The Jobs Fund, administered by the Development Bank of Southern Africa (DBSA), issued a Second Call for Proposals on 31 March 2012. The Private, Public and Non-Governmental sectors are invited to submit their most innovative ideas to address South Africa’s high level of employment. Read more...
Job creation remains a central priority of government, Minister of Finance Pravin Gordhan said in the Budget Speech for 2012. He provided an additional R4.8 billion over the 2012 MTEF period for the expanded public works programme, bringing its allocations to a total of R77.8 billion.
- The community work programme received an additional R3.5 billion, which gives it a total of R6.2 billion, enabling the number of people employed to increase to 332 000 in 2014/15 from 90 000 in March 2011.
- Working for Water and Working on Fire received an additional R1.1 billion (a total of R7.7 billion) providing for a total of 135 000 jobs over the medium term.
- The non-state sector programme received an additional R345 million (a total of R1.1 billion).
- The National Rural Youth Service Corps received an additional R200 million (a total of R900 million) over the next three years.
- R300 million was added to the arts and culture sector for job creation.
Looking back on 2011 in his State of the Nation Address on 9 February 2012, President Jacob Zuma said that the results of the jobs drive were encouraging, although South Africa was not out of the woods yet, given the global economic situation.
In Government’s Year of Delivery 2011/12, produced to coincide with the State of the Nation Address, Government looks back at the achievements regarding job creation.
The National Development Plan, released on 11 November 2011, proposes the creation of 11 million more jobs by 2030, among others by expanding the public works programme, lowering the cost of doing business and costs for households and helping match unemployed workers to jobs.
The Development Bank of Southern Africa announced on 8 November 2011 that the Jobs Fund Investment Committee has approved a total of R352 million employment creation projects.
In the mid-year Lekgotla of 26 - 28 July 2011, Cabinet adopted a 12 point implementation plan on job creation, within the ambit of the New Growth Path. This does not mean that other programmes will be halted. These areas are being singled out because they are urgent and effective.
The Department of Trade and Industry has approved grants worth R157 760 000 for the business process outsourcing incentive scheme in September 2011. The grants will be disbursed to ten projects over the next three years and will create more than 11 000 jobs.
Background
President Jacob Zuma announced in the State of the Nation Address for 2011 that all government departments will align their programmes with the job creation imperative. The provincial and local government spheres were requested to do the same, and 2011 was declared a year of job creation through meaningful economic transformation and inclusive growth.
The 2011 Budget proposed a range of measures to accelerate employment creation over the period ahead, including R9 billion that has been set aside over the next three years for a Jobs Fund to co-finance innovative public- and private-sector employment projects.
The Presidential Job Summit on 18 March 2011 created an opportunity to explore the role that the business sector can play in achieving key deliverables of government’s job creation plans.
This was followed by a Presidential Labour Summit on job creation on 19 April 2011. The parties involved agreed to take these issues forward. In the first phase of discussions, the focus will be on immediate deliverables that can be rapidly implemented, and to lay the basis for deeper dialogue on the systemic and structural issues that would need to be addressed to achieve the goal of five million new jobs by 2020.
In the State of the Nation Address for 2011, President Zuma said that research had indicated that we could create jobs in six priority areas: 
- infrastructure development
- agriculture
- mining and beneficiation
- manufacturing
- the green economy
- tourism.
Government initiatives
- Government established a jobs fund of R9 billion to finance new job-creation initiatives over the next three years.
- The Industrial Development Corporation has set aside R10 billion over the next five years for investment in such economic activities with a high jobs potential. This is done through its Gro-E Scheme.
- R20 billion in tax allowances or tax breaks will promote investments, expansions and upgrades in the manufacturing sector. For a project to qualify, the minimum investment must be R200 million for new projects, and R30 million for expansion and upgrades.
- Government will continue to provide financial and non-financial support to small, medium, and micro enterprises (SMMEs), small scale agriculture as well as cooperatives.
- Government is considering merging the three agencies Khula, the SA Micro-Finance Apex Fund and the IDC’s small business funding into a single unit. This will cut administrative costs, avoid duplication and direct more resources to small business.
- The campaign to pay SMMEs on time, within 30 days, is proceeding well. The Department of Trade and Industry payment hotline (0860 766 3729) received about 20 000 calls in the 2010/11 financial year, and the value of payments facilitated was R210 million. Other departments have launched their own initiatives, for example the Re Ya Patala (We Pay) initiative of the Department of Public Works (0800 782 542).
