Beyond the corruption, perceived and real, associated with the government's tender system, there is another insidious effect.
Buti Manamela, the deputy minister in the Presidency, believes that the system has created a perverse incentive for young aspirant entrepreneurs.
"The unfortunate thing is post-1994 the government created the impression that it was easy to do business with the government through the tender system. If it is not easy when they [youth] start their own businesses, they just give up."
Also worrying for Manamela is that most young black people who approach the National Youth Development Agency - a finance institution that funds start-ups - are looking for jobs, not seed capital.
He says the solution to the problem is an education system that will change not only the attitude of young people towards business but also equip them with relevant entrepreneurial skills.
It's interesting that Manamela, a self-professed communist who led the revival of the once-defunct Young Communist League, has to preach to young people the importance of capitalist ventures.
Manamela is worried that young South Africans are not capitalist oriented compared with their counterparts in India, Brazil and Kenya, among other countries.
Of course, he does not use the word "capitalism". But it is common knowledge that a successful business is a profit-making and self-sustaining one.
"Here young people do not believe in being creators of employment," he complains.
"Out of 10 young people who approach the NYDA for assistance, you will find the majority are looking for jobs; there will be one who is looking for career guidance assistance.
"There is a need to gear our young people into being creators of jobs. And he sees higher education and training - a ministerial portfolio led by his senior communist leader Blade Nzimande - as vital in changing the mindset of young people and equipping them with relevant skills.
Like Manamela, Nzimande has been a leading promoter of vocational training.
"We need to get them to love education and get them to study the right courses. The country needs more engineers, bricklayers and so on based on the infrastructure projects that the government is rolling out," Manamela says.
Only the education system can help fix the legacy of apartheid.
"Our parents were taught to work for someone. Our youth do not have mentors who are business people.
"We need an education system that will mentor them to be able to run their own businesses especially because the government has several opportunities, like the NYDA, that have grants to help young people to start businesses."
With youth unemployment having gone beyond crisis levels, at 68% between the ages of 15 to 24, the youth were supposed to be the first to grab business opportunities.
Yet about four million young people are not doing anything: they are neither employed nor studying.
But with President Jacob Zuma having asked Manamela and Jeff Radebe, minister in the presidency, to expand the NYDA, there is hope that more youth can be roped in and encouraged to start successful enterprises.
The government is now finalising amendments to the NYDA Act that will see provinces and municipalities setting budgets aside for the NYDA. Currently only national government provides money to the NYDA.
"The youth's problems are the biggest challenges for the government. By end of the year we will have the act in place. We are serious about getting young people to be creators of jobs and that is the way that government can fight high unemployment."
Manamela recently launched the National Youth Policy for 2015 - 2020, a development blueprint for the country. Policy was developed after nationwide consultation, during which Manamela selected needs of young people.
Youth in the rural areas want access to education because their areas are far from institutions of higher learning. They also want access to information on anything that can uplift their lives.
In Western Cape in particular, they ask for land so that they can build factories and initiate agricultural projects.
Apart from the lack of passion for entrepreneurship, young people are suffering from pervasive drug problems. Even school premises are now home to drugs like nyaope.
"We have to keep these young people in school and ensure that those who graduate have something to do. This will keep them away from abusing alcohol and other substances."
Manamela wants to see the national youth service, soon to be launched, create opportunities for young people between 18 and 24 years old.
"We are finalising the framework and before the end of October, we will make it public. The national youth service is going to be not just about taking them to the army. It is bigger and all government departments are involved."
Given the fact that this project has been in the making for more than a decade many will believe it when it eventually gets launched and the first national service recruits are deployed across state institutions.
But it's difficult not to wonder why a project of this nature, that has been on top of the agenda for so long in the ANC, is taking so long to implement.
Communist rallies young capitalists
Beyond the corruption, perceived and real, associated with the government's tender system, there is another insidious effect.
Buti Manamela, the deputy minister in the Presidency, believes that the system has created a perverse incentive for young aspirant entrepreneurs.
"The unfortunate thing is post-1994 the government created the impression that it was easy to do business with the government through the tender system. If it is not easy when they [youth] start their own businesses, they just give up."
Also worrying for Manamela is that most young black people who approach the National Youth Development Agency - a finance institution that funds start-ups - are looking for jobs, not seed capital.
He says the solution to the problem is an education system that will change not only the attitude of young people towards business but also equip them with relevant entrepreneurial skills.
It's interesting that Manamela, a self-professed communist who led the revival of the once-defunct Young Communist League, has to preach to young people the importance of capitalist ventures.
Manamela is worried that young South Africans are not capitalist oriented compared with their counterparts in India, Brazil and Kenya, among other countries.
Of course, he does not use the word "capitalism". But it is common knowledge that a successful business is a profit-making and self-sustaining one.
"Here young people do not believe in being creators of employment," he complains.
"Out of 10 young people who approach the NYDA for assistance, you will find the majority are looking for jobs; there will be one who is looking for career guidance assistance.
"There is a need to gear our young people into being creators of jobs. And he sees higher education and training - a ministerial portfolio led by his senior communist leader Blade Nzimande - as vital in changing the mindset of young people and equipping them with relevant skills.
Like Manamela, Nzimande has been a leading promoter of vocational training.
"We need to get them to love education and get them to study the right courses. The country needs more engineers, bricklayers and so on based on the infrastructure projects that the government is rolling out," Manamela says.
Only the education system can help fix the legacy of apartheid.
"Our parents were taught to work for someone. Our youth do not have mentors who are business people.
"We need an education system that will mentor them to be able to run their own businesses especially because the government has several opportunities, like the NYDA, that have grants to help young people to start businesses."
With youth unemployment having gone beyond crisis levels, at 68% between the ages of 15 to 24, the youth were supposed to be the first to grab business opportunities.
Yet about four million young people are not doing anything: they are neither employed nor studying.
But with President Jacob Zuma having asked Manamela and Jeff Radebe, minister in the presidency, to expand the NYDA, there is hope that more youth can be roped in and encouraged to start successful enterprises.
The government is now finalising amendments to the NYDA Act that will see provinces and municipalities setting budgets aside for the NYDA. Currently only national government provides money to the NYDA.
"The youth's problems are the biggest challenges for the government. By end of the year we will have the act in place. We are serious about getting young people to be creators of jobs and that is the way that government can fight high unemployment."
Manamela recently launched the National Youth Policy for 2015 - 2020, a development blueprint for the country. Policy was developed after nationwide consultation, during which Manamela selected needs of young people.
Youth in the rural areas want access to education because their areas are far from institutions of higher learning. They also want access to information on anything that can uplift their lives.
In Western Cape in particular, they ask for land so that they can build factories and initiate agricultural projects.
Apart from the lack of passion for entrepreneurship, young people are suffering from pervasive drug problems. Even school premises are now home to drugs like nyaope.
"We have to keep these young people in school and ensure that those who graduate have something to do. This will keep them away from abusing alcohol and other substances."
Manamela wants to see the national youth service, soon to be launched, create opportunities for young people between 18 and 24 years old.
"We are finalising the framework and before the end of October, we will make it public. The national youth service is going to be not just about taking them to the army. It is bigger and all government departments are involved."
Given the fact that this project has been in the making for more than a decade many will believe it when it eventually gets launched and the first national service recruits are deployed across state institutions.
But it's difficult not to wonder why a project of this nature, that has been on top of the agenda for so long in the ANC, is taking so long to implement.
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