Publication: Pondoland Times. Read the original here.
Publish Date: 11 May 2024
The Eastern Cape Development Corporation (ECDC) and the National Financial Literacy Association (NFLA) on Friday signed an 18-month Memorandum of Agreement which has set aside R20 million through the Youth Employment Service (YES) to provide work opportunities for 350 unemployed youths from the Eastern Cape.
The NFLA, which is an implementing partner of the Youth Employment Service (YES), will pay stipends to the youth for the duration of their 12-month contracts, while the ECDC will provide an additional R500,000 to take the youth through a training programme for workplace readiness, financial literacy and customer service.
“Of the 350 youth, 100 have been placed in companies in the Mthatha area, and 250 in companies in the East London region with more priority given to small and medium enterprises as host companies. This is due to the high retention and absorption rate of small and medium enterprises. The conclusion of this MoA with the NFLA follows an initial phase in 2023 where 40 youth were placed in businesses operating in different sectors across the province. This initial phase was a success, and there was a need to ramp up the numbers and impact which resulted in this 18-month agreement.
“The ECDC’s bigger vision is to identify and partner with people and organisations which can help us mobilise funding for training, skills development and youth employment in the Eastern Cape. From the ECDC’s perspective, we want to ensure that as we find work opportunities for young people, they are being prepared for the intricacies and dynamics of the workplace. This informs our focus on workplace readiness, financial literacy, and customer service,” says ECDC chief executive officer Ayanda Wakaba.
NFLA chief executive officer Nosipo Nqabeni-Mtshali says the MoA is one of the big milestones the two organisations have reached.
“This MoA was preceded by a Memorandum of Understanding which was an outcome of the relationship-building exercise we embarked upon in search of strategic partners. The NFLA identified the ECDC as one of its key strategic partners that it could work with in finding work opportunities for unemployed youth as well as skills transfer and development.
“This MoA resulted in us recruiting and placing 350 youth from the Eastern Cape in small and medium businesses from different sectors of the economy. We are excited that part of the MoA is about financial literacy and work readiness training which will be rolled out in May. We want to do this training before they receive their first stipends at the end of May so that they are exposed to financial planning principles early on. After the 12-month employment period, they will be more employable and marketable, and some will choose to go the entrepreneurial route,” says Mtshali.
Oyisa Gubevu, 22 from Mdantsane in East London is of the youth that have found employment as a result of the MoA between the ECDC and the NFLA. Gubevu studied public management at Lovedale College and concluded her studies in 2023.
“I heard about the programme through social media and I applied for it. I was unemployed and this is a great opportunity for me to gain work experience and skills while earning an income. I had been unsuccessful thus far in securing employment despite my efforts. This is a timely intervention for me,” says Gubevu.
Joy Limani, 21 from Stutterheim says this is her first employment opportunity since she matriculated in 2022.
“I was planning to study in 2025, but this opportunity has come through. It means a lot to me because I will gain work experience which will give me an idea of the career path I want to follow. It will also help to make a financial contribution at home,” Limani says.
Mtshali says the partnership moves the needle from a 20% youth absorption rate through employment contracts to an 80% absorption rate, leveraging off the ECDC’s existing youth entrepreneurship programmes.
“The ECDC as a partner provides more feasible and viable options for YES4Youth post the 12-month employment journey,” Mtshali adds.