Speech by the Deputy Minister in the Presidency Nonceba Mhlauli at the Presidential Youth Employment Initiative 4th Anniversary Event, University of the Western Cape

Programme Director,
Rector and Vice-Chancellor, Prof. Robert Balfour,
Distinguished representatives from government, academia, and the private sector,
Leaders from HSRC, SANLAM, ETDP-SETA, and our valued partners,
Colleagues, honoured guests, and the young people of South Africa,

It is a privilege to join you today as we mark the fourth anniversary of the Presidential Youth Employment Intervention UWC joint programme, and reflect on the important theme of empowering talent in a rapidly changing world of work. I would like to extend my appreciation to the University of the Western Cape and all partners for creating a platform that brings together government, academia, industry, and young people in a shared effort to address one of the most pressing challenges facing our country.

South Africa continues to face a deep and persistent youth unemployment crisis. Young people between the ages of 15 and 34 make up more than half of our working age population, yet far too many remain excluded from employment, education, or training. This is not only an economic concern. It is a structural challenge that reflects inequality, spatial exclusion, and unequal access to opportunity. When young people are locked out of the economy, the consequences are intergenerational. Households are weakened, communities are destabilised, and economic growth is constrained. When young people are brought into the economy, the opposite is true. We see increased productivity, stronger social cohesion, and a more resilient nation.

It was precisely in response to this crisis that government introduced the Presidential Youth Employment Initiative, working through the Presidency and in collaboration with a wide range of partners. The PYEI is designed as a coordinated national response to youth unemployment. It seeks to create pathways into the labour market, to provide young people with meaningful work experience, and to equip them with the skills required to succeed in a competitive and evolving economy. It is important to understand that the PYEI is not a single programme but a platform that brings together multiple interventions under a shared vision. It aligns public sector opportunities, private sector participation, and institutional support to ensure that young people are not left behind.

The strength of the PYEI lies in the breadth of its partnerships. Government provides the enabling environment through policy direction, funding, and coordination. Institutions such as universities and colleges play a critical role in preparing young people with foundational knowledge and skills. Research bodies like the HSRC contribute evidence and insight to improve programme design. Sector partners such as ETDP-SETA support skills development and training. The private sector provides the most crucial component, which is access to real workplaces where young people can gain experience and demonstrate their capabilities. This collaborative model recognises that no single sector can resolve youth unemployment on its own. It requires a whole of society approach.

In practical terms, the PYEI works by connecting young people to structured opportunities that offer both income and learning. Through initiatives within the Presidential Youth Employment Stimulus, young participants are placed in workplaces where they are able to develop practical skills, build professional networks, and gain confidence. They are supported through supervision and mentorship, ensuring that the experience is meaningful and developmental rather than temporary and transactional. At institutions such as the University of the Western Cape, this approach has already yielded positive results, with graduates transitioning into various sectors and careers after completing their placements. These outcomes demonstrate that when young people are given an opportunity, they are able to rise to the occasion.

As we reflect on the progress made, we must also look ahead with honesty and urgency. We have learned important lessons about what works, but we must now focus on how to deepen impact and extend it to many more young people.

Programme director, the recent Outcomes Finance Summit that the Presidency hosted here in Cape Town a few weeks ago, provided a useful lens through which to consider this next phase. A central theme that emerged from the summit was the need to move beyond inputs and activities, and to focus firmly on measurable outcomes. It is not sufficient to report on how many young people have participated in programmes. The critical question is how many have transitioned into sustained employment, how many are progressing in their careers, and how many are able to secure stable livelihoods over time.

The summit also highlighted the importance of new financing approaches that link funding to results. Outcomes based funding models create incentives for innovation, efficiency, and accountability. They encourage all partners to focus on what ultimately matters, which is whether young people are able to secure meaningful economic participation. At the same time, there was strong emphasis on the role of data and evidence. If we are to scale effectively, we must invest in systems that allow us to track progress, understand what works, and continuously improve programme design.

Another key takeaway was the importance of strengthening collaboration across sectors. Fragmentation remains one of the biggest barriers to scale. Too often, initiatives operate in isolation, leading to duplication in some areas and gaps in others. A more integrated approach, where government, institutions, and employers work in a coordinated manner, is essential if we are to achieve impact at scale.

