Ramaphosa’s R100bn investment plan
PRESIDENT Cyril Ramaphosa has a bold plan to raise $100 billion through investment to create more jobs and improve the conditions of workers.
Ramaphosa’s ambitious plan was unveiled at the trade union Cosatu’s main Workers’ Day celebrations in the Eastern Cape attended by thousands of supporters.
He said the ANC had adopted a working class bias because trade unions fought for the rights of workers on the shop floor and confronted a political system that impoverished their communities and enabled their exploitation.
“At the same time, we have embarked on an ambitious drive to mobilise new investment in the economy. We need investment to increase the pace of growth, and we need much faster growth to create more jobs and improve the conditions of workers. Workers need to be part of the preparations for the Investment Conference, through which we plan to raise $100bn over the next five years.
“These efforts must be accompanied by intensive skills development effort which ensures that workers have the skills needed to participate not only in the economy we have now, but also the economy of the future,” Ramaphosa said.
He said the government was investing in early childhood development through to the provision of free higher education for students from poor backgrounds.
“We are transforming our education system. Workers and employers need to co-operate more effectively in developing the skills of those already in employment and the many young South Africans looking for employment,” he said.
Ramaphosa admitted that there were several challenges in various sectors of the economy. “With vigour and determination, we must further advance the realisation of the demands of the Freedom Charter. Specifically, the injunction that there must be equal pay for equal work for men and women of all races.
“We must pay more attention to issues of women in the workplace and work to close the persistent wage gap between men and women. For far too long, women in the workplace have been discriminated against through the payment of lesser wages as compared to men doing the same work,” he said.
He said widespread poverty, severe unemployment and vast inequality also required urgent attention. “These are challenges that organised labour, business and government must work together collectively to address. Our most immediate and pressing task is the creation of jobs for the millions of South Africans who are unemployed. That is why we are convening a jobs summit later in the year where government, labour, business and communities will finalise practical actions to create new jobs,” he said.
WORKERS NEED TO BE PART OF THE PREPARATIONS FOR INVESTMENT CONFERENCE
On the controversial national minimum wage, Ramaphosa said workers would achieve another historic victory. The national minimum wage would begin at a level of R20 an hour, which would increase the income of over 6 million working people while also having a minimal negative impact on job creation. This move has, however, angered some opposition unions who have labelled the minimum wage as “slave wages”. But Ramaphosa said the government’s social partners had agreed to begin at R20 an hour because it would make a significant difference immediately.
“We have put in place mechanisms to ensure that as we increase the minimum wage over time, we do so in a way that meaningfully reduces poverty and inequality and contributes to the inclusive growth of our economy. All social partners recognise that at its introduction, the national minimum wage will be less than what we consider to be a living wage.
“The social partners also agree that it must be our firm determination to move as quickly as possible to a living wage. To do this, we need to grow our economy, improve levels of productivity, develop the skills of our workforce and create jobs on a far greater scale,” he said.