Deputy President Paul Mashatile has reaffirmed 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.
Economic growth
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.
He also discussed the Public Procurement Act 28 of 2024, which was passed by Parliament in May 2024 and more than a year after it received 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, enabling them to become suppliers, service providers, and solution builders in the economy.
“We support the implementation of this Act, as we will continue to do so with the BEE laws.”
He believes that Broad-Based Black Economic Empowerment (BBBEE) has proven effective, with more Black-owned companies operating successfully in mining and other sectors.
“South Africa and its youth need transformative policies,” the Deputy President said.
Ambitious vision
The country’s second-in-command outlined an ambitious vision for youth economic participation, emphasising that young people are not just beneficiaries but the nation’s most potent economic asset.
Paul Mashatile focused on the urgent issue of youth unemployment, highlighting 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.
“These statistics should prompt us to reconsider our role in mobilising various stakeholders and social partners to develop skills that meet the needs of the South African economy.”
The Deputy President championed entrepreneurship as a key solution.
“Young people must … be entrepreneurs. You must create the jobs yourselves, and we as government, with all our institutions, must support you.”
Potential
Paul Mashatile also spoke about the significant financial commitments, including a R100 billion Transformation Fund designed to support black-owned businesses and youth entrepreneurship.
He emphasised the fund’s potential, saying it seeks to increase participation of black-owned businesses and foster enterprise and supply development.
He also highlighted 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.
“We must, therefore, work together to alter the mindset of young individuals by highlighting the opportunities that are available for those who choose to pursue entrepreneurship, and we must encourage them from the school level.”
‘Seat at the table’
The Deputy President believes that young people deserve a seat at the table to ensure that the issues of the youth are not just heard but are adequately addressed.
“The youth voice – inside workplaces, in civic engagements, and in the public and private sectors — needs to be elevated by policies, programmes, and interventions that are impactful.”
He also used the platform to commit to advocating for and securing maximum government support for the National Youth Fund.
“As we launch the National Youth Fund, which is a national compact, we should inspire young people to start their enterprises. We must encourage private companies to invest in township and rural regions to establish hubs to create employment, boost local economies, and unleash young potential nationwide.”
