The 2025 Budget Speech marked a pivotal moment for South Africa, but it left many questions unanswered—particularly about how young people will be meaningfully integrated into the economy. With over R380 billion allocated to debt repayment, the government faces significant challenges in creating sustainable employment opportunities.
Nkosinathi Mahlangu, Youth Employment Portfolio Head at Momentum Group, acknowledged that while structural reforms under Operation Vulindlela have begun, their long-term impact on small businesses and job creation for young people remains uncertain.
“Infrastructure investment of R1 trillion is commendable, but young people cannot be passive participants. We must prioritize upskilling within the first year, aligning with key sectors like transport and agriculture. For instance, projects such as the rail sector expansion and the Mkhomazi water project, expected in 2027, need concrete plans for youth employment now. Similarly, emerging farmers require immediate support to sustain their businesses until these initiatives materialize,” Mahlangu emphasised.
He also raised concerns about the extension of the Social Relief Distress (SRD) grant until March 2026, arguing that while it is a necessary emergency measure, the lack of a clear transition plan—such as a basic income grant—leaves young people trapped in poverty.
“With youth unemployment still at crisis levels and no dedicated budget for employment programs, this budget missed a crucial opportunity to harness the energy and creativity of young South Africans. Small businesses are key to job creation, yet there’s little concrete support to help them grow. The youth need salaries, not handouts,” he concluded.
