From crisis to resilience: education, employment, and insurance sustainability

Dr. Kershen Pillay, CEO of Graduate Institute of Financial Sciences (GIFS)

For insurers and risk managers, the greatest systemic risk facing Africa is not climate change or market volatility; it is the erosion of our human capital. When education systems falter, when governance collapses, and when millions of young people are excluded from the labour force, the ripple effects destabilise households, communities, and ultimately the economy that underpins our industry.

The warning signs are clear. The National Student Financial Aid Scheme in South Africa has collapsed under the weight of corruption, with billions unaccounted for. Businesses are frustrated by shrinking SETA allocations, and in March 2026 President Cyril Ramaphosa declared that SETAs are “no longer fit for purpose.” Meanwhile, the benchmark education assessment of 2021, known as PIRLS, revealed that 81% of Grade 4 learners in South Africa cannot read with comprehension. These failures are not isolated; they form a chain of risk that stretches from classrooms to boardrooms, and expand beyond South Africa’s borders.

Statistics South Africa confirmed the scale in 2026: 4.7 million young people unemployed, 10.6 million outside the labour force, and an unemployment rate of 60.9% among those aged 15 to 24. Behind every number is a potential policyholder, employee, or entrepreneur who cannot participate in the economy.

Turnaround is possible
In November last year, South Africa hosted the G20 Social Summit, chaired by Minister of International Relations and Cooperation Ronald Lamola and former Deputy President Dr Phumzile Mlambo‑Ngcuka. At this summit, the Africa Legacy Project on Expanding Access to Higher Education was launched in partnership with the Department of Higher Education and Training, the Graduate Institute of Financial Sciences (GIFS,) the University of Johannesburg, and employers across sectors from telecoms to healthcare. Together, we began reimagining curricula to align with the demands of tomorrow’s industries, placing Africa’s youth at the centre of global conversations.

The Africa Legacy Project transformed South Africa into a laboratory of innovation. Out of this process emerged a flagship initiative: The Global Goals 2030: Africa Scholarship. Since inception last year, this scholarship has supported MBAs, doctoral programmes, BSc qualifications, diplomas and certificates at leading local and international institutions. It created fast‑tracked pathways to master’s and doctoral degrees, proving that opportunity is no longer bound by geography but only by imagination and access.

Why insurers should care

For the insurance sector, this scholarship is more than philanthropy. It is a risk‑mitigation strategy. By partnering with employers to upskill existing staff, the initiative ensures resilience against technological disruption. By targeting unemployed youth excluded from universities and community colleges, it creates pathways into the workforce, strengthening transformation scorecards and building a pipeline of future clients and contributors to the economy.

Insurance thrives on predictability, but South Africa’s youth unemployment crisis is a destabilising force. Investing in education and skills development is therefore not optional; it is central to long‑term sustainability. The G20 Social Summit reminded the world that Africa is not a continent of problems but of solutions. Our demographic dividend is not a burden but a blessing. Our young people are not waiting for handouts; they are demanding platforms to innovate, lead and contribute. For insurers, this is a call to action: Africa’s talent dividend is a global asset, and safeguarding it is part of our mandate.

Leadership as risk management

Our task is not simply to create jobs. Our mandate is to restore dignity, ignite hope, and remind our youth that they are seen, valued, and capable of greatness. How we respond will determine how history remembers us. Will we be remembered as leaders who guided our youth through turbulent waters, or as those who allowed another uprising to erupt half a century later?

Ubuntu as a framework for resilience

As Africans, we must recommit to the vision of Ubuntu. Youth unemployment is not an abstract statistic; it is the lived reality of our sons and daughters, nieces and nephews, neighbours and friends. For insurers, policymakers, and business leaders, Ubuntu is not just philosophy; it is a resilience framework. If we rise together, Africa will not only participate in the future of education and work; it will lead it.

We must actively work to be remembered as the generation that turned the tide; restoring hope to our youth and inspiring Africa to claim her rightful place on the world’s education stage.