Cape Town – Deputy President Cyril Ramaphosa says government will continue working with both business and labour in order to enhance its attractiveness to investment.
The Deputy President said this when he fielded questions in the National Council of Provinces on Wednesday.
“Government remains firmly committed to working with its partners to implement these measures to stimulate growth and create jobs.
“With strong democratic institutions, advanced infrastructure and a diverse and sophisticated economy, South Africa continues to be an attractive destination for productive investment that creates jobs, increases exports and drives inclusive growth.
“Through the measures we are now undertaking, we are confident that we will be able to significantly improve the investment climate and attract far greater interest in our economy,” he said.
He said the measures, led by Finance Minister Pravin Gordhan and Business Unity SA President Jabu Mabuza, included practical steps being taken to increase investment, support small enterprise development, address youth unemployment and maintain South Africa's investment grade status.
The Deputy President said at the centre of the partnership between government, business and labour is a shared understanding that the overriding task of the moment is the creation of jobs, particularly among the youth.
“There is an appreciation among all social partners of the urgency of the challenge and the critical need, particularly at a time like this, for collaboration and engagement.
“While some are doing all they can to talk down South Africa's prospects, the country's leading CEOs and labour leaders are working closely with government on measures that will strengthen the economy and promote investor confidence,” he said.
Addressing youth unemployment
The Deputy President said as part of efforts to address youth unemployment, the CEOs’ initiative is developing a programme that aims to place one million young people in paid internships in the private sector over the next three years.
“By giving young people work experience, this programme will significantly increase their ability to find employment.
“There is also an agreement on the establishment of a fund that will make equity investments in small enterprises with growth potential. The private sector has already committed R1.5 billion to the fund,” he said.
The Deputy President said government remained grateful for the support it continues to receive from business and labour in its engagements with national and international investors.
Invest South Africa
He said that government has also received important support from business in establishing Invest SA as a one-stop-shop to streamline and accelerate the investment process.
“Invest South Africa has an investment pipeline of R90 billion for the 2015/2016 financial year and R38 billion for the first and second quarter of the current financial year, 2016/2017.
“Announcements on new investments are taking place almost every month from the likes of Nestle, Unilever, 3M, Sumitomo Rubber, Goodyear, Ford, Toyota, CIPLA and BAIC, amongst others.
“Invest SA also provides support to the Inter-Ministerial Committee on Investment, chaired by the President, which has identified 40 priority investment projects which can be operationalized in the short-to-medium-term,” he said.
He said maximising the benefits of these developments for the economy depends on decisive action to restore confidence.
“We are seeing important progress in strengthening the governance, financial position and operational performance of key state owned enterprises.
“In addition to interventions in specific entities, Cabinet has recently adopted guidelines for the remuneration of directors and executives of state owned enterprises, and endorsed the broad thrust of a guide for the appointment of boards and executive.
“Cabinet has also endorsed a framework for private-sector participation in infrastructure projects, which will broaden the sources of funding for critical economic infrastructure,” he said.
He said work is underway to address legislative and regulatory uncertainties that hold back investment in mining, agriculture and key technology sectors.
“We are close to reaching agreement with social partners on far-reaching measures to improve labour stability and the implementation of a national minimum wage.” – SAnews.gov.za
