Mastercard Foundation in KenyaAccording to the Business Daily, close to 40% of Kenyan youth were unemployed in 2020. Specifically, unemployment most greatly impacts the age groups of 15-19 and 20-24 in comparison to the rest of the population. Apart from a rapidly growing population, a significant contributing factor to Kenyan youth unemployment is low educational achievement. Only 1% of Kenyan youth have, at most, an undergraduate qualification. The Mastercard Foundation in Kenya is working to change this.

Jobs in Kenya

While Kenya’s economy is growing, most job opportunities are found in the informal sector. About 15 million Kenyans, most being youth, are employed in the informal sector. Turning to informal employment comes as a result of young people lacking formal qualifications. With higher education, young Kenyans can secure higher-paying jobs in skilled markets, enabling them to break cycles of poverty.

The MasterCard Foundation in Kenya

The Mastercard Foundation believes that everyone “deserves an opportunity to learn and prosper” regardless of economic circumstances. By collaborating with the “private sector, donors, young people and civil society,” the Mastercard Foundation creates an environment where the youth can secure employment and entrepreneurs can thrive.

The International Monetary Fund states that the increasing population in Africa “means that by 2035, there will be more young Africans entering the workforce each year than in the rest of the world combined.” However, a shortage of job opportunities and the lack of a skilled workforce present barriers to success. The Mastercard Foundation addresses this “skills mismatch” through various youth empowerment programs.

Young Africa Works

Young Africa Works in Kenya is a Mastercard Foundation initiative that aims to secure “dignified and fulfilling work ” for five million Kenyan youth by 2030. The initiative recognizes that “in the next five years, there will be an estimated six million un- and underemployed Kenyans,” mostly impacting Kenyan youth. The program strategy aims to “break down barriers faced by young men and women when accessing work, skills development or starting their own businesses.”

The initiative aims to accomplish this by harnessing technology and partnering with several organizations, banks and companies, focusing on the sectors of “agriculture, manufacturing, housing and healthcare.” Young Africa Works also focuses on “education and vocational training,” linking employers and job seekers through technology and the growth of entrepreneurs and small businesses through financial inclusion.

Youth Entrepreneurial Support During COVID-19

According to the World Bank, the Kenyan economy can recover from the pandemic in 2021. However, for the youth in the informal sector who do not have access to welfare services and employment benefits, economic recovery may appear to be out of reach. The informal sector in Kenya has been brought to a stall due to job losses. Furthermore, COVID-19 fears lead to heightened vigilance, and as a result, people buy less from street vendors, who are usually young.

In September 2020, Kenya National Chamber of Commerce and Industry (KNCCI) and the Mastercard Foundation partnered to create the COVID-19 Recovery and Resilience Program. The initiative aims to aid the recovery of small, youth and women-led businesses impacted by COVID-19. The initiatives will see “25,000 Micro, Small and Medium-Sized Enterprises (MSMEs) in Kenya benefit from an interest-free, zero-fee short-term concessional loan.” For businesses in the informal sector especially, the aid is a lifeline during the pandemic.

The Mastercard Foundation in Kenya is an example of how the private sector can help fight global poverty by engaging with the needs of the youth in developing countries. While a lot of work remains to aid the economic challenges faced by young people, the Mastercard Foundation in Kenya leads the way.

– Frank Odhiambo
Photo: Wikimedia

Job Shortage in IraqGetting a college degree in Iraq doesn’t mean that you have a guaranteed job in your field after graduating, let alone a job in any field. The job shortage in Iraq has led to an increase in poverty and has destroyed the dreams of many graduates. This job shortage is an ongoing conflict that impacts the goals of the young generations in Iraq. According to the World Bank, 22% of men and almost 64% of women between 15-24 years are unemployed in Iraq.

Iraq’s Economy

With billions going yearly to its public service, the nation is in an economic vise. It has been estimated that public employees get about 17 minutes of work done every day. Currently, Iraq is the seventh-largest country producing oil, but oil revenue has been decreasing. The nation spends little of the income it generates on potential economic development of the implementation of projects. Iraq is unable to pay its bills due to a lack of funds. This led to a financial meltdown, which resulted in the fall of the government after widespread movements against corruption and unemployment. The marches were centered against high state officials in a community where unemployment hovers about 15% and one in every four people lives in poverty, earning as little as $2.20 per day.

