Minister Nomakhosazana Meth at the Labour Activation Programme (LAP) Hand-over

Programme Director

Deputy Minister of the Department of Employment and Labour, Mr Jomo Sibiya

Premier of Mpumalanga, Honourable Mandla Ndlovu Representatives of the House of Traditional Leaders

Members of the Mpumalanga Provincial Parliament present here today

MEC Economic Development Makhosazana Masilela

Executive Mayor, Walter Mngomezulu Gert Sibande District Municipality

Executive Mayor Ehlanzeni District Municipality, Cllr Terra Shabangu,

Councillors present

Mr Folas Sibuyi, Secretary General Ehlanzeni Region, ANC All Political Leaders present today

Representatives of the 15 LAP Partners Department officials from various departments Senior officials of the DEL led by the ADG Distinguished Guests,

Good morning, in this beautiful province of the Rising Sun!

Mpumalanga is called the “Place of the Rising Sun." It is the heartbeat of economic activity, a province that connects industries, markets, and livelihoods. It is here that hard work turns into success, innovation meets determination, and every road and railway is a path to prosperity.

Today, as we hand over these Labour Activation Program (LAP) contracts, we are not simply launching projects but igniting opportunities. Opportunities that will reach thousands of individuals, uplift families, and strengthen communities. We are investing not just in businesses, but in people, skills, and making dreams that deserve to be realized a possibility. This is what real economic transformation looks like—not just numbers on a page, but real impact on the lives of those who call Mpumalanga home

Mpumalanga is a province of movement, boasting infrastructure that connects us to greater possibilities. This province is on the move—literally and figuratively. Its strategic location makes it one of the most critical transport hubs in the country. It is home to one of the most important economic corridors, the Maputo Corridor, a vital route that links us to the Port of Maputo and connects South Africa to the rest of the world. Through this corridor, we export our agricultural produce, our minerals, and our manufactured goods, which fuel the country's economy. It is this very corridor that has the power to transform small businesses into major players, to take local industries and give them a global footprint.

But a corridor is more than just a stretch of road or railway. It is an artery of opportunity. It is the link between the hardworking farmer and international markets. It is the bridge between a skilled artisan and the industries that need their expertise. It is the connection between an entrepreneur in a rural town and the customers who will sustain their business. This is why investment in our transport infrastructure is not just about roads and rail, but it is about the people. It is to ensure that no person in this province is left behind, that no business is isolated, and that no dream is too far to reach.

But we know that infrastructure alone is not enough. The true power of this province is its people. It is the farmers who till the land, ensuring that South Africa and beyond are fed. It is the miners who extract the wealth beneath our feet, supporting booming industries and energy. It is the builders and engineers, the technicians and entrepreneurs, the educators and healthcare workers, all contributing to a province that is determined to rise.

With these projects, we are saying to the people of Mpumalanga: we see you, we believe in you, and we are committed to your success. We are saying to the youth that there is space for you in this economy, that your talents and skills are needed, as the future belongs to you. We are saying to businesses that you are not alone, the government is here to support you and to open doors to break down barriers that have held back growth for too long.

This province is not waiting for opportunity—it is creating it. Mpumalanga is not standing still—it is moving forward, faster, stronger, with purpose and determination. And to every citizen of this great province, I say: this is your moment. The contracts wesign today, the infrastructure we build, the industries we support—all of it is for you. Take hold of these opportunities. Build. Innovate. Create. Contribute. Because a rising Mpumalanga means a rising South Africa, and the future we all dream of starts with the work we do today.

You cannot speak about Mpumalanga's economy without speaking about coal and energy. This province is the energy powerhouse of South Africa, home to vast coal reserves that have sustained our industries, powered our homes, and driven economic growth for generations. Mpumalanga does not just mine coal—it powers the nation through power stations like Kusile, Medupi, Kendal, Duvha, Matla, Majuba, and Arnot, among others, sustaining jobs and ensuring that Mpumalanga remains the heartbeat of South Africa's economy.

At the same time, we recognize that the world is changing, and so must we. As global markets shift towards cleaner energy, Mpumalanga is not being left behind. We are embracing opportunities in renewable energy, sustainable mining practices, and industrial diversification. The transition does not mean abandoning our strengths—it means building on them, modernizing our industries, and creating a future where energy continues to drive growth and opportunity.

This province is not just about extracting resources—it is about building legacies, transforming industries, and ensuring that every resource benefits the people who call Mpumalanga home. Coal built this province's economy, and as we move forward, Mpumalanga will continue to be the engine of South Africa'sprogress, adapting, growing, and leading the way into a new era of energy and industrial development.

