In a bold move to tackle youth unemployment and foster economic resilience, Mastercard has extended its collaboration with the Youth Employment Service (YES) for a third consecutive year. The initiative, which has already begun to yield promising results, is now being hailed as a transformative effort in the South African employment landscape. Against a backdrop of a challenging macroeconomic environment, with official unemployment at 31.9% and youth unemployment reaching a staggering 44.6% in the third quarter of 2024, this partnership comes as a timely intervention aimed at equipping young South Africans with critical skills, work experience, and career opportunities.

Empowering a Generation: The YES and Mastercard Initiative

The YES program, a private-sector-driven initiative, has steadily emerged as a beacon of hope in South Africa’s battle against high unemployment. In collaboration with Mastercard, YES has focused on providing young professionals with hands-on experience in the fast-evolving global payments industry. During the 2024/2025 intake, Mastercard welcomed 15 young talents into its workplace, offering them a year-long placement that promises exposure to real-world challenges and opportunities within one of the world’s leading financial services firms.

Gabriel Swanepoel, Country Manager for Mastercard Southern Africa, emphasized the importance of this initiative:

“At Mastercard, we believe that empowering young talent is key to driving inclusive economic growth. Our continued collaboration with YES reflects our commitment to equipping South Africa’s youth with the skills, experience, and opportunities they need to succeed in today’s workforce. By investing in the next generation, we are not only shaping future leaders but also contributing to a more resilient and prosperous economy.”

This partnership is designed to do more than simply place young professionals in temporary roles. It is a strategic investment in human capital that addresses several systemic challenges—ranging from inadequate skill development to the broader economic implications of high unemployment. YES has built a reputation for its commitment to workforce readiness, and its alliance with Mastercard underscores a mutual vision of a future where youth are not merely job seekers but innovators and leaders who can drive sustainable change.

The Stark Reality of South Africa’s Unemployment Crisis

South Africa has long grappled with one of the highest unemployment rates in the world. The economic challenges are multifaceted, stemming from historical inequalities, a slowdown in industrial activity, and more recent macroeconomic pressures. With official unemployment lingering at 31.9% and youth unemployment hitting 44.6%, the country faces a dual crisis. High unemployment not only stifles economic growth but also fuels social discontent and inequality.

Recent reports have underscored the urgency of addressing these challenges. Government statistics and independent research have consistently highlighted that youth unemployment is more than just a labor market statistic—it is a significant threat to social cohesion and long-term economic progress. In this context, initiatives like the YES and Mastercard partnership are not only welcome but essential. They offer a dual benefit: providing immediate employment opportunities and investing in the long-term capability of South Africa’s young workforce.

Economic experts argue that targeted interventions, such as structured internship and mentorship programs, are vital in bridging the gap between education and employment. By directly addressing skill deficiencies and offering work experience in dynamic sectors like digital payments, the YES program is helping to create a more adaptable and skilled labor pool. This, in turn, lays the foundation for a more competitive and innovative economy.

Mastercard’s Commitment to Corporate Social Responsibility

Mastercard has established itself as more than just a global payments technology leader—it is also a pioneer in corporate social responsibility. The company’s ongoing support for YES is a testament to its broader commitment to driving inclusive economic growth. By investing in youth, Mastercard is not only nurturing the talent that will power its future innovations but also addressing some of the most pressing social challenges of our time.

In recent years, Mastercard has expanded its reach beyond traditional financial services. The company has championed various initiatives aimed at fostering financial inclusion, digital literacy, and entrepreneurial development. These programs have received accolades from industry experts and policymakers alike. The partnership with YES is a natural extension of Mastercard’s global strategy to invest in communities and create sustainable economic opportunities.

Ravi Naidoo, Chief Executive Officer of YES, reflected on the significance of this collaboration:

“Empowering youth is the best endowment South Africa can make to ensure a more sustainable future. Young people have the potential to drive economic growth, innovation, and social progress. However, without access to skills and sustainable employment, this potential remains untapped. Our continued partnership with Mastercard reinforces our commitment to equipping young talent with valuable experience in the global payments industry.”

This commitment is particularly important in a country where the digital revolution presents both immense opportunities and significant challenges. By bridging the digital divide, Mastercard and YES are paving the way for a new generation of professionals who are not only digitally savvy but also equipped to thrive in a rapidly changing economic landscape.