Youth Unemployment

Approximately 700,000 young Iraqis join the employment market every year. A primer published for the World Bank on job development in Iraq listed the youth unemployment rate at 36%. There is no noticeable difference in the rate of unemployment between young people with primary education and those with higher degrees. Because of this, Iraqi youth have been at the frontline of occupation riots in Iraq. Similar to Iran, the country’s poor budget management and corruption have been central to their outrage.

Iraq’s prosperity is largely dependent on its ability to build employment for the young population. This is particularly true of university-educated young people. A study by the World Bank estimates that Iraq needs to increase the number of jobs by 100 to 180% to address its workforce needs sufficiently.

Decent Work Country Programmes (DWCPs)

The International Labor Organization (ILO), together with the Ministry of Labour and Social Affairs of Iraq (MOLSA), is implementing DWCPs in Iraq. DWCPs are systems for financial guidance that focus on creating jobs through the growth of the private sector. They also assist with the expansion of social security coverage, freedom of association and National Employment Policy design and implementation. In March 2020, in response to a request by MOLSA, the ILO formed the first cooperation department for Iraqi counties in the city of Baghdad. With a budget of $17.5 million, the program is implementing five projects to encourage quality work and increase job opportunities. These projects will help Iraq’s government, employees and employers.

Overall, there are high hopes for the country’s future. The youth are not going to stop demanding change until they get it. With big changes the government is hoping to make in the next decade, there could be a possible decrease in the rate of unemployment.

– Rand Lateef
Photo: Flickr

Youth Workforce
Pakistan is looking to bridge the skills gap between Pakistan’s youth workforce and the upcoming demands of its rising technology and automation markets. Structural change is necessary for Pakistan as the growing youth population faces challenges such as a rising unemployment rate and socioeconomic and gender disparities that keep students out of the classroom. In 2020, youth in Pakistan faced an unemployment rate as high as 8.5%; today, approximately 44% of children and teenagers are out of school. With 64% of the population younger than 30, Pakistan has more young people than ever who have the power to revolutionize its workforce by becoming re-skilled in relevant and desirable industries.

Pakistan’s Fourth Industrial Revolution

Pakistan is ushering in its fourth industrial revolution with a big challenge to overcome: enrolling more youth in schools where they can begin working with technology at an early age. This is especially critical as countries are growing increasingly dependent on online learning and employment during the worldwide COVID-19 crisis.

Pakistan’s rising investments in automation, e-commerce, digital payment systems and more requires the youth workforce to keep pace with new technologies. Such growth poses many new opportunities for the nation, including modernizing technology and making tasks such as digital banking and online learning easier.

According to Parwaaz, a reskilling initiative that the World Economic Forum supports, the top 10 skills of 2025 include:

  • Technology Use & Monitoring
  • Technology Design
  • Critical Thinking & Analysis
  • Active Learning & Learning Strategies
  • Reasoning, Problem Solving & Ideation
  • Analytical Thinking & Innovation
  • Resilience & Stress Tolerance
  • Complex Problem Solving
  • Leadership & Social Influence
  • Creativity & Originality

These skills can take the Pakistani youth beyond their current capabilities by smoothing their transition into the workforce while giving existing employees opportunities for career advancement.

A Multistakeholder Approach to Success

Pakistan’s largest skills development fund, the Punjab Skills and Development Fund (PSDF), is partnering with the World Economic Forum to join the “Reskilling Revolution.” According to Managing Director Saadia Zahidi, the goal of the revolution is to bring better work, skills and education to over 1 billion people by 2030. Challenges to reskilling include high costs, disconnects between training and relevant skills and few private training opportunities. However, with the launch of Parwaaz, a more structured form of reskilling is underway.

A multi-stakeholder public and private skills training initiative, Parwaaz has pinpointed six sectors that require trained workers in order to accommodate future market demands. These sectors include:

  • ICT
  • Financial Services
  • Textile
  • Hospitality
  • Retail and Services
  • Manufacturing & Light Engineering
  • Agriculture & Livestock

Parwaaz is expecting to change the core skills of 40% of workers in the country, raise the rate of automation from 33% in 2020 to 47% by 2025 and give two out of three employers returns on human capital investment. It plans to achieve this by creating incubators that will train 1,000 young people by June 2021 in market-relevant skills. Parwaaz will continue to function with financial and policy support from the Pakistani government and support from other stakeholders such as educational institutions and industry experts.

