Summary of Jobs Summit Declaration

(The Jobs Summit was held on 30 October 1998)

The constituencies in NEDLAC have engaged intensely over the last months and resolved to act in concert to create jobs, stable and fair industrial relations, respect for worker rights and sustainable growth and development. A wide range of views have been heard through public submissions and hearings, and these have been taken into account as far as possible.

The outcome of the hearings on poverty earlier this year provided a detailed insight into the current plight of the poor and unemployed, and the release of the 1996 Census once again highlighted the severity of income inequalities and the extent and depth of poverty. These inequalities still coincide, in the main, with the race and gender of our citizens.

In the early years of our transition we face the real threat of a deep global crisis, which reconfirms the need for us to continue on our path of restructuring and strengthening our economy to promote growth, investment and sustainable development.

Our intended actions range from the macro economy to national programmes to very detailed pilot projects. We have agreed on processes, programmes and specific projects where many parties will act in concert, co-operate or contribute to the common purpose. In some cases we have indicated our intent and our hopes. Taken together we have declared our will to act for job creation.

We harbour no illusions about the difficulties ahead of us as we strive to succeed in this collective endeavour. Each and every one of us must be part of this work. It is not the work of the government or any one social partner alone. Through a commitment to work; dedication to learning and the acquiring of skills; spending and saving wisely; using our imagination; exhibiting entrepeneurship and by our disciplined consideration of the greater good; each of us can make our personal and collective contribution to the building of this new vibrant economy.

The hardship, pain and suffering of those unemployed and in poverty are and indictment on our society. The human rights we have enshrined in our Constitution must be translated into the same human dignity of each one of us as economic citizens. Special steps are required to alleviate the plight of those trapped in poverty.

The road to creating jobs and fighting poverty will not be paved with false promises, but with the determination of our vision and the sweat of our collective endeavour. At the heart of this process is growing the economy to create much-needed jobs, sustain employment, alleviate poverty and reduce inequalities.

The primary objective of economic policy is to promote growth and development in order to create jobs, sustain employment, alleviate poverty and reduce inequality. In doing this we seek to provide a better life, with improvement over time, for all our people. In pursuing these objectives government has to develop and implement a wide range of economic and social programmes. These basic programmes are set out in the Reconstruction and Development Programme (RDP), which is a product of the democratic decisions of the South African people. The success of the RDP requires that we are able to carry out a wide range of structural reforms in both the economic and social dimensions of our economy. Most of the reforms outlined in the RDP are underway.

The government’s aim in introducing the Growth, Employment and Redistribution (GEAR) programme was to achieve macroeconomic stability through a range of structural changes in the economy. However, there have been real differences over the question of macroeconomic policy and its potential effects.

The GEAR strategy has been a matter of contention. In preparing for the Jobs Summit there were open, frank and detailed discussions on this issue between the NEDLAC parties and within the political arena. The approach taken in these discussions has been to focus on how to go forward rather than to achieve endorsement of GEAR by all parties. We sought, through discussion, to reach agreement on how we could achieve real growth, development, redistribution and employment creation.

The parties are in agreement on the conditions needed to establish the underlying credibility of a policy programme, the appropriate outcomes of macroeconomic policy and the areas that they will now work on together to establish necessary and required adjustments in the light of the current circumstances.

The credibility of macroeconomic policy is enhanced if it is sustainable, stable and successful and enjoys a broad support in society. No group in our society can be allowed to perceive, or in fact experience, that they carry the full burden of the costs and enjoy none of the benefits of this reform.

The basic structural objectives of the RDP remain critical for the successful transformation of the economy. Structural changes already achieved have clearly strengthened the economy and made it more resilient in the face of external pressures. However, evaluation and carefully considered adjustment are essential, especially as we may be facing a particularly serious international crisis.

It is agreed that the GEAR projections on growth, interest rates and employment will not be met in the time frames that were set out. Adjustments to address this are necessary, and detailed work will be done to address these changed circumstances, whilst retaining the coherence and strength of our policy.

