Eastern Cape Youth Abandoned as Isiqalo Fund Fails to Deliver Jobs

Eastern Cape – Young people in the Eastern Cape are being left behind as the Isiqalo Youth Fund continues to underspend millions, raising serious questions about the effectiveness of the provincial government’s youth employment initiatives.

Youth Unemployment at Crisis Levels

The province continues to experience some of the worst labour market outcomes in South Africa. Official figures for the third quarter of 2025 reveal an unemployment rate of 41.2%, with expanded unemployment exceeding 50%.

In non-metro areas, expanded unemployment reached nearly 60%, highlighting the severe economic exclusion facing rural and peri-urban communities.

Millions Allocated, Little Delivered

Premier Oscar Mabuyane has confirmed that although R30 million was allocated to the Isiqalo Youth Fund in the 2024/25 financial year, only R17.1 million was disbursed – benefiting just 22 young entrepreneurs.

Approximately R8 million was rolled over due to administrative delays and slow implementation.

“This level of underspending is indefensible in a province where hundreds of thousands of young people are unemployed,” Dr Vicky Knoetze said.

Oversight Visits Reveal Systemic Weaknesses

Oversight visits conducted last year exposed several shortcomings: uneven geographic distribution of funding, incomplete infrastructure at funded projects, limited technical support to beneficiaries, and weak verification of operational activity.

In some cases, inspection teams were denied access to project sites, employees were absent, and beneficiaries were operating from unsuitable premises.

These findings indicate systemic weaknesses in monitoring, accountability, and post-funding support.

High Cost, Low Impact

While the Premier maintains that no misuse of funds has been detected, the 22 funded businesses reportedly created just over 100 jobs – at an average public cost of roughly R89,000 per job.

“In a province facing mass youth unemployment, this modest outcome cannot be considered a success,” Dr Knoetze said.

She added: “Every rand allocated to youth development must translate into sustainable businesses, durable jobs, and measurable economic inclusion.

Instead, Isiqalo has been characterised by slow rollout, underspending, uneven reach, and insufficient support.”

DA Calls for Full Transparency and Action

Dr Knoetze has written to the Chairperson of the Portfolio Committee on the Office of the Premier requesting a full report on the Isiqalo Youth Fund, including district-level allocations, beneficiary performance, verification outcomes, and sustainability indicators.

She will also request the Auditor-General to review the Fund’s implementation to ensure future funding is tied to verified delivery and real youth employment.

“Young people in this province need opportunity, urgency, and competent governance – not selective handouts with no accountability,” she said.

“The Democratic Alliance will continue to press for transparency, stronger oversight, and a youth development strategy that matches the severity of the crisis confronting our province.”