The Role of NYDA in Fighting Youth Unemployment

Kholofelo Modise25 September , 2025

3 8 minutes read

The Role of NYDA in Fighting Youth Unemployment

South Africa’s youth unemployment rate remains among the highest globally. Young people—especially those just entering the labour market—are among the hardest hit by persistent joblessness, and their exclusion has deep social, economic and political costs.

The National Youth Development Agency (NYDA) was established to provide targeted support for youth development, skills-building, entrepreneurship and economic inclusion.

his article explores how the NYDA contributes to combating youth unemployment in South Africa—what it does, where it succeeds, where it struggles, and how young people can leverage its services.

Background: South Africa’s Youth Unemployment Crisis

South Africa faces a profound youth unemployment crisis. According to the Quarterly Labour Force Survey (QLFS) for Q2 2025, the unemployment rate for youth aged 15–34 stood at 46.1 %, unchanged from the previous quarter, with about 4.9 million young people unemployed.
Within age subgroups, the Q2 data show:

15–24-year-olds: approximately 62.2 % unemployment
25–34-year-olds: about 40.5 % unemployment

These figures reflect structural challenges, not merely cyclical downturns.

Key challenges

Skills mismatch and qualification gaps: Many young people either lack the relevant technical, digital or soft skills demanded by employers, or they hold credentials that don’t align with labour market needs.
Lack of work experience / “no experience, no job” trap: Graduates and school-leavers struggle to break into formal employment because employers expect prior experience.
Limited access to funding and capital: Young entrepreneurs often face barriers in accessing start-up capital, finance, and business support services.
Geographic and infrastructure constraints: In rural or under-resourced areas, inadequate connectivity, transport and business support infrastructure limit opportunity.
High competition and limited job creation: The formal economy is not generating enough jobs to absorb the growing cohort of job-seekers.

Given these entrenched hurdles, government intervention is essential—not only to subsidise or create opportunities, but to coordinate efforts, target resources, and support systemic change in how youth enter the economy.

Overview of the NYDA

Establishment and legal framework

The NYDA was created by the National Youth Development Agency Act (Act 54 of 2008), and became operational in 2009 by merging the National Youth Commission and the Umsobomvu Youth Fund. Its mandate is anchored in that statute, and it is tasked with coordinating youth development across government and civil society.

Mandate and core functions

The NYDA is mandated to design, coordinate, monitor and evaluate youth development interventions, notably to integrate young people into the economy and society. Its key focus areas include:

Youth empowerment and capacity building
Skills development and work readiness
Entrepreneurship support (grants, incubation, mentorship)
Job placement, internships and facilitation of entry into work
Coordination of youth service and volunteerism programmes
Policy advocacy, research and youth strategy implementation

The agency’s strategic documents emphasize renewed focus on youth entrepreneurship, job creation and coordination of national youth service programmes.

Target group

NYDA primarily serves young people aged 14 to 35. Its interventions cover a broad spectrum—from school leavers and unemployed youth, to budding entrepreneurs and those seeking upskilling or internships.

NYDA’s Key Programmes in Addressing Unemployment

Below are the main programme areas through which the NYDA attempts to reduce youth unemployment.

a) Skills Development & Training

Short courses and work-readiness training: The NYDA offers short technical courses, digital skills training, life-skills workshops, interview readiness, CV writing, and soft-skills development.
Partnerships with SETAs, TVET colleges and private sector: The NYDA collaborates with sectoral education and training authorities (SETAs), Technical and Vocational Education and Training (TVET) colleges, and private firms to deliver training modules, upskilling and workplace attachments.
Bridging / foundational programmes: For youth who lack basic qualifications, bridging programmes aim to raise their employability.

b) Entrepreneurship Development

NYDA business funding / grants & voucher programmes: One of the more visible interventions is the grant or voucher support offered to young entrepreneurs and businesses. An impact evaluation of the NYDA voucher programme found that over the period 2014–2017, benefits (jobs created, sustained enterprises, revenue generated) exceeded costs by a ratio of about 3:1.
Mentorship, incubation and business development support: Beyond funding, NYDA offers non-financial support, mentorship, training in business management and market-linkage assistance.
Case studies / success stories: The NYDA promotes stories of youth whose enterprises have grown through its incubation or funding programmes.

c) Job Placement & Internship Programmes

Work-readiness and job-preparation programmes: The NYDA runs career guidance, CV clinics, interview training and job-search support to prepare youth for formal employment.
Internship, learnership and placement partnerships: The agency works with government departments, municipalities and private sector employers to place youth in internships, learnerships or temporary vacancies.
Collaboration with YES (Youth Employment Service): The NYDA partners or coordinates with the YES programme to funnel candidates and placements.

