South Africa’s university towns are quietly emerging as some of the most important economic spaces in the country. From Mankweng and Qwaqwa to Mthatha, East London, Gqeberha and George, thousands of young people arrive each year filled with hope, ambition and a determination to build better futures. Yet too often, when they graduate, many leave these towns in search of opportunities elsewhere, or worse, join the ranks of the unemployed.
This reality compels us to confront a critical question: Are we fully harnessing the power of our universities to drive economic development and job creation in the cities that host them?
Over the past three decades, South Africa has made remarkable progress in expanding access to higher education. More young people than ever before are enrolling at universities and colleges. But access alone is not enough. The true test of our higher education system is whether it enables graduates to secure meaningful work, build enterprises and contribute to the development of their communities.
In many university towns, local economies remain fragile. Industrial activity is limited, and municipal resources are often stretched. In this context, universities become the largest and most influential institutions in these regions. They are not merely centres of teaching and research; they are economic anchors.
Recognising this reality requires us to think differently about what I call the student employability and entrepreneurship nexus, the vital connection between higher education, local economic development and youth employment.
Universities cannot operate in isolation from the cities that surround them. The future of our graduates is inseparable from the economic vitality of the places where they study.
One of the most pressing challenges facing graduates today is the weakness of labour markets in many university towns. Students complete their qualifications but struggle to find work locally. This often leads to a migration of talent to major metropolitan areas such as Johannesburg, Cape Town and Pretoria. While mobility in itself is not negative, the consequence is that smaller towns lose the skilled young professionals they urgently need to grow.
We must therefore transform our university towns into innovation and enterprise hubs, places where graduates can build sustainable careers without being forced to leave.
Entrepreneurship will be central to this transformation. Many of today’s graduates will not simply step into existing jobs; they will need to create new opportunities for themselves and others. Universities must go beyond traditional academic instruction and deliberately cultivate entrepreneurial mindsets, practical capabilities and innovation.
There are encouraging signs across the country. Some institutions are establishing innovation hubs, start-up incubators and entrepreneurship programmes. Others are forging partnerships with municipalities and local businesses to support youth enterprise development.
However, these initiatives remain fragmented.
What is required is a coordinated national and local strategy that brings together universities, municipalities, industry and communities in a shared vision.
Municipalities must recognise universities as strategic partners in their economic development plans. Universities, in turn, should align elements of their academic programmes with the economic potential of their regions, whether in agriculture, digital services, tourism, creative industries or manufacturing.
At the same time, institutions must rethink how they support students beyond the classroom. Student development initiatives, internships, community engagement and entrepreneurship programmes should form part of an integrated employability ecosystem.
There is also a significant opportunity for universities to stimulate local economies through procurement. Many of the services universities require, from technology solutions to catering and creative services, could be supplied by student and graduate entrepreneurs if given the appropriate support.
Equally important is the broader urban environment of student cities. Quality student housing, reliable transport systems, strong digital infrastructure and safe public spaces all influence whether young professionals choose to remain in these towns after graduation.
With strategic investment in these areas, university towns can evolve into vibrant centres of innovation and youth-led economic activity.
South Africa is grappling with one of the highest youth unemployment rates in the world. Addressing this crisis will demand bold thinking and new forms of partnership. Universities alone cannot solve it. The government alone cannot solve it. The private sector alone cannot solve it.
But together, we can transform student cities into engines of opportunity.
The young people in our universities today are not only future employees; they are future employers, innovators and community builders. Our responsibility is to ensure that the cities in which they study become places where they can thrive, create and lead.
If we succeed, the impact will extend far beyond campus gates. It will revitalise local economies, strengthen communities and enable South Africa to unlock the full potential of its graduates.
That is an opportunity we cannot afford to miss.
Thamsanqa Maqubela is the CEO of the South African Council for Graduates