The agreements, commitments and statements of intent that follow relate to areas other than the macro economy along, but they constitute the first major steps to effect these corrective adjustments to address the current situation. They include:

• Agreements on industrial policy measures and programmes to directly address unemployment and increased investment.
• A detailed agreement to enhance the delivery of housing and to increase the amount of rental stock available.
• A number of agreements that deal with human resource development in the form of training, education and targeted programmes for youth, women and the disabled.
• Agreements in regard to the operation of the labour market.
• The government has set out the Special Employment Programmes that are being implemented and the new programmes that are proposed. Many of the agreements are then applied in a range of special employment programmes and integrated regional projects.
• A range of processes and actions that will deal with financial resource mobilisation and specific financing mechanisms. The purpose of this interaction is to inject additional resources into accelerated delivery mechanisms that will have a direct job creating effect.
• The government is undertaking a review of our regulatory framework in order to facilitate higher levels of saving and investment in the economy. Government will continue to consult with NEDLAC constituencies.
• The parties agree to interact with developmental institutions such as the IDC, DBSA and CSIR in pursuit or programmes and policies agreed at the Jobs Summit.

In combination these programmes have a macroeconomic effect in that they constitute a positive counter cyclical package that is designed to compensate for the effects of lower growth and the current international crisis. In this sense the outcome of the Jobs Summit will be to enhance the employment creating capacity of the economy as it recovers its growth path.

It is agreed that in some sectors or clusters of industry, particularly those with high potential to create or lose jobs, sector strategic processes should be encouraged. These should facilitate the development of industrial strategies for stakeholders, designed to expand output and create or save jobs. A key consideration will be to avoid retrenchments while improving productivity.

Government will make available financial support in the form of a Sector Partnership Fund (SPF) up to R27.5-million between April 1998 and March 2001 as allocated in the Medium Term Expenditure Framework. An upfront grant of R10 000 to enable a sectoral group to develop a full proposal.

It is agreed that the NEDLAC parties will embark on a Buy South Africa campaign as soon as possible after the Jobs Summit. The aim of the campaign will be to promote demand for South African products and services that embody high standards of quality. A key component of this initiative will be the establishment of a new label for qualifying products and services. The Department of Trade and Industry will lead an interaction between the South African Bureau of Standards, the South African National Accreditation System and the NEDLAC parties to develop and implement the label and its accreditation.

All NEDLAC parties agree that the capacity to stem the flow of illegal imported goods into South Africa will contribute to job creation and good governance in the economy.

The Customs Transformation Programme (CTP) consists of:

• The rollout of techniques and best practices currently being investigated will improve the technical resources at the ports of entry;
• The Botswana-Lesotho-Namibia-Swaziland border control project currently in progress will address issues around the number of places of entry within South Africa and the proposal of 17 border posts; and
• Identified projects to speed up computerisation of the customs functions.

The NEDLAC constituencies believe that:

• Implementation of the CTP should enhance the capability of Customs to check sensitive sectors, and
• Automating some administrative functions would release staff for inspections.

Government has allocated R734.7-million for the CTP over a five-year period.

Trade policy reform is a key instrument for restructuring the economy, but it needs to be accompanied by a range of industrial support measures. South Africa has been negotiating a wide range of trade agreements, which are likely to be completed in 1999 and will have an important effect on the level of tariffs and trade and investment prospects. As part of a strategy to reduce job loss and increase employment, government will initiate a comprehensive process with the NEDLAC parties to develop the next round of trade policy programmes and prepare for the next World Trade Organisation round. Job loss and job creation in industries affected by tariff reform needs to be prioritised, and specific attention will be paid to those industries that have experienced significant job losses over the past 36 months.

The small, medium and micro sector has faced excessive obstacles in the past, and government has developed many new programmes targeting small business - as one of the most important vehicles for creating jobs and wealth in any country.

