rther, young people who do not finish secondary school are twice as likely to be unemployed than to have a business or a job (McCarthy, 2008).
What is evident is that tertiary education is key to reducing youth unemployment. How then do we deploy a development finance perspective to this finding? Government and the private sector should have a concerted focus on ensuring that there are no financial barriers to education. The existence of the National Financial Aid Scheme (NFAS) is a step in the right direction but is largely insufficient in South Africa. With a paltry budget, a questionable lending model, and evident operational challenges, the NSFAS is never going to be the panacea for this challenge. However, the failures of the NSFAS to not negate the need for institutions that are established to finance individual skill acquisition. The key would be for these institutions to be structured such that they do not demand immediate collateral. In addition, they should advance loans to enterprises to develop training programs.
South Africa has attempted to fill the training vacuum through the establishment of the Further Education and Training (FET) colleges. This has proven to be a noble idea that has fallen short of its ambitious mandate. Concisely, FETs face multiple challenges such as a lack of clarity on the most effective programmes, funding, weaknesses in institutional governance, and an inability to equip trainees with direct links to the work place.

8.6 Low-cost housing finance
Isolation from the origin of opportunities is how location-related market failure is manifested. The solution to this would be to reduce isolation. Investment in and building of transport infrastructure in themselves are not youth specific interventions, but do contribute significantly to integrating young people into the labour market. Further, improving the road network often translates into a reduction of transport costs as young people go out in search of work.
The development of a housing market to ease the movement of families, which would include young people, is a strategy that has potential to counter location-related market failure. Development Finance could contribute to this strategy through the development of a low-cost housing scheme. The Department of Human Settlements has embarked on a similar programme namely; the Finance Linked Individual Subsidy Programme (FLISP). FLISP targets an income range of R3 501 to R15 000 per month supporting qualifying families with a once-off down payment provided that they have secured mortgage finance to acquire a residential property for the first time (DPME, 2014). Leveragi