Integrating Pakistan’s youth workforce into new, more advanced markets is a nationwide effort that will result in high-performing companies, skilled employees, increased innovation and a stable structure for the future. Ultimately, investments in technology, automation and the growing youth workforce will lead to a brighter future for everyone while helping lift vulnerable populations of poverty.

Julia Ditmar
Photo: Flickr

Youth Development in the PhilippinesThe Philippines has an opportunity for rapid economic growth and the potential to greatly innovate industry across the country. This opportunity comes from the number of young people in the country. Young people account for 50% of the entire population of the nation, leaving it with immense potential for economic growth as these young people begin to enter the workforce. Youth development in the Philippines is crucial for the country’s transformation into a resilient nation.

The Education Problem

Unfortunately for the Philippines, an alarming portion of these young people are currently not in any form of education or employment. One-fifth of all youth in the Philippines are either jobless or not attending school or employment training.

Even before the COVID-19 pandemic, the Philippines was facing an education crisis. The country placed last in reading comprehension and second to last in both science and mathematics in an international student assessment.

USAID: Youth Development in the Philippines

USAID has committed to help improve and promote public education and other forms of education in the Philippines. Starting in 2018, USAID began a five-year effort to create a series of programs aimed at uplifting economically disenfranchised Filipino youth who are at the most risk of poverty.

One program, in particular, YouthWorks PH is a five-year partnership between USAID and the Philippine Business for Education that engages the private sector to address the education needs of youth as well as the skill requirements of employers. This partnership will improve access to training and employment opportunities for at least 40,000 youth through an innovative work-based training approach. Young people are able to earn a competency certificate from a university or training institute while working in partner companies.

More than 5,000 young Filipinos will have access to free technical and vocational training as a result of this initiative partnering with Aboitiz Construction and D.M. Consunji, Inc. (DMCI), two of the biggest construction companies in the country.

This type of on-site vocational training will help prepare youth for well-paid employment opportunities and will create more skilled workers in the Philippines.

There are also other programs created by USAID specifically to increase the quality and accessibility of education in the Philippines. All Children Reading (ACR), is a program to increase the reading skills of Filipino children. ABC+ aims to address the interconnected factors that contribute to low education outcomes in the poorest performing areas of the Philippines.

Youth Development Potential

Young Filipino people could potentially bring about massive economic growth in the country. In order to fully capitalize on this opportunity, resources and development opportunities must be provided to the youth so that they can fully integrate into the workforce as skilled workers. For this reason, the youth development work of USAID is integral. Not only will it lift thousands of poor Filipino youth out of poverty but it will help create a stronger economy for the Philippines.

– Christopher McLean
Photo: Flickr

Serbian YouthBelgrade is Serbia’s capital, with a population of over 1.7 million people. With a 40% youth unemployment rate, large numbers of Serbs were forced to leave the country and search for work elsewhere. Unemployment in Serbia is significantly higher than the European average and one of the country’s significant economic challenges is the need for private-sector job creation. In the last 12 months, Serbia has had 62 startups with $0 in total funding. More than ever, the country is in need of a program like Impact Hub to help Serbian youth.

Impact Hub

Impact Hub was founded in London in 2005 and now has over 7,000 members in more than 60 locations, one of which is Belgrade. The program is funded by USAID and assists young innovators in accessing the tools they need to connect with investors because unsuccessful funding is the biggest obstacle for startups. On Impact Hub’s website, online visitors can become “Impact Angels” and invest in a startup in minutes.

Impact Hub assists in the development of new products and business models. The program focuses on technological innovators and entrepreneurs and the future of their businesses. The organization provides collaborative workspaces, program support, an inspirational environment and diversity.

Impact Hub Belgrade offers young entrepreneurs resources such as acceleration and connections to grow their business. It is both a community center and a business incubator. The program encourages the sharing and building of a community and the space in which the project operates is used to organize events, from arts and culture to entrepreneurship.

Guiding Young Entrepreneurs

Impact Hub founders believe talent allows for growth and production. Since many young people know how to code, design and create innovative solutions, Impact Hub aims at helping  Serbian youth grow their startups. The program secures investments and teaches young people about using money in competitive markets. Impact Hub wants to get young entrepreneurs out of their comfort zone to expand their network. There are two different paths that Impact Hub employees guide entrepreneurs through. The first is “Core Competence for Market Validation,” in which individuals learn how to get the first buyer, expand their customers and make financial projections. The second is “Growth Readiness” and focuses on profiling a buyer, expanding traction and creating revenue models.

