Quick Summary:
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AfDB awarded a $1M grant to South Africa’s National Business Initiative through the FAPA fund.
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The grant supports the Just Energy Transition Skilling for Employment Programme (JET SEP).
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Funding will go to feasibility studies, skills development zones, and TVET system strengthening.
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The programme targets youth employment, MSME growth, and inclusive green economy development.
The African Development Bank (AfDB), through the Fund for African Private Sector Assistance (FAPA), has awarded a $1 million grant to South Africa’s National Business Initiative (NBI). The funding will support efforts to build a dynamic, demand-led skills ecosystem that enables South Africans—especially youth—to access emerging job opportunities in the green economy.
Tackling South Africa’s Youth Unemployment Crisis
Youth unemployment remains a major challenge in South Africa. According to Statistics South Africa, 46.1% of people aged 15 to 34 were unemployed in the first quarter of 2025. This new funding aims to address the issue by aligning skills development with real-world, sustainable job opportunities.
Support for the Just Energy Transition Skilling Programme
The grant will support the Just Energy Transition Skilling for Employment Programme (JET SEP), an initiative led by the National Business Initiative in partnership with Boston Consulting Group. JET SEP brings together the private sector to help prepare the workforce for South Africa’s energy transition.
The programme aligns with the government’s JET Skilling Implementation Plan, which focuses on inclusive workforce development and sustainable job creation.
What the Grant Will Fund
The $1 million grant will fund the first phase of the programme, which includes:
- Feasibility studies for the design of skills development zones
- Capacity building within South Africa’s public technical and vocational education and training (TVET) system
These skills zones will serve as hubs to deliver training, support local economic development, and facilitate a just energy transition.
Broad Support from Leaders and Institutions
Launched in 2024 and endorsed by the JET Project Management Unit under South Africa’s presidency, JET SEP has already earned backing from over 30 CEOs, public sector officials, and civil society leaders.
AfDB: Creating Jobs Through Private Sector Partnerships
Kennedy Mbekeani, AfDB’s Director General for Southern Africa, highlighted the value of the public-private collaboration:
“By linking a strong private sector coalition—the engine for job creation—with government, academia, and NGOs, the FAPA grant will support informed policy decisions in skills development and labour market programmes.”
He added that the initiative would help grow micro, small, and medium enterprises (MSMEs) and expand youth employment in South Africa’s green economy.
Building on AfDB’s Energy Investments in South Africa
This grant complements AfDB’s long-term commitment to South Africa’s energy sector. Since 2007, the Bank has invested $3.4 billion in energy infrastructure, including renewable energy projects.
The current initiative will help identify sector-specific skills needed for the energy transition, with a strong focus on renewables.
NBI: Turning Vision Into Action
Shameela Soobramoney, CEO of the National Business Initiative, praised the grant:
“This grant from the African Development Bank is a critical step toward turning vision into action, strengthening the national skills system, and ensuring that all South Africans are equipped to seize new opportunities in the green economy.”
She reaffirmed NBI’s commitment to building an inclusive, future-ready workforce and stimulating local economies, ensuring that no one is left behind.