The future of a key youth development fund in the Eastern Cape is under scrutiny after it emerged that no budget has been allocated to the Isiqalo Youth Fund for the 2026/27 financial year.

The concern was raised by Democratic Alliance MPL Dr Vicky Knoetze, who says she will request the Auditor-General to investigate whether the fund has delivered value for money and whether public funds were properly managed.

According to the statement, the province is facing a worsening unemployment crisis, with an official rate of 42.5% and about 79,000 jobs lost over the past year. In rural areas, where many Pondoland communities fall, the expanded unemployment rate has reached 61.2%.

The Isiqalo Youth Fund was introduced to support young entrepreneurs and help create jobs. But the latest figures show limited reach. Of R30 million allocated in the 2024/25 financial year, only R17.1 million was spent, and just 22 beneficiaries were supported.

Knoetze claims there are also serious concerns about how the fund has been run, including uneven support across districts, weak oversight, and governance problems at funded projects. These claims have not been independently confirmed.

For young people in the Eastern Cape, especially in rural towns like Bizana, Lusikisiki and Flagstaff, the situation raises urgent questions. With few formal job opportunities and limited access to funding, programmes like Isiqalo are often seen as one of the only pathways into business and self-employment.

The absence of funding now leaves uncertainty about whether any support will be available for youth-led businesses in the coming year. The Premier has indicated that employment outcomes will only be determined if funding becomes available, meaning there is currently no clear plan in place.

For many young people trying to start small businesses in Pondoland, this could mean stalled plans, lost income opportunities, and continued reliance on already stretched households.

The provincial government has not yet publicly responded in detail to these concerns. This has not been confirmed.

What happens next will be critical. If the fund is being phased out or replaced, clarity will be needed quickly as unemployment continues to rise.

We will update this story as more information becomes available or if the provincial government responds.