC R12,500 per person to host their 4-day Policy Conference at Gallagher Estate in June - pretty cheap compared to corporate events. The ANC pays for accommodation, meals and transport of delegates from various parts of the country.

The conference is funded partly by "generous donations", a token payment by delegates and the ANC’s “progressive business forum” coordinated by Daryl Swanepoel . While outside in the sun, adjacent to the luxury sedans, ordinary rural vendors make do with selling ANC merchandise .

About 5 000 delegates are expected to attend the party's elective conference in Mangaung in December. What caught my attention, was that, when this political party spends money on a get-together, they pay their bills in cash.

The ANC is a political party, who happens to be ruling i.e. Government. On average, when  our government pays service providers - mostly using taxpayers' money (which are arguably the voting citizens of the country who endorse them) - no matter whether you're a large corporate or SME, you only get paid after about 60 days, if that. 

Happiness is...

FutureFact recently found that 76% of LSMs 2-4 and 61% of LSMs 5-6 (the bulk of our population) do not have any friends from other racial groups – a proxy for determining social cohesion and integration. It would seem we're integrating, but alongside each other - not with each other.

My view? Although the Washington post considers happiness risky, it seems to be what the ruling party is after. Although happiness in the developed world is linked to either financial prosperity, enough leisure time or being thin and living long, to each country their own - and especially so, in Africa - where sunshine can draw wider smiles on our faces. 

But if the ANC wants to draw its reference framework around what Colonialism did to bugger things up, its number one starting point would be to determine WHAT WORKED FOR SOUTH AFRICANS pre-Colonialism, and to aspire to return citizens to that state - albeit in a modern context. Right?

What we Still need to Learn

Reviewing the ANC's 4th National Policy Conference recommendations, some of these astounded me. Because of how blatantly they have been ignored (and transgressed) since June 2012 - by the highest cadres of ANC leadership. And by the fact that they are still under discussion (and not seen as common sense non-negotiables since the onset of the ANC's rule over South Africa):

• More urgent steps should be taken to protect the image of the organi­sation and enhance its standing in society by ensuring that urgent action is taken to deal with public officials, leaders and members of the ANC who face damaging allegations of im­proper conduct.
•  In addition, mea­sures should be put in place to prevent abuse of power or office for private gain or factional inter­ests. The ANC can no longer allow prolonged processes that damage its integrity. 
• The ANC veterans and former combatant of MK should be de­ployed in the programme of rolling out the political education cadre­ship development programme. Say, what ?
• The ANC members who are found guilty of wrongdoing in other insti­tutions of society should also be subjected to internal disciplinary processes in line with the ANC Code of Conduct. This will send an unambiguous message in society that the ANC does not tolerate any wrongdoing, including corruption, among its members. 
• Public funding (READ: TAXES) should be expand­ed in order to promote and support democracy. Such funding will be accompanied by full financial ac­countability and transparency by political parties, including regula­tion of private financing of political parties. So if I pay a tax to promote democracy - how do I review how it is applied?
• The ANC should participate in the economy, through various activi­ties such as setting up business to provide goods and services as well as building an investment portfolio. Regulation of party-linked invest­ment vehicles should also be intro­duced to avoid conflict of interest, which will result in compromising the integrity of the movement. How to move towards a communist state with good corporate governance 101...
• All ANC members who earn an in­come should contribute equitably to the movement by paying a levy, according to their ability. This, I guess, on top of PAYE?
  
• Foreign funding should be permit­ted, but must be regulated to avoid abuse and manipulation by exter­nal forces in the political affairs of our country. Show me a country where THAT worked for citizens!
• All financial donations made to the organisation should be deposited into the bank accounting to elimi­nate abuse and that fund raising should be limited to those who are authorised to so. And we only realise this NOW?
• The NEC should to address the problem of high bank charges from FNB, including a possibility to use the Postbank. Now let's see how long their bank fees stay down!

Colonialism of a "special type"

After agreeing among themselves that significant progress has been achieved, our ruling party goes on to blame "the structural legacy of apartheid colonialism and patriarchy" for unemployment, poverty and inequality.

In reviewing the last 18 years, they unequivocally confirm that 1994 was the decisive departure point from a colonial system spanning over three centuries. According to the ANC, current National Democratic Transformation successes include:

a. democratic, non-racial and non-sexist political order; (I guess calling an opposition deployment the Madam's tea lady is OK, then)
b. democratic rights for all citizens and the establishment of vibrant institutions;
c. Constitution that promotes consistent equality and encompasses first, second and third generation rights; (what are third generation rights - anyone?...)
d. basic needs programmes (housing, roads, access to electricity, sanitation, water);
e. integration of security forces and improving access to the criminal justice system;
f. empowering women and transforming gender relations;
g. access to health care;
h. social wage and social policy to alleviate poverty;
i. developing human resources through education and skills;
j. economic transformation for growth and job creation after decades of stagnation;
k. participatory democracy; and
l. a better Africa and world.
 
