The Department of Employment and Labour is spearheading an initiative to combat unemployment in South Africa and, as part of this initiative, the Unemployment Insurance Fund (UIF) is planning to collaborate with various government institutions.
The department says these partnerships are aimed at creating more than 234 000 new job opportunities and, over the next three years, it says these opportunities will provide support to small, medium-sized and microenterprises.
Organisations including the Small Enterprise Finance Agency, the Small Enterprise Development Agency, the National Youth Development Agency, the National Empowerment Fund and the Presidential Youth Employment Initiative, are expected to receive more than R7.7-billion from the UIF to implement the interventions.
This was revealed by UIF Commissioner Teboho Maruping during an Employment and Labour Ministerial meeting with UIF management, in Pretoria, on July 16.
The Ministerial meeting formed part of the Ministry’s engagements with entities and branches of the department.
During the meeting, the UIF provided a comprehensive briefing to Employment and Labour Minister Nomakhosazana Meth. The briefing encompassed key aspects such as the UIF’s mandate, programmes, performance, financial standing, business processes and employment creation interventions.
Maruping outlined that, in addition to collaborating with private businesses through the Labour Activation Programme, the fund would also capitalise on existing government programmes and interventions to mitigate unemployment.
"Our collaborations with other government entities, many of whom will match our funding contributions with equal investment, are intended to enhance the department's ongoing efforts over the next three years,” he said.
Maruping further stated that more information about these partnerships would be disclosed during the official launches, which are expected to take place in the current financial year.
"We are presently conducting a probity exercise to evaluate the feasibility of these interventions. If they prove to be beneficial, we will finalise agreements and proceed with their implementation,” he added.
“Such interventions should be welcomed because they will assist in massifying much-needed employment creation and boost entrepreneurship in our townships and villages,” said Meth.
She cautioned, however, that governance structures needed to be tightened to ensure funds were extended to organisations that had the capabilities to deliver on agreements, whether government or private.