PULLING IT ALL TOGETHER

limitless opportunities

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

THOSE WHO LIVE IN THE LIGHT

EXPANDING THE UNIVERSE OF OPPORTUNITY

0 20 40 60 80 > 100No Data

RANK IN THE ECONOMIC COMPLEXITY INDEX 2016

New placesNew spacesNew facesNew industriesNew career pathways

ESTONIA CHILE

COSTA RICA

WHAT DO THESE COUNTRIES HAVE IN COMMON?

ETHIOPIA

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

South Africa:

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

IN SOUTH AFRICA

Many live without the benefits of

even the2nd industrial

revolution

49%

of people in South Africa live below a poverty line of

R524 per month

BANTUSTANS OF APARTHEID TRADITIONAL LANDS OF TODAY

47.2 % unemployment

MOONSHOTS

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

TANZANIA

UGANDA

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

ONE YEAR WORK EXPERIENCE BLACK YOUTH 18-35

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?

TO ENABLE DISRUPTION WE NEED SHIFTS IN RELATIONSHIP STRUCTURES

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

YES has three delivery channels

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

Value chain opportunities

Value

ChainSMME Market

Access

Venture

creation

Financing value

chains

Tembisa Hub

Economic node

Focused on:- Enterprise development

- Education

- Economic activity

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

WITHOUT A COUNTRYYOU CAN’T HAVE A

COMPANY

MOONSHOTS

"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?

CONNECT, CHANGE A LIFE& JOIN THE MOVEMENT

www.yes4youth.co.za