Keynote address by Deputy President Paul Mashatile at the Forty Under 40 South Africa Awards Ceremony, the Houghton Hotel, Johannesburg

Programme Director;

Events Director, Mr. Richard Abbey Jr.;

Minister in the Presidency for Women, Youth, and Persons with Disabilities, Dr. Nkosazana Dlamini Zuma;

Esteemed Guests;

Ladies and gentlemen,

This morning, South Africa and Africa woke up to the sad news of the passing of its native son, Prince Mangosuthu Buthelezi. I want to send a message of condolences to his family and the Royal Household, who allowed us to draw wisdom from this great South African. May his soul rest in peace.

I would also like to express my deepest condolences to the government and people of Morocco following a tragic earthquake incident that claimed the lives of over 600 people and injured over 300.

Our thoughts and prayers are with you during this difficult time.

Distinguished Young People,

Today, we are humbled and honoured to address you at this Forty Under 40 Africa Awards Ceremony under the theme, "The African Century: Unlocking the Demographic Dividend through Investment in Youth Participation". This theme encapsulates the tremendous potential within our great continent because of the youth dividend.

Moreover, Africa's human capital is a tremendous asset, with a population exceeding 1.3 billion. The continent's youth represent a significant workforce that can drive innovation, entrepreneurship, and economic growth. Consequently, we strongly urge governments to invest in our youth.

As a continent, according to the African Development Bank Group, we are set to outperform the rest of the world in economic growth over the next two years, with real gross domestic product (GDP) averaging around 4% in 2023 and 2024.

However, we must find a way to bridge the demographic gaps between our 54 countries because we are in different stages of growth and have different economic structures.

We need to take advantage of the abundant resources on our continent and strike a balance between the countries that are the poorest and those that are the richest.

Africa is richly blessed with extraordinary natural resources. From oil and gas reserves to mineral deposits such as gold, diamonds, and copper, Africa possesses a wealth of valuable assets that have the potential to drive economic growth and development.

These resources contribute to Africa's prosperity and play a significant role in the global economy.

Ladies and gentlemen,

As young businesspeople, we urge you to take advantage of the African Continental Free Trade Area (AfCFTA). In this regard, South Africa is a significant member of this trade revolution that will shape the continent's future by stimulating innovation and value-chain growth and boosting industrialisation and job creation across industries.

The AfCFTA has 54 signatories, making it the largest free trade area in terms of the number of member states, second only to the World Trade Organisation.

As part of Agenda 2063, we must dismantle the barriers that hinder youth participation in the economy. We need to break free from the cycle of generational exclusion and embrace an intergenerational approach where the knowledge and experience of our elders are combined with the fresh ideas and perspectives of today's youth.

This is because by unlocking the demographic dividend, we will spark a wave of growth and progress that will benefit the youth and the entire continent. We need greater collaboration among governments, civil society, the private sector, and international partners to achieve this.

However, it is crucial to acknowledge the resilience and adaptability of our people, especially young businesspeople, during these challenging times. Although the economic growth rate has been modest, we are steadily moving in the right direction.

In South Africa, for example, Stats SA reported that the country's real gross domestic product (GDP) grew by 0.6% in the second quarter of 2023. This comes after a growth rate of 0.4% in the first quarter. Six industries on the supply side of the economy grew in the second quarter, with manufacturing and finance driving much of the upward momentum.

However, it is crucial to highlight that the unemployment rate remains a significant concern. South Africa’s unemployment rate fell slightly to 32.6% in the second quarter (Q2) of this year from 32.9% in Q1. The number of employed people increased by 154,000 to 16.3 million in the quarter and has now almost reached pre-pandemic levels of 16.4 million.

The best that can be said is that at least the trend is going the right way. Our government has implemented necessary economic recovery measures to support the economy, which is why we are seeing an improvement.

These measures include financial support for distressed businesses, infrastructure investment, and job creation initiatives such as the Presidential Youth Employment Initiative (PYEI), implemented as the Basic Education Employment Initiative (BEEI) across all nine provinces.

Between April and June this year, at least 135,000 earning opportunities were secured by young people through the Presidential Youth Employment Initiative’s National Pathway Management Network.

Some 108 061 of these were accessed through the SA Youth platform, with 27 088 opportunities scored through the Department of Employment and Labour’s Employment Services of South Africa (ESSA) website. We are adamant that if PYEI can receive more funding, it will reach more young people.

Moreover, our government believes that entrepreneurship is part of the remedy for the massive youth unemployment. We call on young people to take up the opportunities available in digital sectors and others to combat the high youth unemployment rate.

In partnership with the private sector, we have launched several youth business funding opportunities to help youth start and maintain their businesses. This includes the Youth Challenge Fund (YCF), the Youth Pipeline Development Programme, and the Youth Technology Innovation Fund (YTIF).

While these measures have helped stabilise the economy, we must remain vigilant and adaptable to emerging challenges.

Moreover, we have also gained some pace by implementing the structural reforms for the reconstruction and recovery plan, Operation Vulindlela.

Since Operation Vulindlela was launched in October 2020 as part of the Economic Reconstruction and Recovery Plan, we have implemented 35 priority structural reforms identified for their impact on economic growth and job creation.

We have made progress in energy, our logistics network, digital communications, and the reform of the visa regime to enable businesses to attract the skills they need to grow.

Eleven reforms have been completed, while 14 are on track or progressing well.

Regarding the energy challenge that has remained a top priority in our country, we have amended Schedule 2 of the Electricity Regulation Act to remove the licencing requirement for generation projects of any size.

More than 100 projects are at various stages of development, representing over 10,000 megawatts of new generation capacity and over R200 billion in private sector investment.

Additionally, three projects from the risk mitigation programme have been constructed, with five projects expected to reach financial closure this quarter.

We approved the Electricity Regulation Amendment Bill in March, which has been tabled in Parliament. This Bill will establish a competitive electricity market, enabling multiple generators to compete on a level playing field.

These are essential to ramping up energy generation in the short and medium term.

In conclusion, let us not forget that investment is about the future, not just the present. It is about leaving behind a legacy for future generations. It is about providing our children and descendants with the opportunities and resources they require to flourish.

For us, investing in young people means redirecting our efforts and resources in a number of critical areas, including the following:

• Skills revolution and education

• Providing quality health care

• Invest in new technologies as part of 4IR and artificial intelligence.

• Investing in infrastructure for ease of business and movement of goods allows entrepreneurs to flourish.

Ladies and gentlemen, investing in youth participation is not just a trendy concept but a necessity for our collective future. It goes beyond just financial resources. It requires a mind-set shift and a collective commitment to nurturing talent and empowering individuals.

To the incredible young individuals to be honoured here tonight, you are the embodiment of the Africa we want.

Your achievements inspire us all and demonstrate the power of young people to drive change.

I urge you to continue your extraordinary work and to be the role models that others can look up to.

Together, we will unlock the demographic dividend and usher in an era where Africa shines brightly on the global stage.

We would also like to thank Mr. Richard Abbey Jr. and the rest of the event's organisers for their tireless efforts in bringing together the continent's young, bright minds under the age of 40 from various industries to honour and celebrate their achievements.

Thank you.