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Phathu Luvhengo | 4 April 2024

Employment and labour minister Thulas Nxesi says his department will allocate R23bn to the Unemployment Insurance (UIF) labour activation programme (LAP).

Nxesi announced the LAP programme on Thursday, which provides training for employment and entrepreneurship programmes. 

The programme will be launched at the Nasrec Expo Centre in Gauteng on Saturday with the provincial government and will be rolled out to other provinces in April. 

He said after much consultation and contemplation they have decided to invest in partnerships with the private sector to create thousands of employment opportunities.

“The sectors and industries that will contribute to the creation of these opportunities include economic growth and in-demand sectors such as agriculture, ICT, construction, engineering, manufacturing, education, transport and mining.

“An amount of R23.8bn will be allocated to implement this plan. Opportunities will run between 12 and 36 months.

“The money invested in the plan will be recouped by the UIF through contributions and revenue generated from investments as has been the sustainability model of the fund.”

Nxesi said strides have been made by the government through various interventions, including initiatives and programmes by government departments undertaken with partners in the private sector through labour activation programmes. 

“Key to the success of our collaboration with the private sector has been the UIF, which continues to fund labour activation programmes through the collection of contributions from employers and employees and revenue generated from investments to contribute to alleviation of poverty and unemployment,” he said.

The LAP programme is expected to enhance the employability of unemployed people through training enabling entrepreneurship, enterprise development, preserving jobs through the Commission for Conciliation, Mediation and Arbitration and Productivity South Africa and collaborating between departments and entities to grow jobs, skills training and enterprise creation.

Nationally, 333 recommended projects will provide training, small enterprise support and employment opportunities to 704,000 people.

The programme will be launched over the coming weeks, starting with 55 projects in phase 1 for Gauteng on Saturday. 

The department, with the UIF, will partner with the provincial government’s Nasi Ispani project to ensure the government maximises the effect of its spending by pooling resources and eliminating duplication.

Phase 2 will start on April 12.

He said collaboration with the provinces will assist in matching projects, recruitment and funding, build partnerships and reduce duplication.

“Projects will be broken down into districts to ensure an even spread in Gauteng and then the other provinces.”

Opportunities are to be created in 22 sectors.

‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.


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