The true test of national progress lies in whether growth reaches young people. Youth unemployment remains high at 43.8%, underscoring why the government has placed youth economic inclusion at the centre of its programme of action.
President Cyril Ramaphosa set out a clear political and economic mandate in his recent state of the nation address (Sona): expand employment, accelerate growth through reform, and build an economy that works for all.
More than 2.5-million job opportunities have already been created through the Presidential Employment Stimulus since inception in 2020, mainly for young people and women. Public employment programmes, including the Employment Services of South Africa, the Community Works Programme, the Expanded Public Works Programme and the Presidential Employment Stimulus, are being expanded to provide income support, skills development and pathways into long-term employment.
The Presidential Youth Employment Intervention recorded 294,530 earning opportunities secured through the National Pathway Management Network in the third quarter of 2025/2026. More than 11,000 young people gained workplace experience opportunities through partnerships with the private sector and higher-education institutions. More than 6,700 enterprise opportunities were provided to support youth entrepreneurship and the Revitalised National Youth Service continues to expand, with 132,784 young people placed in paid service opportunities to date.
The latest Quarterly Labour Force Survey confirms this early progress. The official unemployment rate declined to 31.4% in the fourth quarter of last year, down from 31.9% in the previous quarter. This is the lowest unemployment rate we’ve seen in the five years since 2020.
Employment increased by 44,000 to 17.1-million, while the number of unemployed South Africans fell by 172,000 to 7.8-million. These shifts matter. They signal movement in the right direction and reflect the impact of targeted interventions aimed at stabilising the labour market and expanding opportunity.
South Africa has regained its position as the largest economy on the African continent after four consecutive quarters of GDP growth. Over the past 12 months the rand has gained about 11.75% against the dollar. Our credit rating has improved, interest rates are coming down and consumer price inflation dipped to 3.5% in January.
At the centre of this progress is structural reform. Through Operation Vulindlela the government is removing the constraints that have held back economic growth for more than a decade. These reforms are not theoretical. They are producing measurable change.
In the electricity sector, reforms are improving energy security and supporting investment. Thousands of megawatts of new capacity have been added to the grid, strengthening reliability and laying the foundation for long-term energy security.
In logistics, reforms to ports and freight rail are improving efficiency and competitiveness. The concessioning of key port infrastructure and steps toward access on the rail network are unlocking investment, improving performance and reducing the cost of moving goods. This is critical for export growth and industrial expansion.
Visa reform is also delivering tangible results. Digital visa systems and streamlined processes are attracting scarce skills, supporting tourism growth and improving system efficiency. These are key drivers of economic activity in a globally competitive environment.
Water reform is advancing long-term security through institutional restructuring and improved infrastructure planning, while the next phase of Operation Vulindlela will focus on strengthening local government. This is the front line of service delivery and economic inclusion.
Education, skills and training systems are being strengthened to prepare young South Africans for work in a modern, competitive economy. Regulatory changes will make it easier for businesses to participate in the Youth Employment Service, unlocking further private-sector job creation.
These reforms matter because they build credibility. As reform credibility strengthens, investor confidence improves. As confidence improves, investment grows. And as investment grows, jobs follow.
These interventions are aligned to the future economy. Opportunities are being created in the digital and green economies, while agriculture and agriprocessing are opening new pathways for inclusive growth. Education, skills and training systems are being strengthened to prepare young South Africans for work in a modern, competitive economy. Regulatory changes will make it easier for businesses to participate in the Youth Employment Service, unlocking further private-sector job creation.
But reforms alone are not enough. They must translate into real economic opportunities for people, particularly young people. The government is therefore committed to upscaling existing youth programmes to ensure young people are adequately skilled, have workplace experience in sustainable jobs, and ultimately become industry leaders through entrepreneurship.
The message that emerged from the 2026 Sona, supported by the latest economic data, is clear: the country is steadily turning the corner. Confidence is improving and the foundations for inclusive growth are being rebuilt. Investment is strengthening. Employment is stabilising and opportunity is widening.
South Africa’s progress must be understood in context. The global environment remains uncertain and domestic challenges persist. Yet the fundamentals are shifting. Nations do not rise overnight. They rise through consistent and disciplined implementation of programmes and a shared commitment to progress.
South Africa is not yet where it wants to be, but the evidence is increasingly clear. The country is moving forward. With sustained work, expanding opportunity and investment in its youth, the trajectory is one of growth, inclusion and renewed national confidence as we build a nation that works for all.
• Mhlauli is deputy minister in the Presidency.
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