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EPWP: MINMEC PRESENTATION Stanley W. Henderson. EPWP Phase 2 Overview & Progress Data flow Provincial incentive grants SELECT COMMITTEE ON PUBLIC SERVICES 18 June 2014. Outline. Background & Overview of EPWP Progress against Targets Data Integrity & Data Quality

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epwp minmec presentation stanley w henderson


  • EPWP Phase 2
  • Overview & Progress
  • Data flow
  • Provincial incentive grants
  • 18 June 2014


  • Background & Overview of EPWP
  • Progress against Targets
  • Data Integrity & Data Quality
  • EPWP Incentive Grants to Provinces & Municipalities
  • Measures taken to ensure that low capacity Municipalities can access Integrated Incentive Grant.
  • Overview of Municipalities accessing EPWP Integrated Grant.
  • Impact of the EPWP on Beneficiaries


  • The goal of EPWP Phase 2 is to create 4.5 million work opportunities (equivalent to 2 million full time equivalents) for poor and unemployed people in South Africa so as to contribute to halving unemployment by 2014, through the delivery of public and community services.
  • EPWP support public bodies from all spheres of government (in terms of their normal mandates and budgets) and the Non-State sector through Government incentives to deliberately optimize the creation of work opportunities for unemployed and poor people in South Africa through the delivery of public and community services
definition of epwp
Definition of EPWP
  • The EPWP is a nationwide programme covering all spheres of government and state-owned enterprises.
  • It aims to draw significant numbers of unemployed, unskilled people into productive work, so that they increase their capacity to earn an income.
  • While the EPWP provides an important avenue for labour absorption and income transfers to poor households in the short to medium-term, it was not designed as a policy instrument to address the structural nature of the unemployment crisis
what is an epwp project
What is an EPWP Project?
  • Deliberate attempt by the public sector body to use expenditure on goods and services to create work opportunities for the unemployed
  • Projects usually employing workers on a temporary or on-going basis (either by government, by contractors, or by other non-governmental organisations), under Code of Good Practice for SPWP or learnership employment conditions
  • Clear work opportunity targets were set for designated groups, namely:
    • Women – 55%
    • Youth – 40%
    • People with Disabilities – 2%
sector overview
Sector Overview
  • Creating productive employment opportunities
    • Infrastructure Sector: Increasing the labour intensity of government-funded infrastructure projects
    • Environment and Culture Sector: Creating work opportunities in public environment and culture programmes (e.g., Working for Water, Food for Waste)
    • Social Sector: Creating work opportunities in public social programmes (e.g., Community Health Workers, Early Childhood Development practitioners)
    • Non-State:
      • NGO Programme: to be delivered by non-state bodies that have a specific focus area such as health care, child care, community safety
      • Community Work Programme (CWP):programmes targeted at a specific area that will generally involve a large range of different activities identified as necessary and beneficial work by the community in consultation with local government

EPWP Progress Against Targets

  • EPWP phase 2 has created 3,054,027 work opportunities against the business plan target of 4,500,000 which represents 68% of the target at the end of the 4thquarter of the 12/13 financial year.
  • In terms of Full Time Equivalents (FTEs), 868,974 FTEs have been reported against the target of 2,020,435 translating to 46% of the target being achieved. This is because the projects duration of work opportunities are generally shorter than anticipated.
  • Considering the 4th quarter report of the 12/13 financial year, 93% of the expected target of 3,270,000 has been achieved.
  • For the 12/13 financial year, by end of the 4th quarter 941,593 work opportunities have been created against the target of 1,210,000 for the 12/13 financial year which is 78% for the financial year.


overall annual targets 5 years per financial year
Overall Annual Targets (5 Years) per financial year
  • Source: Business Plan (dated January 2009)
  • Work Opportunities : number of individuals reported to have been employed on an EPWP project
  • FTE (Full Time Equivalence) : person days of work and training divided by 230 days

Work opportunities per sector against annual target for 2012-13 (Overall) (1 Apr 2012 – 31 March 2013)


Infrastructure Sector (Prov Govt Depts & Municipalities):

Work opportunities against 2012-13 targets by Province

(end Q4: 1 April 2012– 31 March 2013)


Infrastructure, Environment and Culture and Social Sectors(TOTAL)

(Prov Govt Depts & Municipalities):

Work opportunities against 2012-13 targets by Province

(end Q4: 1 April 2012– 31 March 2013)


Causes for not meeting some of the targets

  • The main causes for not meeting some of the targets as follows:
  • Lack of adequate technical capacity in public bodies to design and implement projects labour-intensively.
  • Delays in implementing projects due to administrative delays like procurement delays.
  • Under-reporting of EPWP work opportunities created on projects.



