Deputy President Paul Mashatile: Harambee Youth Employment Accelerator Engagement

Remarks by The Deputy President of the Republic of South Africa, H.E. Shipokosa Paulus Mashatile, during Harambee Youth Employment Accelerator Engagement, Harambee Office, Braamfontein, Johannesburg, 13 June 2025

Programme Director, Ms Zengeziwe Msimang;
Board Chairperson of Harambee Youth Employment Accelerator, Ms Tandi Nzimande;
Chief Executive Officer of Harambee Youth Employment Accelerator, Ms Kasthuri Soni;
Distinguished Guests;

And most importantly, the young people gathered here today;

Good Morning,

It is a privilege to address this gathering on a subject that is fundamental to South Africa's future: the potential of our youth to reimagine and reshape the country's economy and society.

The important topic of "Enabling Entrepreneurship as a Pathway to Youth Economic Inclusion", is most relevant as it seeks to contextualise what is an effective strategy for achieving economic inclusion that advantages both youth and the country.

As the Chairperson of the Human Resource Development Council in Government, I have made it our objective to reduce the scourge of poverty, inequality and unemployment through creating platforms for social partners to deliberate on the country’s skills and human capital development in order to address bottlenecks in the human resource development value chain.

We believe that providing young people with the skills they need to become entrepreneurs is crucial to our society's success, especially given the road we have travelled in reversing post-apartheid laws that barred the majority from participating in the economy.

This is a road that was paved by the youth of 1976. Today we are gathered here 49 years after the youth of 1976 courageously opposed legislation intended to marginalise them economically, and was designed to confine them to roles as ordinary labourers—“hewers of wood and drawers of water.”

Faithful to the call, the 1976 generation has gifted us the political freedom, which is important for democratic governance, human rights, and economic growth.

As we honour their contribution during this Youth Month, let their spirit shine within us, igniting our quest to forge a new economy—one that embraces all, guided by the talent, creativity, and brilliance.

Like the brave souls of youth in 1976, who stood against the chains of apartheid's cruelty, today's youth must rise, in quest of economic freedom. Together, we should confront economic inequality, unemployment, and a growing digital divide as well as navigate globalisation and rapid technological progress.

In South Africa, youth unemployment has reached crisis levels.

The latest Quarterly Labour Force Survey data delivered its bleakest message: that the expanded youth unemployment among young people aged 18–34 years has, in the first quarter of 2025, reached one of its highest points ever - at 56.3%. This is a continuation of the downward spiral trend that began in 2015 and was only interrupted by an even steeper fall during the COVID-19 pandemic.

Most of you gathered here today know all too well what it means to be without work – locked out of the economy and unable to earn an income. It is disheartening; it is discouraging, and it takes resilience and an enduring sense of hope to overcome.

Most importantly, it requires support from family, Government, the private sector and other stakeholders.

As Government, we are fully aware that this is not just a labour market issue; it is a social and moral emergency.

I am encouraged by many of you in the audience today who remain hopeful about yours and the country’s future.

I am encouraged by the several interventions currently underway as the Government leads the charge against youth economic exclusion in partnership with stakeholders from across society, including the Harambee Youth Employment Accelerator.

In our partnership, we must also address the issue of access to education in our country. There are 9.2 million young people in our country who are not in education, employment, or training.

Even more shockingly, this number is set to increase by approximately 600 000 annually. With the economy projected to grow only at 1.8%, we must accept that the formal economy is not growing at the rate required to absorb the large number of youth entering the labour market annually.

As part of a solution to this challenge, youth who are not in employment, education, or training should consider entrepreneurship as a viable pathway for employment and self-reliance.

Our National Development Plan: Vision 2030, places a strong emphasis on entrepreneurship and small businesses as crucial drivers of economic growth and job creation.

We need to collaborate to change the mentality of young people by bringing to light opportunities that are available for those who choose to pursue entrepreneurship.

Government offers various programmes to support young entrepreneurs, including financial assistance, business development services, and skills training.

Key initiatives include the National Youth Development Agency’s Grant Programme, and the Youth Challenge Fund.

To ensure increased access to funding, we have the Innovation Fund, which has already supported over 96 start-ups since 2020.

Moreover, we have recently launched the Transformation Fund worth R20 billion per year over the next five years.

The fund targets increased participation of Black-owned businesses and historically disadvantaged groups, focusing on enterprise and Supplier Development and Equity Equivalent Investment Programmes.

These funds will act as a catalyst to attract other funds and make more funding available to support Micro, Small, and Medium Enterprises.

