By Armand Bam
The recent announcement by the President removing a “significant obstacle” to energy supply in South Africa should be welcomed, but received with caution.
As the business sector signals its satisfaction with the reduction in red tape, and its promises of increased employment opportunities, civil society must remain vigilant. It is in the words of the President that we must find caution.
“Our economy will be the winner. Eskom will emerge a winner” is in and of itself undermining of us citizens. It is not Eskom that has endured the load shedding, but us, as citizens. It may be inferred that through improved production, we as citizens, will benefit, yet it is this positionality that there is cause for pause.
The government and the governing party have all but been forced into this ‘concession’. Up until now, it has just been the stubbornness to relax such restrictive environments and the protection of Eskom interests, that has kept us all to this ransomed relationship.
Those who have suckled at the teats of Eskom had their bellies filled and left it dry with rolling blackouts as its consequence. The government and governing party, with its failing confidence, really had no choice, as one realizes that “all that glitters is not gold”.
While it is wise to remain sceptical of many businesses making claims of acting with responsibility in society, there is hope that a more reliable energy supply in South Africa will have positive outcomes. It is in the hope of positive outcomes that we expect the business sector to coalesce in the understanding of its increasingly important role in ensuring a balanced society. Unemployment has reached record highs.
The latest QLFS (1st Quarter 2021) reports its third consecutive increase in unemployment since COVID-19. In the previous reporting period 701 000 South Africans were added to the unemployed list and before this 2,2 million in the previous quarter.
We currently have 32.6% of our population unemployed (the highest since the QLFS started in 2008). It is with this background that the scepticism of business acting with responsibility is piqued.
BUSA indicates that it is positive the improved conditions for energy supply will create some 16 000 jobs and the Minerals Council of South Africa has likewise welcomed the move.
But how is this of any significance to the majority of our unemployed citizens? If we consider that mining is and extractive industry where the market perceivably shows a lack of conscience in order to serve its own interest, we should rejoice at President Ramaphosa’s announcement with caution. Which mining company has ever left more than it has taken?
Similarly, the questions regarding SAA’s private equity partner must be received with trepidation and our outrage at the slow progress of vaccinations must become more vociferous. We are at times as a society too accepting of a fate determined by politicians and businesspeople.
While we can remain hopeful the changes that have been implemented will bring about a better life for all, it is hard to miss the hardship that has been imposed and inflicted on many.
With this in mind, our attention has been directed to those that are unemployed with many considering job creation and increasing opportunities for entrepreneurs to succeed as the silver bullet.
The QLFS paints a dire picture highlighting that 32,4% of 10,2 million young people between the age of 15-24 years were not in employment, education or training. In society we should have men and women working to support themselves and pay taxes for the common good.
This typically is how we see the maintenance of the social contract in action and people giving to their societies and communities. Work we know is a key determinant in improving our self-worth, purpose, and the ability to be self-determined. The poor employment rates must make us aware of what is truly at stake. A demoralized and disintegrating society.
While the government and big business want to sell us the idea that improved employment opportunities will bring about radical change to the lived experiences of many, it is just impossible to expect that this situation will change any time soon. As we battle through this malaise of unemployment, we have to look towards a root cause asking why is it that we have this growing unemployment?
While education invariably leads to improved opportunities for employment, we see yet, our populace reluctant to take up these opportunities or being disappointed by them.
With the dawn of the Fourth Industrial Revolution, those aged 15-24 years old, have the most to contribute, so it is vital they are provided the tools to be successful. It should (will) be their taxes along with others that support the functioning of our society or their inability to gain employment that will expand the welfare burden.
Those of us a little further on in life and who might be dependent on a state pension or health care must bear this in mind and so we do have a duty to ensure they gain employment sooner rather than later. This intersection between business needs and education must also be considered in order to reach the best benefits before every CSI programme directs itself at projects aimed at employment.
But, why is it that we see these poor returns in terms of our youth being engaged in education and training? Most advanced societies have acknowledged the value of education as it contributes to the cognitive, emotional and physical development of people who are expected to become active and engaged citizens that share the values required to uplift our society.
With close to 50% of children not attending an educational institution (StatsSA, 2018) during the early learning phase we cannot expect the educational outcomes and subsequently employment outcomes to change. Education is a clear pathway to employment, which leads to the ability to collect more taxes. Those who are educated and gainfully employed have less reliance on the state for welfare and health care. One would also expect that lower levels of crime would accompany this trajectory.
While tertiary education is a privilege, the need for strengthening our education outcomes should start earlier. It is in the early childhood development, primary and secondary schooling that we must start to develop these “entrepreneurs”. This should by no means only be in the domain of business schools. Developing the requisite skills must start well before this. Entrepreneurs need more than degrees or certificates; they need the know-how.
While capitalising on the return for socio-economic development spend and other vehicles of social investment is good for business, we must more earnestly ask what is good for society.
We must transcend a compliance related focus on delivering impact and start to address the real issues at hand. At times with no immediate expectation in return. Our education and health care systems are all but broken and business can play a role here.
The return might not be immediate, but we will be providing a better foundation for strengthening the social contract.
Consider that technology has taken centre stage and impacted significantly on what the labour market requires along with the influences of automation and globalisation, and you start to witness the disappearance of what sits between high and low skilled workers, those in the middle holding factory or administrative posts.
With this changing landscape, our education system must develop people that are flexible and competent in problem-solving. We need to focus more on how our children can learn how to learn and how to acquire knowledge if the expectation is that they become entrepreneurial.
This imprinting starts from a young age. It is here, that if we are to address this widening unemployment gap, that businesses should consider their investments and quite literally invest in the future of our nation.
Dr Armand Bam is the Head of Social Impact at the University of Stellenbosch Business School (USB)
*The views expressed here are not necessarily those of IOL or of title sites
BUSINESS REPORT