Every 1 per cent of GDP growth creates about 130, 000 new jobs, and our GDP growth has on average been between 1 to 1, 5 percent over the past decade (2014-2024), significantly lower than other emerging markets. There are various contributing factors to this slow growth, for example, the electricity shortages, structural challenges leading to inefficiencies, global slowdown and commodity price fluctuations, and the thorny challenge of unemployment, which currently sits at 31,9%, which translates to 7,9 million people. If we are to consider the discouraged group who are Not in Employment, Education or Training (NEET) the picture is even gloomier, which according to the latest Quarter 4 Labour Force Survey is recorded to be 45, 5% or 11, 8 million.

Meanwhile approximately 1 million young South Africans become available to the labour market. However, only 400,000 find steady work; 300,000 find some work, while about 300,000 never find work. It is clear that without decisive and intentional interventions by government working with the all the relevant partners in our society, this scenario will possibly not get better considering that young people struggle to access the labour market as they lack work experience- and in some cases possess skills that do not match those needed by the labour market. It is for this reason I emphasise that our response must be decisive and I dare say - Aggressive!

I am pleased and equally excited that today, at this municipality of Mbombela we gather to handover the Labour Activation Program contracts to 15 partners, who will create job opportunities for 9 616 beneficiaries to the value of over R514million (to verify the figure) across 4 districts namely; Nkangala, Ehlanzeni, Gert Sibande, and Mbombela districts and spanning to over 11 local municipalities. This Labour Activation Program is our direct policy response to unemployment, affording job seekers opportunities to improve their employability and connect them to the world of work. Our focus should combine skills training, work experience, and job placement services to help participants transition into the labour market.

Ladies and gentlemen, as I interact with South Africans from across our society, I am encouraged by the voices of young people who, with their brilliant and innovative ideas, want to start their businesses and create employment instead of being job seekers. We need more entrepreneurs- we need more small local businesses, and we have the advantage of a young population. I have instructed my department to strengthen the entrepreneurship support of LAP in order to promote self- employment by offering training, mentorship, and access to funding for aspiring entrepreneurs.

Furthermore we want to map the strategic economic advantages of each province and ensure alignment of training and opportunities with the labour market needs of growing sectors. As we move forward, we want to create sustainable jobs in sectors with high demand and great economic potential especially the green economy; oceans economy; digital skills; waste economy; water& energy and quick services restaurants & e-commerce.

Mpumalanga recorded a decrease in unemployment by almost 3 percent from 37.4 percent in Quarter 2 of 2024 to 34.7 percent in Quarter 4 of 2024. This is commendable, it shows that government interventions are starting to show impact. This,however, should not make us relax, because this unemployment rate still remains higher than the national average of 32.9%.

Further, we are strengthening private sector partnerships to collaborate in creating more job opportunities and ensure training programs are relevant to industry needs. We need every South African to believe in the power of collective action. This drive grew stronger after President Ramaphosa established an Inter-Ministerial Committee of government and business partnership on unemployment, skills development and SMME support, which is chaired by myself as the Minister of the DEL. Throughout this partnership, our targeted interventions for groups disproportionately affected by unemployment, such as youth, women and people with disabilities remain our priority.

After my appointment as Minister of DEL, I became involved in labour inspections and blitzing especially in problematic sectors such as retail, hospitality and agriculture – on early days we observed that our country has an inherent high incidents of non- compliant employers who fail to observe our labour laws such as the Unemployment Insurance Act, Occupational Health & Safety, Compensation for Occupational injuries & Diseases Act the Basic Conditions of Employment Act, the Employment Equity Act, the National Minimum Wage Act which as of 2025 the national minimum wage in South Africa is R27.58 per hour.This was increased from R25.42 per hour in March 2025 reflecting an 8.5% raise. 

It became clear that the capacity of the department's Inspection and Enforcement Serviceinspectorate was not enough to carry this mandate, I committed to bolster the ability of the department to conduct inspections to strengthen workplace compliance through expanding our inspectorate. I ampleased to tell you that, we have since delivered on this promise! I introduced a massive recruitment internship program that will increase the enforcement capability of the department from the current 2 000 inspectors and bring an additional 20 000 Inspector and Enforcement Interns over the next two years, on boarding 10,000 interns annually, recruited across all nine provinces, thereby boosting the department's capacity to promote fair labour practice nationwide.

 I would like to send best wishes to those of you that responded to the official advertisement of the first cohort that was published in the Department of Public Services and Administration, DPSA Vacancy Circular 5 of 2025. This opportunity will give practical on-the-job experience to those successful which will help tackle youth unemployment and promote economic upliftment in local communities.

