Practical Upskilling Methods for Unemployed Youth in South Africa
This Duja Consulting paper unpacks urgent, evidence-based strategies to tackle South Africa’s youth unemployment crisis through practical upskilling methods.
With over 43% of youth unemployed—and even higher figures among those aged 15–24—this white paper outlines how targeted, industry-aligned interventions can create real employment pathways for South Africa’s young people.
Practical Upskilling Methods For Unemployed Youth in South Africa is essential reading for policymakers, NGOs, educators, and business leaders seeking scalable, collaborative solutions to drive inclusive youth employment.
Key takeaways include:
TVET That Works: Strengthening Technical and Vocational Education and Training (TVET) to equip youth with practical, job-ready skills that meet industry needs—especially in mining, agriculture, and manufacturing.
Work-Based Learning at Scale: Expanding apprenticeships, learnerships, and internships to bridge the gap between training and employment. SETAs and companies are successfully aligning these with real job roles.
Digital Skills for the Future: Integrating foundational digital literacy into training, from coding and AI to digital entrepreneurship—ensuring youth are employable in a 4IR-driven economy.
Supporting Youth Entrepreneurs: Investing in entrepreneurship training, funding, and mentorship via the NYDA, private sector, and NGOs to help young people become job creators.
The Power of Partnerships: Public-private collaborations, aligned with national frameworks like the PYEI, are vital to connecting training with employment opportunities.
Success Stories Are Emerging: Models like YES, Harambee, the MTN Foundation, and the Western Cape BPO Project are already delivering results—demonstrating that with the right support, youth can thrive.
Inclusion Must Be a Priority: Effective programmes include wraparound support (like transport, stipends, and mentorship), and focus on reaching rural communities and young women.
This paper provides a roadmap to unlocking South Africa’s demographic dividend. By scaling what works and strengthening collaboration across sectors, we can build a more equitable and resilient economy.
Introduction
South Africa faces a critical youth unemployment crisis, with over 43% of young people (ages 15–34) unable to find work. The employment challenge is even more dire among those aged 15–24, where the unemployment rate exceeds 63%. The situation persists despite the country’s diverse and robust economy, where key industries such as mining, finance, manufacturing, agriculture, and services drive the majority of the country’s GDP. Bridging the gap between an eager young workforce and these thriving sectors requires strategic, targeted intervention.
This White Paper explores practical, implementable upskilling methods aimed at preparing unemployed youth for productive roles in South Africa’s leading industries. This report is intended for policymakers, Non-Governmental Organizations (NGOs), educators, and institutional stakeholders, outlining real-world skills development approaches – ranging from technical and vocational training to entrepreneurship and digital inclusion – supported by relevant South African case studies and youth development programme examples.
1. South Africa’s Youth Unemployment Challenge and Key Industries
Youth unemployment in South Africa remains one of the country’s most pressing socio-economic challenges. Each year, roughly 1.2 million young people enter the labour force, yet more than 65% remain outside unable to secure employment, with many falling into the category of Not in Employment, Education, or Training (NEET). This reality contributes to persistent cycles of poverty, inequality, and social exclusion. High youth unemployment is a structural problem linked to skills mismatches and barriers to entry in the job market.
At the same time, South Africa’s economy is powered by several major industries that could absorb skilled youth. The services sector contributes approximately 73% of GDP, with finance, real estate and business services alone contributing over 21.% – other major sectors include manufacturing (13.9%), mining (8.3%), and agriculture (2.6%) each offering significant opportunities for youth employment if the right skills are developed. It is a well-documented fact that a major contributor to youth unemployment is the mismatch between the skills young people possess and those demanded by employers operating in these key sectors.
Many school leavers and graduates lack both technical and workplace-readiness skills, limiting their ability to access jobs in high-demand sectors. This underscores the need to strengthen demand-driven, practical skills development- and workplace readiness programmes that align more closely with labour market requirements. Creating stronger links between education, training, and industry is essential alleviate youth unemployment. Equipping youth with relevant competencies in sectors such as digital services, artisanal trades, agribusiness, logistics, renewable energy, and automated manufacturing can unlock new employment pathways. These industries are not only growth drivers but also offer significant potential for inclusive and sustainable job creation.
The following sections of this report discuss targeted upskilling methods to achieve alignment between skills supply and demand.
