The pandemic triggered soaring unemployment and deepening poverty, further exacerbating inequality and fraying the social fabric of South Africa. Despite some subsequent recovery, unemployment figures remain unacceptably high. The Social Employment Fund (SEF), an innovative mechanism piloted by government, civil society and grassroots organisations, supports part-time work in community projects, using the power of collaboration to reweave social cohesion.
The unique collaborations born from the SEF have increased agency, sparked employment opportunities and strengthened communities. Major learnings have been generated and these will be shared via a collection of knowledge briefs. This, the first in a series of nine on the life-changing stories and thematic areas of the SEF, will look at the genesis of the Fund and its learning and support network, the Social Employment Network (SEN), and how the focus on partnership and co-learning has developed skills and improved agency in marginalised communities, leading to greater impact and scale.
In response to the economic shockwaves of the pandemic, the government launched the Presidential Employment Stimulus (PES) in October 2020. Through its various programmes, more than 1.5 million work and livelihood support opportunities for unemployed South Africans (83% youth and 66% women) have been created.The national Social Employment Fund (SEF) is one of the strategic interventions under the banner of the PES. The South African Presidency launched the R800 million SEF in early 2022, as part of South Africa’s Economic Reconstruction and Recovery Plan.
Supporting the Social Economy
South Africa has a diverse social economy that offers great value to communities. This includes a host of community-based organisations (CBOs) such as NGOs, hospices, creches, community kitchens, faith-based organisations and others in civil society. These organisations play an important part in supplementing the role of the state in addressing challenges related to areas such as: health, education, gender-based violence and nutrition etc. It is mainly these organisations that the SEF partners with, using existing civil society networks to build social cohesion and conduct work benefitting society and communities as whole.
The SEF is a game-changer funding mechanism that enables resources to do ‘double duty’: supporting social outcomes in relation to health, education, environment and many other important priorities – while eradicating unemployment in South Africa.
How does the SEF Work?
The Fund, managed by the Industrial Development Corporation (IDC) works with about up to 40 Strategic Implementing Partners (SIPs) per 10-month cycle, each operating in a variety of community-driven thematic areas such as:
- Community Health and Caregiving,
- Community Safety (including Gender-Based Violence),
- Food Security and Nutrition,
- Early Childhood Development,
- Greening and Environment,
- Placemaking and
- Arts.
The SIPs in turn partner with a minimum of 1 000 CBOs and grassroots structures that run work programmes for the common good. Through the SIPs the SEF provides temporary work for unemployed people, who learn valuable skills and earn a stipend. In real terms, this translates to supporting 50 000 individuals on a monthly basis.
| Numbers of SIPs partnered with: Round 1: 2022-2023 (28 SIPs) Round 2: 2023-2024 (35 SIPs) Round 3: 2024 – 2025 (37 SIPs) |
A non-wage component is allocated to the SIPs for the management of the employment programmes and the purchasing of necessary supplies such as seeds and gardening implements. The SIPs report through formalised Key Performance Indicators (KPIs) back to the IDC each month, otherwise they don’t receive the next tranche.
A Look at the Figures
R3.5 billion in public investment has been committed to the Social Employment Fund thus far, with the private sector and donors contributing an additional R67 million to deliver change. This has allowed Strategic Implementing Partners (SIPs) to intensify impact drive and allow for greater spend on skills transfer, tools, equipment and more.
Building Pathways Out of Unemployment
“A public employment programme is about more than just the income. It is also about the value of participating in work. Research has demonstrated that it impacts on the capabilities of participants. As a consequence of regular social interaction, participants are integrated into social networks and exposed to opportunities. They develop a sense of agency and a renewed faith in their ability to impact on their own world through their own actions.” – Dr Kate Philip, programme lead, PES
The SEF unlocks local agency, builds local participation and strengthens mutual support systems and resilience in communities. To date, over 117 000 people have participated in and benefitted from the SEF across the country, 65% are youth and 70% female, with 65% of the work conducted in rural and peri-urban areas.
