NDP framework to create more jobs

Pravin Gordhan. Image: GCIS

He said employment was expected to expand by a rate of only 1.7%, but there were several other projects that were underway to contribute towards economic stability and job creation.

Delivering the Medium Term Budget Policy Statement in Parliament, he said: "Rail capacity is being expanded to support manganese and coal exports. Over the next 12 years, we will replace more than 300 trains for the two million people who use Metrorail every day."

He said tax incentives for industrial development projects amounting to R10bn have been approved over the past three years and these are expected to draw investments worth about R35bn.

"To support job creation in special economic zones and for young work seekers, a revised Employment Tax Incentive Bill will formally be introduced in Parliament. This forms part of the multi-pronged approach to expanding work opportunities, especially for young people, as envisaged in terms of the national youth accord."

Through collaboration with business, labour, civil society and state-owned entities, government will roll-out numerous economic packages that are guided by the NDP framework to reduce the cost of doing business, create investor confidence and create more jobs.

Gordhan said plans were underway to deal with lack of skills and joblessness and measures include, among others, tax allowances for learnerships until they reach the required skills levels.

An Industrial Policy Action Plan has been proposed as a framework for special economic zones and tourism promotion efforts aimed at boosting employment and income generation.

"The Jobs Fund has already allocated R3.4bn to 65 projects that are projected to create 90,000 permanent jobs and about 100,000 trainining opportunities over the next three years," he said.

Gordhan said an employment incentive proposal has been tabled to stimulate youth employment and share the costs of job creation in special economic zones and targeted industries.