While recession fears may be looming in the minds of some, new data from the Bureau of Labor Statistics shows that the economy and job market may actually be strengthening. 



The quits rate—or the percentage of all employees who quit during a given month—rose to 2.4% in July, according to the BLS’s Jobs Openings and Labor Turnover report, released Tuesday. That translates to 3.6 million people who voluntarily left their jobs in July.



This is the highest the quits rate has been since April 2001, just five months after the Labor Department began tracking it. According to Nick Bunker, an economist at the Indeed Hiring Lab, the quits rate tends to be a reflection of the state of the economy. 



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“The level of the quits rate really is a sign of how strong the labor market is,” he says. “If you look at the quits rate over time, it really drops quite a bit when the labor market gets weak. During the recession it was quite low, and now it’s picked up.”



The monthly jobs report, released last week, revealed that the economy gained 130,000 jobs in August, which is 20,000 less than expected, and just a few weeks earlier, the BLS issued a correction stating that it had overestimated by 501,000 how many jobs had been added to the market in 2018 and the first quarter of 2019. Yet despite all that, employees still seem to have confidence in the job market.Today In: Leadership



The quits level, according to the BLS, increased in the private sector by 127,000 for July but was little changed in government. Healthcare and social assistance saw an uptick in departures to the tune of 54,000 workers, while the federal government saw a rise of 3,000.



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The July quits rate in construction was 2.4%, while the number in trade, professional and business services, and leisure and hospitality were 2.6%, 3.1% and 4.8%, respectively. Bunker of Indeed says that the industries that tend to see the highest rate of departuresare those where pay is relatively low, such as leisure and hospitality. An unknown is whether employees are quitting these jobs to go to a new industry or whether they’re leaving for another job in the same industry. Either could be the case, says Bunker.



In a recently published article on the industries seeing the most worker departures, Bunker attributes the uptick to two factors—the strong labor market and faster wage growth in the industries concerned: “A stronger labor market means employers must fill more openings from the ranks of the already employed, who have to quit their jobs, instead of hiring jobless workers. Similarly, faster wage growth in an industry signals workers that opportunities abound and they might get higher pay by taking a new job.”



Even so, recession fears still dominate headlines. According to Bunker, the data shows that when a recession hits, employers pull back on hiring and workers don’t have the opportunity to find new jobs. Thus, workers feel less confident and are less likely to quit. 



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“As the labor market gets stronger, there’s more opportunities for workers who already have jobs. So they quit to go to new jobs or they quit in the hopes of getting new jobs again,” Bunker says. He also notes that recession fears may have little to do with the job market, instead stemming from what is happening in the financial markets, international relations or Washington, D.C.



So what does the BLS report say about the job market? “Taking this report as a whole, it’s indicating that the labor market is still quite strong, but then we lost momentum,” Bunker says. While workers are quitting their jobs, he says that employers are pulling back on the pace at which they’re adding jobs. “While things are quite good right now and workers are taking advantage of that,” he notes, “those opportunities moving forward might be fewer and fewer if the trend keeps up.”



-Samantha Todd; Forbes

gettyimages-74579974-170667a

Why The High Number Of Employees Quitting Reveals A Strong Job Market

At the end of the third quarter last year, South Africa recorded a high unemployment rate of 27.5%. Townships and informal settlements are at the helm of this problem where the youth lack resources to even apply for jobs.



<hr class="wp-block-separator"/>



A young, unemployed man crosses a busy street on 12th Avenue.



Dragging a greasy trolley filled with trash, he looks at us
blankly as he continues to lug his garbage to the nearest junkyard. 



It is a regular sight and a regular weekday on the streets
of Alexandra, eight kilometers from Africa’s richest square mile, Sandton, in
South Africa.&nbsp; 



Sixteen-seater minibus-taxis dash from corner to corner,
packing their vehicles with enough passengers before making their way out of
the township. 



It is 10.30AM on this sunny Wednesday morning in December. 



The street corners are adorned with colorful tuckshops; they
stand out against the backdrop of the grey homes around them. 



<div class="wp-block-image"><figure class="aligncenter"><img decoding="async" loading="lazy" width="925" height="595" src="https://www.forbesafrica.com/wp-content/uploads/2019/02/Unemployed1.png" alt="" class="wp-image-39175" srcset="https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed1.png 925w, https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed1-300x193.png 300w, https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed1-600x386.png 600w, https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed1-768x494.png 768w" sizes="(max-width: 925px) 100vw, 925px" /><figcaption>An Alexandra resident collects trash in order to make a living in the over-populated community. Picture: Gypseenia Lion</figcaption></figure></div>



One of the spaza shops is bright blue with light textures of
yellow paint; a man sits behind a mesh by the sales counter. It is almost
impossible to see his face. 



He offers a young man a cigarette via a peep hole through
the mesh. 



Three men gather to smoke the same cigarette before making
their way to the multi-purpose community center on the other side of the road. 



Each carrying a sling bag and an A4 envelope, they disappear
into a building located at the end of a twirling staircase. Young and old
ceaselessly walk in and out.



The yard is filled with a number of service centers: the
local clinic, revenue service offices, the post office, multiple internet shops
and the Youth Advisory Centre (YAC). 



At the end of the hallway, Themba Mafuya sits collecting
dozens of résumés from the eager youth who are desperately in search of
employment.



He gathers the pile of documents and hands it over to his assistant. 



<blockquote class="wp-block-quote">“People are hungry for jobs,” he says as he looks at the unending stream of visitors walking in and out of the center. </blockquote>



Mafuya’s institution creates a database of unemployed youth
within the community with the sole purpose of&nbsp;
collaborating with companies that are looking to hire. 



