Investing in Young Lives: A Pathway to Harnessing the Demographic Dividend and Advancing Human Capital Development

Zlyanda Ngoma, United Nations Population Fund (UNFPA) and Sudesh Reddy, United Nations Children's Fund (UNICEF)

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South Africa is standing at a demographic crossroads. According to Statistics South Africa's 2024 Mid-Year Population Estimates, the population under the age of 35 is approximately 36.5 million, representing about 58% of the total population of 63.02 million. The country, therefore, possesses a powerful engine for socio-economic transformation: its young people.

But this engine must be fuelled—through investments in health, education, gender equality, and decent work opportunities—to unlock the demographic dividend and advance inclusive development.

The demographic dividend refers to the economic growth potential that results from shifts in a country’s age structure, particularly when the working-age population is larger than the non-working-age groups. South Africa is uniquely positioned to reap this dividend, but the opportunity is time-bound and contingent on deliberate, coordinated policy actions and investments.

Realizing the Promise of the Demographic Dividend

While South Africa has made progress in expanding access to education and basic services, many young people—especially those in rural and under-resourced communities—face persistent barriers that hinder their ability to thrive. High youth unemployment, low levels of foundational literacy and numeracy, early and unintended pregnancies, and entrenched gender inequalities are just a few of the challenges standing in the way of realizing the demographic dividend.

To address this, the Government of South Africa, together with all stakeholders, must adopt an integrated approach to human capital development—starting from early childhood through adolescence and into young adulthood.

"Harnessing the demographic dividend is not automatic. It requires bold, coherent action across sectors—education, health, social development, and the economy. We must all be rowing in the same direction,"

Mr. Yu Yu, United Nations Population Fund (UNFPA) Representative