Economist unconvinced by ANC job creation promise
Efficient Group economist Francois Stoffberg doesn’t believe it the current economic climate will allow the African National Congress (ANC) to fulfil its promise of creating 270 000 jobs per year.
The job creation promise forms part of the ANC elections manifesto, which was unveiled by President Cyril Ramaphosa in Durban on Saturday.
Ramaphosa promised to create 275 000 jobs every year, in addition to raising R1.2 trillion in investment over the next five years.
Stoffberg says the current economic climate makes it impossible to create jobs at the rate the president is suggesting.
"In the current economic environment given current political agenda and economic policies its surely not likely.
"It could be possible, if you can actually attract the R1.2 trillion that he is suggesting, because that it the kind of infrastructure and capital that you need to left short- and long-term potential economic growth.”
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Stofberg says since Ramaphosa assumed office he has shown that he is willing to make some tough choices by vowing to restructure his cabinet and change the way in which the government manages stated-owned companies.
" I think what the president has done, since he was elected in December 2017, is to show that he is willing to make the tough changes in terms of his cabinet, in terms of how we manage state-owned entities, in terms of how we manage taxes and state spending to try and reconvince foreign investors.
"Now, if he can win a strong election it will be another tick next to his name, saying that maybe this is the type of person and the type of country we can invest in and if he can win them over like his doing I believe, we can see those follow in South Africa.”