SEF- a Focus on Partnerships
Civil society is recognised as an important pillar of our democracy, but a certain tension exists between government and civil society. Government has tremendous resources and the ability to set policies, so it can set the rules of the game. It tends to regard civil society as a service provider, not necessarily as an equal partner. Civil society has the power of advocacy behind it and is constantly calling government to account. They do not see each other as natural allies. Each has their own agenda and approach to social challenges, partly because of their operating environments.
Top-down versus Bottom-up
The government mobilises public resources and allocates them according to public policy in a top-down authorising environment. Due to government regulations, this takes a one-size-fits-all approach and struggles to adapt to the local context. The accountability is upwards towards politicians and auditors, not downwards to communities.
Civil society operates in a bottom-up mobilising environment. It consists of entrepreneurs, innovators, action research, NGOs, funders, donors and social movements. It tends to be highly responsive; if an issue comes up within a community, it can be there within hours. However, the bottom-up mobilising environment tends to be small scale. In addition, there is competition amongst NGOs for scarce funds, they don’t always work well together and their approach can be fragmented.
The SEF model is based on the premise that there can be no sustainable development, unless top-down and bottom-up environments work better together. SIPs effectively play the role of intermediaries between the state and marginalised communities. The SIPs are the links to what’s already happening on the ground. They are plugged into grassroots movements, the NGOs, the CBOs, the social movements, the activists, the solidarity networks, the ecumenical networks. SIPs partner both upwards into the IDC, the DTIC and the presidency and downwards to communities.
The SEF is a hybrid model that takes the effective elements of both systems and combines them, forming a two-way relationship, in which both entities respect and harness the other’s strengths and compensate for weaker areas. Various forms of collaboration are built into this model and integral to that is the Social Employment Network (SEN).
According to Khwezi Fudu Cenenda, Director of Enterprise Development, Avo Vision, the SEF has been instrumental in accelerating the growth of various initiatives. Through strategic partnerships and collaborations, the fund has enabled the SIP to expand its impact in rural communities, contributing to economic development through job creation, environmental restoration and product innovation.
“Avo’s partnership with a with a local organisation on the Sudwala Valley project in Mpumalanga focuses on holistic land management, habitat conservation and community development. We’re on the cusp of securing a significant offtake agreement for biochar produced from alien invasive biomass – a milestone that our partner attributes directly to the SEF’s catalytic support.” – Khwezi Fudu Cenenda, Director of Enterprise Development, Avo Vision
SEN: Shared learning + Support = Greater Agency and Impact
The Western Cape Economic Development Partnership (EDP) established the Social Employment Learning and Support Network (SEN) to support civil society organisations (CSOs) participating in the SEF. The learning component of the SEF is crucial in helping CSOs and non-state actors engage with the Fund and each other. It convenes all SIPs in a community of practice fostering knowledge exchange.
To ensure ease of operation, the SEN is governed by simple protocols rather than complex rules. The EDP acts as an impartial intermediary, responsible for convening, chairing, and administering the SEN. It convenes safe and constructive spaces for learning and sharing lessons among the SIPs, enabling capacity building.
The diagram below illustrates the unique structure of the SEF, which introduces an adaptive governance model. SIPs openly communicate challenges and successes within the SEN, which is then shared with the IDC. Where possible the IDC actively makes necessary changes to optimise programme functions for those on the ground. The SEN has created a feedback mechanism between the SIPs and government.
“The SEN is a form of trust between us and our partners on the ground to allow for joint learning and the sharing of collaborative issues back to us as the fund manager. The problems societies face are too large for any one group to face by itself. Individual pockets of excellence are concentrated within various organisations. When these are put together, they are amplified and magnified. It is the only way to scale benefit in this economy, with the limited resources that we have.” – Bhavanesh Parbhoo, programme manager IDC Partnership Programme
Figure 1: Structure of the SEF and SEN
Collaborating In and Across Sectors
The aim of the SEN is to help SIPs recognise synergies and collaborative opportunities across the various silos (Health, Education, Greening and the environment, Arts) so they can amplify their impact by working together.
