Minister of Employment and Labour, Nomakhosazana Meth, has outlined an ambitious plan to tackle South Africa’s unemployment crisis with the launch of the R650 million Labour Activation Programme (#LAP) in Cape Town on Thursday. The initiative, aimed at creating sustainable job opportunities for South Africans, was unveiled in collaboration with Deputy Minister Jomo Sibiya and senior department officials. The programme has already formalised contracts worth R650 million with 12 labour partners, marking a significant step towards large-scale employment creation.
The signed agreements are expected to generate over 17,330 jobs across key sectors such as retail, hospitality, agriculture, tourism, transportation, and information and communication technology (ICT). Prominent partners in the project include organisations like Caliber Solutions, Elgin Community College, and Furn Tech, all of which are dedicated to driving socio-economic change within their communities.
Minister Meth highlighted the evolution of the Labour Activation Programme since its humble beginnings. What started as a small initiative aimed at supporting contributors to the Unemployment Insurance Fund (UIF) has now become a major catalyst for national socio-economic development. “Our national goal is to create over 350,000 jobs across all nine provinces, and I am proud to announce that we have formalised 29 partnership agreements benefiting over 107,764 individuals thus far,” Meth stated.
The formalised partnership in the Western Cape, which involves a total investment of R651.5 million, further underscores the government’s commitment to addressing unemployment. Meth described each partner in the programme as “a pillar of progress,” bringing vital expertise and innovative solutions to help uplift communities and provide long-term economic benefits.
The minister also emphasised the importance of ongoing oversight and collaboration in ensuring the programme’s success. She committed to a framework of transparency and accountability, where regular assessments will be conducted to track progress, identify challenges, and ensure that the jobs created under the programme are sustainable.
This new initiative is part of a broader governmental effort to combat unemployment, and follows closely on the heels of President Cyril Ramaphosa’s recent proclamation of the Employment Equity (EE) Amendment Act, No. 4 of 2022. The act, which came into effect on January 1, 2025, introduces significant changes to employment equity reporting, particularly for small businesses. Under the new regulations, companies with fewer than 50 employees are no longer required to comply with certain provisions of the Employment Equity Act, such as submitting their Employment Equity reports starting from the 2025 reporting period.
Minister Meth’s bold move with the Labour Activation Programme reflects the government’s recognition of the pressing need to stimulate job creation, particularly in the wake of the economic challenges exacerbated by the Covid-19 pandemic. The programme’s success will depend not only on the partnerships it has forged but also on the long-term commitment of both the government and private sector to tackle unemployment and foster socio-economic transformation.
As the initiative progresses, Minister Meth’s team will continue working closely with partners to ensure that the programme delivers on its promise of creating substantial employment opportunities. With ongoing cooperation and a focus on accountability, the Labour Activation Programme could become a key tool in South Africa’s broader efforts to reduce unemployment and stimulate economic growth across the country.