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Eskom’s Mabuza says SA facing ‘unemployment time bomb’

‘Our overriding objective should be to maximise the impact of policy interventions through labour-absorbing growth.’

South Africa needs to increase state support in education as well as private sector involvement to avoid devastating job losses, according to Eskom chairman Jabu Mabuza.

“Our overriding objective should be to maximise the impact of policy interventions through labour-absorbing growth,” Mabuza, who is also chairman of Business Leadership South Africa, which represents big corporates, wrote in an opinion piece in the Johannesburg-based Financial Mail. “Everyone must play a part in overcoming our huge unemployment time bomb.”

Unemployment in Africa’s most-industrialised nation climbed to a near-15 year high of 27.6% in the first quarter. Eskom is seen as one of the country’s biggest economic risks, with almost $35 billion in debt dragging on the state company’s ability to operate. The World Bank estimates it has 66% too many employees.

The government also needs to focus on ensuring a clear fiscal strategy to help keep its credit rating intact, Mabuza said.

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Business in SA is not interested in taking on
more employees who are unproductive , lazy and militant , quite the opposite .
Short term solution : can AA / Bbeee .
Long term solution : institute incentives for useless , uneducated to be sterilized / have less children and improve govt. schools .

It’s a crime against humanity for the uneducated & jobless poor to bring innocent souls into this dreadful world knowing full well they are unable to provide for these children. When are they going to be brainwashed about this? Just tell them that this is what their beloved leaders and the ruling party want and they will comply. As they did with voting.

Oh please- save us this sanctimonious claptrap. Stating the obvious again while he and Eskom and the corrupt ANC caused this problem and is the problem .

@LuluAlert – I would go so far as to say that it’s not only our corrupt revolutionary masters in the ANC, but all politicians, everywhere. Organized politics perpetuating the farce of democracy, policy and economy, causing more death, poverty, destruction and misery than organized religion ever did! Conforming to this system of purported participation that delivers nothing get you here! Gives only hope, no change. The only thing that might change is who holds the purse strings.

Agreed. Politicians have outlived their sell-by date. They need to be relegated to the scrap heap of history as happened to royalty and nobility after the industrial revolution. They add little, if any, value to any country. A solid constitution and a civil service run on a professional basis with well defined rules and objectives. Minimum oversight by councils of wise and trustworthy men and women. Referendums can be run using digital media for any changes to the constitution or similar ad hoc decisions. Unfortunately politicians have captured the world and control the levers of power. Nothing can change the status quo I fear.

The bottom line is that they don’t know that they don’t know . If it’s not private it does run properly.
The funny thing is that the ANC knows this but won’t let go of these useless monopolies because it’s about power and not economics .

The irony is that the ANC elite all use private hospitals and send their children to private schools . When it comes
down to it they have no faith in their own institutions.

Capital creates employment. Capital goes where it is wanted and produces the highest returns. Capital definitely does not want to be in this proto-communist kleptofest. Hence employment will only increase. So will crime and other aspects of social disorder. There is only one solution and that is to make SA an investor friendly destination. That will simply never happen whilst the disciples of Marx rule Azania

One of the first things Madiba should have identified and acted on in ’94 was the fact that population growth had already well overtaken Job supply, but then again votes are more important than a country’s wellbeing to the ANC!!!

A serious change of culture is required if SA is to have any hope of not becoming a typical African s..thole!!

As long as they keep calling themselves Comrades , western nations wont invest & who can blame them. Clueless Socialist Policies : The only way forward is down .

Mr.Mabuza is chairman of the biggest failure the country, and perhaps the World, have ever seen. Who is he to give an opinion?

The reason for his statement I suspect is to justify why Eskom will not reduce their workforce by one iota – in fact they will probably add a requirement to that effect if and when the semi privatisation materialises. The only reason they want the private sector to come in to partner them is to extract them from the hole they’ve dug themselves into and have someone to blame if things don’t go as they should.

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