How UK investment is powering South Africa's jobs revolution

Daily Maverick

4 days ago

UK investment and partnerships are turbocharging South African jobs, housing and digital markets — with real on-the-ground impact.
On Monday, 28 July, the United Kingdom (UK) Minister for Employment Alison McGovern visited Cape Town ahead of the G20 Employment Ministerial in George this week, engaging with two flagship initiatives supported by the British High Commission that are driving job creation and economic opportunity in South Africa.
According to Jenna Kretzmann, communications officer of the British Consulate General, UK firms now employ more than 100,000 South Africans, fuelling vital job creation and strengthening economic resilience in a country grappling with a 32.9% overall unemployment rate and a youth unemployment rate that reached 62.4% nationally for those aged 15 to 24 in the first quarter of this year alone.
UK-backed initiatives are also seeking to address deep-rooted structural challenges—in particular, the legacy of spatial segregation that continues to shape South African cities.
One such initiative, Divercity, was founded in 2018, with UK-backed British International Investment playing a key role since 2021 in funding urban renewal projects that deliver affordable housing and employment.
At Divercity's Salt River housing development, the Herringbone development, supported by British International Investment (BII), is powering an urban renewal engine aimed at breaking the cycle of spatial segregation that has long plagued South African cities.
This project includes funding for more than 2,500 residential units, with more than 5,500 people benefiting from it. The initiative is also expected to create up to 4,000 construction and permanent jobs, offering both roofs and opportunities.
'Almost all new affordable housing delivery since 1994 has taken place at the urban periphery, entrenching spatial segregation,' noted Carel Kleynhans, CEO of Divercity, highlighting how their partnership with BII enabled commercially viable affordable housing in prime locations.
E-commerce empowerment
In a separate initiative, Takealot, South Africa's largest e-commerce platform, is unleashing the digital economy through its Township Digital Market Access Programme, supported by the UK-SA Tech Hub.
The top 50 SMMEs in the programme have already generated about R5.7-million in sales and 39 jobs in one year. More broadly, Takealot has created 21,000 jobs and helped more than 7,500 township Small, Medium and Micro Enterprises (SMMEs) reach new markets, illustrating how public-private innovation can fuel growth.
'We are opening up the e-commerce ecosystem, particularly to township-based entrepreneurs and small businesses…'We believe that this approach will meaningfully increase household incomes as we help create more opportunities for entrepreneurship, SMME growth and job creation,' said Fred Zietsman, CEO of Takealot.
What this means for you
Job seekers: UK investments mean more openings in construction, digital commerce and urban development — especially promising for youth and women.
Entrepreneurs and SMMEs: More inclusion in e-commerce platforms can dramatically boost business opportunities.
Urban dwellers: Projects like Divercity reduce commute costs and improve living conditions with safer, affordable housing in well-connected locations.
Policy buffs: The UK-South Africa alliance models how international partnerships can go beyond aid, driving real economic transformation through sustainable jobs and innovation.
DM