The National Youth Development Agency (NYDA) presented its Annual Performance Plan for 2020/2021 and the Strategic Plan and Budget.
The main questions raised by Members were about the Youth Micro Enterprise Relief Fund and informal traders and entrepreneurs, about the synergy between the Department and the NYDA, the ‘1000 businesses in 100 days’ campaign, skills development for youth to support the future National Health Insurance workforce; June 16th and Youth month'; how NYDA was adapting its plans to deal with the post COVID-19 impact; the lapsed Board; progress in drafting an NYDA Amendment Bill; its advocacy for youth during planning for the COVID-19 relief package; its many vacancies and keeping a tight rein on its financial and human resources management.
NYDA noted that youth unemployment was already catastrophic before COVID-19 existed, with South Africa having the worst youth employment rate in the world. Young people are being robbed of their dignity when they are deprived of work. It agreed with the Chairperson that NYDA and the Department should work together to make submissions on the role of young people in a post-COVID world.
Both the Minister and Deputy Minister gave inputs and noted that the Annual Performance Plan and Strategic Plan will need to be redone to factor in the COVID-19 impact.
Opening remarks by Chairperson
The Chairperson welcomed the Minister and Deputy Minister. Questions raised in the prior meeting that the Department had not responded to, should be dealt with after the presentation. The NYDA was asked to keep the presentation to 30 to 45 minutes.
Acting Director-General Ms Reshoketswe Tshabalala said that they are available to answer questions. However they had not received questions from the previous meeting.
The Chairperson replied that Acting Director-General and Deputy Minister should look at the questions raised in the previous meeting and share if any progress has been made so far.
National Youth Development Agency 2020/21 Annual Performance Plan
NYDA CEO, Mr Waseem Carrim, spoke to the following topics: immediate impacts of COVID-19; the 25 year review and Medium Term Strategic Framework (MTSF) priorities; statistics used to develop the strategy; NYDA key sectors; details of the Annual Performance Plan (APP); marketing and communications; financial matters, human resources; partnerships and the legislative amendments (see document).
Impacts of COVID-19
Applications are still being received for the “1000 businesses in 100 days” campaign, however disbursements will only be done at Level 3 of the lockdown. The reason for this is that young people cannot collect their goods during Level 4 and 5. Applications and disbursements are being done for the Youth Micro Enterprise Relief Fund. It has offered support to the Department of Social Development in registering young people for the COVID-19 grant. There is support to child-headed households in vulnerable communities through non-governmental organisations (NGOs) in the National Youth Service Programme.
Youth Micro Enterprise Relief Fund
This fund was established in direct response to the challenges that businesses and Small, Medium and Micro Enterprises (SMMEs) were facing. The Fund targeted youth micro-owned enterprises that may be missed by other relief funds. Only 226 of the 4550 applications received have been approved.
Youth Month and June 16th
A digital message will be shared for June 16th and the NYDA is working with the Presidency and the Department of Arts and Culture to make June 16th as inclusive as possible.
The Presidential Youth Employment Intervention is a plan to address youth unemployment. In the next year, the Presidential Youth Employment Intervention will:
• Launch five prototypes in five provinces which will allow young people to receive support, information, and work readiness training to increase their employability
• Fund and offer business support to 1000 youth owned business in the next 100 days through a partnership of the NYDA and the Department of Small Business Development
Link between NYDA Programmes and its Strategic Outcomes
Programme 1 Administration: financial procedures and executing supply chain management plan
Programme 2 Design, Development and Delivery: Access to socio-economic opportunities, business opportunities, and support for young people to participate in the economy
Programme 3 National Youth Service: Increased coordination and implementation of NYS programmes across all sectors of society
Programme 4 Research and Policy: Produce research reports to influence youth sector changes and build sustainable relationships.
NYDA CFO, Mr Thami Mkhwanazi, said the overall budget for 2020/21 of R545 million has increased by 7%. Employee costs total R199 635 434.
The NYDA total headcount is 609 with 514 filled posts at the end of 2019/20. The NYDA cannot fill all vacancies as it has a compensation ceiling which is the reason for the large number of vacancies.