OK... very well then. But right after this, the document switches tack to blame Colonialism of a Special Type (including patriarchy) for ALL OF THE FOLLOWING failures to deliver the above-stated "successes" to the people (not just a well-connected few):

• The colonial, racist and sexist structure and character of our economy;
•  the spatial and gender patterns of development and underdevelopment;
•  the social, human resources and infrastructure backlogs.

[INTERLUDE]

Would it surprise the crafters of this fine (albeit devoid of a SUB-EDITOR) document to take into account that these very same inequalities existed in the countries that these "colonialists" more often than not fled from 300 years ago? 

My predecessors fled religious persecution in France (see an Irish account if you need more), and again to Argentina during the Second Anglo-Boer War. I have in my possession a typed-up account by my great-great grandmother (at the age of 94) of her time in St Helena and conditions leading to the family's forced flight to Argentina, because the British forces kept destroying their Free State farm. Coincidentally, these were the people who stood up against absolute government, believing individuals could establish their own salvation - not the state.

I'd go as far as to say, the main benefactors of 'South Africa' were the Dutch East India Company (not surprisingly, also London-based today) and British Empire, and their 'cadres' - not so much the settlers...

It may benefit the authors to take into account that these social ills were first spawned in the first city-states of Mesopotamia - "the cradle of civilisation" back in 3100BC - to spread across the global village as we know it today. And look at Syria, Iran, Iraq and Turkey today...

CURTAIN DRAW

 

The ANC policy document goes further to say that:

"The constraints during the first 18 years of a negotiated settlement meant that we were not always able to introduce the required changes in order to rapidly eradicate this legacy. Whilst we made progress in transforming the state in terms of its representativity, orientation and its role, we continue to have challenges of state capacity, the orientation of the public service and our capacity to effectively implement our policies, thus impacting on our ability to decisively effect broader social and economic transformation."

WOW. Am I to understand that:

• ...the rule of the ANC today is still a "negotiated settlement" with "colonialism of a special type" secretly pulling the strings (purse or other)?
• ...although our current Government has TRIPLED IN NUMBERS from what it was pre-1994, they do not have capacity to implement THEIR OWN adopted policies?

Talk about the pot calling the kettle black (no pun intended).
Now we actually get to the part that inspired me to set everything else aside in order to write this heart-felt blog posting:

Still under the heading The Persistent Legacy of Colonialism of a Special Type (including patriarchy), our ruling party blames colonialism for:

1. "New expressions of corruption and greed, which not only result in the wastage of public resources, but also undermine confidence of our people in government and in our movement."

2. The challenge of the unity and cohesion of the ANC and the Alliance, impacting not only on its ability to mobilise and organise the motive forces in transformation, and therefore on the pace of transformation. 

If I look back at what would have made my predecessors happy 300 years ago (as they certainly weren't happy at the time), it would have been AUTONOMY FROM AN OVER-BEARING STATE. I believe the same desire still stands. 

And so, I rest my (brief) case.

On pursuing an independent green career

My fledgling nest is rounding out nicely, with a few mottled eggs about to hatch. Three months of flying solo, with a few flitting writing / strategising assignments under the wing, and the Green Beret Club is taking on a comely shape!

At this stage, my protein feed consists of incumbents...

• a PR partnership to provide media and stakeholder counsel to 

• a key partner in South Africa's criminal justice system created in the 1996 Constitution, and 
• SA's leading transformation business council.

• Sponsorship lobbying for a clean tech investor conference.
• Networking corporate participation in an ED BPO that brings full compliance with the new BEE Codes.

Credit: Xeon_1

Green DNA in the making :)

A matter of degrees...

Reading through the IEA's recently released World Energy Outlook 2012, I had to double-check that Paris had not had too much champagne this time round!

• We are en route to a 3.6°C global temperature rise by 2035 (when my daughter celebrates her 27th birthday). At COP17 here in South Africa last year, I was still labouring under the shock of a 2°C rise - made slightly more eerie by the tropical humidity of our coastal host city, Durban, during the warmest summer month. Perhaps that's why the UN is choosing hot cities during their hot seasons - to drive the point home..?
• Today's power plants at today's capacity already account for 80% of the Co2 emissions Earth will be able to handle by 2035 - at which time humans will need 33% more energy!?
• Eight years from now, the US (not Saudi!) will be Earth's biggest oil producer - thanks to fracking - let's for now ignore the possible seismic side-effects, shall we?
• All the glitz surrounding renewable energy aside, it can only save us 12% by then :( A case of too little, too late again...
• ...whereas fuel economy, lighting and heating reform can save us 70%! Best we get those geysers, LEDs and Smart cars institutionalised for good, right?

Now do forgive me, as I'm about to embark on an anomaly of puns. 

On the other side of the coin (or trillion-dollar hedged fund), we have the investor  community (an oxymoron in itself) getting giddy over climate change, following a decade of MBA wisdom that dirty jokes aimed at Al Gore will make the problem go away...

Local catastrophes bearing female names seem to have instilled in these highly-numeric folk, at last, a new-found respect for the vulnerability of the air-conditioned cubicle.  They now want Governments to send clear policy and carbon disclosure signals to "the market" to better quantify climate risk. 

