Sustainability news

As the most connected generation of South Africans, our young people hold the potential to unleash greater productivity and propel the country’s economic trajectory forward. Unfortunately, despite this potential, our youth continue to remain vulnerable in the labour market. The most recent unemployment statistics released by Statistics South Africa (Stats SA) on Tuesday revealed an alarming increase of 87,000 unemployed youth in the fourth quarter of 2023[i], raising the youth unemployment rate to 44,3% during the same period. According to Stats SA figures, the number of unemployed persons has increased to 7.9 million in Q4 of 2023 from 4.8 million in Q4 2013 - an increase of over 80% over the decade. There is much work to be done in unlocking the demographic dividend and harnessing the employability of our youth.

The most imperative avenue to safeguard this is through increasing access to good quality education across both primary and high schools. The 2023 matric results indicate that we are making progress in this regard with a pass rate of 82.9% up from 80.1% the year before. We also saw a marginal improvement in results for Maths and Science which is highly encouraging. But as we note this progressive step, we also need to address the proverbial elephant in the room, the shortage of skills in science, technology, engineering, and mathematics (STEM).

Rapid technological progress is changing economies and societies, with new digital technologies such as artificial intelligence, big data and machine learning providing a platform for economic growth and development that can expand job creation and self-employment. It was around-2010, when experts started warning of an alarming shortage of scientists and engineers in South Africa and the continent more broadly, estimating that nearly 2-3 million more engineers are needed to address the continent’s most critical developmental challenges.

According to the World Economic Forum’s Future of Jobs report, many students currently enrolled in South Africa’s tertiary institutions are studying subjects that do not correlate with the needs of the private sector, particularly for STEM as well as future-oriented skills. It is therefore clear that an imminent threat that currently looms over our progression as a country, is the downward trend of matric students writing maths, with less than 30% of all matric students taking Maths and only half of them passing their exams.

While no one can predict the future with absolute certainty, it’s clear that the world of work is changing, just as the world itself is. The global economic rebound has reconfigured the sectoral distribution of employment across industries. According to a recent McKinsey report, 1 in 16 workers may have to switch occupations by 2030. There are predictions that job growth will be more concentrated in high-skilled jobs, particularly careers in STEM, while middle and low-skilled jobs will decline. This is both a concern and an opportunity for South Africa.

With population growth now outpacing economic growth, we cannot speak about the future of South Africa without prioritising job creation and skills development for our youth. Digital schools or academies dedicated to fostering digital skills can be a game-changer in helping students learn the skills needed to adapt and thrive amidst the digital revolution. These institutions can offer comprehensive programmes that equip students with the knowledge and practical skills required to excel in the digital world.

Through our social impact programme, Naspers Labs, we’ve equipped 3,956 youth to become software developers, cloud engineers, cybersecurity technicians, data analysts, desktop technicians, data scientists, web developers and robotics specialists, among others. Naspers Labs is harnessing the power of technology to support the economic participation of talented young South Africans, through digital skills training, employment opportunities and entrepreneurship support.

In our recognition that skills development and training are not enough, we also support job-placement programmes and micro-enterprise acceleration to improve the livelihoods of talented South African job seekers and entrepreneurs.

This contribution is an example of how we can nurture South Africa’s long-term growth and success by accelerating digital inclusion, educating tomorrow’s tech talents, facilitating employment for historically underserved members of society, and supporting youth-led and tech-enabled start-ups.

South Africa stands at the precipice of unprecedented potential, poised to harness the dividends of our vibrant and growing population, a wave of urbanisation, the digital revolution, and advancements in infrastructure. As Naspers, we find assurance in government’s recognition of our nation’s challenges and their resolve to collaborate with industry leaders and other stakeholders.  This collaborative effort signals a practical approach to overcoming the pressing issues that lie before us, particularly in unleashing the power of STEM education to address and reduce youth unemployment.

By Ashika Kirpal

Director: Transformation and Naspers Labs at Naspers.