Development finance institution the African Development Bank Group (AfDB) has awarded a $1-million grant to South Africa’s National Business Initiative (NBI) to strengthen efforts to build a dynamic, demand-led skills ecosystem that enables South Africans, particularly young people, to access emerging job opportunities in the green economy.

The funding will support the country’s Just Energy Transition Skilling for Employment Programme (JET SEP), led by the NBI in partnership with management consultancy Boston Consulting Group.

The initiative coordinates private-sector efforts to prepare the workforce for the energy transition, in tandem with the government’s JET Skilling Implementation Plan, focused on inclusive workforce development and sustainable job creation.

The grant will finance this programme’s first phase, including feasibility studies for the design of skills development zones and capacity building within the public technical and vocational education and training system, the AfDB says.

Skills development zones will anchor the delivery of inclusive skills and foster local economic growth during the country’s just energy transition.

The current grant will support the government’s efforts to identify the skills needed for the sector, with a particular focus on renewable energy, the bank notes.

The grant is provided through the AfDB's Fund for African Private Sector Assistance (Fapa).

“By linking a strong private-sector coalition, which is the engine for job creation, with government, academia and nongovernmental organisations, the Fapa grant will play a catalytic role to support informed policy decisions in skills development and labour market programmes.

“It will also strengthen skills development efforts for the growth of small, medium-sized and microenterprises and the creation of jobs for youth in South Africa’s green economy,” says AfDB Southern Africa director-general Kennedy Mbekeani.

“This grant is a critical step toward turning vision into action, strengthening the national skills system, and ensuring that all South Africans are equipped to seize new opportunities in the green economy,” says NBI CEO Shameela Soobramoney.

“Working alongside our partners and stakeholders, we are building an inclusive future-ready workforce and stimulating local economies in a way that leaves no one behind,” she says.

Further, the grant builds on the AfDB's significant investment in South Africa’s energy sector. Since 2007, the bank has invested $3.4-billion to support energy infrastructure, including renewable energy in the country.