The Broader Impact on Workforce Readiness and Economic Participation

At its core, the YES program is about more than just job placement. It is a comprehensive approach to workforce development that emphasizes skill-building, mentorship, and the practical application of theoretical knowledge. Participants in the program are provided with training in critical areas such as digital payments, cybersecurity, and data analytics. These skills are in high demand in today’s economy and are essential for navigating the increasingly digital nature of financial services.

Moreover, the program’s design emphasizes continuous learning and adaptation. In a global economy where technological advancements occur at a breakneck pace, the ability to continuously upskill and adapt is crucial. Through mentorship from industry experts and exposure to real-world business challenges, the young professionals participating in the program are learning not just the technical skills they need, but also the soft skills—such as communication, problem-solving, and adaptability—that are critical for long-term success.

Several industry analysts have noted that the model employed by YES is a win-win for both employers and employees. For employers like Mastercard, it means access to fresh perspectives and innovative ideas. For the youth, it means a much-needed bridge between academic learning and professional execution. Such initiatives are likely to set new benchmarks for workforce development in South Africa and could serve as a model for other emerging economies grappling with similar challenges.

Digital Transformation in South Africa’s Financial Services Sector

The YES and Mastercard partnership is occurring at a pivotal moment for South Africa’s financial services sector. Over the past decade, the country has witnessed a digital transformation, with a growing emphasis on fintech innovations and digital payment solutions. This transformation has been driven by a combination of factors, including increased internet penetration, the ubiquity of smartphones, and a consumer base eager for more convenient financial solutions.

Mastercard, as a leader in digital payments, is at the forefront of this transformation. By integrating cutting-edge technology with everyday financial services, the company is reshaping how South Africans transact. However, with innovation comes the need for a workforce that can keep pace with technological change. The partnership with YES is a strategic response to this challenge—ensuring that the country’s young talent is not left behind as the industry evolves.

In parallel with corporate initiatives, the South African government has also been promoting digital inclusion and technological innovation. Various public-private partnerships have been launched to boost the tech ecosystem, providing support for startups and encouraging the adoption of digital solutions across sectors. Such efforts have contributed to a more vibrant fintech landscape, yet the challenge of high unemployment continues to loom large. Initiatives like YES are crucial in ensuring that the benefits of digital transformation are widely shared.

Addressing the Root Causes of Youth Unemployment

The alarming figures for youth unemployment in South Africa—nearly half of the nation’s young population—demand comprehensive and targeted policy interventions. Beyond the immediate economic challenges, high youth unemployment has long-term implications for social stability and national development. When large segments of the youth are sidelined, the cycle of poverty and inequality is perpetuated, undermining broader developmental goals.

Educational institutions in South Africa have recognized the need for closer ties with the industry. Many universities and technical colleges are now working hand in hand with corporates to align curricula with market needs, ensuring that graduates are better prepared for the workforce. Programs like YES further complement these efforts by providing experiential learning opportunities that bridge the gap between academic training and practical application.

In addition to formal education, there is a growing emphasis on soft skills and entrepreneurship. Many young South Africans are increasingly being encouraged to develop entrepreneurial mindsets, which can spur innovation and job creation in the long run. The support offered by corporates, including Mastercard’s involvement in the YES program, provides a critical boost to these initiatives, offering mentorship and real-world insights that can help nurture the next generation of business leaders.

Economic Resilience Through Strategic Partnerships

The partnership between Mastercard and YES is emblematic of a broader trend toward strategic public-private collaborations in South Africa. In an economy characterized by structural challenges, such alliances are essential to drive meaningful change. By pooling resources and expertise, the public and private sectors can address systemic issues more effectively than either could alone.

Such partnerships are not limited to the financial sector. Across various industries—from healthcare to technology—collaborative efforts are being launched to tackle the country’s persistent challenges. These alliances are increasingly seen as vital in creating an environment that supports innovation, improves skill development, and ultimately leads to sustainable economic growth.

Industry experts suggest that the success of these partnerships will hinge on their ability to scale and adapt to changing market conditions. For Mastercard and YES, this means continually evolving the program to address new skill requirements and emerging industry trends. As digital technologies continue to disrupt traditional business models, initiatives that promote agility, continuous learning, and innovation will be essential for maintaining economic momentum.

