Republic of Serbia

Motivating Factors

According to 2018 World Bank Data, 43.91 % of Serbia’s population is comprised of rural residents. This is the second-highest percentage of rural residents across the Balkans, with 51.76% of Bosnia and Herzegovina’s residents making their homes in rural areas according to 2018 World Bank Data. In contrast, Bulgaria’s rural population is only 24.99% of residents according to the same source. For this reason, rural innovation in Serbia and Bosnia Herzegovina is crucial for the realization of the sustainable development goals. Given that rural residents in Serbia and Bosnia and Herzegovina are primarily farmers, education related to carbon emission reduction, green energy, alternative building options such as hemp-based materials, and the planting of income generating crops, such as industrial hemp, that are simultaneously carbon-negative, are crucial elements of sustainable development across the region.

In 2019, data from the National Statistics Office of Serbia (RZS) drew attention to children, teenagers, the unemployed and rural residents being at greatest risk due to the effects of poverty. Official figures for 2017 showed that 25.7% of the population lives at or below the poverty line. The poverty line is drawn at 15600 dinars (130 euros) for a family with one member, 28080 (234 euros) for a couple with one child and 32760 dinars (273 euros) for a couple with two children.

According to Future Challenges and Strategies for Smallholders in Serbia, “Poverty in Serbia is predominantly a rural phenomenon, given that rural communities in some periods were affected more than twice as much in comparison to the cities. Before the beginning of the economic crisis (2006-2008) there was a significantly faster decline of life quality in rural, rather than in urban areas. Rural areas are more responsive to the economic crisis and were strongly affected by it, with the overall growth of poverty in the Republic of Serbia generating an increase in poverty in rural areas.”

According to the May 2011 Assessment of the Labor Market in Serbia by Vienna Institute for International Economic Studies, “The Serbian labour market is characterized by low employment and activity rates, particularly for women and young people. This indicates the weaknesses of the secondary educational system in adapting to the needs of the labour market, but also the obsolete skills of the high percentage of long-term unemployed.”

According to the 2019 Labor Force Survey conducted by the Serbian Office of Statistics, although the official unemployment rate is reported as 10.4%, the data shows that permanent employment is, in fact, rare. The official employment rate is reported as being only 49%, with the difference between employed and unemployed recorded as “inactive”. Therefore, for our purposes, we are deeming official statistics to be inaccurate and unreliable. We are therefore relying on third-party data and personal experiences reported by our current employees and advisors.

Gender Equality Considerations

The World Bank guide, “Women’s Access to Economic Opportunities in Serbia“, addresses the overall challenge of gender representation across the Serbian economy through the Executive Summary on pages 1, 2 and 3. On page 3, the guide states that, “Serbia has one of the highest rates of unemployment in Europe, and austerity measures that are to be implemented in 2016 will include cuts in public sector employment that may affect women more than men.” While on page 5, “This report shows that women in Serbia tend to report poorer health than men and are more often unable to afford medical services.” Page 16 specifies that, “The employment rate is substantially lower among women than among men”. Significantly, note on page 50 that, “Significant gaps remain in women’s access to jobs. Compared to EU member states, Serbia has the lowest score of the Gender Equality Index than any other country in the domain of work.”

Stakeholder Feedback

On the basis of stakeholder feedback, including information gathered from local community cooperatives, nonprofit cultural and environmental organizations, and members of our Stakeholder Board and Stakeholder Engagement planning working group, we have established the following:

  • The employment process is difficult for individuals between the ages of 16 and 40 to grasp, unless they seek employment by a large public institution, financial institution, or established international corporation. There are no clear and transparent job descriptions, application processes or pathways to employment beyond individual referrals. 
  • Many individuals ages 19 to 40 seek contract-based employment through online channels such as LinkedIn and online platforms for project-based contracting for copywriters, designers, web developers, software developers and engineers, and other professionals who work online. Such employment or contract-based work does not result in the payment of healthcare, unemployment, or pension benefits by the employer or contract provider.
  • Individuals who are able to secure formal employment are usually paid at minimum wage outside of large city centers and even below minimum wage in South-Central Serbia and in isolated villages. Within city centers, wages are usually formally paid at minimum wage or slightly higher than minimum wage, while additional payments are not formally reported nor do employees receive benefits beyond the payment of contributions (government healthcare, insurance, and pension plans) on their reported wages.Private health insurance is rare, and private dental benefits and pension plans are usually reserved for corporate executives or managers at large multinational corporations.
  • Agricultural workers are not generally formally employed but are rather paid in cash for their work, and they do not receive healthcare benefits, unemployment insurance contributions or government pension contributions. Although legally mandated, the formal filing of employment contracts for agricultural workers usually only covers a small fraction of their actual work rather than the full term of their seasonal work.

To address the above local circumstances, Roshem Impact has developed a formal

Pathways to Career Development Program

with two streams:

Information Technology and Communications | Agriculture

Information Technology

Team members engaged as part of our information technology, communications and web development team are provided with formal onboarding training that includes skills development for their particular area of work, along with introductions to the company’s overall scope of work in the impact finance, impact measurement and management, and sustainable development fields. Employees are provided with access to the Roshem Network online platform and its tools and resources, while also being provided with opportunities to take additional courses related to their professional development. According to their scope of personal interest, additional opportunities are provided related to non-career related development, including language courses, sponsorship of employee sports activities and training, and flexible work schedules that accommodate such employee initiatives.

