SSACI News


No 3, December 2001

In this issue

This newsletter aims to keep SSACI’s partners informed about what the Initiative is doing, and why.

It seeks to give sponsors and project implementers a better understanding of one another’s perspectives.

It highlights issues in the fields of education, training and skills development that effect SSACI’s work.

“SSACI News” is issued quarterly from the desk of the Programme Manager:

Tel: (012) 362-2972
Fax: (012) 362-2971
e-mail: ssaci@sdc.net

 

 


2001 Greeting Card
Our 2001 greeting card shows a SSACI-sponsored trainee from Furntrain with some handiwork she produced with her newly-acquired woodworking skills

How Much Does it Cost to Create a Job?

There’s an old saying that “you have to spend money to make money”. You certainly have to spend money to make jobs. But how much can reasonably be spent to create a new job? There is no simple answer to that question. It all depends on what sort of job you’re trying to create and in which sector of the economy. For example, jobs at Alusaf’s big new aluminium smelting plant in Richard’s Bay – a typical secondary (i.e. manufacturing) industry project - cost an average of R6’000’000 each to create. By contrast, the South African treasury allocated R3-billion in the 2000-1 fiscal year to poverty-alleviation projects, which generated 84 500 jobs. That works out at an average of just R35’503 per job.
However, there is a difference between the jobs created by Alusaf and those created by most government poverty-alleviation programmes. Almost all jobs at the Alusaf plant are permanent, high-
income jobs. They also generate wealth for the country as a whole by adding value to existing resources that can be exported to overseas consumers. By contrast, jobs created through state-sponsored poverty-alleviation projects are typically low-income jobs, mostly in the service sector, which create little new wealth within the economy as a whole. Thus, only 2500 of the jobs created last year through South Africa’s national poverty-alleviation programme were permanent in nature, while 82 000 were temporary. At R35’000 each, the cost of the latter is comparable to that of jobs created by similar programmes in North America and Europe.
The consensus amongst development specialists is that, on average, it costs about R1’000’000 to create one new, permanent, middle-income job in South Africa. On that basis, it would take our entire GDP to create another 600000 jobs.
SSACI is sponsored by: Alpha; Ciba Speciality Chemicals; Credit Suisse; Givaudan-Roure; Novartis Pharmaceuticals; Schindler Lifts; Sika Finanz; Swiss Agency for Development & Cooperation; Swiss Re; UBS; Xstrata.

Progress With Some Current Projects

ABC-Ulwazi
This project, to which SSACI has committed R800‘000 in 2002, involves the use of community radio stations in training community-based tour-operators in twelve localities around the country. The project is off to a good start. The process of identifying the twelve community radio stations from across the country for participation in the project is currently under way. Each station will broadcast a series of programmes on aspects of the tourism industry, to complement contact training sessions for aspirant tour-operators. Research has been conducted into potential business opportunities, illustrative success stories and practical lessons learned from community-based tourism to date. This information will be incorporated into radio scripts that will be developed between December 2002 and February 2002. Production of the radio programmes will take place in March and April. Training of tour-operators will begin in April.

Association for the Physically Disabled
The contract between APD and SSACI calls for a total of R438‘000 to be spent on the training of twenty-five Soweto youths (able and disabled) as welders or caterers and in setting them up in their own small businesses. Selection of trainees was completed during December, all applicants having been carefully assessed in terms of their suitability for entrepreneurial work. A contract for the technical training has been negotiated with IETI, a non-profit training organisation that was recommended by the Department of Labour. Equipment for a workshop in Soweto has been ordered and will be installed in early January. Training is scheduled to begin in February 2002 and successful trainees should be in business by the end of 2002..

Furntrain
This project, which involved training 50 young people in skills relating to the furniture industry, produced quick results. By the end of November:

  • 28 youths had completed the full training programme and been placed in jobs with local furniture-manufacturing companies
  • 2 had completed their training and started their own micro-business producung garden furniture
  • 11 had left to take up jobs in the furniture industry that had been offered them before completing all their training (the temptation of an immediate income having proved too great to resist!)
  • 8 were still in training, with jobs lined up for them on completion of the programme
  • 6 had dropped out of the programme for personal reasons

The high standard of the training, and the value which prospective employers place upon it, was confirmed by an external evaluator who attended part of the training programme and interviwed the trainees and businessmen in the furniture industry. The success of this project prompted SSACI to approve a further grant of R800’000 to Furntrain in 2002 for the training of 100 young trainees. Special emphasis will be given to the development of micro-businesses by budding entrpreneurs who emerge from this group.

