S. Africa's black majority remains largely outside of mainstream economy: Zuma

After two decades since democracy, the black majority in South Africa still remains largely outside of the mainstream economy, President Jacob Zuma said on Tuesday.

"Social justice cannot be achieved if we allow the status quo to persist," Zuma said at a meeting with business and labour leaders in Cape Town before delivering his State of the Nation Address (SONA) in Parliament later this week. Zuma is expected to stress economic transformation in his SONA to ensure that economic benefits be shared.

"A most important challenge we need to confront head on this year is the scale of inequality and exclusion in this country. It needs urgent action," Zuma said.

Economic inclusion since the end of apartheid in 1994 demonstrated that South Africa can grow the size of the economy, Zuma said.

"We have though, failed to ensure that the growth is shared. As we begin a new phase of economic recovery we have to make sure we take everyone along. We have to rework and sharpen our transformation model and more importantly demonstrate commitment and empathy," the president said.

South Africans, he said, should never rest until the vision for a better life for all is realized.

The meeting took place under improved conditions economically. Following a period of low economic growth in the last few years, prospects have improved for the years ahead.

It is expected that economic growth in South Africa will be 1.3 percent in 2017 following an estimated 0.5 percent in 2016.

Improved commodity prices, and stronger global growth should encourage both investment and employment, and provide necessary support for exports, according to Zuma.

Agriculture is expected to recover following improved weather conditions, while tourism and the manufacturing sector should be supported by the weaker rand and a recovery in economic activity in the region, said Zuma.

"Despite the improved outlook, we have to acknowledge that we are not growing fast enough to significantly reduce our triple challenges of poverty, inequality and unemployment," he said.

Unemployment in the country currently stands at 27.1 percent, the highest rate since June 2004. The youth unemployment stands at 44 percent for 18 to 29 year olds.

In South Africa as in the rest of the world, the largest employers of unskilled workers are shrinking in importance. This puts more workers in the job market, being not only unemployed but also largely difficult to employ due to lack of skills.

Low economic growth and pressure on revenue suggest that the public sector can no longer be the main engine of jobs growth, Zuma said.

"We used to rely on government to absorb the unemployed. The public service is also facing pressure," he said.

Zuma stressed the importance of promoting cooperation among business, labour and the government to move South Africa forward.

"I am confident that working together as we are doing, we can achieve more in developing our economy and making it more attractive for foreign and domestic investment," he said. Endit