The Youth Employment Expert - Nkosinathi Mahlangu, Youth Employment Portfolio Head at Momentum Group

Nkosinathi says: “Youth employment remains one of South Africa’s most pressing challenges, and while tonight’s SONA laid out government’s commitments, we need defined timelines and measurable outcomes.

The launch of a Graduate Recruitment Scheme in the public sector is a welcome move, but a concrete plan outlining the “how” is crucial. Similarly, government’s commitment to investing in digital public infrastructure presents an opportunity to leverage the expertise of local technology graduates and professionals, ensuring an inclusive approach that nurtures homegrown talent.

The 3% economic growth target is ambitious, and achieving it will require clear execution strategies, particularly in public-private partnerships that enable job creation. The R900 billion infrastructure investment is a major opportunity, but it must be ring-fenced to benefit unemployed South Africans, with at least a 60/40 split prioritising youth employment. Only where skills gaps exist should expertise be imported, and even then, it should be structured around skills transfer initiatives.

While support for youth, black-owned, women-led and disabled-owned businesses was reiterated, we’ve heard this before – it’s now time to move from words to concrete action. Are there specific sectors that can serve as low-hanging fruit for transformation?

The creation of 235,000 work opportunities through SAYouth.mobi is promising on paper, but key questions remain: Do these jobs pay a living wage? Are they in high-growth sectors? Are they sustainable? The rural and agricultural sectors must also be part of the employment strategy, with clear youth-focused plans for land access and agri-business support.

The proposed Social Relief of Distress Grant-to-income support transition requires clarity - what will the financial model and actual benefit value be?

On education and skills development, it is encouraging to see increased bursaries for Foundation Phase teaching careers (via Funza Lushaka), and renewed focus on artisan skills through TVET Colleges. However, greater exposure and career awareness is needed to encourage young people to see these fields as viable pathways to employment and economic participation.

As South Africa takes the global stage with the G20 presidency, we have a unique opportunity to position African youth employment, entrepreneurship and financial inclusion as priorities on the international agenda. We need the kind of bold action that shifts policy into real, measurable change for young South Africans.”

The Education Expert - Arno Jansen van Vuuren, Managing Director at Futurewise

Arno says: "Education remains one of South Africa’s most critical investment areas, and tonight’s SONA reaffirmed the government’s commitment to strengthening early childhood education, improving foundational learning, and expanding skills development for future job markets. The Basic Education Laws Amendment (BELA) Act is set to drive much-needed reforms, while the record-high matric pass rate – which got a round of applause from the house – signals positive progress. However, the rising cost of education continues to outpace inflation, and while initiatives such as the comprehensive student funding model for the 'missing middle' are promising, financial pressures remain a significant challenge for families. Now more than ever, it’s crucial for parents to plan ahead and secure their child’s education, ensuring uninterrupted access to quality learning opportunities amid economic uncertainty."

The Personal Finance & Economic Expert - Jurgen Eckmann, Wealth Manager at Consult by Momentum

Jurgen says: "A State of the Nation Address is about setting a path forward, but as financial professionals, we also need to look in the rearview mirror –  are we making progress? While the President outlined bold commitments tonight, I’m still looking for the hard numbers that indicate we’re moving the needle.

Youth unemployment remains stubbornly high, despite job creation initiatives, and seems to have stagnated. In the first quarter of 2024, the unemployment rate among individuals aged 15 to 24 stood at 60.8%, with a slight decrease to 60.2% in the third quarter.

GDP growth is expected to struggle to break 1% in 2024, yet a 3% target for this year has been set. The economy contracted by 0.3% in the third quarter of 2024, following a 0.4% growth in the second quarter. This does not look promising for the President’s target.

With multiple government funds and capital-intensive projects announced, we must ask: can we afford this without overburdening taxpayers or going into more debt? To get the necessary funding to deliver on all of the Funds the President has spoken about, we’ll need to rely heavily on foreign investment, which means South Africa must position itself as an attractive and stable market for investors.

From an advisory perspective, the question for individuals is: How do you position your finances in this environment? Economic uncertainty underscores the need for structured financial planning –  whether it’s preparing for inflationary pressures, ensuring investment portfolios are globally diversified, or having contingency plans in place for policy changes like the NHI rollout.

The President emphasised public-private partnerships (PPPs), and that’s promising because the private sector is a key driver of economic activity. Municipal reform is critical –  dysfunctional local governments impact businesses, infrastructure and service delivery, which in turn affects investment confidence.

While we can commend progress on load shedding, it took years to reach this point. Water and infrastructure challenges need far quicker resolution. We also cannot overlook the impact of crime –  reducing crime will boost investor and tourism confidence, bringing much-needed capital into the economy.

Ultimately, the key takeaway is this: Hope must be backed by action, and action must be measured in tangible results. When we start seeing meaningful shifts in unemployment rates, GDP growth and fiscal sustainability, we’ll know the plans are working. Until then, cautious financial planning remains essential to navigate the road ahead."

The Energy Expert: David McDonald, CEO at SolarAfrica

David says: "Energy was a big focus of tonight’s State of the National Address – and rightfully so: South Africa’s energy landscape is currently undergoing a profound transformation. The significant reduction in load shedding over the past year – despite last week's brief return – reflects the impact of ongoing energy reforms and private sector participation. The President’s SONA reaffirmed the government’s commitment to long-term energy security through the implementation of the Electricity Regulation Amendment Act, the expansion of grid capacity, and the continued growth of independent power generation. Since lifting the licensing cap in 2022, private sector investment has driven an energy revolution, unlocking 22,500MW of new capacity in the pipeline. The planned expansion of 14,000km of new transmission lines remains a work in progress, but it is critical to unlocking further renewable energy projects. Energy remains central to South Africa’s economic revival, and while progress has been made, continued policy certainty, regulatory streamlining and infrastructure investment will be essential to achieving a more resilient, competitive and sustainable energy market."