Recently, phase 3 of the national youth service (NYS) programme included 2,094 youth participants, out of which 568 transitioned into further earning or learning opportunities—a tangible example of placement or pathway support.

d) Education Support

NSFAS Outreach / bursary facilitation: The NYDA is active in outreach and guidance relating to the National Student Financial Aid Scheme (NSFAS), helping youth access tertiary funding opportunities.
Support for out-of-school youth / matriculants: Programs aim to assist youth who have dropped out or missed matric with bridging, adult learning, or placements that feed into further education and training.

Impact of NYDA on Youth Employment

Reach and scale

The voucher impact evaluation (2014–2017) estimated that the net present value of benefits from the voucher programme exceeded R106 million, with benefits outweighing costs in job creation, enterprise sustainment and revenue.
In NYS Phase 3, 2,094 youth participated, and 568 (≈ 27 %) successfully transitioned to further earning or learning opportunities.

Success stories

NYDA periodically shares stories of youth who have grown enterprises, secured placements, or leveraged incubation support. These stories illustrate how individual youth can benefit when given both financial and non-financial backing.

Limitations and challenges

Demand vastly outstrips capacity: The number of youth seeking assistance far exceeds what available funding or staff capacity can serve.
Low uptake of complementary support services: Many voucher beneficiaries do not access mentorship, market linkage or grant programmes, undermining enterprise sustainability.
Declining business performance post-intervention: Key enterprise indicators (number of employees, revenue, profits) sometimes declined after the intervention, signaling challenges in sustaining growth.
Geographic, administrative and institutional bottlenecks: Access in rural areas, delays in processing grants, fragmented internal coordination, and politicisation criticisms hinder effectiveness.
Evaluation and measurement gaps: Some programmes lack strong baseline or monitoring frameworks, making long-term impact assessment more difficult.

Partnerships and Collaborations

NYDA’s work does not—and cannot—operate in isolation. Its effectiveness and reach hinge critically on collaboration.

Private sector and YES alliances

Partnerships with corporations, banks, and sectoral bodies help expand training, internships, mentorship and funding pipelines. The YES programme is a notable partner, providing structured placement opportunities for youth.

Government alignment and policy integration

NYDA’s priorities are aligned with the National Development Plan (NDP 2030) and the National Youth Plan. Its mandate complements other government youth and labour initiatives, enabling coordinated interventions across departments.

International & NGO cooperation

The NYDA has engaged with international funders and organisations. Collaboration with NGOs and donors helps with scaling and resource access.

Through these multi-stakeholder partnerships, NYDA seeks to leverage resources, avoid duplication and strengthen systems.

Challenges Facing the NYDA

While NYDA plays a critical role, it confronts several systemic challenges:

Underfunding relative to demand: The financial resources available are small compared to the number of youth needing support.
Administrative and bureaucratic delays: Grant disbursement and internal approvals often suffer bottlenecks, slowing impact.
Criticisms of politicisation and access inequality: Some critics argue funding or support may be channelled unevenly, with rural youth or marginalized groups less able to access services.
Rural, remote and infrastructural constraints: Branch offices and service reach remain weaker in remote areas, making access inequitable.
Programme design and sustainability issues: Some interventions lack strong follow-up, exit strategies or robust sustainability plans.
Monitoring, evaluation and accountability gaps: Without solid baseline data and monitoring, measuring outcomes is difficult and accountability is weakened.

