South Africa’s skills pipeline should be seen as a growing investment asset, Deputy Minister in the Presidency Nonceba Mhlauli said on Tuesday.
Speaking during a plenary session on Skills for the Digital and Green Economy at the Sixth South Africa Investment Conference, Mhlauli said the country’s so-called skills gap is less about capability and more about connection.
“South Africa does not have a skills shortage problem. It has a connection problem,” she said.
Mhlauli’s remarks echoed President Cyril Ramaphosa’s earlier sentiments. The President stressed that skills development, particularly among young people, is central to economic growth and transformation.
“The skilling of our people, especially young people, is critically important as we embark on a skills revolution,” President Ramaphosa told delegates.
Mhlauli said the “skills revolution” is already underway, pointing to the progress made through the Presidential Youth Employment Intervention, which has supported more than 1.7 million young people.
She said hundreds of thousands of young people have already been placed into earning opportunities, with a growing number entering the digital economy.
“What we are seeing through our work in the digital economy is striking… young people can move from learning to earning in a matter of months. They are coming from every part of the country, not just traditional talent hubs, and when given access, they perform, and they stay,” the Deputy Minister said.
She argued that investment in skills development is no longer just a social imperative, but a key driver of economic transformation, particularly as South Africa positions itself for a digital and green economy.
“If we are serious about a digital and green economy, then funding youth skills development is not just a social good. It is a transformation imperative. The real constraint is how quickly we can connect that talent at scale to real demand.”
She further highlighted the importance of strengthening dual systems of education and training, combining formal learning with practical workplace experience to build a sustainable skills pipeline.
According to Mhlauli, the main constraint is not the availability of talent, but the speed at which it can be connected to real economic demand.
“The real constraint is how quickly we can connect that talent at scale to real demand,” she said.
She urged investors, employers and training providers to rethink how they view the country’s workforce potential.
“We need to stop asking whether South Africa has the skills for the digital and green economy, and start asking how we unlock and connect the skills we already have,” she said.
Mhlauli concluded by challenging stakeholders to consider whether the country’s skills pipeline is being fully recognised as an investment opportunity.
“If we get that right, this is not just a workforce story - it is a growth story, and ultimately, an investment story,” Mhlauli said. – SAnews.gov.za
