The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Democratic Alliance Youth (DA Youth) laments the recent decision of the ANC government to move finances from the auspices of the Umsobomvu Youth Fund (UYF) to the newly established National Youth Development Agency (NYDA). The DA Youth has been made aware of the catastrophic result of this act, with current and future employment possibilities and entrepreneurship opportunities being rendered bleaker for the sector most plagued by unemployment, the youth.

The UYF was established in 2001 to facilitate youth entrepreneurship through, amongst others, a subsidised business voucher support programme. These vouchers are distributed to a network of service providers - youth businesses who are paid by UYF to carry out services for young entrepreneurs. The UYF then merged with the National Youth Commission to form the NYDA yearly this year.

NYDA now controls the UYF's budget and the consequences are harrowing: Firstly, targets for voucher distribution have been reduced from 2000 per UYF office to 800 such that most accredited service providers have been forced to go out of business and there has been a direct reduction in access to entrepreneurship opportunities for the youth; Secondly, there has not been any indication to the youth in general and to service providers in particular as to how this money would be redirected, and what future policy is to be. This lack of transparency, consultation, and accountability is not only unbecoming of an organ of state, but it has caused unnecessary and painful stories for the youth.

One service provider has shared his predicament with the DA Youth: As a result of his work with the UYF, he has created direct employment for 9 persons in two years, most of whom are previously disadvantaged. He has invested over R100,000 into the business at his own risk to provide computers, software and basic furniture and signed a lease for premises. This was after he had signed a three year service agreement with UYF in May 2009, which was removed by the stroke of pen with no notice in early June 2009. Further, the two main Gauteng branches have temporarily shelved the voucher program in full.

These developments are at complete odds with the President's pledge to create 500,000 jobs by December and will cause youth unemployment to rise. The DA will be posing parliamentary questions to the Presidency on this matter to see what further steps could be taken against this misfortune.