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The South African Poverty Plan to Combat Poverty

South African Poverty
South Africa ranks among the most unequal nations in the world, and although the country has made significant progress in reducing poverty, the fight is not over yet. The World Bank reports that sluggish economic growth, an unfavorable business climate and a lack of employment prospects are the main reasons why poverty and inequality have not reduced. However, the South African presidency wants to spend up to 88.5 billion rand ($4.6 billion) annually to combat poverty.

Poverty in the Average Home

Only 25% of South African homes reported possessing all the needed assets for a quality life, according to a recent report titled “Decent Standard of Living: Findings on Possession of the Social Perceived Necessities in 2022.” These socially perceived necessities, or SPNs, might consist of a wide range of things, such as social networks and services from the government like power, as well as consumer goods like refrigerators and goods.

Even though less than a quarter of households have SPNs, South African poverty is decreasing. Findings determined there are more persons who own these SPNs now than in 2015. There are 22 SPNs, and the cost to obtain them all has decreased from R8,327 per capita per month in 2018 to R6,034; this would explain why more South Africans are able to afford these items.

Signs of Poverty Decrease

The increase of SPN in homes is not the only sign of South African poverty going on decline. Many have observed the decrease in poverty over the years, including South African President Cyril Ramaphosa. In 2019, the African National Congress (ANC) met to assess the status of its 2019 manifesto; Ramaphosa reported having a significant degree of success.

 “The president’s claim that multidimensional poverty had gone down is reflected in the available data,” Kirsten Crosser stated in, her article on AfricaCheck. “[This] saw the poverty rate according to the South African Multidimensional Poverty Index (SAMPI), decrease from 17.9% in 2001 to 7% in 2016.”

Unfortunately, there are no current up-to-date numbers, making it impossible to demonstrate that multidimensional poverty is still declining after the rate of fall dropped dramatically between 2011 and 2016.

The Solution

In the struggle against South African poverty, there is yet hope. According to the Financial Post, “Olive Shisana, President Cyril Ramaphosa’s special adviser on social policy suggested a range of measures including an unemployment grant, food support and job creation initiatives.” Some of these initiatives include a grant to support basic income, solving child nutrition through subsidizing food and aid to small enterprises along with training for women and youth, amongst other ideas.

This plan to cure South African poverty has received opposition. South Africa’s Finance Minister Enoch Godongwana cautioned that upholding the present unemployment grant might necessitate raising the current tax rate or terminating some other government initiatives. Hope is the only thing left for the successful introduction and implementation of Shisana’s suggested anti-poverty plan. Establishing these initiatives in such a way to reduce the amount of friction between different arms of government might revive the rapid decline in South African poverty.

 – Caleb Picone
Photo: Flickr

Addressing the Energy Crisis in South Africa

Energy Crisis In South AfricaThe energy crisis in South Africa materializes as ongoing rolling blackouts, also known as loadshedding, which has led to crippling economic impacts. The energy crisis has resulted in the loss of jobs and disruption to businesses, leading to a diminished economy and reduced investments in South Africa. Relying heavily on imported electricity has made energy distribution expensive, economically unsustainable and unreliable. 

Loadshedding

The government began implementing loadshedding in 2007 in order to prevent total nationwide blackouts and reduce the strain on the national electricity grid. These rolling blackouts still continue today as the energy crisis in South Africa has only worsened. President Cyril Ramaphosa stated in February 2023, “We are therefore declaring a national state of disaster to respond to the electricity crisis and its effect.” Loadshedding refers to the deliberate and controlled process of cutting power for specific periods of time with the aim of conserving energy when the demand for energy exceeds the levels of supply.

Eskom, the current state-owned power company, faces a myriad of challenges that have impacted its operations. The company has liabilities of $26 billion as of February 2022 and relies on outdated infrastructure. Malfunctioning power stations compromise Eskom’s ability to deliver reliable energy supplies. Adding to this, strikes by Eskom workers demanding higher pay exacerbate an already precarious situation.

