As the dust settles post-SONA, the shift turns towards South Africa’s youth demographic. The youth unemployment rate – currently 54,3% – reflects a deep socio-economic issue with the majority of the youth living without an income. This issue is further magnified by the statistic that points to graduate unemployed youth, which rose to roughly 11,7%-12%.
The government has outlined various plans and policies to help curb youth unemployment; however, other avenues of employment are needed to stop the increase in youth unemployment. One such avenue is corporate social investment (CSI).
What is Corporate Social Investment?
Corporate Social Investment (CSI) refers to company investments, including cash, time, and resources directed toward non-profit, social, and environmental causes, primarily aimed at uplifting communities and driving sustainable, long-term development rather than immediate financial gain. It is a strategic, often mandatory component of a broader corporate social responsibility (CSR) strategy.
For young people looking to gain employment, skills development or start their businesses, CSI is a viable option. In this article, we look at what defines CSI in South Africa and how it can help curb youth unemployment.
How Does CSI Differ from Corporate Social Responsibility (CSR)?
CSI and CSR can be used interchangeably. However, many define CSR as an overarching value-based framework that includes all social aspects of business operations, ensuring that a company manufactures its products and conducts its business responsibly and ethically.
In comparison, CSI is part of CSR and refers to a company’s financial and non-cash contributions – beyond its commercial operations – to disadvantaged communities and individuals for the purpose of social upliftment and welfare.
Key Characteristics of CSI in South Africa
These are some of the characteristics of CSI in South Africa.
Legislative and Strategic Drivers
B-BBEE Compliance: CSI is often linked to the B-BBEE scorecard, where companies are encouraged to spend 1% of their Net Profit After Tax (NPAT) on socio-economic development (SED).
Focus Areas and Priorities
Education and Skills: This is the most supported sector, focusing on improving learner outcomes, science, maths, and skills training.
Addressing Socio-Economic Challenges: Due to high inequality and poverty, initiatives often target food security, health (HIV/AIDS and TB), and infrastructure development in rural areas and townships.
Youth and Women Empowerment: Significant focus on supporting youth, women, and people with disabilities to promote equitable economic participation.
Benefits of CSI in South Africa
The benefits of CSI initiatives in South Africa are many, and most are outlined to drive social change in various areas. Here are some of the benefits.
- Education and Skills Development: to support schools with infrastructure, technology, and teacher training to improve education quality. It also funds bursaries and vocational training for youth.
- Economic Empowerment: CSI initiatives foster entrepreneurship, support small businesses, and create jobs in marginalised communities.
- Health and Social Services: CSI projects provide nutrition, medical, and rehabilitation support to vulnerable citizens in rural areas.
- Food Security: CSI programmes focus on teaching communities to grow their own food and providing them with resources to remain stable.
Benefits of CSI for Businesses
- Enhanced Reputation and Brand Loyalty: Consumers increasingly support companies with strong social values, enhancing brand sentiment.
- Employee Engagement and Retention: CSI initiatives boost employee morale and attract talent, particularly from younger generations seeking purpose-driven work.
- Tax Advantages: Companies that initiate CSI initiatives receive tax reductions or rebates, reducing the financial cost of their social contributions.
- Risk Mitigation: Investing in community stability improves the overall operating environment.
How CSI Can Help Curb Youth Unemployment
There are many strategies to combat youth unemployment. These initiatives shift from theory to strategic and intent-driven with a focus on skills development, employability, and entrepreneurship. Effective initiatives include investing in STEM education, funding learnerships and internships, fostering small businesses, and utilising platforms like SA Youth to connect young people with jobs.
Here are some of the ways in which CSI can help curb youth unemployment in South Africa.
Skills Development
CSI funds and programmes can focus on practical, technical, and vocational training that directly matches industry needs. This bridges the gap between education and employment, equipping youth for jobs in high-demand sectors like finance, technology, and services.
Additionally, with the growth of technologies such as artificial intelligence (AI), there is an even greater need for skills development in STEM sectors.
Targeted Entrepreneurship Support
CSI initiatives can empower the youth to become entrepreneurs and job creators. This can be done by supporting youth-owned small to medium-sized enterprises (SMEs) through funding, mentorship and business training.
Intentional Job Placement
Through CSI programmes, moving from “employability” to “employment can be a simple process. Youth-focused CSI programmes can train and then place youth into work, with examples including partnerships that have helped place thousands of youths in earning opportunities.
Supporting Women, Rural Youth and People Living with Disabilities
CSI programmes prioritising marginalised groups through dedicated CSI programs ensure more inclusive economic participation. This not only increases inclusiveness but also ensures all demographics receive equal opportunities for growth and employment.
By focusing on these areas, CSI acts as a catalyst for sustainable job creation rather than temporary relief.
Available CSI Programmes in South Africa
These are just some of the CSI programmes available in South Africa.
- The Youth Employment Service (YES) creates 12-month work experiences for youth aged 18-35
- Momentum offers FinEazy, Motheo Financial Dialogues, and Making Money Matter.
- Shoprite Holdings offers food security and community development support
- Jozi My Jozi (supported by Tshikululu) focuses on inner-city uplifting and entrepreneurship
- Volkswagen Group has a CSI programme in partnership with YES
- DSV’s CSI programme actively contributes to long-term sustainability, education, healthcare, and social well-being.
