NSFAS and NYDA join forces to empower rural youth through education and entrepreneurship

The National Student Financial Aid Scheme (NSFAS) has confirmed that it has partnered with the National Youth Development Agency (NYDA) to bring about job and entrepreneurship opportunities to rural youth.

This week, the two government agencies confirmed in a statement that they have signed a Memorandum of Understanding (MOU), which aims to decentralise access to opportunities using the NYDA's national footprint, particularly in rural areas where access to technological infrastructure is limited.

The MOU follows a high-level meeting between the two agencies this week to strengthen the partnership in helping young South Africans access higher education, skills training, and job opportunities.

The meeting was led by NSFAS Acting Chief Executive Officer, Waseem Carrim, and NYDA Executive Chairperson, Dr Sunshine Myende, who both reaffirmed the shared commitment of both institutions to strengthening the transition for youth to move seamlessly from education into employment and entrepreneurship.

This initiative comes as the country continues to battle high youth unemployment rates, with the latest data from Statistics South Africa indicating a 45.5% unemployment rate among young individuals (aged 15-34 years), in contrast to the national average of 32.9% in the first quarter of 2024.

Meanwhile, for the first quarter of 2025, this trend stands at a staggering 46.1%, with significant disparities across age groups and regions, highlighting a deepening crisis in the labour market.

Carrim said the two organisations have also approached the Department of Higher Education and Training (DHET) and other stakeholders to create a more inclusive, responsive, and impactful post-school education and training system.

“NSFAS is South Africa’s largest youth development programme. To maximise its impact, we must move beyond access to ensure graduation and employability. Our partnership with the NYDA is vital in addressing these gaps and delivering a better return on investment for the state,” Carrim said. 

This collaboration, formalised through an MOU, marks a significant commitment to expanding educational and development opportunities for young people across South Africa, with a dedicated focus on those in rural areas, townships, and informal settlements.

Dr Myende has revealed that the partnership is in response to the country's critical skills gap and persistent inequality that continues to hinder youth advancement.

"Data from the NYDA’s Jobs Programme highlight that the majority of young people reside in rural areas and many do not possess a matric qualification. The NYDA has initiated this partnership with NSFAS to align efforts, combine resources, and redirect young people toward opportunities in institutions of higher learning.

"This MOU is more than a formal agreement. It is a commitment to ensuring that no young person is left behind, regardless of their location. Through this collaboration, we are opening doors not just to funding, but to opportunity, development, and ultimately dignity," Myende stated.

siyabonga.sithole@inl.co.za