South African President Jacob Zuma called on the government and private sector to create jobs, setting aside billions of dollars to create work in Africa's largest economy, hard-hit by chronic unemployment. "We urge every sector and every business entity, regardless of size, to focus on job creation. Every contribution counts in this national effort," Zuma said in his State of the Nation Address to parliament on Thursday.
But economists have been worried that his government is going down the wrong path by relying too heavily on the state to create work over the private sector while a presidential report said four major labour reform bills his administration proposed could cause millions to lose their jobs.
Zuma made a concession to the private sector and announced 20 billion rand ($2.75 billion) in tax allowances to promote investment and expansion for manufacturing firms. "We cannot create these jobs alone. We have to work with business, labour and the community constituencies," Zuma said.
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