By Mervyn Naidoo, Group CEO at ACTOM

South Africa continues to face entrenched poverty, high unemployment and widespread low literacy, shaping how many families approach education. In poorer communities, there is a strong belief that success can only be achieved through university degrees, particularly in prestigious fields such as law or medicine.

This is driven more by stigma and social status than by awareness of labour‑market demand. What is often missing is the recognition that education must align with actual labour market needs.

The expansion of the National Student Financial Aid Scheme (NSFAS) funding intensified this push toward university, often without proper guidance on whether certain degrees align with future opportunities.

A key issue is the lack of early career guidance. By Grades 11 or 12, it is too late to significantly impact subject choices, leading to fewer learners taking core mathematics and limiting their options. Guidance should begin in Grades 6 to 8 to help students understand their strengths and emerging economic trends influencing future careers.

The fast-changing world of work

The world of work is changing rapidly, with Artificial Intelligence (AI), software and technology‑driven fields growing, while some traditional careers may become obsolete. Education must align with where the global economy is heading.

But we also need to challenge the stigma attached to artisanal and technical careers, as these skills are essential. Europe, for example, faces a shortage of artisans and will need to import them. South Africa risks the same outcome if we continue to undervalue these professions.

Ultimately, we need a mindset shift supported by the schooling system so that young people understand future career pathways, choose subjects accordingly, and recognise that artisanal and technical skills carry equal value in a modern economy.

Local demand for artisans is high, allowing them to find employment right away. Their training is modular, and apprenticeships can be fast-tracked, enabling quick income for families. In contrast, many university graduates struggle to find jobs due to degrees that do not match labour market demand.

Expand the TVET network

South Africa must grow its network of Technical and Vocational Education and Training (TVET) colleges and revive technical schools. Offering trade-focused subjects like electrical work, motor mechanics, welding, and plumbing from Grade 10 can help young people develop skills and quickly enter apprenticeships or start small businesses after matric. These subjects enable young people, even without completing their apprenticeship, to earn an income and develop these life skills. Furthermore, to increase employment in South Africa, we need to nurture entrepreneurs who will, in turn, create jobs. This is often achieved through artisanal skills that cater to demand in both home and industrial environments. 

Local companies and state-owned entities must also rebuild in-house training centres, which historically produced many semi-skilled workers and artisans. Over time, these training pipelines have diminished, and the consequences are being felt across the country.

Reviving these centres is crucial, and they should not only offer formal learnerships but also practical training to equip individuals, sometimes without matric, with semi-skilled capabilities. For instance, one does not need to be a fully qualified artisan to become a competent welder. With proper training, people can quickly acquire employable skills and enter the workforce.

A major bottleneck in our skills pipeline is the lack of collaboration between universities, industry and government. Universities remain too academic, producing graduates who have no real workplace exposure and take months to become productive. This gap is especially damaging in fast‑moving fields like AI, where curricula must reflect industry needs, not just theory.

True partners in education

Companies must become true partners in education. This partnership should not be limited to funding university bursaries but needs to involve companies actively engaging with schools, especially at the primary and early high‑school levels, to expose children to real career options.

South Africa’s industrial economy has been shrinking for more than 15 years, mainly due to insufficient capital investment and a massive infrastructure backlog. Despite over a trillion rand in infrastructure projects having been announced, we have not used this demand strategically.

Deliberate policy is needed to channel upcoming infrastructure projects into reindustrialising the economy – reviving construction, rebuilding manufacturing and expanding local production. As industrial activity grows, it boosts demand for energy and water, stimulates GDP and creates large‑scale employment.

This is especially critical for young people, who face the highest unemployment rates. Reindustrialisation, supported by strong artisanal training pipelines, is essential to reducing unemployment, restoring industrial capacity and improving household livelihoods while easing the social burden on the state.