Acting Dean of the Faculty of Economic and Management Sciences at UWC, Prof Derek Yu. Image: Shelley Christians/UWC

The 9th Annual Archbishop Thabo Makgoba Development Trust Lecture, hosted at the University of the Western Cape (UWC), brought national challenges into sharp focus - unemployment, inequality, and the need for innovation in higher education. This year’s theme, “Turning the Country Around – Promoting Entrepreneurial Intention Through a Focused Entrepreneurship Education Curriculum”, underscored the urgent need for South Africa to reshape how it prepares young people for the future.

Joining virtually from London, where the Vatican had invited him, UWC Chancellor Archbishop Thabo Makgoba reminded the audience that his trust is anchored by three priorities: education, food security, and social justice. “We have endowed these and other universities nationwide to ensure we foster national conversations around values. Conversations that ask: Is this what truly makes us tick as South Africans?

Perhaps this is the direction our country must take - a leap in how we relate to one another beyond the classroom, in how we build South Africa together.”

The theme of building a more inclusive and opportunity-rich society ran throughout the evening, including remarks by UWC Rector and Vice-Chancellor, Prof Robert Balfour. He cited the latest South African statistics data, noting that high youth unemployment, inequality and stagnation remain defining features of the national landscape. “Government alone cannot solve these problems,” Prof Balfour stressed. “We need a broader societal effort - one that includes universities, communities, faith-based organisations, and the private sector.”

Prof Rachel Jafta, an economist from Stellenbosch University. Image: Shelley Christians/UWC

He emphasised that public lectures create a space for honest dialogue, critical questioning, and imagining alternative futures. “At UWC, we believe that knowledge must serve the public good,” he said. “We see entrepreneurship as one of the ways to open up opportunities for young people. But teaching entrepreneurship effectively requires us to rethink how we prepare students, not just what we teach, but how we support them beyond the classroom.”

That support, he said, must go deeper than coursework. “Are we equipping students to take initiative, manage risk, and solve problems creatively? Are we creating networks, mentorship and access to resources so their ideas can become action?”

Prof Derek Yu, Acting Dean of the Faculty of Economic and Management Sciences (EMS), offered a sobering statistical backdrop to the evening’s theme. Between 2004 and 2013, 75% of new job seekers entering the workforce were absorbed by the formal economy. From 2014 to 2023, it plummeted to 30%. “That means only three out of every ten people looking for work actually found formal employment. Scary, isn’t it?”

Prof Chux Gervase Iwu, Professor of Entrepreneurship Management in UWC’s Faculty of Economic and Management Sciences, addressing the attendees. Image: Shelley Christian/UWC

Prof Yu noted that the annualised real GDP growth was 3.6% in the early 2000s, unemployment fell to 22% in 2007, and there was optimism that the country could meet its New Growth Path target of 15% unemployment by 2020. However, the 2010s, now called the “lost decade,” saw growth halve to 1.8%, with unemployment nearing 30% by 2019. The pandemic then deepened the crisis. It took three years to recover to pre-COVID GDP levels, and by 2024, youth unemployment had skyrocketed to 52%.

Prof Yu urged students to see further education as a strategic tool. “Stay in school for as long as possible,” he advised. “After an undergraduate degree, your future could go four ways: employment, self-employment, postgraduate studies, or unemployment.” He highlighted a 10 percentage point gap in unemployment rates between those with an undergraduate degree (16%) and those with honours or postgraduate diplomas (6%).

“Yet even entrepreneurship - a hopeful path - faces roadblocks. The number of small formal businesses has remained stagnant at around 700,000 since 2008, and only 6% of South Africa’s working-age population are entrepreneurs, compared to over 20% in other upper-middle-income countries,” said Prof Yu.

L-R Prof Chux Gervase Iwu, UWC Rector and Vice-Chancellor, Prof Robert Balfour, Acting Dean of the Faculty of Economic and Management Sciences, Prof Derek Yu and Nyakallo Makgoba. Image: Jeffrey Abrahams

These insights were further deepened by a dynamic panel discussion featuring experts from academia and government. Gershon Oliver, Senior Economist of Research, Economic Policy and Planning at the Western Cape Department of Economic Development and Tourism; Prof Rachel Jafta, an economist from Stellenbosch University, and Prof Chux Gervase Iwu, from UWC’s EMS faculty, all highlighted the urgent need for universities to prioritise entrepreneurship skills in higher education. Their contributions underscored that unlocking student potential is not just about qualifications, but cultivating innovation, adaptability, and enterprise.

The lecture, while filled with concern, was equally marked by urgency and a call to action. It challenged the audience to move beyond analysis toward innovation, policy reform, and deeper partnerships, particularly those that unlock the entrepreneurial potential of South Africa’s youth. As the trust and its partners continue to promote critical reflection and action through platforms like this, it’s clear that building a more just and inclusive economy will require many hands - and brave hearts.