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IOL News
15-05-2025
- Business
- IOL News
Government departments instructed to prioritise job creation as calls grow for major intervention
South Africa's unemployment rate has risen to 32.9%. Image: File Government departments reporting to the Select Committee on Economic Development and Trade have been instructed to prioritise job creation as a matter of urgency. This followed the announcement by Statistics South Africa on Thursday that the country's unemployment rate grew to 32.9% during the first quarter of 2025, from 31.9% in the previous quarter. This means 8.2 million people are now classified as unemployed in South Africa. Select Committee Chairperson Sonja Boshoff called on the relevant government departments to prioritise initiatives aimed at addressing this crisis. 'The foremost priority of this committee is that every portfolio under our oversight decisively focuses on job creation. This aligns with the core objectives of the Government of National Unity (GNU), and we will continue to insist on this across all engagements,' Boshoff said. She said the slow pace in reducing red tape, which continues to hamper economic development and government effectiveness, was a huge point of concern. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'Reducing bureaucratic hurdles must become a top priority. Continued delays only frustrate our efforts to build an inclusive and productive economy. Where implementation is possible, we must act swiftly to support the objectives of the GNU,' Boshoff added. Economists and other experts have also called for decisive action on the part of government in reducing the unemployment rate. Volker von Widdern, Risk Principal at Riskonet Africa, has called for a national risk mitigation intervention in order to prevent future risks to economic stability and social cohesion. 'South Africa's rising unemployment rate is more than a labour market issue, it is a strategic risk event unfolding in plain sight,' Von Widdern said. He said the time for half-measures and static policy was over. 'In economic terms, standing still means going backwards for employment,' he said. 'When growth stalls, businesses either optimise through efficiency and automation, or shut their doors entirely. In both cases, jobs are lost and opportunity for employment contracts,' Von Widdern added. 'If we continue to tolerate national budgets and economic policies that deliver subpar growth, we are compounding a long-term national threat.' The current youth unemployment rate of 46 percent is not just a social challenge, but an embedded economic risk. With slow economic growth, a growing population cannot be absorbed into the labour market, leading to a gradual growth in unemployment figures. 'What makes the current situation more perilous is that South Africa has normalised economic underperformance. Instead of pushing for high-impact investment and industrialisation, state spending is being crowded out by social relief programmes and public sector employment,' Von Widdern said. 'This might delay short-term social instability, but it accelerates long-term economic fragility. Fiscal space is shrinking, investor sentiment is eroding, and the spectre of forced investments in prescribed assets and inflation-driven instability looms ever closer.' The risk manager said there were a number of possible interventions, from third-party managed public-private partnerships to incentives linked to factory development and skills localisation. 'We need a 'Marshall Plan' for investment. We need to use Special Economic Zones not just as geographical labels, but as engines of new industrial capacity, reduced red tape, and labour flexibility. And we need to treat employment not as a by-product of growth, but as a targeted outcome backed by risk-mitigated strategy,' Von Widdern concluded. Get your news on the go, click here to join the IOL News WhatsApp channel IOL
IOL News
25-04-2025
- Politics
- IOL News
FPB under fire for online content regulation as Sapo BRPs evade accountability
The day's proceedings took a dramatic turn when Sapo's BRPs failed to appear despite being summoned. IN a heated session before the NCOP Economic Development & Trade Committee, the Film and Publication Board (FPB) faced intense questioning over its capacity to regulate harmful online content, while the SA Post Office's (Sapo) business rescue practitioners (BRPs) dodged accountability altogether, leaving legislators frustrated. The FPB, mandated by the Film and Publications Act, is tasked with protecting the public from harmful digital content such as child sexual abuse material (CSAM), hate speech, cyberbullying, and deepfakes. Despite these responsibilities, the organisation admitted to grappling with significant challenges, including limited legislative powers, insufficient funding, and its inability to access illegal spaces like the dark web. Committee chairperson Sonja Boshoff from the DA did not mince words, criticising delays in legislation that have left the FPB without full regulatory authority. 'We are still waiting for legislative measures that would give the FPB the tools it needs,' she said, pointing out that global platforms like WhatsApp, Facebook, and TikTok did not align with South African standards. She questioned why binding agreements or memoranda of understanding (MoUs) had not been established to ensure compliance. Adding fuel to the fire, Boshoff condemned the government's decision to expand the FPB's mandate without increasing its budget. 'Why increase responsibilities without adjusting the budget?' she asked. The FPB operates on a self-generated revenue model covering about 50% of its expenses, but it was unclear how this would sustain broader enforcement efforts. One of the most contentious issues raised during the meeting was whether political content — such as EFF leader Julius Malema's controversial song 'Kill the Boer' — fell under the FPB's jurisdiction. The DA's Nicolaas Pienaar posed this question directly, highlighting concerns that definitions of harmful content could be politicised. Deputy Minister Mondli Gungubele deflected responsibility, saying: 'The courts have already ruled on this matter.' However, Advocate Makhosazana Lindhorst clarified that the FPB could only investigate online content following a formal complaint, implying that Malema's song did not fall within their purview. Deepfakes emerged as another critical concern. Pienaar pressed the FPB on whether they monitor deepfakes, noting that there seemed to be inadequate attention given to this growing threat. While chief executive Ephraim Tlhako acknowledged the difficulty in distinguishing real from fake content, he stressed the importance of educating users to identify such manipulations. Yet, no concrete strategy was presented for actively monitoring or regulating deepfake proliferation. Resource constraints loomed large throughout the discussion. Between April and December 2024, the FPB handled 18 CSAM cases involving nearly 178 411 files, confirming 7 461 as CSAM. In 2025 alone, two additional cases with more than 40 000 images were ongoing. Despite these alarming figures, questions remained about the efficacy of countermeasures. 'What strategies are in place to prevent the distribution of this content? How do you evaluate your impact?' Boshoff demanded. These queries went largely unanswered. Meanwhile, calls for outsourcing regulation to more advanced countries were firmly rejected by Director-General Nonkqubela Jordan-Dyani, who argued instead for building local capacity. 'We should capacitate our people so they can adequately respond,' she said. This stance aligned with the Department's push for an audiovisual policy set to regulate platform providers later this year. However, the day's proceedings took a dramatic turn when Sapo's BRPs failed to appear despite being summoned. Their absence drew sharp criticism from the committee. Having requested — and been denied — a second postponement, the BRPs sent representatives instead, a move deemed unacceptable by legislators. The ANC's Solomon Mabilo voiced his frustration, saying: 'It's time we subpoena Sapo.' The FF+'s Hendrik van den Berg echoed this sentiment, dismissing engagement with substitutes as futile, especially given Sapo's request for an additional R2.5 billion in funding. 'Their representatives cannot provide meaningful input,' he said. Boshoff expressed her disappointment, vowing to explore legal avenues to compel attendance. 'They've had four months to prepare,' she said, accusing the BRPs of shirking their responsibilities. Gungubele supported the committee's resolve, affirming his respect for their decision. As the meeting adjourned, it became clear that both the FPB and Sapo face mounting pressure to demonstrate accountability and effectiveness. For the FPB, the challenge lies in balancing freedom of expression with public protection amid resource and legislative limitations. For Sapo, failure to engage meaningfully may lead to unprecedented legal action. One thing is certain: neither organisation can afford further missteps if they hope to regain the trust of Parliament and the public.