2. Strengthening Technical and Vocational Education and Training (TVET)
Enhancing technical and vocational education remains one of the most effective strategies for equipping the country’s youth with job-ready skills particularly for sectors such as manufacturing, mining, and agriculture. The South African government continues to invest in Technical and Vocational Education and Training (TVET) college system to expand access to practical, industry-aligned training that responds directly to labour market needs. TVET institutions specialise in technical disciplines and trade-based skills– offering programmes in areas such as electrical engineering, welding and Agritech, etc. – all of which are essential to the functioning and growth of key sectors within the economy. Through ongoing efforts to expand and modernise the TVET curricula, policymakers aim to close the skills gap while creating clearer pathways into artisanal and technical professions for young people. A national priority has been set to increase the annual output of qualified artisans, with the objective of producing thousands of skilled graduates each year to support the country’s infrastructure development and industrialisation agenda. These interventions not only address the immediate needs of employers but also contribute to building a more inclusive and resilient economy.
Importantly, TVET programmes are increasingly developed in consultation with industry partners to ensure alignment with current labour market demands. Sector Education and Training Authorities (SETAs) play a pivotal role in this process by supporting programme content development, identifying critical skills shortages, and defining occupational competency standards across key sectors. Courses in fields such as mining engineering, construction, automotive repair, and other technical disciplines are guided by SETAs to meet industry needs and specific employer competency standards. As a result, a graduates from a mining-related TVET programmes for example may acquire certified skills in occupational health and safety, machinery operation or other job-specific competencies that match entry-level roles in mining and mineral processing operations.
Recent trends in curriculum design increasingly highlight the integration of Fourth Industrial Revolution (4IR) technologies within vocational training programmes. TVET institutions are now incorporating practical training in drone technology for agriculture, automation in manufacturing, and other digital innovations, equipping youth with the skills needed to adapt to rapidly evolving industries. These advancements are strategically positioning TVET graduates to enter and thrive in emerging job markets. Looking ahead in 2025, technical and artisanal training is anticipated to play a critical role in preparing young people for skilled employment, while also contributing significantly to addressing South Africa’s youth unemployment crisis.
South African case studies illustrate the effectiveness of strengthened TVET curriculum and vocationally directed training in enhancing workforce readiness and aligning education with the skills demands of industry:
- In the mining sector, for example, companies have partnered with training academies to prepare local youth for employment. one such example is Murray & Roberts Cementation (a leading mining contractor) which has collaborated with various mines to train unemployed youth as miners and artisans. These programmes integrate classroom-based instruction with practical underground experience, resulting in job-ready candidates with industry-recognised competencies.
- In the agriculture sector, provincial initiatives have equipped young people with modern farming techniques and Agri-processing skills, contributing to improved productivity and enhanced youth livelihoods. These interventions are particularly valuable in addressing youth unemployment in rural areas while supporting food security and local economic development.
These examples underscore that well-structured vocational education, when aligned with labour market demand can successfully transition unemployed youth into productive roles across various sectors of the economy. The combination of industry collaboration, hands-on training, and relevant curricula forms a replicable model for broader skills development efforts nationwide.
2.1 Workplace-Based Learning: Bridging the Gap Between Training and Employment
Despite completing formal education or training, many young South Africans face difficulties transitioning into the workforce due to a lack of practical experience. To address this gap, workplace-based learning programmes—including apprenticeships, learnerships, and internships—have emerged as essential pathways for building job readiness and professional confidence.
- Apprenticeships, provide youth with structured, long-term opportunities to develop technical skills in real-world work environments such as manufacturing plants, retail outlets, construction sites, and farms. Participants are mentored by experienced professionals and gain hands-on experience, learn workplace conduct, and often receive a stipend, making the transition into employment smoother and more sustainable.
- Learnerships, which follow a similar model, combine theoretical classroom instruction with on-the-job training, and typically result in a nationally recognised qualification. These programmes form a core pillar of South Africa’s national skills development strategy and are supported by the Quality Council for Trades and Occupations (QCTO) in partnership with Sector Education and Training Authorities (SETAs). Learnerships are designed to align training with sector-specific occupational requirements, ensuring that candidates possess both the knowledge and practical experience needed by employers.
- Internships offer additional opportunities—particularly for recent graduates—to apply their academic knowledge in professional settings for a fixed period, often within corporate, government, or NGO environments. While internships may not always lead to a qualification, they are critical for exposing young people to workplace culture, building networks, and improving employability.
