Financial Data
Updated 29 Feb 2020

9 Billion reasons for rural women and youth to become economically active

The rising need of food security, economic diversification and greening of the economy offers great opportunities for entrepreneurs to find a solution.

Betsy Ings, 25 January 2016  Share  0 comments  Print

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Agriculture’s biggest challenge is to feed 9 billion people globally by 2050. Despite recent progress, close to 800 million people still suffer from chronic undernourishment. These scary facts bring to mind the high unemployment rate of women and youth in rural South Africa. 

Related: Tough 2016 an opportunity for agriculture to become more efficient

Social enterprises – The perfect vehicle

Social enterprises present a perfect vehicle to address the above solution. South Africa’s economic and social landscape provides us with the following thought provoking [i] statistics:

  • Women re-invest up to 90% of their income in their families and communities.
  • 72% of women in villages and towns have limited/no access to entrepreneurial services, credit and markets.
  • 25% black women, compared to 19% black men, have difficulty in using technology associated with banking products/services.
  • 43% of South Africans live on less than R30 per day.
  • Women are disadvantaged by their lower level of financial literacy and awareness.
  • SMEs (Small and Medium Enterprises) account for 56% of private sector employment.
  • The failure rate of SMEs in SA is among the highest in the world at 75%. 

The conclusion of the above statistics is that women and youth in rural SA face the following barriers – access to business opportunities and markets, business skills training, financial services and peer networks.

Private investment – An imperative

It is clear from the above that private investment in agriculture and rural areas is crucial. One has to unpack sustainable solutions and identify stakeholders needed.

In seeking sustainable solutions we must:

  • Identify the challenge
  • Identify relevant partners
  • Identify viable solutions
  • Cost the solutions
  • Implement
  • Communicate the impact. 

We must identify stakeholders/potential partners as:

  • Direct owners
  • Indirect owners
  • Challenge solvers
  • Challenge sponsors.  

Credible partners

International -Labour -Organisation

The good news is that we have plenty potential partners. Two local International Labour Organisation (ILO) initiatives include:

1. The Free State SME Development Project

This project successfully engaged with 5 595 students on theStartUp-&-Goentrepreneurship education programme.

2. The Kwa-Zulu Natal Public Procurement and Social Economy (PPSE) Programme

This programme trained 129 supply chain officials on social enterprises and co-operatives - creating a more conducive enabling environment. Altogether 66 trainers have trained 3 631 people on improving their businesses. 

One Acre Fund – The perfect case study

The One Acre Fund in East Africa is a perfect example of a successful agriculture social enterprise. This enterprise invests in rural farmers by supplying seeds, fertiliser, financing, training and market facilitation. They aim to generate a sustainable income among farmers so that they can grow their way out of poverty. 

Related: Are you operating on an obsolete agribusiness model?

“Measuring impact is a key focus a One Acre Fund. On average, farmers working with us realise a 100% return on their investment – roughly double the income on every planted acre. We attribute this impact to the comprehensiveness of our model and our ability to distribute products and services within walking distance of the smallholder farmers we serve. It’s growing quickly – we hope to serve one million farmers by 2020 and more thereafter,” said Jenny Best, One Acre Fund spokesperson. 

“When you educate a woman, you educate an entire generation.” Nelson Mandela. 

[i] Studies conducted by IFC (International Finance Corporation), ILO (International Labour Organisation) and Statistics South Africa

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About the author

Betsy Ings

Betsy Ings is the founder and managing director of Tradelane Training & Project Management and Siyaloba Training Academy. Tradelane’s vision is to make a sustainable, quantifiable impact on the economy by promoting viable growth of small enterprises and women entrepreneurs. Betsy is passionate about finding integrated and collaborative solutions to uplift through implementation of their comprehensive 3-enabler approach - (1) knowledge and skills through training (2) mentoring/coaching through individual, peer and group sessions (3) financial linkages through various partnerships. Betsy is an internationally accredited programme provider and facilitator to various United Nations organisations. She has made a significant impact on the SA entrepreneurial landscape.

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