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The South African government wants halve poverty and unemployment by 2014 through its Accelerated and Shared Growth Initiative of South Africa (Asgisa)

The public sector of South Africa and state-owned enterprises, working in some instances through public-private partnerships, will make large investments worth a massive R372 billion over the next 3 years, said the country’s president, Thabo Mbeki. The spending programme will cover the construction and upgrading of dams, power stations, road, railways, and ports. Mbeki spoke during his state of the nation address in Cape Town last Friday. The investment boost would meet the demand for electricity; provide efficient and competitive logistic infrastructure;

Expand and modernise the telecommunications infrastructure; and, satisfy the demand for water", he added.

In addition, underdeveloped urban and rural areas will also benefit from the programme through the Municipal Infrastructure Grant and expanded public works programme improve service delivery for the informal economic sector, called "Second Economy", where houses, schools and clinics will be built, as well as business premises, business support centres, sports facilities and multi-purpose government service centres, police stations and courts.

Mbeki’s address virtually served as an election campaign speech with municipal elections around the corner. They are set for 1 March in all 9 provinces.

On the social side, Mbeki promised to dispatch 5,000 social workers countrywide to attend to vulnerable children. Seven million children now receive a child support grant and a total of 10 million citizens receive social grants. South Africa has a population of 45 million.