With unemployment rates soaring, particularly among the youth, South Africa and much of Africa are facing an economic and social crisis.

According to Teboho Makhabane, head of environmental, social and governance and impact at Sanlam Investments, the green economy already offers a catalytic path to address this crisis by aligning job creation with climate resilience.

However, Africa’s blue economy remains largely untapped.

“Africa is surrounded by vast oceanic and coastal resources, and according to African Union projections, the blue economy will generate $405-billion and support 57-million jobs by 2030,” Makhabane says.

As the only African nation that is a permanent member of the Group of 20 (G20), South Africa’s presidency of this year’s G20 Summit provides an “unprecedented opportunity” to showcase the value of the continent’s 30 500 km coastline, if used sustainably.

“In South Africa, this offers strategic opportunities beyond job creation, tourism, and fisheries, extending into aquaculture, coastal infrastructure, marine conservation, and climate-adaptation services like mangrove restoration. Yet these opportunities remain underutilised,” Makhabane explains.

According to a South African Department of Forestry, Fisheries and the Environment report, the coastal and oceans economy holds significant untapped potential, Sanlam points out.

Forecasts suggest it could contribute about R166.6-billion to South Africa’s GDP, or about 4.54%, and create over 608 000 jobs – equivalent to 2.9% of total employment – by 2035, if structural challenges are addressed and opportunities are fully realised.

Sanlam, through its anchor sponsorship of the 2025 G20-B20 Summit, says it is committed to unlocking economic opportunities for the continent that are both climate-aligned and inclusive.

“We believe the blue economy is one of the strategic levers that can help achieve this,” Makhabane adds.

Sanlam says the blue economy – defined as the sustainable use of ocean and coastal resources for economic growth and improved livelihoods while preserving ecosystem health – can realistically address structural unemployment on the African continent in three key ways.

The first is through scalable labour-intensive sectors, whereby Makhabane says coastal tourism and artisanal fisheries alone already account for more than 49-million jobs across the continent.

If scaled responsibly through community-based co-management, sustainable aquaculture, and low-impact infrastructure development, she says these sectors can absorb large numbers of low- and semi-skilled workers.

Sanlam’s exploration of blue investment propositions points to parametric insurance, mangrove-based carbon credits, and sustainable ocean funds as viable pathways.

Secondly, Sanlam highlights the role of youth-centred innovation.

As highlighted in the World Bank’s Blue Economy for Resilient Africa Program, Sanlam notes that marine spatial planning and climate-informed innovation can unlock new frontier industries – including marine biotech, coastal resilience tech, and data-driven marine services.

“These areas are ripe for youth-led innovation, especially when paired with access to training, funding, and public-private partnerships,” Makhabane says.

Sanlam explains that it is already investing in pioneering avenues to finance ocean-based enterprises that drive marine conservation, foster economic resilience, and create jobs in coastal communities.

Lastly, with Africa’s coastal zones urbanising rapidly, investment in coastal municipalities can foster ‘blue enterprise zones’ that integrate infrastructure, small- to medium-sized enterprise (SME) incubation, and ecosystem restoration.

This strategy aligns with Sanlam’s phased roadmap, which places impact measurement and data governance at the core of a responsible blue economy rollout.

FROM G20 INTO THE FUTURE

With 39 of Africa’s 55 countries having coastlines, the continent is uniquely positioned to leverage ocean-based sectors for inclusive economic growth.

“If we work together, the blue economy becomes not only a viable, but a strategic avenue to address youth unemployment across a majority of African nations,” says Makhabane.

In South Africa, the potential lies in bridging social equity with blue economy opportunities.

The country’s youth unemployment rate is nearly 60%, and coastal provinces – from the Eastern Cape to KwaZulu-Natal – are rich in blue assets yet economically marginalised.

“By strategically redirecting capital toward sustainable marine conservation, coastal tourism development, and ocean-based SME funding, South Africa can create thousands of new jobs that are climate-aligned, socially meaningful, and a boost to our economy,” Makhabane concludes.