Stimulus Package to Create Jobs, Boost SA Economy

Transport Minister Blade Nzimande has announced a R3.5 billion stimulus and recovery plan with measures that will ensure that government gives priority to the areas of economic activity that will have the greatest impact on youth, women and small businesses.

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“The stimulus and recovery plan consists of a range of measures, both financial and non-financial, that will be implemented immediately to firstly ignite economic activity, secondly restore investor confidence, thirdly prevent further job losses and create new jobs, and fourthly to address some urgent challenges that affect the conditions faced by vulnerable groups among our people,” Nzimande said.

He said the R3.5 billion budget for the stimulus package will unlock R13.1-billion investment in critical and strategic road infrastructure.

The Minister was on Tuesday, addressing a media briefing on the South African National Roads Agency Limited (Sanral) announcement on key infrastructure projects in response to the President’s Stimulus Package projects.


The Minister informed the media on projects that are shovel ready – those where the department is able to move from the design to construction phases.

“Other measures we are immediately expected to implement as the Department of Transport include expanding procurement from small business and cooperatives, with a particular emphasis on township and rural economies, women and youth,” the Minister said.

N2 Wild Coast Road projects

The Minister highlighted three shovel-ready stimulus projects on the N2 Wild Coast Road that are being implemented which will create about 1000 jobs.

“On all these projects – with a combined envisaged value of almost R3-billion, we will spend more than R930-million on small and medium enterprises and emerging contractors, many of them women and the youth,” he said.

In KwaZulu-Natal, the planning of upgrades to the N3 between Durban and Pietermaritzburg is at an advanced stage and construction is envisaged to commence in mid-2020.

Mpumalanga projects

Projects that are shovel-ready in Mpumalanga include the Thembisile Hani Local Municipality, where there will be the construction of the Tweefontein and Kwaggafontein access roads.

These roads have a combined budget of more than R200-million and will create some 600 job opportunities.

The Minister said there are at least seven shovel-ready projects which are crucial to the success of South Africa’s Strategic Infrastructure Project – SIP 2 – designed to unlock the capacity on the country’s most important freight corridor.

Sanral CEO Skhumbuzo Macozoma said all the projects that were mentioned will benefit from the initial R3.5 billion budget for the stimulus package.

He said temporary jobs will be created during the implementation of projects and that in total about 20 000 jobs will be created for the stimulus package over a three year period.

“On average Sanral with its entire budget generates an equivalent of 15 000 jobs per annum which will include this tally, so there’s a specific target of 20 000 for the stimulus package projects but the entire budget per annum, we will do about 15 000 jobs,” Macozoma said.

He said these are jobs intended to build and create skills in communities for people that benefit from the training to be able to move on to other projects and get continuity of work. The projects planned will provide between 6 – 8 years of guaranteed work for those employed.

For more details about the specific projects, read the full article here:

Source: SAnews.gov.za