Additionally, the Government encourages youth participation in the digital economy through initiatives such as the Digital Economy Masterplan and the National Digital and Future Skills Strategy.

These strategies focus on expanding digital infrastructure, developing digital skills, and fostering digital innovation. Through these programmes and initiatives, we are integrating youth enterprise into our economy.

This is why we are working with the private sector and civil society to scale up enterprise support, open procurement pathways, and remove red tape.

I believe that young entrepreneurs require more than hope and resilience to thrive.

They need policy support and access to capital and markets for their goods and services. And above all, they need a coordinated ecosystem that recognises that, by working together, we can do more to create an enabling environment for young people.

Legislation and regulation must not be a burden but rather an enabler. When crafted and implemented with purpose, they provide powerful frameworks that ensure fairness, protection, and opportunity whilst promoting growth.

This is why I am excited to welcome the passage of the Public Procurement Act of 2024. This legislation is not just a reform of how government spends; it is a powerful lever to connect young entrepreneurs to local value chains.

It prioritises localisation, enterprise development, and inclusive procurement, allowing young people to become suppliers, service providers, and solution-builders in our economy.

As part of assisting young entrepreneurs with quick turnaround on invoice payments, we have proposed a War Room on Clean Governance. Part of the main priorities of the Clean Governance War Room will be the prioritisation of the 10 to 15 day payment cycles and Transformative Procurement of small businesses.

Equally important is the National Small Enterprise Amendment Bill, which places youth entrepreneurship at the centre of our small business development strategy.

The Bill will improve regulatory coordination, ease compliance burdens, and ensure more targeted and efficient support for small enterprises, especially those owned by youth, women, and people with disabilities.

One of the most exciting announcements for youth entrepreneurs in recent months is the Spaza Shop Support Fund.

Government has committed R500 million to revitalise township and rural economies by supporting informal retailers, many of which are youth-led enterprises.

Let me be clear: this is not a handout. It is an investment in your potential.

Given the complexity and scale of the youth unemployment crisis, government understands that there is no silver bullet.

One game-changing tool in our arsenal to address youth unemployment is the SA Youth Platform, or SA youth.mobi which is a core component of the Presidential Youth Employment Intervention, a Government-led Public-Private initiative that seeks to leverage the strengths of sectors from across our economy to break the significant barriers that keep young people locked out of the economy.

Just last week, the 2nd of June 2025 marked the first day at work for 205 000 young people as part of the Basic Education Employment Initiative, making it the largest youth employment programme in South Africa’s history. The Basic Education Employment Initiative is in its fifth phase and is now funded by the Unemployment Insurance Fund Labour Activation Programme and the national government.

This national initiative is part of the Presidential Employment Stimulus and is implemented by the Department of Basic Education and the Department of Employment and Labour, as well as provincial education departments. With 22 000 schools in the programme, the Basic Education Employment Initiative truly has a national footprint – reaching every corner of this country, from rural areas to urban centres and beyond.

As I conclude, it would be remiss of me to not take this opportunity to thank you, the learners in this room who drive the contact centre, and Harambee for the role that you played as the recruitment platform for this incredibly successful phase of this ground-breaking initiative.

I am reliably informed that this team processed 17.9 million applications from 1.9 million unique applicants on SA youth.mobi in addition to handling over 800 000 interactions in just three weeks.

You accomplished this truly remarkable feat through your tireless efforts, working late night and early morning shifts throughout.

This is what we mean when we say; there can be no solution for the youth without the youth themselves. We are grateful to you for your efforts to empower other young people.

From the Spaza Shop Fund to the SA Youth Platform and the Basic Education Employment Initiative to the Township Economy Revitalisation Strategies, these are not isolated efforts.

They are part of a broader mission to build an economy that reflects the energy, creativity, and diversity of young people - an economy that moves forward and one that is powered by young people.

As we look ahead, let us imagine a world in which every young person has the opportunity to make their ambitions a reality, where entrepreneurship is more than a slogan but a way of life.

Let us work together to create an enabling environment that nurtures the entrepreneurial spirit and fosters a culture of innovation and resilience.

I wish you all a wonderful National Youth Day celebration on Monday.

I look forward to the National commemoration of this day programme in Potchefstroom, in the North West Province, under the theme “Skills for the Changing World – Empowering Youth for Meaningful Economic Participation”.

Let me end with the slogan I learned during my days as young person, which says, “uzoyithola kanjani uhleli ekhoneni”.

Thank you.