- In communications, television and radio signals will be converted from the analogue platform to the more advanced digital signal which will enable quality pictures and sound. This process will create jobs in manufacturing, packaging, distribution and installation.
- The bid to host the Square Kilometre Array radio telescope has already provided 800 construction job opportunities in the Northern Cape and will create a further 100 jobs in 2011/12.
- Through the combined programmes of business support, enterprise financing and labour intensive activities in the social sector, 1 355 new jobs were facilitated by the National Youth Development Agency (NYDA) in 2011/12. A total of 2 039 young people were enrolled on the matric rewrite project and close to 5 000 were provided with career guidance.
- The Department of Public Works has set aside R210 million to hire and train unemployed people to fix potholes, build low bridges and maintain public garden spaces following the recent floods across the country.
- Government has put President Jacob Zuma’s job-creation plans into action by announcing the creation of 120 000 permanent jobs in infrastructure development. The organisations that have been earmarked to create jobs include Eskom and the departments of water affairs and of environmental affairs.
- The Department of Transport will create 70 000 jobs in a R6,4-billion project to repair potholes. The project is part of a new labour-intensive road-maintenance programme called S'hamba Sonke (walking together). A total of R22,3 billion will be spent between February 2011 and April 2014.
- Initiatives are under way to promote rural employment, such as the National Rural Youth Service Corps (NARYSEC), and provide stepped up support for agricultural producers.
- Funding has been allocated in the 2011 budget for renewable energy, environmental protection and "green" economy initiatives.
- Details of a R5 billion youth development subsidy are set out in a discussion paper, Confronting youth unemployment: policy options [PDF].
- The Community Work Programme (CWP) is an innovative offering from government to provide a job safety net for unemployed people of working age. This programme created more than 79 000 work opportunities up to the second quarter of 2011/12, benefitting women and the youth particularly from the poor rural families. In addition, the Human Settlements Programme created over 50 000 direct jobs, 4 653 indirect jobs and 21 446 induced job opportunities.
- The Minister of Labour approved various initiatives aimed at creating employment through training and re-skilling of workers in order to give them capacity to compete in the open economy.
- Productivity South Africa’s social plan. Funds were committed in this financial year towards the Social Plan with the aim of saving a further 20 000 jobs.
- Funding for the training of the Unemployed scheme. The scheme is aimed at developing skills in specific artisan trades with a view to trainees being eventually employed and possessing scarce skills. The training for the Unemployed scheme is done in partnership with the various sector education and training authorities (SETAs).
Government programmes supporting job creation
- Expanded Public Works Programme (EPWP) - provides poverty and income relief through temporary work for the unemployed. EPWP includes the Home-Based Community Care and Food for Waste Programmes.
- The New Growth Path (NGP) - aimed at enhancing growth, employment creation and equity.
- Small Business Development provides support for small, micro and medium businesses
- The Contractor Incubation Programme (CIP) supports small contracting enterprises.
- Automotive Development Programme - Government support for the automotive industry.
- Customised Sector Programme for the clothing and textile industry.
- Business Process Outsourcing (BPO) - Government Assistance & Support Programme includes marketing, easy entry into SA for the expansion of existing BPO operations, skills development.
- National Industrial Participation Programme supports the development of the South African industry through government procurement.
- Competitive Supplier Development Programme (CSDP) aims to increase the competitiveness, capacity and capability of the local supply base.
- Small Enterprise Development Agency (Seda) supports the growth of small business.
- Finance for Small Businesses
- Working for Water - eradicates invasive alien vegetation to conserve water and the environment, providing jobs and training to approximately 20 000 people per annum.
- Working on Fire is a multi-partner organisation focused on integrated fire management and veld and wild fire fighting, combined with the need to create jobs and develop skills.
- Working for Wetlands uses wetland rehabilitation as a vehicle for job creation, skills development, and the wise use of wetlands.
- Small Medium Enterprise Development - a grant programme offering financial help to tourism-related projects.
- Tourism Enterprise Development - a grant-making, training and on-going assistance programme.
- The South African Decent Work Country programme - through this programme, the International Labour Organisation and government, organised business, organised labour and the community constituency give support to initiatives aimed at promoting the decent work agenda.
What does government say about job creation?
Documents
National Development Plan 2030, 11 November 2011
Framework of the New Economic Growth Path, 23 November 2010
Government delivery:
Skills Development Act, [No. 97 of 1998], G 19420, 2 November 1998
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Last modified: 03 April 2012 09:33:05.
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