President Cyril Ramaphosa has affirmed that the Presidency is resolutely focused on driving economic growth to transform the lives of all South Africans.
The President delivered his reply to the Presidency Budget Vote debate in Parliament on Wednesday.
He emphasised that economic growth is not an “abstract concept” without real world consequence.
“It is about whether a young person can find work. It is about whether a small business can expand. It is about whether investors have confidence to build factories, establish enterprises and create opportunities.
“Our task is therefore not simply to grow the economy. It is to ensure that growth is inclusive, sustainable and capable of transforming the lives of ordinary South Africans.
“As Deputy Minister [in the Presidency Kenny] Morolong said, building a common future for all South Africans is our overriding priority. We can assert with confidence that we are building a Presidency capable of driving transformation across society,” the President said.
In this regard, the Presidency remains undeterred by “distractions” and is, rather, hard at work to grow an inclusive economy and create jobs.
“We will not be sidetracked by narrow agendas that have nothing to do with the needs, interests and concerns of the people of South Africa,” President Ramaphosa said.
Tackling youth unemployment
The President acknowledged that one of the “greatest threats” to South Africa’s future prosperity and social stability is youth unemployment.
In May, Statistics South Africa’s Quarterly Labour Force Survey reported that those aged between the ages of 15-24 face an unemployment rate at 60.9% while unemployment stands at 40.6% for those aged 25-34.
To address this, the Presidency has been central to driving “mass public employment”.
“The Presidential Employment Stimulus, coordinated through the Presidency, has created work and livelihood opportunities for more than 2.5 million unemployed South Africans.
“Last year, the Basic Education Employment Initiative provided work experience for nearly 200,000 young people in schools across the country, with support also provided to social employment, the creative sector, metros and the National Youth Service.
“The National Pathway Management Network continues to expand with more than 900,000 young people joining SA Youth mobi in the last year, increasing the number of young people on the platform to 5.7 million,” President Ramaphosa said.
While these are important, he added, the objective is to “create a growing economy capable of generating sustainable employment at scale.”
Tangible results
Turning to questions on what the Presidency has achieved, the President laid out some of the “meaningful and measurable” results.
“Through the implementation of the Energy Action Plan, through Eskom’s generation recovery programme, through the massive investment in renewable generation, we have in effect brought load shedding to an end.
“For years, corruption, dysfunction and mismanagement at Transnet was a severe constraint on growth. It has taken a great effort, involving partners across government and across industry, to turn the situation around.
“Transnet is now registering a steady increase in rail volumes and vessel traffic through its ports. Its financial position is improving and in the last financial year, cargo volumes through its ports showed its strongest growth in 15 years,” he said.
Furthermore, Operation Vulindlela is driving reforms in electricity sector, telecommunications, logistics, water and the visa system are “improving the conditions for investment and economic expansion”.
“These reforms are not always immediately visible, but they are steadily reshaping the foundations of our economy and strengthening South Africa’s long-term growth prospects,” President Ramaphosa added.
Turning to questions on the value of investment conferences, envoys and task teams, the President recalled that some eight years ago, South Africa’s fixed investment had “all but stalled, business confidence was low and the relationship between government and the private sector was characterised by mistrust”.
Now, the picture is much different thanks to the SA Investment Conference which has attracted some R1.5 trillion in investment pledges over the first five years.
Of that amount, a total of R634 billion has already been invested in “new factories, new production lines, new mines, renewable energy plants, data centres and new machinery”.
“These investments have sustained and created employment, have developed valuable skills, provided opportunities to emerging businesses and supported livelihoods in communities across the country.
“This year’s South Africa Investment Conference recorded the highest cumulative value of pledges to date, encouraging us to set our ambitions even higher,” President Ramaphosa noted.
The President delivered The Presidency’s Budget Vote in the National Assembly on Tuesday.
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