The African Development Bank (AfDB), through the Fund for African Private Sector Assistance (FAPA), has awarded a $1 million (R17.6 million) grant to SA’s National Business Initiative (NBI).
The grant, which aims to support green skills development for local youth, comes amid the country’s prolonged challenge of youth employment.
Independent business movement NBI has been tasked with implementing the R17.6 million FAPA grant.
According to a statement, NBI will use the grant to build a dynamic, demand-led skills ecosystem that enables young people to access emerging job opportunities in the green economy.
The funding will support the country’s Just Energy Transition Skilling for Employment Programme (JET SEP), led by the NBI in partnership with management consultancy Boston Consulting Group.
NBI coordinates private sector efforts to prepare the workforce for the energy transition, in tandem with government’s JET skilling implementation plan, focused on inclusive workforce development and sustainable job creation.
JET SEP has garnered support from over 30 South African CEOs, public sector leaders and civil society leaders in the past year.
Kennedy Mbekeani, AfDB director general for Southern Africa, comments: “By linking a strong private sector coalition – the engine for job creation – with government, academia and NGOs, the FAPA grant will play a catalytic role to support informed policy decisions in skills development and labour market programmes.
“It will also strengthen skills development efforts for the growth of the micro, small and medium enterprises and the creation of jobs for youth in South Africa’s green economy.”
Shameela Soobramoney, CEO of NBI, adds: “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.
“We are proud to continue working alongside our partners and stakeholders to build an inclusive future-ready workforce and to stimulate local economies in a way that leaves no one behind.”
The grant builds on the AfD’s investment in SA’s energy sector. Since 2007, the bank has invested $3.4 billion to support energy infrastructure, including renewable energy.
The current grant will support government’s efforts to identify the skills needed for the sector, with a particular focus on renewable energy, says the statement.
It will be used to finance the programme’s first phase, including feasibility studies for the design of skills development zones and capacity building within the public technical and vocational education and training system.
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