9 minute read
Youth Employability In South Africa
By Ray-Ann Sedres, Head of Foundation, Sanlam
The National Business Initiative (NBI) believes in collective action and collaboration to effect change; building a South African society and economy that is inclusive, resilient, sustainable and based on trust.
Driving Socio Economic Inclusion Across Our Business
In my role, I am driven by a passion to ensure that our business is a beacon of Diversity, Equity and Inclusion (DEI) across all territories in which we operate. I believe that our success is intertwined with the success of our stakeholders, and that’s why my team and I work determinedly to ensure that our transformation interventions are executed across the business, aligning with our business strategy.
We take a holistic approach to DEI, overseeing initiatives that promote financial inclusion through our products and services
Increasing Access To Markets And Reducing Inequality
Through our supply chain, we strive to increase access to markets for SMMEs and partners, providing them with the resources and support they need to thrive. We also work to reduce the risk protection gap by enabling financial education and business development support for the SMMEs and the broader society, thereby empowering individuals and communities to make informed decisions about their financial futures.
Compliance And Beyond
In addition to driving DEI initiatives in South Africa, my team and I also oversee our Broad-Based Black Economic Empowerment (B-BBEE) verification process, ensuring that we meet our compliance obligations. But we don’t stop there –we also guide our business’s socio--economic programmes that address pressing socio-economic challenges facing the communities., recognizing that our success is inextricably linked to the success of the communities we serve.
In this role, I am committed to creating a more equitable and just society, where everyone has the opportunity to thrive.
Barriers Preventing Young People In South Africa From Securing Meaningful Employment
South Africa faces significant challenges in terms of youth unemployment, with the unemployment rate among youth being around 55%. Several barriers contribute to this issue, and some of the biggest barriers to young people securing meaningful employment include:
Lack of job opportunities: which makes it difficult for young people to gain work experience.
Limited work experience: As the youth comes fresh out of tertiary institutions or matric, they often struggle to gain work experience, due to most companies requiring experience as a prerequisite for employment.
Socio-economic factors: Poverty, lack of access to resources, and other socio-economic factors can hinder young people’s ability to pursue education and job opportunities.
These barriers make it challenging for young people in South Africa to secure meaningful employment. Addressing these challenges will require a comprehensive and collaborative approach from government, civil society, the private sector, and individuals
Supporting South African youth through partnerships with organisations such as Youth Employment Services and the Youth4Tourism (Y4T) programme
The Youth4Tourism (Y4T) initiative, is a collaborative effort that aimed to tackle the country’s pressing youth unemployment crisis. This bold endeavour brought together leading corporates, with Sanlam at the forefront, to empower young minds and spark economic growth.
The journey began with a clear vision: to up-skill youth in the Gig Economy, unlocking employment and entrepreneurial opportunities that would stimulate the critical tourism sector, intertwined with other industries. This strategic alignment supported Sanlam’s transformation and sustainability goals, paving the way for youth empowerment, economic growth, job creation, and industry development.
As Y4T embarked on its maiden voyage, the results were nothing short of remarkable. In Phase One, which spanned from October 2023 to July 2024, the initiative created over 1,040 jobs, surpassing its initial target of 1,000. Fifteen corporates, including Sanlam, joined forces to drive this movement, with repeat support from several partners. The youth beneficiaries of Y4T secured an impressive R2 million plus in gigs, directly benefiting from their newfound skills. Moreover, 35 young entrepreneurs took the bold step of establishing their own businesses.
During this phase, we held the Y4T Exhibition, which was a resounding success, showcasing the talents and achievements of the young participants.
As the programme continued to gain momentum, it expanded its reach, placing youth in international chambers of business, including the Italian, Spanish, UK, Indian, and Swiss chambers.
The then focus shifted to supporting 60 youth-owned SMMEs (Small, Medium, and Micro Enterprises) from the first-year cohort. The goal was to catapult them to the next level, and the progress was astounding. 48 businesses had initiated the process of digitising their financial records and ensuring tax and CIPC compliance, making them eligible for Enterprise and Supplier Development opportunities.
Youth-owned businesses began integrating into corporate supply chains, of YES corporate partners. As the journey continues, the focus remains on supporting these ambitious youth, developing a further pipeline of 1 000 new participants, and enhancing entrepreneurship and job creation opportunities. The goal is clear - to create a thriving ecosystem that fosters growth, innovation, and prosperity for generations to come.
Youth4Tourism is more than just an initiative - it’s a beacon of hope, a testament to the power of collaboration, and a reminder that, together, we can create a brighter future for all.
Integrating Diversity, Equity And Inclusion Into Sanlam's Transformation Agenda.
