Programme Director
Minister of Labour – Honourable Mildred Oliphant
The Mayor of Umhlathuze Municipality – Cllr E.F. Mbatha
Umhlathuze Municipal Manager – Dr Sibeko
Speaker of Umhlathuze Municipality – Cllr M. Mnqayi
President: Zululand Chamber of Business and Industry – Mr Sizwe Khumalo
Chairperson of Umfolozi Further Education and Training (FET) College – Mr Themba Fakazi
The Rector of Umfolozi FET College – Mr S. Zungu
Distinguished Guests;
Ladies and gentlemen;
Let me take this opportunity to greet everyone present here this morning.
The importance of this meeting cannot be over-emphasized. It addresses one of the most topical issues in this country – youth unemployment and skills shortage, particularly among young people of South Africa.
The media - both electronic and print, as well as social media networks, are abuzz with these issues and in most cases, there seems to be a consensus out there that this administration is oblivious to the plight of the youths that are roaming the streets as a result of unemployment.
It therefore follows that, this initiative between Umhlathuze Municipality and Umfolozi FET College is exactly the kind of intervention that is required to address these challenges. It particularly comes during the month of June – the month that is dedicated to the youths of South Africa. I therefore wish to take this opportunity to, on behalf of the youths that will benefit from this partnership, express our gratitude for the leadership demonstrated by the leaders of this Municipality and Umfolozi FET College, as well as the Zululand Chamber of Business and Industry.
Indeed, it is these steps however small, that will help address the challenge of unemployment in South Africa. If this initiative is replicated in all the municipalities of KwaZulu-Natal (KZN), it would result in major reductions of unemployment among our youths.
Furthermore, it would ensure that this province has a constant supply of young people with skills. And of course, that is not all, it will further help this province to have young people who are self-sufficient and can also create job opportunities for other young people.
In February 2011, the National Treasury released a discussion document entitled: Confronting youth unemployment: policy options for South Africa. In this document, the National Treasury asserted that, “high youth unemployment means that young people are not acquiring the skills or experience needed to drive the economy forward.”
This, it further said, inhibited the country’s economic development and imposed a larger burden on the state to provide social assistance. And I think we can all attest to this statement. I do want to delve just a bit further on this and look at some of the statistics as articulated in the document:
- About 42 per cent of young people under the age of 30 are unemployed compared with less than 17 per cent of adults over 30 years of age.
- Only one in eight working age adults under 25 years of age have a job compared with 40 per cent in most emerging economies such as China, Brazil and India.
- Employment of 18 to 24 year olds has fallen by more than 20 per cent (230 000) since December 2008.
- Unemployed young people tend to be less skilled and inexperienced – almost 86 per cent do not have formal further or tertiary education, while two-thirds have never worked at all in their lives.
You will agree with me that these statistics are alarming.
By any measure, one is tempted to agree with the commentators who assert that, this situation is like a ticking time-bomb. The question many people ask is why are young people unemployed. The responses to this question are varied. But there seems to be consensus among researchers and opinion-makers that, employers look for skills and experience as they regard unskilled, inexperienced job seekers as a risky investment.
Clearly what this says is there is an agreement that education is not a substitute for skills. So what do we then do as government? And I think herein, lies the answer. Exactly what you are doing here in Umhlathuze Municipality. You are offering young people an opportunity that has become so scarce. And for this we really applaud your efforts.
The Department of Basic Education and I believe, the institutions of higher learning together with the Department of Higher Education and Training are very much committed to ensuring that we produce learners and students that will go on to become productive members of the society. However, without municipalities, businesses as well as everyone coming on board to assist these young people after their schooling years, all these efforts will amount to nothing. The problem of unemployment will continue to grow.
The consequence will be exactly what we see today, high rate of crime, young people who refuse to study since it does not necessarily guarantee them work afterwards. Young people who think “tenderpreneurship” at the expense of education, is the way to go. Of course, there is nothing wrong with young people who aspire to become business-people.
But the problem arises when they solely depend on tenders when in most cases, they possess not even an ounce of what is called business acumen. So even if they do become lucky to lend a contract or two, but because they lack business management skills, they falter, fail and fall back into the very same situation that they were trying to escape, that is, poverty and helplessness.
So much has been said about the New Growth Path. It calls on the state to provide imaginative and effective strategies to create the millions of new jobs that South Africans need. For this to happen, a combination of initiatives that will involve the state, the private sector as well as partnerships with civil society need to be employed.
Memorandum of Agreement
- Partnership between Umhlathuze Municipality and Umfolozi FET College
- It will provide an opportunity for the learners to gain on-the-job experience in areas such as carpentry, welding, motor mechanic etc.
- Training providers will also be conducting of-site training for young people.
- Umhlathuze Municipality will also offer learnerships to 150 out-of-school youth annually, to amass skills as fitters and turners and other skills.
- Other partners such as the Zululand Chamber of Business and Industry, are coming on board and it is envisaged that more companies and factories under the Zululand Chamber of Business will soon follow suit.
Job creation strategy
You will recall that President Jacob Zuma, in his State of the Nation Address of 2011, made a commitment that South Africa would have to create 5 million jobs by 2020.
The six main areas that would be targeted in the bid to create jobs were as follows:
- Infrastructure development
- Agriculture
- Mining and beneficiation
- Manufacturing,
- The green economy and
- Tourism
I think it would be important for the Municipality to look at other areas that will help bring about employment to our youth, particularly agriculture and other areas. We need to find creative and innovative ways of doing things. Government at national level will do very little to help us at this level – we also need to help ourselves and let them learn from us.
Economy convention proposal
We are all well aware that we are heading for the ANC Policy Conference next week. One of the proposals that KwaZulu-Natal will be tabling talks to the issue of economic transformation. I think, in the past the focus has tended to be more on Political Freedom and therefore, very little progress has been made with regards to issues around economic transformation.
We therefore, are saying there needs to be an Economic Convention where all stakeholders including government, business and labour will meet and discuss frankly, how and what role should all of us play to ensure that we bring about economic transformation in South Africa.
We all know that the attainment of economic transformation would mean, economic growth, a lot more people participating in the economy of the country and in that way we will be able to drastically reduce this high unemployment rate, particularly among our youth.
Conclusion
In conclusion, let me take this opportunity to say that we fully support this initiative and we hope that it will expand so that all municipalities in the Uthungulu District cut a pattern, so that we reduce unemployment and hopelessness, particularly among our youths. And bring about hope.
I thank you.
