Business welcomes Zuma’s infrastructure plans

Major infrastructural plans announced by President Jacob Zuma in the State of the Nation Address have been welcomed by business.

“Business in particular welcomes the new infrastructural plans identified in the Presidential Infrastructure Coordinating Commission, and supports the decision to call a Presidential summit of investors and social partners,” Business Unity South Africa (Busa) said.

The President delivered his fourth address at the opening of Parliament on Thursday evening.

The country will spend billions of rands over the coming years on new infrastructure, with the government to focus on building rail, road, and economic links in five regions in the country.

Busa expressed satisfaction that regional projects were identified together with national, provincial and local government programmes, adding that it looked forward to more details.

“It is essential for new forms of partnership between state and the private sector to help ensure implementation and delivery,” it said.

In his address, the President raised concern about the country’s rising electricity costs that affect the running of small and big business, and also communities at large.

It welcomed Zuma’s request that Eskom look at alternative ways of reducing its price increases. Business recommended that this be done in conjunction with the private sector.

The President’s request was also welcomed by the South African Chamber of Commerce and Industry (Sacci). The chamber of commerce also welcomed the government’s continued focus on reducing unemployment, while also noting that although 365 000 people were employed in 2011, the average target of 500 000 jobs per year was not achieved.

Standard Bank senior economist Thabi Leoka said although there were achievements in reducing the unemployment rate, around one million jobs were lost between 2008 and 2009. These jobs are yet to be recovered.

“We estimate that in 2012 growth will be a mild 2.8%,” she said.

Sacci also welcomed the announcement that investments worth R8.4 billion were approved as part of incentives under Section 12 (i) of the Income Tax Act, designed to support new industrial projects and manufacturing.

The chamber said it would have liked to see more on issues such as easing the plight of small business by reducing regulatory bottlenecks and red tape in order to reduce the cost of doing business, thereby stimulating job creation.

It also would have liked to hear improved crime and corruption prevention strategies.

Busa supported the need for economic transformation and was presently engaged in amending the Broad-Based Black Economic Empowerment Act.

Meanwhile, the Food and Allied Workers Union (FAWU) described the President’s address as “frank” about current challenges, especially the triple challenge of unemployment, poverty and inequality.

“We particularly welcome job creation being the focus of the massive infrastructure roll-out on both the social infrastructure and economic infrastructure to lay the basis for sustained economic growth,” said the union. - BuaNews