STAFF REPORTER
Deputy President Paul Mashatile says the government is committed to help in drawing more young people into the economy by affording them with skills needed.
Mashatile was speaking on Thursday at the second NYDA Investment Roundtable discussion, which is being held under the theme, “unlocking investments for human capital for an inclusive economy.”
He said the government is addressing the mismatch between the skills needed by the economy and those possessed by young people while he acknowledged that South Africa is going through the most difficult period in the history of its democracy.
“We are faced with challenges ranging from an ongoing energy crisis to high unemployment rates, dwindling investor confidence and an economy that is not growing rapidly enough to meet our development goals,” he said.
According to Stats SA, the youth unemployment rate reached 62.1% in the first quarter of 2023.
Nearly two-thirds of young people are not engaged in any form of viable employment; this is a ticking time bomb, and this imminent crisis requires immediate and unwavering attention, Mashatile said.
Mashatile, however, told delegates that young people must take the lead in driving economic growth and employment.
“On our end, we have created a favourable environment to support youth to become successful entrepreneurs with flourishing businesses,” he said.
He warned that if the country does not make a concerted effort to invest in the growth of its human capital, and train young people to acquire more marketable skills, “we will not be able to create a nation that is competitive relative to the rest of the world.”
“We need to make sure that young people get the kind of education and training they need to adapt quickly to the workplace of the future,” he said.
Mashatile urged business leaders to work with the Government to develop skill-based initiatives that can meet the urgent needs of the economy.
Government cannot do this alone, as Government is not an employment creator, but rather ensures that there is an enabling environment for the private sector and other actors to create employment, he said.
The best way to resolve unemployment is for businesses to expand initiatives that provide work experience for young people; and offer support, finance and market opportunities for young entrepreneurs.
“Regarding the grants we provide, we must ensure that they are attached to long-term economic outcomes, such as employment, sustained growth, and skill development,” he said.
The following were announced as the NYDA Grant Programme achievements for the 2022/23 fiscal year:
• 2320 youth and youth-owned enterprises funded,
• 34209 youth and-youth owned enterprises supported with non-financial development interventions,
• 6796 jobs created and sustained through supporting entrepreneurs and enterprises.
Mashatile said this shows that the government is working towards economic transformation for young people.
This is also evident through the 2020 Presidential Youth Employment Intervention (PYEI).
This intervention aims to realise rapid gains by linking more young people to new and existing opportunities and to create 2 million jobs for young people in the course of a decade.
Among other things, the PYEI brings together a wide range of partners, and breaks down silos between government departments, among the different levels of government, and between government and the private sector.
INSIDE POLITICS
