NATIONAL YOUTH ECONOMIC EMPOWERMENT POLICY & IMPLEMENTATION FRAMEWORK

1. NATIONAL YOUTH ECONOMIC EMPOWERMENT POLICY & IMPLEMENTATION FRAMEWORK PRESENTATION TO THE PORTFORLIO COMMITTEE BY JEFFREY NDUMO; CHIEF DIRECTOR DATE: 18 JUNE 2008, 09H00

2. Outline Economic challenges facing the Youth 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

3. 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

4. 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.

5. Economic implications of the dti Youth Directorate • The dti has long recognised the significance of fostering youth economic empowerment as integral part of South Africa’s 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 dti’s drive to promote youth economic empowerment.

6. Youth Economic Empowerment Legislative Framework • The dti’s 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

7. 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

8. 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

9. Youth Empowerment programmes & projects currently implemented

10. 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.

11. 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.

12. Youth Empowerment Programmes & Projects currently implemented, cont.

13. Youth Empowerment Programmes & Projects currently implemented, cont.

14. Tracking Progress on Youth Economic Empowerment

15. Tracking Progress on Youth Economic Empowerment, cont.

16. Tracking Progress on Youth Economic Empowerment, cont.

17. Tracking Progress on Youth Economic Empowerment, cont.

18. Tracking Progress on Youth Economic Empowerment, cont. Business approvals to Channel to partners up by more than 60%

19. Tracking Progress on Youth Economic Empowerment, cont. • 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

20. Tracking Progress on Youth Economic Empowerment, cont.

21. Tracking Progress on Youth Economic Empowerment, cont.

22. Tracking Progress on Youth Economic Empowerment, cont.

23. Concluding Remarks

24. Contact Details Mr. Jeffrey Ndumo Chief Director: the dti Enterprise and Industry Development Division (EIDD) Telephone: 012 394 1608/1631 Fax: 012 394 2608/2631 E-mail: JNdumo@thedti.gov.za

25. THANK YOU