Mashatile Urges Bold Youth Investment and Transformation at Inaugural Indaba

Deputy President Paul Mashatile has called for renewed urgency in transforming South Africa's economic landscape through youth empowerment, Black Economic Empowerment (BEE), and inclusive investment, describing young people as "the nation's most potent economic asset."

Speaking at the inaugural Youth Investment Indaba held at the Houghton Hotel in Johannesburg on Friday, Mashatile reaffirmed government's commitment to transformative economic policies that not only promote inclusivity but also position the youth as active drivers of South Africa's development.

The high-level event, hosted by the National Youth Development Agency (NYDA), brought together key leaders from government, the private sector, development institutions, and youth-led enterprises to advance dialogue and investment in youth-focused entrepreneurship and sustainable growth.

Driving Inclusive Economic Transformation

Mashatile reiterated that Black Economic Empowerment (BEE) and other transformation policies remain essential instruments for achieving equality and correcting the imbalances of the past.

"Government will continue to support the implementation of BEE laws and related frameworks to ensure that young Black entrepreneurs and businesses gain a meaningful stake in our economy," the Deputy President said.

He argued that far from being outdated, Broad-Based Black Economic Empowerment (BBBEE) has proven effective — particularly in sectors such as mining, energy, and manufacturing, where a growing number of Black-owned companies have emerged as industry leaders.

"South Africa and its youth need transformative policies," he stressed. "BEE is not just about redress — it is about building sustainable economic participation and ownership."

Public Procurement Act: Empowering Youth Entrepreneurs

Mashatile also spotlighted the Public Procurement Act 28 of 2024, which was passed by Parliament in May 2024 and signed into law by the President last year. The new law is designed to reform public spending, prioritise localisation and enterprise development, and open up government procurement to youth-owned and small businesses.

"The Act will help connect young entrepreneurs to local value chains and enable them to become suppliers, service providers, and solution builders within our economy," Mashatile explained.

He said the legislation will drive government's broader localisation agenda, ensuring that more contracts and economic opportunities benefit Black-owned enterprises, township businesses, and rural youth innovators.

Tackling Youth Unemployment: A Call to Action

Addressing the persistent crisis of youth unemployment, Mashatile cited alarming statistics: about 34% of South Africans aged 15–24, equivalent to over 3.5 million young people, are not in employment, education, or training (NEET).

"These statistics should concern us all," he warned. "They demand urgent collaboration across government, business, and civil society to build a workforce equipped for the demands of a modern economy."

The Deputy President emphasised the need to restructure education and skills development to match market demands, particularly in high-growth sectors such as digital technology, energy, agriculture, and creative industries.

Entrepreneurship as a Catalyst for Change

Mashatile underscored entrepreneurship as one of the most powerful tools to reduce unemployment and stimulate growth.

"Young people must not only seek jobs — they must create them. Government and its institutions must stand ready to support youth entrepreneurship," he said.

He highlighted the establishment of a R100 billion Transformation Fund, aimed at empowering Black-owned enterprises and youth start-ups through financial support, mentorship, and supply chain integration.

"This fund will expand access to finance, foster enterprise development, and stimulate youth-owned businesses that can compete in the mainstream economy," Mashatile said.

He also reaffirmed support for the upcoming National Youth Fund, a public-private compact that aims to pool resources to invest in youth enterprises and innovation ecosystems across the country.

National Youth Service and Industrial Participation

Mashatile commended the role of the National Youth Service Programme, led by the South African National Defence Force (SANDF), which is being expanded to include training and mentorship opportunities in agriculture, renewable energy, security, defence industries, and digital skills.

"The National Youth Service is not just about discipline and civic duty — it's about equipping young people to become industrialists and innovators in key growth sectors," he said.

The Deputy President further called for greater collaboration between schools, technical colleges, and the private sector to build entrepreneurial mindsets early on, ensuring that young South Africans view self-employment as a viable and respected career path.

Creating Space for Youth Voices

Mashatile urged institutions — both public and private — to elevate youth representation in policymaking, corporate boards, and civic forums.

"Young people deserve a seat at the table to ensure their issues are not just heard but acted upon," he said. "The youth voice — in workplaces, communities, and government — must be amplified through impactful policies and programmes."

He added that South Africa's future depends on inclusive participation, noting that intergenerational collaboration is essential for sustainable growth.

A Vision for an Inclusive Future

Mashatile's address concluded with a rallying call for collective action to unleash the full potential of South Africa's youth.

"As we launch the National Youth Fund and other transformative initiatives, let us inspire young people to start their enterprises," he said. "Let us also challenge private companies to invest in township and rural economies — to build hubs of opportunity, create employment, and unleash the boundless potential of our nation's youth."

He emphasised that transformation, localisation, and youth investment must be viewed not as short-term policy objectives but as strategic imperatives for South Africa's long-term prosperity.

"Empowering the youth is not a favour — it is an investment in the future stability, creativity, and competitiveness of our nation," Mashatile concluded.