Economy on centre stage

Zuma vows radical transformation.

PRESIDENT Jacob Zuma pledged to personally take charge of revitalising the economy and the troubled mining sector, and urged a change in wage inequalities.

In his first public address in 10 days after being ill, the president seemed to walk rather stiffly on a shortened route between his car and the National Assembly, and at times appeared to almost lean on National Assembly Speaker Baleka Mbete.

But once at the podium he seemed to rally and delivered his speech with no hindrance, focusing mainly on the economy and dealing with pressing national issues head-on.

Zuma dealt firmly with the problem in the mining sector and other labour disputes, low investment levels by big business in the economy, and the country's energy crisis.

He also started the 2016 local government election campaign by promising direct state intervention in struggling municipalities, based on “best practice” in well-functioning municipalities.

“As we enter the second phase of our transition from apartheid to a national democratic society, we have to embark on radical socio-economic transformation to push back the triple challenges. Change will not come about without some far-reaching interventions,” Zuma said.

He conceded that the economy had grown below its potential in the past three years and that many households were in difficulty.

“The slow growth has been caused in part by the global economic slowdown and secondly by domestic conditions such as the prolonged and at times violent strikes, and also the shortage of energy,” he said.

The president said he had initiated a meeting in Nedlac between government, business and labour to discuss the violent nature and duration of the strikes, as well as wage inequalities.

These talks will be led by Deputy President Cyril Ramaphosa.

He recommitted the government to investigating a possible national minimum wage, without setting a deadline for the completion of this political hot potato.

Zuma said he would personally take charge of implementing the Framework Agreement for a Sustainable Mining Industry entered into by labour, business and government last year, following an investigation led by former Deputy President Kgalema Motlanthe.

The focus will be on improving housing and other services to revitalise mining towns, especially in the areas of Matlosana (Klerksdorp), Emalahleni (Witbank), Sekhukhune, Lephalale (Ellisras), the West Rand and Matjhabeng (Welkom).

An inter-ministerial committee on the revitalisation of distressed mining communities has been formed, led by Minister in the Presidency Jeff Radebe.

The government is monitoring the compliance of mining companies with Mining Charter targets relating to improving the living conditions of workers.

Companies are expected to convert or upgrade hostels into family units, attain the occupancy rate of one person per room and also facilitate home ownership options for mine workers.

Furthermore, Zuma asked private companies to show confidence in the economy by investing in it. The president voiced disapproval with companies that sat on large cash reserves instead of pumping them back into the economy.

On the topic of energy shortages, Zuma said construction of the Medupi coal-fired power plant in Limpopo would be fast-tracked, shale gas exploration would be prioritised within the confines of environmental legislation, and other energy sources will also be explored.

He said national government would provide assistance to several municipalities in the Eastern Cape, North-West, Gauteng and KwaZulu-Natal in provision of basic services such as proper toilets, running water and electrification of houses.

Poor sanitation and a lack of running water have been the reasons for many violent service delivery protests in the past few years.

He said in the next 12 months the state would complete 100 water and sanitation projects across the country.

It would assist the OR Tambo district municipality with its ailing administration and organizational structure.

Zuma said only eleven municipalities across the country had performed well in terms of financial management and responses to service delivery protests. Four of these are controlled by the DA in the Western Cape.

Zuma also said the government would finalise its Urban Development Framework by the end of July this year, which was expected to deal with rapid urbanisation. “A key focus area in local government in the next five years will be how we respond to the reality of rapid urbanisation. South Africa is becoming an urban country. By 2011 almost 63% of our population were residing in towns and cities and this trend is expected to continue over the coming decade,” he said.

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