The Eastern Cape Provincial Government has launched a R70 million historical debt relief programme to address youth unemployment and financial barriers to economic participation.
The groundbreaking initiative, launched this week by the provincial government in collaboration with the Manufacturing, Engineering and Related Services Sector Education and Training Authority (MerSETA), aims to clear historical student debt.
It targets young people aged 18 - 35, who have completed their undergraduate qualifications in MerSETA-related fields.
Eastern Cape Provincial Government spokesperson, Khuselwa Rantjie, said the initiative is part of government’s broader commitment to youth empowerment and skills development, particularly for unemployed youth in the province.
“The Eastern Cape Provincial Government made significant strides in supporting education between 2019 and 2024, notably having cleared a historic debt of more than R100 million from its own resources, supporting close to 5 000 graduates across the four universities in the province.
“This builds on significant progress made over recent years, during which 13 SETAs trained more than 29 000 young people in high-demand skills areas, including automotive assembly, renewable energy, digital forensics, and cloud computing,” Rantjie said.
In addition, over 8 000 young people, including people with disabilities, were trained in areas such as animal and vegetable production, cellphone repairs, beautification, and early childhood development. This was made through collaboration with various partners.
Rantjie highlighted that that provincial government has also launched the MerSETA Mega Skills Project, which benefited over 10 000 additional youth by providing them with critical skills.
The R70 million debt relief programme is open to graduates from Nelson Mandela University, Rhodes University, the University of Fort Hare, as well as eight Technical Vocational Education and Training (TVET) colleges in the province.
The eight TVET colleges are Ingwe, Ikhala, Buffalo City College, East Cape Midlands College, King Hintsa, King Sabata Dalindyebo, PE College, and Lovedale.
Rantjie also noted that MerSETA has allocated funding to deal with the historical debt within Walter Sisulu University, which is managed directly by the university.
Who qualifies for funding?
Graduates, who have completed undergraduate qualifications in the following fields, are eligible for the funding:
• Operations Management
• Financial Accounting
• Electrical Engineering
• Mechanical Engineering
• Computer Sciences
• Electronic Engineering
• Industrial Engineering
• Mechatronics
• Process Engineering
• Metallurgy
• Human Resources
• Supply Chain Management
• Information Technology
• Marketing
Applicants must be South African citizens from the Eastern Cape, aged 18-35, must have completed a qualification in one of the listed MerSETA related fields, and have outstanding student debt at any of the participating institutions.
“Eligible graduates are encouraged to contact their respective institutions directly to submit their formal request for the funding. In 2023, historical debt at the University of Fort Hare alone amounted to R151 million, affecting approximately 2 383 students, prompting the provincial government to seek strategic partnerships to support these young people.
“The historical debt initiative demonstrates the Eastern Cape Provincial Government’s commitment to equipping young people with the tools they need to succeed in the modern economy.
"By addressing student debt and providing high-demand skills training, the province is creating pathways to meaningful employment and long-term economic growth,” Rantjie said. – SAnews.gov.za