Together, apprenticeships, learnerships, and internships form a comprehensive, Work-Based Learning (WBL) ecosystem that not only builds technical competence but also strengthens soft skills such as communication, teamwork, and punctuality—attributes often cited by employers as lacking among first-time job seekers. Scaling up these programmes across sectors is crucial to boost youth employability, support skills alignment with industry demand, and advance inclusive economic participation.
Examples from Sector Education and Training Authorities (SETAs):
- BankSETA (Banking SETA) supports learnerships in banking and microfinance, targeting unemployed youth and matriculants. Between 2022 and 2023, BankSETA funded over 6,000 learnerships and internships, many of which resulted in permanent placements in financial institutions. Programmes such as the Letsema and Kuyasa Learnerships continue to build a pipeline of young professionals entering the banking sector.
- FASSET (Finance and Accounting Services SETA) focuses on finance, auditing, and tax. In its 2022/23 annual report, FASSET reported over 5,500 funded learnerships, including structured programmes with partners such as SARS and accounting firms. FASSET’s initiatives often include bridging programmes to assist graduates from disadvantaged backgrounds in preparing for high-skill professions such as chartered accounting.
- FOODBEV SETA (Food and Beverage SETA), responsible for food and beverage manufacturing, has invested in artisan development and technical learnerships, particularly in food processing, quality assurance, and plant operation. In 2023, the SETA funded over 2,800 learnerships and skills programmes, many delivered in partnership with large manufacturers and SMEs. These efforts are crucial in addressing skills shortages in the Agro-processing value chain.
- W&RSETA (Wholesale and Retail SETA) has prioritised youth employment through retail management, supply chain, and merchandising learnerships. Over 12,000 youth were enrolled in learnerships and internships in 2022/23, many in partnership with major retailers such as Pick n Pay, SPAR, and Shoprite. The SETA also supports entrepreneurship programmes to help young people start their own businesses in the informal retail sector.
These examples demonstrate that well-structured, sector-aligned learnerships and apprenticeships significantly enhance employability, support economic inclusion, and meet industry-specific skills needs. When implemented at scale, and with strong employer engagement, such programmes offer a sustainable solution to South Africa’s youth unemployment crisis.
Learnerships have been actively promoted through a collaborative effort between the e government and private sector, supported by targeted incentives designed to encourage participation and investment in skills development Companies across various economic sectors, e.g. finance, ICT, manufacturing, etc. can earn Broad-Based Black Economic Empowerment (B-BBEE) scorecard points or tax incentives by hosting learnerships for unemployed youth. This incentive-driven model has led to the widespread uptake of learnerships, which hundreds of companies actively to participating in these programmes. Learnerships typically span 12 to 18 months and cover a diverse range of disciplines. For example, a financial institution may offer a learnership in banking services or data analysis, while a manufacturing company might host apprentices in boiler-making or electrical maintenance.
These structured programmes blend theoretical instruction with on-the-job training, providing learners with both accredited qualifications and practical workplace experience. Crucially, beyond technical competencies, apprenticeships and learnerships also instil soft skills including, communication, teamwork, punctuality, and professional conduct which are critical for long-term career success. This holistic approach to youth development addresses a common concern among employers: the noticeable lack of workplace readiness among first-time job seekers. Equipping learners with both hard and soft skills, these programmes produce more confident, competent, and adaptable entrants into the workforce.
In recent years South Africa has seen positive outcomes from skills development initiatives aimed at enhancing youth employability. A leading example is the Youth Employment Service (YES) programme, launched in 2018. This large-scale initiative partners with businesses to create 12-month (one-year) work experiences for unemployed youth. As of March 2025, YES has facilitated over 182,000 cumulative job placements through partnerships with more than 550 companies, demonstrating the potential of incentive-driven, large-scale work experience programmes.
Another success is seen in the Business Process Outsourcing (BPO) sector particularly in call centres which has become a “beacon of hope” for youth employment. The sector is known for its structured on-the-job training programmes that require minimal prior qualifications. In the Western Cape, a BPO Skills Development Project places unemployed youth in 4–12-month call centre internships, combining formal training, workplace experience and mentorship. The programme mandates that at least 80% of participants receive job offers upon completion, making it a high-impact model for transitioning youth into sustainable employment. This kind of demand-led training pipeline demonstrates how structured work based learning programmes, including apprenticeships and learnerships can successfully transition youth into steady employment in the services industry and beyond. These initiatives align directly with key objectives outlined in the Presidential Youth Employment Intervention (PYEI) and the National Youth Policy (2020–2030), both of which call for scalable, cross-sector strategies that bridge the gap between training and employment.
