Ndabeni Pushes Reindustrialisation to Tackle Youth Unemployment

Ndabeni underscored the sharp decline in South Africa’s manufacturing sector as a primary driver of shrinking opportunities for stable, skills-based employment.

Small Business Development Minister Stella Ndabeni has called for urgent and accelerated industrialisation to confront South Africa’s persistently high youth unemployment rate, warning that without a focused reindustrialisation drive, young people will continue to bear the brunt of economic stagnation.

Delivering the keynote address at the South African Youth Economic Council (SAYEC) 4th Annual Mining Indaba Business Dialogue in Cape Town on Wednesday evening, Ndabeni placed industrial growth at the centre of the country’s economic recovery agenda — particularly within the manufacturing, energy and technology sectors.

“Unemployment is highest among younger age groups, particularly those entering the labour market for the first time. It is an uncomfortable truth and an untenable situation for our young people,” Ndabeni said.

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Manufacturing Decline Deepens Youth Job Crisis

Ndabeni underscored the sharp decline in South Africa’s manufacturing sector as a primary driver of shrinking opportunities for stable, skills-based employment.

• In the early 1990s, manufacturing contributed more than 22% to GDP.

• Today, that figure has dropped to approximately 12.8–13%.

• Employment in manufacturing has fallen from over 2.1 million jobs in 2008 to an estimated 1.6–1.7 million by 2024.

“Each percentage decrease in manufacturing output equates to thousands of lost or unrealised job opportunities, particularly for young individuals seeking their first employment,” she said.

The Minister pointed to global examples where countries have reduced youth unemployment by expanding industrial capacity — particularly in sectors operating on 24-hour production cycles, creating high-volume employment opportunities for young workers.

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Social Support Not Enough

While acknowledging the role of social protection measures, Ndabeni warned that grants and support programmes alone cannot solve the unemployment crisis.

“Without a strategy of reindustrialisation, youth unemployment is likely to remain persistently high, regardless of the effectiveness of existing social programmes.”

She argued that South Africa now needs a decisive pivot toward sector-specific industrialisation targets, supported by practical implementation and measurable outcomes.

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Sector-Specific Targets and Funding Reform

Ndabeni revealed that her department is designing sector-forecast-driven funding instruments to better align financial support with high-growth value chains and emerging industries.

“That is why even my portfolio is designing funding instruments that are sector-forecast driven,” she said.

She called for “real talk” engagement across manufacturing and the broader industrial ecosystem to move beyond policy debate toward execution.

“We must no longer debate whether industrialisation, beneficiation and inclusive ownership are necessary. The task before us now is implementation, speed of execution and the discipline to get things done quickly and efficiently.”

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Beneficiation and Critical Minerals Strategy

Linking her remarks to the Mining Indaba’s sub-theme — “Building South Africa’s industrial economy, driving energy security, advancing critical minerals beneficiation and ensuring inclusive ownership” — Ndabeni highlighted beneficiation as a strategic lever.

She argued that South Africa must move beyond exporting raw minerals and instead build downstream manufacturing capacity around its mineral wealth.

“If we industrialise effectively, we can build local manufacturing capacity around our mineral wealth, create downstream industries and unlock large-scale employment,” she said.

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Energy Security and Red Tape Reform

Ndabeni stressed that energy security is foundational to any industrial expansion, particularly to support continuous manufacturing operations and restore investor confidence.

She also called for urgent reforms to:

• Reduce bureaucratic red tape

• Shorten turnaround times for permits and licences

• Accelerate access to funding

• Improve coordination across departments

She said faster decision-making will determine whether industrial policy translates into tangible economic outcomes.

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Youth at the Centre of Industrial Transformation

The Mining Indaba Business Dialogue — SAYEC’s flagship platform — brought together government, investors, industry leaders and young people to discuss ownership, enterprise participation and long-term transformation in the mining, oil and gas sectors.

Ndabeni positioned industrialisation as not merely an economic policy choice, but a generational imperative.

“This will quickly set us on a path of building an inclusive industrial economy, while addressing the stubborn challenge of unemployment,” she said.

As South Africa grapples with structural unemployment and economic stagnation, the Minister’s call signals a renewed push to place industrial expansion, beneficiation and youth employment at the heart of national economic policy.