High expectations for SONA

Thursday, February 9, 2012

Pretoria - Predictions are high that President Jacob Zuma will highlight government interventions to address the challenge of creating decent jobs when he delivers his State of the Nation Address (SONA) this evening.

Political analyst Ralph Mathekga said even though he did not expect the President to make big announcements around alleviating the challenge of job creation in South Africa, he did, however, expect emphasis to be placed on the mechanisms government would employ to address the challenge.

"I ... expect to see emphasis on the importance of job creation, and the importance of the Expanded Public Works Programme (EPWP) in dealing with this."

During last year's SONA, the President announced a R9-billion jobs fund to finance new job creation initiatives and said government would set aside R20 billion in tax allowances or tax breaks to promote investments.

Business Unity South Africa (Busa) said business expected the Address to give a comprehensive platform on which business, government, labour and community can continue to position South Africa on a higher, more inclusive and job-rich growth path.

The Congress of South African Trade Unions said it was looking forward to the speech, saying it expected the President to focus on the five priority areas of health, education, rural development, safety and security and job creation.

With regards to the high unemployment rate among the youth, COSATU said it hoped Zuma's address will contain good news on progress in implementing the plans contained in the New Growth Path and Industrial Policy Action Plans.

"These plans - restructuring the economy from one dominated by mining, heavy chemicals and finance, to one that is labour-absorbing and environmentally sound - remain the key to reaching the government's goal of creating five million decent, sustainable jobs by 2020.

"In particular we hope to hear concrete measures to expand the manufacturing industry, and the beneficiation of our own resources. These must include substantial cuts in interest rates and the depreciation of the rand to encourage new investment in job-creating industries, and to make South African exports globally competitive," said the trade union in a statement.