President Cyril Ramaphosa says investment commitments secured through the South Africa Investment Conference (SAIC) are projected to create around 230 000 direct permanent jobs over time, as government intensifies efforts to tackle the country’s structural unemployment crisis.
Responding to oral questions in the National Assembly on Thursday, President Ramaphosa said the 6th South Africa Investment Conference, held in March, secured a total of R890 billion in investment commitments.
According to the President, around R415 billion of the total came from private sector companies, while the remainder was pledged by development finance institutions and multilateral development banks.
“Of the 81 confirmed private sector investments, 53 companies submitted employment declarations at the time of signing.
“These 53 investments are projected by the companies to create approximately 230 000 direct permanent jobs,” President Ramaphosa said.
The President noted, however, that not all investments generate employment at the same rate, with labour-intensive sectors producing more jobs than capital-intensive industries.
“Labour-intensive investments in global business services and financial services generate approximately 3 900 jobs per R1 billion invested.
“However, capital-intensive sectors, such as renewable energy infrastructure and data centres, generate between 13 and 248 jobs per R1 billion investments,” he said.
President Ramaphosa said several of the largest commitments, including investments by Sasol, MTN, Vodacom and Coca-Cola Beverages Africa, involve expansions of existing operations, helping sustain current jobs, while gradually increasing employment.
He said all investment pledges are being monitored through a quarterly implementation tracker to ensure projects move from commitments to execution.
The President acknowledged that South Africa’s unemployment challenge is deeply structural and cannot be resolved through investment attraction alone.
“The structural unemployment problem is rooted in skills mismatches, spatial economic concentration, slow growth of the formal private sector and barriers to small business formation,” he said.
President Ramaphosa said government’s broader economic strategy includes infrastructure investment, industrial policy reforms, skills development and efforts to remove barriers facing small businesses.
He also announced that government now aims to raise R3 trillion in new investment commitments over the next five years.
Flood victims remembered
The President took time to extend condolences to families affected by recent severe flooding across parts of the country.
“At least 10 lives have been lost and thousands of people have been displaced.
“Our thoughts and prayers are with the families mourning their loved ones, with those who have lost all they had and with the owners of businesses that have been destroyed.”
He also thanked emergency personnel, disaster relief teams and community organisations assisting affected communities. – SAnews.gov.za
