PULLING IT ALL TOGETHER. limitless opportunities

Transcription

1 PULLING IT ALL TOGETHER limitless opportunities

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4 South Africa: 17.1 Million Youth Population Age Unemployed: 6.1 Million 36% 35% 29% Employed Unemployed Not economically active FAILED EDUCATION SYSTEM NEET DHET-80 BILLION 56% NO MATRIC GINI COEFFECIENT 0.65 Highest in the world SOCIETAL BREAKDOWN- DRUGS, VIOLENCE, PREGNANCY- Social fabric DEMOGRAPHIC DIVIDEND NOT REALISED (STATS SA Q1 2018)

5 Demand Supply Industrial concentration Automation Spatial inequality 4 th industrial skills 6.1 Million

6 THOSE WHO LIVE IN THE LIGHT

7 EXPANDING THE UNIVERSE OF OPPORTUNITY

8 RANK IN THE ECONOMIC COMPLEXITY INDEX 2016 No Data > 100

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10 New places New spaces New faces New industries New career pathways

11 ESTONIA CHILE ETHIOPIA COSTA RICA WHAT DO THESE COUNTRIES HAVE IN COMMON?

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13 Knowledge Hubs applied learning Seeding knowledge into local communities, new modern farming cohorts GLOBAL BEST PRACTICE -Agri-tech, digital training, import of local & global technology and best practice BRAZILIAN & ETHIOPIAN AGRI & INNOVATION

14 25 years ago They were where we are today. Developing markets Low income per capita Low growth Fragile COSTA RICAmajor export bananas and coffee to processors Origin of Skype ESTONIA- CHILE- Financial services export, salmon, fruit wine, copper, tourism (US, China, Brazil, Europe),

15 South Africa:

16 IN SOUTH AFRICA 87% Do not pay tax o o o 14 million registered for tax 50% are below tax paying threshold 7 million paying tax

17 IN SOUTH AFRICA 3% 1% Contribute 80% of personal income tax contribute to 61% of personal income tax

18 PROVINCIAL CONTRIBUTION TO THE NATIONAL ECONOMY 2016 Gauteng: 35% of countries economic output Source: Stats SA

19 Agrarian 1 st Industrial revolution nd Industrial revolution Late 19 th century 3 rd Industrial revolution 1960 s 4 th Industrial revolution Domesticate animals Transport, physical effort Food production Railroads Steam engine and mechanical production Electricity Assembly line early 20 th century Digital-mainframe computers Semi conductors Personal computing/internet (1990s) Nanotech, gene sequencing, Internet of things, AI

20 Physical Digital Biological Fourth Industrial Revolution Autonomous vehicles Internet of things Genome sequencing 3D printing/4d printing adapting to conditions Sensors everywhere Personalised healthcare/ bioprinting 3D printing of tissue Advanced robotics blockchain Super humans New smart materials Modify plants/animals, write DNA

21 IN SOUTH AFRICA Many live without the benefits of even the 2 nd industrial revolution

22 49% of people in South Africa live below a poverty line of R524 per month

23 BANTUSTANS OF APARTHEID TRADITIONAL LANDS OF TODAY 47.2 % unemployment

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31 100 Internet diffusion Africa 90 Egypt, Arab Rep. 80 Ghana Kenya 70 Korea, Rep. 60 Morocco Netherlands 50 Nigeria 40 South Africa United States 30 Tunisia 20 Togo Japan

32 Mobile subscriber diffusion Africa Congo, Dem. Rep. Egypt, Arab Rep. Ghana Japan 80 Kenya Netherlands 60 South Africa Togo 40 Tunisia United States

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36 TANZANIA

37 UGANDA

38 In developing countries 10 mobile phones per 100 people increases GDP per capita growth by up to 1.2 percentage points. Waverman et al (2005)

39 Economic benefits of mobile internet Each one % point increase in the penetration rate is forecast to add an extra US $1.5 billion to regional GDP in 2020 ONE MILLION OPPORTUNITIES: THE IMPACT OF MOBILE INTERNET ON THE ECONOMY OF SOUTHEAST ASIA Oxford economics JUNE 2016

