New Growth Path: the Framework.

This New Growth Path framework is a nationwide multisectoral document aiming to outline strategies for enhancing employment and improving livelihoods in South Africa. There is a growing consensus that creating decent work, reducing inequality, and defeating poverty in South Africa requires a new growth path centered on restructuring the economy to enhance labor absorption, growth rate, and composition. Achieving this transformation demands hard choices and collective determination. The Government is committed to leading this effort by (i) identifying areas for large-scale employment creation influenced by changing conditions in South Africa and globally; (ii) developing policies to facilitate employment in these areas through (a) enhancing social equity and competitiveness, (b) mobilizing domestic investment for sustainable employment activities, and (c) engaging in strong social dialogue to align stakeholders on promoting employment-generating growth.
The main fields of intervention for economic growth mentioned in the document (i) Employment Creation: Focus on creating decent work, reducing inequality, and defeating poverty through restructuring the economy; (ii) Infrastructure Investment: Substantial public investment in infrastructure to create jobs and improve efficiency; (iii) Labour-Absorbing Activities: Targeting sectors like agriculture, mining, manufacturing, and services for job creation; (iv) Green and Knowledge Economies: Leveraging new opportunities in green technologies and knowledge-intensive sectors. Basic measures to achieve the goal are (i) Public Investment: Substantial investment in infrastructure to create jobs directly and indirectly, enhancing overall economic efficiency; (ii) Policy Package: Developing policies to enhance social equity, mobilize domestic investment, and encourage growth in employment-creating activities; (iii) Social Dialogue: Engaging all stakeholders in promoting growth and addressing economic inefficiencies and constraints. The key sectors to support employment creation outlined are (i) infrastructure; (ii) agricultural value chain; (iii) mining value chain; (iv) green economy; (v) manufacturing sectors; (vi) tourism and certain high-level services.
The main measures for rural areas and the agricultural sector outlined in the document are (i) support for smallholder schemes: Restructure land reform to support smallholder schemes with comprehensive support around infrastructure, marketing, finance, and extension services; (ii) improving livelihoods: Enhance rural employment and livelihoods through public infrastructure, housing, and support for small-scale agriculture, including community food gardens; (iii) market and financial institutions: Support market and financial institutions, especially coopertives, to enable small producers to enter formal value chains and take advantage of economies of scale; (iv) spatial development: Develop a spatial perspective to align budget, infrastructure, and economic development with regional opportunities and needs.