SAIC pledges could deliver 230,000 jobs
Investment commitments secured at the sixth South Africa Investment Conference (SAIC) could create about 230,000 direct permanent jobs over time, President Cyril Ramaphosa told the National Assembly last week Thursday.
Responding to oral questions, Ramaphosa said the conference held in March secured R890 billion in investment commitments. About R415 billion of that total came from private‑sector companies, with the remainder pledged by development finance institutions and multilateral development banks.
“Of the 81 confirmed private sector investments, 53 companies submitted employment declarations at the time of signing. These 53 investments are projected by the companies to create approximately 230,000 direct permanent jobs,” the President said.
He cautioned that not all investments generate jobs at the same rate, noting wide variation between labour‑intensive and capital‑intensive sectors. According to figures he gave, labour‑intensive investments in global business services and financial services generate roughly 3,900 jobs per R1 billion invested. By contrast, capital‑intensive projects such as renewable energy infrastructure and data centres generate between 13 and 248 jobs per R1 billion.
Several of the largest pledges, including expansions by Sasol, MTN, Vodacom and Coca‑Cola Beverages Africa, are extensions of existing operations, Mr Ramaphosa said. Those projects are expected to help sustain current employment while gradually increasing job numbers.
To ensure pledges translate into action, the government is monitoring commitments through a quarterly implementation tracker, he added.
Ramaphosa acknowledged that investment alone cannot solve South Africa’s deep structural unemployment. “The structural unemployment problem is rooted in skills mismatches, spatial economic concentration, slow growth of the formal private sector and barriers to small business formation,” he said.
He outlined parts of the government’s broader strategy to tackle these constraints: stepped‑up infrastructure investment, industrial policy reforms, targeted skills development and measures to remove barriers facing small firms. He also announced a new government target to raise R3 trillion in investment commitments over the next five years.
