AUTHOR: GIVEN MAJOLA
PUBLICATION: NOVUS THE STAR
SOUTH Africa‘s greylisting by the Financial Action Task Force (FATE), a global money laundering and terrorist financing watchdog, would stifle the country’s ability to do business globe ally, especially with EU members, says Youth Employment Service (YES) CEO Ravi Naidoo. YES is a business-led collaboration that seeks groundbreaking ways, through innovation and technological best practice, to reignite the economy and give youth a dignied first chance. Naidoo said that the greylisting, together with load shedding, would unfortunately also affect job creation. He said studies howed that greylisting negatively affected capital flows into countries, with consequent effects on economic activity, growth and employment levels. In response to a Business Report media inquiry, Naidoo said that the single biggest way to create jobs was to increase lhe countrvs rate of economic growth. “We have to enable businesses to grow and be profitable. However, this A LONG queue outside Johannesburg Road Agency in Johannesburg where people came to apply for posts advertise at the institution. l MATTHEWS BALOYI African News Agency (ANA) requires an environment in which businesses are confident to make long— term iobrcreating investments and sons rose by 28000 to 7.753 million, multiple fronts, it is another unnecese reflected that South Africa has taken Even so, Nwaneri said, there has greylisting will directly impact the the employed increased by 169 000 to sary blow,” Carrim said. a number of steps already to avoid been a pattern of the government levels of investment into our country,” 15.954 million and the labour force The local youth agency said the greylisting and that if the country saying the right things when it comes Naidoo said. went up by 197 000 to 23.688 million. South African economy was facing continued down this path, it could to providing this kind of support, but He said that when it came to fixing Among sectors, nance (+103 000), multiple overlapping crises including exit greylisting in 18 months. then for some or other reason, it often the greylisting problem and ensuring private households (+54 000), trade the economic fallout associated with “ We must continue with structural ends up not being able to fully realise South Africa exited it, the country (+52 000) and transport (+43 000) Covid-19, persistent electricity out- reforms to fix the economy in areas its promises. could learn from Mauritius, who were posted the largest job gains, while corn- ages, high inflation, food insecurity, such as energy, water, ease of doing She said the country’s inability to able to have their listing lifted within munity and social services (-122 000) high oil prices and growing inequality. business and reducing basic education provide a constant supply of electricity two years by getting key stakeholders and construction and agriculture It said that throughout all of dropout rate. was such an example. Nwaneri said to work together. (>12 000 each) shed jobs. these crises, young men and women “We must build on the positive ATS has seen first-hand how job seek- “Interestingly, many of the chal- The expanded definition of unem» continue to be hardest hit — triply work that has been started in Opera- ers struggle to get placed. lenges we face as a nation, like youth ployment, which includes those dis- exposed by being in jobs that are most tion Vulindlela. In the interim, public ”SMMES have taken the brunt unemployment, also require collab— couraged from seeking work, was exposed to financial shocks, being least employment programmes and the of power utility Eskom’s inability to oration. So, essentially, the solution 42.6% in the fourth quarter, down covered by social protections such as repurposing of the Social Reliefof Dis- supply electricity, as they have been we require to address greylisting is from 43.1% in the third quarter. the Unemployment Insurance Fund tress grant are effective mechanisms unable to operate as a result of the the same solution we need to address Meanwhile, the youth unem- (UIF), and facing additional burdens to cushion the economic challenges blackouts. The impact of the blackouts unemployment: sustained collaborae ployment rate, measuring job‘seekers of household duties and unpaid care being faced,” he said. on SMMES is not only detrimental to tion between key stakeholders,” Nai- between 15 and 24 years old, rose to work that exacerbated economic pov- Reacting to President Cyril Raina- these businesses, but also severely caps doo said. 61% in the last quarter oflast year, up erty with time-poverty. phosa’s State of the Nation Address last job growth,” she said. According to Statistics South Afri— from an over two—year low of 59.6% in ”These factors compound, severely month, Onyi Nwaneri, CEO of Afrika “Skills development initiatives ca‘s (StatsSA) Quarterly labour Force the previous period. impacting their ability to look for work. Tikkun Services, (ATS), a division of have also been seriously affected as Survey, South Africa’s unemployment The National Youth Develop- The greylisting adds to the multiple Afrika Tikkun specialising in recruit- blackouts stall training programmes rate eased to 32.7% in the fourth quar- ment Agency CEO, Waseem Carrim, overlapping crises and deters much ment, training, placement, and cor- and make online learning almost ter of 2022, the lowest since the first described the greylisting as disappoint, needed local and foreign investment porate transformation, said increasing impossible. For organisations like A’l’S, quarter of 2021, from 32.9% in the ing for an economy of South Africa’s which is needed to grow the economy the number of employed people, espe— they have had to spend huge amounts prior period. size and scale. ”At a time when the and create iobs at scale.” cially young South Africans, was one of scarce funds on generator and diesel The number of unemployed per— economy is battling challenges on Carrim said economists have of the keys to driving development. costs,” she said.