Impact Hub Belgrade implemented an initiative called We Founders, in which startup teams, founders, leaders and business developers can connect and work to improve their businesses. Impact Hub helps form partnerships to allow people to share the risks and prepare together for possible losses.

Impact Hub is Positively Impacting

Participants of Impact Hub raised $230,000 in investments from the Serbian public sector and private investors, not including a $100,000 investment from Dubai’s Innovation Impact Grant Program.

Alongside USAID, Impact Hub Belgrade gives Serbian youth the chance to see their innovations and ideas come to life. Outside of Belgrade, Impact Hub is available worldwide to allow individuals the opportunity to receive education regarding the tools and skills necessary for creating a business.

– Rachel Durling
Photo: Flickr

Updates on SDG Goal 8 in Spain
The Sustainable Development Goals (SDGs) are a set of 17 objectives that the United Nations created to measure a country’s progress in the journey towards sustainability. The focus of SDG Goal 8 is economic growth and quality jobs. By creating decent jobs, a country can significantly improve the living standards of its citizens. The COVID-19 pandemic has slowed the positive progression of this goal for many countries. Meanwhile, the countries that were falling behind in economic growth before COVID-19 hit are even farther from their objectives now. This article will focus on providing updates on SDG goal 8 in Spain.

6 Indicators of How a Country has Progressed Toward SDG Goal 8

These are the six indicators of a country’s progress toward SDG Goal 8:

  1. Adjusted GDP Growth
  2. Victims of modern slavery
  3. Adults with a bank account
  4. Work-related accidents associated with imports
  5. Employment-to-population ratio
  6. Youth not in employment, education or training”

SDG Goal 8 in Spain

Currently, Spain has achieved the SDG for adjusted GDP growth, victims of modern slavery, adults with a bank account and employment-to-population ratio. “Significant challenges” remain in the work-related accidents category, but Spain is currently on track to reach the SDG. “Major challenges” remain for the youth in employments or education indicator. Though Spain has made significant progress towards a sustainable economy, it continues to face these challenges. The Mediterranean country has specifically struggled to create opportunities for its youth. With about one in five people between the ages of 15-29 unemployed and not in any type of education or training, Spain still has some ways to go before it can achieve economic sustainability. However, the country is on track to achieving the SDG.

The Reasons Spanish Youth Struggle to Find Employment

The two largest contributors to the lack of opportunities for young people are overqualification and a high dropout rate (relative to other E.U. countries). In 2010, the school dropout rate in Spain was 31.6%. For comparison, the rate for both Finland and Germany was about 12%. Meanwhile, young people who have obtained a formal education tend to lack an understanding of how to find a job and market themselves. Unfortunately, Spain’s methods of preparing young people to enter the labor force do not appear to be as effective as some of its surrounding European countries.

Plan of Action

Spain’s labor ministry has developed a plan of action to combat youth unemployment. By 2021, Spain hopes to achieve the following objectives:

  1. Develop a new economic model with an emphasis on productivity and workplace dignity
  2. Support public employment services in offering individualized assistance to those seeking work
  3. Create more skill-building opportunities
  4. Assist young people in becoming more self-sufficient employment seekers
  5. Fight gender biases and the gender wage gap through equal opportunity training
  6. Encourage young people not to give up on seeking employment
  7. Pay special attention to more at-risk groups such as migrants and school dropouts

Youth Business Spain

Some organizations are on the ground working to create employment opportunities for Spanish youth. One of those organizations is Youth Business Spain, a branch of Youth Business International (YBI). YBI helps young people begin or further their careers. The organization does this by providing training, mentorship and financial support to young entrepreneurs. Through this program, young Spanish entrepreneurs have received over 28,400 hours of mentorship dedicated to improving skills in business management. From 2013 to 2017, over 1,000 people benefitted from Youth Business Spain. The program has a multitude of inspiring success stories, but it hopes to reach out to even more young entrepreneurs in the future.

