Cape Town - President Jacob Zuma called on business and labour to work together with the government to make the country's economy attractive to foreign and domestic investment.
"It is critical that we work together as business, labour and government. That is what we need when we talk of unity in action as we move South Africa forward," Zuma said.
He was addressing the captains of commerce and industry at a pre-State of the Nation Address business investor luncheon at Grand West Casino in Cape Town.
Photo: Ian Landsberg
The luncheon was aimed to serve as a platform to strengthen cooperation between government, organised labour and business to promote inclusive growth, radical socio-economic transformation and job creation.
In attendance were several minsters, including Pravin Gordhan, as well as prominent business leaders.
Zuma will deliver his annual SONA during the National Assembly sitting on Thursday.
He told his audience that the gathering was convened amid improved conditions following the low economic growth last year.
Photo: Ian Landsberg
"Prospects have improved for the year ahead," he said, adding that 1.3% economic growth was expected this year as opposed to the estimated 0.5% economic growth.
"We have to acknowledge that we are not growing fast enough to significantly reduce the tripple challenges of unemployment, povery and inequality."
Zuma also said the unemployment rate stood at 27% with the youth unemployment standing at 44% among the those aged between 18 and 29 years.
He said the employment of unskilled workers was also shrinking and made it difficult for more workers to be employed.
"Low economic growth and pressure on revenue suggest the public sector can no longer be the main engine of job creation," Zuma said.
"We used to rely on government to absorb the unemployed. The public sector is also facing the pressure."
Photo: Ian Landsberg
However, Zuma said the important challenge was to reduce the challenge of the scale of inequality and economic exclusion.
He also said the black majority were largely outside the mainstream economy.
"Social justice cant be achieved if we allow the status quo to persist," Zuma said.
He stated that the country had failed sice 1994 to ensure that economic growth was shared.
Photo: Ian Landsberg
"As we begin the new phase of economic recovery, we have to make sure we take everyone along," he said.
"We should never rest until the vision of a better life for all is realised as business, labour, community sector and government."
Zuma announced that the national one-stop trade centre would be launched in preotir in March and with others in three provinces for coordination of investment,among other things.