Jobs by a million, rands by the trillion

Lavish promises for sluggish economy and unemployment

● The ANC yesterday unveiled a plan to create 275,000 jobs every year, a promise it will take to voters as it seeks a mandate to govern for another five years.

President Cyril Ramaphosa also promised to raise R1.2-trillion in new investments over the next four years.

These promises were contained in the party’s manifesto, launched at the Moses Mabhida Stadium in Durban yesterday.

During the week, party leaders revealed that their manifesto would respond to complaints about rising unemployment. Ramaphosa promised that the party would create 1.3-million jobs in the next five years.

The manifesto says the ANC will achieve this by “boosting local demand for goods, investing more in mining, manufacturing and agriculture, and expanding export markets”.

In 2014, the ANC promised to create 1-million opportunities over five years, but employment data has shown an increase in unemployment, which sits at 27%.

“We will ensure that we not only create new jobs, but work hard to protect existing jobs,” the manifesto reads.

The manifesto also notes that the party will set bold but achievable targets for youth internships.

While this is not explained in detail, the ANC says it will prescribe a minimum percentage of internships for young people in the public sector.

The Spectator Index released this month showed that SA has the world’s highest youth unemployment, at 52.8%.

In his address yesterday, Ramaphosa said: “Addressing youth unemployment remains a pressing priority.”

On the campaign trail this week, Ramaphosa told business leaders in Pietermaritzburg that the government needed them to play a meaningful role in creating jobs.

This found expression in the manifesto as the document says there is a need for creating a “social compact with business and organised labour” to work together to meet these objectives.

While Ramaphosa’s presidency has increased confidence in the government from the business sector, his popularity alone will not be enough to sustain the ANC’s huge job creation plans.

“We will build a social compact on infrastructure investment with business and organised labour to build more and better infrastructure. These investments will boost faster economic growth and improve the lives of many South Africans,” Ramaphosa said.

The party also promised to create an infrastructure fund to “finance key economic and social infrastructure projects”, but has not explained where that money will come from.

Speaking to the KwaDambuza community in Pietermaritzburg on Thursday, the President said jobs would be created by securing new investments in the country.

The government now has four years to raise R1.2-trillion in investments.

“We are within reach of our target. These investments will help diversify the economy in sectors like mining, forestry, manufacturing, telecommunications, transport, energy, water, agro-processing, consumer goods, pharmaceuticals, infrastructure and financial services,” the manifesto reads.

The ANC is also committed to establishing a sovereign wealth fund that will invest in strategic sectors of the economy.

Other efforts to boost the limping economy include reducing the cost of data, directing at least 30% of the government’s procurement spend to small businesses and cooperatives, and accelerating land reform in an effort to provide greater support for emerging commercial farmers.

The ANC has also decided that it should apply targeted tariffs and non-tariff measures where necessary to protect and incentivise industries such as agriculture and manufacturing.

“Too many of our people are without decent jobs. Our plan is to draw more South Africans, particularly youth and women, into decent employment and self-employment. Much work still needs to be done to promote decent work,” the manifesto says.

Too many of our people are without decent jobs. Our plan is to draw more South Africans, particularly youth and women, into decent employment ANC election manifesto Revealed at the party’s January 8 celebration at Moses Mabhida Stadium in Durban yesterday