The prevailing economic and labour market conditions, particularly since the global coronavirus pandemic, demand innovative solutions to tackle the pressing social challenges that inevitably accompany high unemployment. In this “Year of Charlotte Maxeke: Growing Youth Employment for an Inclusive and Transformed Society,” and amid the many rapid changes SA faces, there is an ever-greater urgency for effective, informed and participatory action to build back better.
In the decade since the Jobs Fund was established, its grant-making work has aimed to uncover and catalyse the most competitive job creation ideas and partnerships in the country. Our Challenge Fund approach has led to building partnerships with those who share our vision for a more inclusive economy, together with a tireless focus on delivery and prudent use of public funds.
Through crowding in private, public and nonstate-sector funding we have tripled the value of funds available for job creation; leveraged technical expertise to augment government capacity; broadened our reach to the unemployed through established intermediary networks and channels and supported the building of institutional capability, thereby strengthening job creation ecosystems that stimulate demand and future job growth.
More specifically, this approach has positively affected job creation and has resulted in an independently estimated return to fiscus benefit of R15bn; a competitively low grant cost per job of R20,000 and more than R11bn in partner match-funding contributions. Our intermediary networks have facilitated deeper reach resulting in support to more than 39,000 majority black-owned SMMEs and more than 16,000 black smallholder farmers; the creation of over 280,000 jobs, 64% of which have been filled by youth; the facilitation of beneficiary participation in established value-chains and the forging of strategic partnerships across sectors and regions.
Value for money and risk sharing are key cornerstones of our approach, and the fund has had success in piloting various job creation models, which are ready to be scaled and replicated. With a strong emphasis on performance tracking and evaluation, the Jobs Fund has, over the past decade, accumulated a formidable knowledge base. The collective benefit of this growing shared knowledge base is strengthened by the fact that our project partners also commission their own evaluations, leading to further improvements in the design and implementation of projects, resulting in greater impact over time.
We don’t have all the answers on how to solve our unemployment crisis; what we do know is that effective solutions will be realised through partnership and collaboration, innovation and risk sharing. New business models and evolving worker preferences are also contributing to the new landscape. In all this change lies opportunity. In this, the Jobs Fund can offer a model that works.
Our collective dream of equal opportunity for all South Africans must continue to be the driving force that unites all our efforts to “build back better”. Those of us who are in positions of privilege and influence must cast our vision beyond our own self-interest and create opportunities to give back.
• Allie-Edries is deputy director-general for employment facilitation at the Treasury and head of the R9bn Jobs Fund.
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