Fin24

ANC wants pension funds to aid with jobs

2011-11-24 14:56

Cape Town - The ANC is looking at ways to finance its efforts to boost jobs in agriculture and mining, which may include getting pension funds to buy more bonds, the head of its economic transformation committee said on Thursday.

South Africa has lost more than 1 million jobs since the start of 2009 - its first year in recession since 1992 - and the country is unlikely to reach the 7% economic growth seen as needed to bring that down significantly. The National Treasury has cut its growth forecast for 2011 to 3.1%.

The financing proposals, including one looking at incentives and penalties aimed at strengthening the key mining industry, are contained in a draft paper to be debated next week by the ANC’s national executive committee.

“We are not talking specifically about an export levy on raw minerals. What we are looking at is a carrot and stick approach to encourage investment in mineral beneficiation” or processing, Enoch Godongwana said on Thursday.

He did not give details of the penalties and incentives being contemplated, however, saying this needed to be debated first.

Mineral processing is a key aspect of South Africa's new growth path policy aimed at creating 5 million more jobs by 2020 in the world’s top platinum and major gold exporter, where unemployment remains at around 25% of the workforce.

Godongwana told Reuters separate research into how best the state can intervene in the mining sector, which comes amid recent nationalisation rhetoric, will be used to augment the draft economic proposals affecting mining.

Investments from pension funds

He added that the ANC was not looking to compel retirement funds and insurers to buy state-owned companies' bonds, although this was an option.

“It is not about forcing them to buy bonds, but rather to have a way for (state-owned enterprises) and finance development agencies to work closer with (pension) funds. It may well be that they end up buying bonds, but we have not decided on the kind of (financing) instrument,” he said.

State-owned enterprises such as Eskom and Transnet, which regularly offer bonds, are investing billions of rands to upgrade infrastructure and meet fast-rising power demand.

The Government Employees Pension Fund, Africa’s largest retirement fund with about R700bn under management, told Reuters last year it would consider buying bonds via the Public Investment Corporation (PIC), which manages the fund.

The PIC has stakes in many of South Africa’s largest companies, including cellphone operator MTN Group [JSE:MTN]. 

Comments
  • Hubbles - 2011-11-24 15:09

    Hello hello , is this the tax for pension funds/ra's provident funds they spoke abput earlier?

  • Sinudeity - 2011-11-24 15:12

    They have stolen all the other money and now need to get their grubby little paws on the last little bit we may have saved. The End.....

  • Sinudeity - 2011-11-24 15:14

    YES

      LBS - 2011-11-24 15:17

      NOOOOOOO !!!!!!

  • LBS - 2011-11-24 15:14

    So now they want to force us to invest in State-owned Companies, which are all going down the drain with lack of experienced staff and corruption! Your Pensions are not even safe no more.

      Walter - 2011-11-24 15:20

      Zuma must follow up his speech about "SA not becoming a welfare state", cut out all these hand-me-outs to the so-called unemployed and unmarried mothers and create jobs, NOT look for further sources of funding from pension funds. This will be a disaster!

      LBS - 2011-11-24 15:28

      One can just imagine what will happen to the value of our pension funds if they start with this nonsense.

  • jordaanjean - 2011-11-24 15:27

    Why does the headline not read " ANC want pension funds". That is essentially what they want. The pension funds of everyone in the country. Not really do anything with it. Just take it.

  • PilgrimX - 2011-11-24 15:40

    "incentives and penalties" Does this mean that the goose gets an incentive to lay and a smack on the head if it does not? Oh, I can already count the pensioners' ribs. Future news headline: "Pensioners hijack cash in transit van"

  • ttdejager - 2011-11-24 15:47

    Who else think this is a bad idea? Haven't they raped our country enough? This money is going one place top dog pockets!

  • Collitjies - 2011-11-24 15:55

    Want to create more and more jobs, then disband the unions that strike for the least little thing. For a business to run at a profit then expand and create more jobs a strike even for a few days seriously bites into their profit and production margins.

  • Nuck Choris - 2011-11-24 15:58

    "ANC wants pension funds to aid with jobs" And I want a Ferrari. Now who wants to bet that I will have my Ferrari before the ANC policies create any meaningful employment that comes close to their promises. Its all pie in the sky you see.

  • Dale - 2011-11-24 15:58

    The headline should read: "ANC seeks other means of stealing our money."

  • Gregory Jurgens - 2011-11-24 16:05

    Stop wanting and taking and start delivering .

  • Rob - 2011-11-24 16:12

    Job Creation now with "pension funds"??? If Govt. officials stop stealing, abusing , wasting taxpayers money then there is more than enough for GOVT. to ACTUALLY do their part and KEEP the PROMISES MADE with every election. But alas, this gravy train of taxpayers money just grows longer by the day and only has Govt. Officials as passengers.

  • Transkie Sun - 2011-11-24 16:25

    SARS what do you actually do?

  • KCorsar - 2011-11-24 18:03

    Hang on now, on one hand there is a desire to nationalise mining and now we have to have our pension investment channeled into these 'threatened' industries - if my pension administrators buy into this cockeyed plan I bitterly disappointed. The Pension funds should really shake up the ante here and refuse to consider this unless they have an ironclad assurance that there will be no further discussion on nationalising assets of any kind.............their laws and changes have wrecked agriculture with perfectly good high yiled farms being turned over to ill equipped and inadequately skilled persons........PENSION FUNDS STAY AWAY!!!

  • Ben Spreeth - 2011-11-24 18:46

    This is not a responsibility of pension funds. They have one responsibility and that is towards their members. Do they now want to re-invent the wheel or dont they know anything about economics? A very stupid idea. Dont some people ever learn.

  • lizards - 2011-11-24 21:05

    So that they can loot those too as they have Govt funds. Hopefully more control and final accountability. Like going to jail until they pay back what they stole. Otherwise we will have a lot more pensioners without again ala Brown et al.

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