Youth unemployment needs innovative solutions
JOB creation initiatives in South Africa don’t usually get good press. We are constantly fed alarming figures from Statistics South Africa, which says that unemployment is around 36%, the majority of whom are youth.
While the outlook does not look bright, even a glimmer of hope involving young people ought to be celebrated.
One such recent example is making a concerted effort to shift the dial concerning tangible opportunities for young people in South Africa. Chieta, the Chemical Industries Sector Education Training Authority, in partnership with the University of Johannesburg Business School and Chemin, a notfor-profit South African technology incubator, held its first graduation ceremony for small businesses that completed their inaugural entrepreneurship programme on November 10.
The impactful initiative represents a R2 million investment in the programme and is part of Chieta’s long-term vision to fund 2 000 young entrepreneurs by 2025.
This is a small initiative. However, located in the bigger picture of a national industry under the banner of The Jobs Fund, something positive is happening. An estimated R13.5 billion or more has been spent on initiatives and public-private partnerships, which have led to the creation of 280 000 jobs in its first decade, with fantastic success stories in the township economies, farming and health care.
The Jobs Fund was established in 2011 with a R9bn allocation from the National Treasury, offering a targeted programme of support for effective labour market interventions leading towards job creation. But more important than statistics is the impact of these initiatives on society.
Another success has seen the R600m Horton Fund grant to help reduce the cost of capital for emerging farmers and SMMEs. This has made an enormous difference.
In providing access to quality healthcare in marginalised communities, the Unjani Clinic is an Enterprise Development initiative empowering black women nurses to own and operate their primary health-care clinics. The project develops new businesses, creates new jobs within each clinic and promotes affordable primary health-care.
Given the country’s extensive education and skills training needs, the fund has provided training programmes that improve the chances of youth securing employment. Two initiatives are opening the door to self-employment. One is via the Columba Leadership programme, which delivers a programme to school-going learners to help them develop 21st-century workplace skills. At the same time, SmartStart aims to improve access to early learning in the most vulnerable areas in South Africa while creating self-employment and employment opportunities.
The private sector has also been critical in achieving the fund’s goals. The Automotive Industry Development Centre by the Japanese automobile manufacturer Nissan is an incubation hub and training centre that supports artisans and black-owned automotive component suppliers. The project produces qualified artisans and capacitated SMMEs that manufacture and supply automotive components.
A priority one cannot ignore is 4IR; here, the fund has been playing a pivotal role in developing skills through CCI Careerbox, a job creation tool.
Tackling unemployment is not something that they can do alone; the fund has over 100 partners and, through these partnerships, has been able to intervene across multiple sectors of the economy.
It’s easy to become despondent, accepting the narrative that the youth have no future in South Africa. But this is far from the truth. Change is happening, albeit slowly. But if likeminded people replicate these nuggets, the dent in unemployment would surely be more significant.
One would hope so, but spare a thought for those making a difference and giving the youth in South Africa and on the continent hope.