South Africa’s digital skills initiative aimed at helping 20,000 youths needs $152 million in funding to scale, emphasizing the importance of employer participation.
In South Africa, a digital skills program exemplifies how training can transition individuals into employment. However, for thousands more, this opportunity hinges on the country's ability to tap into existing funds earmarked for skills development. At the CollectiveXChange 2026, a national summit focused on digital skills and jobs, Yellowwoods’ executive director, Nicola Galombik, highlighted the pressing need for R2.5 billion (approximately $152 million) to expand initiatives that could help an additional 20,000 young people secure digital skills and find employment by 2028.
This substantial funding request underscores a critical issue: why these available resources are not improving access to training pathways for more youths. The Collective X, responsible for coordinating South Africa’s National Digital Skills Plan, aims to connect half a million young individuals to in-demand digital roles by the year 2034. Its Digital Skills Impact Fund employs an outcomes-based model to align skills training with employment opportunities, yet the funds needed for scaling the initiative exceed what has already been allocated to it.
Employer Engagement and Proven Results
Galombik pointed out that the model has been successfully piloted in collaboration with employers and is primed for growth. This initiative brings together contributions from both employers and government funding to prepare young individuals for the workforce while providing them with genuine workplace experience. Impressively, those participating in these structured work-based learning programs enjoy a remarkable absorption rate of 95% into employment upon completion.
Employers play a vital role by providing the necessary workplace-integrated learning, while public funding can help offset wages and cater to preparation efforts. This method prioritizes aligning training with the actual demands of businesses, reducing the occurrence of graduates without clear pathways to gainful employment.
Galombik emphasized that the proposed funding could be sourced from existing resources, such as the National Skills Fund, the Labour Activation Programme, and other state funding mechanisms, even though she clarified that this amount is not already secured. “We’ve built the outcomes-funding mechanism. Now we need to scale it,” she asserted, urging employers to take responsibility for investing in youth development.
Current Landscape and Future Challenges
Ziaad Suleman, CEO of Cassava Technologies and chair of The Collective X board, shared that the initiative has successfully united over 600 organizations, mobilizing R600 million ($36.4 million) and benefiting around 4,000 individuals across all nine provinces. However, he stressed that these numbers are insufficient, stating, “We need scale, and we can only achieve it together.”
The figures reflect important strides toward forming a national partnership, yet the real challenge lies in accumulating the necessary resources and securing employer engagement to extend the benefits to a larger group of young citizens. Rudi Dicks, who heads the Project Management Office in the Presidency, indicated that the government is collaborating with the private sector to develop models that enhance employment outcomes.
He stated, “Resources are not necessarily the problem. The question is how we use them more effectively to achieve the best outcomes.” Dicks noted that partnerships are supporting workplace-integrated learning that extends beyond formal qualifications. Still, he warned that complex funding processes can discourage smaller businesses from applying for aid. “Some businesses do not apply because they lack a human resources department to manage the process,” he remarked.
Addressing the Skills Gap
To facilitate wider participation, streamlining application processes, reporting requirements, and access to incentives could empower more businesses to train and employ young people effectively. As the urgency to adapt increases—exacerbated by the rapid evolution of artificial intelligence (AI) skills—a call for action to optimize existing systems is more vital than ever.
Phuthi Mahanyele-Dabengwa, newly appointed to The Collective X board, stressed the critical nature of continuous education in a landscape altered by AI. “We are no longer in a world where someone can expect to perform the same tasks throughout an entire career. Things are changing continuously,” she noted. Mahanyele-Dabengwa underscored that young people should view training and education as an ongoing endeavor that allows them to adapt and remain valuable contributors.
Looking Ahead
Evan Jones, chief executive of The Collective X, identified three main priorities essential for scaling the initiative: establishing aligned policies, securing multi-year financing involving both government and business contributions, and ensuring employers can respond quickly to the evolving needs for skills. He concluded that achieving shared responsibility and accountability from all stakeholders is crucial for long-term success.
In sum, to truly scale the impact of these digital initiatives, it’s necessary to move from superficial collaborations to deeper, more meaningful executions that empower young South Africans to thrive in an increasingly digital economy.
