Opening address by Deputy President Paul Mashatile at the National Youth Development Agency Investment Roundtable, Raddison Hotel and Convention Centre, Johannesburg

Programme Directors;
Thank you NYDA Executive Deputy Chairperson, Karabo Mohale;
The Former Vice President of Gambia, Her Excellency Dr Isatou Touray;
Minister Nkosazana Dlamini-Zuma in absentia; 
MEC of Economic Development, Limpopo Province, Rodgers Monana;
Mr Themba Khumalo, Principal Advisor: Value Chains, AfCFTA Secretariat;
Traditional Leaders and Senior Government officials;
Statistician General, Risenga Maluleke;
Members of the Diplomatic Corps;
Heads of Missions High Commissioners and Ambassadors;
Distinguished Ladies and Gentlemen;

We consider it a great privilege to participate in this second NYDA Investment Roundtable discussion, which is being held under the theme, "Unlocking investments for human capital for an inclusive economy." 

This theme is derived from this year's Youth Month theme, which is "Accelerating youth economic emancipation for a sustainable future."

In today's rapidly evolving and extremely competitive global economy, we believe that investing in our youth is the key to a prosperous and sustainable future.

As a country, we need to pool the knowledge and resources of businesses, government, and civil society in order to unlock the full potential of our young people and create a sustainable and equitable economy.

In this regard, we are pleased that this Investment Roundtable has been successful in bringing key stakeholders on board to make deliberate commitments to contributing to young people's development through various investment channels. 

As we gather here and discuss over the next few days, it is crucial that we keep in mind our goals, which are as follows: 

•    To present pathways of market accessibility through the African Continental Free Trade Area (AfCFTA);
•    To advance the growth and development of SMME's through financial and non-financial support;
•    To increase capital investment towards youth development programmes; and
•    To create a platform to identify possible market linkages between young people and potential investors. 

These objectives are significant because they set the foundation of the National Development Plan (NDP), which is a strategy for ensuring the future prosperity of South Africans in accordance with the Constitution.

The NDP places an emphasis on the significance of inclusive growth by accelerating the rate at which young people are included in opportunities for employment and enterprise development. The following is an outline of what the NDP calls for:

•    Improving education and skill development, starting with improved basic education and early childhood development.
•    Strengthening competition laws to address unequal ownership and control, which maintains high barriers of entry and hinders the expansion of critical job-creating markets.
•    Increasing private-sector participation in public-dominated industries and building effective regulatory authorities to curb monopolies.
•    Providing support and incentives for labour-intensive sectors, including agriculture, agro-processing and tourism.

As a country, we are going through the most difficult period in the history of our democracy. 

We are faced with challenges ranging from an ongoing energy crisis to high unemployment rates, dwindling investor confidence and an economy that is not growing rapidly enough to meet our development goals. 

According to Stats SA, the youth unemployment rate reached 62.1 percent in the first quarter of 2023; nearly two-thirds of young people are not engaged in any form of viable employment; this is a ticking time bomb, and this imminent crisis requires immediate and unwavering attention from all of us.  

As a country, we need young people to take the lead in driving economic growth and employment. On our end, we have created a favourable environment to support youth to become successful entrepreneurs with flourishing businesses. 

We are committed to help in drawing more young people into the economy; firstly by addressing the mismatch between the skills needed by the economy and those possessed by young people. 

If, as a nation, we do not make a concerted effort to invest in the growth of our human capital, and train our young people to acquire more marketable skills, we will not be able to create a nation that is competitive relative to the rest of the world.

We need to make sure that young people get the kind of education and training they need to adapt quickly to the workplace of the future. 
We urge business leaders to work with the Government to develop skill-based initiatives that can meet the urgent needs of the economy.

Government cannot do this alone, as Government is not an employment creator, but rather ensures that there is an enabling environment for the private sector and other actors to create employment. 

We should all be expanding initiatives that provide work experience for young people; and offer support, finance and market opportunities for young entrepreneurs. 

Regarding the grants we provide, we must ensure that they are attached to long-term economic outcomes, such as employment, sustained growth, and skill development.

In light of this, we are pleased to announce the following achievements regarding the NYDA Grant Programme for the 2022/23 fiscal year:

•    2320 youth and youth-owned enterprises funded,
•    34209 youth and-youth owned enterprises supported with non-financial development interventions, 
•    6796 jobs created and sustained through supporting entrepreneurs and enterprises.

In addition, the National Youth Development Agency and the University of Sao Paulo have organised an Agricultural Summer School.

The "Tropical Bio-based Production Systems" Summer School seeks to provide an overview of the technologies, economics, and environmental scenario of Brazilian agriculture, forestry, and livestock farming through lectures and field trips. The University of Sao Paulo in Brazil hosts the School annually.

The NYDA will provide funding for four youths to attend the Summer School in Brazil. Upon their return, they will be expected to enrich South Africa with the skills they would have gained in Brazil.

