With soaring unemployment rates, particularly among young people, South Africa faces a significant economic and social crisis. Teboho Makhabane, head of environmental, social and governance at Sanlam Investments, argues that while the green economy offers a pathway to job creation and climate resilience, Africa’s blue economy remains largely untapped.
Makhabane highlights that Africa’s extensive oceanic and coastal resources could generate an estimated $405 billion and support 57 million jobs by 2030, according to African Union projections. As the only African nation in the G20, South Africa’s presidency of this year’s summit presents a unique opportunity to showcase the potential of its 30,500 km coastline.
The blue economy in South Africa offers strategic opportunities beyond mere job creation, including tourism, fisheries, aquaculture, coastal infrastructure, and marine conservation. Despite this potential, these opportunities are currently underutilised.
A report from the South African Department of Forestry, Fisheries and the Environment indicates that the coastal and ocean economy could contribute approximately R166.6 billion to the country’s GDP and create over 608,000 jobs by 2035, provided structural challenges are addressed.
Sanlam is committed to unlocking climate-aligned economic opportunities through its sponsorship of the 2025 G20-B20 Summit. Makhabane emphasises that the blue economy could effectively tackle structural unemployment in Africa by focusing on three key areas.
Firstly, scalable labour-intensive sectors like coastal tourism and artisanal fisheries already support over 49 million jobs across the continent. If developed responsibly through community-based management and sustainable aquaculture, these sectors could employ many low- and semi-skilled workers.
Secondly, youth-centred innovation is crucial. The World Bank’s Blue Economy for Resilient Africa Program indicates that marine spatial planning and climate-informed innovation could unlock new industries, such as marine biotech and data-driven marine services. These opportunities are particularly suitable for youth-led initiatives, especially with access to training and funding.
Lastly, investment in coastal municipalities can foster ‘blue enterprise zones’ that integrate infrastructure development, SME incubation, and ecosystem restoration. This aligns with Sanlam’s roadmap for a responsible blue economy rollout, emphasising impact measurement and data governance.
With 39 of Africa’s 55 countries having coastlines, the continent is well-positioned to leverage ocean-based sectors for inclusive economic growth. Makhabane asserts that by collaborating, the blue economy can become a strategic avenue for addressing youth unemployment across many African nations.
In South Africa, the challenge is to connect social equity with blue economy opportunities. With a youth unemployment rate nearing 60%, the coastal provinces, rich in blue assets, remain economically marginalised. Redirecting investment towards sustainable marine conservation and coastal tourism could create thousands of jobs that are both climate-aligned and socially beneficial, ultimately boosting the economy.