- Tito Mboweni had a lot to say about job creation in his budget speech
- Some of his claims, however, cannot be supported by facts
- Additionally, there is some conflicting data about some of his proposals
In Tito Mboweni's budget speech, the Finance Minister promised sweeping policies to address the country's economic woes.
In particular, he made several claims about the extent to which several government policies had succeeded in creating jobs.
But how do Mboweni's claims compare with the reality?
One of Mboweni's major claims was that government's Employment Tax Incentive supported 1.1 million jobs. This initiative essentially guaranteed that companies which employed young people (aged 18 to 29) would pay less tax.
According to AfricaCheck, Mboweni's claim is correct. However, while the initiative supports these jobs, some economists have expressed doubt over whether the initiative really played a role in creating these jobs.
Additionally, Mboweni said the Jobs Fund has created 200 000 jobs. The Fund, established in 2011, claims to have generated over 225 000 jobs, but there is no evidence to corroborate these claims. So, for now, Mboweni's claim is unproven.
Finally, the Finance Minister said that funding to clothing and textile industries was supporting more than 35 000 jobs. This project funds new equipment to clothing and textile companies to keep up their productivity and competitiveness.
However, there is much conflicting data around it, with some claiming it has produced jobs and others saying that, by improving productivity, the initiatives have actually resulted in a nett job loss. As a result, AfricCheck considers this claim unproven.
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