SA working to promote inclusive growth, deal with high cost of living

The South African government seeks to attract foreign investment to foster inclusive growth and tackle structural barriers faced by marginalised communities.

This is according to Deputy President Paul Mashatile, who was briefing Members of Parliament (MPs) in the National Assembly on Thursday. 

The Deputy President addressed several topics, including his recent working visit to Ireland and the United Kingdom.

He reflected on the keenness of investors from these two countries to tap into various South African sectors such as finance, energy, transportation and infrastructure development.

“The overall aim of this engagement was to reassure the world and investors that our country is stable and open for business. I must say, in all of these meetings, we were warmly received,” he told Parliament. 

In the United Kingdom, the Deputy President said he met with more than 20 institutional investors, who are already investing in South Africa.  

“We also engaged with the government of the United Kingdom to strengthen and renew the historically deep and rich bilateral relations between our two countries by exploring new initiatives and opportunities for enhancing trade and investments.” 

Following the working visit, government agreed to strengthen existing initiatives while exploring new opportunities to maintain strong trade and investor interest. 

“We anticipate that the upshot of our visit will contribute to an increase in the UK investors who have shown a strong interest in doing business in South Africa,” Deputy President Mashatile explained. 

In addition, he said the relevant ministerial teams presented opportunities in State-owned entities (SOEs), particularly Eskom and Transnet. 

“They dealt with issues of energy, rail and port projects and water infrastructure projects, including the handing of the investment project book that was developed by Infrastructure South Africa.”

However, the Deputy President believed that government alone would not be able to achieve the objectives of growing the economy and creating jobs. 

“As a result, we’re taking these steps to engage the private sector, particularly also foreign investors who are interested to come and invest in our country.”

The State is working hard to ensure the regulatory frameworks throughout government are friendly for investors who can come and invest. 

“So, we were quite impressed that many of those that we met were very happy. They were saying they will be taking advantage in South Africa so that we can create the necessary jobs that we want to create and empower many of our people, particularly young people,” Mashatile said.

G20 Presidency

The Deputy President is of the view that South Africa should use its G20 Presidency to prioritise its objectives of growing an inclusive economy that creates jobs. 

Preparations are underway for South Africa’s G20 Presidency and hosting the G20 Summit in 2025. South Africa is expected to take over Chair of the G20 from December 1 this year from Brazil. 

Mashatile said the State is determined to deal with the question of the high cost of living and professionalisation of the public service. 

“But we want to use that also to benefit the continent. So, what South Africa will do will ensure that, as we Chair the G20, [this] benefits the entire African continent, and we are looking at programmes of infrastructure.

“When leaders of various countries come here, they come with huge delegations, including business people, and therefore they look for opportunities. But we will make sure that there is sound infrastructure to be able to ensure that people can have meetings throughout the country.” 

The Deputy President announced that government has decided that it will concentrate meetings in one place, so the 2025 summit benefits the entire country. 

Skill shortages

Mashatile acknowledged that the local labour supply does not meet the demand for management personnel, professionals, engineers, technicians, educators, and information and technology experts, necessitating the temporary importation of high-level skills.

However, various measures are being implemented to improve local skills, including updating job listings, promoting the critical skills list, and enhancing vocational training in digital skills. 

Mashatile explained that the National Skills Fund directs resources to in-demand sectors and that the Human Resource Development strategy aims to match supply and demand for skilled workers. 

Meanwhile, he said collaboration among industry, government, education, and non-profits is crucial for effective skills development and local employment growth.

– SAnews.gov.za