Completely dormant South African assets
Legislation and other
Government interventions may assist in transforming our society into one in
which the limitations on each individual’s success are only self-imposed.
A more important
element to a nation’s success is however that those who have gained experience
and expertise take proactive steps in using those assets to invest in society’s
future – our young people.
This article gives an
in depth view of the opportunities which this represents.
Provocative thoughts and questions
Senior South African
economist, Cees Bruggemans poses provocative thoughts and questions in his
recent article “SA Radical Prospects: Limitations & Opportunities”:
“It
can be said, in all earnestness, that the modern South African economy has
never been given a fair chance to show what it is truly capable of, in both the
productive and the distributive sense. Could we make it our first priority to
use the proceeds of resource windfalls to beneficiate our human capital stock?
Should we in the future make our own luck through foreign trade by
participating more aggressively in global value chains? Can we break our
previous development ‘mould’ (relying mainly on resource windfalls as
development push factors) by making our human capital stock the centrepiece of
our development efforts? Should we in the future be focusing mainly on
‘beneficiating’ our human capital and through it seek richer and more
widespread human development? The central theme of South Africa’s development
would then become the harvesting of our youthful demographic dividend, so far
left completely dormant.”
Sticks, carrots and international recognition
The answers to these
questions bring exciting opportunities to business. Since South Africa’s
logistics costs hover at around 12 - 13% of its GDP, these issues are of
significant importance to any logistics and transport organisation. Add to this
the fact that, of the of the 21 million young people (under 35 years) in South Africa, 18.3 million of them are
without jobs*.
Both the sticks and
the carrots exist to reduce the high proportion of logistics costs and youth
unemployment, given that these result from the same cause – lack of skills.
As of 1 May 2015, companies
need to DOUBLE their spend on training from 3 to 6% of payroll in order to meet
the required 8 out of 118 points on the revised B-BBEE scorecard. This can be
most cost effectively achieved by uplifting the skills of those same unemployed
youth and, by spending the same Rands on the right people in the right
programmes, 25 B-BBEE scorecard points can be achieved.
There have never been
more learnerships in the field of logistics and transport than those which have
been registered to date: it is the sponsorship of young AICs (Africans, Indians
and Coloureds - especially women and handicapped individuals) on learnerships which
earn the highest B-BBBEE scorecard points.
It is also learnerships
which attract the highest levels of both SETA funding and tax incentives. In
effect they are cost neutral, thus releasing funding to upskill existing staff
who may not necessarily be AICs.
A further key
development is that the international Procurement and Transport and Logistics
professional bodies, the Chartered Institute of Purchasing and Supply (CIPS)
and the Chartered Institute of Logistics
and Transport (CILT), are aligning their programmes to learnerships registered within
a degree qualification. These means that graduating leaners receive a local
degree and may also qualify for international professional status.
Business sustainability
“It’s all very well implementing learnerships by
bringing in unemployed youth” you say, “but how does this benefit my business?”
From the 2014
Barloworld Logistics supplychainforesight report, “Respondents ranked the lack of relevant skills and talent as their
number one strategic business constraint.” This is emphasised throughout
this and similar reports. Other studies have proved that 85% of learnerships
graduates are retained in the businesses. Conclusion? Learnerships provide businesses
with the scarce and critical skills needed for sustainability.
Are you gearing up
your training and development programmes to make your company more competitive?
What effect does your
B-BBEE Scorecard rating have on your ability to attract and retain clients?
How will South
Africa’s youth unemployment rate affect your business? Business as usual? Seek
opportunities elsewhere? Capitalise on the opportunity?
Exciting times ahead!
* “Youth in a state of emergency” Andile Lungisa, former ANC Youth League
deputy president, Sunday Independent June 15 2014
