Southeast Asia Information Port (www.dnyxxg.com) – The South African government officially launched the 2.5 billion rand (approximately US$135 million) National Youth Fund on October 31st. This fund will support the development of small and medium-sized enterprises (SMEs) through loans and equity investments to address the persistently high youth unemployment rate.
South African Vice President Mashatille attended a youth investment forum hosted by the South African National Youth Development Agency (NZYA) on the same day. He stated that the National Youth Fund will help young people overcome barriers to financing, skills, and market access, alleviate structural unemployment, and repair historical inequalities; it will also encourage private enterprises to invest in towns and rural areas, build industrial centers, create jobs, and revitalize local economies.
According to Statistics South Africa, the unemployment rate for those aged 25 to 34 was projected to reach 40.5% in the second quarter of 2025. NZYA Vice President Banga Makanya stated that the fund will focus on supporting SMEs with high growth potential to create more sustainable youth employment opportunities.
The launch of this fund marks a shift in South Africa's youth entrepreneurship support system from a previous model of small grants to a medium- to long-term investment mechanism combining loans and equity. The previous small grants of up to 250,000 rand (approximately US$14,400) have been upgraded to investments ranging from 750,000 to 2 million rand (approximately US$43,200 to US$115,300) per project, with funds allocated based on the needs and growth potential of the businesses. (End)