These insights are directly relevant to how we think about the future of the skills system in South Africa.

The world of work is undergoing profound change. Advances in technology, the growth of digital economies, and shifts in global value chains are reshaping the nature of jobs and the skills required to perform them. Many of the roles that young people will occupy in the future do not yet exist, while some current roles will evolve or disappear. This requires a fundamental shift in how we prepare young people for the labour market.

We are therefore working towards a skills system that is more responsive, more flexible, and more closely aligned with economic demand. This includes strengthening the link between training provision and labour market needs, so that young people are not trained for opportunities that do not exist. It includes embedding work integrated learning as a core component of education and training, ensuring that young people gain practical experience alongside theoretical knowledge. It also includes expanding access to digital skills and emerging competencies, while reinforcing foundational capabilities such as literacy, numeracy, problem solving, and communication.

Equally important is the need to create clearer and more accessible pathways between learning and earning. For too many young people, the transition from education into employment remains uncertain and fragmented. We must build systems that allow young people to move more easily between different forms of learning, and between learning and work, without losing momentum or opportunity.

Ladies and gentleman, Within this broader system, the role of the TVET sector is critical. TVET colleges have the potential to serve as engines of inclusion, providing practical, occupation focused training to large numbers of young people. They are well positioned to respond to local economic needs and to prepare young people for specific trades and technical roles that are in demand.

However, the full potential of the TVET sector will only be realised through stronger collaboration with universities and industry. Universities bring academic depth, research capacity, and the ability to develop higher order skills. When combined with the practical orientation of TVET colleges, this creates a more balanced and effective system. There is a need to strengthen articulation pathways so that students can move between TVET and university programmes where appropriate. There is also a need for joint curriculum development with industry, ensuring that what is taught reflects real workplace requirements.

In addition, we must expand opportunities for apprenticeships, internships, and workplace based learning across both sectors. These experiences are often the bridge between education and employment. Without them, young people struggle to gain entry into the labour market.

As we consider these systemic issues, it is important to ground our discussion in the concrete achievements of this partnership.

Colleagues, over the past four years, the UWC programme has demonstrated that targeted collaboration can produce real results. To date, 65 graduates have been placed into work opportunities and over 200 have gone through the internship programme, gaining practical experience and beginning to establish themselves in the labour market. Each of these placements represents a young person whose trajectory has shifted, whose confidence has grown, and whose prospects have improved.

At the same time, this milestone invites us to reflect on the question of scale. The need in our country runs into the millions. While 65 placements are meaningful, they must be seen as a foundation upon which to build something much larger where we can move from 200, to 200 000 and so on. 
Scaling requires deliberate action. It requires expanding the network of employers who are willing to host and mentor young people. It requires mobilising additional resources, including exploring innovative financing mechanisms that can support growth. It requires replicating successful models across other institutions and regions, while adapting them to different contexts. It also requires stronger coordination, so that efforts across the system reinforce one another rather than operate in isolation.

If we are able to align these elements, we can move from isolated success stories to a system that consistently delivers opportunities at scale.

As we look to the future, we must remain focused on creating real and lasting pathways for young people. Programmes and policies are important, but what ultimately matters is whether a young person is able to move from education into work, from work into a career, and from a career into economic security.

To the organisations represented here today, there is a clear role to play. Opening workplaces to young people is one of the most direct and impactful contributions that can be made. Investing in training, mentorship, and skills development is not only a social responsibility, but also a strategic investment in the future workforce.

To our institutions, the task is to continue evolving, to strengthen partnerships, and to ensure that graduates are equipped not only with knowledge, but with the skills and experience required to succeed.

And to the young people, the message is one of both opportunity and responsibility. The world of work is changing, but there are pathways being created. Seizing these opportunities requires commitment, adaptability, and a willingness to continue learning.

In closing, the Presidential Youth Employment Initiative has laid an important foundation. The partnership with the University of the Western Cape has demonstrated what is possible when institutions work together with purpose. The Outcomes Finance Summit has provided clear direction on how we can deepen impact and scale what works.

The task now is to move forward with focus and determination. To strengthen what is working. To address what is not. And to ensure that every young person has a fair and meaningful opportunity to participate in the economy.

I thank you.