To this end, a national Mentorship Scheme will be established, costed at about R5-million per annum over an initial three-year period. It will be a public-private partnership between Ntsika, Khula Enterprise Finance Limited and other private sector partners such as the National Business Initiative (NBI)/South Africa Foundation, the Banking Council and the Black Business Council. Target sectors include tourism, arts and crafts, information technology, and automobile and metal manufacturing.

Khula will launch several new lending programmes and expand the existing scheme. These include:

• a Fisheries Fund for historically disadvantaged entrepreneurs and communities
• the Small Contractor Industry programme
• a Tourism Sector Financing scheme, targeting historically disadvantaged entrepreneurs
• a Nations Trust Youth Enterprise project for entrepreneurs between the ages of 18 and 35
• small medium business projects within the Spatial Development Initiatives, beginning with a focus on the Integrated Provincial Projects
• pilot projects to establish micro-credit outlets in rural areas targeting women.

The Banking Council of South Africa, and at least three banks will shortly launch a scheme to provide finance to micro.

It is agreed to establish a set of 28 new service centres before April 2000 at a total cost of about R30-million. In the first year the cost will be shared between government, donors and the private sector.

Business incubation centres provide a nurturing environment for SMMEs. They may include support services such as on-site technical assistance and training, public procurement and business linkages and opportunities for market access. A target of 11 pilot business incubation projects (at least one in each province) should be achieved by the end of 1999. Each should accommodate about 20 businesses.

In recognition of the great potential of the South African tourism industry for sustainable job creation over a relatively short period of time, business and government have agreed to:

• A partnership to aggressively market South Africa as a prominent tourist destination. A public-private marketing fund will be established and a joint business/government marketing committee will preside over the initiative. It will have a budget of R180-million, with contributions by government and the private sector.

To promote the entry of SMMEs into the tourism sector:

• Twenty to 40 towns throughout the country will be identified as pilot development areas. These would be towns with demonstrable tourism demand and underdeveloped potential;
• A core of tourism &quotpathfinders" will mobilise the selected communities and local entrepeneurs to identify tourism opportunities;
• A dedicated tourism financing mechanism will fund new ventures; and
• A tourism capacity building programme will be established, where local business will ‘mentor’ emerging entrepeneurs.

Khula has committed wholesale finance to the programme, and a retail finance facility will be established to support emerging entrepeneurs.

The National Presidential Lead Project aims to pilot affordable mass housing delivery. Seventy five percent would be rental stock, while the rest would be ownership. It should lead to mass housing delivery and demonstrate &quotbest practice" to achieve sustainable delivery and management of affordable housing. The use of labour intensive construction methods will be encouraged in the award of tenders.

A minimum of 50 000 and a maximum of 150 000 housing units for low-income families should be built through the NPLP. In the first phase 50 000 units would be financed jointly by the private sector and the government. The NPLP will be managed by a government-appointed agency, which is yet to be determined.

A framework for a Social Plan approach has been agreed to, between delegates from the Trade and Industry and Labour Market chambers after two years of negotiation. The Social Plan approach aims to avoid job losses and employment decline wherever possible. In cases where large job losses are unavoidable, it would seek to actively manage retrenchments and ameliorate their effects on individuals and local economies.

Under the auspices of the National Productivity Institute, the Department of Labour will establish a Social Plan Technical Support Facility. It is proposed that representative forums be established at industry or enterprise level, to look ahead to problems, challenges and possible solutions. Details of proposed strategies can be found within the agreement.

Parties to the Jobs Summit commit themselves to implementing a comprehensive social security system, aimed especially at those living in poverty and the unemployed. A basic income grant may be considered as part of such a system. The process to reach agreement on the elements of such a system should begin with an investigation.