The SEN has been jointly funded by the IDC and the DG Murray Trust (a South African public innovator through strategic investment) since inception of the SEF.
Bridget Hannah, DGMT Innovation Director – All Young People on Pathways to Productivity, explains that by design, the SEN and the SEF encourage partnerships among the different SIPs, enabling them to pool resources and scale their projects.
“Each of the implementing partners brought such incredible value to the work, with the different strengths they have honed, e.g. a particular learning approach, or an approach to mental health support. Convening the implementing partners means they can strengthen spaces in which others have gaps. They support each other, so they can improve and support programme outcomes for beneficiaries and ultimately the impact of public employment programmes.” – Bridget Hannah, DGMT Innovation Director
Collaborative efforts have led to innovative solutions, such as cross-pollination of ideas and joint initiatives to address societal challenges. The SENencourages partnerships between sectors that might not traditionally engage (see Kasi Sellers Network below).
SIPs are engaging on a deeper level and building relationships that will last beyond the SEF programme. They also participate in thematic working groups aimed not only at enhancing knowledge sharing among SIPs but also fostering connections at site levels and promote peer-to-peer learning among participants. The focus is on exploring avenues to enhance the efficiency of their programmes.
Growing Arfully Together -the Kasi Sellers Network
A performing arts organisation and an aquaponics- focused NGO seem worlds apart. However, guided by a shared commitment to community development, ASSITEJ South Africa and INMED South Africa joined forces to launch the Kasi Sellers Network. This initiative aims not only to enhance market opportunities for smallholder farmers but also to create sustainable employment for youth in disadvantaged communities.
Both organisations faced unique challenges— community aquaponic farmers struggled with sales, while creatives and artists lacked consistent work opportunities. Recognising these issues as opportunities for synergy, the Kasi Sellers Network was born.
Young artists brand and decorate custom-made tricycles and transport fresh produce and fish from local farmers to markets in communities such as Orange Farm in Soweto, Gauteng. In this community, artists do primary SEF work at the Orange Farm Dance theatre and sell produce on their free days.
The Kasi Sellers Network bridges gaps between sectors traditionally seen as worlds apart —arts and agriculture— unleashing potential for holistic community development.
“We used to sell with a wheelbarrow, but it was taking very long, many hours in a day to finish selling our produce. Now this bike, it is an advanced weapon, 20 people they follow it, the advanced weapon is attracting money like a magnet … When I harvest, I can make even R2 000 or R 3 000 a day.” – Kasi Seller
To date, the Social Employment Network has been instrumental in:
- Providing feedback loops to the IDC, which improves communication between government and society and enhances the rollout of the SEF.
- Providing a collaborative space for SIPs to develop joint solutions and share learnings.
- Disseminating valuable knowledge and resources to a wider audience through workshops, forums, and digital repositories.
- Strengthening the ability of SIPs to partner effectively by fostering a supportive network.
- Improving the impact of individual projects through collaborative learning and shared insights.
- Encouraging cross-sectoral collaboration and the sharing of innovative practices.
Facilitating Communication, Building Trust
“Something that an intermediary organisation really holds and is extremely important to these kinds of processes is the administration of setting up meetings and ensuring regular engagement. This ensures open communication channels and continuous and transparent communication between all partners so that we can keep that momentum going. All these backbone administrative processes hold the network” – Margo Paterson, Project Lead, EDP
Skilled facilitation and coordination by an independent intermediary guarantee inclusive spaces for dialogue, encouraging active participation and managing conflicts constructively. Moreover, the intermediary plays a vital role in providing essential administrative support, creating the necessary infrastructure for effective engagement to occur. The EDP acts as a sounding board between SIPs and government, facilitating open communication and building trust.
