NEW “GROWTH PLAN” FOR SA

Growing the economy and creating jobs is the clear directive of the Economic Sectors and Employment Cluster which recently briefed the media on the areas identified as having the greatest potential to deliver on these challenges.

Science and Technology Minister, Naledi Pandor, indicated that the Cluster had identified eight areas that would feature in this growth plan:

• Implementation of Phase II of the Framework Response to the international economic crisis – aimed at accelerating the recovery of jobs and economic growth.  This would, amongst others,  include the acceleration of the Training Lay-off Scheme intended to minimise job losses and to facilitate re-training of workers to improve their skills, and the intensifying of the campaign to clamp down on illegally imported products to safeguard local industries and consumers;
• The implementation of the second Industrial Policy Action Plan (Ipap2) would put manufacturing, services and other productive sectors as the engine of sustainable growth;
• Minister Pandor also indicated that science and innovation was critical for South Africa’s long-term competitiveness.  As a result, in the 2010 Medium Term Economic Framework, government would intensify its emphasis on innovation in five identified areas of research – biotechnology; information and communication technology and electronics; biocomposite materials; renewable energy, titanium beneficiation, high-value chemicals, advanced batteries, agro-processing and high-value agricultural products would be pursued;
• Another focus area was the creation of “green” jobs and the expansion of a green economy.  It was indicated that the Cluster would finalise a green economy plan to be presented to Cabinet by July;
• A further area of focus was rural development and agro-processing.
  A job creation model had been developed to ensure that one person for every participating household was trained and placed on a two-year employment contract;
• The Cluster would leverage the public sector for employment and creation of employment opportunities. It would continue implementing public sector employment programmes such as the second phase of the Expanded Public Works Programme.  It was estimated that two-million job opportunities could be created in this way by 2014;
• Enterprise development was another area that would assist in the creation of jobs. It was acknowledged that SMMEs play a critical role in the creation of jobs and innovation, hence support for them would continue to be a strong focus.  A new cooperatives model would be developed to strengthen support given to cooperatives - both financial and nonfinancial. This would include the establishment of the Cooperatives Development Agency; 

A critical area identified was the needs to improve income generation and quality of production of enterprises in the informal economy;

• The final focus area was tourism. The tourism sector was seen as an essential contributor to gross domestic product (GDP) growth, creation of decent work and job opportunities and the Cluster would aim to diversify the tourism industry to include corporate tourism.
  

The Cluster would also coordinate work in other areas which are believed to hold great potential to deliver positive employment outcomes, including opportunities in mining, mineral beneficiation and agriculture.  The Cluster intends to finalise all elements of this Growth Path for consideration by Cabinet during the mid-year Cabinet Lekgotla.
(Source: Media release issued by Government Communications (GCIS) on behalf of the Economic Sectors and Employment Cluster)