Parties are committed to the progressive building of South Africa’s human capacity at all educational levels. A number of initiatives have been agreed to, which support government’s education policy. The main players are the Business Trust, the Department of Education, the National Business Initiative, the Joint Education Trust, and the READ organisation. Programmes will be aimed at improving School Quality Management, Schooling Efficiency and Schooling Effectiveness.

A learnership is a work-based route of learning, and is one of the initiatives proposed in the Skills Development Bill. All parties are fully committed to learnerships, an example of which is the partnership between business and government in Tourism and Hospitality to support 6 000 learnerships.

A Youth Brigade programme will be established as a means to involve youth in public and community service and to facilitate their access to income generating opportunities. There will be three lead programmes, viz. Working for Water, The Clean and Green Cities Campaign, and the Community Based Public Works Programme. Participants in a youth brigade would provide public works and/or community service, receive accredited education and training, as well as an allowance. A Youth Brigades Steering Committee will co-ordinate the process nationally. A campaign against HIV/Aids would be launched by Aids Brigades.

Government – through the Departments of Education and Labour – would explore with a range of stakeholders opportunities for community service for students.

It is recognised that women have been greatly hindered from participation in the labour market by the &quotgender division of labour" and exclusion from mainstream economic activities: statistics show that almost one-half of African women are unemployed as compared to about one-third of African men. This requires a dynamic approach, and a number of initiatives have been proposed:

Special Employment Programmes would target women, especially those who head their households, with consideration to their support needs such as child care and flexitime. Where possible, the target will also be applied to procurement opportunities and associated jobs.

To address the crowding of women into few insecure and low-paid occupations (such as nursing, domestic work and teaching), a campaign will be launched to:

• consider school curricula and career guidance
• actively promote women entrepeneurs though mentorships and financial support
• consider special incentives to encourage women into training, and
• encourage the promotion and training of women in all economic sectors in line with the Employment Equity Bill.

It is recognised that only 12% of African women have matriculated, while 20% have had no formal schooling at all. Specific consideration should be given to the training of women and their participation in learnership programmes in all SETAs.

To ensure that SMME programmes reach women entrepeneurs, a target has been set to aim at least 50% of all mentorships and 50% of space in business incubation projects at women by the year 2005. In recognition that the majority of women entrepeneurs are in the survivalist and micro sector, the DTI will support a campaign to target the promotion, support, access to training and finance to women in this sector.

• All parties will actively promote the Sexual Harrassment Code of Good Practice.
• The Department of Welfare will co-ordinate a national plan for the provision of early childhood education and care for ages up to six. The IDT has committed itself to supporting this initiative.
• The Office on the Status of Women, the Commission on Gender Equality and the Women’s National Coalition will monitor the progress.

People with disabilities face a unique set of barriers to economic self-reliance. Most importantly, these include fears, myths and stereotypes about the inabilities of disabled people which compound their lack of access to routine supports and resources of daily life. An Integrated National Disability Strategy has been approved by Cabinet. The Jobs Summit has provided a framewok and opportunity for developing concrete intersectoral strategies for the economic empowerment of the estimated 10% of South Africans with disabilities.

Guideline targets include:

• Five percent of economic development investments by public sector SMME promotion, training, micro- and industrial credit resources be targeted to people with disabilities
• Two percent of the public and private sector workforces will consist of people with disabilities
• Five percent of public sector procurement will go to businesses owned or controlled by people with disabilities, or to private sector enterprises with at least five percent of people with disabilities in their workforce, and
• Employment Equity regulations will be reviewed to ensure the reduction of discrimination and that attention is paid to remedy victims’ losses.

Government’s Infrastructural and Special Employment Programmes enable quick job creation, particularly for the most vulnerable groups in the labour market. The package of Programmes already on offer will be dramatically expanded over the next few years, with greater attention paid to the finance stream, improved co-ordination of activities, sustainability, training and the contribution to local economic activity. It is estimated that about R5-billion is currently allocated from the budget to labour-intensive infrastructure programmes such as Working for Water, the Land Care Campaign, Rural Water Supply, the Community-Based Public Works Programmes, Consolidated Municipal Infrastructure Programme, Housing and select Welfare programmes. In order, Housing (R3.2-billion) and CMIP (about R700-million) constitute the bulk of this funding.

