Mbombela - The Mpumalanga provincial government has promised to create 720 000 jobs in the province in the next nine years.
During the State of the Province Address at the Provincial Government Complex in Mbombela on Friday, Premier David Mabuza said the province would use its proposed Mpumalanga Economic Growth and Development Path to boost job creation and poverty reduction in the province.
"It is a growth path that envisages to create 720 000 jobs by 2020. However, for the province to realise this target, analysts suggest that the economy of the province has to grow at an economic growth rate of between 5 to 7 percent per annum," said Mabuza.
Mabuza said he believed the targets were achievable, given the growth potential of the province.
He also announced a R2.7 billion budget aimed at supporting job creation initiatives within the next three years.
"This amount will be dedicated to, in the main, infrastructure development due to its ability to deliver massive jobs within a short space of time," he said.
The money will be used for:
* construction and maintenance of roads, particularly roads in Piet Retief, Emalahleni, Ermelo and Mashishing
* paving of streets in residential areas
* maintenance of public institutions such as clinics, schools and government buildings
* construction of schools, houses and community health centres in rural areas
* bulk water infrastructure
Mabuza said the provincial government was also planning to work with the private sector and leverage additional funds from the R9 billion set aside by national government for job creation.
He said all departments involved in the job creation initiative would be monitored. He added that Mpumalanga's parastatals, namely the Mpumalanga Economic Growth Agency (Mega), Mpumalanga Tourism and Parks Agency and Mpumalanga Regional Training Trust would be central to the provincial government's job creation agenda.
"We expect to see Mega playing a major role with regard to delivery of strategic infrastructure projects and key economic initiatives. The agency must expand its current base of viable small businesses," Mabuza said.
The premier added that analysts indicated that the main economic sectors for growth potential include agriculture and forestry, mining and energy, tourism and cultural industries.
He mentioned that Mpumalanga was largely a rural province, where agriculture was one of the biggest job absorbers.
"While the contribution of the agricultural sector to the GDP shows [there's been] a declining trend over the past 10 years, it still remains an extremely important sector to our economy. The existing opportunities in crop and animal production, including the entire value chain have not been fully exploited," he added.
He said a special focus would also be given to the mining, manufacturing and energy sectors.
"We are the major producers of coal and power generation in the country, and also a home for big manufacturing industries. It is argued that opportunities in the mining industry will come from coal, chrome, gold, platinum and dimension stones," Mabuza said.
Mabuza also challenged relevant role players to combine efforts and tackle issues relating to unsettled land claims, water availability, infrastructure, skills development and comprehensive support to small scale farmers, particularly those who benefited from the land restitution and land redistribution programmes.
"As we gear the economy towards this growth trajectory, our economic activities must always be underscored by the sustainability agenda, an area of work that must be strengthened as we exploit the natural resources for development," he said.
Mpumalanga is currently standing at a 43.3 percent unemployment rate. In the 2009/2010 financial year, the province suffered a total of 82 000 job losses, including 29 000 that were lost in the first quarter of 2010.