Government Debt Relief for Eskom

In South Africa, the economy grew 0.4% at the start of 2023; the low rate reflects the impact of the energy crisis on the economy. Crippling power cuts have been a key chess piece in the country’s weak economic performance. However, in February 2023 the government of South Africa vowed to take on the growing debt of Eskom, with a debt relief package of R254 billion over three years. The debt relief will allow the state-owned enterprise to prioritize expanding the national energy grid through renewable energy plants. This is a long-term investment to stabilize the country’s power grid. Though the debt relief will not end the power cuts short term, this commitment will help put South Africa on the path to energy stability and sustainability.

Potential Solutions and Solar Energy

Solutions to the energy crisis are complex and come with extensive challenges. As South Africa heavily depends on coal for power generation, the nation stands as the 12th largest carbon-emitting country, according to Reuters. South Africa is looking to increase its renewable energy capacity, especially through greater reliance on solar energy and is looking to China for technology and equipment in this regard. Reuters reports, “The country has up to 66 gigawatts (GW) of wind and solar projects in the pipeline… more than 5,500 megawatts (MW) out of this would come online by 2026.”

The energy crisis in South Africa has affected the economy and the lives of civilians, plunging many into poverty and debt. Moreover, blackouts impact daily life in several areas and impede productivity. While there is no quick-fix solution to the energy challenges in South Africa, the South African government’s implementation of debt relief for Eskom will reduce the economic strain on Eskom and will allow Eskom to prioritize new infrastructure and increase renewable energy sources. With a more stable electricity grid, South Africa could see poverty declining and the economy growing more significantly.

– April Plenderleith
Photo: Flickr

The State of Renewable Energy in South Africa

Renewable Energy in South Africa
The transition to renewable energy in South Africa has been an uphill battle considering the nation’s historically heavy reliance on coal. However, ongoing efforts by the nation to accelerate the transition toward renewable energy sources offer cause for optimism.

South Africa’s Dependence on Coal

South Africa’s energy sector is highly dependent on non-renewable energy sources, namely coal. In 2021, coal-fired power stations accounted for more than 84% of South Africa’s energy with clean energy sources constituting just 13.7%.

The environmental consequences of the nation’s overreliance on coal are notable: in 2019, South Africa stood as the 12th highest emitter of carbon dioxide in the world. Moreover, the economic consequences of a coal-dominated energy sector are devastating for many South Africans as the nation’s economy continues to recover from the pandemic.

Ongoing Challenges with Energy Grid Failures

In South Africa, the need to address energy poverty is pressing as about 3.4 million households in the nation lacked electricity in 2015, according to the South African government. A recent strike in June 2022 by workers at Eskom, South Africa’s state-owned energy company, has led to prolonged electricity blackouts, amplifying already existing problems with the outdated, deteriorating coal-fired power stations and mismanagement. For many South Africans, these blackouts can mean up to eight hours per day without electricity.

Since 2008, Eskom has relied on load-shedding, or rotating blackouts, to mitigate the impact of the nation’s insufficient energy supply on consumers. The economic consequences of the more frequent blackouts in 2022 are severe, exacerbating inequality in a nation where more than half of the population lived in poverty in 2014, according to the latest World Bank data.

Amid the energy blackouts, poor families living in informal settlements and townships face disproportionate impacts and demand for electricity is only increasing as South Africa rapidly urbanizes. These recent energy grid failures and their negative repercussions on poverty point to the need to diversify South Africa’s energy sector.

Notably, South Africa has made substantial progress in expanding electricity access in the past — between 1994 and 2012, household electrification increased from 36% to an unprecedented 87%. Renewable energy sources have the potential to continue to fill the nation’s current void, alleviating the energy poverty that millions still experience. In 2014, South Africa’s Department of Energy set a target to provide electricity to 3 million households through the grid and an additional 300,000 households using non-grid solar energy, projected to resolve 90% of backlogs. While South Africa has not yet achieved this goal, the government has begun to zero in on renewable energy as instrumental to its approach.