Agriculture

Team members engaged as part of our agricultural production and environmental management team are provided with formal onboarding training that includes practical experience, information and best practices related to organic and regenerative agriculture. Farmers and environmental managers are provided with access related to regenerative agricultural business development and impact investing considerations, along with resources related to the marketing and sales process for organic products. According to their scope of personal interest, additional opportunities are provided related to non-career related development, including impact scaling courses and training on sustainable building solutions. Opportunities are provided for participation in non-farming programs and training such as those related to employees being able to teach workshops, courses, and educate rural students of all grade levels, alongside flexible work schedules that accommodate such employee initiatives.

Program Delivery Methods

Online Training

Rural Innovation Centers

Rural innovation can become a successful poverty reduction strategy if programs and training address both skills development and market access, including access to new and innovative ways to market and sell products, and also access to fair and equitable employment opportunities based on transparent criteria.

In order for a transition to a Circular Economy, Renewable Energy sources and Sustainable Development to be successful, rural stakeholders need to be involved in the process. Their individual and community needs must be met in order for educational and awareness-raising programs to achieve meaningful impact outcomes.

Impact Finance Center

All team members, from their onboarding onwards throughout their ongoing professional development, have access to courses developed by the Impact Finance Center’s Impact Investing Institute. Including:

  • Impact Investing 101
  • Fundraising and Impact Investing
  • If Angels Invest in Unicorns, Do Heroes Invest in Racehorses, and What About the
  • Champions and Catalysts?
  • Women and Impact Investing
  • Main Street 2.0 Course
  • Community Foundation 101 Course

How is working at Roshem Impact different for our employees:

  • Team members are formally employed and payments are made for their benefits and contributions according to official government pathways. Additional benefits are available in accordance with the company’s programs and policies.
  • Formal career advancement training and support is provided by Roshem Impact.
  • 1 farmer is formally hired for every 11 employees of Roshem Impact. This is rare across Serbia, as farmers are usually self employed or contracted, and are rarely formally employed.

Republic of South Africa

How do women fare in the South African labor market?

Source: Department of Statistics, Republic of South Africa

“The South African labour market is more favourable to men than it is to women and men are more likely to be in paid employment than women, regardless of race. According to the Quarterly Labour Force Survey released by Statistics South Africa, the official unemployment rate has been relatively high since 2008. In the last decade, the rate has increased from 23,2% in the first quarter of 2008 to 27,2% in the second quarter of 2018. The expanded unemployment rate, which does not take the job search into account, was even higher and increased from 30,9% in 2008 to 37,2% in 2018. Throughout this period, both of these rates were higher amongst women than men. The rate of unemployment amongst women was 29,5% in the second quarter of 2018 compared with 25,3% amongst men, according to the official definition of unemployment. According to the expanded definition, the rate of unemployment amongst women was 7,5 percentage points higher than that of males.”

“Women accounted for 43,8% of total employment in the second quarter of 2018. Only 32% of managers in South Africa were women. Women dominated the Domestic worker and Clerk or Technician occupations, with men dominating the rest.”

“The informal sector, which accounts for 17,4% of total employment, plays an important role in providing employment to those who cannot find work. Informal sector employment is mainly concentrated in Trade. There are more women than men employed in the informal sector Trade (47,6% of women compared to 30,6% of men).”

To address the above local circumstances, Roshem Impact has developed a formal

Pathways to Career Development Program

with two streams:

Women’s Leadership Development | Skills Transfer

Both the temporary manager and the skills transfer program beneficiary employee are provided with access to the Roshem Network platform, alongside additional tools and resources related to their scope of work.

Program Delivery Methods

Online Training

https://roshem.net

The Roshem Impact online network provides programs, courses, resources and tools for employees, along with specific occupation-based skills training.

Leadership Programs:

  • Impact Investing 101
  • Financing Impact for Gender Equality
  • Blended Finance

Current Skills Transfer Programs:

  • Corporate Management 
  • Sales and Marketing Management
  • Production Planning

University of Cape Town

Our team members access courses and workshops offered by the Bertha Centre for Social Innovation and Entrepreneurship, and sponsored by Roshem Impact. Team members continue to have the ability to access resources online both during their regular working hours and on their own time to supplement their formal training through the Roshem Impact online network.

Impact Finance Center

All team members, from their onboarding onwards throughout their ongoing professional development, have access to courses developed by the Impact Finance Center’s Impact Investing Institute. Including:

  • Impact Investing 101
  • Fundraising and Impact Investing
  • If Angels Invest in Unicorns, Do Heroes Invest in Racehorses, and What About the
  • Champions and Catalysts?
  • Women and Impact Investing
  • Main Street 2.0 Course
  • Community Foundation 101 Course

How is working at Roshem Impact different for our employees?

  • Female managers represent only 32% of total management-level employees in South Africa. At Roshem Impact, our current management team in South Africa is comprised of 60% female managers. We intentionally hired a greater proportion of women and provided them with additional training and education to facilitate their career development.
  • Team members are formally employed and payments are made for their benefits and contributions according to official government pathways. Additional benefits are available in accordance with the company’s programs and policies.
  • Formal career advancement training and support is provided by Roshem Impact.