Keynote address by Deputy President Paul Mashatile at the South African Youth Economic Council Gala Dinner, the Marriot Hotel, Melrose Arch, Johannesburg
Programme Director;
Young people of South Africa;
President of the South African Youth Economic Council, Mr Kanakana Mudzanani;
The Executive Chairman of the South African Youth Economic Council, Mr. Bonga Makhanyaa;
Minister of Social Development, Ms Lindiwe Zulu;
Captains of industry and leaders of business;
Good Evening,
Let me start by thanking Bonga Makhanya, who has insisted on my need to come and engage with the South African Youth Economic Council. This has demonstrated that you and your team are focused and determined, which is what the country needs. It needs young people who are patriotic and have a never-die spirit.
I would have been surprised if young people lacked ambition and innovative ideas. I noted two critical ideas and innovations from SAYEC, the Mvelaphanda Centre for Maths, Science and Innovations. I am also aware that through your investment arm, Lotsha Investments, you are working on investing in mining.
Having been a youth leader myself, I believe in harnessing the energy of the youth because you are the future. Hence, as the ANC-led government, we have put the issue of youth development high on our agenda since 1994.
I am, therefore, grateful for the opportunity to be present tonight as we acknowledge and commend the remarkable work of the exceptional young leaders and reflect upon the theme of "assessing government and private sector policies necessary for mass youth employment and business opportunities in South Africa," which holds great significance.
However there are few immediate issues that you have asked that I address. The first being the issue of energy availability factor. The Electricity Minister Kgosientsho Ramokgopa has assured me that power cuts will be drastically reduced by the end of the year. He told me that by December we will be producing 6,000 megawatts of additional power. He is focusing on maintainance hence from time to time we will be affected by loadshedding.
You have also raised the issue of investing in the mining sector. We agree with you that this is an important sector that we must teach our young people how to run and manage these industries, as they are the future and next generation of industry leaders.
The current state of the mining industry is not very impressive. We presently export raw materials, and we must create opportunities for youth-led manufacturing and industrial endeavours.
In addition, mining is a costly endeavour, necessitating the creation of more funding opportunities for youth interested in entering the mining industry. I urged the youth to interact with a variety of investors to provide more capital so that the youth can transform their ideas into reality and become producers and not just consumers.
In order to take advantage of existing opportunities, we should also engage in infrastructure initiatives and engineering-related endeavours. Youth must seize opportunities in infrastructure, energy, or any other field in which they are skilled.
Our traditional universities are among the best in the world; they turn out highly skilled graduates who, compared to their peers, have an easier time finding work.
This is why, through HRDC, which I chair, we prioritise training unskilled youth and expanding the technical and vocational education and training (TVET) system to guarantee that no young person is left behind.
In addition to equipping the younger generation with essential skills, it is imperative to provide them with the required support in their entrepreneurial endeavours, enabling them to progress from small-scale operations to larger-scale enterprises.
Our objective is to establish a company's environmentally and socially sustainable model with the capacity to generate employment opportunities for a larger number of young individuals.
Government and private sector should work together to develop innovative financing mechanisms, such as venture capital funds and microcredit programs, specifically targeting young entrepreneurs.
Providing financial support at affordable interest rates can enable them to start or expand their businesses, creating jobs for themselves and others.
We need a private sector that will be patriotic, one that will support South Africa's and the government's efforts to develop the people of South Africa by reinvesting capital and resources into productive assets and new industries.
We must create an enabling policy framework encouraging private sector investment in youth-focused industries. We must identify and promote sectors with potential growth and job creation, such as renewable energy, technology, creative arts, and tourism.
We strongly encourage enterprises, particularly young individuals, to actively participate in collaborating with the government in the generation of power and, more significantly, in supporting the enhancement of transmission capabilities. The current initiative undertaken by the government to involve the private sector presents a favourable prospect for businesses.
In conclusion, we must prioritise the creation of mass youth employment and business opportunities in South Africa. By implementing policies that foster entrepreneurship, enhance vocational training, improve access to finance, and encourage private-sector investment, we can empower our youth and pave the way for a prosperous future.
This theme serves as a compelling call for both the government and private sector to collaborate to evaluate and deliberate on strategies that can expedite the involvement of young individuals in the critical sectors of the economy.
As government, we value the role that youth and youth bodies, including SAYEC, play in moulding our nation's future and propelling its development.
Your energy, creativity, and determination possess the potential to unlock untapped opportunities within our economy.
