Importance of skills acquisition for South Africans in a challenging economy

Avatar photo
Vijaya Laxmi Tripura
  • Update Time : Sunday, August 13, 2023

The rising inflation rate and increasing cost of living have significantly affected the lives of many South Africans, leading to struggles in meeting monthly household expenses. Recent reports show that people have been making significant cutbacks on luxuries such as gym memberships, dining out, travel, and other non-essential spending.

Parents, especially those with multiple children, have shifted their kids to more affordable schools and reduced extracurricular activities. People are also opting for cheaper brands of food and other products, and domestic helpers are now employed on a part-time or ad hoc basis.

Individuals with capped salaries must become innovative to stretch their monthly income, and some are forced to develop side hustles to supplement their earnings, especially if they are parents or caregivers of elderly family members. Entrepreneurs are also facing the challenge of expanding their product or service offerings to increase profits in a cash-strapped consumer environment.

The economic pressures have sparked innovation, pushing people to consider business ventures they may not have considered a few years ago. This innovative mindset requires a new attitude, a keen eye for identifying opportunities in a challenging economy, and a focus on delivering affordable products and services to South Africans.

Despite existing international trade agreements, importing cheaper goods is not always feasible, given the instability and weakening of the rand/dollar exchange rate. To address this, there is a need to source, develop, and create local affordable products, which requires skills and resources. The impact of skills and education on economic development is crucial, providing individuals with the knowledge they need before venturing into income-generating endeavors.

In this stagnant and shrinking economy, the success of new business ventures depends on understanding the spending habits and priorities of South Africans. Proper research is vital for any business to identify potential pitfalls and ensure a successful outcome, even for self-employed entrepreneurs in the informal sector.

July 15 has been designated World Youth Skills Day by the UN General Assembly, celebrating the value of equipping young people with skills. This day holds significant importance for South Africa, considering the need for employment and increased incomes for its citizens. The capacity to develop knowledge and skills for employment or entrepreneurship is vital for the social upliftment of society, especially for the youth.

In an ever-evolving world, the acquisition of relevant skills is essential to eliminate barriers to entering the labor market. Continuous learning and staying up-to-date with changes in the work environment are crucial for employees and self-employed entrepreneurs, enabling them to meet the evolving demands of a consumer-based society and an unstable economy.

The South African government has taken steps to address skill development through the Skills Development Act, aiming to aid the unemployed and improve the skills of the employed. The Sector Education and Training Authority (Seta) plays a critical role in promoting learning programs and implementing skills initiatives. Seta’s commitment and long-term input can reduce the number of unskilled and unemployed South Africans.

A crucial step forward is to emphasize the value of skills acquisition and empower the youth with this information at every opportunity. This commitment to skills development can play a vital role in transforming the economy and creating a brighter future for all South Africans.

Avatar photo Vijaya Laxmi Tripura, a research-scholar, columnist and analyst is a Special Contributor to Blitz. She lives in Cape Town, South Africa.

Please Share This Post in Your Social Media

More News Of This Category
© All rights reserved © 2005-2024 BLiTZ
Design and Development winsarsoft