Given the success of these youth development initiatives, there is a strong case for stakeholders to co-invest in replicating and scaling successful models such as YES and BPO-driven internships across all provinces. Embedding these into a national framework of incentives, support services, and sector alignment will enable broader access and more sustainable impact.
3. Digital Skills and Inclusion for the Modern Economy
In today’s rapidly evolving economy, digital literacy is a fundamental requirement for participation across most industries, including those traditionally perceived as manual or labour-intensive. 4IR is reshaping the nature of work in sectors such as finance, services, manufacturing and mining, etc. making it imperative for South African youth to be equipped with relevant digital skills to be employable. In response to this shift, education and training programmes are increasingly integrating Information and Communication Technology (ICT) skills into their curricula. These include basic computer literacy, coding, data analysis, and digital communication which are critical for success in a technology-driven economy. However, digital inclusion extends beyond careers in the tech sector. It involves empowering young people in all fields to use technology and digital tools effectively – whether it is a farmer using mobile applications (apps) to track market prices, a miner operating automated equipment, or an entrepreneur leveraging social media to promote and sell products. These capabilities enhance productivity, market access, and innovation across the economy. Promoting universal digital inclusion is therefore key to broadening opportunities and enabling youth to contribute meaningfully to South Africa’s economic transformation. Equipping young people with foundational digital skills not only addresses immediate employability concerns but also lays the groundwork for inclusive, future-ready growth.
3.1 National Efforts to Boost Youth Digital Skills
Multiple initiatives are underway in South Africa to boost digital skills development among youth and prepare them for participation in a technology-driven economy. The government’s National Digital and Future Skills Strategy emphasizes training in areas such as coding, robotics, and e-commerce targeting young people across the country to build a workforce equipped for the demands of the Fourth Industrial Revolution (4IR). At the basic education level, the Department of Basic Education has initiated integration of coding and robotics into the national curriculum. Pilot programmes were launched in selected schools from Grades R to 9, with the long-term objective of implementing the curriculum nationwide. This initiative aims to ensure that learners acquire foundational digital competencies from an early age, laying the groundwork for digital fluency as they progress through the education system. These efforts reflect a broader recognition that early exposure to digital technologies is essential not only for employability but also for enabling innovation, adaptability, and lifelong learning in a changing global landscape.
3.2 Private Sector and Civil Society-Led Digital Skills Programmes
Outside the formal education system, the private sector and civil society have launched a range of innovative digital skills programmes. One noticeable example is WeThinkCode, – a tuition-free coding academy that trains youth from underprivileged backgrounds to become software developers. The programme operates in close partnership with corporate partners to ensure graduates transition directly into employment, thereby creating a seamless training-to-employment pipeline. Similarly, several major companies are investing in digital upskilling. The MTN Foundation’s “Digital Skills for Digital Jobs” programme is a prominent example, offering 12-month training to 900 unemployed youth, 100 participants from each province. The curriculum includes basic computing, coding, robotics, data analytics, and even artificial intelligence, positioning learners for entry-level roles in the IT and wider tech sectors. Importantly, the MTN programme takes a holistic approach to youth development. In addition to technical training, it includes modules on entrepreneurship, life skills and personal development, recognising that digitally skilled youth may also become innovators and digital entrepreneurs, not just job seekers.
These initiatives highlight the crucial role of non-traditional education pathways in closing South Africa’s digital skills gap and creating inclusive opportunities for youth in the digital economy.
3.3 Expanding Digital Inclusion and Access
Efforts to promote digital inclusion in South Africa increasingly focus on removing access barriers particularly in rural and township communities. These initiatives include the provision of devices, affordable internet connectivity, and digital literacy training to ensure that all youth regardless of geographic or social-economic background can participate in the digital economy. For example, public libraries have introduced free ICT training and Wi-Fi access specifically targeted at youth jobseekers. There is also a growing emphasis on gender inclusion, with programmes focusing on women in technology to prevent further marginalisation, ensuring young women are not left behind in the digital economy. These efforts aim to close both the digital divide and the gender gap, ensuring equitable access to future opportunities. The impact of such initiatives is promising. Many alumni of coding bootcamps and digital training programmes have successfully transitioned into tech jobs or launched freelance careers. Furthermore, digital skills are proving to be highly transferable across industries – a young person with basic coding knowledge or data literacy skills may find employment opportunities in a bank’s back-office operations, a retail company’s e-commerce department, or a mining company’s data monitoring team.
