From SAPA
South Africa needs drastic intervention to jump-start the economy and overcome poverty, unemployment, and inequality, President Jacob Zuma said on Tuesday in his seventh state of the nation address.
In the wake of the country’s credit ratings downgrade, Zuma sombrely acknowledged that economic growth had lagged far behind the government’s targets and that many South African households were struggling.
He urged efforts to boost investment, stabilise the mining sector and its workforce, resolve energy shortages, and alleviate vast income inequalities.
To this end, a national minimum wage to reduce income inequalities that persist in the country 20 years into democracy was being considered.
“The triple challenges of poverty, inequality and unemployment continue to affect the lives of many people.
“As we enter the second phase of our transition from apartheid to a national democratic society, we have to embark on radical socio-economic transformation to push back the triple challenges.
“Change will not come about without some far-reaching intervention,” Zuma said, adding that nothing would cure the ailments of the post-apartheid society as rapidly as job growth.
But he stressed that for this it was imperative to boost growth. This could only be done if investment levels increased.
“Creating work requires faster economic growth. The low level of investment is a key obstacle to growth. We would like to see the private sector showing as much confidence in the economy as the public sector.” He confirmed that the state would over the next three years spend R847 billion on infrastructure projects, despite expected higher borrowing costs. He reiterated a pledge made earlier this year that the state’s expanded public works programme would provide six million job opportunities by 2019.
Zuma added that the state would increase efforts to boost youth employment, including increasing targets for all state departments in taking on interns.
Government would put special focus on the strife-ridden mining industry that had been plagued by a-five-month strike in the platinum sector, and deal with the “violent nature and duration” of labour action.
But he gave clear warning to mining houses that government will keep them to targets in the Mining Charter to improve living conditions at mines.
“Companies are expected to convert or upgrade hostels into family units, attain the occupancy rate of one person per room, and also facilitate home ownership options for mine workers.
“We urge the companies to meet the 2014 deadline for these targets and extend this right to dignity to mineworkers.” Zuma said he would personally take over guardianship of the Framework Agreement for a Sustainable Mining Industry, forged under the leadership of then deputy president Kgalema Motlanthe last year. He would see that it implements a plan to improve services to mining towns.
Turning to energy restrictions, Zuma signalled the government planned to push ahead both with nuclear energy generation and shale gas exploration.
“Nuclear has the capacity to produce well over 9000 megawatts while shale gas is recognised as a game changer for our economy.
“We will pursue the shale gas option within the framework of our good environmental laws.”
Source : Sapa /ef/fg/th