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41 Aptitude for STEM Aptitude for Achievement Top Global 3 Management Consulting firm (European MBA applicants)

42 Aptitude for Innovation Aptitude for Achievement Top Global 3 Management Consulting firm (European MBA applicants)

43 Aptitude for Entrepreneurship Aptitude for Achievement Top Global 3 Management Consulting firm (European MBA applicants)

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45 The human desire for status and community position Zambia- hairstylists and barbers recruited by a public health organization to sell female condoms in their shops were randomly assigned to one of four groups receiving different awards based on condom sales. People in the control group received no rewards, while people in the treatment groups received one of the following: 90 percent margin on condom sales; 10 percent margin on condom sales; a nonfinancial reward in the form of stars stamped on a publicly displayed chart to represent each condom sale. The star treatment publicised the stylist s contribution to the health of his or her community. After 1 year, the star treatment sold twice as many condoms as hairdressers in any other group. For this group of individuals, the marginal utility of public recognition was higher than the marginal utility of money.

46 Despite tech advancements, the quality of relationships with customers, employees and suppliers-single best predictor of long term success Charlie Brown (2016)

47 STORYTELLING Brazil, access to the TV Globo network dominated by soap operas with independent female characters with few, or even no children has been linked to the country s rapid drop in fertility. Viewing the soap operas had an effect equal to 1.6 years of additional education India, access to cable television reduced fertility and son preference and increased women s autonomy

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49 ONE YEAR WORK EXPERIENCE BLACK YOUTH 18-35

50 YES builds a CV and reference letter on behalf of the corporate for every YESSER Did you know a CV and reference letter? X3 Double A young person is three times more likely to be called back with a CV/ reference letter The reference letter and CV de-risking effect is double the likelihood of a job for women

51 TO ENABLE DISRUPTION WE NEED SHIFTS IN RELATIONSHIP STRUCTURES

52 Calculating your YES target 1.5% of NPAT R = YES headcount target Higher of : 1.5% of NPAT OR 1.5% of South African Headcount OR Minimum of jobs table (refer to next slide) 3 Year Average South African NPAT Achieve YES headcount target = 1 x B-BBEE level up

53 YES has three delivery channels

54 1% of firms in Europe are over 250 employees The enabling environment for sustainable enterprises in South Africa / International Labour Office, Enterprises Department. - Geneva: ILO, 2016

55 91% of firms in Europe are 1 to 8 employees The enabling environment for sustainable enterprises in South Africa / International Labour Office, Enterprises Department. - Geneva: ILO, 2016

56 Value chain opportunities Financing value chains Value Chain Market Access Venture creation SMME

57 Tembisa Hub Economic node Focused on: - Enterprise development - Education - Economic activity

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60 Intrinsic worth follows earnings power 500 MSCI World Index & Index Earnings (1995=100) World 0.81 MSCI World Index Index Earnings 50 Adrian Saville & Seleho Tsatsi,, 2015 Citadel Investment Services

61 Worldwide economy drives earnings GDP Growth (% p.a.) & Growth In Real Corporate Earnings (% p.a.): GDP Growth (%) Growth In Company Earnings (Real) (%) Economy World CHN DEU FRA IND ITA SGP USA ZAF Correlation ,0 40,0 30,0 20,0 10,0 0,0-10,0-20,0-30,0-40,0-50,0-60,0

62 WITHOUT A COUNTRY YOU CAN T HAVE A COMPANY

63 MOONSHOTS

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65 "Our most prosperous modern societies are wiser, not because their citizens are individually brilliant, but because these societies hold a diversity of knowhow and because they are able to recombine it to create a larger variety of smarter and better products." Ricardo Hausmann, Cesar Hidalgo, Sebastian Bustos

66 There are those who live with the freedom of choice And there those who have none There are those who do And there are those who do not And you, where do you live? And what will you do?

67 CONNECT, CHANGE A LIFE & JOIN THE MOVEMENT