Will the 2024 National Budget give young people the support they need?
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GUEST - Nkosinathi Mahlangu - Youth employment portfolio head at Momentum Metropolitan
In this year’s State of the Nation Address (SoNA), President Cyril Ramaphosa painted a very alluring picture, but one that could, unfortunately, be likened to an “expectation versus reality” meme.
In his version, the “expectation” one, the President laid out the South Africa we all hope for. He told the story of Tintswalo, democracy’s child. Tintswalo was the fortunate beneficiary of a well-functioning state: born in 1994 at the birth of democracy, she received government-subsidised housing, completed her studies at a TVET college and went on to find employment and a better life for herself and her family.
However, the “reality” is that – in the South Africa we currently have – 30-year-old Tintswalo is probably jobless and with little in the way of future career prospects…like 43,4% (Stats SA Q3: 2023) of our youth.
This high rate of youth unemployment remains a glaring problem, which the President acknowledged in his address. Entrepreneurship has been posed as a potential solution to this challenge, allowing young people to create their own income-earning opportunities while generating more jobs and reviving the economy.
Yet, between 70% - 80% of small businesses in South Africa fail within five years, according to research by the University of the Western Cape, while last year saw the closure of over 1500 businesses across the country. And while some young people believe there is nothing better than working for themselves, our Momentum Metropolitan research has revealed that upon leaving school, many young respondents would prefer to be employed by a reputable corporate, rather than start their own business.
In this year’s State of the Nation Address (SoNA), President Cyril Ramaphosa painted a very alluring picture, but one that could, unfortunately, be likened to an “expectation versus reality” meme.
In his version, the “expectation” one, the President laid out the South Africa we all hope for. He told the story of Tintswalo, democracy’s child. Tintswalo was the fortunate beneficiary of a well-functioning state: born in 1994 at the birth of democracy, she received government-subsidised housing, completed her studies at a TVET college and went on to find employment and a better life for herself and her family.
However, the “reality” is that – in the South Africa we currently have – 30-year-old Tintswalo is probably jobless and with little in the way of future career prospects…like 43,4% (Stats SA Q3: 2023) of our youth.
This high rate of youth unemployment remains a glaring problem, which the President acknowledged in his address. Entrepreneurship has been posed as a potential solution to this challenge, allowing young people to create their own income-earning opportunities while generating more jobs and reviving the economy.
Yet, between 70% - 80% of small businesses in South Africa fail within five years, according to research by the University of the Western Cape, while last year saw the closure of over 1500 businesses across the country. And while some young people believe there is nothing better than working for themselves, our Momentum Metropolitan research has revealed that upon leaving school, many young respondents would prefer to be employed by a reputable corporate, rather than start their own business.