Further we have strengthening our efforts of taking the DEL services to the people. We have recently contracted a manufacturer to supply the department with 17 busses that are fully equipped to render UIF and other Departmental services to communities. The buses are 14 metres in length and will have state of the art equipment and capability to provide services on wheels, especially to the most rural and remote areas in the country.

I am appealing to communities to protect and preserve these important assets because they are instrumental in ensuring that services of the department are rendered. Another disturbing discovery is the high number of employers who employ non documented foreign nationals, further reducing opportunities for South Africans. To address this, the department will soon take to parliament the amendments of the National

Labour Migration Policy which afford the Minister of Employment and Labour to set aside a threshold for jobs that should be reserved for South Africans- this step will go a long way to ensure the absorption into jobs for our unemployed youth.

President Ramaphosa, during the State of the Nation Address (SONA), reaffirmed his government's commitment to addressing unemployment, strengthening skills development, and fostering inclusive economic growth. He called for decisive interventions that link job seekers with opportunities and support for small businesses, and drive investment in key sectors. The work we do here today is a direct response to this commitment.

Today, we hand over 15 contracts to the partners appointed and represented in this gathering. I give a brief overview of these contracts grouped by sectors of their involvement:

       Amos     Kgapamadi     Community              Organisation   (also Manufacturing, ICT) – 516 beneficiaries – R30, 557,950
       Community Enterprise Fund (Pty) Ltd – 417 beneficiaries – R27,344,775
       Psalms Academy – 1,770 beneficiaries – R116,067,750
       Sindane    Mining   Ventures    –    3,000                 beneficiaries            – R67,918,500
       Sinovuyolethu Training (Pty) Ltd – 100 beneficiaries – R2,429,500
       M2 Engineering Academy (also Construction, Services, Enterprise Dev.) – 485 beneficiaries – R23,865,806

• Information and Communication Technology (ICT)
         Amos     Kgapamadi     Community              Organisation   (also Agriculture, Manufacturing)
         Khesho Ink (Pty) Ltd – 300 beneficiaries – R7,417,500
         Nkangala Skills Centre (also Services, Engineering) – 218 beneficiaries – R32,510,150
         Yenzo   IT   Solutions   (Pty)   Ltd   –   221             beneficiaries   – R14,057,31
• Hospitality

       Immaculate Hospitality Academy – 500 beneficiaries – R29,691,500
       Thaku Trading – 100 beneficiaries – R8,815,000

•   Construction & Engineering

       Okuhlekodwa Training Centre (Engineering) – 47 beneficiaries – R15,738,000
       Mpumalanga Economic Growth Agency (Civil Engineering, Services, Food & Beverages) – 185 beneficiaries – R8,702,125
       Ndim's Business Enterprise Group (Construction, Services) 657 beneficiaries – R43,082,775
       M2 Engineering Academy (also Agriculture, Services, Enterprise Dev.)

• Services & Enterprise Development (to verify this portion)

       M2 Engineering Academy
       Ndim's Business Enterprise Group
       Nkangala Skills Centre
       Mpumalanga Economic Growth Agency

These projects cover various districts such as Nkangala, Ehlanzeni, Gert Sibande, and Ehlazeni spanning over several local municipalities including Emalahleni, Mbombela, Bushbuckridge, and others

The partners we hand over these contracts today have been given a condition to guarantee jobs for beneficiaries. I have made it a requirement that all the LAP partners recruit at least 70% of the beneficiaries from the Employment Services of South Africa (ESA) platform, which is a government system placed to connect job seekers with available opportunities. The department over the past 3 days has been to three different places assisting the job seekers with registration on this system. I encourage all job seekers to register on this platform because the opportunities for exposure are not just limited to the DEL but they are across multiple sectors of the economy. We want to leave no one behind, and we want to ensure equal opportunity for everyone!

The partners will make a pledge committing to ensure job placements for all the beneficiaries post-skilling and it is my belief this is not just rhetoric but a commitment that will lead to tangible and measurable results. In this regard my department undertakes to strengthen the monitoring of these partnerships.

Let us continue working together to build a better country- collectively working together, we can change the trajectory of unemployment. I would like to thank the Premier of Mpumalanga and his executive for hosting us today in the province of the rising sun!

I further thank everyone who has made this day possible—our partners, community leaders, the Department's dedicated staff, and every single person who has contributed in one way or the other. To the government officials from different departments – I appreciate your continued efforts in ensuring that government work together

To the officials of the DEL, the exhibitors and the political leadership of the province – I thank you all for all your efforts and gracing this event today, it would not have been successful without you all.

We move forward and make the difference

I thank you all!​

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