Minister of Employment and Labour Nomakhosazana Meth has unveiled bold plans in her quest to create jobs for South Africans following her launch of the R650 million Labour Activation Programme (#LAP) in Cape Town on Thursday.
Meth, alongside Deputy Minister Jomo Sibiya and supported by senior management in the department, signed employment creation contracts to the value of about R650 million to spur employment opportunities.
The contracts, inked with 12 labour partners, are set to create more than 17,330 jobs in vital sectors including retail, hospitality, agriculture, tourism, transportation, and information and communication technology (ICT).
Among the partners are notable organisations such as Caliber Solutions, Elgin Community College, and Furn Tech, which display a commitment to fostering socio-economic change.
“The Labour Activation Programme has evolved dramatically since its inception. Initially a small initiative designed to support contributors to the Unemployment Insurance Fund (UIF), it has transformed into a formidable engine for socio-economic development,” Meth said.
“Our national goal is to create over 350,000 jobs across all nine provinces, and I am proud to announce that we have formalised 29 partnership agreements benefiting over 107,764 individuals thus far.”
She highlighted that the finalised agreement in the Western Cape involves a total investment of R651.5 million, reflecting the government’s dedication to addressing the pressing issue of unemployment.
“Each of these partners is a pillar of progress, bringing unique expertise and innovative approaches that are essential for uplifting communities,” Meth emphasised. “This handover signifies the extraordinary results we can achieve through collaborative efforts and a relentless spirit, especially in difficult times.”
The minister stressed the importance of ongoing oversight and cooperation as the initiative moves forward and committed herself to a collaborative framework to assess progress, troubleshoot challenges, and ensure transparency and accountability in the rollout of jobs created under the programme.
The minister’s initiative comes just months after President Cyril Ramaphosa signed the proclamation notice giving effect to the start date of implementation of the Employment Equity (EE) Amendment Act, No. 4 of 2022, which came into effect on January 1, 2025.
In terms of the notice gazetted on November 28, 2024, small businesses that employ less than 50 employees are no longer bound to comply with Chapter III of the Employment Equity Act, 1998 (EEA) - for example in relation to the submission of their EE reports starting from the 2025 EE Reporting period.