President Cyril Ramaphosa announced on Thursday that in addressing the unemployment crisis facing the country, government must support small businesses and the informal sector, to create jobs at scale.

Ramaphosa was speaking during the News24 ‘On The Record’ Summit in Cape Town, where he pointed out that government’s “single greatest challenge” is to translate positive economic momentum into jobs for the millions of South Africans who remain unemployed.

Ramaphosa pointed to the conflict in the Middle East, saying it looked set to exact a heavy toll on global economies, with increasing energy costs, supply chain disruptions, higher costs of living and fewer growth prospects.

“It is therefore essential that we proceed with urgency to drive the reform and transformation of our economy while identifying the measures we need to take to mitigate the effects of the conflict,” he said.

He said support must be given to businesses with potential to grow through capital, skills and market access, and said an enabling regulatory environment must be created.

He confirmed that government was reviewing current legislation to reduce the administrative burden on small businesses and make it easier for them to start and grow.

He assured that government was reforming the country’s criminal justice system to restore public trust and equip law enforcement agencies to deal with organised crime and corruption.

“Pervasive crime breeds fear and mistrust. It has both a devastating human cost and a direct economic impact. It increases the cost of doing business and discourages businesses from investing,” he said.

Ramaphosa explained that rebuilding the country’s criminal justice system was as important for jobs as any employment programme.

“We will complete the implementation of our action plan on the recommendations of the State Capture Commission and undertake the corrective measures that may arise from the work of the Madlanga Commission.

“We are focused on strengthening the Hawks, National Prosecuting Authority and the Special Investigating Unit to bring perpetrators to justice, to recover stolen funds and to end impunity,” he said.

He said government was also advancing reforms to professionalise public service and protect it from political interference.

Ramaphosa averred that after years of stagnation, the country’s economy had reached a turning point.

“Growth is improving, investment is expanding, and more jobs are being created. Our reform agenda has built up significant momentum, enabling growing confidence in our economic trajectory."

He pointed to tangible improvements in the country’s economic performance, saying this was the result of a sustained, multi-year effort to reform the economy and to fix what was broken.

“Most importantly, these improvements are the result of collaboration between government and partners across society, of the recognition that our challenges cannot be resolved by the State on its own. All our efforts have been driven by the simple conviction that we can achieve more when we work together,” he said.

He called on all companies to be part of the Youth Employment Service drive to allow more young people a first step into the work environment.

He noted that as part of the effort to ensure that young people were equipped for work, government was reforming the skills development system to link training more closely to demand in the economy.

“We are working to overhaul the Seta system and replace it with a fit-for-purpose system that enables young people to access jobs. We must build on our strengths as a country to create jobs for the economy of the future. We have one of the most sophisticated financial sectors in the world,” he said.

He added that government could position South Africa as a destination for financial services companies to locate their African and emerging market operations.

“We have among the best solar and wind resources in the world. By rolling out renewable energy at scale, we can build a strong platform for growth in a wide range of sectors, from green steel to new energy vehicles,” he said.

Ramaphosa explained that South Africa had a thriving agricultural sector, producing high-value crops for the entire world.

“…by expanding our export markets and supporting farmers to grow their production, we can create jobs in every part of our country,” he said.