A more dynamic and integrated approach to implementation includes a commitment to expanding programmes that have investment promotion or ‘natural resource-releasing’ impact; maximising synergies between infrastructure and services; and promoting labour-intensive methods in construction.

The Clean and Green Cities Campaign aims to promote a sense of pride in our cities and make them more attractive for visitors, and to kick-start waste management systems in previously unserviced areas. The Campaign will implement municipal waste collection in poorly and unserviced areas, linking into small recycling operations to facilitate the sustainability of the programme. Currently there are an estimated 15 000 employees in the waste management industry, but there is potential for much greater job creation as over 50% of South Africans do not have access to waste collection systems. The Campaign was established as a one-year pilot programme in 1996 by the Community-Based Public Works Programme, in partnership with South African Breweries and the Keep South Africa Beautiful Association.

About 38 000 direct short-term jobs have been created through the Working for Water project – at least half of these are rural women in KwaZulu Natal, Eastern Cape, Western Cape, Northern Province and Mpumalanga.

The project is an inexpensive short-term job creation and conservation project, which aims to clear invasive alien vegetation. One direct or indirect job is created for every R10 000 spent per year, and the wage component accounts for over 60% of costs. Last year 220 000 hectares of alien vegetation were cleared.

The Land Care campaign is a community-based partnership which focuses on the rehabilitation and conservation of natural resources through sustainable utilisation and the creation of a conservation ethic through education and awareness. It will be kick-started through an initial budget allocation of R25-million, and aims to raise R250-million through donor support. It will reinforce the Working for Water project by eradicating invader plants and declared weeds which are degrading the agricultural potential of wider catchment areas away from waterways.

It is estimated that government’s low-income housing programme generated 109 445 direct and 164 168 indirect employment opportunities in 1997, with an expenditure of about R2-billion on the subsidy programme. These are not sustainable jobs, but do make an important contribution. Mechanisms are being put into place to improve the quality of housing delivery by addressing non-payment for services, protecting against poor workmanship, normalising relationships with lenders, offering a national housing subsidy scheme and improving access to credit to low-income housing through Project Gateway.

The Consolidated Municipal Infrastructure Programme channels capital subsidies to investment in basic service infrastructure for low income households and towards the rehabilitation of collapsed infrastructure in previously disadvantaged areas. The Department of Constitutional Affairs estimates that in 1997/8, the equivalent of 10 565 temporary full-time jobs were created. Since its inception, the Programme has provided contracts to 1 569 SMMEs, and training for about 94 300 people. Funding is expected to increase substantially from the existing R630-million, and it is estimated that this could create about 20 000 jobs.

In total, R950-million was spent in 1997/8 to deliver water and sanitation services to well over one million people not previously served. This programme created the equivalent of temporary jobs, equivalent to 41 480 full-time jobs in 1997/8, mainly in the poorest provinces, employing mainly women and youth.

Government aims to redirect spending away from programmes that promote dependency to those that are more developmental. Based on poverty profiles of provinces, the Department of Welfare has designed a social development programme with a R203-million budget in the 1998/9 fiscal year. This includes as its targets unemployed women with children under five.

The CBPWP is aimed at poverty alleviation through job creation, primarily focusing on rural areas. It is implemented through provinces and NGOs. Since its inception, over 900 projects have been implemented, mainly in rural areas, creating the equivalent of about temporary jobs, equivalent to 41 650 full-time jobs. The programme will focus on the strengthening of Integrated Development Planning, Local Economic Development and Land Development Objectives.

A critical component of the special employment programmes will be to link the provision of basic infrastructure and waste management into viable sustainable industries.

