The African Development Bank, through its Fund for African Private Sector Assistance (FAPA), has allocated a $1 million grant to South Africa’s National Business Initiative (NBI). The funding aims to develop a responsive skills ecosystem that empowers South Africans—particularly youth—to access employment opportunities in the green economy.
South Africa continues to grapple with high youth unemployment, with recent figures from StatisticsSA indicating that 46.1% of individuals aged 15 to 34 were unemployed in the first quarter of 2025. This alarming rate underscores the urgency for initiatives that equip young people with skills relevant to emerging economic sectors.
The grant will support the Just Energy Transition Skilling for Employment Programme (JET SEP), an initiative led by the NBI in partnership with the Boston Consulting Group. This programme seeks to align private sector efforts with the government’s JET Skilling Implementation Plan to prepare the workforce for a green energy transition, focusing on inclusive and sustainable job creation.
Funding from the grant will specifically cover the programme’s initial phase. This includes conducting feasibility studies for the creation of skills development zones and enhancing capacity within the public technical and vocational education and training (TVET) system. These zones are intended to serve as key hubs for delivering inclusive training and driving local economic development during the transition to a greener economy.
JET SEP, launched in 2024 and endorsed by the JET Project Management Unit under the Presidency of South Africa, has attracted broad support from over 30 high-level leaders in the private sector, public institutions, and civil society. This demonstrates strong national backing for the country’s energy transition and workforce development goals.
The $1 million grant complements the African Development Bank’s broader investments in South Africa’s energy sector. Since 2007, the Bank has committed $3.4 billion to energy infrastructure projects, including renewable energy. The latest funding will enhance efforts to identify critical skill requirements for the renewable energy sector, fostering job creation and the growth of micro, small, and medium enterprises (MSMEs) within the green economy.
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