State of the Nation: R29bn over three years to finance job-creation

The government will make R9-billion available for job creation and R20-billion for allowances and tax breaks over three years, mainly in the manufacturing sector, President Jacob Zuma said in his state of the nation speech in parliament.

In a generally upbeat speech in which he claimed that progress had been made in most of the government's priority areas, he included the announcement of R800-million in immediate relief to communities hit by the recent flooding and promised further spending on reconstruction.

Confirming that local government elections would be held before the end of May, Zuma conceded that some municipalities and public services were not performing well.

Can Zuma become the president who delivers on jobs?

As President Jacob Zuma takes the parliamentary podium next Thursday and pronounces on the state of the nation, business and labour constituencies will be watching intently.

What tiny signs might there be that a real shift has taken place in the ANC’s thinking on how best to create jobs? Will Zuma hint, like ANC secretary-general Gwede Mantashe , that the time to talk tough to the trade unions has come and that it’s better to have more lower-paid jobs for more people than fewer jobs of better quality?

Trade unions stand poised to accuse Zuma of betrayal should he backtrack on the concept of “decent work” (see box on page 31) that was agreed to at the 2007 ANC conference and which appeared in the party’s election manifesto. Given these political sensitivities, whatever is said will be phrased in deep code and more than likely be open to ambiguous interpretation.