Francois Rodgers, KwaZulu-Natal's Finance MEC, expresses optimism about the province's economic recovery, highlighting key initiatives aimed at job creation and investment.
Image: Sipho Jack
KwaZulu-Natal's Finance MEC, Francois Rodgers, expressed optimism about the province's economic recovery, stating that it has "turned the corner."
While acknowledging that THE growth might be modest, he emphasised that the trajectory was one of progress rather than decline.
Speaking on the sidelines of the province’s State of the Address last week, Rodgers welcomed ongoing initiatives from the Government of Provincial Unity (GPU) aimed at stimulating economic growth.
These efforts, he noted, focused heavily on investment in the oceans economy, infrastructure development, and attracting influential business leaders.
“I'm delighted to see the premier outline that we've turned the corner economically.
If you listen to what the National Minister of Finance said a few days ago and correlate that with the nominal growth we're now witnessing, it is imperative,” said Rodgers.
He was referring to minister Enoch Godongwana delivering his budget Speech last week, where he mentioned that South Africa’s public finances had hit a turning point.
Rodgers highlighted that there has been no regression in the economy and that the province was moving forward, albeit at a marginal rate.
Rodgers articulated a vision for growth that hinges on several key sectors.
He pointed specifically to strategies for bolstering the oceans economy, committed infrastructure upgrades, and engaging captains of industry, which he believes are critical for providing the necessary economic uplift.
The MEC further asserted that if the GPU maintains its current course and continues its existing policies, significant inroads can be made in tackling the province's persistent unemployment numbers.
“We can certainly start dealing with those critical unemployment numbers,” he declared, implying that sustained economic policy implementation could lead to substantial job creation.
As KwaZulu-Natal navigates the complexities of its economic recovery, the government's focus on strategic investments and growth initiatives could be pivotal in shaping a brighter future for the province's workforce.
Recent statistics for quarterly labour show that KZN has shed 41,000 positions, making it the only province to surpass Gauteng, which lost 54,000 positions.
These are not abstract numbers; they represent families without income, communities without anchors, and a generation of young people staring into an abyss of exclusion.
The expanded unemployment rate in KZN now stands at a staggering 47.1%, meaning nearly half of the province's potential workforce is effectively idle.
The national figures show modest gains in community and social services; however, the core sectors upon which KZN's economy depends manufacturing and agriculture continue to haemorrhage jobs.
In delivering his State of the Province Address, Premier Thami Ntuli alluded to the fact that an estimated R168 billion is required to create the additional 461,000 jobs, emphasising the need for coordinated public-private investment and district-focused industrial development strategies.
“The GDP growth rate of 5% or higher is required to significantly reduce the unemployment rate.
This leads to employment elasticity of growth, which is relatively low; a 1% increase in GDP would lead to only a 0.5% or lower increase in employment.
With KwaZulu-Natal's growth peaking at 2.1%, the economy would likely absorb even the new entrants into the labour market, let alone clear the backlog of 461,000 people needed to drop the unemployment rate to 20%,” Ntuli said.
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