SA is struggling hard to create employment opportunities

Gordhan was under high pressure to give final message regarding the steps he is undertaking for increasing the growth and employment out to rating agencies and investors.

The medium term budget policy this week was mostly based on the widely accepted National Development Plan (NDP), which gives the summary of a number of government plans to make the nation more competitive and reduce its current account and budget loss.

SA’s Renewable Energy Independent Power Producer Procurement Programme is widely admired. If this continues to proceed as currently it is going on, it will result in worthwhile good opportunities for further expansion in rest of Africa for both local and international companies to connect to the green economy.  

As per the statement said by Gordhan on Wednesday, 47 projects which are already being approved would be completed between 2014 and 2016. The first 75 megawatt solar plant in the Northern Cape had been connected to the Eskom grid three months ahead of schedule.

The government has introduced R10 billion tax incentives over the next three years to support investment amounting to R35 billion and to encourage industrial development projects.

He said that one of the projects which was expected to create employment, created 970 000 jobs and training positions last year.

Contribution by the Jobs Fund:

He said that “The jobs fund has approved the allotment of more than 60 projects that will generate 90 000 permanent jobs and around 100 000 training opportunities over the period ahead.”

Government will also develop special economic zones in order to support job creation as well as the youth wage subsidy, which was initiated inspite of strong opposition from tripartheid parties form the partner Cosatu.

“A revised Employment Tax Incentive Bill was introduced officially in the Parliament on 24th October, which forms a part of the approach for expanding work opportunities especially for youngsters.”

He further said that past experiences prove that if youngsters work honestly soon after leaving the school, their lifetime career aspects would greatly improve.

Gordhan was very happy about the progress of the Manufacturing Competitiveness Enhancement Programme. It will provide support through various loans and grants and will encourage manufacturers to increase their production facilities and hence sustain the employment.

He said that the programme has received 387 applications since the middle of 2012, amounting R2.6 billion. Being a part of the country’s NDP, the government was looking for expanding the electricity, communications and transport facility.

Infrastructure development within the region:

To support the regional infrastructure development, the SA owned Development Bank of Southern Africa had proved almost R1.5 billion for road projects in Angola and also committed to fund around R3 billion to energy projects in Tanzania and the Democratic Republic of Congo.

The value of small, medium sized business sector to long term growth has been highlighted. But achieving this goal is highly avoided by the government.

Earlier in this year a tax review committee was established to look after how the tax system can help in promoting the economic growth, job creation, development and financial sustainability.

The first report from the committee is expected to be submitted by the end of this year. Another important NDP proposal is that the government will provide policy certainty to encourage long-term investment in the mining and other sectors.