South Africa’s Governmental Response

On July 25, 2022, South African President Cyril Ramaphosa announced a series of interventions his government will take to address the energy crisis. Measures proposed include doubling the acquisition of renewable energy this year to more than 5,000 megawatts and providing incentives for households and businesses with rooftop solar panels to sell excess solar power to Eskom to reduce the need for load-shedding. These efforts to increase private sector energy generation are a necessary first step to facilitating this transition toward renewable energy in South Africa.

While these measures are an important start, South Africa will need to spend an estimated $250 billion over the next 30 years to finance shutting down coal-powered plants and transitioning to wind and solar power. Public resources lack the funds to provide sufficient backing for this effort. At the U.N. Climate Change Conference (COP26) in Glasgow, Scotland in November 2021, the U.S. along with European nations pledged only $8.5 billion to help South Africa transition away from coal. Thus, a significant contribution from the private sector will be critical.

According to Energy Minister Gwede Mantashe in December 2021, the South African government allocated $2.8 billion in contracts for 25 renewable energy projects to the private sector. These projects include wind farms and photovoltaic plants and should increase South Africa’s electricity capacity generation by nearly 5%.

Additionally, several companies are turning to solar energy, including South African Breweries (SAB), one of the nation’s largest companies. SAB aims to withdraw from Eskom’s grid, with the goal of sourcing 100% of its electricity from renewable energy by 2025. So far, these initiatives have shown promise: in 2021, SAB’s decision to transition to solar power resulted in more than 9,000 tons of carbon dioxide emissions reductions.

New Investments in Renewable Energy in South Africa

As of August 2022, USAID and Prosper Africa are overseeing a delegation of U.S. investors with more than $1 trillion in assets visiting South Africa to meet with fund managers, looking to invest in the nation’s transition to renewable energy.

This visit also coincides with the U.S. government’s attempts to deepen diplomatic ties with South Africa. On August 8, 2022, U.S. Secretary of State Antony Blinken met with South African Minister of International Relations Naledi Pandor to discuss the ongoing partnership between the two nations in trade and investment. Going forward, an active and continued diplomatic relationship between the two nations will be essential to achieve progress.

Looking Toward a Brighter Future

The possibility of large new investments in renewable energy in South Africa indicates a potential future of increased trade between the U.S. and South Africa. The transition away from coal-dominated energy will have transformative effects on the nation’s economic development, reducing poverty and deep-rooted inequality by creating a stronger, more reliable power grid and simultaneously reducing greenhouse gas emissions. Furthermore, the renewable energy industry represents an opportunity for tremendous job creation and increased economic opportunities.

– Oliver De Jonghe
Photo: Flickr

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Steps to Improve Women’s Rights in South Africa

Women’s Rights in South Africa
Despite recent groundbreaking laws and activists campaigning for women’s rights in South Africa, many women still live in fear of harm. Especially because of COVID-19, gender-based violence has grown heavily, as women must live with their abusers at home while services to assist these survivors are being put on hold. Out of this persistent injustice, however, new steps have emerged for women’s rights.

Violence Against Women in South Africa

In addition to COVID-19’s devastation, the death toll of women by violent criminals has risen. In response, South African President Cyril Ramaphosa proposed to make public the national register of offenders convicted of violence against women. This new step for women’s rights in South Africa will help ensure that apprehended criminals will not continue to murder and rape.

In an interview with The Borgen Project, Mowbray resident Aimee Sawyer, a domestic abuse survivor, spoke about how even in high school, she walked in fear to school every day, recalling a vivid memory when a builder shouted to her, “Hey girl come here so I can kiss your white ass.”’ Ever since she could remember, there was always a new story about horrific acts of violence against women. “Today,” she said, “it was a story about a woman who was shot and killed by her husband who followed her into a police station. He shot her as she was laying a charge of domestic violence against him.”