The Chairperson thanked the CEO and CFO for their presentations. She commended the NYDA for the early submission of its report and for submitting a revised version.
The Chairperson stated that since the NYDA Board has lapsed already and Mr Carrim is the accounting authority on behalf of the NYDA, she just has one concern. She asked if Mr Carrim had a plan on how he is going to work with his team and senior managers. She stated that if he is not ready, it will create further problems for the NYDA. She hopes that Mr Carrim and the NYDA will take this very seriously.
The Chairperson noted that the NYDA taking an opportunity in having a digital programme. This will be a particularly good opportunity for the youth and will also assist in the economic growth of the country. Most young people will get jobs opportunities to participate in that space.
Ms T Masondo (ANC) asked which of the 95 vacancies have been identified as critical and, in light of the impact of COVID-19 on programmes and budget, what is the NYDA proposal to deal with the vacancies?
Ms N Sharif (DA) referred to the NYDA strategic objectives and asked for more information on the proposed programmes the NYDA will have in the coming months focused on young women and persons with disabilities. In Programme 2, she noticed that there is a huge budget for employment compensation and asked what the role of the NYDA officials will be in achieving targets. Programme 2 outcomes indicators refer to ‘skills to enter the job market’ and ‘skills to participate in the economy’. She asked NYDA to differentiate between the two indicators. The provision of skills and training for young people in Programme 2 has high targets in place. She asked if the skills and capacity training will be done through an accredited service provider or if it will it be done in-house and what qualifications will be needed?
Ms M Hlengwa (IFP) asked, under the proposed budget, what plans does the NYDA have to assist child-headed households in terms of educational and financial support during COVID-19 and in future. She asked if it has a plan to collaborate with other departments and entities to ensure the skills development of the youth. What skills are being developed for the youth to create support for the National Health Insurance (NHI) scheme, so that the health care system is sufficiently capacitated in terms of workforce?
Mr L Mphithi (DA) commented he was still not convinced that the Department and NYDA has been able to have some form of synergy. There are still gaps that exist in the NYDA plans. This is something both the Department and NYDA should work closely on.
Mr Mphithi asked the CEO for the difference between the National Youth Service (NYS) and the Presidential Youth Service Intervention and if it is linked or operates in different spaces. On the ‘1000 businesses in 100 days’ campaign, the CEO said that NYDA has not disbursed any funds during Level 4 of the lockdown, and asked what implications this will have on the NYDA quarterly targets going forward. With the Youth Micro Enterprise Relief Fund, he asked how informal entrepreneurs are being assisted and if there are criteria that the NYDA has put in place for this. There is a difference between young entrepreneurs registered with the Companies and Intellectual Property Commission (CIPC) and young informal traders who might have not registered their business with CIPC. He commented Youth Micro Enterprise Relief Fund is a brilliant initiative by NYDA to recognise young people left out of the Temporary Employer Relief Scheme (TERS) Benefit and the Social Grant Benefit. However why have only been 226 people benefitted from this Fund and what are the challenges of disbursing the funds to young entrepreneurs? He stated that it is vital for this funding be given to these young entrepreneurs because businesses are dying every day. He asked if NYDA has looked at the Solidarity Fund and how it has been able to assist the group of young people who do not benefit from the TERS Fund or the Social Grant fund. The Unemployment Grant of R350 might not be enough, however, it is targeting six to eight million South Africans which can assist young people who will face a huge unemployment crisis after the COVID-19 peak has taken place. The Department, together with NYDA, needs to come up with a plan to assist young people with this now and in the years to come.
The Chairperson said that both NYDA and the Department should respond to Mr Mphithi’s last question.
Ms N Sonti (EFF) and Ms M Khawula (EFF) asked questions in their vernacular language (1:19:06 – 1:39:50)
The Chairperson referred the CEO and DG to the APP and said that targets for key areas in Programme 1 Administration, such as financial management, should be reflected in it.