As mentioned earlier, we take a holistic and integrated approach to driving diversity equity and inclusion into the business and touches our entire value chain. Through the products and solutions, we have on offer in driving financial inclusion, to the diversification of our staff compliment and supply to mention only a few areas.
Our journey began by examining our business’s value chain, identifying areas where we could integrate DEI principles to create a more equitable and inclusive environment. I worked closely with our leadership team to develop and execute transformation interventions that are aligned with our business strategy, ensuring that our efforts were deliberate, measurable, and sustainable.
Are We On Track To Achieving Vision 2030?
Youth unemployment is a pressing concern in South Africa, and partnerships between the government and private sector play a crucial role in addressing this issue.
In my view, the effectiveness of these partnerships is mixed. On the positive side, initiatives such as the Youth Employment Service (YES) and the Presidential Youth Employment initiative have shown promising results in creating job opportunities and providing training for young people. The private sector has also made significant contributions through apprenticeships, internships, and mentorship programmes.
However, despite these efforts, youth unemployment remains a significant challenge.
Regarding Vision 2030, South Africa’s National Development Plan aims to reduce unemployment to 6% by 2030. While there have been some improvements in recent years, the current pace of progress suggests that achieving this target might be challenging.
To get back on track, I believe that the government and private sector need to intensify their collaboration and focus on the following:
Education and skills development: Equip youth with skills that are portable i.e. the ability to use the skills both as an employee but also be able to start their own businesses.
Entrepreneurship support: Encourage entrepreneurship among young people by providing access to funding, incubation, and mentorship programmes. Entrepreneurship and small business development can significantly contribute to solving youth unemployment. By supporting entrepreneurship and small business development, we can empower young people to create their own opportunities, drive economic growth, and address the pressing issue of youth unemployment.
Addressing structural issues: Tackle underlying structural issues, such as inequality and poverty, which contribute to high levels of youth unemployment.
Drive collaboration: Strengthen partnerships between government, private sector, and civil society organisations to ensure a unified approach to addressing youth unemployment.
By working together and prioritising these areas of focus as a collective, we can make meaningful progress toward reducing youth unemployment and achieving Vision 2030.
Technology And Digital Transformation Creating New Job Opportunities For Young People
Technology and digital transformation have opened up a vast array of new job opportunities for young people. With the rapid advancement of digital technologies, many industries are undergoing significant changes, creating new career paths and fields that didn’t exist a decade ago.
For instance, the rise of e-commerce, social media, and mobile devices has led to an increased demand for digital skills such as software development, data analysis, digital marketing, and cybersecurity. Additionally, emerging technologies like artificial intelligence, virtual and augmented reality, and blockchain have created new opportunities in areas like AI engineering, VR/AR development, and blockchain development.
Furthermore, the gig economy and online platforms have made it possible for young people to work as freelancers or entrepreneurs, offering services such as content creation, graphic design, and online tutoring.
However, it’s essential to note that it’s not just about having access to new job opportunities, but also about having the skills to thrive in a rapidly changing job market. Therefore, it’s crucial for young people to develop skills that are adaptable, transferable, and relevant to the digital economy.
In summary, technology and digital transformation are creating new job opportunities for young people by generating new industries, demanding digital skills, and enabling remote work, freelancing, and entrepreneurship. As technology continues to evolve, it’s essential for young people to develop the skills and adaptability needed to thrive in this rapidly changing job market.
Practical Steps Employers, Policymakers, And Communities Can Take To Improve Youth Employability In South Africa
Improving youth employability in South Africa requires a multi-faceted approach that involves collaboration among employers, policymakers, and communities. Here are some practical steps that can be taken:
Employers:
Invest in skills development programmes that equip young people with the skills and competencies required for the changing work environment.
Offer internships, apprenticeships, and mentorship programmes to provide young people with hands-on work experience.
Consider implementing flexible work arrangements, such as part-time or remote work, to attract and retain young talent.
Policymakers:
Implement policies that support skills development, such as vocational training programs, career guidance, and mentorship initiatives.
Develop programmes that address the root causes of youth unemployment, such as poverty and lack of education.
Encourage public-private partnerships to create jobs and opportunities for young people.
Communities:
Encourage entrepreneurship and innovation by providing support for start-ups and small businesses.
Encourage community-based initiatives, such as volunteer programs, that help young people build skills and gain work experience.
By working together, we can create an environment that supports the development of young people and prepares them for the work environment.
Looking Forward
I am looking forward to seeing our socio-economic programmes continuing to make an impactful difference in the lives of the youth, communities and micro and small businesses we touch and to facilitate a collaborative drive to addressing the social challenges facing our society.