Looking Ahead

While significant challenges remain, the country is on track to achieve SDG Goal 8 in Spain. After the Spanish financial crisis of 2008, Spain’s economy was struggling to stay afloat. However, the Spanish government and many non-governmental organizations have gradually improved economic opportunities for young people in the country. Though COVID-19 has caused a bit of a setback in most countries, Spain continues to work on improving employment situations for Spanish youth.

– Jillian Reese
Photo: Flickr

Youth in Serbia
Serbia is a European country that was formerly a part of Yugoslavia. Located in the West-Central Balkans, it is surrounded by Romania, Hungary, Bulgaria and Croatia. The majority of the population is of South Slavic origin and they speak Serbo-Croatian, which is nearly the same language that the Croats, Bosniaks, and Montenegrins speak.

Over time, a majority of Serbia’s population migrated to the capital city Belgrade from more rural areas. As recently as 2018 however, 43.9% of the people in Serbia still lived in the countryside. In 1945, when the country was still part of the former Yugoslavia, Serbians were under a socialist economic system. Although some free-market characteristics were later adopted in 1948, there was still a large emphasis on socialist self-management.

Youth Unemployment

Today, the youth in Serbia have been consistently making efforts to promote and provide a platform for entrepreneurship among young citizens. Near Belgrade—which has been a center for innovation and entrepreneurship over recent years—is the Impact Hub Belgrade.

One problem affecting the economy in Serbia is related to job availability among young citizens. The unemployment rate among youth is 40%, so providing employment opportunities to these citizens would impact a large portion of the population that is struggling to enter the job market or start businesses.

As a result of poor job opportunities, large numbers of young Serbians leave Serbia in search of work elsewhere. If the youth had more accessible jobs and economic opportunities, it may be more compelling for them to stay and stimulate their own economy, as opposed to the economies of other countries.

Impact Hub

Impact Hub focuses on supporting young entrepreneurs by strengthening their networks with investors in order to attract their investments. This provides an economic foundation for businesses to operate and produce goods and services.

One of the programs initiated by Impact Hub was called the Launch Pad, which provided these young entrepreneurs not only with tools needed to create new products, but with training to broaden their business skills. In addition, the program helped the youth in Serbia develop business models and connect with investors at home and abroad. This program received grants from USAID to help with funding.

Even though the program has ended, it raised a total of $230,000 from the domestic public sector, as well as from the private sector both at the national and international levels. Investments continued, including a $100,000 fund from the Innovation Impact Grant Program in Dubai.

Continued Efforts and Progress

Serbia’s economic freedom score by 2020 has increased by 2.1 points, bumping it to 66.0, and it saw GDP growth as recently as 2018. Even though Serbia has faced numerous economic difficulties since its independence, there are efforts being taken by its citizens to drive and stimulate the economy. The youth in Serbia have especially taken notable actions and the country continues to be supported by the USAID and many other programs and countries domestically and internationally.

Fahad Saad
Photo: Pixabay

Youth Entrepreneurship in Serbia
Serbia is a southeastern European country with an upper-middle-income economy. It ranks relatively high on the Human Development Index (63rd), Social Progress Index (53rd) and the Global Peace Index (54th). However, the nation suffers from high unemployment, especially in the youth population: Serbia recorded a youth unemployment rate of 30.3% in 2019. The lack of entry-level jobs consequently drives many young Serbians to flee their home country in search of work elsewhere. However, USAID has invested in an inventive solution to this problem: initiatives to promote youth entrepreneurship in Serbia.

Impact Hub Belgrade—Fostering Youth Entrepreneurship

USAID’s most notable endeavor is Impact Hub Belgrade. Impact Hub is a USAID-funded global network focusing on establishing entrepreneurial communities in cities worldwide. Serbia’s Impact Hub is located in Belgrade, Serbia’s capital city. It specifically focuses on youth entrepreneurship, helping youth-led start-ups to attract potential regional and international investors. In particular, it helps hone and validate young entrepreneurs’ business models, providing them with the materials and skills needed to turn their ideas into reality. Insufficient access to finance is the number-one challenge young entrepreneurs face. Therefore, Impact Hub dedicates itself to eliminating this obstacle and creating boundless opportunities for young Serbians. The program celebrated its fifth anniversary in December 2019.

