Deputy President Paul Mashatile: Solutions Exchange Conference

Programme Director, Ms Zengeziwe Msimang,
Minister of Employment and Labour, Mr Thulas Nxesi,
Chief Executive Officer of Harambee Youth Employment Accelerator, Ms Kasthuri Soni, 
Chief Executive Officer of Business Unity South Africa, Mr Cas Coovadia,
DDG in The Presidency, Mduduzi Mbada, 
Head of the Project Management Office in The Presidency, Mr Rudi Dicks, 
Advisors and Senior Officials in The Presidency and Government,
Leader from Business, Civil Society and Labour Present,
Distinguished Guests,
Members of the Media,

Good Morning,

It is a pleasure for me to be once again be engaging with Harambee since my visit to the Youth Employment Accelerator Centre in June this year. As I had emphasised during my previous visit on the importance of strengthening partnerships between social partners in addressing the challenge of youth unemployment, the Solutions Exchange Conference provides all stakeholders represented today with an opportunity to accelerate youth economic inclusion, in our quest of achieving an equal and prosperous society. 

In order to do this, we must appreciate the role of evidence in informing how we prepare for socio-economic transformation.

On Tuesday, the Statistician General of South Africa, Mr. Risenga Maluleke, presented the national census statistics. As of 2022, our population has risen to over 62 million people, having increased by 19.8% since 2011. The majority of our population, at 61.2%, is currently under 35 years old. This kind of population youth bulge has become a key characteristic in African countries. These statistics simply emphasising that we cannot speak about the future of Africa, without prioritising the youth. 
 
Alongside this phenomenon, is increased urbanisation. The national census revealed that provinces such as Gauteng and Western Cape, have seen a notable rise in migration, this attributed in part, to the economic opportunities that exist in these provinces in comparison to the other peri-urban and rural provinces.

The three main challenges that we are currently facing as a country are poverty, inequality and unemployment, with women, youth and people living with disabilities bearing the brunt of these nationally.

These challenges are further exacerbated by the reality of a growing population and socio-economic constraints that limit how Government can provide services and opportunities for South Africans.

Therefore, Distinguished Guests,

We are gathered here today, as leaders from Government, business and civil society because we believe in the youth of this country, whose contributions will be critical in shaping the future of South Africa’s economy.

There is evidence provided by Stats SA., that shows that the size of the economy, is now at pre-pandemic levels, with real GDP slightly higher than what it was before the COVID-19 pandemic. This is largely as a result of the collective response through the Economic Recovery and Reconstruction Plan that prioritises social compacts between Government, the private sector, and other social partners. 

An example of the social compacts we speak of, is the Presidential Youth Employment Intervention (PYEI), which is an innovative, multi-stakeholder partnership, that is targeted towards “a coordinated national strategy”, that is designed to give young people access to the labour market, through either employment initiation programs or entrepreneurship ventures.

The PYEI recognises that effective collaboration between stakeholders, such as Government officials, the private sector and civil society can resolve some of the socio-economic issues in a more sustainable way. 

Minister, 

We must never undermine the importance of our efforts through structures such as NEDLAC and others, because it is indeed through these social compacts that we can further develop our country, and empower South Africans. The journey to a prosperous South Africa through partnerships continues.

As Government we are encouraged by the pledges that we have signed with 115 CEOs, who are saying they are willing to help us in implementing some of the interventions we have undertaken towards socio-economic transformation

The Department of Employment and Labour, has spearheaded the National Pathway Management Network, which is a networking initiative that has brought together over 30 diverse partners to aggregate opportunities from across the economy. This network enables young people; to find earning and learning opportunities, enter the labour market and receive the support that they require to establish their own businesses at no cost.  

Compatriots,

The SA Youth platform launched by Harambee, through the National Pathway Management Network, has over 4.1 million young people registered, and is the largest platform in this network. This is an inclusive platform, that uses cutting-edge technology such as geo-mapping, which allows for youth to be matched with opportunities closer to their residence, thereby saving transport and other costs. 

It is indeed this niche innovation, that has made it possible for young people who live further away from the economic hubs, to also access economic opportunities, and kick-start their entry into the labour market.

Young people have been supported to secure over 1 million opportunities on the system, from over 1 000 opportunity holders. The system is clearly working for employers and young people alike!

My sincerest congratulations to all businesses involved in the SA Youth initiative, Harambee, partners involved in the Youth Employment Service, and all Government stakeholders on achieving this milestone. The commitment from all role players is indeed commendable. 

Our Government remains committed to increasing private sector investment in order to promote job creation. To accomplish this, we have facilitated an investment drive with an initial target of R1.2 trillion over a five-year period. We have since mobilised nearly R1.5 trillion in investment commitments, therefore exceeding this goal, and many of these investment commitments are expected to translate into actual employment.

These new partnerships between business and Government promise to strengthen economic recovery, and have potential to create hundreds of thousands of jobs in the energy, transport and logistics sectors. 

The South African economy currently employs 5.1 million youth, 3.4 million of whom are employed in the formal economy.

As it stands, 8.8 million young people are not in employment, education or training, we must therefore strengthen our resolve to scale up efforts by working with business, to create meaningful entrepreneurial support structures capable of absorbing large numbers in the labour market annually.

As we work closely with the business community to create jobs for our youth, we must not forget the power of entrepreneurship. The state has the responsibility to collaborate with business and the people in co-creating strong economies that enable development to occur.

 In a sense, the partnership between Government, Harambee and the private sector already provides a foundation on how to build an entrepreneurial state.

Over the past decade, the Gauteng Provincial Government has prioritised the revitalisation of the township economy, this has seen the growth of small businesses in the township, especially those led by women and youth. Government has indeed shown its capacity to support entrepreneurs, however this support should extend also to businesses that are innovative, using technology to drive profit whilst serving communities. 

The Special Economic Zones and Industrial Park Programmes have been key in further integrating youth into the economy through various funding entities within the Department of Trade Industry and Competition.

A good example of the impact of SEZ’s is the Khoebo Innovation Promotion Program (KIPP) KIPP, which is a commercialisation programme, worth over R41 million for newly developed technological or innovative products. The KIPP has in the financial year 2022/23 given 50% of this investment to youth owned companies. We commend this commitment to the inclusion of women, youth and other marginalised groups towards socio-economic transformation.   

Distinguished guests,

In order for us to make a meaningful dent in youth unemployment, we must employ a multi- pronged approach that focuses on entrepreneurship and inclusive hiring. We must be strategic in our approach to ensure that young people are learning new skills that are responsive to the demands of our economy, and are able to work when the opportunities arise.  

The youth of South Africa possess a remarkable ability to transform our society, their energy, enthusiasm, and fresh perspectives make them effective change agents for communities. To borrow from the words of the late President Nelson Mandela; “Young people are capable, when aroused, of bringing down the towers of oppression and raising the banners of freedom". As we journey forward to another 30 years of our democracy, may we be inspired by these words and together create opportunities for young people to thrive, and enjoy the fruits of the sacrifices made by President Mandela and his generation. 

In concluding this address, I wish to once again extend my gratitude to all public and private sector partners gathered here today, for the impactful work that you have undertaken to reach this significant milestone. As Government we remain committed to partnering with business and civil society organisations across the eco-system to give young people the opportunity to carve out a future for themselves and for South Africa.

Thank you.