THE continual inflation rate and escalating cost of living have impacted the lives of many South Africans, and recent reports have indicated that South Africans are still struggling to meet their monthly household expenses.
The current data from the Old Mutual Savings and Investment Monitor survey has revealed that people have cut back on gym contracts, dining out, travel and other luxuries. Some parents with more than two children have shifted their children to cheaper schools and cut back on extramural activities.
In addition, people are purchasing and consuming cheaper brands of foods and other products and domestic helpers are now employed on a part-time and ad hoc basis.
The individual that earns a capped salary has to be innovative to stretch the monthly capacity of their income and some are forced to focus on developing side hustles amidst a busy schedule which is demanding as it is, especially if one is parenting and/or a care-giver of a frail and aged parent.
Entrepreneurs, too, find the need to reinvent themselves and expand their product or service base to increase profits. This is challenging in a period where consumers are cash-strapped and are forced to be thrifty.
The Old Mutual Savings and Investment Monitor survey confirmed in June 2023 that South Africans are rarely spending on luxuries and are prioritising the necessary expenditures.
These economic pressures have forced people to be innovative and possibly engage in business risks they may not have considered a few years back.
Innovation requires a new mindset, a new attitude and an eye to identifying the opportunities within a challenged economy. There seems to be a need to service South Africans to deliver consumables and other utilities at affordable prices.
Despite the liberal international trade agreements that we have in place, the importation of cheaper goods is not always feasible. The unstable and weakening position of the rand/dollar exchange rate places additional pressure on the import-export market.
The need to source, develop and create local affordable products and consumables is possible, but this requires skills and resources. The impact of skills and education is essential for the economic development of any society. It will arm people with the appropriate knowledge before they venture into various income generating endeavours.
We could also argue that within an economy that has been stagnating and shrinking over the past few years, new business ventures’ success depends on the type of spending habits and priorities South Africans currently have. Some business analysts point out that an entire research endeavour of potential customers and suppliers is vital to the success of any business and that this is an important learning curve as it can identify where possible shortfalls may lie within the potential company. Even self- employed entrepreneurs in the informal sector require appropriate skills to ensure a successful outcome.
In 2014, the UN General Assembly declared July 15 as World Youth Skills Day to celebrate the value of equipping young people with skills. The day passed us by in South Africa, despite the dire need for South Africans to be employed and to increase their incomes.
This day should be paramount in South Africa, so we become aware of the value of attaining skills. The capacity to develop and build knowledge to become employed within the informal or formal economy or for entrepreneurship is vital to the social upliftment of our society.
The need for our youth to become educated, knowledgeable and develop a niche skill should be a priority. South Africa’s youth need to know what it will take to prepare for a transformative future. Skills and education attained has to be agile and adaptable to a market economy that is localised and influenced by current socio-economic challenges and globalised economic influences.
The acquisition of appropriate and applicable skills within the context of South Africa can eliminate the barriers to entering the labour market. Skills acquired need to be relevant and suitable for the economy’s requisites. In many sectors, such as informational technology, there is a need for individuals to continually pursue innovation and training.
The Fourth Industrial Revolution is also upon us and there are great benefits to the incorporation of artificial intelligence (AI), robotics, the Internet of Things (IoT), Web3, Blockchain, 3D printing, genetic engineering, quantum computing and other technologies.
Many products are being manufactured and developed with these transformative technologies, which can also disrupt various labour sectors, and the divisions of low-skilled employment versus highly skilled employment can become deeper, resulting in greater social inequality. The key is to always ensure that one is equipped with appropriate skills which are relevant and timeous in an ever-evolving world.
The dominant perception that there is a time frame in one’s life to study or acquire skills has to change. There is a demand for people of all ages, classes and gender to continually be adaptive and be up-to-date with changes within the work environment. Employees and self-employed entrepreneurs must always ensure that they are equipped to meet the ever-evolving demands within a consumer-based society and an unstable economy.
Chapter 3, section 10 of the Constitution, the Skills Development Act, 1998, aims to aid skill development to the unemployed and also improve the skills of those who are employed. The Sector Education and Training Authority (Seta) should look at measures to educate South Africans about transformational technology of the 4th Industrial Revolution.
Ideally, they should develop a skills plan, promote learning programmes, and implement the skills initiatives. The need for their commitment and long-term input can minimise the number of South Africans that are unskilled and unemployed. A possible way forward would be for South Africans to continually highlight the value that the acquisition of skills can bring and empower the youth with this information at every opportunity.
Dr Sheetal Bhoola has a PhD and two Master’s degrees in the social sciences. She is a lecturer, researcher and a freelance writer. Bhoola has been the recipient of awards and academic scholarships throughout her career. Visit www. sheetalbhoola.com.