Mr S Ncgobo (DA) asked if NYDA has adhered to the 2% target for employment of persons with disabilities and if it has achieved this target. If NYDA has not achieved this, what is the plan going forward as it should lead by example. He asked to understand the nature of the working relationship between Programme 4 of NYDA and the Department’s youth development programme. What is been done to avoid duplication and to ensure the optimum use of resources? He raised concern about the lack of specific indicators in Programme 1 for disciplinary cases and would like more clarity.
Ms B Maluleke (ANC) asked NYDA if they have already identified the five provinces to launch their prototype sites and if so, which provinces have they chosen? On the mobile outreach vehicles, where is NYDA going to locate these and will it also be allocated to rural areas? Prior to lockdown, how many businesses were assisted through the ‘1000 business in 100 days’ initiative?
Ms F Masiko (ANC) commented that under current conditions, NYDA is trying its best to ensure that services get to young people across the country. NYDA is planning to host June 16th over a digital platform, however that is a month away and asked if proper plans were in place for this day. NYDA has started the build-up of online webinars and asked where the webinars are being advertised and how these can be accessed so that young people will be able to participate. It will need to have a recovery plan because the targets will be affected by the COVID-19 crisis. In terms of research and policy, it is important to check the relationship between NYDA research and the Department's research, monitoring and evaluation. It is not only important to do customer service, but also look at impact assessment and return on investment (ROI) on the programmes. This is important to assess that the services are making a difference in the lives of young people across South Africa. Has NYDA made any contributions to the economic stimulus package? On skills development, it is not only important to speak about the number of young people reached, but also that young people are able to get certificates for their qualifications based on accredited service providers.
The Chairperson commented on the point whether young entrepreneurs benefit in terms funding and grants from the Department of Trade and Industry (DTI). The Department has never done oversight on whether young people are getting assistance from those agencies. Another point of concern, in terms of the requirements stipulated, does NYDA know if DTI become flexible so that new entrepreneurs will be able to access the funds from government. She asked how NYDA and the Department can assist those that did not qualify and establish the reasons that their applications are declined.
Mr Carrim replied about the readiness of the NYDA senior management team, saying the team is working extra hard to maintain good governance in NYDA and does not want to let governance slip now that there is currently no Board. The Ministry is also assisting from a legal perspective and it will provide a status report to the Department and the Ministry on a monthly basis so they are both fully abreast on the progress in meeting targets and reaching out to young people in the manner that it should.
On bridging the digital divide, it is important for key departments and entities such as Telecommunications and the Technology Innovation Agency to work together to bridge the digital divide.
Mr Carrim pointed out that there are targets for financial management, supply chain management, human resource management and information technology in Programme 1 (Administration).
On the Chairperson’s question on other funding agencies, NYDA plays a lobbying and advocacy role. NYDA meets with other agencies and request that they put together 'set asides'. These agencies should move to an era of transparency publishing information and assisting youth owned enterprises. He agreed that the requirements do need to be tailored towards the needs of young people who lack experience which is inhibiting lots of young people from access these funds. NYDA works closely with SEFA (Small Enterprise Finance Agency) and SEDA (Small Enterprise Development Agency). When NYDA funding is insufficient, it often does referrals to SEFA and tries to get feedback on the young people referred to SEFA.
Mr Carrim replied that the NDYA vacancies which are critical are those in branches and service centres and business development offices. If SETA can establish an agreement with NYDA by providing 100 interns, it will help reduce the pressure on branches and service centres. However, he is concerned about the ability to finance projects because the skills development levy has been suspended for four months but NYDA is in continuous engagement with them. In terms budget cuts, it will have an impact on the budget if there are huge cuts, which will impact NYDA’s ability to fill vacancies. However, NYDA still awaits final allocation letters from National Treasury around 12 June. The emergency budget will be presented on June 24th.
In response to Ms Sharif’s question about designing programmes for young women and persons with disabilities, Mr Carrim stated that NYDA must have specific targets for all its programmes for reaching young women and young persons with disabilities. Women usually have less time than young men to look for available job opportunities as many of them are expected to be caregivers at home. Therefore, NYDA will need to host specific events targeted at young women entrepreneurs so that instead of expecting them to come to NYDA, NYDA would rather go to them. In each Programme, there is a strategy designed to reach the specific targets. In terms of persons with disabilities, it is important that NYDA work with organisations such as Disabled Youth South Africa, to help create the strategies to reach young people with disabilities.
