The Absa-EDHE Innovation Challenge was recently launched at Mangosuthu University of Technology (MUT). It brought together public and private sector partners to unlock entrepreneurial opportunities for young people. This groundbreaking initiative, a collaboration between Absa Bank and Universities South Africa (USAf) through the Entrepreneurship Development in Higher Education (EDHE) programme, aims to support student and alumni-led ventures that offer creative, tech-driven solutions to real-world problems, positioning entrepreneurship as a powerful tool in the fight against joblessness.

EDHE exists to support the development of student entrepreneurship, through teaching, learning and research, and the development of entrepreneurial universities in South Africa. This initiative reflects that mission by directly enabling youth to build impactful businesses while being embedded in a supportive ecosystem.

The event marks a significant step forward in the national effort to support entrepreneurship and innovation as tools to fight unemployment.

Sandile Shabalala, Senior Student Engagement Officer for EDHE programme under USAf, stated that the initiative is a collaboration between USAf and Absa Bank. Shabalala emphasised the importance of this initiative, highlighting that it seeks businesses that demonstrate innovation, scalability, and meaningful social impact. Participants will benefit from expert mentorship, intensive entrepreneurial training, boot camps, and generous cash prizes, with the top innovation receiving a remarkable R500,000.

The launch of the challenge follows the recent release of the 2025 Quarter 1 Labour Force Survey, which painted a grim picture of the country’s youth unemployment crisis. The national unemployment rate of 32.9%, young people aged between 18 and 35 make up a staggering 46.1%. These figures reaffirm the need for alternative pathways such as entrepreneurship.

Dr Edwell Gumbo, Director of Entrepreneurship at USAf, explained that this programme is not just about winning a prize but also enabling the youth to become job creators. “It is now a bit difficult to secure employment. The idea we are pushing is to give the support to say create your own job because there are such structures available to support entrepreneurs,” said Dr Gumbo. He highlighted that the initiative provides more than just funding. It forms part of a developmental programme designed to prepare young innovators to build sustainable, impactful businesses.

The top 20 selected applicants will enter a structured incubation programme, beginning with a bootcamp to equip them with the necessary skills before they pitch for the prize. The top innovation will be awarded R500,000, while the top five innovations will share R1.5 million in total funding.

Nontokozo Ngcobo, Centre Manager at the innobiz DUT Centre for Entrepreneurship and Innovation, welcomed the challenge as another exciting opportunity for student entrepreneurs to turn their ideas into thriving businesses. She encouraged aspiring entrepreneurs to seize the moment.

“Bring forward those ideas because there are opportunities aplenty with industry giants like Absa coming on board wanting to join hands and to provide support to student entrepreneurs and their initiatives, so this is one of many opportunities and to the student entrepreneurs out there grab this opportunity,” she explained.

Speaking on the success of student entrepreneurship at the DUT Ngcobo also shared that student businesses incubated through DUT’s programme have collectively generated over R150 million in turnover and created employment for more than 300 young people created by student entrepreneurs produced  by the innobiz DUT Centre’s intensive entrepreneurial development programme.

Ngcobo said, “Our programme comprises various skills training, technical skills training, sector specific training such as your agri-tech, fashion, and even general businesses. We also have a short course for basic business management, covering your finance, human resources, marketing, introduction to business so that they understand the basics.”

She further encouraged students to recognise these opportunities while they are still at university, as they are designed to prepare them for the real world and self-sufficiency.

Professor Nokuthula Sibiya, the Vice-Chancellor and Principal at Mangosuthu University of Technology, said that this was an exciting opportunity for the students and youth.

She stated that if all of the province’s universities brought their resources forward together it would become even more significant for student entrepreneurs that the universities were servicing.

The event also featured a dynamic panel discussion on student entrepreneurs’ success, bringing together innovative student entrepreneurs from various KZN universities to share their journeys, challenges, and insights into balancing academia with business.

Humaira Hassan, a Master of Applied Science student specialising in Food Science, and Co-founder of Aquagreen Technologies, was one of the esteemed panelists representing the DUT during the panel discussion on student entrepreneurship success.

Reflecting on the Absa-EDHE Launch, Hassan expressed her admiration for what she described as a monumental event. She highlighted the importance of such initiatives in offering student entrepreneurs the chance to participate in what could be a life-changing competition.

“I believe this competition is the ideal platform for emerging students entrepreneurs to showcase their business ventures. Beyond the generous monetary prizes, it provides a space to gain invaluable experience, network with like-minded individuals, and access support to grow or enhance their businesses,” Hassan explained.

All in all, the students were excited about the Absa-EDHE Innovation Challenge and looking forward to participate and showcase their innovation ideas.

Samkelo Mtshali/Sinamile Sithole