South Africa's digital skills push could need R2.5 billion ($152 million) from existing skills funds to reach an extra 20,000 young people by 2028, according to TechCabal's report from the CollectiveXChange 2026 summit in Johannesburg.
Where the money would come from
Yellowwoods executive director Nicola Galombik said the amount could come from existing resources, including the National Skills Fund and the Labour Activation Programme. TechCabal stresses she did not present it as money already secured.
The model combines employer contributions with government skills funding, sharing the cost of preparing young people for work and giving them workplace experience. "We have built the outcomes-funding mechanism. Now we need to scale it," Galombik said.
What it has done so far
Ziaad Suleman, chief executive of Cassava Technologies and chair of The Collective X board, said the initiative has brought together 600 organisations, mobilised R600 million ($36.4 million) in its fund and reached 4,000 beneficiaries across all nine provinces, according to TechCabal. "This is not enough. We need scale," he said.
Galombik cited a 95% absorption rate among young people completing work-based learning programmes. That is an organiser's figure, and TechCabal does not report an independent check.
The bigger target
The Collective X coordinates South Africa's National Digital Skills Plan, which aims to put 500,000 young people into in-demand digital roles by 2034, TechCabal reports.
The bottleneck is access
Rudi Dicks of the Presidency's Project Management Office said complex funding processes can deter smaller employers: "Some businesses do not apply because they lack a human resources department to manage the process." Simpler applications, reporting and incentives could widen participation, according to TechCabal.
TechCabal adds that artificial intelligence is making the need more urgent as the skills employers want change.
