R514 Million in Labour Contracts Awarded to Boost Jobs in Mpumalanga

The initiative, announced during a high-profile event held at Mbombela Stadium on Monday, marks a significant investment in both job creation and skills development across the province.

In a major move to tackle unemployment and stimulate economic growth in Mpumalanga, Employment and Labour Minister Nomakhosazana Meth has officially handed over R514 million worth of contracts to 15 Labour Activation Programme (LAP) partner companies. The initiative, announced during a high-profile event held at Mbombela Stadium on Monday, marks a significant investment in both job creation and skills development across the province.

The selected LAP partner companies are now tasked with training and ultimately absorbing over 9,600 job seekers into various sectors of the economy. Each company signed a formal pledge committing to provide employment opportunities to beneficiaries, ensuring that the program yields tangible and lasting outcomes.

Investment in Skills, Jobs, and Hope

Addressing the crowd at the stadium, Minister Meth emphasized that the handover is about far more than financial investment—it represents a commitment to transforming lives and building stronger communities.

“This is not just about launching projects; it’s about igniting opportunities that reach thousands of individuals, uplift families, and strengthen communities,” Meth said. “We are investing not just in businesses, but in people, skills, and making dreams that deserve to be realised a possibility. This is what real economic transformation looks like—impact you can feel and see.”

Minister Meth made it clear that accountability and inclusivity are cornerstones of the initiative. A key requirement for LAP partners is to recruit at least 70% of their beneficiaries through the Employment Services of South Africa (ESA), a national government platform that connects job seekers with available opportunities.

Leveraging Mpumalanga’s Strategic Economic Position

The Minister highlighted Mpumalanga’s unique position as a logistical and economic hub. The province is home to the Maputo Corridor—one of the country's most vital trade routes—which links South Africa to Mozambique’s Port of Maputo and global markets beyond.

“Through this corridor, we export our agricultural produce, minerals, and manufactured goods. It is this very corridor that has the power to transform small businesses into major players, to give local industries a global footprint,” she said.

She also stressed the importance of unlocking the potential of these corridors to bring growth to communities that have historically been excluded from economic progress.

Tackling Youth Unemployment Head-On

With approximately 1 million young South Africans entering the labour market each year, Minister Meth acknowledged the ongoing struggle many face in securing employment. Statistics show that only 400,000 of these youth find stable employment annually, while another 300,000 secure temporary work and the remaining 300,000 remain unemployed.

“Young people continue to face barriers when entering the labour market—mainly due to a lack of experience or skills that do not match industry demand,” she said. “It is for this reason that our response must be decisive, and I dare say, aggressive.”

The LAP contracts aim to reverse this trend by combining training, work experience, and direct job placement. By aligning the training with real industry needs, the department hopes to ensure that participants are equipped for long-term employment.

A Nationwide Policy Shift Towards Inclusive Growth

Minister Meth described the LAP as a cornerstone of the department’s broader policy approach to combat unemployment and improve the employability of South Africans. This approach also seeks to strengthen partnerships between the public and private sectors, ensuring that government efforts are aligned with market realities.

“We are saying to the youth of this province: there is space for you in this economy. Your talents and your skills are not only welcome—they are needed. The future belongs to you,” the Minister said. “And to businesses, we are saying: you are not alone. The government is here to support you and help you overcome the barriers that have held back growth.”

A Focus on Vulnerable Groups

The Minister further reaffirmed the government’s commitment to addressing unemployment among the most affected groups—particularly youth, women, and people living with disabilities. This targeted focus forms a core component of the Inter-Ministerial Committee on Unemployment, Skills Development, and SMME Support, established by President Cyril Ramaphosa and chaired by Minister Meth herself.

“Our focus is clear—we need every South African to believe in the power of collective action,” Meth said. “Only by working together can we shift the trajectory of unemployment in this country.”

Spanning the Province

The initiative spans four districts and more than 11 local municipalities in Mpumalanga, making it one of the most wide-reaching job creation efforts the province has seen in recent years. The diverse range of sectors covered—from agriculture to manufacturing and services—ensures that beneficiaries will have access to opportunities across various fields.

As Minister Meth concluded her remarks, she called for continued collaboration between government, businesses, and communities to drive sustainable economic change.

“Let us continue working together to build a better country. Collectively, we have the power to shape a brighter, more inclusive future,” she said.

The Labour Activation Programme, with its significant investment and ambitious goals, is poised to become a beacon of hope for thousands of unemployed South Africans looking for a pathway to opportunity, stability, and success.