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

2. Economic challenges facing the Youth
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, ;
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
Upliftment
Youth
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
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 dti’s 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.

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.
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

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

14. Tracking Progress on Youth Economic Empowerment
Performance of the National Empowerment fund on Youth Economic Empowerment
NEF invested portfolio June, 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
Perfect 10
Services
Valueline 145 (PTY) Ltd.
Transportation
Garlo World CC.
Roseko Caterers & Cleaning Services CC.

15. Tracking Progress on Youth Economic Empowerment, cont.
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 years of age, plus one
bonus share for every 10 held after 24 months.
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

16. 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:

17. Tracking Progress on Youth Economic Empowerment, cont.
Performance of The South African Microfinance Apex Fund (SAMAF) on Youth Economic Empowerment, 2007/08

18. 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%

19. 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

20. 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 EIC’s
1,539 through National Programmes
783 clients assisted through Sector specific programmes on
tourism, agribusiness and cooperatives support

21. 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 SMME’s established through seda Technology Programme

22. Tracking Progress on Youth Economic Empowerment, cont.
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
Eleven young graduates and diplomates have also been taken into ITHALA’s 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.

23. 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).

24. Contact Details Mr. Jeffrey Ndumo Chief Director: the dti
Enterprise and Industry Development Division (EIDD)
Telephone: /1631
Fax: /2631

25. THANK YOU