2025 is expected to see a significant portion of South African youth possessing foundational digital competencies, substantially enhancing their employability in a tech-driven labour market. To sustain and scale this momentum, stakeholders must continue expanding access-focused digital skills programmes to ensure no young person is left behind as the economy continues to evolve.
4. Supporting Youth Entrepreneurship and Small Enterprise
Not all young people will secure employment in existing companies – nor should they be limited to only that employment path. Youth should be encouraged to pursue alternative forms of economic participation, including Entrepreneurship. Starting a new venture presents a powerful opportunity for young people to create their own livelihoods, drive innovation, and even generate employment for their peers.
Recognising the potential of entrepreneurship to combat unemployment South Africa has expanded its training, mentorship, and funding programmes aimed at developing emerging young entrepreneurs. Equipping youth with business acumen and technical skills required to start new ventures, the country strengthens both individual economic agency and stimulates broader economic growth and job creation at community level. These efforts contribute to inclusive growth and job creation, particularly in underserved areas where traditional employment opportunities may be limited.
4.1 Youth Entrepreneurship Support through NYDA and Government Funded Programmes
A range of initiatives support youth entrepreneurship in South Africa with the National Youth Development Agency (NYDA) playing a central role. The NYDA administers a Grant Programme that provides aspiring young entrepreneurs with startup capital and comprehensive business development support. This support includes mentorship, business management training, market linkages, and consultancy services to help youth plan and grow sustainable businesses. For example, a young person with a passion for baking may receive a small-business grant to establish a home-based bakery, accompanied by training in bookkeeping and mentorship from an experienced business owner – thereby turning a side hustle into a viable, income-generating small enterprise.
In addition to individual business support, the NYDA and government actively promote youth cooperatives and social enterprises, especially in sectors such as agriculture where collective effort can enhance production, efficiency, and improve market access. These initiatives contribute to building a diversified and inclusive entrepreneurial ecosystem, especially in communities where traditional employment opportunities remain limited.
4.2 Private Sector and Civil Society Contributions to Youth Entrepreneurship
In addition to government-led schemes, the private sector and Non-Governmental Organisations (NGOs) play a vital role in advancing youth entrepreneurship in South Africa. Organizations such as Harambee Youth Employment Accelerator have extended their mandate beyond youth job placement to include support for micro-entrepreneurship, targeting young people who may not find formal employment but possess the potential to succeed through self-employment. A growing ecosystem of incubators and innovation hubs including platforms such as mLab and township-based tech hubs, offer entrepreneurship bootcamps, mentorship programmes and co-working spaces. These initiatives provide youth with the tools and environments to develop business ideas, particularly in the digital and services domain.
Corporate foundations are also contributing meaningfully. The SAB Foundation (backed by a major brewing company), hosts annual entrepreneurship competitions that identify and fund high-potential young entrepreneurs. Winners receive seed funding, mentorship and market exposure, helping to transform early-stage ideas into scalable businesses. Similarly, banks and telecommunications companies are investing in youth-led innovation by sponsoring hackathons, startup weekends, and other ideation platforms aimed at to encourage tech entrepreneurship among youth. These events not only stimulate innovation but also connect youth with networks of investors, customers, and industry leaders.
Together, these cross-sector efforts reflect a growing recognition that entrepreneurship is a viable and scalable pathway to economic inclusion, particularly for youth in underserved communities:
- SAB Foundation Social Innovation Awards: In 2024, the SAB Foundation awarded over R18 million to 23 outstanding South African tech start-ups through its Social Innovation and Disability Empowerment Awards. For instance, the Vusmuzi Initiative secured first place in the Disability Empowerment category, receiving R1.3 million in funding to advance their innovative solutions.
- Harambee Youth Employment Accelerator: Since its inception in 2011, Harambee has supported over 4 million young South Africans, facilitating 1.4 million opportunities in both formal and informal economies. These efforts have enabled young individuals to generate nearly R25 billion in income, significantly contributing to economic empowerment.
- mLab’s AI Mashup Hackathon: In November 2023, mLab hosted an AI-themed hackathon called the ‘AI Mashup’, bringing together youth from four provinces. Participants were tasked with solving problem statements using Microsoft AI services, competing for cash prizes. This initiative not only enhanced participants technical skills but also encouraged innovation and collaboration among young tech enthusiasts.
