YOUTH UNEMPLOYMENT 12TH NATIONAL BUSINESS CONFERENCE Venue:Francistown Date:14 th to 17 th October 2012 Theme: “Interrogating Implementation: Why is it a Challenge?” Topic:“Youth Unemployment” 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD

INTRODUCTION As per the Revised National Youth Policy(NYP), a youth is a person aged between 12 and 35. Over the past few years there has been a rapid increase in youth unemployment and a decline in youth entrepreneurship globally. Youth unemployment rose from 11.8 to 12.7 per cent between 2008 and 2009, reversing the pre-crisis trend of declining youth unemployment rates since Botswana’s youth unemployment is second highest in middle income countries. Youth unemployment is higher than national unemployment which is currently at 17%. 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD

INTRODUCTION CONT… 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD

INTRODUCTION CONT… 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD

INTRODUCTION CONT… 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD The root cause of this level of unemployment is a failure to create enough jobs in the economy. The largest employer is government. In recent years formal sector employment growth has slowed, in line with slower economic growth, and over the past decade ( ) has averaged only 2.7% a year. Youth unemployment exceeds national unemployment. Though youth organisations, UN agencies and, though to a limited extent, the private sector, have developed strategies to combat youth unemployment and promote youth entrepreneurship, the problems continue to bedevil our economy. Why is implementation a challenge?

FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR YOUTH ENTREPRENEURSHIP 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD An Inhibitive/Unsupportive Legal and Policy Framework The law that requires that a person be aged twenty one (21) in order to be eligible for land ownership delays the implementation of youth economic empowerment projects.  Arbitrary application of waiver breeds corruption and economic crime. The law that one becomes a major at the age of twenty one delays the implementation of youth economic empowerment projects. Loss of contracts; delay in business commencement; Loss of funding opportunities. Youth Employment subsidy for youth training and employment Reduction of requisite years of work experience.

FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR YOUTH ENTREPRENEURSHIP CONT.. 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD Lack of Youth Friendly Micro-Credit and Savings/Investment schemes NYDF to have micro-credit and savings/investment component. Government can create incentives (e.g. tax rebates) and/or partnerships with private financial institutions for affordable youth enterprises financing. Solo efforts by the private sector, with no policy and legislative framework ineffective.

FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR YOUTH ENTREPRENEURSHIP CONT.. 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD Ineffective Internship, Mentorship and Job Shadowing Programmes NYDF to have micro-credit and savings/investment component. Internship programme is not supported by a mentorship and job shadowing programme. Interns emerge with very few skills and competencies, let alone conative abilities. Some employers use interns as free labour, and because there is no legislative and/or policy imperative to that effect, devote no time to systematic training, mentorship and job shadowing. Interns are mainly placed in the public sector. Skills transfer and productive use are not happening where they are needed the most.-the private sector. Government to enact a law or at least a policy that the internship period is counted as working experience for purposes of employment.

FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR YOUTH ENTREPRENEURSHIP CONT.. 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD Few Youth Preferential Empowerment Schemes Need for more broad based preferential schemes for youth in business. An example is laws and/ or policies that provide for youth quotas in government tenders and procurement. A consolidated marketing brand for youth businesses should be developed. Brand could be similar to the citizen marketing brand, ‘Buy Botswana’. There could also be a ‘Buy for Youth’ brand.

FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR YOUTH ENTREPRENEURSHIP CONT.. 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD Unsustainable Employment Schemes Government has often spent funds on short term under-employment, e.g. Ipelegeng with very little impact on the economy. Such projects do not contribute to skill development and job security. Youth’s benefit on such projects currently stands at 22% (of the 141,799 beneficiaries of Ipelegeng only 30,897 are youth).

FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR YOUTH ENTREPRENEURSHIP CONT.. 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD Unsustainable National Youth Development Fund (NYDF) The NYDF to be made a real fund financed through such means as a youth development levy and tax rebates. NYDF to be administered by the BNYC, through private sector fund administrators. NYDF to be divided into such areas as Youth in Information & Communication Technology, Youth in Enterprise, Youth in Cooperatives, Youth in Agriculture (to absorb the Young Farmers Fund currently under CEDA), Youth in Tourism, e.t.c. Job Centre and skills data base. National and International Volunteerism Scheme.

FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR YOUTH ENTREPRENEURSHIP CONT.. 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD Other Factors Irrelevant educational curricula. Limited resources and infrastructure especially in rural areas. lack of economic diversification. The privatisation policy.

POTENTIAL INTERVENTIONS 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD Intervention CategoryExamples Making the labour market work better for young people Counselling, job search skills Vacancy information Wage subsidies Skills training for young people Vocational training including apprenticeship systems Literacy & numeracy – young adult literacy programs Mentorship 2nd chance & equivalency programs Making training systems work better for young people Financial incentives e.g. Subsidies for training Information Improving labour market regulations to the benefit of young people The dual system of training and practical experience Regulation on experience required by employers Reform of ‘hiring & firing” regulations Improving chances for young entrepreneurs Reservation of some sectors Access to credit for entrepreneurs Other Voluntary national service programs Emigration (youth employment international exchanges) Public works programs Source: World Bank Youth Employment Initiative, Econsult

ISSUES FOR DISCUSSIONS 12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD Is there a fundamental unemployment problem in Botswana which is being reflected by youth unemployment? To what extent have youth schemes, policies been successful? What role should private sector play in order to achieve positive results that would add value to economic growth? Is there a generic holistic approach to dealing with youth unemployment, is the issue failing enterprises or education or both? Are there any innovative ways of dealing with youth unemployment and failure of youth enterprises?

12TH NATIONAL BUSINESS CONFERENCE “YOUTH UNEMPLOYMENT” PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI LEGAL SERVICES (PTY) LTD THANK YOU!! For more information, contact: Mosireletsi Legal Services (PTY) LTD P. O. Box 21066, Bontleng Gaborone International Commerce Park, Plot 158, Unit 6 Tel: Fax: Mobile: Website: