Zlto is a South African based startup that seeks to reduce the youth unemployment rate by using the blockchain.
Zlto wants to help solve the unemployment canker in South Africa by leveraging blockchain technology to help youngsters show proof of experience and credentials.
South Africa currently has a high level of unemployment amongst its youth. According to statistics by the South African Government, the unemployment rate among the youth was 55.2 percent in the 1st quarter of 2019 which is above the global rate of 13.1 percent.
A large contributing factor to youth unemployment in South Africa is disputes over work experience and appropriate credentials. Without a proper method to prove any of these things, a lot of youth have been unable to access economic opportunities.
The social startup Zlto wants to help solve the unemployment issues by using mobile phones and the blockchain.
Zlto took part in the Google Impact Challenge competition that seeks to invest in startups that use technology to address societal issues and emerged as one of the winners of $250,000 (R3.5 million).
Zlto is an initiative of a local NGO, Reconstructed Living Labs (RLabs), and is on a mission to get the South African youth involved in community work which can help them gain work experience that comes in handy when they are looking for employment.
Young people can take part in volunteer work, which can be anything from painting a worn-out building to cleaning up the environment.
Zlto’s Blockchain Solution
Using Zlto’s app, users will be able to clock in by taking a before photo of the exact activity and uploading it onto the Zlto app and then taking an after photo once they finish the job. The gained work experience by each user will then be recorded on a blockchain ledger that will make it verifiable and transparent.
Also, users will be incentivized using Zlto’s digital currency that they can then spend in a Mr. Price retail shop on clothes or buy groceries from over 1,000 Shoprite stores. Alternatively, they can opt to purchase airtime which is one of the many needs for most people looking for jobs.
Zlto intends to build more use cases for its digital currency moving forward, to encourage more people to use its blockchain solution for recording their credentials and job experiences.