By working closely with government, YAC reports to the City
of Johannesburg on the state of unemployment in the community. 



Dressed in casual wear, the 29-year-old has a friendly and
positive approach when he advises potential employees. 



“Go and correct the mistakes on your résumé that I explained
to you. Make sure your documents are certified and bring it to me as soon as
possible. Don’t worry, they will hire you,” he tells a young lady.



With Gauteng province being the economic powerhouse of South
Africa, contributing 35% to the country’s GDP, according to recent figures
released by Stats SA, unemployment remains an area of concern – 29.6% of people
live in the province without jobs. 



But the province is not among the lowest performing in the
country. With an unemployment rate of 36.6%, the Free State has the highest
provincial unemployment rate according to StatsSA, in 2018. 



Limpopo, with a prominent rural population, surprisingly,
has an unemployment rate of 18.9%, making it the lowest in the country. 



Townships in the surrounding areas of Gauteng are still
faced with an influx of challenges relating to unemployment. 



Adding to the lack of jobs, social issues play a big part. 



“We need to start doing follow-ups. Ask how many youth have
been employed? Who are not employed? Why are they not employed? Maybe they do
not have a correct résumé and we need to figure out why the employees do not
choose them,” says Mafuya. 



Just a few streets away is a compound adjacent to a block of
fading pink apartments. 



The yard is divided by a muddy passage with small dwellings
on either side.



A smell lingers far beyond the cracks of the cement block as
two buckets get noisly filled with hot water to clean chicken. 



<figure class="wp-block-image"><img decoding="async" loading="lazy" width="926" height="613" src="https://www.forbesafrica.com/wp-content/uploads/2019/02/Unemployed4.png" alt="" class="wp-image-39176" srcset="https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed4.png 926w, https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed4-300x199.png 300w, https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed4-600x397.png 600w, https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed4-768x508.png 768w" sizes="(max-width: 926px) 100vw, 926px" /><figcaption>A scene depicting a busy street corner on a late Wednesday morning in Alexandra. Popularly known as Alex, the township has one of the most highest concentrated unemployment rates in Gauteng. Picture: Gypseenia Lion </figcaption></figure>



Alfredah Phuloane introduces herself after she wipes the
chicken remnants off her hands using her multi-colored t-shirt.



With Phuloane is her uncle Velile Ndlovu who is her business
partner.



“As long as I have chicken, they are going. If I have 55,
all of them will be bought. I’ve already sold 25 for the day and we have just
started,” she says.



A helper, who didn’t want to be named, gushes: “I love my
job and I am proud of it.”



She too, like the 27.5% of the South African population who
are unemployed, will celebrate any job that will help them put food on the
table.&nbsp; 



In 2018, StatsSA announced an increase in the unemployment
rate at the end of the third quarter. 



According to the Quarterly Labour Force Survey, there are
16.4 million employed people and 6.2 million unemployed people between the ages
of 15 and 64 years in South Africa.



The latest figures record that the number of unemployed
people in South Africa grew by 127,000 from the 6.08 million in the previous
quarter. 



StatsSA Statistician-General, Risenga Maluleke, says
unemployment, according to the statistics collected, is calculated using the
4&#215;4 rule. 



These are job-seekers in search of employment four days a
week in a four-week period. 



Phuloane, who has been unemployed for three years, took the
iniatitive to start the business when she realized there was a demand for
freshly-slaughtered chicken in her community.&nbsp;




“At the time, when we were slaughtering the chicken for our
own consumption, some people were coming in and asking if we were selling them.
That is when we realized people needed chicken,”&nbsp; Ndlovu laughs. 



Ndlovu leaves the compound at 4.30AM to stand in a long
queue in Linbro Park where he buys the live chickens. 



On his return, at around 7AM, he places the fowl in a
makeshift coop.



With the helper, who earns a sum of money for her
assistance, the trio spend the day processing and packaging chicken for
customers. 



Three years of unemployment led Phuloane, a former domestic
worker, to entrepreneurship.



“If my business does succeed, I want to hire those who do
not have jobs. I want to make their lives simple. They can start their own
businesses then, because you can’t wait for work. There are no jobs now and it
will be difficult,” Phuloane says.



Her uncle on the other hand, who worked as a recycler in a
recycling company, decided to quit his job in late 2018. 



When Ndlovu rejected a job transfer to South Africa’s
capital Pretoria, it suddenly made him one of the thousands without employment.




The formal sector recorded job losses of 65,000 people, and
agriculture lost 1,000 employees in the third quarter of last year.



Without the promise of an increase, had he accepted the job
in Pretoria, Ndlovu’s expenses would have increased by $111 to travel 41
kilometers to the north eastern part of Johannesburg. 



He decided to quit.



“We realized that there is a big opportunity in the
township. We are trying by all means to not rely on anyone. We can take our children
to school. No one will suffer if they think about starting a business,” he
says. 



Social engineer Action Setaka, from the organization
ACTIVATE! Change Drivers (ACD), who advocates for the unemployed, says there is
a copious amount of injustice hampering access to employment.



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It is even worse in the townships. 



ACD is a network of young people interested in driving
change for the public good of the country through innovation and activism. 



For Setaka, unemployment has become a commodity for business
and institutions to exploit those desperately in search of work. 



From the seemlingly endless amount of documentation required
when applying for governmental posts, to the costs of printing and accessing
the internet at internet cafés, money is required.



It does not end there. 