Measures being undertaken to improve performance

  • Technical support is being undertaken to help public bodies design and implement their projects labour-intensively. Much of the focus is on providing technical support to municipalities that lack technical capacity.
  • Re-orientation courses on labour-intensive methods of construction are being conducted in all the provinces.
  • Public bodies are being provided with assistance to report EPWP work opportunities through data capturing support.


importance of data quality
Importance of Data Quality
  • The EPWP emphasizes good data quality because it is explicitly evidence based and results oriented.
  • Good data are needed to inform the design of interventions and to monitor and evaluate the programmesquantitative progress toward pre-determined targets.
  • Ultimately, the EPWP is committed to accuracy of information for purposes of accountability and, more importantly, for use of quality data to improve programs.
ways epwp ensures good data quality
Ways EPWP Ensures Good Data Quality
  • Data from all public bodies is captured into the EPWP reporting systems as per the prescribed data fields and validation rules.
  • Validation rules are applied to the reported data during collation.
  • Projects that do not pass the validation rules due to poor data quality, those projects are excluded from the final reports.
  • In the cases where the data is found not to be of poor quality, feedback is given to public bodies to implement corrective measures.
introduction to the epwp incentive grant
Introduction to the EPWP Incentive Grant
  • EPWP Incentive Grant was introduced in EPWP Phase II to:
  • Reinforce and reward public bodies that actually implement employment-intensive methods and utilise their existing infrastructure allocations effectively to increase the labour content of infrastructure delivery.
  • Encourage public bodies to meet their targets or hold them accountable
  • Rapidly expand job creation
  • Ensure increased employment-intensity of infrastructure projects
  • Encourage more uniform wage structures
  • Focus on poor, marginalised, rural areas and the willing unemployed
  • Mainstream EPWP criteria & outputs with the core mandates and programmes of implementing public bodies
overview of the epwp incentive grant
Overview of the EPWP Incentive Grant
  • The EPWP integrated grant to provinces and municipalities is applicable to the Infrastructure and, Environment and Culture Sectors.
  • The projects implemented using the EPWP integrated grant in the Infrastructure sector include: roads and storm water projects, sanitation projects and building projects.
  • The projects implementing in the Environmental and culture sector include: Beautification projects, greening projects and Waste collection projects.
  • In terms of expenditure, for the 12/13 financial year, by the end of March 2013, for Provinces, 100% of the grant has been transferred to Public bodies.
  • Challenges experienced regarding the incentives is the low expenditure reports submitted by public bodies to the NDPW.
  • Follow up has been made with different Public bodies with low spending on the integrated grant. Withholding letters were also written to Public bodies that were not complying with the requirements of the grant.
  • Low expenditure in the different Public bodies has been due to internal challenges faced by the public bodies like delays in procurement that affect implementation of projects.
social sector epwp grant for provinces
Social Sector EPWP Grant for Provinces
  • In line with the Conditional Grant Framework in DoRA 2012 the Social Sector EPWP Grant for Provinces has three major output indicators to achieve:
    • Servicing the household
    • Supporting 3 052 non profit organisation(NPOs)
    • Paying stipends to 11 925 beneficiaries
  • For the financial year 2012/13 a total allocation of R217 401 000 was distributed to provinces as follows:
performance of the social sector epwp grant
Performance of the Social Sector EPWP Grant
  • A total of R217 401 million was transferred to the provinces as at the end of March 2012. This is equivalent to 100% of the total allocation to provincial departments.
  • There is no outstanding payment total that still needs to be transferred to the provinces.
  • To date, 85% of the total transfer has been reported as spent by all receiving provincial departments.
report on signing of incentive agreements by provinces
Report on Signing of Incentive Agreements by Provinces
  • A total of 61 departments were sent Agreements to be signed.
  • To date, 38 departments have signed and returned the agreements to the department which is 62% of the total protocols.
  • North West and Gauteng provinces have the least number of protocol agreements signed by their participating departments.
  • Northern Cape and Western Cape participating departments are the only departments that have signed all their protocol agreements.
performance on the epwp integrated grant to provinces
Performance on the EPWP Integrated Grant to Provinces
  • In terms of the EPWP Integrated Grant to Provinces, 100% of the grant has been disbursed by the National Department of Public Works.
  • In terms of expenditure, 90% of the grant has been spent by the eligible Provincial Departments as at the end of March 2013.
  • Full expenditure of the grant was not achieved in Free State, Gauteng, Northern Cape, North West and Western Cape Provinces.
  • Full expenditure has not been achieved by the public bodies because of delays in implementation of projects.
performance on the epwp integrated grant to municipalities
Performance on the EPWP Integrated Grant to Municipalities
  • In terms of the EPWP Integrated Grant to Municipalities, 100% of the grant has been disbursed by the National Department of Public Works.
  • In terms of expenditure, 53% of the grant has been spent by the eligible Municipalities as at the end of March 2013.
  • The expenditure of the municipalities varies across the different provinces. Expenditure is highest for eligible municipalities in the Western Cape at 78%.
  • The worst expenditure is by Municipalities in KwaZulu-Natal at 38% mainly due to poor reporting on expenditure.
  • Follow up is being made to the different public bodies to provide reports.
measures taken to ensure low capacity municipalities access incentive grant
Measures Taken to Ensure Low Capacity Municipalities Access Incentive Grant
  • Re-orientation workshops on employment-intensive methods
    • Municipal officials trained on design, implementation, monitoring and reporting on employment-intensive projects
  • Road Shows on Integrated Grant Held in Provinces
    • Road shows held in all provinces.
    • Items covered included; eligibility requirements, conditions of the grant and reporting requirements.
measures taken to ensure low capacity municipalities access incentive grant cont d
Measures Taken to Ensure Low Capacity Municipalities Access Incentive Grant … Cont’d
  • Project visits conducted to Monitor compliance on EPWP
    • In all provinces to monitor compliance and to provide implementation advice
    • Total of 887 projects being implemented in municipalities were visited. Of the projects visited, 526 were in the Infrastructure Sector, while 361 were in the Environment & Culture Sector
    • Information verified on site included; number of work opportunities, person-days of work, as well as branding
    • Compliance items like attendance registers, employment contracts and payment registers also verified
    • Information on location of projects including geo-coding also obtained
measures taken to ensure low capacity municipalities access incentive grant cont d1
Measures Taken to Ensure Low Capacity Municipalities Access Incentive Grant … Cont’d

