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By Johnathan Paoli
Deputy President Paul Mashatile has called for national mobilisation to unlock the potential of youth through entrepreneurship as a strategy for tackling South Africa’s deepening unemployment crisis.
In an address delivered at the Harambee Youth Employment Accelerator offices in Johannesburg under the theme “Enabling Entrepreneurship as a Pathway to Youth Economic Inclusion”, Mashatile warned that youth unemployment, which was currently at a staggering 56.3%, was not only an economic dilemma but a “social and moral emergency”.
“As Chairperson of the Human Resource Development Council, I have prioritised the creation of platforms where social partners can find solutions to our human capital bottlenecks. We are determined to reverse the legacy of exclusion and inequality by investing in the entrepreneurial spirit of our youth,” Mashatile said.
The event, hosted by non-profit social enterprise platform enterprise, which focuses on connecting young people to work opportunities, brought together youth leaders, entrepreneurs, business stakeholders and government officials for a robust engagement on economic inclusion.
Mashatile situated the youth’s struggle for economic emancipation within the historical context of the 1976 Soweto Uprising, praising the sacrifices of that generation who “stood against the chains of apartheid’s cruelty”.
He urged today’s young people to take up a new mantle in the fight against economic exclusion, technological displacement and inequality.
The deputy president outlined the realities of exclusion of 9.2 million young South Africans not in education, employment, or training. The number is expected to grow by 600,000 each year.
With economic growth projected at just 1.8%, the formal labour market cannot absorb this influx.
“Our economy is simply not growing fast enough. Entrepreneurship must therefore be viewed not as an alternative, but a necessity,” he said.
He pointed to a suite of government-led interventions designed to empower young entrepreneurs.
These included the National Youth Development Agency Grant Programme and Youth Challenge Fund, the Innovation Fund that has supported 96 start-ups since 2020, the Transformation Fund which is set to disburse R20 billion annually over the next five years to black-owned and historically disadvantaged businesses, and the Spaza Shop Support Fund, which commits R500 million to revitalise township and rural informal trade.
“These are not handouts, they are investments in your potential,” Mashatile declared.
He also highlighted the Public Procurement Act, which prioritised inclusive procurement and local value chains as a powerful lever to connect young entrepreneurs to economic opportunities.
Further support would be provided through the National Small Enterprise Amendment Bill, aimed at reducing red tape and ensuring targeted support for youth-led businesses.
Mashatile outlined the government’s commitment to integrating youth into the digital economy through the Digital Economy Masterplan and National Digital and Future Skills Strategy, which focus on expanding digital infrastructure, skills training and innovation.
He also celebrated the SA Youth Platform (sayouth.mobi), a flagship initiative of the Presidential Youth Employment Intervention.
Through partnerships with entities like Harambee, the platform facilitates access to job opportunities and career support.
“One of the most exciting examples of impact is the Basic Education Employment Initiative,” Mashatile said.
Now in its fifth phase, it recently placed 205,000 young people in schools across the country, a record for youth employment in South Africa.
The deputy president commended Harambee’s contact centre team for processing 17.9 million applications in just three weeks.
He urged everyone attending the event to work towards unity and innovation in dealing with the country’s youth unemployment crisis.
“Let us work together to create an enabling environment that nurtures entrepreneurial spirit and fosters a culture of resilience,” he said.
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