By: Ntsako Baloyi - senior manager within the Technology business at Accenture, Africa

South Africa, I believe is at a talent and innovation tipping point. If we don’t act now, we risk falling even further behind in the global race for competitive advantage. To put it bluntly the country is facing a triple crisis: an ever-widening digital skills gap, a challenged education system, and youth unemployment rates that threaten to destabilise our future. It’s time to stop paying lip service to these issues and start driving real, meaningful change. The truth is that we have lagged in areas where we could have been at the forefront of technology in the past. Each missed chance has costly implications for both current and future generations.

The call to action is clear: The private sector must step up further and invest more in South Africa's skills future. Government initiatives, while necessary and laudable are not enough. We need a business-driven approach to accelerate the development of our digital workforce, fix our education system, and create opportunities for our youth—particularly young women—who continue to be left behind in the technology space. By focusing on skills development, mental health, and mentorship, we can close the gap and unlock the potential of the next generation.

As a leader in tech innovation, Accenture is well-positioned to shed light on the depth of these issues, particularly the digital skills gap in Science, Technology, Engineering, and Mathematics (STEM). Despite global advancements, South Africa's digital competencies lag significantly, as the country ranks 84th out of 135 in the Wiley Digital Skills Gap Index. The slow progression can largely be attributed to a lack of adequate education, socio-economic disparities, and the 'brain drain,' where highly skilled professionals leave the country in pursuit of better opportunities.

To address the skills gap, we must first tackle the educational crisis that fuels it. South Africa’s education system has consistently ranked among the worst globally. The 2019 Trends in International Mathematics and Science Study (TIMSS) placed South Africa near the bottom in performance for primary and secondary education. More alarmingly, a 2021 study revealed that 81% of South African Grade 4 students cannot read for meaning, the same figure as in 2011, erasing a decade of slow progress.

This educational failure is exacerbated by inadequate government interventions. While the Department of Basic Education has acknowledged the issue, the promised National Reading Plan remains poorly implemented. Without a strong foundation in basic education, students cannot transition successfully into higher education fields that are critical to closing the skills gap, particularly in STEM disciplines.

South Africa's alarming youth unemployment rate further compounds these challenges. According to the 2022 Labour Market Dynamics report, women are disproportionately affected. For instance, while 31.9% of young men are employed, only 24.2% of young women have jobs, and the unemployment rate among young females stands at a staggering 49.4%.

This gender disparity in employment reflects broader systemic barriers for women, who are often hindered by social factors that prevent them from pursuing educational and career advancement. In response, there is an urgent need for programs and initiatives that prioritise skills development and employment for young women. These initiatives should aim to rectify this gender gap and uplift those who are most vulnerable in the job market.

The private sector must play a crucial role in addressing the funding shortfall that inhibits South Africa’s educational and employment landscape. Government-led initiatives, though well-intentioned, often face bureaucratic delays and financial constraints. In contrast, the private sector can drive more agile, industry-focused solutions. For instance, Accenture has a vested interest in addressing the skills gap through targeted investments in educational institutions and STEM programs.

One innovative approach would be to establish new universities specifically focused on producing graduates in high-demand STEM fields. South Africa's slow progress in building academic capacity, particularly in STEM disciplines, underscores the need for such structural changes. The Oliver Tambo University of Science and Technology, for example, is one proposal that holds significant promise for increasing STEM talent in South Africa. Alongside the establishment of such institutions, the private sector can contribute through scholarships, mentorships, and other funding models that ensure talented students are not barred from education due to financial constraints.

In addition to funding and education, South African businesses must prioritise creating a conducive working environment that retains top talent. The “brain drain” has cost the country some of its brightest minds, with skilled professionals opting for more attractive opportunities abroad. To retain talent, companies need to provide fair compensation, a supportive working environment, and opportunities for growth.

Mental health is also a critical issue. According to the third annual Mental State of the World Report by Sapien Labs, South Africa had the highest percentage (35.8%) of distressed or struggling workers. In competitive fields like tech, the mental toll can be severe. Businesses must therefore prioritise both mental and physical well-being. 

South Africa of course cannot overcome its challenges in isolation – partnerships between the public and private sectors are essential. NGOs and tech hubs, such as WeThinkCode, GirlCode and youth@WORK, are already making headway in addressing critical skills shortages and should be leveraged for greater impact. South Africa's well-established tech ecosystem, primarily in Johannesburg, Cape Town, and Durban, provides an ideal foundation for such initiatives.

Moreover, mentorship programs are crucial. South Africa boasts exceptional leaders in the tech industry who can inspire and guide the next generation. Every organisation should adopt mentorship as a core component of its talent development strategy.

Finally, a digital platform that connects job seekers with mentors and employers could revolutionise the job market. Such a platform could use AI to match candidates with opportunities based on their skills and experiences, streamlining the job search process and ensuring that young talent is adequately matched with industry needs.

By leveraging partnerships, promoting mental health, and investing in education and mentorship, we can cultivate a thriving workforce prepared for the demands of the Fourth Industrial Revolution.