Youth Capital welcomes the announcement of the R2.5 billion National Youth Fund, led by the National Youth Development Agency (NYDA), as it reflects a commitment to invest directly in youth enterprises and to back young people who are creating their own work – especially in high-growth and future-focused sectors such as renewable energy, agriculture, manufacturing and the digital economy. The announcement comes as South Africa approaches the 2025 deadline for the G20 Antalya Goal, a commitment to reduce youth unemployment by 15%. Yet, progress has stalled, and the gap between policy promises and young people’s lived experiences remains wide.
South Africa’s young people continue to face one of the highest youth unemployment rates in the world, with nearly half (46%) of those aged 15 to 34 unable to find work. “We welcome the National Youth Fund as an important piece of the puzzle; it signals confidence in young South Africans as job creators. But we must keep in mind that structural challenges keep out millions of young South Africans, whose potential is being lost to an economy that hasn’t yet found space for them” says Buhlebethu Magwaza, Project Lead at Youth Capital, a campaign advocating for policy change to solve youth unemployment.
Not a silver bullet
However, the Fund should not be seen as a silver bullet for youth unemployment. South Africa’s young people are not a homogeneous group: not all have the same resources, risk appetite, or access to local markets needed to start or grow a business. For many, the barriers are structural: limited transport, finances, connectivity, mentorship, and networks, particularly in rural areas and smaller towns.
Youth Capital believes that while the National Youth Fund can play a catalytic role, its success will depend on how accessible, inclusive, and well-supported it is. To truly unlock its potential, the NYDA must ensure that:
- Awareness and accessibility go beyond urban centres, information about the fund reaches young people in all communities.
- Capability support such as mentorship, business-readiness training and market access accompanies financial support.
- Complementary pathways remain in place for young people who are not entrepreneurs; through education, public-employment programmes and skills development.
The NYDA must also outline a transparent application and reporting framework, with regular updates on uptake and outcomes and reporting disaggregated by gender, location, and sector. Transparency and accountability are important ingredients to promote young people’s trust in the NYDA.
At the same time, it’s important to remember that entrepreneurship is just one of the pathways available to young people. ‘We must remember that entrepreneurship isn’t accessible or desirable for everyone. The real measure of success will be whether the Fund reaches young people across backgrounds, from township innovators to rural graduates and whether it’s supported by the skills, mentorship, and markets that make small businesses sustainable” adds Magwaza. The Fund must be considered one of many tools that can help young South Africans build livelihoods. But a lasting impact will come from an ecosystem that recognises that different young people need different kinds of support and that all deserve a fair chance to contribute to the country’s growth.
“As we invest in entrepreneurship, we must equally invest in connection, inclusion, and opportunity so that no young person is left behind simply because of where they were born, or what resources they start with. The National Youth Fund is a welcome start, but the real breakthrough will come when every young person in South Africa has a pathway to work, study, or build something of their own – and the system around them makes that possible,” says Magwaza.
