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4m work opportunities target ‘a conservative estimate’

17th June 2009

By: Terence Creamer
Creamer Media Editor

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A total of R4,1-billion would be spent between now and the end of March 2012 on an expanded public works programme (EPWP) fiscal incentive to support infrastructure projects funded by provinces and municipalities, Public Works Minister Geoff Doidge reported on Thursday.

Delivering his Budget Vote in South Africa's National Assembly, the Minister indicated that R465-million had been set aside during the current fiscal year and that the amount would rise progressively over the three-year period of Medium Term Expenditure Framework.

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The incentive was central to the second phase of the EPWP, which was aiming to create four-million work opportunities for unemployed citizens by 2014, with an immediate target of creating 500 000 work opportunities by December.

The so-called "EPWP II" was officially launched on April 4 and followed on from the first EPWP, which facilitated the creation of 1,4-million work opportunities as against a target of one-million.

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South Africa's new President Jacob Zuma highlighted the programme as a key mitigation response to the current global and national recession in his recent State of the Nation address.

But his assertion that four-million job opportunities would be created by 2014 was treated with much scepticism, given the fact that South Africa's slowing economy was shedding jobs, especially in the resources and manufacturing sectors.

In fact, the economy, which descended into its first recession in 17 years during the first quarter of 2009, reported a rise in unemployment figures to 4,2-million people, or 23,5% of the economically active population.

However, Doidge described the figure as a "conservative estimate", indicating that most of the work opportunities, which would not be permanent jobs, would be associated with construction programmes.

"Our country is rolling out the biggest infrastructure development programme in the developing world, so the infrastructure sector of the programme is again positioned to contribute more jobs, in excess of 2,3-million, followed by the environment and the culture sector at 1,1-million and the social and the nongovernment sectors together yielding more than 1,3-million jobs," the Minister said.

He added that protocol agreements on the four-million job target, with clear targets for each province and municipality, would be signed with all premiers and mayors.

Overall, during 2009/10, the public works department would manage an allocation of R5,2-billion, of which R1,2-billion had been allocated to capital works programme.

 

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