• Youth unemployment in South Africa hits 62.4% in Q1 2025

• Vice President Mashatile calls for mass entrepreneurship as urgent remedy

• Government expands funding and support for young business founders

South Africa’s youth unemployment reached 62.4% in the first quarter of 2025, prompting the government to adopt entrepreneurship as a core strategy for economic recovery.

Vice President Paul Mashatile, speaking during a June 13 meeting in Johannesburg with the Harambee Youth Employment Accelerator, called for mass entrepreneurship to address the crisis. He emphasized that building businesses is a necessary, sustainable response to the saturated labor market and a critical step toward inclusive growth.

Mashatile warned that more than 9.2 million young South Africans are not employed, in school, or receiving training. Without intervention, this number could rise by 600,000 annually. His remarks align with the 2030 National Development Plan, which identifies small and medium enterprises (SMEs) as key to economic transformation.

The government has launched several support mechanisms. The National Youth Development Agency (NYDA) assists young entrepreneurs from project inception. The Innovation Fund, active since 2020, has backed about 100 tech startups. The Youth Challenge Fund also offers tailored support to early-stage ventures.

The Transformation Fund, with annual funding of $1.11 billion, targets businesses from historically marginalized communities. Additionally, the Spaza Shop Support Fund injects about $3 million into informal trade, boosting micro-enterprises in townships and rural areas.

Mashatile urged stronger public-private partnerships, simplified access to finance, and a business-friendly environment. He pointed to Kenya’s Youth Entrepreneurship and Leadership Development (YELD) program—which has supported over 2,800 young entrepreneurs—as proof that results are possible. For South Africa, the priority is to consolidate and coordinate efforts to make entrepreneurship a driver of social change.