The Gender Wage Gap

The gender wage gap, estimated to be between 15%-17%, is also a concern for women’s rights in South Africa. A South African woman would need to work two months more than a man to earn an equivalent salary to what he would earn in a year. However, some progress has occurred through The Employment Equity Act, which promotes equality and fair treatment in the workplace, no matter race, gender or marital status. More recently, The Equal Pay International Coalition and The Equal Pay Platform of Champions aim to combat the gap through activism and representation.

Poverty and Women’s Rights

Poverty is another factor nullifying women’s rights in South Africa. Female-headed households are vastly poorer than male-headed households. Additionally, every two out of five urban dwellers are poor in comparison to four out of every five in rural areas. One reason for this is social discrimination. Women are poorer due to less paid work, education and owning less poverty. But recently, women have resumed political leadership roles, advancing legislation that promotes gender equality, such as equal land rights and reproductive rights to women. The African Growth and Opportunity Act, now extended to 2025, is a prime example of how the U.S. is aiding South Africa by improving trade and creating a free-market relationship.

South Africa is combating gender-based violence, according to the many relief systems implemented. “I think the law says that women and men have equal rights, but sadly, for many citizens, that is not the case,” Aimee Sawyer said. Nevertheless, gender equality, while still far off, is not unattainable.

 – Shelby Gruber
Photo: Flickr

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Health Disparities During Apartheid in South Africa

Health Disparities During Apartheid
Apartheid was a system that law in South Africa enforced. It was based on racial classification that imposed a rigid hierarchy. The system classified people into categories of white, Indian, colored and black. These categories determined where people could live, work and go to school, as well as who they could marry and whether or not they could vote. The government displaced many people and decreased funding for social services such as education and health care for nonwhites.

Disparities During Apartheid

Health disparities during Apartheid reflected these racial categories. Non-communicable disease rates increased for whites while poverty-related diseases, such as infectious diseases or diseases that poor sanitation or living conditions caused, increased for blacks. Additionally, blacks faced much higher maternal, infant and child mortality rates which reflects access and quality to health care.

Another significant issue that arose in the health system during Apartheid was the change in the doctor to patient ratio. Estimates in the early 1970s determined that the doctor to population ratio in the Bantustans, the areas the system specifically set aside for blacks to live, was 1 to every 15,000 rather than 1 to every 1,700 in the rest of the country. This highlights the lack of health care coverage and the extent to which black and non-whites suffered systematic discrimination both economically and in terms of health care. From 1980 to 1990, the number of doctors working in the private sector increased from 40 to 60 percent. By the time Apartheid ended in 1994, almost three-quarters of general doctors worked in the private sectors, making it even more difficult for people to afford health care.

Current Health Inequalities

Health disparities during Apartheid significantly impacted the health care situation in South Africa today. There are currently severe health disparities in South Africa stemming from economic inequalities. The wealthiest 10 percent of the country receives 51 percent of the income, while the poorest 10 percent receive .2 percent of the income.

Despite the fact that South Africa groups with middle-income countries in terms of economy, the health issues in South Africa are worse than in many low-income countries. Post-Apartheid, the burden of disease quadrupled due to an increase in diseases of poverty, non-communicable diseases, HIV/AIDs, tuberculosis and increased violence and injury. While the country has made significant progress, high tuberculosis and HIV prevalence remain major issues.

Improvements in South Africa

Many consider the 1996 Constitution that South Africa enacted after the end of Apartheid to be very inclusive and democratic even compared to other countries around the world. It reflects the difficult fight against lawful discrimination and segregation and includes a Bill of Rights, acknowledging the universal right to health care services, food, water and social security. This was a significant step towards progress despite the formation of severe health disparities during apartheid.

In addition to the 1996 Constitution, the national state pension system unified and new grants emerged such as child support grants. There have also been major improvements regarding providing basic services such as water and electricity to poor households. There has been significant progress with regard to legislation, but one should not overlook the social and economic factors.

