NYDA calls for youth-first economic plan as risks mount

The National Youth Development Agency (NYDA) has called for a youth-centred economic response following the latest decision by the South African Reserve Bank to keep the repo rate unchanged at 6.75%. The NYDA on Friday said the Monetary Policy Committee’s (MPC) decision comes “against a backdrop of heightened global uncertainty and emerging economic risks”. It warned that young people remain particularly vulnerable.

The agency pointed to growing instability abroad, including conflict in the Middle East, as a key driver of economic strain. “The recent outbreak of conflict in the Middle East has caused a significant global supply shock, leading to higher prices for oil, gas, and fertilisers while dampening global growth prospects,” the NYDA said. These developments are expected to push inflation higher in the short term while limiting economic activity, adding further pressure on already strained households.

While South Africa recorded modest economic growth of 1.1% in 2025, the NYDA warned that this remains insufficient to address deep-rooted structural issues. “The current growth trajectory is not sufficiently inclusive and continues to exclude large segments of young people from meaningful economic participation,” the agency said. It stressed that youth unemployment remains a critical concern, with limited job opportunities exacerbating socio-economic vulnerabilities.

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Although inflation is currently contained at around 3%, the NYDA cautioned that rising energy costs are likely to drive a temporary increase, particularly in fuel prices. The agency warned that higher transport and food costs will disproportionately affect young people, especially those in low-income households.

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