These examples underscore the significant impact of targeted support and investment in nurturing young entrepreneurs, leading to job creation, innovation, and economic growth within South Africa.
4.3 Entrepreneurship in Priority Industries: Sector-Focused Approaches
Special focus is given to entrepreneurship in priority industries. In the Agriculture sector, for instance, various programmes are training “agri-preneurs”, equipping youth with advanced farming techniques, business planning skills, and facilitating access to land or supply chain contracts. Initiatives such as the Agri-Youth Empowerment Scheme, implemented in several provinces, pairs emerging young farmers with commercial mentors and helps them launch small agribusinesses such as poultry farms or vegetable greenhouses, etc. to supply local markets. In the services sector, many young people are starting micro-enterprises in catering, transportation, and retail. These ventures are often supported by municipal initiatives that ease regulatory by-laws, provide trading spaces and promote access to local markets for informal traders. Even in mining areas, the private sector is contributing meaningfully to youth entrepreneurship. For example, Glencore’s Portable Skills Training Programme has given over 3,000 young participants life-changing skills in transferable trades such as welding, carpentry, and electrical work, enabling them to access the job market or start their own service businesses that are not mine-dependent to support their families.
Such initiatives as highlighted by these examples, offer a dual benefit: they enable young people to become economically self-reliant while also creating employment and essential services within their communities—particularly in rural and under-resourced areas.
4.4 Addressing Barriers to Youth Entrepreneurship
To maximise impact, effective entrepreneurship programmes also address the systemic barriers young founders commonly face: lack of networks, limited access to credit, or market information. Targeted initiatives including micro-loans or linking youth to larger supply chains (for instance, a supermarket chain sourcing from youth-led farms) play a critical role in supporting youth-led ventures. Overall, promoting youth entrepreneurship offers a practical and inclusive strategy to absorb segments of unemployed youth, particularly those with initiative, ideas and entrepreneurial potential enabling them to become job creators rather than job seekers. This approach not only contributes to economic empowerment at the individual level but also stimulates local job creation and service provision in underserved communities.
5. Multi-Stakeholder Partnerships and Initiatives
Addressing youth upskilling at the scale required in South Africa necessitates a coordinated, multi-stakeholder approach involving government, private sector, educational institutions, Sector Education and Training Authorities (SETAs) and civil society (NGOs). No single entity can address the challenge in isolation, and many of the most impactful programmes have emerged through strategic partnerships. A notable strategy is the expansion of Public-Private Partnerships (PPPs) that leverage the resources, expertise and networks of various actors to bridge the gap between formal education and employment. These collaborative partnerships enables development of training/skills development programmes to meet industry competency standards and that graduates have clear, supported pathways into the job market.
Sector Education and Training Authorities (SETAs) play a critical role within this ecosystem by facilitating sector-specific skills planning, supporting the Quality Council for Trades and Occupations (QCTO) in accrediting skills development providers, and funding work-based learning programmes (WBL) e.g. learnerships, internships and apprenticeships. Through close engagement with employers and training institutions, SETAs help align curriculum content with occupational qualifications for development of competencies required across all economic- and particularly priority sectors, thus improving the relevance and impact of youth upskilling initiatives.
5.1 Government initiatives
The South African government plays a central role in youth development through policy frameworks, funding mechanisms, and cross-sector coordination. A key initiative is the Presidential Youth Employment Intervention (PYEI) launched in 2020, which integrates multiple approaches – including skills development, training, employment services, and entrepreneurship support – into a unified national strategy aimed at creating sustainable employment pathways opportunities for young people. As part of this effort, government has taken steps to improve the alignment of basic education and Technical and Vocational Education and Training (TVET) with labour market needs.
Programmes such as the Expanded Public Works Programme (EPWP) and National Youth Service have also been expanded to provide short-term employment opportunities coupled with skills training in priority sectors such as infrastructure development, environmental services, and community-based healthcare. Another significant lever to alleviate youth unemployment is the Employment Tax Incentive (ETI), which lowers the cost of hiring young people by offering wage subsidies to employers. This mechanism encourages businesses to provide work opportunities to first-time job seekers who may lack formal experience, thus promoting youth participation in the labour market, giving each person a chance to prove themselves on the job.