Redistribution requires priority over growth in South Africa in order to address the issues of health inequality. Following Apartheid, President Mandela focused on growth through redistribution as a way of focusing on decreasing economic inequality. After Mandela, President Mbeki’s policies focused more on net economic growth rather than redistribution. In 2007, government revenue exceeded expenditure for the first time since the 1950s. The current president, Cyril Ramaphosa, has rallied behind National Health Insurance (NHI) and strongly advocates for universal health. care coverage. He acknowledges that there are enough resources in the country, so health insurance and care should be available to all regardless of ability to pay. This is a very important step for South Africa and suggests that progress will continue with regard to these health disparities.

– Maia Cullen
Photo: Flickr

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Eradicating Femicide in South Africa

Femicide in South Africa
In September 2019, after days of protests, the South African government declared femicide in South Africa a national crisis. Femicide, simply put, is the intentional murder of a woman. However, the World Health Organization (WHO) elaborates on the definition and adds that the murder of a woman is intentional because she is a woman. It is different from male homicide because in many cases of femicide, the crime is “committed by partners or ex-partners and involves ongoing abuse in the home, threats or intimidation, sexual violence or situations where women have less power or fewer resources than their partner.”

The Facts

The Republic of South Africa is at the southern tip of Africa, and Namibia, Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho borders it. Femicide in South Africa is nothing new, dating back as early as colonialism in the 17th century. Female violence has continued since then, possibly due to the lack of severe consequences for the perpetrators. However, studies for femicide in South Africa did not begin until 1999.

According to South Africa’s Department of Police, someone murders a woman every three hours, which equates to about seven per day. In contrast, someone murders a man every 30 minutes, about 50 per day. Despite the lower murder rates for women, most female homicides are much more violent in nature than the male. Many of the female victims suffer assault, rape and burning before their perpetrators dump them. In comparison to other countries, this rate of femicide is almost five times higher than the world’s average. South Africa ranks fourth in the world for the highest rate of violence against women. Additionally, people reported 39,633 rapes and 6,253 sexual assaults in 2017 alone.

Activism Enabling Change

Femicide has gained a lot of media attention in recent years. Anene Booysen suffered brutal rape and murder in 2013. In 2017, an ex-boyfriend murdered Karabo Mokoena. Protests against femicide in South Africa broke out in September 2019 after the rape and murder of the University of Cape Town student, Uyinene Mrwetyana. The protests requested action from the South African government, including the death penalty for all perpetrators of femicide.

South African President Cyril Ramaphosa announced that the country was in a national crisis of violence against women after three days of protests. He detailed a plan of action to combat femicide and gender-based violence, including making the register of offenders public, reviewing cold cases and providing harsher penalties for perpetrators. President Ramaphosa also promised to implement policies in schools, workplaces and communities that would curb violence against females.

The Cavalry Steps In

Femicide in South Africa is also gaining attention internationally. The stories of Anene Booysen and Karabo Mokoena have made international headlines. Award-winning and South African-born actress Charlize Theron has used her platform to speak out against the violence against women in the country, and she has been doing so since 1999. She urged the leaders of South Africa to do more for women and told men not to be bystanders.

In an era of the internet and movements such as #MeToo, the ongoing femicide in South Africa is impossible to ignore. Thankfully, the South African government has taken the right steps. Not only did the President of South Africa publically acknowledge it as a national crisis but also vows to take action against it. It remains for one to see if the South African government keeps its promises, but it is clear that the women and media of South Africa will hold it accountable until they get the justice they deserve.

– Emily Young
Photo: Pixabay

Poverty in South Africa and Cyril Ramaphosa’s Solutions

Poverty in South Africa
Following the national election in May 2019, Cyril Ramaphosa, a member of the African National Congress (ANC), started his first full term as President of South Africa. Born in a township outside of Johannesburg, Ramaphosa fought in the South African liberation struggle and negotiated on behalf of the ANC to bring an end to the segregationist regime. He was a member of the international Mandela Reception Committee and held the microphone in 1990 as Nelson Mandela gave his first public speech after 27 years in prison. Ramaphosa initially assumed the presidency after former president Jacob Zuma resigned in February 2018 following a large corruption scandal.

