South Africa, 16 July 2025: With unemployment rates soaring – particularly among the youth – South Africa and much of Africa are facing an economic and social crisis. According to Teboho Makhabane, Head of ESG and Impact at Sanlam Investments, the green economy offers a catalytic path to address this crisis by aligning job creation with climate resilience. But one area remains largely untapped: Africa’s blue economy.

“Africa is surrounded by vast oceanic and coastal resources, and according to African Union projections, the blue economy will generate US$405-billion and support 57-million jobs by 2030,” Makhabane said.

As the only African nation that’s a permanent member of the G20, South Africa’s presidency of this year’s G20 Summit provides an unprecedented opportunity to showcase the value of the continent’s 30 500km coastline – if used sustainably.

“In South Africa, this offers strategic opportunities beyond job creation, tourism, and fisheries, extending into aquaculture, coastal infrastructure, marine conservation, and climate-adaptation services like mangrove restoration. Yet these opportunities remain underutilised,” Makhabane said.

According to a South African Department of Forestry, Fisheries and the Environment (DFFE) report, the coastal and oceans economy holds significant untapped potential. Forecasts suggest it could contribute approximately ZAR166.6 billion to South Africa’s GDP (around 4.54%) and create over 608 000 jobs - equivalent to 2.9% of total employment - by 2035, if structural challenges are addressed and opportunities are fully realised (DFFE, 2024).

Sanlam, through its anchor sponsorship of the 2025 G20-B20 Summit, is committed to unlocking economic opportunities for the continent that are both climate-aligned and inclusive.

“We believe the blue economy is one of the strategic levers that can help achieve this,” Makhabane added.

The blue economy – defined as the sustainable use of ocean and coastal resources for economic growth and improved livelihoods while preserving ecosystem health – can realistically address structural unemployment on the African continent in three key ways:

Scalable labour-intensive sectors “Coastal tourism and artisanal fisheries alone already account for more than 49-million jobs across the continent,” Makhabane said.

“If scaled responsibly through community-based co-management, sustainable aquaculture, and low-impact infrastructure development, these sectors can absorb large numbers of low- and semi-skilled workers.”

Sanlam’s exploration of blue investment propositions points to parametric insurance, mangrove-based carbon credits, and sustainable ocean funds as viable pathways.

Youth-centred innovation As highlighted in the World Bank’s Blue Economy for Resilient Africa Program, marine spatial planning and climate-informed innovation can unlock new frontier industries – including marine biotech, coastal resilience tech, and data-driven marine services.

“These areas are ripe for youth-led innovation, especially when paired with access to training, funding, and public-private partnerships,” Makhabane said.

Sanlam is already investing in pioneering avenues to finance ocean-based enterprises that drive marine conservation, foster economic resilience, and create jobs in coastal communities.

Place-based economic development With Africa’s coastal zones urbanising rapidly, investment in coastal municipalities can foster ‘blue enterprise zones’ that integrate infrastructure, small- to medium-sized enterprises (SME) incubation, and ecosystem restoration.

This strategy aligns with Sanlam’s phased roadmap, which places impact measurement and data governance at the core of a responsible blue economy rollout.

From G20 into the future: solidarity, equality and sustainability

With 39 of Africa’s 55 countries having coastlines, the continent is uniquely positioned to leverage ocean-based sectors for inclusive economic growth. “If we work together, the blue economy becomes not only a viable, but a strategic avenue to address youth unemployment across a majority of African nations,” said Makhabane.

In South Africa, the potential lies in bridging social equity with blue economy opportunities. The country’s youth unemployment rate is nearly 60%, and coastal provinces – from the Eastern Cape to KwaZulu-Natal – are rich in blue assets yet economically marginalised.

“By strategically redirecting capital toward sustainable marine conservation, coastal tourism development, and ocean-based SME funding, South Africa can create thousands of new jobs that are climate-aligned, socially meaningful, and a boost to our economy,” Makhabane concluded.