BUSINESS NEWS - Nearly half of South Africa’s young people remain shut out of work and education, despite ongoing efforts to reverse the trend. 

New Q3 2025 data released earlier this month by Statistics South Africa puts the not in employment, education, or training (NEET) rate for 15 - 34-year-olds at 42.7% – barely lower than 43.2% in the same quarter last year – pointing to how deeply entrenched the problem has become.

Education leader Leon Smalberger, CEO of the Academic Institute of Excellence (AIE), says the numbers highlight the need to rethink where youth income is actually coming from, and where new opportunities may be emerging beyond the formal job market.

“We keep looking to traditional job-creation pathways to solve a crisis that is no longer traditional,” he says. “Millions of young people are already earning and creating value informally. The question is why we’re not supporting the areas where youth-led economic activity is already happening.”

One of these areas is South Africa’s emerging Maker Economy – an informal but growing segment of young people earning income through hands-on production, repair, custom design, and small-scale manufacturing. Although under-recognised, he argues it is becoming an important buffer for those unable to find formal work.

Side-hustle data and G20 discussions highlight opportunity 

Findings from the 2023 African Bank Consumer Research Report show that 27% of South African youth were earning income through side-hustles. While many were reselling goods or offer services, Smalberger believes that a portion of these activities now include some degree of making, modification, or small-scale production.

“There is a quiet, ground-up shift already happening. Young people are creating, fixing, designing, and producing, but because it’s informal and under-resourced, it remains largely invisible in national policy. We need to expand the scope of what we recognise as economic participation.”

This call for alternative pathways for youth aligns with the themes which dominated the run-up to South Africa’s G20 Summit, where global leaders emphasised the need to accelerate youth skills development, digital inclusion, and innovation-led growth.

Smalberger says the global push for practical, future-ready skills mirrors what young South Africans are already doing informally. “The G20 is focused on the critical innovation and technical skills required for the future economy. Our youth are already demonstrating these capabilities – we just need systems that help them scale."

Education institutions adapting, but national coordination missing

In response, some tertiary institutions, such as AIE, have begun integrating maker-based learning into their curricula by offering access to fabrication tools, 3D printers, CNC machines, and digital design labs that teach students how to prototype and build.AIE, which operates fabrication labs, digital design studios and hands-on maker facilities across its campuses, has seen rising demand for programmes that integrate practical making with entrepreneurship. 

Smalberger says these environments demonstrate how quickly students gain confidence and income-generating ability when given access to tools and training.

However, he says scattered institutional initiatives are not enough.

“We don’t need isolated pockets of innovation. We need a national Maker Economy strategy that connects schools, TVET colleges, community maker hubs, and higher-education institutions.

“Young people should be able to walk into a properly equipped space anywhere in the country and learn to make, design or produce.” 

A pathway that delivers income faster than traditional entrepreneurship

Maker-driven activities often require relatively small capital investment and translate into income more quickly than many traditional entrepreneurial ventures.

This is where South Africa has a unique opportunity. “We’re not suggesting the Maker Economy can completely replace formal employment. But it can multiply the ways young people earn a living, especially in an economy that cannot absorb everyone.”

He adds that the country risks missing an important window of opportunity.

“Young South Africans are already making their own way. The question is whether we’re prepared to support them. The talent is there, but now we need the infrastructure to turn making into meaningful economic participation.”

Leon Smalberger, CEO of the Academic Institute of Excellence.

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