Can tech entrepreneurs solve SA’s skills gap and surging unemployment?
|Published
By Simone Botes
South Africa faces a unique but challenging scenario: an unemployment rate surging to 33.5% as of the second quarter of 2024 and more than 70 000 unfilled digital jobs due to a shortage of high-demand tech skills.
A staggering 300 000 tech jobs are outsourced annually. The job market mismatch raises the question – Are innovative strategies enough to reverse the trend or will the unemployment rate continue to climb?
The high-demand tech skills
High-demand tech skills include software development, data science, cloud computing, cybersecurity and artificial intelligence (AI). The skills are crucial for infrastructure, development, data analytics and cybersecurity – the core pillars of any IT framework. However, the demand outstrips supply, creating a critical skills gap.
AI, a highly sought-after skill, represents one of the most disruptive technologies to impact businesses. With the rise of generative AI, professionals must now understand its data-driven inputs and probability-based outputs.
Digital transformation is sweeping across industries, but there aren’t enough qualified professionals to meet the demand, particularly in web and mobile development, machine learning and data analytics. The rapid pace of technological advancements exacerbates the gap, outstripping the capacity of traditional education systems to equip individuals with relevant skills.
Traditional employment barriers
Traditional employment pathways in tech frequently require formal qualifications and extensive experience, criteria that often disadvantage a large segment of the population. The conventional hiring process can overlook individuals who have gained proficiency through non-traditional means, such as self-learning or boot camps.
Gender disparity also remains a significant issue. Historical and cultural factors have perpetuated biases, making it harder for women to enter and thrive in tech roles. The exclusion of women represents a loss of potential talent and innovation, as diverse teams are typically more effective and creative.
The role of tech entrepreneurship
Tech entrepreneurship provides an alternative to traditional employment pathways, removing many of the barriers that exist within conventional workplaces. Entrepreneurship allows individuals from varied backgrounds to innovate, create businesses and tap into niche markets, bypassing traditional gatekeepers.
Advanced technologies like AI, machine learning and cloud computing have become more accessible, lowering the entry barriers for aspiring tech entrepreneurs. Affordable technology infrastructure enables individuals to transform innovative ideas into viable businesses.
Moreover, tech start-ups do more than just create jobs. They spawn ancillary industries and support services, fostering innovation hubs that attract talent, investment and collaboration. The hubs, such as Silicon Cape, The Innovation Hub, and mLab Southern Africa, play an essential role in nurturing a vibrant start-up ecosystem in South Africa.
Bridging the skills gap
Addressing the tech skills gap requires a multifaceted approach. Educational institutions need to align their curricula with industry demands. The alignment can be achieved through scholarships, grants and partnerships with private tech firms. Short-term, specialised tech courses and boot camps, like those offered by HyperionDev, can quickly upskill individuals in critical, high-demand areas.
Companies can contribute by offering internships, apprenticeships and mentorship programmes, creating direct pathways to employment. Partnerships between the tech industry and universities can develop hybrid educational models that blend theoretical learning with hands-on experience.
Fostering tech entrepreneurship
Several factors need attention to enhance South Africa's entrepreneurial ecosystem. Increasing funding access for early-stage tech start-ups and reducing regulatory barriers are critical steps. Expanding digital infrastructure to underserved areas can spread entrepreneurial opportunities beyond major urban centres.
Support from incubators, accelerators and innovation hubs is also pivotal. The organisations offer networking, mentorship and access to funding, which are crucial for nurturing tech talent and entrepreneurial ventures.
Nurturing local talent
The rise of tech start-ups signifies an era of innovation and transformation in South Africa. The ventures have the potential to revolutionise industries, fuel economic growth and create job opportunities.
For the momentum to continue, providing access to affordable, high-quality tech education and creating a supportive environment for tech entrepreneurs is essential.
By focusing on tech entrepreneurship and addressing the barriers within traditional employment, South Africa can bridge its tech skills gap and mitigate the surge in unemployment. The time to act is now.
Simone Botes, Head of Education Operations and Impact, HyperionDev
BUSINESS REPORT