Mashatile
By Natalie Naidoo – Deputy President Paul Mashatile has stood firm on Black Economic Empowerment (BEE), saying the government will mend its flaws rather than ditch it altogether. Speaking at the inaugural Youth Investment Indaba in Johannesburg, he stressed that BEE remains key to lifting black South Africans out of poverty and joblessness. This comes amid growing calls to overhaul or scrap the policy, which critics say has failed to deliver broad benefits. Mashatile’s words highlight the government’s push to tackle youth unemployment head-on, calling for a team effort from all sides to put young people at the heart of economic plans. The event, hosted by the National Youth Development Agency (NYDA), shone a light on fresh initiatives like the R2.5 billion National Youth Fund, aimed at sparking job creation and business growth for the country’s struggling youth.
Urgent Call for a National Compact on Youth Unemployment
In his keynote address at the Houghton Hotel on Friday, Mashatile painted a stark picture of South Africa’s youth crisis, urging government, business, and partners to form a “national compact” focused on young people. “We cannot formulate policies and come up with programmes for young people without young people,” he said. “They deserve a seat at the table to ensure that youth issues are adequately addressed.”
He pointed to alarming figures from Statistics South Africa’s first-quarter 2025 data, showing 34% of youth aged 15 to 24 – over 3.5 million – are not in work, school, or training (NEET). This group is cut off from jobs and learning, worsening the country’s overall unemployment rate, which hit 32.9% in the same period. Youth joblessness stands at 46.1%, with many facing barriers like skills mismatches and lack of opportunities. Mashatile warned this is a ticking time bomb, calling for bold steps to connect young people to the economy.
The Indaba gathered leaders from various sectors to brainstorm ways to boost investment and inclusive growth. Mashatile praised the event as a key moment to change young lives, stressing innovation and leadership to fix the labour market’s gaps.
Spotlight on the NYDA’s R2.5 Billion National Youth Fund
A highlight of the Indaba was the launch of the NYDA’s R2.5 billion National Youth Fund, which Mashatile hailed as a “powerful instrument” to empower young entrepreneurs. The fund, rolled out on Friday, aims to tackle unemployment by backing sustainable businesses in key areas like mining, agriculture, and manufacturing. It will draw investments from local and global sources over three years, allowing for bigger funding to help youth start and grow ventures.
NYDA Deputy Chairperson Bonga Makhanya explained the fund will elevate support for young people, giving them a bigger role in the economy. Gauteng Finance and Economic Development MEC Lebogang Maile pledged the province’s backing, promising to work with National Treasury and the NYDA on flexible governance to speed up funding. He also called on the private sector, which holds most of South Africa’s capital, to co-invest through blended finance tools.
Mashatile committed to pushing for full government support and funding for the initiative, saying youth are not just helpers but the nation’s top economic strength. This aligns with broader efforts to cut red tape and open markets for young businesses.
Defending BEE and Highlighting the Transformation Fund
Mashatile firmly rejected scrapping BEE, noting that most poor and jobless South Africans are black. “The majority of people who are poor and unemployed in this country are Black, we will not do away with policies that seek to empower our people. Where there are weaknesses, we will fix them — not abandon them,” he said.
He tied this to the new R100 billion Transformation Fund, launched by the Department of Trade, Industry and Competition (DTIC) in May 2025. Over five years, it will boost black- and youth-owned businesses through grants, loans, and support. Mashatile urged the NYDA and youth to tap into it, ensuring it reaches those who need it most. The fund aims to grow enterprise and supplier development, driving inclusion and job creation.
He also highlighted the Human Resource Development Council (HRDC), which he leads, as key to matching skills with job needs. This includes training for those without formal qualifications and promoting entrepreneurship.
Pushing for Youth Access to Land and Markets
Mashatile called for more youth involvement in agriculture, agro-processing, and rural businesses. Through the Inter-Ministerial Committee on Land Reform, which he chairs, the government plans to speed up land access for young farmers. He praised the NYDA’s Rapid Land Release Programme for supporting this, helping youth turn land into thriving ventures.
But he stressed it is not just about production – markets must open up too. “It’s not enough to produce products if there are no markets, we must deal with regulatory burdens and open space for youth to move forward,” he said. No sector should shut out young people, he added, calling for fewer hurdles to let them succeed.
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