NATIONAL YOUTH ECONOMIC EMPOWERMENT

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NATIONAL YOUTH ECONOMIC EMPOWERMENT POLICY
IMPLEMENTATION FRAMEWORK PRESENTATION TO THE
PORTFORLIO COMMITTEE BY JEFFREY NDUMO CHIEF
DIRECTOR DATE 18 JUNE 2008, 09H00
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Economic challenges facing the Youth
Outline
Economic Implications of the Youth Directorate
Youth Economic Empowerment Legislative Framework
National Youth Economic Empowerment Policy
National Youth Economic Empowerment Programmes
Projects currently being rollout and implemented
Tracking Performance on Youth Economic
Empowerment
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Economic challenges facing the Youth

• Young people between the ages of 14 and 35 years
  constitute 34.6 of the South African population
  (Stats SA, 2007).
• 2007 Labour Force Survey registered unemployment
  as measured at 23, youth constitute 73 of the
  unemployment figure.
• Employment concentrated in the service sector
  mainly temporary work, which constitute limited
  benefits and employment security
• CATEGORIES MOST AFFECTED BY UNEMPLOYMENT INVOLVE
• African youth
• Youth with lower levels of education, especially
  those with secondary education constituting the
  greatest proportion of unemployed youth
• Unemployed graduates especially African
  graduates

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Economic challenges facing the Youth, cont

• Possible reasons for youth unemployment
• Lack of enough available jobs to absorb
  unemployed youth 57
• Lack of adequate work experience among youth 25
• Inadequate and inappropriate educational skills
  (i.e. covering areas such as entrepreneurial and
  various technical skills) 23
• South African youth own less percentage of the
  economy and remain marginalised in the mainstream
  economy (particularly black young women and men).
• Poverty among young people aged 25 to 35 stems
  from unemployment
• Lack of start up capital for young entrepreneurs
• The private sector has not played a role in
  contributing to youth development, particularly,
  financial institutions through extending access
  to capital to young entrepreneurs.

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Economic implications of the dti Youth Directorate

• The dti has long recognised the significance of
  fostering youth economic empowerment as integral
  part of South Africas economic transformation.
• The dti last year has established the Youth
  Directorate whose main task is to promote youth
  economic empowerment in South Africa.
• The youth directorate comprises of a director and
  two deputy directors
• The dti through the youth directorate is
  currently in the process of finalising the Youth
  Economic Empowerment Policy that will guide the
  dtis drive to promote youth economic empowerment.

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Youth Economic Empowerment Legislative Framework

• The dtis Youth Economic Empowerment Policy will
  form an integral part and aligned with several
  youth focused legislative and policy frameworks
  adopted by government aimed at creating conducive
  environment for youth economic empowerment in
  South Africa. These, amongst others, include
• The Constitution of the Republic of South Africa,
  1996
• National Youth Commission Act, No 19 of 2006
• National Youth Policy (2000)
• National Youth Development Policy Framework,
  2002-2007
• National Youth Enterprise Strategy, 2006
• Reviewed National Youth Development Policy
  (2012) and

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National Youth Economic Empowerment Policy

• Contribute towards increasing the level of youth
  participation in the mainstream economy
• Contribute towards increasing youth income
  through skills development and promotion of youth
  entrepreneurship
• More youth participation in the mainstream
  economy through youth enterprise development and
  employment creation
• Contribute towards increasing the real market in
  the economy and the growth of the SA economy

Mainstream Economy
Mainstream Economy
Youth Upliftment
More economic participants through mainstreaming
youth in the economy
Second Economy
Higher Economic Growth through promoting Youth
owned and managed Enterprises
Second Economy
A Bigger Market for All
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Principles guiding the National Youth Economic
Empowerment Policy

• Promote competitive youth owned and managed
  enterprises
• Redressing the imbalances of the past through
  youth enterprise development
• Promoting a culture of youth entrepreneurship
• Promote gender inclusion and youth participation
• Promote transparency and accessibility
• Promote accountability and evaluation of youth
  economic empowerment
• Entrepreneurship enterprise management and
  ownership must be encouraged as a viable career
  option for young people

