National Youth Development Agency 2022/23 Annual Report

Meeting report

Opening comments

The Chairperson expressed her admiration for the National Youth Development Agency’s (NYDA’s) progress since the last report. She believed that the NYDA raised its standards and was glad there was no negative coverage in the media. She stated that although the organisation was doing a lot of work to address the issue of unemployment, there needed to be more work and programmes done to assist young graduates from universities.

She was impressed to see that a large number of young people, including those from other African countries, held postgraduate degrees and she added that the youth experience a number of challenges. She added that the entity needed to collaborate with the Department of Education to assist young people.

She highlighted that deliberations on the NYDA Bill would begin in the upcoming week and that it was important for the geographical spread to be considered.

A Member requested to leave the meeting early to attend another meeting.

To this, the Chairperson denied the request, stating that everyone present had to sit through until the session concluded. She handed over to the Audit and Risk Committee (ARC) to give a presentation and requested that leaders from the various entities introduce themselves.

NYDA Audit & Risk Committee (ARC) report to the Portfolio Committee for the 2022/23 Annual Report

The Chair of the ARC delivered the presentation to the Committee. An overview was provided of the ARC, its meetings and its key oversight responsibilities. Members were briefed on the assessed effectiveness of the NYDA internal control environment. It was noted that there was a regression in performance information reporting from 100% to 93%. Significant improvement is needed on adherence and compliance to the B-BBEE. The ARC was satisfied with the Annual Report.

See attached for full presentation

Discussion

Ms C Phiri (ANC) asked for clarity on what was meant by “monitoring”, as specified under fruitless and wasteful expenditure, and what measures had been put in place in this regard. She elaborated that “monitoring” was a broad term to use and gave no defined indication of the time period for the activity set. She also inquired about what the law stated and complimented the ARC on their work, although mentioning that there was still a lot of improvement needed.

Responses from the ARC

Adv Mary Rosey, Interim Chairperson of the Audit and Risk Committee, NYDA, said that the legal process had commenced and it began with a letter of demand, and further action had been taken following the negative feedback from the supplier.

Mr Waseem Carrim, Chief Executive Officer, NYDA, added that in such instances, the NYDA immediately blacklist the supplier from doing business, and thereafter, National Treasury is informed.

Ms Phiri was not yet clear on the matter and sought to understand why the supplier has been paid upfront and whether this was a regulation posed by the National Treasury. She asked whether the legislation allowed such action or if this was simply human error.

Mr Carrim clarified that the matter was not a normal service provider transaction. He agreed that Ms Phiri was correct in saying that payments are not usually made upfront, and gave an example of how the transaction process would work. He stated that the NYDA purchased goods and services on behalf of young people to reduce risk, and the entity facilitates payments on behalf of the young people. Approval from National Treasury was obtained and very few suppliers were willing to deliver without being paid upfront.

Ms Phiri was clear on how the process worked, however, she noted that it might look suspicious and added that the entity should provide a more detailed explanation.

Ms B Marekwa (ANC), commenting on the ARC report, said that the NYDA should continue doing oversight where necessary as this would assist them with obtaining clean audits. She said that the youth depended on this and commended the good work that was being done.

NYDA’s annual report for the 2022 / 2023 financial year

• The NYDA achieved 100% of performance against the approved Annual Performance Plan (APP) for the year under review.
• The Agency achieved a ninth consecutive clean audit outcome, which was an unqualified audit report with non-material findings on performance, financial statements or compliance with laws and regulations. This was critical for the Agency’s ability to raise funds from the fiscus, government partners, development partners, and the private sector.
• The Agency reported zero irregular expenditure for the year under review.
• The past few months had demonstrated how multiple overlapping crises – post-pandemic recovery, load-shedding and limited growth–could devastate labour market prospects for young people. As much as the crises were real and felt on the ground–the nature of work would continue to evolve, and the NYDA needed to pay attention to the opportunities and constraints of the future.
• Barriers persisted at every level–during job search, through engagement channels, at the level of opportunities in growth areas, and at the systems level. NYDA’s work identified which barriers held young people back at each level, and how to break them to maximise access to income-generating opportunities.
• To shift the trajectory, the NYDA needed more than incremental investment to multiply the number of pathways to earning. With a challenge this great, the NYDA needed to apply a critical lens to the investments they were collectively making – as an organisation and as a country. However, as the NYDA did so, it was vital that the NYDA use the right lenses of risk and return, as their experience showed that in the youth employment context, these concepts had unique dimensions.
• Young South African (SA) women were disproportionately represented on their platform, SA Youth – evidence of their competence, readiness to work, and tenacity. SA Youth was 66% female, and their nearly one million enabled placements were 68% female. Together, these facts suggested that not only do South Africa’s young women remain optimistic and resilient despite the odds they are dealt, but when the NYDA broke barriers for them and addressed the systemic disadvantages they faced, they seized the opportunity readily. NYDA’s experience suggested that this created immense value for organisations, communities, economies, and society as a whole.