Collective Impact Milestones
“Partnering and partnership is not an end in itself. It is a means towards an end. That end is delivering collective impact as opposed to separate parallel impact.” Andrew Boraine, EDP founder and former CEO
The SEF catalyses the formation of various forms of partnership leading to the following five collective impact milestones:
1)Partnering for delivery at scale. A SIP bid needs to include a minimum of 1 000 participants. The is because the IDC requires a solution that can scale rapidly. Many CSOs, even larger ones, on their own do not have this capacity. Thus CSOs teamed up with other CSOs, grassroots organisations, as well as private sector and donor partners to strengthen their overall administrative, managerial, and reporting capacity to be able to deliver at scale. The SEN supports building partnering capabilities.
2)SEN naturally facilitates peer-to-peer collaboration and learning. Experienced SIPs with a longer track record are able to give newer SIPs advice on technical, financial and managerial systems. The SEN introduced a mentorship programme between round one and round two, so existing SIPs could mentor the new cohort. The programme expanded beyond just mentoring new SIPs and supporting their onboarding into SEF processes. It facilitated the sharing of real-life experiences and challenges encountered on the ground. Additionally, it sparked collaborations and learning between mentees and mentors.
Peer-to-peer learning is one of the successes of the programme and has improved the operations of projects in various thematic areas.
3)Collaboration in design leads to more effective operations. SEN provides a feedback loop to government. SIPs might say “The way government has wanted us to report on that just doesn’t work and adds too much compliance” or “There’s a better way of doing it.” The IDC then responds to these concerns and parameters are adjusted within the limits of their compliance frameworks. The continuous tweaking has led to better functioning of the various iterations of the SEF.
4)SEN narratives support the social and solidarity economy. SEN helps each SIP tell its story and these stories are used to improve strategic communications and showcase the networks achievements. This not only highlights the SIPs’ impact but also contributes to shifting the narrative about the importance of partnerships, and the value of social employment in driving impact. Additionally, by sharing information and knowledge about how CSOs can partner with each other and government, the SEN can help them to identify new opportunities to develop and implement more effective programmes and this feeds back into and supports the social and solidarity economy.
5) Building capacity and trust improves outcomes. The SEN aims to become a place of learning and capacity building for CSOs. Capacity building can enhance the quality, impact, and sustainability of CSOs’ programmes and partnerships, and enable them to contribute to the SEF’s objectives more effectively. The SEN is also building the capacity of government to work more collaboratively with civil society. The two entities are learning to trust one another, and this means that beyond the SEF, they can find alignment and achieve more together.
“Through this process we’re meeting a whole lot of different objectives and that is not only to build the capacity of the SIPs, but also to build the capacity of grassroots organisations to help them become more effective and efficient and hopefully grow and scale their operations and be able to attract the necessary funding and resources to be able to do what they need to do at a local level.” – Stuart Bartlett, IDC manager, regional programmes
Sustainable Change
This learning brief has illustrated how the SEF and SEN have been fostering partnerships and promoting collaboration, offering a holistic approach to social development, leveraging the collective strength of diverse stakeholders to create sustainable change and opportunities for all. This is a crucial platform demonstrating the collaborative potential for civil society and government to work together in addressing some of South Africa’s most pressing challenges.
SEF Wins Global Accolade
The Social Employment Fund (SEF) won first prize as the Prosperity Catalyst Award winner at the 2024 Bay Awards, a global ceremony hosted in Bilbao, Spain. Selected from over one hundred entries worldwide, the SEF has demonstrated the profound impact of supporting community-based projects that create social value, even in the absence of market value.
The next learning brief will focus on the thematic area of Early Childhood Development (ECD), which has led to significant improvements in children’s cognitive, social, emotional, and physical development. See how the Kgarebe Tsa Merihla at korobela creche is working to change the lives of vulnerable young children.
Knowledge Brief developed by Daniella Horwitz with contributions from Dr Kate Philip, programme lead, PES; Khwezi Fudu Cenenda, Director of Enterprise Development, Avo Vision; Andrew Boraine, EDP founder and former CEO; Stuart Bartlett, IDC manager, regional programmes; Bridget Hannah, DGMT Innovation Director and the Kasi Sellers Network
ENDS