The National Employers’ Association of South Africa (Neasa) has partnered with a specialist service provider to create entrepreneurship opportunities for the unemployed youth in South Africa in the form of learnerships.
The initiative is expected to benefit employers and the unemployed youth, as well as offer tax-paying businesses the opportunity to make a meaningful social impact in their local community.
The initiative will enable qualifying unemployed people between the ages of 18 and 28 to become self-sufficient by starting their own businesses. Companies can fund this initiative by using their available tax rebates.
The management of all aspects of the learnerships and the financial compliance administration will be handled by a skilled and experienced team of the service provider, Neasa said in an October 6 statement.
“South Africa’s official unemployment rate currently stands at 34.4%, with the expanded unemployment rate at approximately 44%. The unemployment rate of the youth, which includes people between 18 and 34 years old, is 65%. This poses severe socioeconomic challenges that are already resulting in political instability,” said Neasa CE Gerhard Papenfus.
He added that government’s solution to the unemployment crisis, namely the paying of grants, was unsustainable.
“The youth entrepreneurship initiative is a sustainable and tax-beneficial solution and will ensure the appropriate application of taxes. These learnerships will empower unemployed individuals to earn a monthly stipend and to receive seed capital for their ventures,” he said.