Momentum explores elevating CSI through collaboration

In a move towards greater impact from corporate social investment (CSI), the Momentum Group Foundation has embarked on a strategic approach challenging the CSI status quo. Recognising that traditional approaches to youth unemployment were not yielding the desired outcomes, the company’s self-reflection and exploration of collaboration to deliver change mark essential first steps towards more integrated CSI. 

Companies are far more likely to talk up their social impact efforts in the name of marketing and brand development than they are to acknowledge the potential limited return on CSI. That is why it is refreshing – and valuable – when companies are willing to undertake critical examinations of their initiatives and share their frustrations about the limited reach these programmes may have. This is the case for the Momentum Group Foundation, which found that its youth unemployment CSI efforts are unlikely to realise the real impact that South Africa so sorely needs. At least not alone.  

Momentum Group CSI Manager Tshego Bokaba says: “We can see that real, lasting change requires more than individual corporate efforts. If we want to move the needle on youth unemployment we are going to have to take a collective approach, one where multiple stakeholders pool their resources, expertise and insights to tackle the problem.” 

And the problem is a significant one. South Africa has the unenviable status of the second-highest youth unemployment rate in the world. Over 60% of young people aged 15 to 24 are unemployed. The economic and social implications of this crisis are far-reaching, affecting not just individuals but the fabric of South African society. The need for effective interventions cannot be overstated.  

Momentum’s evolving youth unemployment interventions  

The Momentum Group has framed its CSI initiatives around the vision of a thriving economy that benefits, and is fuelled by, the country’s youth. Its initial research identified unemployment as one of the critical barriers to achieving equality. In 2017, the Momentum Group Foundation reviewed its strategic focus on youth empowerment through job creation, skills development and fostering the spirit of entrepreneurship in young people.  

The Foundation partnered with organisations experienced in working with youth, targeting sectors with higher employment probabilities, to train and place young people in employment. At the outset, skills development was the top priority, with the strategy focused on three principal areas: personal skills, technical skills and employability skills.  

Early lessons revealed that programme success required more job readiness, practical experience and careful recruitment. It became apparent that industry-specific skills and the relevance of those skills to market demands were crucial. Participants were also found to need financial support to ensure they were able to complete the programme. 

The Foundation’s strategy has evolved in recent years, shifting the focus from skills development and job readiness to job placement.  

Recognising that employment needs to be generated on a far larger scale than any single sector can provide, the Foundation increased its emphasis on entrepreneurship, acknowledging that young people would have to become job creators themselves to survive the job losses of a shrinking economy. Including people with disabilities and focusing on gender equality – ensuring greater participation of women and students from rural communities – became key programme priorities.  

Since the adoption of the youth employment strategy in 2019, the Foundation has reached over 50 637 youth, trained more than 2 200 individuals, placed 1 456 in jobs and supported 84 entrepreneurs. Behind these numbers are real stories of young people who have gained new skills, found employment and started their businesses through the Foundation’s Consumer Financial Education (CFE) programmes and socioeconomic development focus on youth employment. “While we are proud of these achievements, we are aware of the pressing need to expand our efforts,” says Bokaba. 

Assessing the impact of youth unemployment interventions 

Throughout its journey the Momentum Group Foundation has remained committed to rigorous evaluation and learning, commissioning independent assessments to refine its strategy.  

Its 2023 impact assessment provided valuable insight into the broader systemic challenges affecting youth unemployment programmes. These include: 

• Training young people for jobs that the market cannot offer – market demand is needed alongside skills training 
• Addressing South Africa’s stagnant job market – job placements from these programmes may disadvantage other job seekers or make sustainable employment unrealistic 
• Focusing on the need for long-term livelihood sustainability and job quality – the shortage of high-quality, sustainable jobs fuels short-term employment and under-employment cycles 
• Being cognisant of multidimensional poverty – food insecurity, income poverty and care responsibilities, among other realities of poverty, can impact young people’s ability to find and retain employment.  

The assessment found that abundant training and skills development initiatives are insufficient to address the problem. What is needed is demand-led training and workplace experience that aligns realistically with market needs, so that young people are work-ready in terms of both skills and broader competencies.  

“Addressing these complexities requires more than just job placement,” asserts Bokaba. “It demands comprehensive support addressing various barriers and promoting sustainable livelihoods for young people. We need better research coordination to establish a clear, sustainable and impactful pathway to employment.” 

The findings stressed the value of collective impact and collaborative funding in creating systemic change.  

Collaboration: Seeking synergies for greater impact 

Armed with these insights and the understanding of the limited influence of individual youth unemployment programmes in such a challenging context, the Momentum Group Foundation is approaching its CSI with new vigour. The Foundation hosted a collaboration event in September 2024 to explore how a collective approach might deliver better social impact.  

The event brought together the government, other corporates, nonprofit organisations, entrepreneurs and youth employment experts to share learnings and explore ideas for a more collaborative approach. Key takeaways included the following: 

A central theme emerging from the event was the recognition that youth are not a homogeneous group and that addressing their challenges requires more than just skills development.  

Empowering young people requires the adoption of a pragmatic approach and collaborative effort.  

There is a need to create employment hubs in rural areas and townships rather than focusing on urban areas like Sandton. Bringing opportunities to our youth will empower them to be mobile, access credit and see their dreams realised. 

There is a need to focus on the informal sector and small businesses, noting that empowering young entrepreneurs in these sectors would have a ripple effect on the broader economy. If the informal sector grows, the economy will grow in parallel. 

The Masibambisane – Thriving Together event marked a landmark moment in the collective efforts to tackle youth unemployment, setting the stage for future partnerships and initiatives across all sectors that will put South Africa’s youth into employment and drive economic growth.