In the general election, Ramaphosa’s party, the ANC, won 58 percent of the vote, granting him the presidency for the next five years. The ANC won with less than 60 percent of the electorate in the May election, which was the first time since South Africa emerged as a free democratic state in 1994. This suggests a significant loss of influence for the party, which has been in power since the fall of apartheid because of its association with Mandela and other freedom fighters.

During his campaign earlier in 2019, Ramaphosa made many promises to the South African people; he vowed to end government corruption and state-capture, improve education and health care, achieve economic stability and drastically reduce poverty in South Africa. Many believe that the future of the ANC, which has been steadily losing support in recent years, depends on Ramaphosa’s ability to deliver on these promises. Here are his plans below.

Unemployment

“Let us declare our shared determination that we shall end poverty in South Africa within a generation.” Ramaphosa made this declaration in his inauguration speech to a country where 40 percent of the population falls beneath the poverty line and unemployment has increased to 27.6 percent.

In June 2019, Ramaphosa vowed to create two million jobs over the next five years through the Expanded Public Works Programme (EPWP), the Youth Employment Service (YES) and the National Youth Service (NYSP). He also plans to work with private sector investors on special projects that will create 115,000 jobs in the coming years.

Crime

Ramaphosa recognizes the concerns of residents over crime and has promised to cut violent crime rates in half by 2029. To spearhead this effort, he plans to create a national campaign to increase enrollment in police academies, thereby increasing law enforcement in communities around the country. He also pledged to strengthen investigative and prosecutorial processes through improved training. Reducing violence would help relieve poverty in South Africa by ensuring the safety and mental well-being of struggling communities.

Gender-based violence and sexual assault have been widespread in South Africa in the past several years. To combat this issue, Ramaphosa wants to strengthen the capacity of law enforcement to support survivors and deal with these cases more responsibly.

Health Care

Sickness, disease and injury can exacerbate poverty and deteriorate the quality of life if not treated properly. Health care is one of the universal rights that the South African Constitution outlines, which states, “Everyone has the right to have access to health care services, including reproductive health care…” Ramaphosa has promised to improve existing health care and cover all South Africans under a new state health insurance plan. On August 8, 2019, the South African Department of Health published a new National Health Insurance Bill which will cover all residents, including services for refugees, inmates and certain foreigners. The bill will cover all necessary health care services (including reproductive care) free of charge to all South Africans. The country will implement it in a multi-phase approach over the next several years, beginning in September 2019. Ramaphosa plans to use tax increases to pay for part or all of the program. Additionally, the government will promote the employment of health care professionals in rural areas, which are disproportionately underserved in terms of health care quality and access due to the historical legacies of apartheid.

Education

The public education system in South Africa is notoriously poor. The World Economic Forum recently ranked the country 126th out of 138 in the 2016-17 Global Competitiveness Report. Ramaphosa plans to fix the country’s schools by implementing a nationwide reading campaign and improving teacher training. He also supports efforts to diversify curriculums by including topics like coding and data analytics in primary school classes. Long before his presidency, Ramaphosa established a charity for South African students, the Cyril Ramaphosa Education Trust (CRET), which supports gifted but disadvantaged students in their efforts to attend university.

Corruption

Political corruption has long been a problem in South Africa; government officials routinely siphon money away from South Africa’s many social welfare and public improvement programs to enrich themselves and the corporations they connect with. The party with the most officials accused of stealing public funds for personal use is the ANC, which has remained in power despite scandals. The corruption has even led to the assassination of whistleblowers who have accused ANC officials of pocketing public funds. Former President Jacob Zuma had to resign in 2018 after intense corruption allegations that he had stolen government money and granted profitable government contracts to preferred corporations and friends.

President Ramaphosa has acknowledged that his party is currently under great scrutiny due to its previous transgressions. In June 2019, he vowed to redistribute more than $979 million recovered from successfully prosecuted corruption scandals, directing the funds toward services and infrastructure in poor communities. He also made a public commitment to strengthen the reach and influence of government watchdog agencies like the National Prosecuting Authority (NPA), the Special Investigative Unit (SIU), the South African Revenue Service and State Security. Ramaphosa recently met with the national director of public prosecutions to create a plan to increase the capacity of the NPA to investigate public officials and seize assets of corruption proceedings.