Government is committed to improving the co-ordination of infrastructural provision to underpin and encourage private sector investment. The social partners have agreed that pilot projects will be run in the three provincial lead projects to demonstrate how improved co-ordination could improve delivery. So, for example, by improving the financial attractiveness of a hotel project that is made accessible by a new road, such investments improve the chance that such projects will materialise and create permanent jobs.

Government is committed to creating sustainable jobs which would in themselves help to underpin the sustainability of waste clearing programmes. Some secondary industry possibilities are outlined below from the Working for Water and Clean and Green Living programmes. Some of these ideas have already come to fruition; others require further business plan development.

The following agreements have been reached between the Ministry of Environmental Affairs and Tourism since October 1998:

Enviroserve: Aims to employ additional permanent staff and extend their current system that involves support for entrepeneurs and employment of local people.

Sappi: Sappi will finance feasibility studies for partnership pilot projects in the collection and transportation of waste paper.

Nampak: Will work with government to develop emerging entrepeneurs in crushed glass activities, and to identify business recycling opportunities in metals, plastics and glass waste.

Spoornet: Spoornet has agreed to work with government to launch and expand &quotwaste-by-rail" activities, with the establishment of waste transfer stations along its rail infrastructure.

Further discussions are being held with PGF and Consol Glass, Eskom and the SA Tyre Recycling Manufacturing Companies.

The Working for Water project has identified and scoped opportunities for developing secondary industry out of the resources that are created as a result of its operations. The Department of Trade and Industry and the Industrial Development Corporation will explore ways in which further opportunities can be created. Already 14 industry niches have been identified, including nurseries for traditional medicines, horticulture and plant rehabilitation; ecotourism; furniture production; crafts and vegetable farming.

The Industrial Development Corporation (IDC) will support the feasibility assessment and packaging of sustainable projects related to the Clean and Green Living campaign and the Working for Water programme. Where possible, it will assist with mobilising finance so that projects are realised.

Franchising will be considered as a means of extending these initiatives.

The Department of Public Works is committed to promoting labour intensive practices in the construction industry. The Green Paper Creating and Enabling Environment for Reconstruction, Growth and Development of the Construction Industry sets the agenda for the transformation of public sector fixed investment and its capacity to influence the growth and development of the industry. To maximise the job creation potential of the construction industry, a Task Team – comprising major stakeholders – will produce guidelines on:

• Community involvement in projects
• Project design to maximise employment potential
• Procurement practices
• Training
• Monitoring

Government has taken the lead to focus efforts on areas of high social need and high economic potential, as models for job creation throughout South Africa. Three areas have been selected as integrated provincial projects:

• Greater St Lucia in KwaZulu Natal,
• The Wild Coast-Emonti, and
• The Greater Algoa Bay region.

Four factors have shaped this selection:

• A legacy of poverty and neglect. Unemployment is a staggering 73% in the Wild Coast, 43% in St Lucia and 36% in Algoa Bay.
• Each of these areas possesses huge potential to attain prosperity, either through tourism and agriculture or, in the case of Algoa through the automotive sector and export-oriented metal processing projects.
• These areas are an application of government’s economic development approach to neglected areas by identifying key projects with substantial long-term growth prospects and creating conditions for private sector investment in specific spatial locations. These projects will create jobs directly and many more through the ripple effect of opportunities for local entrepeneurs, small businesses, suppliers and customers.
• By building upon the synergies generated in implementing agreements of the employment strategy in these areas the approach can be replicated in the rest of the country.

Within the integrated provincial projects the focus on establishing conditions for sustainable job creation will facilitate the rapid implementation of all the applicable agreements of the employment strategy.

The Greater St Lucia project covers an area with a unique combination of natural beauty, natural resources and cultural wealth. However, it has poor infrastructure for supporting economic growth.

The lead job creation project is through large-scale tourism with associated local development opportunities. The centre piece is the creation of a St Lucia Wetland Park authority to manage the area in line with international best practice and prepare for its declaration as a World Heritage Site.

