5 Ways of Investing to Reduce South African Unemployment
With one of the highest unemployment rates in the world, South Africa, particularly, its youth, suffers most from it the most. The government and big corporates intervetions help, but everyday South Africans, like citizens, entrepreneurs, profesionals, investors, and property investors, can also help in job creation. Investing goes beyond making a profit; it can positively impact a society too. When the citizens invest their time, money and talents in the proper areas, they can create an economy from which many may derive an acceptable standard of living.
The following are five of the most effective, viable and sustainable methods in which South Africans can invest to create and maintain employment.
1. Spend and invest in SMMEs
Although SMMEs are recognized as the South African economy’s foundation, they are the most neglected. Research indicates that in developing countries SMMEs stand to create an economy’s 90% new jobs. The major potential lies in their access to funding.
Ways South Africans can invest in SMMEs are:
Direct Funding or Angel Investing: Those who can afford it are able to assist start-ups or small struggling enterprises in expanding their operations by way of purchasing equity, entering long-term profitable business partnerships, or providing loan financing. Every cent counts for entrepreneurs that need funding for hiring more workers or to boost productivity.
Community Investment Groups and Stokvels: Traditional stokvels are are also evolving into Investment stokvels where members pool their funds to lend to small enterprises, especially in rural and township localities. This lends the opportunity to at least circulate the money and create employment opportunities in close proximity.
Supplier Development: Larger entities or individuals can assist smaller suppliers or contractors by offering them a contract, providing them with mentoring and coaching, or by financing them. Supporting the small enterprises to join the supply chain of larger enterprises, enables those smaller enterprises to employ more workers.
By supporting SMMEs, South Africans are able to invest in the primary engines of job creation.
2. Investing in Skills Development and Education
Unemployment is also a result of there being a significant gap between the available jobs (supply) and the jobs that people are able to fill (demand). This makes an investment into skills development one of the more sustainable methods to alleviate the problem of unemployment.
Sponsoring Students Now Available Bursary , Learnership or Apprenticeship
Individuals, NPOs, and Companies can set up or sponsor training for people in demand skills, including digital technology, engineering and vocational trades (Plumbing, Electricals, Welding, etc.) An educated and trained workforce drives investment and economic growth.
Establishing Training Centers within the Community.
As investors, you can financially support training centers, which provide the opportunity for your community to acquire practical skills; i.e. sewing; coding; carpentry; agriculture; & Customer Service. Training Centers help unemployed adults and youth develop skills so they can obtain their credentials and begin earning income. People can sponsor access to online training and elevate the community.
When South Africans invest in education, they are not buying knowledge. They are buying future entrepreneurs, employees, and innovators who will be part of the economy for years to come.
3. Direct Investment in the Township and Rural Economies
While townships and rural areas are home to millions of unemployed people, they are also home to untapped economic resources. There is great potential to invest in these ecosystems. It will create opportunities for trade, agriculture, transport, technology, and hospitality.
• Township Property Investment
By Transforming Unused/Abandoned Properties into Business Incubators and creating/implementing Business Models and Spaces for Co–Working, Retail, Light manufacturing, and Short–Term Rentals will produce an effect of greater Local Activity and Additional Investment by and for the Local Community.
• Support of Local Manufacturers:
There are very labour intensive small-scale plants processing food, making furniture, and sewing clothes. These are all business opportunities that investors can get involved with through seed capital, machinery, and distribution systems.
• Agriculture and Agro-processing
Small-scale agricultural ventures can also be very beneficial in rural settings. Investing in mucilage for processing plants, poultry farms, greenhouses and irrigation, can provide numerous jobs throughout subsystems from farming to packaging.
• Investing in Local Technology Solutions
There are more tech start-ups in townships that resolve challenges like digitising informal trade and local deliveries. Supporting these start-ups can provide disruptive bottom-up innovation.
Small towns and the rural economy are supported by every South African through their contribution to job creation.
4. Invest in Renewable Energy and Green Industries
As a result of the long-term Energy Crisis faced by South Africa, this issue has opened many avenues for growth within the Green Technology and Renewable Energy Sectors. Investing in these sectors creates jobs and provides companies with options to mitigate their current energy crisis.
Small scale solar projects, such as household solar, business solar, and farm solar, requires employees in the form of technicians, installers, electricians, and maintenance workers. Employment opportunities are created immediately and in the future.
Waste to energy contracts, and recycling cooperatives, have the ability to create economic value and profit. Investors are able to provide funding to collection centers, recycling facilities, or provide training to informal waste pickers.
Sectors of the green economy have the fastest economic and job growth. The country of South Africa can reduce unemployment and build a prosperous future for the ecosystem. The country must invest in the green economy as a priority.
There are completely new forms of work created by the digital economy and the digital world. Many of the new work opportunities created do not require a formal level of education and do not require a physical presence to do the work. . The digital age and economy opens the South African digital economy to work and jobs on a global level.
Tech startups in digital fintech, digital health care, retail tech, and logistics tech have potential to create employment and economic growth. Tech focused angel investors and venture capital within the economy are the main players and have the ability to stimulate the economy by funding digital tech for rapid scale growth.
5. Supporting Freelancing & Remote Work Platforms
Providing young people with the necessary equipment, training, or internet infrastructure, would allow them to work online as designers, writers, developers, or virtual assistants to name but a few. Remote work has the ability to integrate potentially thousands of unemployed youth into the global workforce.
Expanding Internet Connectivity
When investing into community Wi-Fi networks, fibre infrastructure, or digital hubs, we increase peripheral available to the unemployed. Connectivity is not a luxury anymore. It is an ultimatum.
E-commerce & Digital Trade
When a local e-commerce platform is funded, we help small businesses to access larger markets, which increases sales as well as their ability to hire.
The digital economy offers an entirely new, limitless, borderless, & innovative frontier for job creation.
Conclusion
Transformational investment is needed to tackle the multifaceted issue of unemployment within the borders of South Africa. Assisting small businesses, funding the development of new skills, revitalising the economies of our Townships/Rural areas, driving the renewable energy sector, and capitalising on the expanse of digital opportunities South Africans can create meaningful employment for their peers.
True transformation starts when people, societies, and companies recognize that support is not just a monetary activity, but an ethical commitment as well—where investments are channeled to areas that create opportunities. South Africans will be able to construct an economy wherein all people are given an equitable opportunity to be engaged, participate, and succeed.