Impact Hub Belgrade also prioritizes gender equality in its work. While Impact Hub Belgrade has a special focus on youth, it also recognizes the unique barriers that young female entrepreneurs face. On its anniversary in December, Impact Hub launched Women Entrepreneurs (WE) Founders, the first Serbian female investment group dedicated to fostering and supporting gender-diverse entrepreneurial teams and companies. Some of its techniques include ensuring women have an equal role in decision making, building trusting relationships between men and women in the workplace and encouraging women to take leadership positions.

Junior Achievement

Junior Achievement is another USAID-funded entrepreneurial program. The program is a training curriculum with the intention of teaching Serbian high school students the essentials of entrepreneurship. These essentials include writing business plans, identifying product placement and forecasting earnings. It ensures Serbian high school graduates enter the job market with the technical skills necessary to successfully establish a business. And while Junior Achievement programs are present throughout Europe, Serbia’s is among the strongest; in 2018, Belgrade hosted the European Student Company Competition, where 39 student-led companies from across the continent convened to present their businesses to a jury of prominent Serbian entrepreneurs.

Non-Governmental Organizations

Non-governmental organizations also support young entrepreneurs. A notable example is Smart Kolektiv, an independent nonprofit organization with the stated purpose of promoting youth entrepreneurship in Serbia. Smart Kolektiv assists young entrepreneurs in establishing their businesses. Its hope is that Serbia’s youth will use their power to drive positive social change.

Success in Entrepreneurship

Young entrepreneur success stories abound across Serbia. One example of lucrative youth entrepreneurship in Serbia is Nikica Marinkovic’s Box System, an eco-friendly replacement for styrofoam designed to transport organic produce. Thanks to Impact Hub, Marinkovic gained funding from Austrian investors and U.S. markets that allowed him to expand his business.

Encouraging youth entrepreneurship in Serbia is just one way to encourage young Serbians to stay in their home country and fulfill their dreams. However, the popularity of these initiatives and their encouraging results also demonstrate that fostering youth entrepreneurship is a lucrative option for Serbia’s economy. Prosperous, youth-led operations continue to emerge throughout Serbia, from independent coffee shops to cutting-edge technologies.

Abby Tarwater
Photo: Flickr

Innovations in Poverty EradicationA new job-search platform in South Africa seeks to put an end to youth unemployment. Entrepreneurs Anish Shivdasani and Shafin Anwarsha founded an online company called Giraffe in 2015 to help reduce the staggering youth unemployment rate. Securing jobs for young South Africans is key to alleviating life-long poverty, as well as improving education and access to resources. The startup uses a specialized algorithm to match job-seekers to employers, making it one of the many innovations in poverty eradication in South Africa.

Solving Unemployment in South Africa

Around 40% of South Africans are unemployed, and the youth unemployment rate is even higher at nearly 50%. The government has made efforts to dismantle poverty and inequality since the end of apartheid in 1994 by building over two million new houses, improving access to clean water and distributing social grants to millions of people in poverty. The economy grew by roughly 3.5% yearly from 1998 to 2008, producing millions of new jobs. The financial crisis of 2008 halted some of this progress, but all efforts for improvement will neutralize if half of the country’s young people grow up outside of the job market.

With the long-term effects of youth unemployment in mind, Shivdasani and Anwarsha set out to curb the trend. In 2015, they introduced Giraffe to South Africa’s smallest province Gauteng, home of the country’s largest city Johannesburg. A year later, with 100,000 job-seekers signed up, they brought Giraffe to the greater metro areas of Cape Town and Durban. Today, over 1 million people have joined the platform as well as thousands of businesses, both small and large, looking for the right match.

The App That is Not Just for Smartphones

As one of the innovations in poverty eradication in South Africa, Giraffe’s success is a direct result of its ease of use and technological innovation. Anyone with a cellphone that has an internet browser, not necessarily a smartphone, can use the service. Job-seekers must first visit Giraffe’s website from whatever device they have available, and then fill out a form that takes about eight or nine minutes. The company then creates a CV for the user and uploads it to their database. Employers have a short sign-up process as well.

From there, Giraffe’s algorithm does all of the work, matching the right candidates to the right jobs. The algorithm will even set up the interview at an agreed-upon time. Most recruitment agencies require an agent to contact both parties and review qualifications by hand. Giraffe works faster and keeps costs extremely low for businesses by employing technology instead, charging up to 30 times less than other recruitment agencies. The platform is free for job-seekers.