See attached for full presentation

Discussion

The Chairperson asked why the NYDA granted its board member permission to leave the meeting early, knowing how important it was.

Ms Asanda Luwaca, Chief Executive Chairperson, NYDA, responded by saying the board member had to attend another meeting arranged long before the planning of the current meeting, and the said member had to present to the Minister.

In light of this, the Chairperson suggested to the Committee that when filling board member vacancies, they should add something that would legally bind members to Committee meetings. This would ensure that no one would be permitted to leave randomly in the middle of a meeting as such an act was not acceptable. She added that the youth asked the Committee to appoint people who would execute their duties without excuses. She emphasised that she did not accept such behaviour and added that in the following week, the NYDA Bill would be reviewed to bring in changes.

Ms Luwaca mentioned Board Appraisals, which would be shared with the Committee in the future.

The Chairperson said that part of the reason why they were so strict with the NYDA was because they looked at their Annual Performance Plan (APP), and noted discrepancies with the salaries of board members. She stated that this would be discussed further.  

Ms T Masondo (ANC) asked what the NYDA’s assessment of government was, with regard to Medium Term Strategic Framework (MTSF) priorities, what the key challenges were, and what should be prioritised for the seventh term. She also asked about the progress made in achieving the set goals.

She asked about the key outcomes of the Nelson Mandela Youth Dialogue and the number of young people who attended.

She inquired about the NYDA’s contributions to the success of its partnership with the private sector.

She asked about the challenges noted by the board in the current year and how things will be done differently in the following financial year.

She asked how board members managed time, and how were board member contributions assessed quarterly and annually.

She asked whether the entity offered a non-financial business development intervention for the beneficiaries of the Department’s Sanitary Dignity Programme (SDP), the number of youth and persons with disabilities who benefited in this regard, and what led to the success in exceeding the target for capacitating 83 923 individuals with skills. She asked about the viewpoint of the youth on the skills acquired and the number of individuals who had been able to secure work opportunities.

Ms G Opperman (DA) inquired about the number of youths who had secured employment after being capacitated with job preparedness training, how black women stood at an unemployment rate of 38.4% in this regard, and whether there was a programme to address the matter.

She stated that there needed to be plans to mitigate the high rate of young university graduates who were unemployed.

She asked for reasons why government departments delayed implementing the National Youth Service, and whether there was work to enforce compliance in this regard.

She indicated that it was impressive that the NYDA partnered with the Department of Public Works in Kwa-Zulu Natal (KZN), and asked if the same would be replicated in other provinces as well. She asked how the youth in the province had been impacted, and whether the entity put in place programmes to collaborate with local municipalities on youth homelessness. If yes, she asked when the initiative would be implemented.

Ms F Masiko (ANC) complimented the NYDA and the board for the work they were doing. She commended the entity for the Nelson Mandela Youth Dialogue and acknowledged the awards that the NYDA received. She stated that it is important to commend good work and give encouragement.

She highlighted that it was important that the Nelson Mandela Youth Dialogue reaches more than one province and that plans need to be in place to achieve such.

Referring to the R93 000 incurred on fruitless and wasteful expenditure, she asked at which stage the entity realised that the goods paid for had not been delivered, and in the instance where the supplier did not deliver the goods to the grant beneficiaries, she asked what happened thereafter.

The Chairperson interjected to add that it would be unfair if the NYDA expected young people to wait until the money had been recovered.

Ms Masiko proceeded to ask the number of loans written off, in the current year.

She commended the entity on the vacancy rate which had moved from two digits to one. She asked about the current status of the vacancy rate, and the number of persons with disabilities who were currently employed.

She requested a breakdown of grants given to Youth-owned Enterprises, and also for those with disabilities.

Regarding SDP, she said that the NYDA needed to be on board for women to become producers of such products. She asked if the entity provided non-financial support for beneficiaries in the SDP and the number of youths assisted.

She said that the issue of youth homelessness needed to be addressed and inquired whether there was a programme to address this.

Ms N Sonti (EFF) asked why there was such a high youth unemployment rate if the NYDA was supposedly doing such great work and winning awards. She added that the unemployment rate continued to rise, and asked how the entity sought to ensure that the numbers decreased. She stated that townships were recognised but the rural areas were not. She added that homeless young people turned to drugs because of poverty.

Ms A Hlongo (ANC) commended the NYDA for their clean audit and the good work they were doing. She suggested collaborating with the mining and forestry sectors, which would assist the rural provinces. She asked about the plans in place to address youth homelessness.

Ms Phiri applauded the entity for the work done. She expressed gladness for the initiated programmes and said she was hopeful for future work.

