Although the state plays a significant role be a part in creating jobs however, it is the private sector which creates more jobs according to Cyril Ramaphosa, president of the Republic of South Africa.

In his speech in the Parliament the previous Thursday (16 February) Ramaphosa referred to China as a great illustration of mixed economic growth and noted that the private sector employs approximately three-quarters of South Africa’s employees and is responsible for more than two-thirds (65%) of the investment and development expenses.

For South Africa, the number of employees by the government sector grew by a whopping 1.9 million back in 2002, to 2.8 million in 2017.

The same time frame the number of workers working in the private industry rose by 8.
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2 millions to 13.5 million.

“South Africa isn’t the only one in attempting to increase our capacity for production by unleashing the full potential in the sector of private investment,” Ramaphosa said.

“One is required to consider looking, for instance, at the way taken in China during the reign of Deng Xiaoping to mobilise private capital and encourage private enterprise in order to fulfill the nation’s development requirements.”

Ramaphosa mentioned Ramaphosa referred to a Daily Maverick article written by Prof Tshilidzi Marwala from the University of Johannesburg which shows how China also grew its economy in the past three decades.

In 2018 the majority of urban jobs in China was in the private sector, compared to 18 percent in 1995. The same time the GDP total grew by trillion from the year 1995, which was 4 billion to by 2018.
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“We are therefore not convinced the fact that we have to decide between a state of development that is driving social and economic transformation, and a thriving growing private sector that drives the growth of employment and job.

“We are not in agreement with the notion that by acknowledging the contribution of businesses in creating jobs that we devalue the fundamental role played by the state in co-ordinating and planning the growth of the economy.” Ramaphosa stated.

The president announced that his government intends to create the development of a strong state as well as an agile and dynamic private sector that are in sync and complement each with respect to.

“This refers to what is meant when talking about a multi-sector economy that is based on the strengths, resources and strengths of both the private and public sectors.”

Minister of transport Fikile Mbalula has warned that South Africa could soon face an calamity similar to Eskom’s electric power shortage as the roadway infrastructure is continuing to degrade.

Responding to questions at an parliamentary committee meeting the Tuesday (15 February), Mbalula said that crucial funds needed for road maintenance was utilized to pay off debts which was accumulated through the failed e-toll initiative.

“I am here , with roads that aren’t going to be maintained over at least the next 10 years. Second phase 2 of the Gauteng Freeway Improvement Project has been halted abruptly and there will become (serious) congestion for the coming 5-10 years beginning in Gauteng.

“It is likely to be the worst catastrophe you’ve ever witnessed as roads are not maintained and repaired, as we don’t have the money to pay for it.”

Mbalula was highly criticizing the former the finance minister Tito Mboweni who he said was unable to provide an alternative to the controversial e toll scheme which contributed to increasing debt issues. “It has dire implications for our country, similar to the terrible problems with electricity.”

Similar to the Eskom issues These are issues that were identified over 10 years prior by the government, but haven’t been adequately taken care of, Mbalula said.

The minister also said that a number of provincial governments had also abused maintenance funds, and it is becoming commonplace paying service companies millions of rands to build roads that don’t exist.

He cited certain instances from the Eastern Cape where the government allocated funds to roads that were to be built, but then vanished into thin air which required to be taken over by the South African National Road Agency (Sanral) to assume the responsibility of this road on behalf of the provincial government.