On the high employee costs in Programme 2, Mr Carrim responded that it is important to note that the NYDA model does not outsource or give consultants NYDA work to do. The main costs that drive Programme 2 are trainers who offer the day to day training; the business development officers who analyse and process youth entrepreneurship applications; business advisory officers who offer both pre- and post-disbursement support to young people; the job officers who offer career advice, help young people design their CVs and run the jobs database, and the administrators who help support all the programmes. These are the main drivers of NYDA, which is why it takes up the majority of the costs. They are required to be present in every district centre and branch in the country.
Mr Carrim differentiated between soft skills training it offers for young people already employed or trained who need a little assistance such as touching up their CV and, on the other hand, young people that need technical training as they dropped out of matric for example. These young people may have to attend a community college, vocational training or a SETA (Sector Education and Training Authority) accredited training programme.
Mr Carrim differentiated between accredited and non-accredited training. Accredited training has its benefits as usually a lot of time is spent training. However sometimes there is no training for the demand that is needed in the economy such as the delivery industry exploding in the weak economy we are in, and there is an opportunity to train young people for a motorcycle licence which takes two weeks without the necessity of having to go through a one year skills programme. He concluded that training should be made for demand and for the jobs that exist which do not always have to be through accredited training.
In response to Ms Hlengwa’s questions, Mr Carrim stated that child-headed households are being assisted through sponsorships by non-governmental organisations (NGOs) and the distribution of food parcels are mainly handled through the Department of Social Development. NYDA is trying to transfer resources to NGOs and monitoring whether the right young people are benefitting from it. On the preparation of young people to working in the National Health Insurance or a renewed health sector, the World Health Organisation has credited South Africa for its community healthcare workers as being one of its greatest advantages. The more that older people are less likely to be able to leave their house, there is an opportunity for more young people to deliver chronic medication to vulnerable older people. There is also an opportunity for young people to become contact tracers during COVID-19. Moving forward, Mr Carrim hopes that NYDA can work closer with the Departments of Health and Social Development.
Mr Carrim replied to Mr Mphithi’s comment that he does think that synergy exists between the Department and NYDA as it is receiving a lot of support from the Ministry and the Department as well as providing support in terms of creating linkages to the greater government.
The difference between the National Youth Service (NYS) and the Presidential Youth Employment Service (YES) is that YES is a component of NYS. Every NYS programme must contain three elements: a young person must receive a wage, a skill when doing a service and lastly provide meaningful service to their community. These elements differ across NYDA programmes. The idea of the YES is to skill youth and to take a huge number of young people into service opportunities. However it has not yet been able to do this properly during the last five years.
Mr Carrim replied that up to 26 March 2020, NYDA funded 268 business and it is published on its website. The intention is that on June 16th, NYDA will still publish how many businesses it has funded even if it not 1000 business and also set a renewed target once Level 3 has commenced to complete this programme.
In terms of informal entrepreneurs, NYDA is trying to look for alternative evidence. Firstly, it should make sure that the criteria are met and secondly, what proves that the informal business exists. If the criteria are met, NYDA is willing to assist informal entrepreneurs where it can.
With regards to the Youth Micro Enterprise Relief Fund, he thinks that the reasons for NYDA only have funded 226 people so far is because many of the applications lacked certain aspects. However the branches and centres are working through all applications so that it can give feedback to each young person. Another reason is that it has to manage cash flow carefully, and its next charge will come in towards the end of May, which will help in speeding up disbursements from the Youth Micro Enterprise Relief Fund.
Mr Carrim replied about the Youth Micro Enterprise Relief Fund as a submission for the Solidarity Fund. He does not think the Solidarity Fund will assist a government agency directly as its focuses mainly on the fulfilment of personal protective equipment and the protection of food security in the country. He will establish if the Solidarity Fund has specific programmes for young people without solidarity.
