3.2 Background to the Expanded Public Works Programme
3.2.2. Unemployment in South Africa
In 1999, unemployment and resultant poverty were identified as the most significant threats to South Africa’s new democracy. Approximately 40% of working-age people were unemployed, with a strong weighting amongst the youth (NDPW EPWP Five- Year Report, 2009). In September 2003 4.6 million people were unemployed in terms of the strict definition and 8.3 million in terms of the broad definition. In the 16- 34 age groups, 70% of the unemployed had never worked, while 59% of all unemployed people had never worked (Mahlatsi, 2007).
Kingdon and Knight (2005) note that according to the broad definition of unemployment 41.2% of Africans were unemployed in 2004, of whom 51.4% were in the 16-24 years age category and 35.3% were in the 25-35 years age group, which represents the largest portion of the economically active population. Furthermore, the finding that 38.7% of unemployed people had no education, whilst 42.5% had only primary education was a matter for grave concern. Further analysis indicated that African people, especially women and those living in rural areas suffer catastrophically high unemployment rates. The Poverty and Inequality Report (1998:13) emphasizes the strong link between poverty and unemployment.
Swanepoel and De Beer (2006:6) assert that “unemployment is both a cause and a result of the poverty situations in which people find themselves”.
Additional factors impacting on unemployment levels were:
a) the country’s exposure to the effects of the rapid globalization of capital that occurred simultaneously with the advent of democracy, and
b) the fact that previous education practices had left most working people either under-skilled or unskilled (NDPW EPWP Five-Year Report, 2009:21).
The most important socio-economic challenges faced by government after the second democratic elections were:
a) to reduce unemployment;
b) to alleviate poverty;
c) to strengthen the general skills base; and
d) to improve social services (NDPW EPWP Five-Year Report, 2009:21).
Access to quality employment is an essential means of achieving sustainable livelihoods, which in turn reduces poverty and inequality (Black, Calitz and Steenekamp, 2004). Many poor people are either unemployed, or have low quality jobs. The challenge, therefore, is not only to create jobs, but to create better quality jobs (Second economy interventions: www.sarpn.org.za). Loots (1997) points out that an effective, successful process of poverty eradication is only achievable through co-ordinated government strategies and action.
In response to the above scenario, government invested billions in infrastructure delivery (DPW EPWP Five Year Report, 2009), notably in the construction and property sectors, which had the potential to create numerous jobs. The province of KwaZulu-Natal also adopted a programme based on national priorities that focuses on poverty eradication. The provincial programme, as outlined by the Premier of KwaZulu-Natal prioritizes the following:
· Rural development and agrarian reform,
· Education and skills for all,
· Creating decent work and ensuring economic growth,
· Nation building and good governance, and
· Building social and economic infrastructure (Premier’s Budget Speech, 2010).
The DPW Budget Speech (2010) notes that the KZN Department of Public Works contributes to poverty alleviation and job creation in that it:
· Enables people to build a better life. This is achieved through labour-intensive production;
· Significantly helps to expand public works programmes linked to the expansion of infrastructure to support social needs and foster economic development;
· Contributes to the National Youth Service (NYS) programme and increases the number of youth learnerships so as to build a skills base and render more young people employable;
· Implements the EPWP so that people can access job opportunities while working for the public good;
· Implements programmes that target skills development, training and the employment of women, youth, the disabled and non-statutory military veterans; and
· Focuses on the extent to which government and social priorities are met in procurement processes.
3.2.2.1. Programmes in the Department of Public Works to address economic development and poverty alleviation
The Department of Public Works has initiated the following programmes to contribute to economic development, while pushing back the frontiers of poverty in KwaZulu- Natal (DPW Annual Report, 2009):
· The Expanded Public Works Programme;
· The National Youth Service (NYS);
· The Masakhe Emerging Contractor Development Programme;
· Bursary and internship programmes;
· Provincial and District Contractor Forums;
· Izandla Ziyagezana;
· The Property Incubator Programme; and
· The Fixed Asset Register (DPW Annual Report, 2009).
The above programmes demonstrate the Department’s commitment to empower priority groups, namely youth, women and people living with disabilities (KwaZulu- Natal Top Business, 2010). Each of these programmes will be discussed in detail below.
The Expanded Public Works Programme
Figure 3.1 demonstrates the role of the EPWP in addressing unemployment.
Figure 3.1: EPWP’s role in addressing unemployment
Source: EPWP Consolidated Programme Overview and Logical Framework (2004:14).
The EPWP endorses the use of labour-intensive methods of construction (LIC) and skills development. It aims to reduce unemployment by stimulating economic growth through improved skills levels and providing an enabling environment for industry to flourish (www.kznworks.gov.za).
The DPW adopted the EPWPs guidelines in all its projects in order to increase labour absorption. The Department will continue the massification of the EPWP through construction projects, ranging from building and maintenance to renovations and the rehabilitation of unused government buildings and other properties. The EPWP is reported to have surpassed its employment creation targets for people living below the poverty line (KwaZulu-Natal Top Business, 2010). This is interesting to note since the Sunday Times (2007) reported that ‘the research shows that Public Works Projects are no panacea for poverty’ (Refer to Annexure N).
