Malatsi warns 90,000 ICT jobs vacant as young South Africans struggle to find work

Communications and Digital Technologies Minister Solly Malatsi has highlighted a critical issue facing South Africa's digital economy: the shortage of skilled workers to fill 90,000 vacant ICT jobs. Speaking at the Collective Xchange 2026 conference in Johannesburg, Malatsi emphasized that despite the country's 300,000 ICT positions, many highly qualified young graduates struggle to secure entry-level opportunities.

He described this as a "digital skills paradox," where agreement exists on the need for work experience, but very few are willing to provide it. The recently updated Digital Economy Masterplan aims to bridge this gap by establishing a framework to unlock the sector's potential. The masterplan estimates the digital economy could increase South Africa's GDP contribution from 7% to 8% to over 15% with proper investment and partnerships.

However, Malatsi warned that merely developing infrastructure is insufficient; the country must also cultivate a workforce equipped with digital skills such as coding and artificial intelligence. South Africa's youth unemployment rate stands at 47.4%, with five million people aged 15 to 34 unemployed. This presents an opportunity for companies to tap into a pool of eager young talent, yet Malatsi noted that approximately 28,000 testing and application development jobs have been outsourced abroad.

He urged the government to take responsibility but stressed that lasting solutions require active participation from businesses. Malatsi criticized skills programs that focus solely on enrollment and completion rates, advocating for demand-led training aligned with employer needs and measured by actual job placement or new business creation.

He called for greater recognition of micro-credentials and alternative learning pathways, urging employers to develop structured entry-level opportunities, apprenticeships, and mentoring programs. Malatsi challenged industry leaders, asserting that South Africa's problem lies not in a lack of talent but in the absence of prepared individuals willing to provide them with a start.