"But what does this mean?" my four-year old would ask. Well, baby, there are people who just play with money all day - not toys, or each other. This game is a bit dangerous, because if they play too rough, the can hurt other people. This game can even make your toys or food disappear! When they play, they also sometimes lose their money (and their friends' money) - and lately, a LOT of it has gone missing! Now, they're even more afraid that they won't be able to play this game anymore, because the wind and rain might blow it all away. So, they've asked the king and queen to tell them the price of wind and rain, so that they can turn it into money. Like magicians... See?

Gosh! It sure is hard to explain money markets, pension funds, SEC, FSOC, Dodd-Frank, recession and the role of climate change in instilling sanity back into humanity to a four-year old. But I try...

Climate Change is a Conspiracy!

Had a chat yesterday afternoon with yet another business person who believes that global warming is an elaborate hoax, perpetrated by an unknown many, with purely commercial intentions, on unsuspecting world citizens.

The jury's still out on this one, admittedly. If you've installed a solar panel and you recycle, you've covered your bases to some degree anyway. Lest the oil runs out, ya'know.

FACTS

Fact is. Globalisation has enabled accurate tracking of biodiversity depletion. Arguably caused by global warming. And human interference in sensitive ecosystems (to live, mine or grow food in). Technology-driven social media is the glue that holds this open information exchange together.

Fact is. We need to produce the past 8000 years' worth of food within the next 40 years - just to feed ourselves and the animals we keep/eat (WWF stats). Global population growth is not the sole tenure of the poor - we have all lost a sense of community

Fact remains. One fifth of us eat/drink/use (in excess of) three-quarters of what's available to all humans materially, while an unlucky fifth gets a mere 1-2%, and the middle lot share the other fifth among themselves (2008 World Bank stats). There would actually be enough to keep everyone sustained and entertained, if people were less selfish.

Side-effect: enormous waste dumps. Gadgets & gizmo's, packaging, chemicals and bio-waste spilling over city borders and into the oceans. Out of sight, out of mind, right?

NUSTHELLS

 

• While Earth in only arguably warming, certainty is that counted plants/creatures are stressed to the point of extinction, and our behaviour plays a big role.This is speeding up.
• While 20% of people are flourishing and 60% are just getting by, the remaining 20% is hungry, ill and living an inhuman life on Earth. This is getting worse.
• The material habits of four-fifths of humans are causing unmanageable waste streams. This is escalating.

So. It doesn't matter which of the three broad economic groupings you find yourself in, or whether or not you feel comfortable there. What does matter, is that you wake up and smell the unhappiness, which may be external to you, but is invasive - angry voices, not to be stilled.

Unless we as a society start building a shared value construct that includes a liveable social and economic infrasctructure for our fellow living beings, the things we enslave will either die or kill us - whether these slaves be ecosystems or people.

Grow up. Life's unfair

I detest the rebuke "grow up; life's unfair" as it is scientifically anomalous. Nothing unfair lasts. Only the nourished survive. And you certainly don't find the disenfranchised believing this. Self-serving philosophies...

"Grown-ups" often shadow the nugget with "nothing lasts". Pretty fatalist from our captains of advanced humanity, neh? Dark horses chasing the material dragon for an Apocalypse that might beat the boredom of hardly contested subordination.

On being human

Every human is born with a tricky ego and selfish nature with innate manipulative skills. Every human is also born with a conscience and a capacity to love that transforms everything around them. This Yin-Yang I have witnessed first-hand since the early months of my four-year old daughter's existence.

I am middle class. Thanks to my rearing, rights to riches or insatiable material hunger do not constitute my make-up. Relatives impressed on me "soft skills" (neighbourly love, humility, a sense of community) before letting me loose in the early '90s business world, where I've spent twenty years adjusting my personal, social and economic footing to get beyond basic survival mode. Sadly, middle class citizens are often driven by a fear of being poor, or a desire to be rich, or not driven at all. My advice to the youth among us echoes the basic life skills advocated by Mahatma Ghandi, which he formulated as the "seven deadly sins":

Wealth without work, 

Pleasure without conscience

Science without humanity

Knowledge without character

Politics without principle

Commerce without morality, and 

Worship without sacrifice.

Playground antics

So if we had to apply the above to the World Bank Class of 2008 Report, where one-fifth of kids eat, drink, play with and use up just over three-quarters of all the toys on our playground, an unlucky fifth has to share 1-2% of class resources (and our our used-up stuff if they want), and the rest of the kids (60%) share the remaining 20% of resources among themselves... how would we change things?

In Sociology (the discipline heralding the age of advocated human rights and NGO aid), humans looked at each other through the trifocal lenses of habit/heritage, brain and manipulative power. Does it follow, then, that cleverer, more sexually astute people (at least in terms of reproduction) are just harder working and better able to navigate nature's ravages? Hardly. Art, history, psychology and literature tell a very different story.

Spread the word

It doesn't matter which kid you are, or what you believe is right or wrong. What matters, is that you see things as they are - not as they should or could be - and share this knowledge freely.

We are taught from a young age that the tree be known by its fruit. If the current state of inequality and competition between people and natural systems is causing decay instead of improvement, my question remains: what is the price of comfort for a few?