“Transportation costs for traveling to interviews; posting
of résumés cost money, which benefits the internet cafés; data to browse job
opportunities and mobile networks make money out of this. Searching for
employment requires money, yet you find people who claim that our young people
are lazy and, therefore, they are not prepared to find work,” Setaka says.



The dire plight of the jobless youth in Alexandra is not in
isolation.



Similar circumstances reverbarate throughout the townships
of South Africa.



Another township, much like Alexandra, with compounds filled
with shacks, is swarming with people seeking jobs for survival. 



Located in the northern part of Johannesburg, Diepsloot has
the highest concentration of unemployed people in Gauteng. 



This is according to the Gauteng City-Regional Observatory
(GCRO)’s Mapping Unemployment publication, released in August 2018. 



The location, established in 1994, has grown into a
community with a population of more than 160,000 with an estimate of “24,737
shacks alongside more than 5,000 formal housing units, such as RDP
(Reconstruction and Development Programme) houses, self-built houses on
serviced sites, and a small number of bank-financed houses,” as quoted in
Diepsloot, a brochure compiled by the Johannesburg Development Agency. 



Based on the StatsSA 2011 census, the GCRO map shows the
concentration of unemployed people in areas that had rates worse than the
provincial median in 2011.



According to GCRO statistics, “the square kilometer areas
with the highest concentration of unemployed people are observed in townships
such as Alexandra and Diepsloot and contain 4,965 and 8,758 people”.



Diepsloot’s South African Youth Project (SAYP) general
manager, Clifford Legodi, says gaining access to employment for unemployed
youth in townships is harder than it is for youth who grow up in urban regions.
This points to a system exclusion due to the lack of access to resources. 



Thus, the development programs that will meet the demands of
the working environment will, in turn, open up opportunities. 



It starts with breaking norms. 



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“Young black people or previously disadvantaged communities
are still using the traditional method of taking a taxi, printing a résumé or
going to the offices. We felt that it was important to incorporate an online
skills program. You look at their online presence. How they apply for a job
online. Are they actually keeping a good online profile and how to secure
opportunities in time?” Legodi says.



SAYP is a youth development organization aimed at the
empowerment of young people by giving them the skillsets to utilize the
opportunities around them. 



This is done through the ‘Power Through Jobs’ program
offered by the non-profit.



Life skills, work-readiness, and getting a job are some of
the main points of focus for the youth of the township. 



Online job-searching skills have been implemented in order
to keep up with the evolving working environment.



Through encouragement and continuous skills development,
Legodi says the notion of staying in one position will fade away, and the youth
of Diepsloot will aspire to climb the corporate ladder.



“If they can conduct themselves in a professional manner,
they will gain credibility,” he says. 



The population is dominated by black people and for Legodi,
the lack of opportunities within their reach means that those who are able find
employment will have to travel long distances to get to work.



“Diepsloot has its own reputation that is quite limiting for
young people to get opportunities out there. 



“The media also has a bit of an influence, bad news sells. A
lot of the things you see are about the crime, but everyone is treated equally
within the community,” he says. 



“The mistake we have been making in the past when it comes to
addressing unemployment, is that we tried to develop a program that put
everyone in the same box. We tend to forget that people come from different
geographical locations and they are exposed to different lifestyles.” 



Twenty-nine-year-old Thapelo Tau sits in a living room
watching television. 



<figure class="wp-block-image"><img decoding="async" loading="lazy" width="921" height="611" src="https://www.forbesafrica.com/wp-content/uploads/2019/02/Unemployed2.png" alt="" class="wp-image-39177" srcset="https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed2.png 921w, https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed2-300x199.png 300w, https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed2-600x398.png 600w, https://cms.forbesafrica.com/wp-content/uploads/2019/02/Unemployed2-768x509.png 768w" sizes="(max-width: 921px) 100vw, 921px" /><figcaption>Thapelo Tau of Alexandra. Picture: Gypseenia Lion </figcaption></figure>



It is noon and he is catching up on his favorite shows in
the home he shares with his mother and two sisters.



“I have been unemployed for five or six years. It has been
difficult to look for work. Many people here give up and they just sit at home
and watch television,” he says. 



He spends most of his time on his phone and reading.



“You may take your documents to look for work, but when you
leave, they tear it up. We just give up because there is nothing we can do. I
have an uncle who has been looking for work for a long time. He just stopped
looking,” Tau says. 



When approached for comment, the uncle dismisses the
interview in vernacular. 



“We are looking for work. We can’t even speak English,” he
says. 



English is widely considered the language of access in this
nation where there are 11 official langages. Those who can’t speak the language
are almost always immediately excluded from public participation.



“The problem that we have seen with people from townships is
self-confidence. They get afraid when they have to leave their comfort space.
They then need to present themselves in a different way, they have to adjust to
a different lifestyle to showcase an approach,” says Legodi. 



Afri-Berry founder and director, Relobohile Moeng, says the language barrier is one of the biggest challenges for the youth in the townships. Going the extra mile for an intern who lacked verbal communication skills, she offered mentorship and guidance. “The confidence part I had to build in, as her mentor,” attests Moeng. 



Townships have the undying potential to contribute greatly to the country’s aggregate economic growth; this can be achieved only if the high populations are granted the opportunity to play their part in the economy. Alexandra and Diepsloot are testament to the facts. 



In the interim, Ndlovu, much like the rest of the unemployed population, strives against all odds, hoping against hope to continue to put food on his own table whilst feeding his community.

