jobs that will help change the face of sa - times live

7/31/2019 Jobs That Will Help Change the Face of SA - Times LIVE

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Transnet will train and employ thousands of people to meet its new strategic

targets, writes Brian Molefe

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THE Sunday Times's "Each One Hire One" campaign underscores the most profound challenge and pressing

need facing our country: creatingjobs and putting as many South Africans to work as possible.

Ifthe economy is to achieve the growth rates needed to create the millions ofjobs that will help reduce

unemployment, poverty and inequality, private sector businesses have a critical role to play.

However, while the private sector plays a central role in economic growth and job creation, there has to be a

balance between the role ofthe public and private sectors. State-owned companies (SOCs) have an

important role to play in developing vital economic infrastructure, managing state assets, and driving the

transformation ofcustomers and suppliers.

South Africa's economy needs to create jobs, and while businesses ultimately are the creators ofjobs, most

ofthem are focused almost solely on their survival or on ever-increasing returns to demanding shareholders.

In an aggressively competitive world, the result is often that profitability and job creation can become

increasingly mutually exclusive. State-owned companies have the intent and purpose to function somewhat

differently.

At the fourth Brics (Brazil, Russia, India, China and South Africa) summit in Delhi a few weeks ago - which I

had the privilege to attend - it was clear that the old world order, with its attendant entrenchment ofprivileges

established 60-odd years ago, is no longer sustainable. One ofthe major reasons is, ofcourse, the rejection

ofan extremist view ofa market economy.

As a corollary to this, the Brics countries, which are, after all, the strongest ofthe emerging market countries

and are therefore themselves developmental states, have been embracing SOCs with enthusiasm - to varying

degrees ofsuccess.

Most ofSouth Africa's SOCs are in capital-intensive network industries, where few private sector companies

are willing to participate because the barriers to entry are high. SOCs are better suited for these sectors

because they are able to take the long-term view necessary for the sustainable investment in the infrastructure

required for their respective sectors.

Investing in economic infrastructure benefits all citizens ofa country because it plays a profound role in

productivity and promoting the competitiveness oflocal industry. The productivity ofour economy ensures

not just economic growth and sustainable job creation but creates a platform for wage growth, a key aspect

ofeconomic growth.

While it is important that SOCs should be concerned about efficiency ofcapital and preferably be self-

funding, their ultimate objective must be to provide a public return on capital.

That return must be measured in more ways than just profit.

It should be measured in social and economic factors. SOCs are the most genuinely publicly owned

companies. All South Africans are shareholders in SOCs - and all South Africans should enjoy a dividend of

some kind from these entities. I believe that dividend must be measured as a socioeconomic return with two

underpinnings: helping the economy to be more competitive, and creating the platform for robust and

sustainable job creation. In achieving a more competitive economy, we increase the scope for other domestic

enterprises to be globally competitive, and hopefully to create jobs.

We need a pragmatic balance where SOCs lead investment in terms ofinfrastructure. In the case ofnetwork

industries - because ofthe natural monopolies inherent in those sectors - the state must also operate and

regulate them, with the intent ofbuilding the overall competitiveness ofa domestic industry.


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In his state ofthe nation speech this year, President Jacob Zuma announced core aspects ofTransnet's

market demand strategy , our seven-year business plan that will be at the centre ofSouth Africa's significant

investment in economic infrastructure. The nature and extent ofour investment will boost South Africa's

mining and beneficiation, local manufacturing, broad-based black economic empowerment, and small and

medium-sized businesses. The strategy will create a potential 588000 economy-wide job opportunities at its

peak.

We further expect the strategy to reduce the cost ofdoing business in South Africa to the value of0.5% of

gross domestic product. This will go some way towards making South African businesses more internationally

competitive and, it is to be hoped, will lead to additional job cr eation. It is not just job opportunities that will

be created.

The strategy has profound implications for Transnet as an employer. Delivering on the strategy requires that

we increase capacity significantly even as we become a much more customer-focused company. To deliver

on the targets ofthe strategy, Transnet, which already employs 57000 people, will need to grow head count

25% by 2018/19. This will make Transnet one ofthe biggest employers in South Africa.

As an organisation, we face a severe challenge ofinsufficient skilled resources. Transnet will invest heavily in

the recruitment, development, deployment and retention ofoperational, technical and managerial skills. We

recognise that Transnet will need to compete for skilled technical personnel who are in short supply and high

demand. We recognise also that we have a commitment to build skills and capacity. It is therefore our

intention as an SOC to contribute to skills development and training through Transnet's seven training schools

focused on technical, operational, security and leadership training.

At Transnet we do not believe that capacity and capability and transformation are necessarily exclusive. Even

as we build the capacity necessary to deliver on the market demand strategy, Transnet will intensify its

transformation programme to try to ensure that our workforce more closely reflects the national economically

active population (EAP) benchmarks as provided by Stats SA. Currently, black employees represent 77.9%

as compared to the EAP average of87%.

However, the biggest challenge we face is in gender work parity. There are still a disproportionately high

number ofmale employees - 79% against 21.7% female employees and yet the national averages ofthe EAP

are 53% males and 47% females. We see these challenges as an opportunity to make our mark and deliver a

socioeconomic dividend. I believe that the business ofstate-owned enterprises is the business ofeconomic

development and human productivity. With the market demand strategy, Transnet embraces that challenge.

Molefe is group chiefexecutive ofTransnet

jobs that will help change the face of sa - times live

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