President Jacob Zuma announced several initiatives to boost job creation, including the setting up of a R9-billion jobs fund, as he declared 2011 the “year of job creation”.

The initiatives that the president detailed on 10 February 2011 helped to flesh out the government’s New Growth Path, released late last year, which aims to create five million jobs by 2020 and bring unemployment down to 15%.

The unemployment rate dropped slightly in the final quarter of 2010 – dropping from 25.3% in last year’s third quarter to 24%.

In line with the New Growth Path, President Zuma said six priority areas would be targeted in a bid to create more jobs, namely: infrastructure development, agriculture, mining and beneficiation, manufacturing, the green economy, and tourism.

He said that the private sector would be key in the country’s efforts to create more jobs and that business, labour and communities needed to work together to beat unemployment.

The R9-billion jobs fund would finance new job-creation initiatives over a three-year period and would be complemented by an amount of R10bn to be set aside by the Industrial Development Corporation (IDC) over the next five years for investment in projects with high job-creation potential.

The president further announced R20bn in tax allowances and tax breaks to promote investments, expansions and upgrades in the manufacturing sector.

The Department of Trade and Industry unveiled the initiative late last year.

For a project to qualify, the minimum investment must be R200 million for new projects, and R30m for expansion and upgrades, President Zuma said.

The programme will provide an allowance of up to R900m in tax deductible allowances for new investors and R550m for upgrades and expansions.

To boost support to small businesses, the government would look at merging three of its funds that targeted small businesses – Khula, the South African Micro-Finance Apex Fund (Samaf) and the IDC’s small business funding activities – into a single unit.

This would enable the government to avoid duplication of financial support, cut administrative costs and bolster the available funds for small enterprises, the president said.

He added that the campaign to pay small businesses on time – within 30 days – was proceeding well, adding that in the last financial year, the SMME Hotline received 20 000 calls and facilitated about R210m in payments.

President Zuma said that other departments had their own initiatives, such as the Department of Public Works’ Re Ya Patala (We Pay) initiative.

The government would continue with legislative reforms to make it easier to register businesses, and would strengthen the Competition Act to open the market to new participants.

The president said the Expanded Public Works Programme aims to create 4.5 million work opportunities, and pointed out that more than a million opportunities have been created already since the beginning of Phase 2.

The programme focuses on repairing our roads networks, and the government would develop infrastructure to boost the agricultural sector.

President Zuma said water reservoirs, windmills and irrigation schemes would be rehabilitated. “These projects will enhance food security and create work opportunities for many, especially women in rural areas,” he explained.

He added that the conversion of the country’s television and radio signals from an analogue platform to a digital signal would create many jobs in manufacturing, packaging, distribution and installation.

The president further stated that the government’s job creation drive would enhance youth development.

“The National Youth Development Agency is in discussion with state organs and the private sector to mainstream youth development in public sector programmes and to promote youth enterprises and co-operatives,” he said.

President Zuma added that the government had developed the National Rural Youth Service Corps programme to assist youths in rural areas. To date, more than 7 000 young people have been employed in the programme.

The government was looking at targeting the tourism sector where, the president pointed out, for every 16 tourists who visited the country, one job was created. Tourist arrivals were up from 6.3 million in 2009 to 7.3 million last year.

The country would strengthen existing markets while exploring the emerging economies, while looking to grow the number of international conferences and sports events that the country hosts.

President Zuma said South Africa had already secured 95 meetings and conferences between 2010 and 2016.

The government would look into flexible visa requirements, improved landing slots at foreign airports as well as improved tourism infrastructure.

Linked to tourism, the government would continue developing cultural industries.

The president said that while the government would look to improve the lives of workers, through reviewing legislation on labour brokers, the government’s position paper on social security reform is expected to be released this year for discussion.

“Issues to be dealt with include the funding and nature of the National Social Security Fund, how the private sector occupational and retirement funds will fit into the entire system, and the possible regulatory structure,” he said.

He added that this year, the government would finalise and adopt its mineral beneficiation strategy to boost the economy.

The country is rich in mineral wealth, but most of the minerals mined are subject to beneficiation outside of South Africa, robbing the country of business opportunities.

President Zuma said ministers would detail their respective job targets when they tabled their Budget Vote speeches.

He said provincial and local governments have been asked to align programmes with the job-creation imperative, and that state-owned entities and development finance institutions would further bolster job-creation efforts.

“Our goal is clear. We want to have a country where millions more South Africans have decent employment opportunities, which has a modern infrastructure and a vibrant economy and where the quality of life is high. We all have a responsibility to work hard to make this a reality," said the president.

Source:Bua News

www.buanews.gov.za