Unemployed3

IN PICTURES | The Occupation Of Unemployment In South Africa

Sanlam&#8217;s approach to its employees is the same as its approach to its clients, to enable them to live their best possible life.
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 &#8211; Content supplied by Sanlam

Africas-Leaders-in-HR_Sanlam_Page11

Making Work Rewarding For Generations To Come

Dimension Data turns employee careers into worthwhile experiences with tools, technology and now robotics. 
Seventy two percent of our workforce today is made up of millennials. A generation looking to government, as well as to corporates to solve societal problems. Overwhelmed employees need work that inspires them and enables them to make a difference in society.
To be a Top Employer and to attract and retain our talent and that of the future, means we need to create an environment built on empathy, wellbeing, one that provides coaching and mentoring, where careers are transformed into experiences.
For too long we’ve had robotic expectations of human performance. It’s about time we hand over the mundane tasks to robots, so we can focus on work that inspires us. A successful organisation of the future must become a data-led social enterprise, treating employees fairly, transparently and in an unbiased manner – says Dimension Data Middle East and Africa HR Executive Michaela Voller.
Voller says they need to reimagine how they will operate and transform Dimension Data to be fit for the future, and have begun their journey of transformation. They have adopted a Scaled Agile Framework (SAFe) methodology to allow them to scale lean and agile work practices, and are moving towards agile workspaces to support this. ‘Our aim is to provide a more efficient service to our clients through this collaborative approach’.
We recently launched a new way of working through our global HRIS platform – Workday, continues Voller. We needed to improve the employee experience with tools that provide real-time transparent information, and enable employees to manage their own careers. Our employees can set performance objectives and get feedback on their progress from various peers at any time. They can in turn ‘give feedback’ and recognise their peers for great work. They can also showcase their careers by sharing their career history, competencies and aspirations, and can map their learning journey through our integrated learning platform, making them more accessible for promotional opportunities.
We also launched a new on-boarding experience – continues Voller. We decided to digitise induction as part of our broader digitisation journey, through a mobile application to ensure a social experience to on boarding. By digitising the knowledge transfer on the platform, we’ve managed to create time and space for human connections through conversations.
Dimension Data is also integrating robotics into their organisation. As one example, our bot ‘Pippa’ screens thousands of CV’s, cutting out the bias nature of candidate selection currently performed by HR departments – explains Voller.
These are massive mind set shifts and we are encouraging and empowering our people to consider these changes and make this a success in our business. Our transformation journey is not nearly over, as we look forward to further exciting challenges ahead.
In our world today, change after all is the only thing we can be sure of.
&nbsp;
&#8211; By Jenni Burgum, Dimension Data.

