South Africa Launches R1.9 Billion Programme to Create 50,000 Youth Jobs

Labour Minister Thulas Nxesi has launched a major new initiative in South Africa's Eastern Cape province aimed at tackling the country's high youth unemployment rate. The R1.9 billion National Labour Activation Programme, in partnership with the Unemployment Insurance Fund, plans to create over 50,000 jobs for young people through more than 33 projects.

The ambitious programme involves collaboration with the private sector, non-governmental organizations, and Sector Education and Training Authorities (SETAs). "The programme aims to drive economic growth in the province, as substantial economic growth and development are essential to address the country's high unemployment rate," Nxesi stated at the launch event. He emphasized that the government, working together with stakeholders, has a significant role to play in mitigating unemployment and creating and preserving jobs.

Why this matters: South Africa has one of the highest youth unemployment rates in the world, with over half of young people without work. Large-scale job creation initiatives like this are seen as critical to providing opportunities and hope for the country's youth, while also stimulating much-needed economic growth.

The National Labour Activation Programme represents one of the largest coordinated efforts between government and the private and non-profit sectors to date to tackle the unemployment crisis. With a focus on the Eastern Cape, one of South Africa's poorest provinces, it aims to make a substantial dent in joblessness while piloting a model for potential rollout to other regions.

The 33 projects span a range of industries and will provide not just employment but also skills training to boost the future employability of participants. Nxesi described the initiative as a vital step in government efforts, alongside economic reforms, to put South Africa's youth to work and get the economy back on track as the country emerges from the impact of the COVID-19 pandemic.

Key Takeaways

• Labour Minister launches R1.9B National Labour Activation Programme to create 50,000 jobs
• Programme aims to drive economic growth and address high youth unemployment in Eastern Cape
• Involves collaboration with private sector, NGOs, and SETAs to provide jobs and skills training
• South Africa has one of the highest youth unemployment rates globally, over 50% without work
• Initiative aims to pilot a model for potential rollout to other regions as country recovers from COVID-19