South Africa’s digital jobs drive is facing a $152 million funding test. The Collective X, which coordinates the country’s National Digital Skills Plan, aims to get 500,000 young people into in-demand digital roles by 2034.
Nicola Galombik, who leads Yellowwoods, estimates that expanding the program would need R2.5 billion ($152 million) from current training budgets. This would allow 20,000 more young South Africans to develop digital skills and secure jobs by 2028.
The Digital Skills Impact Fund operates by linking training directly to job placement through an outcomes-focused approach. It merges financial support from employers with government funding to cover costs, ensuring young participants gain both skills and real work experience. Galombik highlighted the program’s success, noting that 95% of trainees who complete the hands-on training programs find employment.
Businesses contribute by offering on-the-job training, while government funding helps cover salaries and prepare participants for workplace demands. The proposed R2.5 billion ($152 million) could be drawn from existing programs, such as the National Skills Fund and the Labour Activation Programme, among other state-backed initiatives.
Ziaad Suleman, CEO of Cassava Technologies and chair of The Collective X board, reported that the initiative has united 600 organizations, secured R600 million ($36.4 million) in funding, and assisted 4,000 individuals nationwide. He emphasized, however, that current efforts fall short and that broader success requires collective action.
Rudi Dicks, overseeing the Project Management Office in the Presidency, stated that collaboration with private companies has tested approaches to boost employment rates. According to Dicks, the issue lies not in a lack of resources but in how effectively they are deployed to maximize impact.
Dicks explained that the partnership promotes practical training beyond formal qualifications but cautioned that cumbersome funding procedures may discourage smaller businesses. Streamlining applications, reporting requirements, and access to incentives could encourage wider participation and strengthen the program’s effectiveness.
The urgency of refining this system has grown as artificial intelligence reshapes the skills companies demand. Phuthi Mahanyele-Dabengwa, joining The Collective X board, stressed that lifelong learning will be critical as AI tools advance in capability.
Mahanyele-Dabengwa argued that young people must view education as a continuous journey rather than a one-time achievement, enabling them to remain valuable amid shifting technology and economic conditions. Evan Jones, CEO of The Collective X, identified three key factors for scaling the initiative: coordinated policies, sustained funding from both public and private sectors, and employers’ ability to adapt quickly to evolving skill requirements.
Complex funding processes can deter smaller employers from participating. Some businesses lack a human resources department to manage the process.