On the question of the COVID-19 unemployment grant, Mr Carrim commented that it is important to look at when COVID-19 is no longer an issue as well as the role of the State in long term. A lot of people are talking about a universal basic income for the most vulnerable citizens. This is more of a basic package of support that can assist young people to look for employment and to manage poverty more than anything else. It is also important to think of a minimum employment guarantee for young people. Youth unemployment was already catastrophic before COVID-19 even existed, with South Africa having the worst youth employment rate in the world. The economy is to a large extent to blame for failing young people. As the state, it has an obligation to provide jobs if young people want to work and provide them with sustainable wages. In doing this, young people can gain experience and gain the skills needed to be formal participants in the economy. Young people are being robbed of their dignity when they are deprived of work, which is a significant reason why many young people abuse substances and alcohol. He agrees with the Chairperson that NYDA and the Department should work together to make submissions on the role of young people in a post-COVID world.
In response to Ms Sonti’s question on what informs NYDA’s numbers, it uses prior existing baselines to inform its numbers. He had also listed areas where local government provides land to young people and NYDA supports by providing grants. NYDA is trying to have close working relationships with provincial departments of agriculture. On her point about youth in rural areas, he replied that NYDA has a bias towards supporting young people in townships and rural areas. Anything that NYDA can do more, it is willing to listen.
In response to Ms Khawula’s questions, he said that if there is an area which NYDA is not reaching, NYDA will try its best to put steps in place to reach those not being reached. NYDA is willing to work with local municipalities to provide the funding for young people to access agricultural programmes in those rural areas. Within the last year, NYDA has supported 77 cooperatives and over the last three years it has supported over 200 cooperatives. NYDA is willing to work closely with young people to obtain the COVID-19 unemployment grant. Mr Carrim agrees with Ms Khawula that young people have been promised better futures each June 16th, however South Africa still has the world’s highest youth unemployment rate. There has been some achievements, but to a large extent many young people are still excluded from the economy. NYDA has been in touch with the Transport SETA and the Department of Transport and think that there is a shortage of around 1000 drivers who can be trained fast to get them placed in job opportunities during this weak economy.
As far as possible NYDA tries to avoid duplication of activities so that the resources that it has together with other agencies will have a multiplier effect. For example, if a young person comes to NYDA and has already been trained by SEDA, that person is not put through further training as the SEDA certificate is recognised.
Mr Carrim replied that NYDA has not met its 2% target and has only employed two disabled people so far but it will push to ensure that during 2020/21. In terms of disciplinary cases, he is happy to do a written report for the Committee on open disciplinary cases; action that has been taken; and disciplinary cases that have been closed in the last 12 months.
In response to Ms Maluleke, the site process is led by the Presidency. The sites are the East London Public Library; NYDA Empangeni Office; the DBA centre in Khayelitsha; the Labour Centre in Benoni and lastly in Cape Town. The idea is that these sites are pilots which will eventually grow into a national network.
For June 16th, NYDA is awaiting approvals from the Department of Arts and Culture and the Presidency and will then be going out on a drive to make young people aware. NYDA wants this to be as inclusive as possible and would like young people to give their ideas to share with the President on what they see the new economy being after COVID-19.
In terms of a recovery plan, NYDA will be doing this for completing the ‘1000 business in 100 days’ campaign. On the economic stimulus package, Mr Carrim replied that it had made submissions that the Child Support Grant should be increased because many young people benefit from this grant who are not receiving the school nutrition programme where the they would have received their two meals per day. NYDA had advocated about the Unemployment Grant and the amount was finalised by National Treasury. NYDA really needs the support of the Committee in receiving a portion of the R2 billion that has been allocated for small businesses for its Enterprise Relief Fund. He presented the statistics to the Committee, with 4500 applications, with NYDA’s current budget it can only fund 1000. However, if it can get more resources from the R2 billion, it will help protect the vulnerable young people who run these enterprises.
