Representatives of government's new jobs fund will invite proposals from the private sector for projects that can create self-sustaining employment, President Jacob Zuma said on Thursday.

It would also canvass municipalities and State agencies for ideas that could create jobs, he said in his reply to the debate on his state of the nation address.

Zuma announced the R9-billion fund last week, as part of a range of measures designed to achieve the state's target of creating five-million new jobs by 2020. It also includes the Industrial Development Corporation (IDC) investing R10-billion in projects with job growth potential over the next five years.

On Thursday, he said the IDC initiative was already on track.

"As we speak, officials from the IDC are assessing options for supporting investment in more labour-intensive industries."

Zuma said government would not lose sight of the need to "create decent work" or of black economic empowerment (BEE) goals as it steps up the fight against unemployment, hovering around 25%.

"We need to ensure that transformation does not fall by the wayside as we forge ahead to build our economy and create much needed jobs."

The Black Economic Empowerment Advisory Council, set up last year and chaired by Zuma, has made a range of policy recommendations on economic empowerment that would be taken to Cabinet.

"These address issues such as BEE fronting, refinement of the codes of good practice, regulation of the verification industry, as well as aligning our policies on B-BEE with policies on preferential procurement."

Zuma said he agreed with veteran ANC MP Ben Turok's caution against "so-called equal opportunity policies whose outcomes are usually the continued affirmation of the advantaged".

He lamented the fact that "ten years after the introduction of the Employment Equity Act, white men continued to hold 63% of top management positions in the private sector".

"African women are at less than 3% and coloured and Indian women are at 1% each. We need to work harder to close the gap."

The president lashed out at those who had criticised him for linking himself to Nelson Mandela's legacy in his address, saying those in the ANC had fought against apartheid alongside the former president and had a right to cite his ideas.

"Don't be jealous if we quote him."

He also rejected Cope founder Mosiuoa Lekota's complaint that he had failed to provide enough detail of government's plan in his third state of the nation address.

He reiterated that this was the task of ministers, but went on to cite specifics, including plans to improve 3 600 schools by 2014.

Zuma said government would continue to debate and refine policies, notably on job creation, but was committed to getting down to work.

"But 2011 will be a year of action. We will not delay progress."

In a rare reference to his predecessor, Zuma congratulated former president Thabo Mbeki on his role as African Union mediator in Sudan.