STRUGGLE FOR JOBS CONTINUES

(Comments)

The big test facing Finance Minister Martin Dlamini when delivering the budget speech was how to deliver one that provides the perfect ingredients to whet the appetite of the business community in order to rejuvenate our sluggish economy while providing alternatives to our reliance on the Southern African Customs Union (SACU) receipts which have become an aging cash cow.

This approach was necessary to develop a strong foundation for our economy, with job creation spin-offs and more rapid poverty alleviation initiatives. Did he succeed? We think not. To put security spending above job creation in a country at peace with everybody sums up the minister’s thought process and explains the rise in our unemployment and poverty figures.

When will government understand that its job is to create a conducive environment for the private sector to thrive and create jobs! Now we rely on SACU to pay salaries while development initiatives are being relegated to the sidelines due shortage of funds. 
The minister’s strategy for providing alternatives to SACU dependency is one of creating Special Economic Zones (SEZs). However, he was shallow in detail on how exactly this would work yet this is an area that needed more attention for us to appreciate that all the talk of reducing dependency on SACU will finally turn to action.

Despite the zero budget approach to planning this time around, the key players in creating a strong economic backbone for the country and creating jobs, our SMMEs, appear to have been a non-priority area for the minister.
The best he could do for the SMMEs was to buy time by talking of creating a Micro Finance Unit to facilitate access to finance. Another day, another unit, but still SMMEs struggle with funding and that’s because this access depends on the viability of the requests. Government should first fix its ability to pay on time and stop killing the very same SMMEs that are forced into debt and caused to operate in an environment that lacks the vibrancy promised by the politicians.
The E5.5 billion allocation for capital projects lacks the impact required to generate the quick return on investment we require.
 The minister’s highlight for job creation is the development of the Sidvokodvo Industrial Estate coming with 1600 jobs in the first two years and subsequently 84 000 job opportunities in the near future.  We’ve heard this all before. Not convincing Mr Minister. All we can say is, we will believe it when we see it.

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