Staff Reporter
The COVID-19 pandemic could result in more youths losing their jobs while those running small businesses could be forced to close due to low business, according to an official from Coca-Cola Beverages South Africa (CCBSA).
CCBSA public affairs, communication and sustainability director Nozicelo Ngcobo says the pandemic is likely to have a sustained effect on the economy, already dogged by low production and high unemployment particularly among the youth.
Ngcobo said this when she visited members of the Bizniz in A Box initiative which was piloted in Matjhabeng Local Municipality in 2015 in partnership with the Free State government and the Small Enterprise Finance Agency.
“The pandemic has had a devastating and far reaching negative effect on the South African economy,” she said.
Ngcobo said youth unemployment is particularly high among those aged 15-34 years old as two-thirds of those in that group are jobless across the country.
“The impact will likely be more severe as in many other developing economies, as the country was already in a recession and saw its highest unemployment levels in almost 20 years,” she pointed out.
During the visit, Ngcobo handed over deep fryers and ice cream machines to the youths to allow them to diversify and grow their businesses.
CCBSA said in a statement the COVID-19 pandemic has had a negative effect on the economy and mostly on the young entrepreneurs who are in business trying to make ends meet.
The Matjhabeng pilot project started with 22 youths and only seven remain.
The others, according to CCBSA, have pursued other opportunities.
The Bizniz in A Box initiative is part of the company’s projects aimed at training the youth in business through its Youth Entrepreneurship Programme.
CCBSA also provides refresher courses in collaboration with the University of the Free State, to allow the youths to sharpen their business skills and undergo mentorship.
“CCBSA has worked hand in hand with the University of the Free State to empower these seven young entrepreneurs who have in turn created 14 additional jobs, and with continued support, we hope to see more growth and success from this group,” the company said.
On Tuesday, Statistics South Africa said gross domestic product fell by just over 16 percent between the first and the second quarter of 2020, giving an annualised growth rate of minus-51 percent.
Nearly all industries experienced a massive drop in output in the second quarter covering the period of April to June when the country was under tight lockdown restrictions.
Construction was the biggest loser with a contraction of 76.6 percent.
Manufacturing output was down 74.9 percent as a result of work stoppages and lower demand for steel.
The ban on alcohol sales also had a heavy impact on the food and beverage division of manufacturing.
Mining fell by 73.1 percent as most operations were closed during that period.
Agriculture is the only sector that grew and it recorded a positive 15.1 percent.
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