Figure 3.2 depicts an EPWP project officially opened by the MEC in 2011 and currently benefiting the community, as it is used as a DPW Sub-District Office in the North Coast Region, uMkhanyakude.
Figure 3.2: The UMkhanyakude sub-district office at Mtubatuba
Source: DPW Communications (2010).
Table 3.1 provides a profile of this project.
Table 3.1: EPWP project profile Subject Description
Project Name uMkhanyakude Sub-District Office at Mtubatuba Scope of
Works
Construction of New Offices, Rehabilitation of existing facilities Project
Status
Completed on 10 February 2011.
Project Aim The aim of the project was to construct new facilities and rehabilitate existing facilities at the uMkhanyakude Sub-District Office at
Mtubatuba in order to improve the capacity and level of service delivery to clients within the uMkhanyakude District Municipality.
Consultant Team
Architect – Archidio Architects
Quantity Surveyor – KCL Quantity Surveyors Electrical Engineer – Motla Engineers
Mechanical Engineers – Parsons & Lumpson Civil/Structural Engineers – AVP Engineers Contractor Hlanganisani Construction – 7 GB
Sub –
Contractors
Electrical – SMG Electrical Air Conditioning – Image Air Glazing – AGM Aluminium Shop Front – Glass Carports – Cool Awnings Flooring – Leicester Floor
Metal Work – Lenkru Innovations Joinery – Mel wood Kitchens Gutters – Red Dot Gutters
Fencing – Security Fencing & Alarms cc Blinds – Sunshine Blinds
Roller Shutter Doors – Zululand Roller Shutter Doors Paving –Zulpave
Contract Details
· The project commenced on 1 April 2009
· The planned project was 1 October 2010
· The contract was extended to 28 February 2011
· Retention period ending 10 Feb 2012
· Project Tender Amount : R 20,885,000.00
· Adjusted Approved Contract Amount : R 24,651,837.19
· Consultant Fees : R 4,048,162
· Approved Total Project Budget : R 28,700,000 Source: Adapted from DPW: North Coast Reports.
National Youth Service Programme
The National Youth Service (NYS) programme is a sub-programme of the EPWP infrastructure sector and focuses on the maintenance of government facilities. The targeted groups engage in a formal, accredited skills programme consisting of four months of theory and eight months of practical, active participation on a construction site. Thereafter, they are capacitated with entrepreneurial skills (www.kznworks.gov.za). The programme requires the employment of both men and women. Figure 3.3 shows NYS beneficiaries on site.
Figure 3.3: The NYS
Masakhe Emerging Contractor Development Programme
The aim of the Masakhe Emerging Contractor Development Programme (ECDP) is to empower previously-disadvantaged contractors as well as to increase the number of contractors in the departmental target groups and the objectives of the programme are to create:
· an environment that is conducive to growth through access to contracts and training;
· a credible database of targeted beneficiaries;
· a development mechanism that allows for progressive grading and mentorship; and
· enhanced partnerships (www.kznworks.gov.za).
The ECDP trains contractors in entrepreneurship; creates a protected environment for emerging contractors; and facilitates skills development. The Department works very closely with contractors until they are able to cope on their own. According to KwaZulu-Natal Top Business (2010), the target market includes the following:
· Unemployed women and youth with formal qualifications;
· Experienced women and youth with no formal qualifications; and
· Women and youth who indicate interest.
Bursary and internship programmes
The Department has bursary and internship programmes for youth which pay for tuition and accommodation. It has awarded bursaries to 153 students studying Engineering, Construction Project Management, Architecture, Quantity Surveying and Property Valuation. Seventy three (47%) of these students are female. The bursary is awarded to students who have passed their first year at a tertiary institution. Learners who obtain excellent Matric results in Science and Mathematics also benefit. Youth from previously-disadvantaged communities are the main beneficiaries of these programmes (KwaZulu-Natal Top Business, 2010).
Provincial and District Contractor Forums
Provincial and District Contractor Forums have been established to strengthen consultative processes and disseminate information on business opportunities.
Izandla Ziyagezana Programme
The Izandla Ziyagezana Programme is a departmental initiative aimed at poverty alleviation and job creation. It uses labour-intensive methods to clear vacant provincial land. The main objectives of the programme are to:
· provide job creation opportunities to the poorest of the poor households, with special emphasis on women and youth;
· empower women and youth by providing basic training and life skills;
· provide a cost-effective system of maintaining vacant sites owned by the province pending the future use or disposal thereof ; and
· instil a sense of pride and ownership in the community through maintaining a safe and clean environment (DPW Works@Work).
Figure 3.4 shows an Izandla Ziyagezana (IZ) beneficiary on site.
Figure 3.4: IZ beneficiary on site
Property Incubator Programme
The aim of the Property Incubator Programme (PIP) is to identify, develop, and mentor youth and women in the property business. The project has the following key objectives:
· To facilitate the process of skills transfer from established to emerging markets in the property sector;
· To provide a platform for the development of a holistic approach to the property industry; and
· To contribute to the generation of skills within the property sector (KwaZulu- Natal Top Business, 2010).
Selected individuals are trained on various aspects of property management, including facilities management, property inspection and assessment, acquisition and disposal of land.