For the projects now being proposed to investors approximately 2 100 potential jobs would be directly created in the first phase, but this would in turn stimulate additional employment several times that figure. Highlights of the proposed project are:

• Mobilising a first wave of private sector investment to the tune of R680-million;
• Supporting communities to enter into community-private partnerships;
• Developing approximately 5 500 additional tourist beds and 15 development nodes over a 10 year period;
• Providing an efficient framework for the consolidation of 280 000 ha of state-owned conservation and marine estate, and
• Generating an estimated gross revenue of R800-million per annum at maturity

Government is unlocking the potential of the area through building key infrastructure and stimulating local economic development. A new coastal road will join Hluhluwe and Maputo.

Extensive community consultation and mobilisation has been under way in the area since the Lubombo SDI was initiated in 1997, and the broader objective is to stimulate regional job creation through unlocking the development potential of the whole Maputoland region embracing Mozambique, South Africa and Swaziland.

The Wild Coast-Emonti project covers a corridor 280km long at the northern end of the Eastern Cape coast between the Mtamvuna River in the north and the Great Kei in the south. It is one of the few remaining undeveloped stretches of coastline in South Africa, with superb natural assets that have been vastly under-utilised. The population of over a million people lives in amongst least developed areas in the country.

The lead job creation projects in the Wild Coast are tourism, forestry and agriculture, focusing on four nodes along the coast. These are the Mkambati nature reserve and forests; Port St Johns, Coffee Bay plus Hole in the Wall holiday resorts; and the combined Dwesa/Cwebe nature reserve. Through the integrated provincial project interventions are being made to upgrade road and water infrastructure and to transfer skills to communities to empower them to enter into successful community-private partnerships.

Key features of the job creation projects being promoted to private investors include:

• A combination of projects in Port St Johns including construction of a new hotel, golf course and camp site at First Beach, and redevelopment of existing facilities. Government will fund the development of infrastructure in the town.
• Proposals to build a new hotel at Coffee Bay have been made.
• Plans to redevelop and upgrade the Dwesa/Cwebe nature reserve.
• Plans to commercialise the Mkambati nature reserve and provide 150-200 tourist beds.
• Three major forestry projects to establish new commercial forests on community land and build a wood fibre processing plant. Extensions to this project are for a furniture manufacturing facility.
• Employment intensive agriculture has been proposed for the Port St Johns area and the Magwa tea estate is being prepared to invite a joint venture with private sector partner.

This region is best understood as the &quothinterland" of Port Elizabeth. The city of Port Elizabeth is the metropolitan hub with established industry but estimates suggest that as much as 60 % of the black potential labour force is unemployed.

Five lead project clusters have been selected. These are:

• automobiles and components;
• a greenfields metals processing complex and new port;
• tourism centred on an enlarged Greater Addo Elephant National Park;
• support for SMME development, and
• high value agriculture for small farmers.

Key features include:

• Sharpening the competitive capability of the automobile assembly and motor component manufacturing sector into a world class export sector;
• Establishment of a dedicated metals processing cluster and proposed new deep-water harbour at Coega.
• Extending the Addo Elephant National Park to boost tourism in the region. Additional tourism projects involve waterfront development for Port Elizabeth.
• Assessing the feasibility of irrigated farming for small farmers in the lower Sundays valley.
• Supporting small, medium and micro enterprises able to exploit the opportunities created in other project clusters.

Government will extend the approach adopted in the integrated provincial projects to stimulating job creation in other provinces of the country through partnerships with business, labour and communities in the delivery of infrastructure and services to stimulate economic development.

Jointly, Government, Business and Labour have pledged resources towards the financing of short, medium- to long-term job creating activities.

