Small Business Development Minister Stella Ndabeni has called for accelerated reindustrialisation as a decisive strategy to address South Africa’s high youth unemployment rate.
Speaking at the South African Youth Economic Council (SAYEC) 4th Annual Mining Indaba Business Dialogue in Cape Town, Ndabeni said industrial growth must be placed at the centre of the country’s economic recovery plan.
Youth Unemployment Remains Critical
Ndabeni warned that young people, particularly first-time job seekers, continue to carry the burden of economic stagnation.
“Unemployment is highest among younger age groups, particularly those entering the labour market for the first time. It is an uncomfortable truth and an untenable situation for our young people,” Ndabeni said.
She noted that countries which have successfully reduced youth unemployment have done so by expanding their industrial base.
“Looking outside of our country, nations that have successfully decreased youth unemployment have done so by expanding their industries, particularly in the manufacturing, energy, and technology sectors, which attract young people on a large scale, and many are embarking on the 24-hour shift.
The decline of the industry in South Africa has severely impacted young people, resulting in diminished opportunities for stable, skills-based employment for young people. This decline requires sector specific industrialisation targets,” the Minister said.
Decline In Manufacturing Jobs
Ndabeni highlighted that manufacturing once contributed more than 22% to South Africa’s GDP in the early 1990s. Today, that contribution stands at approximately 12.8% to 13%.
Employment in the sector has also dropped significantly, from over 2.1 million jobs in 2008 to between 1.6 and 1.7 million by 2024.
“Each percentage decrease in manufacturing output equates to thousands of lost or unrealised job opportunities, particularly for young individuals seeking their first employment,” Ndabeni said.
She stressed that social support programmes alone will not resolve the crisis.
“Without a strategy of reindustrialisation, youth unemployment is likely to remain persistently high, regardless of the effectiveness of existing social programmes.”
Sector-Specific Targets And Funding Reform
The Minister said government is shifting toward sector-specific industrialisation targets to rebuild manufacturing, energy and technology industries.
Her department is developing funding instruments aligned with sector forecasts to better support small businesses and emerging industries operating in high-growth value chains.
“That is why even my portfolio is designing funding instruments that are sector-forecast driven.”
Ndabeni emphasised the importance of implementation and faster execution.
“We must no longer debate whether industrialisation, beneficiation and inclusive ownership are necessary. The task before us now is implementation, speed of execution and the discipline to get things done quickly and efficiently.
This will quickly set us on a path of building an inclusive industrial economy, while addressing the stubborn challenge of unemployment,” the Minister said.
Beneficiation, Energy Security And Industrial Growth
Linking her remarks to the Mining Indaba theme, Ndabeni said beneficiation of critical minerals offers South Africa an opportunity to expand local manufacturing and move up the value chain.
“If we industrialise effectively, we can build local manufacturing capacity around our mineral wealth, create downstream industries and unlock large-scale employment.”
She added that energy security is essential to support 24-hour manufacturing operations and restore investor confidence.
The Minister also called for reduced red tape and quicker turnaround times for permits, licences and funding approvals, stating that coordinated implementation across government departments will determine whether industrial policy delivers tangible results.
The SAYEC Mining Indaba Business Dialogue brought together government, industry leaders, investors and young people to discuss how the mining, oil and gas sectors can drive industrialisation, beneficiation, inclusive ownership and long-term economic growth.
Additional reporting by SANews.gov.za
