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South Africa’s Skills Pipeline Viewed as Investment Asset, Says Deputy Minister

Cape town: South Africa's skills pipeline should be seen as a growing investment asset, Deputy Minister in the Presidency Nonceba Mhlauli said during a plenary session on Skills for the Digital and Green Economy at the Sixth South Africa Investment Conference. Mhlauli emphasized that the country's perceived skills gap is more about connection than capability. 'South Africa does not have a skills shortage problem. It has a connection problem," she stated.

According to South African Government News Agency, Mhlauli's remarks resonated with President Cyril Ramaphosa's earlier comments, highlighting that skills development, especially among young people, is crucial for economic growth and transformation. President Ramaphosa noted, "The skilling of our people, especially young people, is critically important as we embark on a skills revolution."

Mhlauli pointed out that the 'skills revolution' is advancing, citing the Presidential Youth Employment Intervention, which has already supported over 1.7 million young individuals. She mentioned the success in placing hundreds of thousands into earning opportunities, particularly in the digital economy.

"What we are seeing through our work in the digital economy is striking. young people can move from learning to earning in a matter of months. They are coming from every part of the country, not just traditional talent hubs, and when given access, they perform, and they stay," said Mhlauli.

She argued that investing in skills development is not only a social necessity but also a crucial driver of economic transformation as South Africa aims for a digital and green economy. Mhlauli stressed the importance of connecting talent to economic demand at scale.

Mhlauli highlighted the necessity of reinforcing dual systems of education and training, which combine formal learning with practical workplace experience, to develop a sustainable skills pipeline. She urged investors, employers, and training providers to reconsider how they perceive the workforce potential in South Africa.

"We need to stop asking whether South Africa has the skills for the digital and green economy, and start asking how we unlock and connect the skills we already have," she emphasized.

Mhlauli concluded by challenging stakeholders to recognize the skills pipeline as an investment opportunity. "If we get that right, this is not just a workforce story - it is a growth story, and ultimately, an investment story," she said.