Additional Technical Capacity Appointed to Support Municipalities

  • Service providers appointed to complement NDPW technical support team in supporting municipalities in November 2012
  • With additional resources more municipalities will be covered and each municipality will get more focused attention.
epwp ii beyond strategy going forward
EPWP II & Beyond: Strategy going forward
  • Consolidation - Growing the existing EPWP programmes; focus will be on:
    • Improving reporting
    • Expand the number of public bodies participating in delivering EPWP activities
    • Improve the labour intensity of the existing programmes
    • Expand the size and scope of existing programmes
    • Improve the profile, packaging and promotion of the existing programmes, including developing flagship programmes as part of the non-state sector
impact of epwp purpose and objectives of research
Impact of EPWP: Purpose and Objectives of Research
  • The EPWP Evaluations and Research unit continuously conducts studies as per the M&E framework.
  • The studies include:
    • Process evaluation which examines the efficiency and effectiveness of program implementation processes
    • Impact evaluations to determine the impact of the programme on beneficiaries and impact of the programme in reducing unemployment.
impact of epwp on beneficiaries lives
Impact of EPWP on Beneficiaries Lives
  • “I have gained a lot of life skills as a breadwinner I can take care of my family including orphans”.
  • “I became more responsible as a citizen and husband, I\'m now capable of doing things for my family that I couldn’t do before like paying school fees”.
  • “I was able to build myself a proper house, a brick house so that my family could be protected from rains”.
  • “With the money I get from EPWP, I managed to build up a two roomed brick house and moved out of a shack. Enkosi EPWP”
  • “I didn’t have a job for many years but now I am working as a carer and getting experience on how to deal with peoples health problems in their homes”.
  • “I have a certificate and I am going to use it in future when I am looking for another job and I am also gaining experience”
impact of epwp on beneficiaries lives1
Impact of EPWP on Beneficiaries Lives……..
  • “I managed to buy a deep freezer for myself. I plan to use it to open a small business and sell meat in the township. I will make money after the project has ended”
  • “Thanks to the EPWP project, my family has managed to live a little more comfortably and afford some luxuries. I even bought a television set; if it was not for the EPWP project, I never would’ve been able to afford it.”
  • “ I thank this project, they helped me to open my first bank account ever. I am 59 years of age and have a bank account. At the end of the month when my salary is deposited, the bank sends me an sms’.
impact of epwp on beneficiaries lives2
Impact of EPWP on Beneficiaries Lives………..
  • “I used to sleep on the floor with my children. With the money I received from the project, I managed to buy a Seally bed. We now sleep on a proper bed and our lives have changed”
  • “ The project gave me skills. I was trained to be a teacher for children. I now know more about children and I enjoy teaching them”
  • “I now have my own vegetable garden due to the experience that I have gained while working on this project. We don’t buy vegetables anymore”
impact of epwp on communities
Impact of EPWP on Communities
  • “People got work from the project, they managed to build their houses, others are educating their children, most of the people are now working in this community”
  • “For those that use their cars, we have helped them by closing potholes and cut trees along side of the roads”.
  • “Before kids were suffering others had no food but now come to us and we help them with food and homework\'s”
  • “other children come to schools without food and now the parents know their children will get food at school they wont stay hungry the whole day.”
  • “Roads are maintained after heavy rain and the cars are able to go on the streets”
community impact
Community Impact…….
  • “Roads being constructed now and again taxis are able to come even if its raining”.
  • “The community is clean and people are no longer getting mugged because we cutting the bushes down. The crime rate has reduced in our community”

Thank you.

  • Stanley W. Henderson
  • Cell: +27 (83) 676 5119
  • +27 (12) 310 5110
  • Email: [email protected]