Johannesburg: Deputy President Paul Mashatile has reaffirmed the government’s commitment to transformative policies, arguing that initiatives like Black Economic Empowerment (BEE) aim to empower Black-owned businesses. Mashatile was speaking at the inaugural Youth Investment Indaba at the Houghton Hotel in Johannesburg on Friday. Hosted by the National Youth Development Agency (NYDA), the gathering convened leaders from government, the private sector, development institutions, and youth-led enterprises to drive youth-focused investment and inclusive economic growth.
According to South African Government News Agency, Mashatile discussed the Public Procurement Act 28 of 2024, passed by Parliament in May 2024, more than a year after receiving the President’s assent. The legislation aims to reform government spending and connect young entrepreneurs to local value chains by prioritising localisation, enterprise development, and inclusive procurement. This enables them to become suppliers, service providers, and solution builders in the economy. Mashatile expressed support for the implementation of this Act, alongside BEE laws, which he believes have been effective in increasing the number of successful Black-owned companies in sectors like mining.
The Deputy President outlined an ambitious vision for youth economic participation, emphasising that young people are not just beneficiaries but the nation’s most potent economic asset. He highlighted the urgent issue of youth unemployment, noting the concerning statistic that 34% of all youth aged 15 to 24, over 3.5 million young people, are disconnected from both the labour market and the education system. Mashatile urged the need to mobilise stakeholders and social partners to develop skills that meet the needs of the South African economy.
Mashatile championed entrepreneurship as a key solution, encouraging young people to become entrepreneurs and create jobs themselves. He highlighted significant financial commitments, including a R100 billion Transformation Fund aimed at supporting Black-owned businesses and youth entrepreneurship. The fund seeks to increase participation of Black-owned businesses and foster enterprise and supply development.
He also mentioned the South African National Defence Force-led National Youth Service programme, which aims to enable youth to become emerging industrialists in sectors like agriculture, energy, security, defence, and the digital economy. Mashatile stressed the importance of altering young individuals’ mindsets by highlighting available opportunities and encouraging entrepreneurship from a school level.
Mashatile believes young people deserve a seat at the table to ensure their issues are adequately addressed. He called for elevating the youth voice through impactful policies, programmes, and interventions in workplaces, civic engagements, and both public and private sectors.
Using the platform, Mashatile committed to advocating for maximum government support for the National Youth Fund. As the National Youth Fund is launched, he called for inspiring young people to start enterprises and urged private companies to invest in township and rural regions to establish hubs that create employment, boost local economies, and unleash young potential nationwide.