–  Nicollet Laframboise
Photo: Flickr

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Poverty in South Africa: Progress Since Apartheid

Poverty in South Africa
Known today as the “rainbow nation,” South Africa has a fast-paced economy with a pluralistic and diverse culture and history. However, the ramifications of the apartheid regime still continue to be an impediment to social and economic development and alleviating poverty in South Africa due to its impacts on the social structure, security nets and family life.

Poverty Statistics

Due to the apartheid legacy, income inequality remains prevalent with 1% of the population owning nearly 70.9% of the nation’s wealth. The unemployment rate currently stands at nearly 28% due to the recessionary conditions in the country.

According to a report by the Children’s Institute (CI) at the University of Cape Town, 6 million children still continue to live below the food poverty line. Despite the efforts of the organizations like Child Support grant, the administration in South Africa struggles to deal with the implementation of care arrangements for these children especially those who live in more remote and rural communities.

Failed Economic Reforms

Since the collapse of apartheid in the country, the African National Congress (ANC) party has embarked on a variety of neo-liberal and market reforms to liberalize the trade and commerce of the economy to avoid a potential poverty trap. Yet, these policies exacerbated disparities and inequalities in the economy and cast a great degree of skepticism about mainstream economics and neo-liberal policies centered around deregulation and privatization. Unregulated market approaches to financial flows and capital were a breeding ground for corruption and bribery among top levels of state and private institutions in the country, particularly during the era of President Jacob Zuma.

Government Actions

However, along with the continued efforts from the Child Support Grant and similar outreach programs, a deeper collaboration between families and the state is being recommended as a solution to the problem. Under the policy, more than 12 million children benefit every month. Access to more information about relevant childcare arrangements and health care programs will also be effective in improving awareness among families.

Moreover, state income support is being recommended to decrease inequalities measured in Gini values from 0.69 to 0.6 and to decrease the number of people who live on a monthly income lower than $30 from 39% to zero. The implementation of the National Development Plan (NDP) is a government agenda that aims to address poverty in South Africa by allocating budgets and improving public services and infrastructure by 2030.

Chances for Growth

Under the administration of new President Cyril Ramaphosa, the country is implementing investments in more ambitious infrastructure projects. Expectations have determined that foreign investment from countries like China, Saudi Arabia and the United Arab Emirates could be worth a collective $100 billion.

Furthermore, education reform is vital to not only address poverty in South Africa but also to help townships progress from the apartheid-era Bantu education system, which was an aspect of the law that enforced racial segregation in schools. Yet, efforts to change the current situation are underway, with an increase in pre-school enrollment and the number of university graduates.

In 2011, the multidimensional poverty index emerged to better analyze poverty in South Africa and recommend sustainable solutions for remediating some of its associated issues. One can now assess a combination of social indicators like education, health care and quality of life. Fortunately, under this poverty index, there was a decline in poverty by more than 13% between the years 2001 and 2011. The sample could improve further by combining a series of other factors like financial, transport and other assets as well.

To conclude, even though South Africa continues to be a modern economically developing country grappling with problems from a complicated history, a strong foundation will yield good progress in the long run and help the country overcome its many economic and social challenges.

– Shivani Ekkanath

Photo: Flickr

Harambee: Fighting Youth Unemployment in South Africa

Youth Unemployment in South Africa Globally, 71 million youths were unemployed in 2017, according to a report by the International Labor Organization. Unemployment in South Africa is particularly high and has been so for decades, with 5.5 million young people currently searching for work. In response to high youth unemployment in South Africa, a social enterprise known as Harambee Youth Employment Accelerator was created to help connect young people seeking work with employers.

