By Louise Driver, Executive Director, IPASA
As we look back on youth month, one cannot forget the fact that youth unemployment remains one of South Africa’s most urgent and entrenched crises, with over 60% of young people aged 15–24 unemployed. This not only limits economic growth, but fuels social instability and deepens inequality. Philanthropy has a unique and powerful role to play in addressing this challenge by investing in innovative solutions and fostering collaborative action to unlock the potential of South Africa’s youth.
For this reason, IPASA launched its youth employment and entrepreneurship funder support initiative early this year to bring together independent private funders and other key stakeholders trying to tackle youth unemployment, to collaboratively develop solutions to this escalating issue. The focus of this initiative is key to what IPASA advocates for – collaboration and innovation in philanthropy.
There is no shortage of stakeholders working in this space, from private and corporate funders to government entities, non-profit organisations, academic institutions, thinktanks and research institutions. But it seems that no unified strategy exists to ensure coverage across different geographies, business sectors, and stages of employment and entrepreneurship. It also seems that often, youth are not included as a valuable, vital partner in co-creating the long-term solutions needed. Funders need to build a collaborative robust ecosystem that supports youth to ensure their effective inclusion in our economy.
In terms of innovation, philanthropy needs to fund youth employment initiatives that go beyond short-term job placement through supporting programmes that provide young people with demand-driven technical skills, digital literacy, and work-readiness training aligned with emerging sectors like renewable energy, ICT, and the green economy. By investing in scalable models that link training to actual employment pathways, philanthropy can drive systemic impact.
Philanthropy also needs to promote and support youth entrepreneurship as a key pillar of employment creation. Our youth are brimming with entrepreneurial ambition but face barriers such as limited access to finance, markets, and mentorship. Philanthropy can help bridge these gaps by backing innovative incubators, accelerators, and start-up support programmes that prioritise young, black, rural, and women entrepreneurs. Seed funding, business development services, and peer learning platforms are crucial investments that can help youth-led enterprises thrive and create jobs for others.
While dealing with current dilemmas, it is also critical for philanthropy to get involved in, and shape conversations about how jobs and employment are defined; what skills for the future look like; and if and how the youth dividend can be harnessed. We know that technological change, geoeconomic fragmentation, economic uncertainty, demographic shifts and the green transition – individually and in combination – are among the major drivers expected to shape and transform the global labour market by 2030. What does that mean for South African youth employment?
Addressing youth unemployment requires innovation, risk-taking, and a long-term vision. Through strategic innovative investments and cross-sector collaboration, philanthropy can shift the trajectory of South Africa’s youth—from marginalisation to meaningful economic participation.
Our newsletter includes thought pieces from a range of stakeholders working in the youth employment and entrepreneurship space sharing potential plans and innovative ideas on how philanthropy can empower youth and unlock our next generation’s economic potential. This is a call from IPASA to join us in tackling this challenge in ensuring a sustainable future for our youth.