Statistics South Africa recently released a quarterly labour force survey, which shows that the unemployment rate rose to 27.2% from 26.7% in the first three months of this financial year. Commenting on these statistics Magapatona-Sangaret said: “Economic growth, job creation and poverty alleviation are immense challenges that the government cannot meet alone. Public-private partnerships serve as one of the viable solutions in addressing this challenge as they are a catalyst for economic growth in South Africa”.
“Our country’s strong capital markets, vibrant economic policies, stable political climate, a competitive private sector, proud democracy and a robust economic outlook, put us in the ultimate position to enhance effective partnerships between public and private sectors for employment creation.”
Following President Ramaphosa’s State of the Nation address, Economic Development Minister Ebrahim Patel defined the four key areas which are addressed and inspired by PPPs; transfer of skills, exposure to work, job creation and entrepreneurial activity.
In 2015, the World Bank commissioned a benchmarking study ‘The 2015 Infrascope’ carried out by the Economist Intelligence Unit that evaluated the capacity of African countries to implement sustainable and efficient PPPs. South Africa scored highest overall in all. Factors favouring South Africa, versus its peers on the African continent, is that it has PPP-specific laws and policies, sufficient financial market depth to fully enable PPP financing and National Treasury as an established central unit coordinating and approving PPPs.
The unemployment rate was reported to have jumped 0.5% to 27.2% in the second quarter of 2018, which equates to 6.1 million unemployed South Africans who are looking for work. The jobless rate had remained unchanged at 26.7% in the first three months of the year and the end of 2017.