5.2 Private sector involvement
South African companies are increasingly recognising that investing in youth skills is in their long-term interest. Many companies have established internal training academies or collaborate with NGOs and skills development providers including TVET colleges to train youth in relevant skills. In the financial sector, for example, the BankSETA funds internships and learnerships for finance graduates supporting employers in workforce development. In the IT industry, several companies partner with universities to offer certifications in software development, coding, and data analytics, contributing to the development of a future-ready digital workforce. In the mining sector, recent data reveals that approximately 72% of mining companies have increased their investments in training and development for both their existing workforce and local unemployed youth over the past year, reflecting a commitment to community upskilling as mines adopt new technologies (Impact HR, 2024).
The Youth Employment Service (YES) is a flagship private-sector-led initiative supported by the South African government. Participating companies offer one-year (12 months) work placements to unemployed youth, and in return, benefit from improving their B-BBEE scorecards, a mutually beneficial model that incentivises youth employment. Despite ongoing economic challenges, YES has reported the creation of over 182,014 work opportunities for young people since its inception, highlighting its role as a scalable and impactful intervention in addressing youth unemployment.
Beyond structured programmes, private companies also contribute through Corporate Social Investment (CSI) initiatives. For instance, technology firms may donate computers to rural training centres, while agricultural companies often fund on-site training for young emerging farmers within their supply chains. These initiatives reflect a growing understanding that private sector engagement is essential to bridging the youth skills gap and building a more inclusive economy. Such private sector-led initiatives complement public efforts and demonstrate how businesses can play a transformative role in closing the skills gap, reducing youth unemployment, and promoting shared value through inclusive economic participation.
5.3 Non-Governmental Organisations (NGOs) and educational institutions
NGOs often act as intermediaries connecting government, business, and youth to create pathways into employment. One of the leading examples is Harambee Youth Employment Accelerator, which collaborates with hundreds of employers to identify entry-level job opportunities and prepares marginalized youth to access these roles through short bridging courses (focusing on work readiness, basic numeracy/literacy, and interview skills). Harambee’s dual-sided model addresses both the supply and demand dimensions of youth unemployment. On the supply side, it screens, trains, and supports young people to enter the labour market. On the demand side, it assists companies in adapting hiring practices to become more inclusive of first-time job seekers. This approach has resulted in tens of thousands of successful job placements for young South Africans.
Educational institutions – beyond formal TVET colleges (public institutions ) private training providers as well as community-based organizations and sector-specific academies offering practical skills development programmes also play a crucial role. For instance, NGOs in the Western Cape have teamed up with the provincial government to run the aforementioned BPO training programme, each bringing different strengths such as recruitment networks and platforms, training capabilities, and industry linkages, to implement a demand-led model for youth development.
5.4 International Partnerships
International partners also add value, with agencies such as the GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) the main development agency of Germany implementing projects to promote digital career paths for South African youth, or the International Labour Organization (ILO) advising on apprenticeship systems. These strategic partnerships frequently bring global best practices and mobilise additional funding, enhancing the quality and sustainability of youth employment and skills development initiatives.
5.5 Enabling Effective Collaboration for Youth Skills Development
A defining feature of successful multi-stakeholder initiatives is alignment of goals: with all parties committed to empowering youth through skills development and meaningful employment opportunities. Ongoing dialogue between industry and training providers is essential to maintain curricula that reflect real-time labour market needs. Co-funding models such as government covering stipends while businesses provide training infrastructure – support long-term programme sustainability. Joint monitoring and evaluation (M&E) mechanisms involving both public and private partners, contribute to transparency and help track critical outcomes such as job placement rates whilst measuring impact and Return On Investment (ROI). These insights inform continuous improvement and strategic adaptation across interventions.
Collaborative approaches enable greater reach and impact in youth upskilling efforts than isolated efforts by individual stakeholders. However, persistent fragmentation in the ecosystem highlights the need to break down silos and streamline all national youth development initiatives making them accessible to the broader population rather than a select few. National coordination frameworks, including the Presidential Youth Employment Intervention (PYEI) and the National Youth Policy, play a pivotal role in advancing this goal by aligning actors, resources, and strategies across the public and private sectors.
An article titled “What to Expect in Youth Development in 2025″ by Duja Consulting, published on January 6, 2025, provides an insightful overview of anticipated trends and initiatives in South African youth development. It emphasizes the importance of equipping young individuals with the necessary skills and opportunities to thrive in the evolving job market. Key areas of focus include:
- Technical and Vocational Education and Training (TVET): Highlighting the government’s investment in TVET colleges to address skills gaps and prepare youth for technical and artisanal professions.
