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Youth Unemployment

Youth Unemployment. 12TH NATIONAL BUSINESS CONFERENCE Venue: Francistown Date: 14 th to 17 th October 2012 Theme: “Interrogating Implementation: Why is it a Challenge?” Topic: “ Youth Unemployment”. introduction.

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Youth Unemployment

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  1. Youth Unemployment 12TH NATIONAL BUSINESS CONFERENCE Venue: Francistown Date:14thto 17th October 2012 Theme: “Interrogating Implementation: Why is it a Challenge?” Topic: “Youth Unemployment” 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  2. introduction • As per the 2010-2016 Revised National Youth Policy(NYP), a youth is a person aged between 12 and 35. • Over the past few years there has been a rapid increase in youth unemployment and a decline in youth entrepreneurship globally. • Youth unemployment rose from 11.8 to 12.7 per cent between 2008 and 2009, reversing the pre-crisis trend of declining youth unemployment rates since 2002. • Botswana’s youth unemployment is second highest in middle income countries. • Youth unemployment is higher than national unemployment which is currently at 17%. 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  3. Introduction Cont… 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  4. Introduction Cont… 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  5. Introduction Cont… • The root cause of this level of unemployment is a failure to create enough jobs in the economy. • The largest employer is government. • In recent years formal sector employment growth has slowed, in line with slower economic growth, and over the past decade (1997-2009) has averaged only 2.7% a year. • Youth unemployment exceeds national unemployment. • Though youth organisations, UN agencies and, though to a limited extent, the private sector, have developed strategies to combat youth unemployment and promote youth entrepreneurship, the problems continue to bedevil our economy. • Why is implementation a challenge? 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  6. Factors Leading to Youth Unemployment & Poor Youth Entrepreneurship • An Inhibitive/Unsupportive Legal and Policy Framework • The law that requires that a person be aged twenty one (21) in order to be eligible for land ownership delays the implementation of youth economic empowerment projects. • Arbitrary application of waiver breeds corruption and economic crime. • The law that one becomes a major at the age of twenty one delays the implementation of youth economic empowerment projects. • Loss of contracts; delay in business commencement; Loss of funding opportunities. • Youth Employment subsidy for youth training and employment • Reduction of requisite years of work experience. 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  7. Factors Leading to Youth Unemployment & Poor Youth Entrepreneurship cont.. • Lack of Youth Friendly Micro-Credit and Savings/Investment schemes • NYDF to have micro-credit and savings/investment component. • Government can create incentives (e.g. tax rebates) and/or partnerships with private financial institutions for affordable youth enterprises financing. • Solo efforts by the private sector, with no policy and legislative framework ineffective. 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  8. Factors Leading to Youth Unemployment & Poor Youth Entrepreneurship cont.. • Ineffective Internship, Mentorship and Job Shadowing Programmes • NYDF to have micro-credit and savings/investment component. • Internship programme is not supported by a mentorship and job shadowing programme. • Interns emerge with very few skills and competencies, let alone conative abilities. • Some employers use interns as free labour, and because there is no legislative and/or policy imperative to that effect, devote no time to systematic training, mentorship and job shadowing. • Interns are mainly placed in the public sector. • Skills transfer and productive use are not happening where they are needed the most.-the private sector. • Government to enact a law or at least a policy that the internship period is counted as working experience for purposes of employment. 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  9. Factors Leading to Youth Unemployment & Poor Youth Entrepreneurship cont.. • Few Youth Preferential Empowerment Schemes • Need for more broad based preferential schemes for youth in business. • An example is laws and/ or policies that provide for youth quotas in government tenders and procurement. • Aconsolidated marketing brand for youth businesses should be developed. • Brand could be similar to the citizen marketing brand, ‘Buy Botswana’. • There could also be a ‘Buy for Youth’ brand. 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  10. Factors Leading to Youth Unemployment & Poor Youth Entrepreneurship cont.. • Unsustainable Employment Schemes • Government has often spent funds on short term under-employment, e.g. Ipelegeng with very little impact on the economy. • Such projects do not contribute to skill development and job security. • Youth’s benefit on such projects currently stands at 22%(of the 141,799 beneficiaries of Ipelegeng only 30,897 are youth). 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  11. Factors Leading to Youth Unemployment & Poor Youth Entrepreneurship cont.. • Unsustainable National Youth Development Fund (NYDF) • The NYDF to be made a real fund financed through such means as a youth development levy and tax rebates. • NYDF to be administered by the BNYC, through private sector fund administrators. • NYDF to be divided into such areas as Youth in Information & Communication Technology, Youth in Enterprise, Youth in Cooperatives, Youth in Agriculture (to absorb the Young Farmers Fund currently under CEDA), Youth in Tourism, e.t.c. • Job Centre and skills data base. • National and International Volunteerism Scheme. 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  12. Factors Leading to Youth Unemployment & Poor Youth Entrepreneurship cont.. • Other Factors • Irrelevant educational curricula. • Limited resources and infrastructure especially in rural areas. • lack of economic diversification. • The privatisation policy. 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  13. Potential Interventions Source: World Bank Youth Employment Initiative, Econsult 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  14. ISSUES FOR DISCUSSIONS • Is there a fundamental unemployment problem in Botswana which is being reflected by youth unemployment? • To what extent have youth schemes, policies been successful? • What role should private sector play in order to achieve positive results that would add value to economic growth? • Is there a generic holistic approach to dealing with youth unemployment, is the issue failing enterprises or education or both? • Are there any innovative ways of dealing with youth unemployment and failure of youth enterprises? 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

  15. THANK YOU!! • For more information, contact: • Mosireletsi Legal Services (PTY) LTD • P . O. Box 21066, Bontleng • Gaborone International Commerce Park, Plot 158, Unit 6 • Tel: 3191449 Fax: 3907689 Mobile: 71410352 • E-mail: anmorima@mosireletsilegal.co.bw/info@mosireletsilegal.co.bw • Website: www.mosireletsilegal.co.bw 12TH NATIONAL BUSINESS CONFERENCE “Youth Unemployment” Presented by: Ndulamo Anthony Morima, Mosireletsi Legal Services (PTY) LTD

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