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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
Employed Unemployed Not economically active
36% 35% 29%
South Africa: 17.1 Million Youth Population
Unemployed: 6.1 Million
(STATS SA Q1 2018)
Age 18-34
Demand Supply
6.1 Million
≠
Industrial concentration
Automation
4th industrial skills
Spatial inequality
Knowledge Hubsapplied learning
-Agri-tech, digital training, import of local & global technology and best practice
BRAZILIAN & ETHIOPIAN AGRI & INNOVATION
Seeding knowledgeinto local communities,new modern farming cohortsGLOBAL BEST PRACTICE
They were where we are today.
Developing markets
Low income per capita
Low growth
Fragile
COSTA RICA-
major export bananas and coffee to processors
ESTONIA-
Origin of Skype
CHILE-
Financial services export, salmon, fruit wine, copper, tourism (US, China, Brazil, Europe),
25yearsago
87%Do not pay tax
o 14 million registered for tax
o 50% are below tax paying threshold
o 7 million paying tax
IN SOUTH AFRICA
3%
Contribute 80% of personal income tax
IN SOUTH AFRICA
1%
480 000 contribute to 61% of personal income tax
Source: Stats SA - 2016
Gauteng: 35% of countries economic output
PROVINCIAL CONTRIBUTION TO THE NATIONAL ECONOMY 2016
• Domesticate animals
• Transport, physical effort
• Food productionAgrarian
• Railroads• Steam engine and mechanical production
1st Industrial revolution
1760-1840
• Electricity
• Assembly line early 20th century
2nd Industrial revolution
Late 19th century
• Digital-mainframe computers
• Semi conductors
• Personal computing/Internet (1990s)
3rd Industrial revolution
1960’s
• Nanotech, gene sequencing, Internet of things, AI
4th Industrial revolution
Physical
Autonomous vehicles
3D printing/4D printing
adapting to conditions
Advanced robotics
New ‘smart’ materials
Digital
Internet of things
Sensors everywhere
blockchain
Biological
Genome sequencing
Personalisedhealthcare/
bioprinting 3D printing of
tissue
Super humans
Modify plants/animals,
write DNA
FourthIndustrial Revolution
0
10
20
30
40
50
60
70
80
90
100
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Internet diffusion Africa
Egypt, Arab Rep.
Ghana
Kenya
Korea, Rep.
Morocco
Netherlands
Nigeria
South Africa
United States
Tunisia
Togo
Japan
0
20
40
60
80
100
120
140
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Mobile subscriber diffusion Africa Congo, Dem. Rep.
Egypt, Arab Rep.
Ghana
Japan
Kenya
Netherlands
South Africa
Togo
Tunisia
United States
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)
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 ASIAOxford economics JUNE 2016
Economic benefits of mobile internet
Aptitude for Achievement
Ap
titu
de
fo
rST
EM
Top Global 3 Management Consulting firm (European MBA applicants)
Top Global 3 Management Consulting firm (European MBA applicants)
Ap
titu
de
fo
r In
no
vati
on
Aptitude for Achievement
Ap
titu
de
for
Entr
ep
ren
eurs
hip
Aptitude for Achievement
Top Global 3 Management Consulting firm (European MBA applicants)
The human desire for status and community position
Zambia- hairstylists and barbers recruited by a public healthorganization to sell female condoms in their shops were randomlyassigned to one of four groups receiving different awards based oncondom sales.
People in the control group received no rewards, while people inthe 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 apublicly displayed chart to represent each condom sale.
The “star treatment” publicised the stylist’s contribution to thehealth of his or her community.
After 1 year, the star treatment sold twice as many condoms ashairdressers in any other group. For this group of individuals, themarginal utility of public recognition was higher than the marginalutility of money.
Despite tech advancements, the quality of relationships with customers, employees and suppliers-single best predictor of long term success Charlie Brown (2016)
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
YES builds a CV and reference letter on behalf of the corporate for every YESSER
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
X3 Double
Did you know a CV and reference letter?
Calculating your YES target
1.5% of NPAT
R 55 000= YES
headcount target
3 Year Average South African NPAT
Higher of :
• 1.5% of NPATOR• 1.5% of South African HeadcountOR • Minimum of jobs table (refer to next
slide)
Achieve YES headcount target = 1 x B-BBEE level up
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
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
50
500
199
5
19
96
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
MSCI World Index & Index Earnings (1995=100)
MSCI World Index
Index Earnings
World
0.81
Intrinsic worth follows earnings power
Adrian Saville & Seleho Tsatsi,, 2015 Citadel Investment Services
Worldwide economy drives earnings
-60,0
-50,0
-40,0
-30,0
-20,0
-10,0
0,0
10,0
20,0
30,0
40,0
50,0
-3
-2
-1
0
1
2
3
4
5
6
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
GDP Growth (% p.a.) & Growth In Real Corporate Earnings (% p.a.): 1998-2015
GDP Growth (%)
Growth In Company Earnings (Real) (%)
Economy World CHN DEU FRA IND ITA SGP USA ZAF
Correlation 0.66 0.62 0.61 0.81 0.52 0.43 0.90 0.65 0.71
"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
There are those who live with the freedom of choiceAnd there those who have none
There are those who doAnd there are those who do not
And you, where do you live? And what will you do?
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