Michaela-forbes

Transforming For The Future

Unemployment is one of Africa’s biggest headaches. According to the World Bank, in the next 10 years, 600 million new jobs &#8211; that&#8217;s about half the population of Africa &#8211; are needed to keep the planet working and happy.
The International Labour Organization estimates that the number of unemployed youths in sub-Saharan Africa stands at 11.6 million. Another study, by the African Centre for Economic Transformation, claims that almost half of the 10 million graduates churned out every year from more than 668 universities in Africa do not get jobs. That means millions of young, restive and discontent Africans are educated well enough to know what they are missing out on. The unintended consequence of this is many of the youngest and brightest are looking for more than just jobs.
“With the rise in graduate unemployment, more and more graduates are reassessing their career options and looking for more entrepreneurial career paths,” says Franklin Cudjoe, President and Founder of the IMANI Center for Policy and Education.
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The dynamics of the employment game are changing fast, according to Cudjoe.
“We have several things that young people are looking for when they graduate from university these days. For example, Generation Y graduates are generally less motivated by money, and more focused on making an impact as well as having greater independence in their work,” he says.
As a result, there has been an upsurge in the number of start-ups across Africa. According to FORBES, African tech start-ups raised $129 million in funding in 2016, resulting in a 16.8% increase in the number of successfully funded start-ups from 2015. A 2016 Disrupt African Tech Start-ups Funding report shows that South Africa, Nigeria and Kenya remain the three most popular investment destinations on the continent, with over 80% of secured funds.
“Jumia has raised over $200 million, iROKOtv another $16 million and Konga $38 million, and the number of success stories just keeps rising. This year Andela closed another round of funding which saw investment from Mark Zuckerberg. So, given the current challenging economic climate, it seems entrepreneurship is the way to go for many young people,” says Richmond Quarshie, Founder of Goldsmiths Capital, a private equity firm in Ghana.
For Stephen Emenike Kamalu, a 23-year-old graduate from Madonna University in Rivers State, Nigeria, and an Associate Tax Analyst for American multinational conglomerate General Electric (GE) in Nigeria, both entrepreneurship and gainful employment can be beneficial for millennials.
“For me I think the most important thing for young people is finding your path. So if your path is aligned with having a career, then that is what you have to do. You have to build yourself along that path because you need to have self-fulfilment and for those who feel they have to do their own thing, then that is what they should also do,” he says.
“Employment is along my career path. I plan to have a professional career so that is in line with the path I have chosen for myself and I wanted to get the necessary skills and knowledge to take me along that path and take me to the next level. I am doing both and I can balance it because I feel once I get my experience in my nine-to-five I can also start a side business.”
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His opinion conflicts with that of Chuks Anyaduba, Co-Founder of TOG Media.
“I started my own company about four years ago after I left university, so I would say I know a thing or two about entrepreneurship, but in my opinion traditional employment might be a better path for many young people. Running your own business might lead to more money, greater freedom and a chance to follow your passion, but employment provides invaluable experience in a safe environment. You get to learn on the job without every day being a battle to keep your company afloat,” he says.
Anyaduba believes the allure of doing what you like as an entrepreneur does not take into account the value of a multi-discipline experience.
“Most entrepreneurs start a business in things they have a passion for. If the person likes music, they start an entertainment business, and if someone is a fitness fanatic, they open a gym, but to get the business off the ground most entrepreneurs spend a majority of time selling and marketing which leaves no room to learn other skills. In employment, you get to try different roles and different sectors and delegate to those who are good at certain jobs to excel,” says Anyaduba.
Fredrick Aghuno is a 22-year-old multimedia designer, popular for creating wearable art, 3D backdrops, luxury art and papier-mâché. He is the founder of Dricky Stickman, a company he started after university last year. His opinion about employment is marred by his father’s experience.
“My dad did a nine-to-five for years and when he retired the company still owed him around N75 million ($210,000). Entrepreneurship is what is going to move this nation forward. I believe if people my age are able to find a vocation you can really boost the economy and drive growth,” he says.
Aghuno’s passion for art began in London where he learned graffiti from the age of 12. With the help of his fashion designer brother, Frank Aghuno of fashion brand Fruche, he launched his creative line to merge art with fashion.
“I wanted to experiment for a while so I thought how can I merge graffiti with the things I love. I decided to try graffiti on clothes because nobody could tell me I was defacing my clothes. I initially didn’t want to sell. The plan was to just do it for myself and take pictures for social media but I got my first order from another designer and from then more orders started coming in,” says Aghuno.
<a href="http://www.forbesafrica.com/entreprenuers/2017/12/14/situation-forced-entrepreneur/" target="_blank" rel="noopener">READ MORE: &#8216;Situation Forced Me To Be An Entepreneur&#8217;</a>
Despite dreaming of becoming a professional football player, Aghuno’s goal is to expand his fashion business.
As more and more students come to the unsettling realization that they aren’t guaranteed a job after graduation, those who are innovative are creating new opportunities for themselves.
“In today’s world, you can’t rely on anything or anyone to make you successful. You have to be accountable for your own career and create your own path,” says Jeffrey Manu, Founder of Manu Equity, a start-up based in Silicon Valley.
“Hundreds of colleges offer entrepreneurship courses and employers are starting to understand the importance of that type of education. More employers are actually looking for students with entrepreneurship experience when hiring simply because students who have an entrepreneurial mindset have what it takes to thrive in an extremely competitive environment,” says Manu.
The statistics are also stacked in favor of entrepreneurship.
“When you look at most of our most respected entrepreneurs of our time, Mark Zuckerberg, Bill Gates, Steve Jobs, Larry Ellison and Travis Kalanick are all college dropouts who have gone on to become billionaires. Why would anyone not want to become an entrepreneur?” asks Quarshie.
This is the big question. In the face of growing unemployment, millennials are changing their approach to the world of work. The changes that are disrupting traditional business models are the tip of the iceberg and if the next generation wishes to succeed in the new world, they will need to carve a new path and just maybe say goodbye to the nine-to-five model.

Entrepreneurs Born Or Made?

Recently, there has been incessant talk about the National Development Plan (NDP) and how it, as our government so eloquently states, will mitigate the triple challenges that South Africa faces: poverty, unemployment and inequality.
Developmental theory tells us that ‘developmental states’ aim to attain industrialization through active participation in the formulation and implementation of industrial policy, while simultaneously implementing policy to redistribute income to minimize the unequal distribution of income resulting from industrialization.
One of the greatest dangers South Africa faces with industrialization is that the tendering processes in the public sector is corrupt. We cannot have a situation where the benefactors of the industrialization will be those with close ties to government and the ruling party. This would be disastrous for the country and will increase social tensions, while widening the income gap. A good education and healthcare system, which is often entirely subsidized by the government, are key characteristics of a developmental state. The equalization of income is also an important factor, with countries, such as South Korea, being considered among the most equal as well as enjoying the highest living standard in the world.
Bureaucratic competence is essential in ensuring that state institutions facilitate the swift and efficient implementation of the NDP. The state will have to bolster its departments with captains of industry and experts to improve its human capital base. In addition, they ought to be able to attract the brightest young minds and look for creative ways to lure them to the public service as opposed to merely giving them higher salaries. How will the National Planning Committee (NPC) fare compared to successful central planning economic bodies of countries such as Malaysia and South Korea? It remains to be seen. In these aforementioned governments, the state had a more interventionist stance in the economy, coupled with establishing a cohesive relationship with the private sector based on common national policy goals.
A competent bureaucracy is an essential, but not sufficient, condition for a developmental state to thrive. Equally important is the political capacity that will ensure that the state is both accountable and transparent. Unfortunately this is an area that the South African government needs to improve.
Although South Africa should draw inspiration and lessons from the developmental states of the Asian Tiger economies, it should note that the blueprint from these nations is not a one-size-fits-all solution. South Africa’s developmental state will require differing arrangements because no single economy is like another. South Africa is a resource-rich nation, whereas South Korea and Malaysia are more technologically-centric and industrialized economies. Our government should focus on formulating our own unique developmental state blueprint that will help tackle and alleviate our pressing challenges within our distinct African context.
The lack of cohesion between the ruling political party, the African National Congress (ANC), and its communist tripartite alliance is also a cause for concern. Very often the two have stark differing ideologies on pertinent issues such as monetary policy. The South African Communist Party (SACP) previously lobbied for a populist stance of growing the economy by removing the inflation target of 3% to 6% and lowering interest rates to stimulate demand for credit. This will result in inflationary pressures in the long-run and will lead to an eventual economic collapse. The communists often fail to understand that in as much as South Africa has pressing unemployment issues, the loss of employment for those who are already employed will permeate levels of poverty throughout our social structures and place an even greater burden on our social welfare system.
The NDP presents the ruling party with the opportunity to make amends for the lag in creation of jobs and reducing poverty. Perhaps the NDP is exactly what the ANC needs in order to salvage some of the lost faith that has resulted in the emergence of opposition parties such as the Economic Freedom Fighters (EFF) as well as the resurgence of the Democratic Alliance (DA) in last year’s elections.
There is no easy solution to attain economic growth. Placing a nation’s economy on a growth trajectory requires patience and, perhaps more importantly, resilience to astute economic policies.