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Youth Empowerment programmes projects currently
implemented
Projects Desired Outcomes
National Youth Economic Empowerment Policy Implementation Framework (still to be approved by the Minister of Trade Industry) To create a conducive environment for the promotion of youth economic empowerment. Create youth owned enterprises and employment Promote youth entrepreneurship skills development among the youth
The dtis National Youth Service Programme (NYS) Opportunities to young people to learn, skills training and gaining work experience through services Engages young people in activities that benefit communities and fosters in them a sense of patriotism and nationhood. Fosters responsible citizenship and ensures that young people are not marginalised in the overall national development effort.
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National Youth Service Programme
Community Enterprise Development Officers Project
(CEDOP), 2008/09

• Promotion of NYS through the Community Enterprise
  Development Project in partnership with Umsobomvu
  Youth Fund.
• To train a pool of 138 Community Enterprise
  Development Officers (CEDOs) through a structured
  training programme culminating in them acquiring
  a Certificate in Micro-finance pitched at NQF
  level 5 6.
• These cadres of young people will be capable of
  deal origination, loan administration and assist
  in entrepreneurial development aspect.
• The CEDOs will be sourced from 63 district
  municipalities. These districts are also expected
  to mainly provide opportunities for services to
  these CEDOs.
• The dti and its agencies will also uptake some of
  these CEDOs in terms of opportunities for
  services.
• The project will run for 12 months and is
  currently being rollout.
• When successful, it is anticipated to be scaled
  up in the next financial year.

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National Youth Service Programme, cont
The dti National Youth Service Project, 2009/10

• Promotion of the National Youth Service within
  the dti divisions and agencies.
• Young volunteers will be provided with
  opportunities for services within the various dti
  programmes and projects involving all the dti
  relevant business units and agencies.
• Relevant programmes and projects will take young
  volunteers in line with their requirements and
  also add value to the young people in terms of
  training and acquiring experience.
• Preparation for the implementation will be
  completed this year.
• Due to the high number of programmes and projects
  that may qualify a substantial number of youth
  are anticipated to receive opportunity for
  service.
• The project will be carried out in partnership
  with Umsobomvu Youth Fund.

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Youth Empowerment Programmes Projects currently
implemented, cont.
Projects Desired Outcomes
Aligned youth economic empowerment to all dti policies, strategies and programmes. To mainstream youth economic empowerment in all policies, strategies and programmes being implemented by the dti. Ensure the promotion of youth economic empowerment in the economy.
National Youth Business Chamber The dti in partnership with youth chambers and organisations is facilitating the formation of a National Youth Business Chamber, a national umbrella chamber for all youth business organisations and associations
Youth Entrepreneurial Promotion and Awareness Programme Aim to increase promotion and awareness of youth entrepreneurship and enterprise development opportunities

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Youth Empowerment Programmes Projects currently
implemented, cont.
Projects Desired Outcomes
Aligned youth economic empowerment to all levels of government policies, strategies and programmes. To mainstream youth economic empowerment in all policies, strategies and programmes being implemented by all tiers of government. Ensure the promotion of youth economic empowerment in the whole economy.
Youth Owned E-Cooperatives The dti the DoC are promoting a programme aimed at creating E-Cooperatives owned by the youth in South Africa
Mechanism to monitor Youth Economic Empowerment Development of the monitoring instrument aimed at tracking policy implementation on youth economic empowerment across all tiers of government

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Tracking Progress on Youth Economic Empowerment

Performance of the National Empowerment fund on Youth Economic Empowerment Performance of the National Empowerment fund on Youth Economic Empowerment
NEF invested portfolio June, 2004- 31 March 2008 Out of a portfolio of 117 transaction by number, the NEF has invested in 6 enterprises that are wholly or partly-owned by Black persons under the age of 35 years.
Name of company Province Sectors
Adega Restaurant Gauteng Food and Agro-processing
Barcelos Mthatha Eastern Cape Food and Agro-processing
Perfect 10 Gauteng Services
Valueline 145 (PTY) Ltd. Gauteng Transportation
Garlo World CC. Gauteng Transportation
Roseko Caterers Cleaning Services CC. Gauteng Services
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Tracking Progress on Youth Economic Empowerment,
cont.
Performance of the National Empowerment fund on Youth Economic Empowerment Performance of the National Empowerment fund on Youth Economic Empowerment
BEE retail product, Asonge Share Scheme,2007/08 10,640,000 MTN shares, worth R1,14bn, were offered to qualifying investors, which include investors between the ages of 18-35 years of age, plus one bonus share for every 10 held after 24 months.

