Addressing 'Alarming scale' of youth unemployment in SA

South Africa is currently facing a significant challenge with its employment statistics hitting an all-time low since 2003. The youth unemployment rate has been soaring, with numbers remaining stubbornly high at around 25-27%. This alarming trend has prompted a closer look at the situation and potential solutions to address this pressing issue. Joining CNBC Africa to discuss this critical topic are Daniel Hatfield, MD of Edge Growth, Tracy Hackland, CEO of Columba, and Piwa Nkambule, co-founder, and CEO of Riovic. Tracy Hackland of Columba highlighted the importance of early intervention in helping young people develop the necessary skills to succeed in the job market. She emphasized the need for innovative approaches to education that focus on cultivating social entrepreneurship skills among youth. Columba's program works with high schools in economically disadvantaged areas, where students engage in practical leadership activities that address social challenges and build essential skills. Piwa Nkambule discussed Riovic's platform, which enables individuals to acquire intellectual skills and practical experience in in-demand fields such as artificial intelligence, internet of things, and digital manufacturing. The platform offers courses and projects that equip participants with relevant knowledge and hands-on experience, bridging the gap between education and employment. Daniel Hatfield, representing Edge Growth, shared the organization's mission to create jobs by supporting the growth of small businesses. Edge Growth focuses on providing businesses with access to skills, finance, and markets, essential components for business expansion and job creation. By working with large corporates to establish enterprise and supply development programs, Edge Growth aims to integrate small businesses into supply chains and facilitate their growth through customized capital and skills deployment. One of the key points raised during the discussion was the shifting mindset towards entrepreneurship among the youth. Many young people are motivated to start their businesses or initiatives that contribute positively to their communities. The desire to serve and make a social impact is a driving force behind many aspiring entrepreneurs, with a growing interest in social entrepreneurship and community-focused ventures. While innovative solutions and programs are being implemented to address youth unemployment, challenges persist in reducing the unemployment rate. The panelists discussed the need for a shift from a resource-based economy mindset to a knowledge-based economy mindset, emphasizing the importance of intangible products and ideas in driving entrepreneurship. Policy certainty was also identified as a crucial factor in supporting small businesses and fostering entrepreneurial growth. While there are existing policies and resources available to assist small businesses, the panelists stressed the importance of resourcefulness and adaptability in navigating policy challenges and leveraging available support mechanisms. The conversation also touched on the role of successful entrepreneurs in mentoring and inspiring the next generation of business leaders. Recognizing and celebrating success stories within the South African entrepreneurial landscape can help create a culture of mentorship and knowledge-sharing, empowering aspiring entrepreneurs to learn from those who have overcome similar challenges and achieved success. In conclusion, while South Africa grapples with the significant challenge of youth unemployment, initiatives like those discussed by the panelists provide hope and tangible solutions for addressing this pressing issue. By fostering innovation, entrepreneurship, and collaboration between stakeholders, there is potential to create meaningful change and opportunities for the country's youth in the job market.