The Unemployment Insurance Fund (UIF) says it has, through investments by the Public Investment Corporation (PIC), the UIF Labour Activation Programme (LAP) and the Industrial Development Corporation (IDC), been creating jobs and preserving existing ones.

In March 2017, the UIF and the IDC signed the Facility and Subscription Agreement to bring into effect a substantial investment of R5-billion. The IDC has since approved 41 qualifying transactions totalling R2.30-billion, of which R130-million was for companies in distress and for job preservation purposes.

Through this, 8 007 jobs were created and saved by December 31, 2021.

"Through the Covid-19 Temporary Employer/Employee Relief Scheme (TERS), we have been able to save jobs and bring relief to more than five-million workers. This was made possible by the investments we have with the PIC. Drawing cash from these investments to fund Covid-19 TERS has come at a cost, as our investment declined by 24% from R151-billion to R115-billion by the end of March 2021," the UIF says.

Additionally, support for small and medium-sized enterprises (SMEs) is very critical, as this is where most jobs are created. Thus far, 1 171 jobs were created from transactions concluded with SMEs. Companies with women ownership account for eight transactions that created 835 jobs and saved 713 jobs.

Further, job creation, skills development and supporting entrepreneurship for the unemployed, especially the youth, received a boost when Employment and Labour Minister Thulas Nxesi launched an employment initiative worth R551-million at the University of KwaZulu-Natal.

"The employment initiative is conducted in partnership with the Fuze Institute for Humanitarian Praxis which trained 19 921 participants. The Minister emphasised the importance of working with the private sector and stakeholders in reducing and eventually eliminating unemployment because partnerships are key to creating jobs," the UIF says.

"Nxesi said all efforts to create employment in South Africa should be strongly welcomed considering the high levels of unemployment in the country. Therefore, all UIF employment projects must be linked to employment creation because we do not want learners to idle at home upon completion of the employment initiatives," the UIF states.

The 19 921 participants comprising UIF contributors who lost their jobs and unemployed youth who underwent employment initiatives in various skills disciplines, including 14 771 beneficiaries as chief food handlers, 5 000 beneficiaries in enterprise development for mixed farming and 150 beneficiaries as fibre-optic technicians.

The 14 771 beneficiaries have been employed by the Department of Education in KwaZulu-Natal after completing their employment initiatives, the UIF adds.

The Department of Economic Development, Tourism and Environmental Affairs in KwaZulu-Natal has pledged to support the 5 000 learners by buying their farming produce, while Link Africa has committed to employing the 150 beneficiaries as fibre-optic technicians upon completion of the employment initiative.

Additionally, the UIF recognises that the transformation of the economy is fundamental to the success of South Africa. Through the IDC UIF facility, 22 black-owned industrial businesses, with ownership greater than 50% or exercise of influence in decision-making, have been supported to the value of more than R1-billion and these deals have created 1 859 jobs.

Through the facility, 17 startups were funded to the value of R1.04-billion, creating 854 jobs.

Further, the UIF remains in a sound financial position. Its assets have increased from R115-billion to R124-billion by December 31, 2021, it says.

"This should enable us to pay future claims and cover our administrative costs," the UIF says.

In the year ending March 31, 2021, the UIF paid R17.1-billion from 918 916 approved claims. Currently, we continue paying Covic-19 TERS benefits, which we have exceeded by R26-billion from the R40-billion initially set aside when the relief scheme was launched in March 2020.

The UIF also set aside R5.8-billion to pay for re-assessment of normal UIF benefit claims submitted between January 19, 2017, and December 31, 2018.

"This step was taken because the Fund delayed implementing the 2016 Amendment Act owing to operational challenges, which resulted in short payments of many beneficiaries who submitted claims during this period.

"The fund will continue all efforts within available resources to save and create jobs," the UIF states.