"Yet once again, the Statement offers little in the way of specific youth employment targets or dedicated interventions. High fuel and energy costs, together with unreliable water supply, continue to constrain economic growth and increase project costs," said Nkosinathi Mahlangu, youth employment and entrepreneurship specialist at the Momentum Group Foundation.
He cautioned that these pressures make it harder for small and medium-sized enterprises (SMEs), particularly in construction, to remain viable and create jobs.
Against this backdrop, effective infrastructure investment and project delivery, particularly in the construction sector, will be critical to completing projects, strengthening sector activity and unlocking opportunities for businesses and workers alike, he said.
The infrastructure projects supported by the Infrastructure Finance and Implementation Support Agency (IFISA), with a potential investment value of more than R200bn, present significant opportunities for construction businesses and job creation. But investment alone is not enough; projects must be delivered effectively to unlock opportunities for businesses and workers.
“Infrastructure spending does not automatically translate into delivery or employment,” Mahlangu said. “We need deliberate mechanisms to connect young people to these projects through apprenticeships, technical training, local procurement and entry-level employment opportunities.”
He noted that these ambitions have featured prominently in previous Budget speeches, yet greater transparency is still needed about progress against earlier commitments and, importantly, whether infrastructure investment is translating into tangible opportunities and jobs for young people.
Mahlangu also welcomed the Minister’s acknowledgement that spending does not always deliver the intended results. A review of R887bn transferred to provinces and municipalities through infrastructure conditional grants between 2017/18 and 2023/24 found that, while most funds were spent, projects were often delayed, incomplete or failed to deliver their intended benefits.
“The proposed reforms to strengthen accountability and oversight are long overdue, and this same outcomes-based approach should extend to youth employment. We need to measure not only how much government spends, but how many young people actually gain skills, secure employment or build sustainable businesses as a result," he said.
"Government procurement policies should also make deliberate provision for youth-owned businesses, including ring-fencing a portion of public procurement opportunities for qualifying youth enterprises.
“For a country with such a large youth population, it is disappointing that youth employment and economic participation receive so little attention beyond social-support measures. Fiscal stability is an important foundation, but without deliberate pathways into economic participation and clear accountability for delivery, young South Africans risk being left behind.”
