South Africa is currently experiencing a digital skills crisis, with an urgent need for 40,000 entry-level digital jobs. Unfortunately, the national output for these skills, estimated at just 20,000 per year, falls significantly short of meeting this demand. As a result, many of these jobs are being offshored, depriving young South Africans of vital employment opportunities.
This shortfall is compounded by inconsistent education outcomes, leaving many young people without the foundational skills needed to pursue careers in the digital economy. The lack of standardised, high-quality digital education across the country further widens the gap between demand and supply, preventing South Africa from fully harnessing its potential to develop a robust, homegrown digital workforce.
Even those with the appropriate in-demand digital skills often find themselves unprepared for the real world of work. They frequently lack practical experience, soft skills, and industry-specific knowledge – elements that are crucial for success. This gap between theoretical knowledge and practical application means that while individuals may possess technical skills, they struggle to adapt to the fast-paced, collaborative, and problem-solving environment required by employers. Consequently, businesses face challenges in effectively onboarding and integrating these workers, leading to inefficiencies and missed opportunities for both the workforce and the economy.
The issue is further exacerbated by misdirected skills funding, which often leaves young people equipped with obsolete skills, resulting in an unsustainable pipeline to meet the growing demand for digital skills both locally and globally.
In 2021, in response to this crisis, the SiMODiSA Association launched the TechXit initiative. Its mission was clear – to address the widening digital skills gap and devise a ten-year action plan for reconstructing South Africa’s digital skills pipeline. TechXit engaged with over 100 local stakeholders to chart the path forward.
Simultaneously, the Harambee Youth Employment Accelerator partnered with the Presidency of South Africa, the Public Private Growth Initiative (PPGI), Digital Council Africa (DCA), and Business Process Enabling South Africa (BPESA) to launch the Digital Work Accelerator. This public-private initiative aimed to create inclusive job opportunities within the digital technology sectors, aligning with the national Presidential Youth Employment Initiative (PYEI).
TechXit and the Digital Work Accelerator recognised that addressing South Africa’s digital skills gap required concerted efforts, resources, and a unified approach, which is why, in 2023, these two initiatives merged to form Collective X.