Opportunities for Improvement

To enhance its effectiveness, NYDA (and its stakeholders) could consider:

Digitalisation and online delivery
Expanding e-learning, remote mentorship, automated grant application systems and virtual support would increase reach—especially to rural youth.
Increased budget allocations for youth grants
More funding (from government and partner sources) would help scale programmes and reduce exclusion.
Stronger coordination with TVET colleges, universities and industry
Co-designing training curricula with employers ensures relevance; joint internships and capstone projects deepen alignment.
Expand mentorship, incubation and follow-on support
Ensuring entrepreneurs don’t just get seed funding but sustained support, market access and growth assistance.
Better monitoring, evaluation and impact tracking
Instituting rigorous baselines, key performance metrics, and transparent reporting would improve accountability and learning.
Decentralisation and outreach scaling
Strengthening regional offices, mobile outreach units and partnerships that bring services closer to under-served communities.
Performance-based incentive models
Encouraging service providers and branches to meet targets for youth transitions, not just outputs, may boost quality.

How Young People Can Access NYDA Services

Here is a simplified guide for youth seeking to benefit from NYDA’s offerings:

Step-by-step access

Identify the service you need (grant, training, placement, entrepreneurial support).
Check eligibility: You must fall within the age band (14–35) and meet programme-specific criteria.
Visit a local NYDA office or use the online platform: Many initial applications or inquiries can be done at branches or via the NYDA website.
Submit required documentation: This may include identity document, proof of residence, qualifications, business plan (for grants), or CV.
Screening / assessment: NYDA assesses your application, may call you for interviews or further documentation.
Approval and disbursement / enrolment: If successful, you’re enrolled into training, funded, placed, or linked as appropriate.
Ongoing support / reporting: You may be required to report progress, attend mentorship sessions, or comply with programme conditions.

Eligibility snapshot

Age between 14 and 35
South African citizen or resident, proof of identity
Programme-specific criteria
Good standing in previous NYDA engagements (if applicable)

Finding NYDA offices / online services

Use the official NYDA website’s “Contact Us / Offices” section to locate branch offices.
Many services may be accessible via the NYDA online portal or through periodic outreach campaigns/promotional events.
Follow NYDA’s social media and official communications to catch open calls for grants, training programmes, or youth service opportunities.

FAQs

Who qualifies for NYDA funding?
Youth aged 14–35 who meet specific programme criteria can apply for NYDA funding.

How much money does NYDA give for business grants?
The amount varies by programme and scale; it depends on the nature of the business plan and available funding windows.

Is NYDA only for unemployed youth?
No — NYDA supports various youth including those in school, entrepreneurs, interns, and those seeking further education or upskilling.

How do I apply for NYDA programmes?
You apply via an NYDA branch, their official website or portal, submitting required documents and going through the evaluation process.

Does NYDA guarantee job placement?
No, NYDA does not guarantee permanent employment; its role is facilitative—providing training, placement opportunities, internships and support to improve chances of employment.

How long does it take for an NYDA grant application to be approved?
Processing times vary depending on the type of grant or programme, but applicants should generally allow several weeks to a few months for assessment and approval.

Can NYDA help me improve my CV or prepare for interviews?
Yes. NYDA runs job-preparation workshops, CV-writing sessions, and interview coaching to improve young people’s employability.

Does NYDA offer support for young people in rural areas?
NYDA has satellite offices and mobile outreach programmes to reach rural youth and make services more accessible.

Are NYDA training programmes free?
Most NYDA training programmes, especially those focused on skills development and entrepreneurship, are free for eligible youth aged 14–35.

Can NYDA help with funding for further education?
While NYDA itself does not directly provide bursaries for tertiary education, it partners with NSFAS and other institutions to connect youth to bursary and financial aid opportunities.

Also check: How to Get Registered on SA Youth Mobi

South Africa’s youth unemployment challenge is formidable, with nearly half of young people aged 15–34 unemployed as of Q2 2025. In this context, the NYDA plays a vital role as a strategic, coordinating and implementing agency. Through training, entrepreneurial support, placement programmes and education facilitation, it opens pathways for many young people who otherwise would remain excluded.

However, the scale and structural nature of the challenge mean that NYDA alone cannot solve youth unemployment. Constraints in funding, administrative capacity, sustainability, and equitable access persist. The agency’s impact will rely on stronger partnerships, better programme design, rigorous monitoring, greater resource allocation, and more responsive outreach.

If you’re between 14 and 35 and unemployed, looking for training, eager to start a business, or needing placement support, explore NYDA’s services—visit a branch, check the website, or apply when applications open. Even in uncertain times, NYDA creates one of the few institutional entry points into opportunity and economic inclusion for South Africa’s youth.