A failure to fast track necessary changes to Eskom will continue to dampen growth and investment, South Africa’s Employment and Labour Minister warned stakeholders at the annual 24th Nedlac Summit in Johannesburg.
Thulas Nxesi said the proposed restructuring, the filling of critical vacancies, appropriate pricing structures, as well as the role of IPPs should be a priority.
“Any economic growth is invariably tied to a competitive electricity price, security of supply and a sustainable state-owned utility that will require significant restructuring,” said Nxesi.
In February, President Cyril Ramaphosa announced the restructuring of Eskom that would see the power utility split into three separate operating entities.
The labour minister said skills development for sustainable employment should be central to job creation, adding that the process should be focused on reskilling “our current workforce with portable skills in the labour market.”
“We need to prioritize life-long learning to enhance flexibility in employment opportunities, especially given rapid technological changes.”
On South Africa’s stubbornly high unemployment rate, Nxesi said it’s important for the country to be forward-looking in its approach.
“As part of the global economy, we are now faced with the Fourth Industrial Revolution which has the potential to disrupt current work practices. You cannot resist new technology, but we will have to carefully manage the effects – adopting what the ILO (International Labour Organisation) refers to as ‘a human-centred agenda to manage the future of work.”
In the first quarter of 2018 to the first quarter of 2019, the formal sector lost 135 000 jobs. In contrast, the domestic and informal sectors gained 58 000 jobs.
South Africa’s GDP fell by 0.8% in seasonally adjusted terms from the last quarter of 2018 to the first quarter of 2019, SA Government News reported.
“This followed two quarters of marginally positive growth in the third and fourth quarters of 2018, which were preceded by a technical recession in the two quarters at the beginning of 2018,” the government news agency said.
“These figures highlight continued volatility in economic conditions as well as the general slowdown since the global financial crisis in 2008,” said Nxesi.
“At the national level, job creation requires a stable macroeconomic framework coupled with structural policies that encourage innovation, skills and business development.
“And to address these objectives – whilst recognizing the leading role of government – also remains the responsibility of all the social partners,” said Nxesi.