She agreed with the suggestion to form a partnership with the forestry sector and other stakeholders. She said that she hoped to hear about soy planting in agriculture, and asked whether there were any updates on the subject.

She expressed that she felt jealous that the NYDA had not yet asked the Committee to partner with them on some of their programmes, and also echoed some of the comments made by her Committee Members earlier.

She stated that she wished the entity would present more often, and noted that there had not been any mention of the upcoming Bill.

The Chairperson mentioned that the success of the NYDA was also the Committee’s success and agreed with what the Members raised. She encouraged the entity to participate actively in voter registration and voter education, as this would encourage young people to vote.

Ms N Sharif (DA) commended the entity for its efforts and good work.

She asked if consultants were used, and if so, the number of those who had been employed, including how much they are paid.

She asked if the Nelson Mandela Fellowship was in collaboration with the Young African Leaders Initiative (YALI), whether it was exclusive to South Africans, or whether other African countries were eligible. She stated that the fellowship was a good programme as these are in short supply within the country.

She questioned why financial management stood at 71% and how the NYDA planned to improve on such.

She asked the entity to keep to the promises made of working with the youth of Soweto to empower them. She inquired whether the NYDA would consider inviting the Committee to their programmes as the Members had a lot of experience.

Ms Marekwa commended the NYDA’s good work and echoed Members’ compliments. She agreed with the comment about writing up loans for young people.

She commended the action of placing young people in jobs, as this brought hope to the youth in the country, and asked the entity to also encourage other provinces to engage with the programme.   She asked what the changes of employment were when contracts had expired and requested a breakdown of the Soloman Mahlangu Scholarship Fund in terms of the beneficiaries.

The Chairperson advised the entity to highlight the progress made concerning youth unemployment, and those who benefited from the job creation programmes. She indicated that although there was a high rate of youth unemployment, achievements were made in this regard.

Ms M Hlengwa (IFP) commended the NYDA’s good work, resulting in a clean audit and applauded the representation of women within the entity.

She asked how budget cuts affected the youth and persons with disabilities, and the number of youths, in need, which had been assisted with bursaries.

Responses from the NYDA

Ms Luwaca thanked the Committee and expressed her delight at how many compliments the NYDA received, she noted that this was very encouraging.

Ms Alexandria Procter, Board Member, NYDA, mentioned that the most important part of the work of the NYDA was the beneficiaries. She described them as ‘trailblazers’ and mentioned their stories of what the entity meant to them. She expressed gratitude for the work done by the NYDA and said that “” We will not get lazy now”, emphasising that the entity would be more committed than ever, even in the upcoming elections.

Ms Pearl Pillay, Board Member, NYDA, thanked the Committee for supporting the amendment Bill, and expressed that they hoped it would go through. She said that in the future, it would be important to reach out to the Committee individually to ask what their passions were so that they could be more involved with the programmes.

She clarified that the Mandela Fellowship was not linked to YALI but was linked to the Nelson Mandela Dialogue, which came as a special request from the President. She mentioned that the fellowship was thought to be useful for skills sharing and experience building throughout the continent of Africa and not just in South Africa.  

Mr Thulisa Ndlela, Board Member, NYDA, expressed gratitude for the feedback received and stated that as an entity, they would strive to do more in their final year, which is the following year. He noted the number of post-matric qualifications that had increased in their term and indicated that the levels of literacy were increasing.

Due to budget cuts that affected all spheres of the NYDA, he said that persons with disabilities had also been affected and that the NYDA awaited to hear the budget speech from the Minister of Finance.

He stated that it was important to include young people in the International Trade Forum, as a result, representatives recently made a trip to Singapore at the invitation of the High Commissioner, in celebration of 30 years of diplomatic relations between the two countries. He said this was important in unlocking new markets for the youth and extending the market into the African continent. He said that young entrepreneurs needed to be part of such experiences so that they could be exposed to the corridors of influence.

Ms Karabo Mohale, Deputy Executive Chairperson, NYDA, welcomed the positive remarks from the Committee. She stated that the challenge faced by the NYDA was how the board was structured with only two executive members receiving a salary directly from the organisation. The expectation was that the executive members needed to be at the office on a daily basis, while non-executive board members were employed at different institutions both in the private and public sector. She said this was a challenge as members could not be held to the same standards and expectations. She then asked the Committee to have an understanding in this regard and clarified that there had not been a day when the board members did not fulfil their responsibilities. She indicated that a balance was being established, while, at the same time, not missing out on the talent that came with the members.

The Chairperson interjected to tell Ms Mohale to stop being defensive as this would raise suspicion with the Committee. She said that it did not matter who employed board members, the fact remained that all members needed to prioritise the NYDA and this was not a point that should be up for discussion. She said the matter would be further discussed in the following week and expressed that Ms Mohale wasted significant time discussing her colleagues. She then told her to please move on.

