Abstract
South Africa continues to experience a severe youth employment crisis. In 2026, the unemployment rate among young people aged 15 and 24 years remained above 60%, while 37.6% of this cohort was not in employment, education, or training. Conventional skills development approaches, which rely mainly on formal Technical and Vocational Education and Training (TVET) colleges and universities, have struggled to address the needs of young people living in resource-constrained communities such as townships, informal settlements, and rural areas. This article argues that frugal innovation, which is defined in the study as the creation of practical, affordable, and sustainable solutions using limited resources, offers an alternative pathway for developing employable skills in these contexts. Resource-constrained environments encourage creativity and innovation, problem-solving, collaboration, and entrepreneurship, enabling young people to acquire technical, digital, business, and socio-emotional skills through practical experience. The study employs an integrative literature review that synthesises international scholarship on frugal innovation alongside South African studies on informal innovation, youth entrepreneurship, and recent labour market and policy developments. Based on this review, the study develops the frugal innovation youth skills-development pathway, a conceptual framework that explains how frugal innovation can strengthen youth skills development. The framework is illustrated using evidence from South African fabrication laboratories, township maker spaces, community-based digital innovation initiatives, and youth employment programmes. The study concludes that frugal innovation complements rather than replaces formal education and training systems by creating accessible opportunities for experiential learning and skills acquisition. It recommends integrating frugal innovation into South Africa’s National Skills Development Strategy and related government policies to improve youth employability, promote inclusive entrepreneurship, and strengthen innovation ecosystems in underserved communities.
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