Gerald Van Wyk, Group CEO of AfroCentric
South Africa faces an escalating mental health crisis among our youth, exacting a heavy toll that goes far beyond emotional wellbeing. AfroCentric a diversified healthcare company and a Sanlam Group Company, reports a concerning 25% year-on-year increase in hospitalisations due to mental health issues for individuals under 35.
“This is more than a public health issue; it’s a fundamental challenge to our economic resilience and future workforce,” says Gerald Van Wyk, Group CEO of AfroCentric. “The costs are staggering – presenteeism, where employees are at work but underproductive due to mental health challenges, costs the economy an estimated R235 billion annually. When you add absenteeism, this figure climbs to approximately R250 billion or over 4% of our GDP.”
Additional data indicates a generation under severe strain. UNICEF’s latest U-Report shows that 60% of South African youth needed mental health support in the past year – rising to 70% among 15- to 24-year-olds. Yet access to crucial mental health support remains critically limited.
“If we fail to act, we risk cultivating a workforce that is employed but not thriving, undermining our economic foundations,” Van Wyk warns. “We need integrated wellness solutions across the entire care continuum, from when young people start work to the day they retire.”
Solving this crisis requires a definitive shift from fragmented, standalone benefits to a more connected and intentional ecosystem. This includes proactive preventative education, real-time support and fostering longer-term financial and emotional resilience in young individuals.
A holistic approach to wellness must integrate easily accessible primary healthcare consultations, trained counsellors, mental health literacy programmes and scalable youth-appropriate wellness solutions that are flexible and evolve with an individual’s salary and life stage.
Employers play a critical role by offering tiered healthcare and wellness packages. Fund providers should embed essential tools such as financial literacy modules and accessible digital mental health resources.
“Making these services easy to access and stigma-free is crucial. Often young employees don’t engage with existing benefits because they’re hard to navigate or feel emotionally loaded. Digital-first delivery, like WhatsApp counselling or app-based tools, can bridge that gap supported by data-driven messaging, trained line managers and peer advocacy to normalise seeking support,” says Van Wyk.
Financial Wellbeing must become a core part of every employer’s value proposition, Van Wyk stresses, “Money is a significant driver of poor mental health, yet it’s often overlooked in benefits strategies. Budgeting tools, debt support, emergency savings guidance and education around medical aid or risk cover should be integrated, not treated as optional extras. This is particularly relevant for young employees who support extended families or are part of the ‘sandwich generation’, where they support both children and parents.”
The mental health crisis also reveals a gender gap within employer provided healthcare. Data from the 2025 Sanlam Benchmark Survey shows that only 38% of those with employer-provided healthcare are women. Additionally, 59% of women rely on their partner’s medical cover.” Van Wyk highlights. “This is deeply concerning given that young women are often more likely to need mental health support and disproportionately shoulder unpaid care responsibilities. We urgently need benefit audits by gender, flexibility across income bands and accessible resources for all roles and life stages to address this short coming.”
“When wellness is embedded into the employee value proposition, it becomes a performance driver,” Van Wyk concludes. “A young employee struggling with anxiety may still show up – but without the right support, their confidence and contribution will quietly erode.”
South Africa’s youth are under extraordinary pressure. Building a future-fit workforce means treating mental wellness as a shared national priority – because if our young people aren’t okay, our economy won’t be either.
For deeper insights into these critical trends shaping employee wellness and the youth mental health crisis, look out for the 2025 Sanlam Benchmark Survey – a research paper in the retirement fund industry sharing insights on the issues and trends shaping the future of the employee benefits and healthcare industries – launching on 19 June. This comprehensive report, a widely referenced guide in the retirement industry will include an in-depth exploration of employer provided health and wellness benefits offering further data and actionable strategies for businesses committed to building a healthier and more confident workforce.
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