Pretoria - World Bank Private Sector Development Specialist, Dr Chunlin Zhang, says economic growth is the primary solution for unemployment in South Africa.
Zhang was speaking at the Economic Policy Dialogue on Entrepreneurship and Youth Unemployment in South Africa, which was hosted by the Department of Trade and Industry (dti) in Midrand on Tuesday.
The dialogue, attended by more than 100 stakeholders from youth organisations, the business community, NGOs and government institutions, was hosted by the dti to encourage dynamic debate on contemporary issues that impact the economy.
Zhang said issues of youth unemployment were not so different from the South African development challenges, and that the primary solution for high unemployment was higher sustainable and inclusive economic growth.
“Higher economic growth has more potential in job creation and employment. While this can be achieved, growth cannot be at the expense of sustainability and the environment,” Zhang said.
He cited education and training as short-term solutions to unemployment and said South Africa’s most urgent challenge was the 56% unemployment rate of youth in the 15-34 years age group.
He said entrepreneurial activities could be a spin-off from big businesses and Foreign Direct Investment or be developed within an existing business other than education and training.
“South Africa boasts a relatively favourable investment climate in general,” said Zhang.
Chief Executive Officer of Osiba Management, Septi Bukula, said there was an urgent need to create sustainable jobs for the youth.
“The great things South Africa needs the most is a focused national programme to foster research and development based entrepreneurship that will help post graduate research students to commercialise their research,” Bukula said.
Since 2011, the Economic Policy Dialogue, hosted by the dti, acts as a key platform to trigger discussions in economic policy.
Through these sessions, numerous specialists and opinion makers have been brought together in a unique environment to foster robust dialogue on important economic topics. – SAnews.gov.za
