YOUTH UNEMPLOYMENT
12TH NATIONAL BUSINESS CONFERENCE
Venue:
Francistown
Date:
14th to 17th October 2012
Theme:
“Interrogating Implementation: Why is it a Challenge?”
Topic:
“Youth Unemployment”
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
INTRODUCTION
• As per the 2010-2016 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 2002.
• Botswana’s youth unemployment is second highest in middle income countries.
• Youth unemployment is higher than national unemployment which is currently at 17%.
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
INTRODUCTION CONT…
Figure 1: Youth Unemployment rate, Middle Income Countries
45
40
35
30
25
20
15
10
5
0
Namibia
Botswana
SA
mauritius
Ghana
Chile
Malaysia
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
INTRODUCTION CONT…
Figure 2: Botswana Unemployment rate by Age
45
40
35
30
25
20
15
10
5
65+
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
12-14
0
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
INTRODUCTION CONT…
•
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 (1997-2009) 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?
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR
YOUTH ENTREPRENEURSHIP
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.
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR
YOUTH ENTREPRENEURSHIP CONT..
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.
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR
YOUTH ENTREPRENEURSHIP CONT..
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.
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR
YOUTH ENTREPRENEURSHIP CONT..
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.
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR
YOUTH ENTREPRENEURSHIP CONT..
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).
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR
YOUTH ENTREPRENEURSHIP CONT..
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.
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
FACTORS LEADING TO YOUTH UNEMPLOYMENT & POOR
YOUTH ENTREPRENEURSHIP CONT..
Other Factors
•
Irrelevant educational curricula.
•
Limited resources and infrastructure especially in rural areas.
•
lack of economic diversification.
•
The privatisation policy.
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
POTENTIAL INTERVENTIONS
Intervention Category
Examples
Making the labour market work
better for young people
Counselling, job search skills
Vacancy information
Wage subsidies
Vocational training including apprenticeship systems
Literacy & numeracy – young adult literacy programs
Mentorship
2nd chance & equivalency programs
Financial incentives e.g. Subsidies for training
Information
Skills training for young people
Making training systems work
better for young people
Improving labour market regulations
to the benefit of young people
Improving chances for young
entrepreneurs
Other
The dual system of training and practical experience
Regulation on experience required by employers
Reform of ‘hiring & firing” regulations
Reservation of some sectors
Access to credit for entrepreneurs
Voluntary national service programs
Emigration (youth employment international exchanges)
Public works programs
Source: World Bank Youth Employment Initiative, Econsult
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD
ISSUES FOR DISCUSSIONS
•
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?
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
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:
3191449
Fax:
3907689
Mobile: 71410352
E-mail: anmorima@mosireletsilegal.co.bw/info@mosireletsilegal.co.bw
Website: www.mosireletsilegal.co.bw
1 2 T H N AT I O N A L B U S I N E S S C O N F E R E N C E
“ YOUTH U NEMPLOYMENT”
PRESENTED BY: NDULAMO ANTHONY MORIMA, MOSIRELETSI
LEGAL SERVICES (PTY) LTD