Business Partners Limited, which is partially state-owned, has launched a project to employ youth worth R150 million. This initiative aims to assist small businesses in attracting young people who are currently unemployed.
According to Statistics South Africa, approximately 4.7 million people aged between 15 and 34 were unemployed in the first quarter of 2026. Business Partners, founded in 1981 as the Small Business Development Corporation and later renamed, holds a 21.6% state stake through the Small Enterprise Finance Agency (SEFA).
On Wednesday, the company launched the Youth Employment Fund for SMEs amounting to R150 million. The fund's goal is to help small and medium enterprises create jobs for youth while simultaneously promoting business growth. These funds will be distributed among approximately 220 SMEs to create nearly 1,000 new jobs for individuals aged 18 to 35.
This announcement comes amid the ongoing youth unemployment crisis in South Africa, where, according to the latest Quarterly Labour Force Survey, about 4.8 million young South Africans remain jobless. The fund will provide qualified SMEs with financing ranging from R250,000 to R2 million, specifically designated for costs related to hiring new employees.
Representatives of the MK Party also expressed concern over unemployment, emphasizing that many young people face difficulties finding work despite the country's rich resources and growth potential. The party stated that solving youth unemployment requires a comprehensive approach involving collaboration between the government, the private sector, and civil society.
Jeremy Lang, Managing Director of Business Partners, believes that SMEs are the main drivers of the economy and job creation in the country. He noted that SMEs often invest in young talent first, providing work experience and creating opportunities in communities with limited prospects for formal employment.
According to Lang, through the Youth Employment Fund, SMEs aim to support viable, expanding businesses by reducing hiring-related cost barriers, allowing them to attract more young South Africans into the economy. The fund is expected to support around 220 SMEs and help create almost 1,000 new jobs.
The company specified that to participate in the program, businesses must meet certain criteria: they must have at least two years of operational history, be viable and solvent at the time of application, and demonstrate a clear plan for creating new jobs. The financing will cover labour-related expenses for up to two years.
To improve access to funds for SMEs, the Fund offers an initial grace period of six months, during which only interest is paid. The financing rate is typically Prime minus 2%, but the final price is determined individually for each application.
Lang stressed that recipients cannot use the funds for other purposes. Proof of new employees, along with employment contracts and payroll reporting to SARS, must be provided. Payments are made in tranches based on achieving specific milestones: one initial payment, a second after six months, and a final one after 12 months, provided proof of diligent employees is submitted.
He also reported that after each period, Business Partners will require documentary confirmation of fund usage. Lang explained that the fund is a loan with an accessible interest rate, which must be repaid within 60 months, with the first six months only requiring interest payments.
Lang noted that although Business Partners has previously run youth development projects, unemployment remains a serious issue requiring partnership between business and government. He pointed out that the youth unemployment rate under 35 is averaging 40%, which could lead to significant economic and social instability.
He stated that the government must lay the foundation for creating sustainable jobs. While the government implements skills development programs, these skills must be integrated into the economic system through new jobs. Lang added that the government itself does not possess sufficient capacity to absorb a large number of employees due to pressure on the wage bill.
In Lang's view, jobs will primarily be created by SMEs, as they play a significant role in generating such opportunities. However, he also noted that SMEs face growth challenges due to fuel prices and wage costs. He called on the government to simplify doing business, reduce bureaucratic hurdles, ease licensing, and significantly simplify the tax regime.
