Speaking to the media in Parliament, Zille echoed the concerns of other groups, including the Black Business Council, which is more optimistic about a youth wage subsidy rather than a grant.

Other commentators have said detail is lacking especially about whether taxpayers will fund the scheme. "It would provide yet another grant that would entrench unemployment and even potentially incentivise young people to stay out of work, Zille said on Monday.

The job seekers' fund was discussed at the ANC policy conference in June.

"It is a holding pattern designed to keep the ANC alliance partners happy until Mangaung is over, Zille said. She said a youth wage subsidy was the only way to go.

Zille said it was imperative that initiatives, like lowering the cost of doing business, were put in place, and that inflexible labour laws were amended. "This, coupled with the proposed youth wage subsidy, which incentivises the employment of unskilled young people, is the plan South Africa needs."

The DA announced last week what it has called an "opportunity voucher scheme" to fund those who want to start their own businesses or people interested in developing skills.