We wish to congratulate the four participants that will be traveling to Brazil at the end of July. They are:

•    Ms Ntokozo Happy Msiza, 29-year-old PhD candidate in Animal Science at North West University. 
•    Mr Welcome Ntokozo Sifisosami Zondo, 26-year-old PhD candidate in Agriculture candidate from the University of Mpumalanga.
•    Ms Mmapula Lesailane, 27-year-old (Cum Laude) genetics graduate from University of Stellenbosch, working  in Tzaneen, and 
•    Mr Ramatolo Tlotleng, 33, an Advanced Diploma in Animal Sciences student at Tshwane University of Technology. 

We are indeed working towards economic transformation for young people. This is also evident through the 2020 Presidential Youth Employment Intervention (PYEI).

This intervention aims to realise rapid gains by linking more young people to new and existing opportunities and to create 2 million jobs for young people in the course of a decade.

Among other things, the PYEI brings together a wide range of partners, and breaks down silos between government departments, among the different levels of government, and between government and the private sector.

Ladies and Gentlemen,

Speaking of partnership, it is important that as a country we continue to value our partnership as signatory to the African Continental Free Trade Agreement (AfCFTA)

This groundbreaking agreement paves the way for young people in South Africa to engage different markets on the African Continent, but also provides opportunities for the exposure and development of human capital. 

It is thus important to invest in the building of capacity and support young people to trade on the Continent, but more so to provide accessible financial support. 

There needs to be diversified financial instruments that speak directly to the needs of young people, and we need to make the processes to access them less cumbersome.

Young people in rural communities should not be excluded because of the challenges they face. They should be supported and their talents and business acumen harnessed.

Addressing the challenges of rural communities is a big step towards creating an equitable society. The Spatial Economic Activity Data SA reveals that economic activities vary across the region with the largest cities lagging behind job creation compared to small towns since the 2013/14 tax year. 

It is therefore upon us at this NYDA Investment Roundtable to explore more investment opportunities in rural and peri-urban areas, in order to more equitably spread economic opportunity for our young people.  

By promoting competition and attracting private capital, states will be able to develop transportation networks, bolster internet connectivity, and surf the wave of digitisation sweeping across Africa.

The implementation of the AfCFTA must be supported by appropriate national policies and support programmes. This can play a pivotal role in making trade opportunities accessible to young people in both rural and urban areas. This will help countries to reduce the inequality gap.

Youth entrepreneurs can capitalise on trade agreements and frontier technologies to tackle systemic social issues, addressing societal needs and challenges globally, regardless of development level.

As young people are generally among the earliest adopters of new technologies, they are poised to take advantage of innovations in this area to drive the impact of social entrepreneurship.

Ladies and Gentlemen,

One other critical thing that we must also take into consideration is the mental health of our youth. To have young people who are engaged in economic activity, we need to ensure that their mental health is a top priority, and the National Youth Policy 2030 accordingly places a priority on the mental health of young people.

This also means that we must invest in resources such as therapy and support groups, making mental health care more accessible to all, and breaking down the barriers that prevent people from seeking care.

We must also accelerate the implementation of the NYP with regard to changing lives and dealing with the hardships that the youth experience due to unemployment and economic hardship.

Since the dawn of democracy, our government has embarked on reforms to drive transformation and inclusivity for young people, particularly through what started as the National Youth Commission (NYC) established on 16 June 1996 by former President Nelson Mandela. 

This was followed by the establishment of the Umsobomvu Youth Fund in 2001 to create entrepreneurship and job creation opportunities in response to the unemployment and economic challenges, which young people faced. 

The Umsobomvu Youth Fund was one of the largest investments the Government made to address the country’s youth unemployment challenges. 

Following the 2009 merger of these institutions to become the National Youth Development Agency or NYDA, it is your responsibility to ensure that both public and private sectors play a transformative role in bringing young people into the mainstream economy.

To further strengthen service delivery, promote nation-building, foster social cohesion, and assist the youth in acquiring occupational skills necessary to access sustainable livelihood opportunities, our Government has also established the National Youth Service Programme (NYSP), the largest service programme of its kind in South Africa. 

As we mark 20 years since the NYSP inception, we must reflect on how far we have come in our mission to instil a sense of national pride and pride in one's neighbourhood, teach young people life skills, and encourage community service that is based on volunteering.

The significance that the National Youth Service plays in reversing the adverse effects of youth unemployment and apathy was demonstrated by its inclusion in the State of the Nation Address, with the declaration that the revitalised National Youth Service will create a further 36,000 opportunities through non-profit and community-based organisations.

In the 2022/23 financial year, the following achievements have since been highlighted:

•    12172 young people who participated in NYS Expanded volunteer projects.
•    7247 young people who participated in the CWP Programmes. 
•    46320 young people who have secured paid service opportunities. 
•    34425 young people who have completed service activities.
•    7546 young people who transitioned out of the National Youth Service to other opportunities.

As I conclude, Ladies and Gentlemen, we have highlighted a number of different programmes because our Government is quite good at developing new regulations and programmes. 

What we are lacking is the ability to put our plans into action. 

We have to develop a discipline of getting things done.

Now, more than ever, our reputation depends on our persistent dedication to the efficient and successful implementation of policy. 

If we accomplish this, we will unquestionably alter our culture and establish a more equitable economic system for the benefit of our young people, which in turn will benefit the entire nation.

We wish you fruitful discussions during your Round Table discussions today.

I thank you.