Organised labour will call on its 2.5 million members, non-members and all employers in South Africa, to participate in a &quotone day’s output for jobs programme". This is a call for the people of South Africa to contribute the value of their one day’s output to fund employment and development programs in line with the Jobs Summit. Both white and blue collar workers, politicians, artists and all other workers are called upon to contribute towards realisation of this initiative.

Government will contribute resources through the Umsobomvu Fund, to be set up from proceeds of the demutualisation proceeds. These resources will be focused towards job creation, training and youth employment oriented programmes. More resources will be made available through the Budget process.

Other initiatives will include the investigation of more financing options such as the prescription of assets and the restructuring of the public sector pension fund, proposed by Labour. A task force will be set up to investigate these proposed initiatives.

To enhance the employability of South Africa’s labour force, funding for training will be leveraged through the implementation of the training levy.

The Land Bank Board has begun to launch the first of a range of new products designed to benefit everyone in the agricultural sector, even those with small plots of land and including the lives of hundreds of thousands of farm worker families. Among the products are the following:

• new procedures to secure preferential access to &quotbrought in" properties for historically disadvantaged persons;
• the step-up micro lending scheme;
• wider access to credit through changed collateral requirements;
• differentiated pricing policy;
• a 115% bond for first time buyers of agricultural land; and
• encouragement of black firms through procurement policies.

Several more new polices are also in the pipeline which are indicated in greater detail in the framework document.

Khula schemes that support Jobs Summit include:

• Credit Guarantee Schemes
• Loans and equity investments
• New venture capital and seed loans

Khula will also administer the Department of Land Affairs’ Reform Facility

The DBSA contributes directly to wards the creation of employment through its investment programmes which entail the mobilisation and investment of resources in the construction and upgrading of water, sanitation, transport, energy and telecommunication, social and institutional services across the spectrum of bulk and, connector and internal infrastructure. An estimated 62,000 workers were directly involved in the implementation of the 570 projects implemented at an investment cost of R250 million. Most of the participants were employed in the form of unskilled labourers with half of the investment constituting wages and one out of three receiving accredited skills training.

The IDC has identified two main themes to improve the targeting of its work:

1. Improving the current IDC operations:

• Streamlining and simplifying procedures in processing applications especially in industrial financing and entrepreneurial development divisions
• Extending its reach, especially to emerging entrepreneurs and specifically:
• the scheme to facilitate take-overs and acquisitions
• the wholesale finance scheme
• low interest rate empowerment scheme
• consortiums finance scheme
• fishing finance scheme
• Supplementing existing financing products
• Taking pro-active steps to encourage midi-projects and strengthen the competitiveness of industry clusters

Projects being considered include:

• Agri-industries development
• Tourism
• Large resource based projects

1. Special projects to be supported by IDC include:

• Administration of some government job creation schemes
• Promoting sustainable economic activities linked to Seeps
• Forging partnerships with private sector in special jobs schemes

IDT supports the following programmes:

• Capacity building and enhancement of local authorities, NGOs and CBOs
• Local economic planning and development initiatives
• Programme management for community based programmes
• Programmes and initiatives that are aimed at increasing the participation of women, youth, and disabled
• Programs aimed at rural communities
• Programmes directed at SMME support
• Programmes promoting community-private partnerships

A Cabinet Employment Cluster Committee will be established to ensure the effective implementation of Jobs Summit commitments. This committee would be responsible for ensuring that government’s Employment Strategy commitments are met.

The agreements reached at the Jobs Summit require careful monitoring, to ensure that implementation receives priority, and to overcome any obstacles which may retard the creation of jobs as envisaged in the individual programmes. A range of other potentially useful ideas and proposals were received from constituencies, and the public, which could not be processed in time. Some of these are now the subject of further consultation or investigation.

The work to improve the alignment of policy to ensure the most effective contribution to employment creation, will continue.

The current supervisory committee will meet after the Summit and finalise the working structure under the auspices of NEDLAC, to undertake the above. This structure will make recommendations to the President on the convening of the next Summit.