Youth Unemployment in South Africa

With 26.7 percent of the population unemployed, South Africa has one of the highest unemployment rates in the world. With 63 percent of South Africans being under the age of 35, South Africa has a large youth population. The unemployment rate for youths, defined as those aged 15 to 34, was estimated to be 38.2 percent in the first quarter of 2018. Each year, 1.1 million South African youths enter the labor market, but only 6 percent enter formal employment, and an additional 8 percent are informally employed. The remaining 86 percent are either continuing their education, looking for jobs or becoming discouraged by the system.

High youth unemployment in South Africa is caused by a variety of factors, including high public education drop-out rates, a lack of significant economic growth and the nation’s legacy of apartheid. With many of the poor still living in townships located far away from urban centers, finding work remains difficult. Even if they are qualified for certain positions, they may lack the ability to travel into the city, particularly in the face of inadequate public transportation.

Harambee Youth Employment Accelerator

Formed in 2011 in Johannesburg, Harambee has been providing services for the youth across the nation and has helped more than 50,000 young South Africans obtain their first job. In order to provide opportunities to youths outside of the city, Harambee hires recruiters who go to the townships and record contact information for young people who are searching for jobs. From there, some youths are given an invitation to come to a Harambee office to discuss their skills and interests. A trained job coach them helps them through the process of creating a CV and preparing for job interviews. Harambee even provides free interview clothes for those unable to access or afford them.

Another way of connecting with job-seeking youth and working to reduce youth unemployment in South Africa is through the application on the Harambee website. On this application, young South Africans indicate their skills and what kinds of work they are interested in, making it easier for Harambee to successfully match them with an employer.

Harambee has partnered with 450 employers, ranging from small businesses to large corporations. Many of these employers are looking to fill entry-level positions, providing opportunities for South African youths without any prior job experience to find gainful employment. When deciding on matches, Harambee considers the needs of the company, as well as the skills of the potential employee and their proximity to the job. Transportation costs must be considered, and if they are too high, workers may go into debt, in spite of being employed.

For those who have the potential to get hired for more rigorous jobs, Harambee provides vocational training for up to eight weeks to prepare applicants for employment. Since many of the youths Harambee works with come from poor backgrounds, they often lack the knowledge and skills needed to be successful in the workforce. Harambee does what it can to ensure the young people the organization is working with will be successful in their employment.

Success Stories

One South African youth, 23-year-old Thabo Ngwato, was unemployed and had been having difficulty filling out job applications until his friend recommended Harambee to him. Through Harambee, Ngwato found work at a call center in Johannesburg, allowing him to support his mother and nephew as well as to purchase his first car. Ngwato told Reuters that, thanks to Harambee, “I know how to network, look for employment. The skills are ones I can take anywhere.” Helping with the application process and teaching basic jobs skill is essential in reducing youth unemployment in South Africa.

Similarly, 29-year-old Oratile Phekoayane was hired as a Webhelp worker after finding Harambee. The services Harambee provided helped her develop interpersonal skills in order to have more confidence in interviews. According to Reuters, Phekoayane stated, “I see myself as a business partner here. I’m looking to grow, maybe join the executive side.” Thanks to Harambee, she was able to gain employment, develop her skills and become successful with the potential for mobility.

Currently, Harambee has a goal of helping at least 10,000 young South Africans find employment each year. By 2022, they want to have matched 500,000 young people with employers, which will require a significant increase in the number of youths they help become employed each year.

Luckily, Harambee is not alone in addressing youth unemployment in South Africa. Cyril Ramaphosa, South Africa’s president since February 2018, has also been making youth unemployment a priority. Ramaphosa launched the Youth Employment Services (YES) initiative in 2018 and has been working to convince companies to reinvest 1.5 percent of their profits into providing paid work experience to young South Africans. By encouraging companies to reinvest in the country’s youth, Ramaphosa is acknowledging the important role that young people will play in the future of South Africa.

Harambee’s success and continuous growth indicate that the goal of ending youth unemployment may be attainable. Harambee has already had a significant impact on reducing youth unemployment in South Africa. Furthermore, it has provided a model for other organizations around the world to use to reduce youth unemployment.

– Sara Olk
Photo: Flickr