Share

Zuma: New jobs fund, tax breaks

Johannesburg - President Jacob Zuma on Thursday announced the establishment of a jobs fund of R9bn over the next three years to finance new job-creation initiatives.

In addition, the Industrial Development Corporation (IDC) had set aside R10bn over the next five years for investment in such economic activities with a high job creation potential, he told parliament in his third state of the nation address.

"It is also my pleasure Honourable Members, to announce R20bn in tax allowances or tax breaks to promote investments, expansions and upgrades in the manufacturing sector," Zuma said.

For a project to qualify, the minimum investment should be R200m for new projects, and R30m for expansion and upgrades.

Merger may save money

The programme would provide an allowance of up to R900m in tax deductible allowances for new investors and R550m for upgrades and expansions.

Zuma said the small business sector was a critical component of the job creation drive.

"We will continue to provide financial and non-financial support to small, medium, and micro enterprises (SMMEs), small scale agriculture as well as cooperatives.

"We need to cut administrative costs, avoid duplication and direct more resources to small business," he said.

Therefore, consideration was being given to merging the three agencies Khula, the SA Micro-Finance Apex Fund and the IDC's small business funding into a single unit.

The programmes of state owned enterprises and development finance institutions should also be more strongly aligned to the job creation agenda.

Research had indicated that jobs could be created in six priority areas.

These were infrastructure development, agriculture, mining and beneficiation, manufacturing, the green economy and tourism.

Turning to mining, Zuma said the government would make it a priority this year to adopt a beneficiation strategy "so that we can start reaping the full benefits of our commodities".

Other priorities included giving a third of the 1.2 million households living in informal settlements security of tenure within the next three years.

"By the year, 2014, 400 000 of the said households should have security of tenure and access to basic services."

Zuma acknowledged that service delivery needed to be speeded up and, in a first, cited angry complaints citizens had posted on government's Facebook page.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.98
-0.2%
Rand - Pound
24.14
-0.1%
Rand - Euro
20.63
-0.2%
Rand - Aus dollar
12.39
+0.2%
Rand - Yen
0.13
+0.3%
Platinum
911.88
-1.3%
Palladium
1,019.74
-4.3%
Gold
2,160.25
-0.0%
Silver
25.10
+0.3%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders