Investment in the South African economy appears to be on track, said Minister of Labour Membathisi Mdladlana in Pretoria on Thursday following President Thabo Mbeki’s meeting with big business.
Representatives from the government, business, labour and agriculture met at the Union Buildings to discuss progress made since the establishment of certain goals during the Growth and Development Summit (GDS) held in June last year.
”The GDS was not a solution to all of the economy’s problems but it addresses most of them,” Mdladlana said.
Mbeki was handed a progress report, which he is expected to study. He will then reconvene a similar meeting early next week.
But Zwelinzima Vavi, general secretary for the Congress of South Africa Trade Unions (Cosatu), said the 12 months since the summit took place is too short a time to deliver an assessment.
He said most of the goals set at the GDS are medium to long term, and so more time is needed to make an impact.
Vavi said it appears that the commitment by business at the GDS to invest at least 5% of its investible capital has been met.
”This was set to increase to 25% of GDP [gross domestic product] and it currently stands at 15% of GDP,” he said.
He feared, however, that unemployment figures will not be as promising.
Mbeki has asked for an independent audit on whether jobs have been created or lost since the GDS. These figures are to be handed to him before the next meeting.
In June, Statistics SA (Stats SA) reported that employment in the formal non-agricultural business sector of the South African economy had decreased by 41 000 in the first quarter of 2004.
According to a March 2004 Survey of Employment and Earnings, an estimated 6 384 000 persons were employed in the formal non-agricultural business sector at the end of March, compared with 6 425 000 in December.
”This reflected a decrease of 0,6% between December and March,” Stats SA said.
But Professor Raymond Parsons of the National Economic Development and Labour Council said various industries — including the automobile and chemical industries — have shown good investment in the economy.
He said the automobile industry for 2004 is predicted to invest R3,6-billion and this is in line with its commitment to invest R16-billion over the next five years.
The chemical industry, he said, has already invested R8-billion of its promised R10-billion for 2004.
Representing big business, mining tycoon Patrice Motsepe said there can be no denying businesses’ commitment to the development of the country and the reduction of unemployment and poverty by 2014.
”There is a spirit of commitment to ensuring that the agreements made at the GDS will be executed as undertaken,” he said.
It was during the GDS last year that Mbeki called on all employed youths to contribute one day’s salary to youth development programmes. — Sapa