A Model for the Future: Broader Implications for Emerging Economies

While the YES and Mastercard initiative is tailored to the South African context, its implications extend far beyond the nation’s borders. Many emerging economies face similar challenges with high youth unemployment and the need for rapid digital transformation. As such, the partnership serves as a potential model for other countries looking to harness the power of youth and technology to drive economic development.

In regions where demographic dividends are high but economic opportunities remain scarce, structured internship and mentorship programs can make a significant difference. By focusing on skills development and bridging the gap between education and employment, initiatives like YES can help transform the economic landscape. Furthermore, partnerships with global leaders like Mastercard add credibility and technical expertise to these efforts, ensuring that the programs are aligned with international best practices.

The Road Ahead: Challenges and Opportunities

Despite the positive impact of the YES and Mastercard partnership, significant challenges remain. The persistent high levels of youth unemployment in South Africa underscore the need for sustained and multifaceted interventions. Economic uncertainties, changing global market dynamics, and domestic structural challenges continue to pose risks. However, initiatives like this partnership are a step in the right direction, demonstrating that targeted, collaborative efforts can yield meaningful results.

Looking ahead, both Mastercard and YES have expressed a commitment to refining and expanding the program. Plans are underway to incorporate additional training modules, expand mentorship networks, and leverage emerging technologies such as artificial intelligence and blockchain to enhance the training experience. These enhancements are expected to further improve the quality of skills imparted and better align the program with the evolving needs of the digital economy.

Policy-makers and industry leaders are also calling for a more integrated approach to tackling youth unemployment. This includes stronger collaboration between the government, educational institutions, and the private sector to create a cohesive framework for skill development and job creation. By addressing these issues holistically, South Africa can create an ecosystem where economic growth is both inclusive and sustainable.

Voices from the Field: Impact on Young Professionals

Feedback from participants in the YES program has been overwhelmingly positive. Many young professionals report that the hands-on experience, coupled with mentorship from seasoned industry experts, has significantly boosted their confidence and employability. The opportunity to work with a global giant like Mastercard has also opened doors to a broader network of opportunities, both within and beyond South Africa.

One participant noted, “Being part of the YES program has not only given me practical skills but has also transformed my perspective on the possibilities within the financial sector. I now feel better prepared to contribute to a digital economy and drive innovation in my community.” Such testimonials highlight the transformative potential of the initiative and underscore the importance of continued investment in youth empowerment.

Conclusion: A Catalyst for Change

The extended partnership between Mastercard and YES represents more than just a temporary solution to South Africa’s youth unemployment crisis—it is a catalyst for broader economic transformation. By equipping young people with the skills, experience, and opportunities necessary to succeed in a rapidly changing global economy, the initiative is laying the groundwork for a more inclusive and resilient future.

As South Africa continues to navigate a complex economic landscape, strategic partnerships like this one are essential for unlocking the full potential of the nation’s youth. The lessons learned from the YES and Mastercard collaboration are not only applicable within South Africa but also serve as a valuable blueprint for other emerging economies facing similar challenges.

In a world where digital innovation and economic inclusivity are paramount, investing in human capital is the key to sustainable growth. The YES program, in partnership with Mastercard, exemplifies how targeted interventions can empower the next generation of leaders, foster economic participation, and ultimately drive social progress.

As policymakers, industry leaders, and educational institutions continue to work together, the hope is that such initiatives will become the norm rather than the exception. The journey toward reducing youth unemployment is long and complex, but with a collective and strategic approach, South Africa is well on its way to creating a brighter, more prosperous future for its young citizens.

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In summary, the third consecutive year of collaboration between Mastercard and YES marks a significant milestone in the ongoing effort to address youth unemployment in South Africa. Through structured training, hands-on work experience, and a commitment to continuous learning, the initiative is making a tangible impact on the lives of young professionals and the broader economy. By investing in the potential of its youth, South Africa is taking a decisive step toward fostering a resilient, innovative, and inclusive economic future—one that will not only benefit individuals but also contribute to sustainable national growth.

The challenges are undeniable, yet the opportunities that lie ahead are equally profound. With a focus on empowerment, innovation, and strategic partnerships, the YES and Mastercard initiative stands as a testament to what can be achieved when public and private sectors join forces to tackle some of the most pressing issues of our time. The road to a more prosperous future may be fraught with obstacles, but through targeted investment in youth, South Africa is poised to turn these challenges into lasting opportunities for growth and transformation.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

12th March, 2025