The Chairperson noted the target indicators do not talk about supply chain management and asked how NYDA will ensure there is compliance with the Public Finance Management Act (PFMA) and National Treasury Regulations. The human resource management plan is inadequate as it must indicate how it will deal with the cases and how it intends on finalising the cases. This goes to show that there is non-compliance because there is R18 million that the Department is not able to recoup. This is a concern that the Committee has raised many times and it should have received a report on how NYDA intends on addressing this problem. NYDA should have also discussed this with National Treasury to come up with a plan on how to deal with the challenge at hand. Another point of concern are staff members who flouted supply chain management regulations. There are some who did not even declare their interest in some cases.
Another concern is June 16th, Youth Month. The Chairperson said that Committee members should also share ideas that they might have to celebrate June month. She does not even see any advertising for Youth Month and believes that NYDA should use billboards to do this before June.
The Chairperson was thinking about how women get funding assistance as most women with businesses are struggling to get access to funds from government agencies. She suggested that a women’s agency should be established to deal specifically with the economic empowerment of women. Even though there are cooperatives, she is not sure if they are given assistance during COVID-19. Compared to other government departments and the 3000 masks that NYDA has made available, the Chairperson believes that this number of masks is not enough at all. She believes that the Department should think big so that people can benefit from big projects. No matter the project, the Chairperson wants to see NYDA advocated for young people to enter these spaces.
She is not sure if NYDA has the intention of amending NYDA Act. The Act is currently confining NYDA to do things in a certain manner. For example, the NYDA Act does not state when the term of office for the Board has lapsed, and currently the Agency will have been without a Board for three months. NYDA will not be able to achieve what it has planned if it does not intend to think strategically and out of the box.
Ms Tshabalala, Acting Director-General, replied on the general government programmes by virtue of its strategic location as a Department. A question was posed on substance abuse and she is aware that the Department of Social Development is running a programme which empowers young people to own their own choices, to make the right choices and the right to saying no in relation to involvement with substance abuse, sexual interaction and crime. In terms of child-headed households, the Department of Social Development is running an intervention programme called ‘Isibindi’. This is a community based and youth intervention programme that provides support to vulnerable children within their own homes, but also within society. She is aware that the South African Social Security Agency (SASSA) developed a strategy to assist those without technology to apply for the COVID-19 grant. SASSA works in partnership with members of society and has recruited volunteers through the National Development Agency. SASSA also recruited community development workers and are using social auxiliary workers to reach out to the poor and the most vulnerable. However, in areas where there are still challenges, she requests that the Department is made aware so that these problems can be dealt with accordingly.
On the economic plan for young people, Ms Tshabalala stated that the way in which it operates as government is as a collective, not as individual departments. The economic cluster is concluding its economic recovery plan and the Department plays a strategic role by providing leadership in this regard. The Department has accounted for unemployed youth to ensure government is influenced in terms of their planning, to ensure there is a deliberate and strategic intervention in targeting young people.
On research, the Department works closely with NYDA so if NYDA has research, it will become a key stakeholder and plans are shared together. The Department did indicate in their Annual Performance Plan (APP) that it will be developing a data anchoring tool to analyse research on the impact of COVID-19 for young people and a Monitoring and Evaluation (M&E) system for the National Youth Policy. NYDA’s work is more implementation, whereas the Department’s work is more the monitoring of NYDA’s work and providing assistance in reporting to the Executive Authority so that it can intervene when necessary.
The NYDA Act is being amended and it takes into consideration what the Chairperson has raised around the Board. It has extended the National Youth Policy (2015-2020) which is also under review. All the issues regarding amending the Act are taken into consideration.
Ms Masiko noted that when COVID-19 started in March, the Department of Public Works and Infrastructure (DPWI) announced that it will be recruiting a youth brigade to assist in the current situation. She asked if NYDA is aware of this and if it has partnered with DPWI in this initiative. What is the role of NYDA in mobilising young people to form a youth brigade for the quarantine period. What is the progress?
