The Eskom Contractor Academy addresses the national imperative to increase the number of functional small and medium enterprises, while also improving the quality of businesses that Eskom can procure from. This initiative aims to build the capacity of historically disadvantaged entrepreneurs, particularly youth and black women, to compete in the formal economy. The aim is to empower previously disadvantaged Contractors/Suppliers with fundamental business management skills to sustain and grow their companies.
Project overview
Established in 2007/08, the programme is run as a partnership between Eskom, Edupark, (NPC of the University of Limpopo) and the University of Limpopo. The programme is fully funded by the Eskom Development Foundation (EDF). The project supports the government with regards to job creation, skills development and poverty alleviation. It is a national Flagship programme on Enterprise Development within the Eskom Development Foundation.
The Eskom Contractor Academy addresses the national imperative to increase the number of functional small and medium enterprises, while also improving the quality of businesses that Eskom can procure from. This initiative aims to build the capacity of historically disadvantaged entrepreneurs, particularly youth and black women, to compete in the formal economy. The aim is to empower previously disadvantaged Contractors/Suppliers with fundamental business management skills to sustain and grow their companies.
Activities
Owners of small and medium enterprises participate in an eight-month programme, attending classes for one week a month, during which time they are provided with accommodation, transport and computers. It is implemented nationally in all provinces.
The Eskom Contractor Academy curriculum includes:
- Business Skills and Finance
- Project Management 1 &2
- People Management and Leadership
- SHERQ (Safety Health Environment Risk and Quality)
- Supply Chain management
- NEC (New Engineering Contract)
- HIV Aids in the Workplace
The project runs on continuous improvement principles. The curriculum is revised every year to include all latest developments, updates, changes etc. in the specific modules.
These activities are done in partnership with Edupark (NPC of University of Limpopo) and University of Limpopo.
Challenges
It is a very intense programme which runs in all the provinces in South Africa. Selection process, This entails briefing sessions, 80 site visits after implementation, and finally graduation after successful completion.
The programme does not focus on developing future entrepreneurs, but rather training contractors and suppliers who have been in business for a minimum period of 2 years with a registered business. Proper selection of “the right” committed student has a direct impact on the outcome of the programme. Students need to complete the entire programme attending a full week a month for 8 months. During this period personal attention to students are of the utmost importance. Programme need to be managed formally, and comply with all project management principles in line with PMBOK.
Attention to detail and very close relationship with students and stakeholders is vital. This programme addresses a critical requirement in terms of compilation of business plans, managing finances, implement and comply with all SHERQ requirements (compilation of a Safety File) managing staff professionally, implement supply chain management principles and being able to tender on the new Engineering Contract 9NEC) Many Contractors/ Suppliers pay for these services.
Results
Regular monitoring and evaluation processes help to ensure programme quality. Edupark monitors the attendance, results, finances and logistics of the programme and produces an annual Academy report for the Eskom Foundation. Edupark and the EDF have monthly feedback meetings to ensure optimal functioning of the programme and supporting elements. A formal impact assessment was conducted by Trialogue and Ask Africa on the programmes within the Foundation. The Academy was rated exemplary. A formal internal investigation was also conducted within Eskom to determine the utilization of Contractors within Eskom. We are currently in progress with a study on the last 3 years students.
The Total number of students trained is 1311, with a Success rate over 97%. 176 students in progress in all provinces for 2018/19. Since 2010, 645 contracts to the value of R3.003 billion have been awarded to students of Eskom Contractors Academy.
As a result, many students have grown their companies and, in the process, appointed new staff. This has a direct social impact on communities. One student, for example, grew her staff from 20 to over 800.
The Eskom brand receives excellent exposure through this initiative, with 89% of beneficiaries reporting good perceptions of the company. Media coverage and advertorials have also been used by Eskom to promote the Academy and its benefits.
Since inception, Eskom has awarded over R3billion worth of contracts to students who have completed the programme successfully.