Outcomes-based Funding Delivers Real Jobs For Sa Youth A New Model For Sme-led Growth

A new outcomes-based employment model is quietly reshaping how South Africa tackles youth unemployment and its delivering results. The Jobs Boost Outcomes Fund , launched in mid-2024, has already placed over 3,070 young people into quality jobs across 107 employers, including many small and medium-sized enterprises SMEs.

The fund, which ties financing to actual job outcomes rather than training inputs , is being hailed as a breakthrough in how public-private partnerships can catalyse youth employment in a more sustainable, impact-focused way. The programme is on track to exceed its goal of 4,500 employed youth by the end of 2025.

At the heart of Jobs Boost is a simple but powerful concept: implementation partners only get paid when they deliver results . Under the current model, 12 partners receive 80 of their funding only after a jobseeker is placed in a full-time, formal job. The final 20 is paid once the candidate has remained employed for at least six months .

This approach stands in stark contrast to traditional skills development funding, where government or donors fund training programmes upfront, with no guarantee of job placement. In the Jobs Boost model, the risk is shifted from government to service providers , who are incentivised to customise their strategies for job market success.

With the average starting salary at R5,677/month , Jobs Boost jobs significantly outperform South Africas minimum wage threshold. For SMEs many of which struggle to afford upfront recruitment and training costs this model offers access to a pipeline of job-ready candidates without subsidised wages.