South Africa Ploughs Billions Into Job Creation
Pretoria - The Department of Labour says it has helped contribute towards job creation through intense investment in the Public Investment Corporation (PIC) amounting to billions of rands.
Speaking at a meeting of managers of the department from around the country, Labour Minister Mildred Oliphant said the department -- through the Unemployment Insurance Fund (UIF) and Compensation Fund (CF) -- has invested billions in the PIC, helping the country meet its job creation targets.
“The UIF has invested 68 percent that is R35 billion out of its R52 billion in commercial social responsible investment portfolio, which includes central government, municipalities and parastatal bonds and money market instrument that infrastructure projects that create and sustain jobs.
“Similarly, the CF invested in excess of R27 billion as at the end of March 2011 in compensation fund reserves with the PIC,” said Oliphant.
These funds are in turn invested by the PIC through an investment agreement in commercial and social responsible projects carried out by Standard Bank, Eskom, Transnet and other parastatals involved in infrastructure projects that contribute to employment creation.
“The challenge is that the number of jobs created in these interventions is often reported by the loan recipient organisation instead of the main funder, the Department of Labour,” said Oliphant.