Tshego Bokaba | CSI Manager | Momentum Group Foundation | mail me |
Two remarkable economic turnarounds demonstrate what becomes possible when countries support the right sectors, develop relevant skills and strengthen cooperation between government and business.
We exist to create genuine and lasting economic opportunities for young South Africans. We constantly evaluate where we invest, what we support and why those decisions matter. Therefore, the recent On the Record conference felt highly relevant to our mission.
The conference brought together economists, policymakers and business leaders to discuss how South Africa could create five million formal jobs during the next decade. This discussion strongly aligns with our focus on laser-focused job creation.
Lessons from China and India
The speakers included Keyu Jin, an expert on macroeconomic dynamics and author of The New China Playbook. Other participants included Irish economist and writer David McWilliams, as well as Indian economist Montek Ahluwalia, former director of the Independent Evaluation Office at the IMF. Cyril Ramaphosa also addressed the conference.
China and India dominated discussions for good reason. China has lifted more than 800 million people out of extreme poverty since the late 1970s. Meanwhile, India has experienced roughly tenfold growth in GDP per capita during the past three decades. As a result, India has become the world’s fastest-growing major economy.
Although these countries followed different paths to transformation, they shared several important principles. Both countries focused clearly on priority sectors, aligned skills with economic demand and built strong partnerships between government and business. These principles reflect the importance of laser-focused job creation strategies.
South Africa cannot replicate either model entirely. However, the country can still learn from the principles behind them. More importantly, South Africa must honestly evaluate whether it applies those lessons effectively. These are the same questions the Foundation works to answer every day.
Focus on jobs
China built its economic success on manufacturing. By contrast, India focused on services, especially IT, business process outsourcing (BPO) and financial services. Neither country attempted to grow every sector simultaneously. Instead, both made deliberate decisions about where to direct energy and investment. As Lesetja Kganyago, Governor of the South African Reserve Bank (SARB), famously stated: “If everything is a priority, nothing is a priority”.
South Africa also possesses high-potential sectors. Research presented at the conference identified agriculture, manufacturing, construction and mining as industries with the strongest capacity to generate formal jobs over the next decade. Agriculture alone could create up to 200,000 new jobs, mainly through horticulture and agri-processing.
Manufacturing contributes 13% to GDP and accounts for 42% of South Africa’s exports. In addition, manufacturing supports almost every other part of the economy. Investment decisions follow this same type of sector mapping.
For example, we invest in agriculture through its Women in Farming initiative. It also supports young people entering the BPO sector through partners such as Harambee and ALX. This sector offers high entry-level absorption rates. Furthermore, we invest in technology skills through WeThinkCode and the Faith Mangope Leadership Academy.
These remain deliberate investment decisions because the data highlights a genuine opportunity. As the Foundation continues refining its mission, it will continue prioritising laser-focused job creation by investing in the right sectors and skills.
Match skills to jobs
India’s transformation relied heavily on technical education. A large, young and English-speaking workforce trained in IT and engineering became the backbone of its services-led economy. Consequently, the skills pipeline and economic opportunity expanded together.
South Africa has struggled to achieve the same alignment. Youth unemployment remains close to 60%. Much of this challenge stems from the disconnect between the skills young people possess and the skills the economy actually requires.
The education system does not consistently produce graduates with the capabilities demanded by growing sectors. This disconnect continues costing the country valuable employment opportunities. This reality explains why we do more than simply fund training.
We research industries carefully and identify the specific skills employers currently need and will require in future. It then aligns investments accordingly. The goal is never just a certificate. Instead, the goal is to enable young people to participate fully in the economy and contribute proudly to society. This approach reinforces the Foundation’s commitment to laser-focused job creation.
Build partnerships
One consistent theme across the case studies from China, India and Ireland is the relationship between government and the private sector. In China, the local government actively supports entrepreneurs and remains accountable for economic outcomes. In India, reducing red tape and opening the economy to trade and foreign investment created conditions where private enterprise could flourish.
President Cyril Ramaphosa reinforced this message during the conference. He called for competent local government and a business environment that actively supports growth. We see our role as building bridges within this ecosystem.
We are neither government nor a traditional private-sector business. Instead, we operate between these spaces. We support young people seeking economic opportunities while also working with government and business to ensure investments in skills translate into real employment outcomes. This type of collaboration only succeeds when all stakeholders participate with genuine commitment.
