Page 14 - IDC

14 CITY PRESS, 28 FEBRUARY, 2016

Herbie Hancock: I’ve had a life that has taken many interesting paths. I’ve learnt a lot

from mentors who were instrumental in shaping me, and I want to share what I’ve learnt

AVANTIKA SEETH OPINION
avantika.seeth@citypress.co.za

or Masasa Makhetha, who was born and raised
in Ficksburg, a small town nestled at the foot of Quandary about
the Imperani Mountain in the Free State, life was
hard.
In 1999, his matric year, he moved to the
FMpumalanga town of Secunda to live jobs for youth
with his sister. A car accident had left his
policeman father unable to work and his
mother was a domestic worker. The
family was left to survive on their A JORGE MAIA
government pensions. news@citypress.co.za
Despite this, Makhetha managed PROJECT IN
to complete his BCom degree at The creation of employment opportunities, swiftly and
the University of Pretoria in 2002. PARTNERSHIP sustainably, remains the fundamental intervention needed
He says that times were tough, to integrate South Africa’s unemployed youth into the
and he managed to fund his formal economy.
studies through the National WITH THE Subdued rates of economic growth since the 2008/09
Student Financial Aid Scheme as recession and the relatively weak performances of key
well as a study loan that his sister labour-intensive segments of the economy have further
took out on his behalf. IDC compromised its labour-absorption capacity. This is not
But his slog paid off and today simply a function of the economic cycle, but is also
Makhetha (34) is the proud owner of reflective of distinct and deep structural problems.
Thasasa (Pty) Ltd, a company based in South Africa’s youth has been most affected and the
Mpumalanga servicing the mining industry challenge has been intensifying as new entrants join the
by providing structural steel products and other labour force year after year. An expanding youth
services. population relative to the overall population, combined
Before starting his business, Makhetha completed his with a decline in the youth’s share of total employment,
articles at auditing firm KPMG and went on to work for resulted in higher youth unemployment rates over time.
mining company Delmas Coal, a subsidiary of Kuyasa Mining. While relatively low levels of education among the
It was here that he was exposed to the mining sector and youth tend to reduce their employability, the persistently
gained the skills and know-how to start his business. KICK-START The IDC supports businesses and entrepreneurs that show initiative and promise PHOTO: LEON SADIKI high youth unemployment rate also reflects the mismatch
He attributes a lot of his success and business acumen to between the skills of jobseekers and those required by
Ayanda Bam, director and owner of Kuyasa mining. the economy.
In 2011, he resigned and registered Thasasa after realising In an economy that is increasingly requiring higher
the availability of opportunities for black men in the mining Young and levels of quality education and specialised skills,
sector. The company started trading in 2013. unemployment rates are noticeably higher for youth than
Makhetha’s company specialises in the manufacturing and for adults, across all education levels. Furthermore,
installation of ventilation structures for underground systems employability rises with the level of education, but the
in the mines. success rates are substantially higher for those who are
He says the Industrial Development Corporation (IDC) has 35 years of age and older.
The Industrial Development Corporation’s research
played a pivotal role in the success of Thasasa, which employs team has analysed youth employment trends across nine
Mining, which has showed interest, and other small mining ambitious broad sectors of the South African economy to ascertain
90 people.
“When we started, it was 30 [employees] and, as we got
more jobs, we increased our employees to 90. After we
recent developments in their labour absorption and
received funding from the IDC, a couple of other clients
youth participation in their overall employment.
became interested in us. I’m already working with Glencore
We also aimed to identify the potential for integrating
underground mining and I am at the final stage with Sasol
sectors in the years ahead.
The sectors were ranked according to the expected
houses,” he says. unemployed youth within the workforces of these broad
Makhetha’s company name has an interesting history of its potential for youth employment creation over
“When I started with the company, I was with a lady called Life was hard, but Masasa Makhetha made the to hold the highest potential to create jobs
own. the next few years. The sectors considered
Thandi, and so Thasasa is a combination of her name and my for youth are services related, with
name, although I am no longer with her,” he laughs. most of opportunities. Never give up, he advises, business services expected to achieve