THE NEF ASONGE SHARE SCHEME OFFER AGE ANALYSIS THE NEF ASONGE SHARE SCHEME OFFER AGE ANALYSIS
PROVINCE NUMBER OF INVESTORS 35 OR UNDER
Eastern Cape 2,697
Free State 2,930
Gauteng 27,031
KwaZulu Natal 9,333
Limpopo 4,550
Mpumalanga 3,508
North West Province 3,554
Northern Cape 827
Western Cape 5,182
TOTAL 59,612
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Tracking Progress on Youth Economic Empowerment,
cont.
Performance of The South African Microfinance Apex Fund (SAMAF) on Youth Economic Empowerment, 2007/08

The approval for transfers was 55.2 million vs. R65 million budgeted On lending disbursement R 9 million Capacity building R 10.7 million Borrowers 4 346 No of savers 14 353
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Tracking Progress on Youth Economic Empowerment,
cont.
Performance of The South African Microfinance Apex Fund (SAMAF) on Youth Economic Empowerment, 2007/08

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Tracking Progress on Youth Economic Empowerment,
cont.
Performance of Khula on Youth Economic Empowerment, 2007/08

Business approvals to Channel to partners up by
more than 60
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Tracking Progress on Youth Economic Empowerment,
cont.
Performance of Khula on Youth Economic Empowerment for 2007/08 still to be determined in the future SMME Client profile

• Significant increase in disbursements to Black
  SMEs
• Investments in GP/WC/KZN account for 70
• Disbursements to women at 32
• 3 558 end-user facilities (ex group loans)
• Youth client to be determined in the future

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Tracking Progress on Youth Economic Empowerment,
cont.

Performance of SEDA on Youth Economic Empowerment, 2007/08 ( Statistics for youth beneficiary base was not recorded before, but will be recorded in the future)
A total of 140,779 small enterprises assisted through branches and EICs 20,853 entrepreneurs benefited from training programmes 19,314 through branches and EICs 1,539 through National Programmes 783 clients assisted through Sector specific programmes on tourism, agribusiness and cooperatives support
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Tracking Progress on Youth Economic Empowerment,
cont.

Performance of SEDA on Youth Economic Empowerment, 2007/08 ( Statistics for youth beneficiary base was not recorded before, but will be recorded in the future)
15,117 clients assisted through the call centre 349,406 unique visits recorded on the seda web-site 98 new SMMEs established through seda Technology Programme
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Tracking Progress on Youth Economic Empowerment,
cont.

Performance of ITHALA Development Finance Corporation Limited on Youth Economic Empowerment Performance of ITHALA Development Finance Corporation Limited on Youth Economic Empowerment
R 50 million reserved for funding of youth owned enterprises through a range business products by ITHALA Financial Services, 2007/08 R 50 million reserved for funding of youth owned enterprises through a range business products by ITHALA Financial Services, 2007/08
Eleven young graduates and diplomates have also been taken into ITHALAs Business Centres under a learnership programmes, exposing them to a variety of administrative and financial skills. 650 youth delegates have received SMME training throughout the four regions of Kwazulu Natal.
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Concluding Remarks

The dti has recently established a fairly new Youth Directorate designed to promote youth economic empowerment in South Africa. Currently, the dti is finalising the Youth Economic Empowerment Policy Implementation Framework anticipated to be approved by the Minister of Trade and Industry this year. Programmes and Projects that have recently been conceptualised are highlighted with some already in the early phase of implementation. Tracking of youth economic empowerment has started within the dti development agencies and is expected to be extended to cover other key role players involving all tiers of government (i.e. national, provincial and local level of government).
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Contact Details


Mr. Jeffrey Ndumo Chief Director the
dti Enterprise and Industry Development Division
(EIDD) Telephone [phone] Fax 012 394
2608/2631 E-mail JNdumo_at_thedti.gov.za
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THANK YOU