Infrastructure development is one of the keys to unlocking the problem of unemployment, together with public and private sector interventions in procurement, says South African Labour Minister Membathisi Mdladlana.
Replying to a question from Democratic Alliance (DA) member of Parliament Mark Lowe about whether government had set a target for a reduction in unemployment, the labour minister said a halving of unemployment by 2014 was the target in line with the June Growth and Development Summit agreement.
Mdladlana said: “We intend to address direct job creation across an entire spectrum… at one end focusing on public investment with special emphasis on labour based infrastructure projects and “purpose built” publicly funded job creation schemes known as expanded public works programme.”
On the other hand the government was carrying out a series of measures to stimulate the private sector to create new jobs by expanding existing sectors of the economy, particularly the small business sector.
“One important link between the public and private sector interventions lies in the area of procurement because contracts from large firms or the government are key to making small business, especially black owned businesses, more viable and sustainable.
“Another link between the two is infrastructure itself because once infrastructure is in place it is must easier for the private sector to follow with investments… once a road is built, and water and telecommunication services are in place, it is common sense that it is much more likely that someone will sense an opportunity and open up a shop.
“The jobs that government will create through its planned infrastructure projects and expanded public works programme will inevitably be of a short-term nature and will be funded from the public purse. It follows that these jobs are not all as desirable and those that are based on products or services for which locally or internationally people are willing and able to pay… but this does not mean that these short-term jobs are not important.”
He welcomed the fact that at the growth summit the private sector had announced planned investments of R145-billion over five years.
“This more than anything else should signal to foreign investors that South Africa is well on the way to becoming the leading emerging market and destination of first choice for investors while retaining social equity and fair labour standards.” – I-Net Bridge