Ms T Mgweba (ANC) referred to the COVID-19 Special Grant and wanted to know how NYDA helps young people to register and the monitoring mechanism used if they qualify as they form the bulk of the unemployed across the country. On the Presidential Youth Employment Intervention, she asked about the structure and what the budget is for the interventions or is it included in the annual budget. With regards to customer service, how is this done and how do young people access it post COVID-19. She asked post COVID-19, how many young people in rural areas will reach the mobile offices?
Mr Mphithi asked for clarity from the CEO on informal entrepreneurs and the Youth Micro Enterprise Relief Fund. He asked if there is a list or criteria that is being followed or is acting as a benchmark to speak to young people in the informal economy. It is good to support those who have formal businesses but attention also needs to be paid to young informal traders who might not have the capability to register with the CIPC.
He asked about its strategic direction as the presentation says NYDA will await the impact of COVID-19 to move. He asked what type of focusing NYDA is doing to deal with a post peak young people will find themselves in. This is fundamentally important to do as the plans submitted before are drastically going to change due to COVID-19 to ensure that young people are not completely left out of the economy.
The Chairperson made a point about hair salons and spaza shops that mostly young people run these businesses with some not even registered. She asked how these enterprises will benefit from COVID-19 relief and how NYDA has dealt with this.
Mr Carrim replied that NYDA will submit a detailed report on disciplinary cases undertaken in the last 12 months and their outcomes. NYDA will share the June month plan once it has been approved so the Committee can have sight of this and can increase the awareness around Youth Month. He fully agreed that the NYDA Act is in need of amendment and it has made submissions to the Department. There is now a process of consultations and taking the Amendment Bill forward but he agrees that there should be greater monitoring and evaluation of what wider government is doing for young people in particular.
Mr Carrim replied that DPWI did indicate they were to recruit an additional 28 000 young workers for COVID-19 relief. NYDA has been trying to get information from DPWI but will keep following up on this. NYDA would like the 28 000 young workers to come from its database of active unemployed volunteers.
On informal traders, one needs to define what the term ‘informal’ means. Does it mean not having a business certificate or does it mean not having a bank account? These are the two primary distinguishing factors. Two challenges arise from this: how can NYDA support informal businesses from the Enterprise Relief Fund if it is still informal – this can be done through supplementing their businesses in the immediate term. Another way to assist is to help them get registered if the business is not or to get a bank account if they do not have one - as the ability to access funding from government increases when it is a formal enterprise.
NYDA is focused on three aspects during and after COVID-19. Working together with other government departments and the Presidency, NYDA needs to promote localisation, firstly by increasing manufacturing through youth entrepreneurs with the youth entrepreneurship programmes being continued and upscaled. Secondly, unemployment will increase so NYDA needs upscaled public employment to support young people who may be displaced in the labour market. Thirdly, paid volunteer work is going to become more important and NYDA does have people available for this. These are the three aspects to ensure that young people are not left behind. However, he is also willing to listen to any other ideas on the matter.
Minister Maite Nkoana-Mashabane stated that she had listened attentively to the Committee members contributions. She does not know if it has sunk in for young people that post COVID-19, South Africa is never going to be the same again. Even though the Annual Performance Plan and Strategic Plan are in place, it will have to ask for permission to redo this. Things are going to be quite different. Maybe it will help remove the fact that others are mere spectators in a real formal economy.
Deputy Minister Ms Hlengiwe Mkhize replied that the Department of Small Business Development (DSBD) has a responsibility to distribute about R500 billion so NYDA has a huge opportunity to partner with the Department in influencing the direction of that allocation towards the majority of young people in South Africa. DSBD is part of the economic cluster and by working with NYDA, some of the issues that have been raised can be put in the economic cluster so that all those departments make use of NYDA. There is a unit in the Presidency which does similar work to NYDA, so it is important for the Department to strengthen the coordination.
The Chairperson had to cut Deputy Minister off because she had been pressurised to keep within the time limit of the meeting. Members who wanted to raise follow up questions should forward them for submission so that the CEO and CFO can respond in writing. She thanked the Minister, Deputy Minister, Acting Director General, CEO and CFO and the Committee Members.
The meeting was adjourned.
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