A lot of work  ahead

Middle age is usually considered to be a life stage where you experience an empty nest as children leave home. For many people in their fifties, this has not been the reality; a growing number of returnees dubbed the ‘boomerang generation’ are postponing the traditional expectations of leaving home and returning to their childhood bedrooms.
Parental empty nests are filling up with one or more young adults whose expensive education, so far, has not equipped them to assume the expected next step; that is moving into their own home and finding jobs that provide enough for them to support themselves.
The boomerang generation is largely returning home as a matter of necessity. In the current economic climate, most have little choice but to turn to family or friends for somewhere to live cheaply. The job market is bleak, with unemployment on the rise, low salaries for entry-level jobs and the cost of accommodation increasing every month. These factors make it difficult for young people to be able to rent, let alone buy their own property after they graduate.
It is also true that, these days, parents have become more indulgent. Many have provided a nice lifestyle for their children, who are now used to a certain quality of life, a pampered existence which they cannot maintain without claiming it at home. Returning to their parent’s home thus provides an appealing and viable alternative that usually comes free or at least heavily subsidized, with a room, meals, utilities and transportation provided.
Naturally many young people would rather keep their options open and are not willing to compromise and accept the first job that lands on their laps.
There are however significant financial implications for parents who themselves have retired or are approaching retirement. The limited funds they have accumulated to be able to enjoy a comfortable retirement after several years of sacrifice for their children are now being spent on grown-up children.
There is the very real possibility that one or more of your children may return home for a while, so as you make projections as to the level of income you may require to sustain your retirement, keep this in mind; this will inevitably raise your monthly costs or could even delay your retirement plans. In your forties or fifties, it is likely that you simultaneously have to bear the costs of caring for aging parents, continue to support your children and fund your own retirement.
It is tempting to put aside your own retirement needs for your adult children. To be able to help your family, you first need to have some level of financial security. Although you may feel cash-strapped after paying off your mortgage, raising and educating children, and perhaps shouldering some of the costs of care for your parents, be careful not to jeopardize your retirement savings; try to continue to budget, save and keep any debt under control so that you can retain your independence in your retirement years.
If you have boomerang children, have a conversation to lay out terms or a broad understanding with clear parameters set. Encourage them to contribute in some way towards the upkeep of the house; this might include contributing towards weekly groceries and cable TV if they are employed. If you can afford it, set this money aside for them as a small nest egg for when they eventually leave home. If they are not earning, they should contribute in non-monetary ways.
Encourage your children to have a clear financial plan to help them develop sound financial habits that will last them a lifetime. They should try to make specific progress towards budgeting, controlling their debt and saving. Even while they are still under your wing, they can learn some strong lessons about the real world as they navigate the transition from young adulthood to financial independence.

Beware The Boomerang Generation

With an 18% unemployment rate, Botswana is the largest producer—by value—of diamonds, the country’s main source of income, and one of Africa’s fastest growing economies. It has come a long way since its independence in 1966.
Botswana has recently been commended by the African Development Bank (AFDB) for maintaining good economic growth and healthy foreign reserves. The country’s fiscal discipline has raised it to middle income status.
With a GDP of $14.4 million, the International Monetary Fund (IMF) has projected GDP and inflation growth at 3.9% and 6.8%, respectively, for 2013 and 4.1% and 5.8% for 2014.
The country’s main exports are diamonds, copper, nickel and beef. The discovery of alluvial diamonds in the late 1950s has played a large role in the country’s development. Botswana has achieved what many countries in Africa have longed to with their natural resources; ensuring its citizens benefit from their country’s riches.
Debswana, an equal partnership between the government and diamond company De Beers, began in 1978. De Beers has moved its operations and $6 billion-a-year worth of sales to the country. De Beers’ sites have been moved to Gaborone and a new 10-year sorting, valuing and sales contract was secured. The government is looking to turn Botswana into a major international center. The subprime crisis that rocked the world shrunk the country’s diamond revenue.
The country’s rule for new mining investments is that 15% of the company needs to be offered to local investors on the same terms as foreign ones. If the locals do not take up the offer, the companies are free to commence with business as usual.
Pangolin Diamonds recently announced it had discovered one of the largest known kimberlite pipes—a rock formation in which diamonds are formed—in the world at its Tsabong North project.
Botswana cites low inflation, low corruption, a stable economy and investment protection as some of its attractive qualities when courting investors. Investment opportunities lie in manufacturing, information technology and tourism.
It takes 61 days and 10 procedures to start a business in Botswana, and ranks at 56 on the ease of doing business index. The country has increased the profit tax rate; corporate tax is 15%, value added tax (VAT) is 10% and the country has no foreign exchange controls.
Botswana was number 59 on FORBES’ ‘Best Countries for Business’ 2012 list. Credit ratings are stable, with an A- from Standard &amp; Poor’s and an A2 from Moody’s.
Botswana is a member of the Southern African Customs Union (SACU), Southern African Development Community (SADC), enjoys the benefits of the African Growth and Opportunity Act (AGOA) and the Interim Economic Partnership Agreement (IEPA) between SADC and the EU.
Near the Sir Seretse Khama International Airport lies the Botswana Innovation Hub. The country is hoping to attract domestic, regional and global companies. The hub will focus on the biotechnology, energy and environment, information and communications technology and ICT enabled services, as well as the mining technologies sectors.
With a history of having one of the highest infection rates in the world, and one of the most advanced HIV/Aids treatment programmes on the continent, a study by Botswana’s National AIDS Coordinating Agency has recorded a 71% decline in new HIV infections since 2001, thanks to increased knowledge and condom use.
Amid all the advances that Botswana has made, it is currently facing some controversy. A court battle against the government began in 2003 after the government began relocating the Kalahari Bushmen population to settlements.
London-based Survival International has called for a boycott on Botswana tourism as a stance against how the Bushmen are being treated by the government. There is concern over Spain’s king, Juan Carlos, being allowed to shoot elephants in the country while the Bushmen are prevented from hunting, a way of life for them. They are also prevented from digging for water in the reserve, but Wilderness Safaris was granted permission to dig boreholes for water, supplying a swimming pool. Botswana is facing a severe water shortage due to receding dam levels caused by drought.
The British lawyer defending the Bushmen’s rights has been barred from returning to Botswana.
On a governance front, the 2013 Ibrahim Index of African governance, compiled and published by the Mo Ibrahim Foundation, ranked Botswana second out of 52 countries.
The president is selected by the party that wins 29 of the 57 parliamentary seats through proportional representation system. Parliament rejected a call for the people to vote for the president in 2008. The ruling party, the Botswana Democratic Party, has been in power for the last 46 years.

