STATE OF THE NATION ADDRESS 2011
SELECT COMMITTEE ON LABOUR AND PUBLIC ENTERPRISES
16 February 2011
PUBLIC ENTERPRISES
2011 STATE OF THE NATION ADDRESS
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Developmental State with the Goal being: “We want to have a country where millions
more South Africans have decent employment opportunities, which has a modern
infrastructure and vibrant economy and where the quality of life is high”.
2009 the focus was on 5 priorities: education, health, rural development, agrarian reform,
fight against crime and creating descent work
2011 is the year of job creation: Each minister is required to announce job targets in their
budget speeches
Jobs to be created in 6 areas: infrastructure development, agriculture, mining/
beneficiation, manufacturing, green economy and tourism
Communication: convert television and radio signals from analogue to digital. Jobs to be
created in manufacturing, packaging, distribution and installation.
Infrastructure development linked to service delivery and access to basic services.
Projects will include water electricity and housing.
Energy security linked to economic development and job creation. Eskom has invested
R75 billion on new stations at Medupi, Kusile and Ingula and the return of service of other
stations.
Saving of energy so as to avoid load shedding. Eskom will also procure power from
Renewable Energy Power Producers.
Labour (?) Policy reforms, labour brokers, policy framework for the provision of public
employment services. Database of job seekers and job opportunities
State owned enterprises can play a key role in skills development. Denel, Eskom, SAA
and Transnet have supported the training of more than 6000 learners in technical and
engineering related scarce skills.
Support NEPAD and the infrastructure programme – North-South infrastructure
development corridor
Department of Performance Monitoring and Evaluation monitor the work of government
departments
NEW GROWTH PATH
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Infrastructure development is one of the 5 job drivers. 250 000 jobs to be created through
infrastructure development in energy, transport, water, communication infrastructure and
housing through to 2015.
Construction of new infrastructure, operation of facilities, expansion, maintenance and
manufacturing of components.
Research Unit | Ekhsaan Jawoodeen
Author Contact Details: (021) 403 8176
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Rural areas as a target – energy and logistics infrastructure will improve competitiveness
and change the spatial patterns of apartheid.
Second Integrated Resource Plan for Electricity (IRP2) – doubling of electricity capacity
by 2030. 33% of new generation coming from renewable sources and 25% from nuclear
power.
Expansion of rail transport more railway tracks and rolling stock – commuters and freight
Water and communications infrastructure – basic service and reduce cost
High levels of public investment in infrastructure by both government and public sector
corporations.
Strengthen procurement, promote labour intensive production methods and ensure that
infrastructure provision is linked to improving competitiveness and sustainable
development.
MEDIA BRIEFING BY CHAIRPERSON OF INFRASTRUCTURE DEVELOPMENT
CLUSTER: MINISTER OF TRANSPORT. MR SIBUSISO NDEBELE. 15 FEBRUARY 2011.
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Focus on insufficient infrastructure network, competitiveness, infrastructure maintenance
and operational efficiencies.
Infrastructure budget has increased from R874 million to R846 million.
Electricity
 R75 Billion on capital investment including 3 000 km of transmission lines.
 New power plant investment till 2017
 Medium Term Power Purchase programme from Independent Power producers
 Return to service of some power plants
 Increase coal stock piles at each power station
 Energy efficiency and energy saving
 Funding: R350 billion guarantee framework and a R60 billion loan. US $350 million loan
application to the World Bank and the African Development Bank to finance a Solar
Power plant and a Wind Power Plant.
 Employment: 5000 young people, apprenticeships to 10000 and 100 000 people will be
employed through the build programme.
Road Maintenance
 Shamba Sonke – Walking Together programme – maintenance of secondary road
infrastructure using labour intensive methods – expenditure of R22,3 billion over 3 years
with 70 000 jobs being created. Maintenance, potholes, engineers, streamline
procurement, new pothole technologies, funding models, public-private partnerships.
Rail
 Gautrain: Sandton to OR Tambo Airport. In June 2011 train route will also include
Johannesburg to Tshwane.
 Rea Vaya: commuter passenger services. Busses and rail – new stock – aging
 Long Distance passenger and Freight services – new stock aging.
Research Unit | Budget Analysis. Communications 2009
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