New Projects Getting Under Way

In December, SSACI undertook to support three new projects:

1. The training of eco-tour guides through the Midrand EcoCity Trust. This project will take ten young people from Ivory Park township in Midrand and, during 2002, develop them into fully-qualified tour guides specialising in eco-tours to the Wilderocke Ecological Training Centre and Midrand EcoCity. The trainees will set up their own registered tour company offering special-interest tours to local and overseas visitors, starting with delegates to the World Summit on Sustainable Development (WSSD) that is to be held in Gauteng in September 2002. The whole project will cost about R450’000. WSSD is an ongoing United Nations initiative, dealing with issues of sustainable development. It last met in Rio de Janeiro in 1992, attended by 120 heads of state. Over 30 000 delegates are expected to attend the 2002 conference in Gauteng. Government representatives will meet at the Sandton Conference Centre, NGOs at Gallagher Estate in Midrand and the private sector at Nasrec. With innumerable additional meetings taking place around the main summit, there will be many opportunities for local tour operators, especially those focusing on sites of ecological interest, to show delegates around.

2. The training of forty wilderness-therapy trail-guides by the National Peace Accord Initiative. This is a newly-recognised job-category in the health services sector which ´can also servicee the growing interest in "wilderness-experiences“ in the tourism industry. The overall objective of this project is, over two years, to train 40 youths – many of them formerly-militarised youths - from six provinces (Free State, Northern Cape, KZN, Eastern Cape, Western Cape and Mpumalanga) as wilderness-therapy trail-guides or assistant guides, according to standards developed by the University of Natal and registered with the Tourism and Hospitality SETA. Successful trainees will be registered with the South African Wilderness Therapy Institute and will be able to operate as accredited wilderness-therapy trail-guides. Trail sites have already been established in most provinces and more are expected to be developed in the next few years. Apart from the growing number of private tour groups seeking such trails, the Departments of Social Development and of Justice have included wilderness-therapy trails in their rehabilitation programmes for victims of abuse and young offenders, respectively. SSACI’s sponsorhip of this project will amount to R930’000 over two years.

3. The funding of twenty-five tertiary-level bursaries with a total value of R700‘000 through the Friends of Mosvold Hospital Trust. The aim of this project is to enable fifteen young people from the rural Ingwavuma district in northern KwaZulu-Natal to study approved health-sciences courses at tertiary level. The courses include pharmacy, physiotherapy, medical technology, occupational therapy, speech therapy, dental therapy and optometry. During their vacations, bursaried students will work at Mosvold Hospital, under the supervision of the Medical Superintendent, and will visit local schools to raise awareness amongst learners of career opportunities in the health services sector , stimulate them to achieve the grades needed for higher education and serve as role models and peer AIDS-educators. After graduation, the twenty-five newly-qualified health professionals will work at Mosvold Hospital or one of its satellite clinics for a period equal to that of their bursaries.

Focus on a Project: Siyavuka Lateral Improvement Foundation

The Siyavuka Lateral Improvement Foundation (SLIF) is the brainchild of Martin Lentswe Mathole, an award-winning young ceramic artist from Soweto who believes that South Africa has the talent to become a major player in the art world. SLIF was born in December 1998 when Martin and two other artists from the Fuba Arts Academy in Newtown, Johannesburg, decided to share their skills with unemployed youths who had an interest in ceramic arts but could not afford formal training.

While supporting themselves by selling their work commercially, Martin and his colleagues began running courses for aspiring potters. Small grants from the National Arts Council in 1999, Nedcor Community Development Fund in 2000 and Absa Foundation in 2001 kept the training programme alive and, gradually, it began to gain the attention of the wider community. In May 2001, Martin won a Recognition Award from the Rotary Club of Johannesburg for his initiative in youth development.

In September, Martin was invited to participate in a month-long workshop on ceramic design and marketing at the International Ceramic Centre in Skaelskor, Denmark. But the highlight of the year for SLIF was coming into contact with SSACI, which led to a grant of R366’000 to expand the training programme.

In terms of the grant agreement, SLIF will train 30 youths from Soweto as ceramic artists during 2002 Since signing the agreement in October this year, SLIF has moved from Fuba Centre into new premises at the Ipelegeng Community Centre in White City, Soweto, where a full-equipped studio and training room capable of accommodating all the students is being set up. Preliminary work has also been done on defining the training curriculum and preparing instructional materials. The trainees will be enrolled in December 2001 and their training will run from January to November 2002.

In the next edition of SSACI NEWS…

  • Lessons from a Survey of SMMEs in Soweto
  • Focus on a Project: The Youth Empowerment Network
  • What’s Happening with the National Poverty Alleviation Programme?


HomeAbout SSACIOur Funding ProgramSubmitting ProposalsSSACI NewsAnnual ReportsContact UsLinks

The Swiss-South African Co-operation Initiative strives to provide accurate, up-to-date information through this site but disclaims liability for any loss, damage or expense arising from the use of any information provided herein. If you note any inaccuracies, please contact us on +27 11 642 2110 or via any of the other methods listed on this site. Please click here for our contact page.
Web designed by Optix • Website Maintained by About IT