Ms Mohale said that trade would be the main focus in the following financial year. Youth homelessness would also be included and it would be ensured that this matter is resolved in the subsequent report. She added that the NYDA would look out for institutions to collaborate with to address the issue.

She explained that the loan write-off began with the previous group and not the current one. She said that it costs the entity much more to have to follow up with young people on repaying loans and that the indicated loan write-offs in the current report were loans that had been converted to grants which had been done to avoid blacklisting the youth.

She said that the entity had sat with stakeholders to discuss civic work relating to voter education, to increase youth participation in voting next year.

She acknowledged the market for soya beans and said a programme would be formed in this regard.

The Chairperson mentioned a complaint from a deaf person who said that there were no interpreters for them from the NYDA. She asked for the issue to be noted for the next meeting and said the Committee would also assist.

Mr Avela Mjajubana, Board Member, NYDA, apologised for his late coming and said that he had logged in before but had to attend another meeting of paramount importance.

Ms Sharif interjected to say that the current Committee meeting was of paramount importance and that if Mr Mjabulana planned on leaving, he needed to notify the Committee beforehand. She expressed that he needed to be respectful.

Mr Mjajubana apologised again.

He mentioned that the NYDA was engaging with young people in the Eastern Cape and KZN on how to improve their lives. He requested support from the Committee for the entity to receive more funding for young people in various sectors, as increases are important. He emphasised that the available budget limited the work that could be accomplished.

The Chairperson pleaded for the NYDA to take their work very seriously. She mentioned that other responses could be submitted in writing and sent to the Committee.

Ms Khuthi Manana, Chief Financial Officer, NYDA, stated that the NYDA did not use consultants in the current year, and neither would they be used in the subsequent year.

She said the total loans granted since 2014 amounted to R384 000 000. From this amount, the entity was able to recover 60% in the previous years and the remaining 40% had been converted to grants.

Mr Carrim said that the organisation assisted the youth with getting the SDP products accredited by the South African Bureau of Standards (SABS). Once this was achieved, the NYDA would connect the individuals with both the private and public sectors.

He acknowledged that although there was still a long way to go, the NYDA had made a lot of progress since the dawn of democracy in the country, as there are currently more educated young people. He indicated that there was progress despite the challenges such as the global pandemic and the energy crisis in the country, and that the youth unemployment rate was slowly decreasing.

He explained that the Nelson Mandela Dialogue came as a result of the President’s vision to stretch the dialogue to other African countries, and part of the strategy was to utilise the country’s strengths such as having some of the best universities on the continent.

He said the unemployment gender perspective revealed that young women bore the brunt of unemployment far more than young men. However, it is also true that 70% of the beneficiaries of the NYDA programmes are young women. He stated that there were also programmes specifically for unemployed graduates and that the NYDA was in the process of removing work experience as an entry-level requirement for jobs.

He indicated that 20 000 opportunities for young people would be announced, which translated to almost 3 000 opportunities per province. He added that the Western Cape Provincial Government was a co-founder of the National Youth Service programme.

Mr Carrim said that there were 4 100 000 active users on the SAYouth.mobi., which serves as an indicator that the youth is hungry for opportunities and not lazy.

He said the NYDA looked forward to giving a presentation in the following meeting regarding youth homelessness.

He clarified that young people could not be blamed for the failings of the supplier and that through insurance policies, the entity was able to claim money.

He said the vacancy rate was down to 2.5% within the organisation, and a breakdown would be provided.

He indicated that unemployment was a result of a lack of economic growth, and by the year 2025/26, a 5% growth per year should be seen. In the interim, he said, there was a lot the entity could do for the youth. He mentioned that there were collaborations with Anglo-American on a programme and the work would be shared in the following meeting.  

He noted a need for the promised programme in Soweto.

He mentioned that the budget cuts affected the functioning of the organisation and impacted the planned programmes, however, the APP was not affected. He added that NYDA needed to consider how to better restructure the budget.

He said that a breakdown of bursaries supported would be provided.

Dr Bernice Hlagala, Chief Director: Youth Development, Department of Women, Youth and Persons with Disabilities, noted room for improvement within the NYDA, but expressed that they were proud of the work done. She said it would be important to work with other stakeholders to address the challenges of the youth, and as such, mental health was being taken seriously.

She acknowledged the need for interpretation services.

Ms Luwaca expressed that she hoped all the questions had been addressed, and assured the Members that they would continue to do good work in the remaining 13 months and would involve the Committee where necessary.

Closing comments

The Chairperson thanked attendees for their time and participation. She said that the work done by the Committee is important and necessary as it ensures that oversight is done thoroughly. She expressed that she looked forward to seeing delegates in the following week and written and oral submissions were welcomed.

She apologised for the online meeting and said the upcoming one would be a physical interaction.

Meeting was adjourned.