However, like other countries globally, we face a critical concern whereby the youth are grappling with the challenges of unemployment or underemployment. Furthermore, some challenges are associated with effectively integrating young people into the economy.
It is worth mentioning that there is also a need for further development of the skills necessary to secure formal employment or establish successful business opportunities specifically tailored for youth.
The government has initiated several youth empowerment initiatives, such as the Youth Employment Service Programme in 2018, as part of the Presidential Youth Employment Intervention (PYEI).
The YES programme continues to experience significant growth and success as the country's largest social impact programme for job creation, assisting over 100,000 youth to access work experience.
This is a clear example of how much we can achieve through collaboration towards a common goal.
In addition, YES offers a comprehensive solution for businesses that want to create opportunities and improve their B-BBEE scores but cannot provide relevant work or space within their organisation.
In this case, YES's implementation partners recruit, contract, and manage the youth on behalf of the business for the entire year of work, including training and hosting costs.
These efforts are meant to help young people acquire the occupational skills they need to access income opportunities while shaping them into responsible members of society.
We further have programmes aimed at developing SMMEs, such as the Black Business Supplier Development Programme, which is meant for cost-sharing grants among black-owned small enterprises. This programme has improved the competitiveness and sustainability of small businesses to become part of the mainstream economy and create employment.
As part of supporting the designated groups, such as women, youth, and people with disabilities, we have introduced the National Informal Business Upliftment Strategy.
This strategy advances government priorities of speeding up growth and transforming the economy to create decent work and sustainable livelihoods through inclusive growth, especially for entrepreneurs in the informal economy.
We encourage young people with an aptitude for business to grab entrepreneurial opportunities and start enterprises relevant to their skills.
South Africa has a diverse economy with several promising sectors that entrepreneurs can take advantage of. The most significant economic sectors currently driving the economy are manufacturing, retail, financial services, mining, agriculture, tourism, and the green industry.
The green sector offers a range of possibilities for entrepreneurs interested in sustainable and environmentally friendly technologies and practices.
Some of the opportunities in the sector are in renewable energy, particularly solar, waste management, including recycling, and sustainable packaging. There are also opportunities to meet the growing demand for sustainable and energy-efficient building practices in South Africa.
Ladies and gentlemen, the difficulty does not stem from a deficiency in the availability of programmes or business opportunities. This pertains to our programmes' efficacy, expeditiousness, and widespread implementation.
In undertaking this task, it will be necessary also to consider and rectify instances of leakages within the public policy framework as they can lead to inefficiencies, misallocation of resources, and unintended consequences.
It is both inspiring and reassuring to see young people who are organised and eager for economic opportunities at SAYEC, and we hope that many young people from all corners of the country will be inspired by these initiatives to launch their own in their communities.
As a government, we remain committed to supporting and developing all young people, from SMMEs run by youth to students, professionals, and unemployed youth.
Consequently, we applaud the National Youth Development Agency (NYDA) and the Gauteng Enterprise Propeller, who have launched a R60 million Youth Enterprise Fund to support youth-owned businesses as part of the Integrated Youth Development Strategy that seeks to promote economic transformation, entrepreneurship, and job creation in Gauteng. We hope that other provinces will follow suit.
As the government, we recognise that the burning question of our time is the issue of youth and women’s participation in the economy. As such, we have, over the years, created specific institutions and departments that will focus on young people and women, such as the Department of Women, Youth, and People with Disabilities.
However, more still needs to be done to create an inclusive economy through the participation of young people. We must develop financial institutions that are more accessible to young people, especially those living in peripheral areas.
The Industrial Development Corporation is an excellent example of such an initiative, and it has been one of the key players in the creation of black industrialists in our country.
We can’t discuss funding opportunities and capital spending on youth without discussing skills development. Our Technical Vocational Education and Training (TVET) system and local colleges must adapt to the changing demands of skills as we transition to a more digital world.
We can bridge the gap between education and employment by offering practical skills training in sectors with high worker demand. Apprenticeship opportunities, industry partnerships, and vocational school investments can equip our youth with job-ready skills, making them attractive to potential employers.
To young people, I wish to leave you with these words of Frantz Fanon: "Each generation must, out of relative obscurity, discover its mission, fulfil it, or betray it."
It is clear that this generation wants to achieve economic freedom, and I believe that together, we will fulfil that mission to realise financial freedom for young people in our lifetime.
Let us work together, government, private sector, and society, to make this vision a reality for South Africa's youth.
I thank you.
