CAPE TOWN.
President Jacob Zuma announced the creation of US$1,2-billion job creation fund yesterday as he used a state of the nation speech to tackle rising criticism about South Africa’s rampant unemployment.
Despite its status as the continent’s economic powerhouse, South Africa has struggled to transform living standards since the 1994 fall of the whites-only apartheid regime and more than one in three people remains without work. Zuma’s rise to power within the governing African National Congress was largely based on his pledge to help the poor and in his speech before parliament in Cape Town, he acknowledged that more needed to be done.
“We are concerned that unemployment and poverty persist despite the economic growth experienced in the past 10 years,” Zuma said in his speech.
“We are pleased to announce the establishment of a jobs fund of R9 billion (US$1,2 billion, 910 million euros) over the next three years to finance new job-creation initiatives.”
The official unemployment rate fell from 25,3 percent to 24 percent between the third and fourth quarters of 2010, but if the long-term unemployed are included alongside active jobseekers that figure rises to 36 percent.  The government has pledged to create five million jobs and cut unemployment to 15 percent within a decade. Zuma said progress had been made in rolling out houses, electricity and water but that many South Africans were still in need of such basic services.
“Indeed, we agree service delivery should move faster,” he said, responding to input from a Facebook user.
“Our goal is clear. We want to have a country where millions more South Africans have decent employment opportunities, which has a modern infrastructure and a vibrant economy and where the quality of life is high.”
The government has declared 2011 as a year of job creation through a new growth path and Zuma said the private sector will be looked upon to help the state create most of the jobs.
In addition to the new jobs fund, the country’s Industrial Development Corporation will invest R10 billion over the next five years in economic activities with high jobs potential, he added.
Zuma’s speech came on the heels of a new survey that found falling public support — from 77 to 62 percent over the course of a year — for his leadership in the run-up to local government polls due later this year.
“South Africans are now saying that the government has had time to show what they are made of and the public is not impressed with what they see,” said Anneke Greyling of Ipsos Markinor, which conducted the poll.
Lawmaker Mandla Mandela, whose iconic grandfather Nelson Mandela was South Africa’s first democratic president, said sustainable jobs must be a priority.
“A lot of South Africans have been living under a high margin of unemployment and they are looking for opportunities,” he said.
Zuma also announced R20 billion in tax breaks targeted at the manufacturing sector, with qualifying new projects needing to invest R200 million or R30 million if carrying out investments and upgrades.
He said the state was pleased with the performance of South Africa’s financial sector, with the budget deficit set to drop from 6,7 percent to between three and four percent by 2013.
While stopping short of mentioning controversial calls by his ruling party’s youth to nationalise the key mining industry, Zuma said that the country’s mining assets, worth US$2,5 trillion, belonged to all South Africans.
“The mineral wealth of our country is a national asset and a common heritage that belongs to all South Africans, with the state as the custodian,” he said.
Zuma also gave a nod to South Africa’s rising profile, saying a non-permanent seat on the United Nations Security Council would be used to promote African interests. — AFP.

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