Government will use the development of communications infrastructure to boost employment in the country.
Finance Minister Pravin Gordhan delivered the country’s medium-term budget on Wednesday, reining in public spending and promising that infrastructure development would be used to meet government’s employment targets.
Government wants the country to create 5m jobs over the next 10 years. According to Gordhan, it means economic growth needs to be at 6%/year.
“SA’s present economic growth trajectory cannot meet the country’s employment needs,” he said.
Gordhan said that in order to bring a marked change in poverty and inequality, government had decided to invest more in electricity, transport and communications infrastructure. It would also encourage more competition in these sectors.
“We also need to see improved economic co-operation between countries in Southern Africa, including financial and trade institutions, transport, communications, energy and water networks,” he said.
Through investment and infrastructure development, Gordhan hopes job opportunities will be unlocked in the communications sector.
Gordhan said six priority sectors, including communications, have coloured the development of the medium-term budget, in the hopes the employment opportunities created will also boost the economy. — Staff reporter, TechCentral
- Image credit: World Economic Forum
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