World Bank Private Sector Development Specialist Dr Chunlin Zhang says economic growth is the primary solution for unemployment in South Africa. Dr Zhang was speaking at the Economic Policy Dialogue on Entrepreneurship and Youth Unemployment in South Africa which was hosted by the Department of Trade and Industry, (the dti) in Midrand, yesterday.
The dialogue, attended by more than hundred stakeholders from youth organisations, the business community, Non-Governmental Organisations and government institutions is hosted by the dti to encourage dynamic debate on contemporary issues that impact on our economy.
Dr Zhang said issues of youth unemployment were not so different from the South African development challenges, and that the primary solution for high unemployment was higher sustainable and inclusive economic growth.
“Higher economic growth has more potential in job creation and employment. While this can be achieved, growth cannot be at the expense of sustainability and the environment,” explained Zhang.
He cited education and training as short-term solutions to unemployment and said South Africa’s most urgent challenge is the 56% unemployment rate of youth in 15-34 years of age.
He also said entrepreneurial activities can be a spin-off from big businesses and Foreign Direct Investment or be developed within an existing business other than education and training.
“South Africa boasts a relatively favourable investment climate in general,” said Zhang.
The Chief Executive Officer of Osiba Management, Mr Septi Bukula said there was an urgent need to create sustainable jobs for the youth.
“Great things South Africa needs the most is a focused national programme to foster research and development based entrepreneurship that will help post graduate research students to commercialise their research,” added Bukula.
Since 2011 the Economic Policy Dialogue hosted by the dti, acts as a key platform to trigger discussions in economic policy. Through these sessions numerous specialists and opinion makers have been brought together in a unique environment to foster robust dialogue on important economic topics.
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