AfDB Awards $1M Grant to Boost Green Skills and Youth Jobs in South Africa

In a significant push to equip South African youth for emerging job opportunities in the green economy, the African Development Bank (AfDB), through its Fund for African Private Sector Assistance (FAPA), has awarded a $1 million grant to the National Business Initiative (NBI). The grant will support the first phase of the Just Energy Transition Skilling for Employment Programme (JET SEP)—a strategic effort to align workforce capabilities with the needs of a low-carbon, sustainable economy.

The initiative comes at a crucial time, as youth unemployment in South Africa remains critically high, with 46.1% of people aged 15–34 reported unemployed in the first quarter of 2025, according to Statistics South Africa. The JET SEP programme aims to bridge this gap by building a demand-led, inclusive skills ecosystem, with particular focus on young people and marginalized groups.

A Green Workforce for a Just Transition

The JET SEP is a private-sector-led initiative developed in collaboration with Boston Consulting Group (BCG) and in alignment with the South African government’s JET Skilling Implementation Plan. The programme is a key part of the national Just Energy Transition (JET) strategy, which seeks to move the country away from coal and other carbon-intensive energy sources while ensuring social and economic inclusivity.

This first phase of the programme, financed by the AfDB’s FAPA grant, will fund:

• Feasibility studies to establish Skills Development Zones (SDZs) — regionally anchored centers designed to deliver tailored training aligned with local green energy demands.

• Capacity building within the country’s public technical and vocational education and training (TVET) institutions to improve their ability to deliver future-ready skills.

• Coordination between government, business, academia, and civil society to promote inclusive policy-making and local economic development.

SDZs are envisioned as hubs of practical training, innovation, and economic revitalization, particularly in regions impacted by coal phase-outs, such as Mpumalanga and Limpopo.

Catalyzing Public-Private Collaboration

Over 30 leading South African CEOs, public officials, and civil society leaders have endorsed the JET SEP since its 2024 launch, reflecting strong cross-sector support. The programme has also received endorsement from the JET Project Management Unit under the Presidency of the Government of South Africa.

“This grant is a critical step toward turning vision into action,” said Shameela Soobramoney, CEO of the National Business Initiative. “It will strengthen the national skills system and ensure that all South Africans are equipped to seize new opportunities in the green economy. We are proud to continue working alongside our partners to build an inclusive, future-ready workforce.”

The programme’s implementation model fosters collaborative leadership, placing employers at the center of skills design while working alongside government agencies, NGOs, and academic institutions.

Supporting Long-Term Green Growth and Job Creation

According to Kennedy Mbekeani, AfDB Director General for Southern Africa:

“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.”

He added that the grant will also support the development of Micro, Small, and Medium Enterprises (MSMEs) in the green sector—expanding opportunities not just for formal employment, but for entrepreneurship and inclusive local economic development.

A Legacy of Green Investment

The African Development Bank has long been a major investor in South Africa’s energy transformation. Since 2007, the Bank has committed $3.4 billion to support the country’s energy infrastructure, including a substantial portfolio in renewable energy projects.

This new $1 million grant builds on that legacy, focusing not just on technology and infrastructure, but also on the human capital needed to sustain and scale a green economy.

The JET SEP’s goal is to identify critical green skills, from solar and wind technician training to green construction, data analytics, energy auditing, and project management. These are the capabilities that will be in increasing demand as South Africa accelerates its shift toward low-emission development pathways.

Inclusive Growth for a Sustainable Future

The initiative is designed to leave no one behind, emphasizing the participation of women, youth, and communities most affected by the energy transition, including former coal workers and rural populations.

Three young women recently featured in an NBI-led training programme exemplify this goal. Through hands-on technical training, they are now equipped with the practical skills to build careers in South Africa’s green economy—a powerful symbol of what targeted investment and collaboration can achieve.

As South Africa navigates its complex transition to a clean energy future, this partnership between the AfDB, FAPA, NBI, and BCG offers a replicable model for other nations—one that integrates green economic policy with inclusive workforce development.