The Youth are a major part of SA's Population !!!

SA Youth Population

The graph above clearly points out that the youth make up 49,2% of South Africa's population, these are people who are 24 years in age and younger. We know that some of those who fall within this age group are either not attending school or university for various reasons which means they lack the skills to be economically active or are simply unemployed. Among those youth who are unemployed, there are many who have acquired skills but lack the experience that potential employers are looking for.  

This is a challenge, in a sense that it places significant pressure on the adult population, those aged between 25 years and 64 years in age, to support these youth who are neither skilled nor employed. However, there is also an opportunity, in a sense that those youth who are unskilled should be provided an opportunity to acquire skills that would allow them an opportunity to find work in the primary, secondary and indeed even the tertiary sectors of South Africa's economy. Having said that, the primary sector (agriculture, forestry and fishing) of South Africa's economy has been under enormous pressure over the past few years. Especially the agriculture industry which was hit by a drought in the recent summer months and the mining industry which has been hit by relatively low commodity prices. Indeed, according to South Africa's Gross Domestic Product (GDP) figures for the first quarter of 2016 as reported by StatsSA, the mining industry contracted by an alarming 18,1%. 

As such, there should be a greater effort put towards helping the youth develop skills that will prepare them to find work in the secondary and tertiary sectors of South Africa's economy. However, in order for that to become a reality, these two sectors themselves would need to show aggressive growth in order to accommodate more numbers of job-seeking youth. According to first quarter 2016 GDP figures, the secondary sector (manufacturing) grew by a mere 0,6% while the tertiary sector (including transportation, storage, communication, finance, real estate and other services) contracted by 2,7%. To be sure, different skills are required for each of the three sectors which make up South Africa's economic mix as such, government ought allocate resources aimed at developing the youth according to the the desired economic mix.  

There is no doubt that the youth are a major part of South Africa's population, yet they remain a small part of South Africa's economy. Their economic prosperity as a group shall always result in economic prosperity for South Africa as a country. Conversely, the youth who remain in poverty shall condemn South Africa as a whole to poverty and increase inequality. Without a doubt, we all want prosperity for our youth because this will bring about general prosperity for our country as a whole.

Our Politicians must show willingness to create effective government

It was a close call !!!

After months of waiting with bated breath, S&P Global  has made its call on South Africa's country credit rating status. The verdict is good news for the people of South Africa. The question is whether or not the ANC government will use this respite to improve South Africa's economic fortunes in order to avoid a down-grade next time around.

So far there are signs that Treasury, under the leadership of Minister Gordhan is doing all the right things. However, Treasury cannot improve the economy on its own, other national government departments, provincial and local governments must play their part too.

If a recent report by the Auditor General of South Africa, on the financial affairs of municipalities for the 2014/15 period, is anything to go by, it appears that many municipalities have so far not played their part. Indeed, 72 municipalities received clean audits and while this is a higher number than the previous Auditor General's report for the period 2013/14, this is still a mere 26% of of all the municipalities (272). The rest of the municipalities (74%) received either unqualified or qualified reports. Based on this view alone, the road to a credit ratings upgrade for South Africa remains long and a lot of work still needs to be done, if we are to even achieve an unchanged credit rating status next time around. 

Our Politicians must show political willingness to create effective government