A Diamond In The Rough

With its fifth round of democratic elections slated for next year, South Africa has much to be proud of as it looks back on the achievements of the past 20 years. Thanks to reconciliation efforts, the Rainbow Nation navigated a difficult political and social transition with poise—something many countries have attempted, but rarely with such success.
Its films have won Oscars, its stadiums have hosted World Cups and its leaders have won Nobel prizes. Since 1994, the economy has transformed dramatically, absorbing 3.5 million new jobs and with a quarter of the continent’s GDP, it has successfully held the crown as the largest, and arguably most sophisticated and open, market in Africa.
However, the country still has one of the highest gini coefficients in the world, at above 0.63, indicative of the lack of inclusive growth. Unemployment is high and infrastructure is beginning to grapple with increasing demand. With South Africa’s GDP growth projected at roughly 2% for 2013, it is only a matter of years before Nigeria, expanding at rates of 7%, overtakes it as the continent’s economic heavyweight.
As a result, assessing the current state of the country and its performance requires a nuanced understanding of both the strengths that provide it with such potential and the weaknesses that threaten to undermine its progress.
The country’s fundamentals are in rude health. South Africa has a number of key competitive advantages. With more than $2.5 trillion worth of mineral reserves and the potential for commercial shale gas production, it boasts enormous natural wealth. Its business environment is among the strongest on the continent, with low interest rates, clear investor rights and a comparatively streamlined bureaucracy.
South Africa’s political system is fairly robust, and while the successive victories of the African National Congress (ANC) have caused complications of their own, the levels of voter turnout regularly exceed 75%, which is up to 10 percentage points higher than Britain.
The relative quality of infrastructure also provides an excellent base for expansion—South Africa’s national utility provider Eskom, which does nonetheless grapple with high demand, still accounts for just under half of all the electricity consumed in Africa.
Similarly, the penetration rate for financial services—an indicator of both consumption and potential for leveraged growth—in terms of the percentage of the population that has access to formal credit products is nearly three times the continental average. South Africa’s regulatory frameworks for its banks—which include the four largest in Africa—are among the most robust of any Organization of Economic Co-operation and Development (OECD) countries, and were rated third globally by the World Economic Forum (WEF) in terms of soundness for 2013-2014.
However, in spite of all these attributes, South Africa’s long-held position as the gateway into Africa is increasingly under challenge. The country’s sophistication is in part responsible for this. It is among the most-globally integrated markets in Africa, which has left it highly exposed to the continuingly depressed levels of export demand in key markets like the European Union, as well as to portfolio outflows which have left the rand vulnerable.
While the benchmark interest rate, unchanged at 5% for several consecutive quarters, is being kept at historical lows in an effort to stimulate lending, it still exceeds the average repo rates available in much of Europe, North America, and Japan; in turn attracting yield chasers.
But there are also stubborn challenges. Much of the country’s physical and social infrastructure is aging and in need of revamping. South Africa’s electrification rate—at 75% nationally—is the highest on the continent but a narrowing gap between supply and demand has led to load-shedding, which has constrained output and emphasized the need for new base load capacity. High levels of youth unemployment have led to social unrest. Wealth inequality is still high, but with a debt-to-GDP ratio that rises to 60% with off-budget commitments, the ability of the government to pay for social grants and benefits to the current 16 million recipients is becoming increasingly strained.
These challenges are taking their toll.
South Africa’s overall growth is expected to increase modestly in 2014, but still remain below 3%. The expected changes to poverty and unemployment levels are expected to remain minimal.
In the latest WEF Global Competitiveness Report, South Africa fell one spot from 52nd to 53rd out of 148 nations surveyed. The change in ranking reveals a mixed bag of both positives and negatives. With the overall score bolstered by top-five ratings in areas such as financial market development (3rd); auditing and reporting standards (1st); and accountability of its private institutions (2nd), but dragged down by an educational system (146th); labor market efficiency (116th); and burden of government regulation (116) that are rated poorly and place in the bottom 50.
A glance at the some of the country’s key sectors helps illustrate both the country’s potential and its weaknesses. With minerals accounting for around 60% of exports, the sector serves as a barometer and proxy for how the performance of the wider economy. South Africa is the largest producer of platinum group metals in the world, and in the top five for a host of other minerals and metals, including coal and gold. However, labor unrest, rising costs and slowing demand have contributed to more constrained output and concerns over mine closures.
The automotive sector provides a similar example. Constituting around 6% of GDP and 12% of exports, and hosting manufacturing and assembly plants for major international car makers like BMW, Mercedes, Toyota, General Motors and Volkswagen, automotives is often cited as an industrial success story and referenced as an example of what the country can achieve through targeted and proactive legislation and cooperative engagement between government, business and labor. Yet, the automotives industry is coming off a month-long strike during which exports fell 75%, costing manufacturers $2 billion.
For South Africa to unlock its potential, structural reforms are needed. Key to this will be the effective implementation of the National Development Plan (NDP) which is intended to form the strategic base for policymaking until 2030. The initiative seeks to rein in further rises in recurrent spending, while channelling more funds towards specific capital expenditures.
Alongside the New Growth Path (NGP), an economic policy focused on job creation, and sectoral policies such as the Industrial Policy Action Plan (IPAP), the NDP offers significant scope for mitigating the country’s weaknesses and encouraging a significant increase in secondary and tertiary activity. It will not be easy, but it offers a clear road map to strengthening South Africa’s comparative advantages in a more inclusive and sustainable manner.
Ultimately, assessing South Africa is all about context. Both its potential and accomplishments are vast, and many developed economies in the world would happily swap balance sheets. Over the past two decades, South Africa has seen its share of up and downs, although the pros have outweighed the cons. The outlook for the coming years may be murkier, and the obstacles more intransigent and complex, but the country’s healthy fundamentals and past performance provide reason for optimism.

