Government of National Unity bodes well for reducing our staggeringly high youth unemployment rate

Everyone with an eye on the South African economy would have breathed a collective sigh of relief as news broke of the agreement between the ANC and DA, along with numerous smaller parties, to form a Government of National Unity. In particular, this should be a source of excitement and new hope for our youth. 

South Africans have learnt a bit about ourselves these past few weeks, and it’s been a very pleasant surprise. Despite the political noise, misinformation, expert opinions and fake news we’ve been bombarded with, our democracy has clearly matured admirably.

Our election process was largely free and fair, with none of the feared social disruption expected in some quarters. We no longer vote automatically for outdated and divisive political narratives, and the ruling elite will eventually be held accountable if they fail to deliver.

Perhaps most encouragingly – our youth came out in numbers to exercise the democratic rights so hard won by the previous generation. Conscientious, socially active youth – determined to have a say in their futures. 

South Africa stood poised at a critical inflection point, where events over the course of a few days would fundamentally change the trajectory of our economy. Despite the temptation for many to follow the populist path that would lucratively support personal interests (but inevitably deepen our economic crisis), what is instead emerging is a diverse but unified government that promises to protect our Constitution and advocate for market-friendly policies. 

While we should celebrate the maturity shown by political opponents to come together in the interests of the nation, the formation of a new government is only the beginning. The real work to craft a better future still needs to start, and the road ahead will not be easy, requiring hard work, sacrifice and a complete overhaul of government culture. 

The current (Q1:2024) national unemployment rate for youth aged 15–34 years stands at a staggering 45.5%. Nearly half of our largely youthful population across South Africa are not realising their potential or contributing to society and are completely lost to our economy. 

However, the Western Cape consistently shows better employment figures, and the situation is relatively better compared to the national average even though it remains a crisis.

The youth unemployment rate in the Western Cape is much lower at 32.6%,​ and approximately 80% of all new jobs over the past five years in SA were created here. There are perhaps some useful lessons to be learnt about how the government should be engaging business, and the organisational culture instilled in regional government by Premier Alan Winde will hopefully transfer to a large extent onto the new Government of National Unity. 

In the Western Cape, organised business has had the opportunity to work very closely with a stable and consistent Western Cape government for a number of years. The nature and tone of these engagements differ notably from similar engagements at a national level. This spirit of humility, collaboration and commitment to the regional economy has undeniably been working in this region. Together, we have developed robust working relationships allowing for the co-creation of economic development policies, and the numbers speak for themselves. 

Of course, it’s not only relationships that build economies, although a healthy dose of trust among key stakeholders certainly helps. A number of factors contribute to lowering youth unemployment in the region. 

The Western Cape has a more diversified economy, including strong agriculture, tourism, finance and technology sectors. There is a vibrant start-up community driven by innovative young leaders, and young gig workers from across the globe have made Cape Town their preferred home.

This diversity creates a wider range of job opportunities for young people,​ and there are specific initiatives by the regional government to bolster those sectors. We need to start playing to our respective strengths across all provinces with the explicit intention of identifying and supporting high-growth sectors – prioritised through sound research and analysis, rather than tender opportunities for the well connected. 

Education is also critical to ensuring a better future for our youth, and having several top universities and colleges in the Western Cape has contributed massively to an attractive talent pipeline for companies based in the province. As a nation, however, we are falling far behind and need to start treating both basic and higher education as the urgent crises they have become. 

Beyond creating jobs, we need to create employers, and the rest of South Africa would greatly benefit if the support for SMEs in the Western Cape could be replicated and amplified in other provinces.

We need to instil a sense of entrepreneurial ambition in our youth by providing young entrepreneurs with the resources and support needed to start and grow their businesses​. Herein lies an incredible opportunity for business, the government and educational institutions to work together in the interests of our youth.

By freely sharing learnings and insights around job creation initiatives – and supporting those with appropriate infrastructure investment plans, matched education curriculums and commercial private sector investments – we have the collective ability to give back hope and ambition to our youth. DM