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CAPE TOWN — Sub-Saharan Africa is increasingly becoming a more important trade partner for South Africa, President Jacob Zuma said yesterday during his first State of the Nation address of his second term. He said the government was encouraged that South African investments in the continent increased from R5,5 billion in 2002 to R32,3 billion in 2013.
“Our exports into the continent are also increasing each year, having been at 28,5 percent, up from 22,6 percent in 2002.”
Zuma said the country will continue to champion broader regional integration through the Southern African Customs Union, Sadc and the envisaged Tripartite Free Trade Area that spans Eastern and Southern Africa.
South Africa needs drastic intervention to jumpstart the economy and overcome poverty, unemployment and inequality, Zuma said yesterday in his seventh State of the Nation address.
Zuma sombrely acknowledged that economic growth had lagged far behind the government’s targets for three years and that many South Africans were struggling.
He urged efforts to boost investment, stabilise the mining sector and its workforce, resolve energy shortages and alleviate vast income inequalities.
To this end, a national minimum wage to reduce the income inequalities that persisted in the country twenty years into democracy might be introduced.
“Change will not come about without some far-reaching intervention,” Zuma said, adding that nothing would cure the ailments of the post-apartheid society as rapidly as job growth.
But he stressed that for this it was imperative to boost growth and this could only be done if investment levels increased.
“Creating work requires faster economic growth.
“The low level of investment is a key obstacle to growth. We would like to see the private sector showing as much confidence in the economy as the public sector.”
The president added that government would put special focus on the strife-ridden mining industry and would monitor 2014 targets and “extend this right to dignity to mine workers”.
“Companies are expected to convert or upgrade hostels in family units . . . and also facilitate a home ownership option for mine workers.”
Turning to energy restrictions, Zuma signalled that the government planned to push ahead both with nuclear energy generation and shale gas exploration.
“Nuclear has the capacity to produce well over 900 megawatts while shale gas is recognised as a game changer for our economy.
“We will pursue the shale gas option withing the framework of our good environmental laws.” — Sapa.
Online Reporter