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Our province continues to work tirelessly to stimulate economic growth to fight against poverty and inequality.
We must confront the sobering reality reflected in the latest quarterly Labour Force Survey results showing an increase in unemployment, when we lost 32,000 jobs in the fourth quarter of 2025.
Even though we lost these jobs, the trade sector added 23,000 jobs as activity picked up towards year-end, utilities grew by 6,000 jobs, a notable rise given its small size, and private households added about 1,000 jobs.
Despite these difficult statistics, we remain steadfast in our commitment to reverse this trend.
The Eastern Cape has immense potential and together we must unlock it.
We are creating pathways to jobs for our people focusing on skills transfer, entrepreneurship, integrating digital skills, the green economy and artisan training.
As we speak, about 14,696 people of the Eastern Cape are benefiting from the Labour Activation Programme (LAP) of the department of employment and labour.
We are pushing to onboard 8,300 more people in the LAP programme in 2026.
In addition, 28,479 young people are participating in the Basic Education Employment Initiative.
Our priority is to ensure that every infrastructure project in the Eastern Cape continues to create jobs and business opportunities for locals.
In the road infrastructure projects under implementation, more than 7,500 people are employed, of whom 3,400 are young people.
The support provided to SMMEs and co-operatives by the Eastern Cape Development Corporation yielded 2,939 jobs.
To address youth unemployment, we must think outside the box.
E-commerce is growing in our province, and it presents opportunities for entrepreneurs and job opportunities for the youth.
In addition, more people are now using Sixty60, UberEATS, Takealot, Mr Delivery, Loot and Temu to buy goods.
In partnership with digital platforms, business and municipalities, we will train, license, equip and onboard young people as last-mile delivery operators.
Customers who want a Kota Culture Wrap from Mdantsane or iTshisanyama from eMbuqe must be able to get it delivered conveniently wherever they are.
We are repurposing the Expanded Public Works Programme to empower our people with trade skills such as bricklaying, plumbing, welding and carpentry.
In 2025, public employment programmes implemented by government departments and municipalities created more than 103,000 work opportunities benefiting mostly women and youth.
We continue advancing skills development through targeted investments and strategic partnerships to prepare young people for jobs in a modern economy.
Together with the National Skills Fund, we are attending to the glitches that affected the training programme where participants were not paid.
To date, 2,949 beneficiaries are participating in this programme and are receiving their stipends.
I must add that 2,000 of these beneficiaries are TVET College students who are doing experiential training, a prerequisite for them to graduate.
An exciting investment that will change the trajectory of skills development has landed in the Ntabankulu Local Municipality.
Kia Motors, in partnership with Ingwe TVET College, is establishing a manufacturing and service plant within the college precinct.
Operations of the plant will entail manufacturing and assembling of some car components and servicing cars.
The completion of the Aliwal North Engineering Campus of Ikhala TVET College in 2025, through an investment by the National Skills Fund, has significantly expanded access to quality engineering training, particularly for young people in rural communities.
MerSETA partnered with AE Manufacturing in Gqeberha to skill, reskill and upskill more than 1,200 beneficiaries in critical trades such as shielded metal and coded welding, supporting the Eastern Cape’s industrial capacity and job creation.
Sanral’s Technical Excellence Academy supported 103 engineering graduates, 55 of whom are already registered with professional bodies.
AIDC-EC and MerSETA implemented an Artisan Recognition of Prior Learning Programme (ARPL) for motor mechanics and panel beaters and 46 mechanics acquired a Red Seal certificate, which signifies trade competence of an international standard and often leads to better jobs.
One of the beneficiaries of the ARPL programme is Samela Dayeni from Mthatha, a mechanical engineering graduate from King Hintsa TVET College who converted her practical experience in motor mechanics into a recognised occupational status earning herself Red Seal certification.
We are doubling our efforts to confront the youth unemployment crisis by repurposing the province’s Centre for Investment and Marketing as a dedicated and resourced Training and Skills Development Agency.
In partnership with municipalities, business and civil society, the agency will anchor learnerships, apprenticeships, internships and enterprise support to ensure that training and skills development translate into work experience, income and sustainable livelihoods for our young people.
In the ongoing roads construction projects we are implementing with Sanral, 2,078 businesses owned by black people received contracts to the value of R20.5bn.
With the South African economy still in the hands of a few, local procurement remains a viable government vehicle to ensure that black-owned businesses benefit from preferential procurement opportunities.
The provincial government has spent R11.3bn on goods and services in the current financial year. Of this amount, R9.6bn (84.6%) was spent on designated groups.
Women-owned businesses benefited by R6.6bn, youth-owned businesses got R2.3bn, businesses owned by people with disabilities got R379m and military veterans’ businesses received R258m.
In advancing community-based job creation, in 2025 the department of small business development funded 39 co-operative projects, including the Cingisita Agri-Business Primary Co-op, Zamukurhila Farming and Construction Co-op and Siyalima Asidlali Co-operative.
The AIDC-EC approved and financed 36 MSMEs with state-of-the-art equipment, diagnostic tools and hoists, assisting them to be competitive.
Isisa Motor Clinic received its equipment, and Dent Boutique is also fixing cars with the newly installed equipment provided by this government.
- Oscar Mabuyane is premier of the Eastern Cape, a member of the provincial legislature and provincial chair of the ANC.
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