Photo by: Reuters
A total of R157-million has been committed to projects within South Africa’s Jobs Fund in this year’s National Budget, which was delivered by Finance Minister Tito Mboweni on Wednesday.
However, the Jobs Fund requested that the R157-million only be released at a later stage, when the funds are required by implementing projects in order to roll out project activities and achieve the planned job creation targets.
Until then, government has indicated that the Jobs Fund will “continue to implement prudent fiscal discipline".
A significant portion of the Jobs Fund portfolio consists of projects in the agricultural sector. However, the severe drought experienced in South Africa has delayed planning activities such as planting, translating into consequences for the release of grant funding.
The Land Bank, which supports development and transformation of the agricultural sector, has agreed with the Jobs Fund to provide concessional credit and support to small- and medium-scale emerging farmers.
Currently, 8.2-million young people between the age of 15 and 34 are not in education, employment or training, and government has committed to helping them.
According to Mboweni, “raising skills and improving the matching of young people and jobs is an important focus of the Presidential Youth Employment Intervention”.
To date, Jobs Fund projects have created more than 175 000 permanent jobs and helped 21 000 people into internships and created 59 900 short-term jobs. Of these, about 65% went to the youth.
More details on the Jobs Fund and reprioritisation of resources to raise spending will be provided in the 2020 Medium-Term Budget Policy Statement.