The initiative fully supports the South African government's Accelerated and Shared Growth Strategy aimed at placing the economy on a more rapid and sustained growth trajectory.
The government re-emphasised early this year the need to attain substantially higher and sustainable rates of economic growth, at around 6% per annum over the medium- to long-term, in order to halve unemployment by 2014 and visibly reduce poverty across the country.
Substantially higher levels of fixed investment are required to achieve these goals, with the investment-to-GDP ratio having to increase from the current levels of 16.5% (2004) to at least 25% of GDP.
It is estimated that more than 400 000 new jobs must be created on a yearly basis in order to reduce unemployment by 50% over the next 10 years. This can only be achieved by raising the economy's labour absorption capacity. Indeed, South Africa's unemployment challenge can be tackled successfully through increased and sustained private and public sector investment spending.
The IDC Board approved R1 billion for the rollout and implementation of five new development financing schemes - the Pro SME Jobs Scheme, the Pro Franchising Scheme, the Pro Orchards Scheme, the Pro Forestry Scheme the Pro BEE Expansionary Acquisitions Scheme.
