The Democratic Alliance is deeply concerned that the Isiqalo Youth Fund, while well-intentioned, is failing to respond meaningfully to the scale of youth unemployment in the Eastern Cape.
This comes as the province continues to experience some of the worst labour market outcomes in the country. The Eastern Cape recorded an official unemployment rate of 41.2% in Q3 2025, with expanded unemployment exceeding 50%. In non-metro areas, the expanded unemployment reached nearly 60%, underscoring the depth of economic exclusion outside urban centres
Against this backdrop, Premier Oscar Mabuyane has admitted that, although R30 million was allocated to the Isiqalo Youth Fund in the 2024/25 financial year, only R17.1 million was actually disbursed, reaching just 22 beneficiaries.
Roughly R8 million was rolled over due to administrative delays and slow implementation. This level of underspending is indefensible in a province where hundreds of thousands of young people are unemployed.
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Even more troubling are the findings from oversight visits conducted last year, which revealed uneven geographic distribution of funding, incomplete infrastructure at funded projects, limited technical support to beneficiaries, and weak verification of operational activity.
In some cases, oversight teams were denied full access to project sites, employees were not present during inspections, and beneficiaries were operating from unsuitable premises.
These findings point to systemic weaknesses in monitoring, accountability, and post-funding support.
While the Premier maintains that no misuse of funds has been detected, the disconnect between reported compliance and real-world project challenges raises serious concerns about the effectiveness of internal controls and performance measurement.
The Premier claims that the 22 funded businesses created just over 100 jobs, at an average public cost of approximately R89,000 per job. In a province facing mass youth unemployment, this modest outcome cannot be presented as success.
Every rand allocated to youth development must translate into sustainable businesses, durable jobs, and measurable economic inclusion. Instead, Isiqalo has been characterised by slow rollout, underspending, uneven reach, and insufficient support to ensure long-term viability.
I have written to the Chairperson of the Portfolio Committee on the Office of the Premier to request a full report on the Isiqalo Youth Fund, including district-level allocations, beneficiary performance, verification outcomes, sustainability indicators, and will formally request the Auditor-General to review the Funds’ implementation and value for money to ensure future funding is tied to verified delivery and real youth employment.
Young people in this province need opportunity, urgency, and competent governance, not selective handouts with no accountability.
The Democratic Alliance will continue to press for full transparency, stronger oversight, and a youth development strategy that matches the severity of the crisis confronting our province.