President Jacob Zuma in his State of the Nation Address presented bold new measures that will take South Africa forward over the next five years. These far-reaching interventions, aimed at faster economic growth and job creation, place us on path of a “radical socio-economic transformation”.
It also firmly propels us towards Vision 2030, the country’s long-term growth strategy as outlined in the National Development Plan, where we are a country free from the burden of poverty and inequality.
President Zuma highlighted that economic transformation would take centre stage and that there was a clear plan for economic growth.
“It remains our strong belief that the most effective weapon in the campaign against poverty, is the creation of decent work, and that creating work requires faster economic growth,” he said.
The government is targeting economic growth of 5 percent by 2019.
However, our economic advances have been hampered by low levels of private sector investment and a sluggish global economy. Furthermore, the untenable labour relations, specifically in the mining sector and energy constraints, have dampened growth prospects.
During his address, the President articulated decisive action the government would take to overcome these challenges.
The government will develop a sustainable energy mix of coal, solar, wind, hydro, gas and nuclear energy to provide energy security. It will be driven at the highest level by a new energy security cabinet sub-committee responsible for the oversight and co-ordination of activities in the energy sector. At the same time, financing for the next large coal fired power station will be fast-tracked for the procurement process to start.
To allow the mining sector to realise its full potential; the president will oversee the implementation of the Framework Agreement for a Sustainable Mining Industry, signed between the government, business and labour to promote sustainable mining with decent living conditions.
The government will also monitor the compliance of mining companies with the mining charter, which calls for hostels to be upgraded into family units and to facilitate home ownership.
The government will work with the private sector through the Presidential Business Working Group to remove obstacles to investment. The private sector has an important role in advancing the economy and we would like to see them showing as much confidence in the economy as the public sector.
To drive the economic transformation, the government has pledged 75 percent of state procurement to local companies, entrepreneurs and co-operatives.
Through the Industrial Policy Action Plan the government will promote local content in the renewable energy sector, the manufacturing of busses and our R50 billion acquisition of locomotives.
This goes hand in hand with support to small business development in townships and informal businesses. The small business development programme will further boost broad-based black economic empowerment.
The President said: “We will promote more employee and community share ownership schemes and boost the participation of black entrepreneurs in the re-industrialisation of the economy.”
Through the government’s drive to change the socio-economic face of South Africa we will continue to build schools, railways, ports, universities, clinics, power stations and roads as part of our flagship infrastructure programme; R847 billion will be spent on these infrastructure projects over the next three years.
We have prioritised the advancement of young people in the economy and will expand the number of internship positions in the public sector in line with the commitment to the Social Accord on Youth Employment.
The government encourages the private sector to follow suit and help more of our youth to enter the workplace.
The youth employment tax incentive – which allows employers of first time workers between 18 and 29 years a tax deduction – brought 133 000 young people over the past five months into work at wholesale, retail, manufacturing and finance sectors.
The Expanded Public Works Programme will provide six million work opportunities, while our Community Work Programme will expand to provide a million work opportunities by 2019.
The programme of action requires a radical effort from all sectors of our society to make it a success. The government invites all people to join in its implementation so that together we can move South Africa forward.
Phumla Williams is Acting CEO of the Government Communication and Information System (GCIS)
