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Johannesburg - Many countries around the world, including
SA, continue to face a great deal of uncertainty as the global economy adjusts
after the recession, according to Deputy Finance Minister Nhlanhla Nene, who
was addressing a sugar industry trust fund function about education on
Wednesday.
While SA had grown at a stronger rate in the first quarter,
the foundations of such growth were not yet sustainable, and were still highly
dependent on support from expansionary fiscal and monetary policies, Nene
noted.
Unemployment represented government's greatest challenge, Nene said, adding that the government was focusing strongly on this in its New Growth Path, which aims to create five million jobs across key sectors of the economy over the next 10 years.
"Our preliminary estimates suggest that more than a
million jobs could be created in infrastructure development and housing. A
further 500 000 would be created in the agricultural sector and 350 000 in
manufacturing. Tourism is targeting 225 000 jobs and mining 140 000," said
Nene.
Nene said government's plans would work only if an
environment conducive to private-sector growth and business investment was
promoted. For this, the government would have to provide economic stability and
reduce the cost of capital through sound macroeconomic policies.
The local sugar industry was also important, according to
Nene, as it generated an annual estimated average direct income of R8bn based
on revenue generated through sugar sales in the Southern African Customs Union
region as well as world market exports.
The sector employs about 77 000 people, while indirect employment is estimated at 350 000 jobs.