The Future of Giraffe and UNICEF’s Innovation Fund

In July 2020, Giraffe became a recipient of funding from UNICEF’s Innovation Fund, along with 10 other start-ups around the world that are focused on eradicating inequality of opportunity for young people. In recognition of the importance of education and skill-level on employability, Giraffe intends to use the money to build a job-seeker content portal, drawing from Giraffe’s labor market data and highlighting the most in-demand skills. The new feature will help educate and upskill young people to improve their career prospects and will hold Giraffe to a higher standard as one of the newest innovations in poverty eradication in South Africa.

In addition to the funding, Giraffe now has access to UNICEF’s team of innovators and networks, and plans are in place to make both the matching algorithm and content portal open source for other global organizations to use.

McKenna Black
Photo: Flickr

Unemployment in South Africa
Although South Africa’s GDP is the second-highest in Africa, more than 50% of the population lives in poverty. One of the factors preventing people from escaping poverty is the nation’s staggering unemployment rate. With over 28.18% of the population looking for work in 2019, South Africa’s unemployment rate is one of the highest in the world. Giraffe is a job recruitment platform that Anish Shivdasani created in 2015 with the mission of alleviating unemployment in South Africa.

3 Causes of Unemployment in South Africa

  1. Apartheid systematically excluded black people from the educational system and the skilled workforce throughout the 20th century. Recently, there are more women and people of color participating in the education system and receiving training. As a result, there are more job seekers in South Africa than there are hiring employers.
  2. South Africa’s labor market favors highly skilled workers. This results in few accessible jobs for the general public. The nation’s labor laws, which include high wages and policies that constrain employers from letting employees go, discourage employers from hiring young workers with minimal experience.
  3. Despite the government’s increased spending on education, the South African education system does not provide students with adequate training or skills necessary for the type of employment available in the formal sector. Additionally, many students are unable to finish school and are, therefore, highly likely to experience unemployment. The problems within the nation’s education system resulted in a youth unemployment rate of 55.97% in 2019.

Giraffe: A Solution

More than 1 million job seekers use Giraffe’s platform, and the software has invited more than 500,000 applicants for an interview in the last five years. The app is convenient for both employers and applicants, as it takes just a few minutes to post a job with the employer’s desired criteria. Here are three ways Giraffe addresses the problem of unemployment in South Africa.

3 Ways Giraffe Addresses Unemployment

  1. Giraffe aims to empower its employers by focusing on the problem of job retention in South Africa. The technology screens candidates so that employers only have to assess applicants that meet their qualifications. Giraffe even provides an option for a voice recording through which applicants respond to a question that the employer poses. Therefore, when candidates receive a request to come in for an interview, employers are confident that they have picked the right person for the job.
  2. Giraffe is the platform with the most medium-skilled workers in South Africa, including recent graduates and students. The app offers jobs for many levels of training rather than just providing jobs to wealthy, highly educated applicants. This could eventually serve to reduce the youth unemployment rate by providing opportunities to young people with mid-level training.
  3. In 2019, Giraffe announced that it would provide its services “for free to exempted micro-enterprises (EMEs) who are willing to hire first-time job-seekers.” This helps small businesses who are often unable to afford job-recruitment technology. In South Africa, where economic competition is rare and small businesses struggle to gain traction, Giraffe’s services could serve to invigorate entrepreneurial culture while actively reducing unemployment.

Impact of COVID-19

With more than 380,000 cases and over 5,000 deaths, COVID-19 has taken a toll on unemployment in South Africa, which experts expect to increase to 35.31% by December 2020. Additionally, 8.1% of people reported having closed their businesses or lost their jobs due to the COVID-19 lockdown in May 2020.

Giraffe’s platform will be integral to the thousands of people who lose their jobs in the wake of COVID-19, as more people will be looking for work once the virus subsides. The company also adapted to COVID-19 by educating other start-ups about how to conduct business productively from home.

Looking Forward

In the future, Giraffe aims to provide job training through its app. This should provide even more opportunities for job seekers to improve their skills, become qualified for higher-paying jobs and to meet more employers’ criteria. The start-up also intends to expand internationally and to continue to narrow its focus on small businesses.

Giraffe is a fast-growing company using modern technology that has garnered support and funding from around the world. Unemployment remains one of the most pressing issues in South Africa. However, companies like Giraffe provide tangible solutions that will help address the issue of unemployment in South Africa.

Melina Stavropoulos
Photo: Flickr