DONDO MOGAJANE: Business leaders must shake off apathy and act boldly on our youth crisis

The past month has served as a welcome celebration of the passion, potential and drive of our nation’s youth and their incredible contributions to our country. Yet, as Youth Month draws to a close, we cannot afford to allow this spirit of celebration to overshadow a harsh truth: our youth are in crisis.

Consider that nearly two-thirds of all South Africans are below the age of 34. However, the latest Stats SA figures reveal that a staggering 45.5% of youth are unemployed. That’s one in every two people between the ages of 15 and 34.

Equally troubling, given the scarcity of jobs, the 2023 Global Entrepreneurship Monitor report on South Africa showed that while 79.8% of adults viewed entrepreneurship positively, only 8.6% of youth between 18 and 24 were involved in entrepreneurial activities. This rose only slightly to 11.3% for those between 25 and 34, highlighting the stagnation in opportunities for youth and the very real risk that they will remain locked out of the economy.

As civil rights activist Benjamin Mays once said: “The tragedy of life is not found in failure but complacency.” And nowhere is this truer than in South Africa. So, as business leaders, it is time to recognise the danger, shake off the sense of complacency that the issue will be resolved elsewhere, and take bold action. Notably, youth employment is critical for our country to reap the benefits of our demographic dividends.

With a young and energetic population, we have the potential to unlock new innovations, improve human capital and skills pipelines for enhanced productivity and competitiveness, and create a stronger market for products and services. In turn, this will establish a more supportive environment for businesses and communities to grow and flourish.

The proportion of South Africa’s youth between the ages of 18 and 24 who were involved in entrepreneurial activities, according to the 2023 Global Entrepreneurship Monitor.

—  IN NUMBERS: 8.6%

On the human side, empowering youth with access to the relevant opportunities and support, and enabling them to create wealth for both themselves and their families, will provide them with hope and dignity, strengthen our country’s social fabric and promote greater stability. We must bridge the gap between the output of our education systems and the input needed within workplaces.

Businesses must partner with and assist educational institutions in developing current and future skills that will be demanded by modern organisations and industries, for example by lending input into curricula where needed or offering expertise as guest lecturers. Business leaders should also seek to implement structured internship and apprenticeship programmes that offer youth meaningful work experience from which to build successful careers.

These programmes should provide on-the-job training and mentorship for students at technical colleges and universities. For example, just as medical students are required to gain hands-on experience as part of their training, it is time we gave other students the same opportunities to perform shadowing and paid internships within relevant organisations.

This means opening the doors to private sector businesses and working closely with educational institutes. By allowing students to work part-time while they complete their studies, business leaders can provide youth with vital networking opportunities and help them overcome the requirement for relevant work experience when applying for jobs.

By allowing students to work part-time while they complete their studies, business leaders can provide youth with vital networking opportunities and help them overcome the requirement for relevant work experience when applying for jobs

But other barriers to entry must also be eliminated to create pathways for youth, and especially those from disadvantaged backgrounds. Work experience and formal qualification requirements must be discarded for basic entry-level positions where they are not needed. Youth can then be upskilled or trained while they are working. This is especially true in labour-absorbing sectors such as the manufacturing, retail, mining, agriculture and tourism sectors. Likewise, companies must make it easier for job seekers from rural centres to apply for positions, for example by limiting the number of interviews required or using digital platforms for interviews.

Additionally, while there is considerable public support for young entrepreneurs from agencies such as the National Youth Development Agency, the Small Enterprise Development Agency and the Industrial Development Corporation, access to finance and supportive business services remain significant obstacles. The private sector should play a greater role by establishing incubators and accelerators that offer seed funding, supportive services and networking opportunities for young entrepreneurs to turn innovative ideas into thriving businesses.

By taking these steps we can support youth in fulfilling their dreams and ambitions by helping them create viable careers and businesses. This is essential to driving inclusive economic growth that will meaningfully address poverty, unemployment and inequality, and ultimately change lives.

The key is to shake off any lingering apathy and to fully embrace the alarm and urgency of our current crisis. Only then will all business leaders within the private sector be motivated to take the steps needed to place our country on a more positive trajectory. Our future, and the future of our children, depend on it.

• Mogajane is CEO of the Moti Group and a former director-general at the National Treasury