Makhetha’s journey to being a business owner hasn’t been the most gains by a large margin. This
without its problems though. and always make time to consult your mentors would include opportunities created
“As a young entrepreneur, you face the challenges of through the establishment of youth-
understanding the market and how to break into a white- owned enterprises across various types
dominated industry. of business services.
“Also to us blacks, as a young person being your employer, “Because of their contribution, I’d also like to thank the mines, so I’ve got contracts with Glencore and AngloGold, and Although adversely affected by the
and you are older than him, is one challenge which has been IDC. They funded me with R6.2 million, part of which was for other small mines. It hasn’t been funded by the IDC yet. It unfavourable economic environment in the
difficult to navigate. Your behaviour in the work environment equipment and machinery, and half was for salaries, materials currently employs 14 people, and I have already notified the short term, the trade (retail and
also counts, wherever you go, there are people looking up to and other running costs. The good thing about them is, IDC about approaching them for funding. JORGE MAIA wholesale), catering and
you,” he says. should I be successful with securing additional contracts, the His advice to other young entrepreneurs is simple. accommodation sector was also
Makhetha says the process of applying for funding from the IDC is willing to buy me more equipment.” “If you want to open a business, you need to be motivated expected to create a substantial number of job
IDC wasn’t arduous. Makhetha has invested plenty of time and energy into first of all. You need to be disciplined and from time to time opportunities for the youth in the years ahead.
“It took me three months to get the funding. I knew about growing his company, and has plans to expand. seek advice from people who have made it to show you the The sectors that show moderate potential for job
the IDC for a long time and I also got referred to them by “I’m looking at diversifying the business, looking for more right direction. Never give up because you will experience creation for the youth are government and social
other guys who had dealt with the IDC. opportunities outside the mining industry,” he pauses before tough times. Believe in yourself. If I managed to make it, you services, building construction and agriculture, forestry
“I found a consultant at the IDC who helped me with my explaining about another business venture. can make it as well.” and fishing. These sectors have the capacity to employ
application. He was very happy to assist and the application “By the way, I have another company; an engineering This project is reported by City Press young unskilled and semiskilled workers.
went through successfully. company registered in 2014. We manufacture products for the and sponsored by the IDC The provision of services to communities by
municipalities may also bring about employment
opportunities in areas where the unemployed youth are
residing, limiting the need for economic migration.
From teen mum to successful entrepreneur intensive sectors of the economy. Although afflicted by
The agricultural sector is still one of the most labour-
the worst drought on record, this sector is uniquely
positioned to absorb unskilled young workers mostly in
AVANTIKA SEETH are female. There was plenty of discrimination. I even get it rural areas, while also increasing food security and rural
income levels.
The subsectors that are envisaged to create job
avantika.seeth@citypress.co.za from my own employees sometimes. Now that I’m married, opportunities include the high-valued agricultural
they prefer to speak to my husband when they want increases,
When Ntombizanele Matome fell pregnant in Grade 11, she R1.7m not realising I’m the one who is running the company,” she subsectors such as fruits and vegetables. However, the
made a promise to her mother that she would still make laughs. employment opportunities in agriculture could be of a
something of herself. Matome has learnt how to navigate the tough mining more seasonal nature.
After the Rustenburg-born woman gave birth to her son in business. Our employment projections indicate that the potential
July of her matric year, she found a part-time job at a doctor’s Ntombizanele Matome needed funding for a contract “It has its ups and downs. You must be prepared. When held by manufacturing sectors is generally more limited,
practice as a receptionist, which paid R750 a month. and approached the IDC, which approved a there were those platinum strikes, my company went under. It relative to service- and agriculture-related activities, due
Cleaning the surgery and making appointments for patients R1.7 million loan. She used the loan for equipment is out of your control. You get paid for the job you have done. I to their higher capital-intensity, operational and other