Is There Still Gold At The End Of The Rainbow?

American civil rights activist, Reverend Jesse Jackson, is no stranger to South Africa. He came to Africa many times as he led radical African-Americans against apartheid in the 1970s and 80s.
<div id="attachment_322" style="width: 211px" class="wp-caption alignleft"><img aria-describedby="caption-attachment-322" decoding="async" loading="lazy" class="wp-image-322 size-medium" src="/wp-content/uploads/2017/04/DSC_0241-201x300.jpg" alt="" width="201" height="300" />Reverend Jesse Jackson</div>
The Baptist minister, who was also a US presidential candidate in the late 1980s, landed at OR Tambo Airport in Johannesburg in January as a guest of honor for the centenary celebrations of the African National Congress. It was a South Africa very different to the one he encountered three decades ago.
“The contrast between arriving in [what was then] Jan Smuts Airport and [what is now] OR Tambo airport, that in itself is hugely impactful, beyond this generation’s imagination. Back in 1979 there were no black pilots or flight attendants. The only blacks you saw were pushing brooms, they were under great intimidation and walking around with pass books in their hands.”
In 2012, the political issues of South Africa are far from over. This time around, Jackson, who marched alongside Dr. Martin Luther King Junior in the 60s in the civil rights movement,  landed in the heat of debate over one of the great issues of Africa: nationalization.
For many months in Africa’s biggest economy, there has been argument over whether South Africa should nationalize its crown jewels like the mining industry. Radicals like suspended ANC Youth League leader, Julius Malema, who is appealing his suspension from his post as president, has called for nationalization now in the cause of helping the poor with education and employment.
Jackson says it needs to be on the ruling party’s to-do list.
“The idea is to somehow create a fairer distribution of resources. [ANC] must determine the timetable for that, but too few people own too much wealth and too many have too little. Therefore, there must be some plan for re-investment so you have a fairer distribution of drinkable water, housing, healthcare and education,” says Jackson.
When Jackson reached the ANC celebrations, South African president, Jacob Zuma, used his speech as an indication that the party may want to put the issue to bed, saying government had acquired the state’s resources and would be using them appropriately to the people.
In August 2011 Mineral Resources Minister, Susan Shabangu, said: “Foreigners will not invest in South Africa; Nationalization is a bad idea… The correct question should not be whether or not we nationalize; the question, in my view, should be: How do we make use of our vast mineral wealth to eliminate [poverty, inequality and unemployment]? Is this perhaps not a more productive debate?”
Shabangu’s comments came to the dismay of many young black, unemployed South Africans as well as activists like Jackson.
“This is government induced wealth and neglected poverty so South Africa’s having to overcome centuries of mal-distribution of opportunity. Some of your best minds were driven out the country, others were not allowed in the country. So you cannot dismiss the devastating long term, continuous resonation of the economic apartheid system. This South Africa is different today; you are now free but unequal. Freedom required the will to sacrifice, to overcome barbarity and indecency. Now the challenge is equality, which requires a different set of skills,” says Jackson.
The nationalization question will be decided in December 2012, at the ruling party’s elective conference, which will also be held in Mangaung, Bloemfontein.
For now, Jackson says, the country’s democratic progress is headed in the right direction, but there is still a lot to learn about transparency, checks and balances.
“It’s still early in the morning for the new South Africa,” he says.

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