President Cyril Ramaphosa has signalled government should consider new incentives to boost youth-driven job programmes, saying the country cannot tackle its unemployment crisis without rewarding companies that help create job opportunities.
Ramaphosa made the remarks when he delivered a keynote address at the Youth Employment Service (YES) 200,000 jobs milestone celebration at the Gibs business school on Thursday. He acknowledged businesses have long operated in an incentive-heavy environment and said it would be unrealistic to cut the supports.
“I wonder whether there is a better way to expand participation in programmes such YES without trying to completely wean companies off incentives,” he said
He said he asked the higher education minister to rethink and potentially transform the entire Seta system so it works hand-in-hand with organisations such as Harambee and IES. In his view, combining the systems could form the basis of a truly large-scale skills revolution.
“The government offers tax incentives for training, though not enough companies use them, and B-BBEE also rewards firms for offering learnerships and youth opportunities. If all of the mechanisms were aligned, I believe they could create a powerful engine for youth employment.”
The YES project celebrated a milestone by creating more than 200,000 work opportunities for young South Africans since its launch in 2018.
The programme reached into disadvantaged communities, with 74% of its participants coming from social grant recipient households. This has resulted in about 44,000 households moving out of poverty thresholds through youth employment.
Additionally, R1.61bn in cash has flowed into rural communities through youth salaries.
The recent G20 Leaders’ summit revealed South Africa has the highest unemployment rate out of the 19 countries, with the rate 530% higher. TimesLIVE previously reported the official unemployment rate rose to 32.9% from 31.9% in the final quarter of last year.
The project is partnered with ShopRite, BMW, Nedbank, Foschini and Toyota. CEO Ravi Naidoo said YES has become a critical catalyst in growing employment and promoting sustainable transformation.
“Moving forward, we want the project not only to focus on internships but on supporting its alumni, those who are starting their own businesses,” he said
Naidoo said the goal is to help their alumni become more impactful and to integrate YES into national sector strategies — digital, renewable energy, tourism and others — making YES a core part of the country’s talent pipeline.
He said transformation isn’t only about individuals succeeding; it’s also about creating thousands of capable, experienced people who can drive economic renewal.
“South Africa spends heavily on education, but without work experience the investment doesn’t translate into national growth. YES gives young people the real workplace exposure required to turn training into economic contribution.”
He said with continuous support from companies, YES can keep unlocking futures and delivering a far-reaching impact month after month.
TimesLIVE
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