allowed her to provide for her baby. She kept going to school and working capital. The low interest rates offered decided to diversify so that when the strikes happen next time, competitiveness challenges.
and, with her family’s support, matriculated with a Bachelor’s by the IDC are really helpful, she says I am able to provide other services. I am an entrepreneur so I However, opportunities for youth employment do exist
pass and enrolled at university the following year. have to think out of the box.” in various industries.
But after two years at Rand Afrikaans University (now the Matome needed funding for a contract and approached the Global experience has also shown that increasing the
University of Johannesburg), she dropped out to start a civil IDC, which approved a R1.7 million loan. She used the loan for skills levels of the youth and/or assisting them to obtain,
construction company with her sister when she was just 21. environment, but he instilled in us a sense of pride as an equipment and working capital. The low interest rates offered or possibly even providing, initial employment experience
After two years of battling to secure contracts, she looked for African in the sense that you can do anything. by the IDC are really helpful, she says. are a means towards improving their employability.
a job and landed one at Sasol, where she worked in the “He taught us how to play chess, which made us see that “The IDC has workshops where you get assistance and A range of policies, strategies and mechanisms are in
procurement department for another two years. She resigned in there’s always another way to get around things ... We knew mentorship, so they are really great at giving advice. After I place in South Africa to support skills development,
2004, but during her time there, met her husband, a chemical that the sky was the limit. He really inspired us.” submitted my business plan and they did a due diligence, it was among other important factors, so as to enhance the
engineer. Matome’s company specialises in offering support and about three months before I received my funding. It depends employability of the youth. What is required in many
Today Matome (34) is the proud business owner of Basadi logistical services to the mining industry, especially the platinum on the complexity of your project though, because I have instances is effective implementation.
Underground Contractors (Pty) Ltd, and the boss of 13 mines in and around Rustenburg. Her company was established friends who are still waiting for their funding to come through.” However, addressing youth unemployment in the
employees. in 2008 as a close corporation, but in 2010 she converted it to Matome’s plans include growing her human capital and absence of an overarching unemployment strategy will
As a young black woman growing up in apartheid South a proprietorship. The name Basadi, meaning women, has expanding the services offered by her company. She believes in not achieve the desired effect, as a number of
Africa, Matome speaks of her journey to becoming a business personal significance for Matome. She believes there are not the potential of young black people. international studies have indicated that youth
owner and how she managed to break the mould. enough female entrepreneurs and that it’s difficult, particularly “We must start to create sustainable businesses. My black unemployment is highly correlated to total
“I am an avid reader, so I told myself that circumstances for black women, to make it in mining. brothers and sisters, that is my dream. If you can build unemployment.
were not going to control where I’m going in life. My role “I faced many challenges. There was lack of funding and sustainable businesses that will become empires, it will be Maia is head of research
model is my late father. We didn’t grow up in a rich opportunities. You go to those mines, you are black and you amazing. It’s inherent in us. We can do it.” and information at the IDC

Employing SA’s youth Sectors with higher youth employment ratios include:

19.8 million 6.4 88%
6.4 millionmillion

of SA’s 54 million youths of employable of youths had an
age were in jobs in Q4
people are between = 1 million 2015 education
the ages of 15 and 34* equivalent to
Grade 12 or
below in Q3 2015 Agriculture and Wholesale and Construction Electricity, gas Finance, real estate
food processing retail trade and water and business services

The youth Trade and
unemployment rate is accommodation The sectors with the highest
2.25 sectors employed In agriculture and In the construction sector, the potential to create jobs for
25%
the youth are services
in Q3 2015 of those
times higher than of all youths with food processing, 46% Catering and youth’s share of unemployment related, with youth-owned
enterprises offering great
dropped from 52.5% in 2008
*Numbers based on 2015 figures the adult rate jobs in Q3 2015 employed are youth Accommodation to 46% in Q3 2015 opportunities
THEUNS KRUGER, Graphics24