- Digital Skills Training: Recognizing the integration of digital literacy into educational curricula to enhance employability in a technology-driven economy.
- Entrepreneurship Programs: Encouraging entrepreneurial mindsets through training, mentorship, and funding to empower youth in creating their own employment opportunities.
- Public-Private Partnerships (PPPs): Emphasizing collaborations between government, private sector, and educational institutions to ensure training programs meet industry standards and facilitate job placements.
- Soft Skills Development: Incorporating competencies like communication and teamwork into education to produce well-rounded individuals ready for diverse work environments.
- Career Guidance and Counselling: Providing services to assist youth in making informed career choices aligned with market demands.
The article concludes that these comprehensive strategies are poised to create a more resilient and adaptable workforce, capable of meeting the evolving demands of the global economy.
6. Conclusion
South Africa’s persistent youth unemployment crisis requires strategic, scalable, and evidence-based practical upskilling interventions that translate into real employment and economic upliftment opportunities. This report has reviewed several approaches and highlighted several key strategies that have shown measurable success in equipping youth with practical, in-demand skills and transitioning them into the workforce.
6.1 Key strategies
- Strengthening Technical and Vocational Education and Training (TVET) systems to reflect labour market needs.
- Expanding Work-Based Learning (WBL) programmes i.e. apprenticeships, learnerships and internships that combined technical- and on-the-job training for work experience.
- Building digital competencies to enable youth participation in the evolving technology driven economy.
- Supporting entrepreneurship to promote self-employment and small enterprise development.
Several programmes already demonstrate impact and offer models that can be replicated and scaled across regions and sectors:
- The Youth Employment Service (YES) has placed over 182,000 youth in one-year paid work experiences, using a co-investment model where businesses benefit from B-BBEE scorecard incentives.
- Harambee Youth Employment Accelerator has successfully placed tens of thousands of marginalised youth by bridging the gap between job seekers and employers, while helping companies adapt hiring practices.
- The Western Cape BPO Skills Development Project combines formal training and work-integrated learning in the call centre industry, with an 80% post-placement employment target, offering a replicable demand-led model.
- The MTN Foundation’s “Digital Skills for Digital Jobs” programme trains youth in IT, coding, robotics, and AI while embedding entrepreneurship and life skills—supporting both employment and self-employment outcomes.
- The NYDA Grant Programme supports young entrepreneurs with startup capital, mentorship, and training, enabling them to turn informal side hustles into sustainable businesses—especially in rural and township economies.
These initiatives and several others not referenced here, underscore the importance of partnership-driven delivery models where government, private sector, and civil society collaborate effectively. Success is most likely when training is practical, aligned with real job/employment opportunities, and includes wraparound support such as mentorship, soft skills development, and career guidance.
Importantly, equity and access must remain central. Successful programmes prioritise outreach to young women and men in urban, per-urban and rural areas reducing barriers through stipends, transport allowances, and flexible delivery.
Replicating and scaling what works—whether it is an automotive apprenticeship in Gauteng, an Agri-entrepreneurship initiative in Limpopo, or a youth tech incubator in the Eastern Cape can multiply impact nationwide.
Continued investment in data-driven monitoring and evaluation (M&E), alongside alignment with national frameworks such as the Presidential Youth Employment Intervention (PYEI) and the National Youth Policy, will be critical to realising long-term impact. These frameworks provide the strategic alignment of actors, resources, and interventions across government, business, and civil society to ensure greater coherence, impact, and inclusivity in addressing South Africa’s youth unemployment crisis.
6.2 A Shared Responsibility for Youth Empowerment
Policymakers have a critical role to play in investing in education reform and incentivising partnerships that create pathways from training-to-employment pipelines. NGOs and educators are positioned to drive innovation in outreach and pedagogy, that the most disadvantaged youth gain access to market relevant skills. Business stand to benefit by viewing youth development as a strategic investment opportunity, one that enables collaboration to build a future skilled workforce and enhances long-term national competitiveness.
South Africa’s youth population represents a demographic with the potential to fuel inclusive economic growth. Realising this potential depends on scaling up practical, proven upskilling methods that connect young people to opportunity. The challenge is urgent, yet the solutions are within reach as per the examples highlighted in this report. Through sustained commitment, coordinated action, and inclusive implementation, South Africa can empower its young citizens with the skills, confidence, and opportunities they need to build a more inclusive, equitable and prosperous economy.
References
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