Small Business Development Minister Stella Ndabeni has called for accelerated industrialisation as the most decisive intervention to address South Africa’s persistently high youth unemployment rate, warning that without a focused reindustrialisation strategy, young people will continue to bear the brunt of economic stagnation.
Delivering the keynote address at the South African Youth Economic Council (SAYEC) 4th Annual Mining Indaba Business Dialogue in Cape Town on Wednesday evening, Ndabeni placed industrial growth at the centre of the country’s economic recovery agenda, particularly within the manufacturing, energy, and technology sectors.
“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.
Ndabeni pointed to countries outside South Africa as examples, noting that they have successfully reduced youth unemployment 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.
Ndabeni also noted that in the early 1990s, manufacturing accounted for more than 22% of South Africa’s GDP. Today, she said that figure stands at approximately 12.8 - 13%.
She said employment within the sector has also plummeted, with jobs declining from over 2.1 million in 2008, to an estimated 1.6 to 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 cannot resolve the unemployment 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
Ndabeni said government is now shifting toward sector-specific industrialisation targets to reverse the decline.
She said her department is designing funding instruments aligned with sector forecasts to better support emerging industries and small businesses operating within high-growth value chains.
“That is why even my portfolio is designing funding instruments that are sector-forecast driven.”
She emphasised the need for “real talk” engagement within the manufacturing sector and broader industrial ecosystem to accelerate implementation.
“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 and energy security
The Minister linked reindustrialisation to the Mining Indaba’s sub-theme: “Building South Africa’s industrial economy, driving energy security, advancing critical minerals beneficiation and ensuring inclusive ownership”.
She argued that beneficiation of critical minerals presents a strategic opportunity to move South Africa up the value chain rather than remaining primarily a raw material exporter.
“If we industrialise effectively, we can build local manufacturing capacity around our mineral wealth, create downstream industries and unlock large-scale employment.”
Energy security, the Minister said, remains a foundational pillar of any industrial expansion strategy, backed by reliable energy supply to support 24-hour manufacturing operations and restore investor confidence.
Ndabeni also called for urgent reforms to reduce red tape and reduce turnaround times for permits, licences, and access to funding.
She said faster decision-making and coordinated implementation across departments will determine whether industrial policy translates into tangible outcomes.
The Mining Indaba Business Dialogue is SAYEC’s flagship convening platform and forms part of engagements aligned to the Mining Indaba programme, placing young people at the centre of discussions on ownership, enterprise participation, and long-term sector transformation.
The dialogue brought together government, industry leaders, investors, and young people to engage on South Africa’s mining, oil, and gas sectors as key enablers of industrialisation, beneficiation, investment mobilisation, and inclusive economic growth. - SAnews.gov.za
